- China Pacific Insurance (601601.SS/2601.HK) has recorded a 60% increase in net profit in 2015 to RMB 17.7 billion, as reported by Sohu.
- The firm also posted a 12.5% increase in revenue to RMB 247 billion.
- China Pacific Insurance plans to pay a cash dividend of RMB 1.0 per share.
Why It Matters:
- Profit derived from investments is the major reason for the company’s high net profit growth rate. Total gross profit from investments increased 33% to RMB 55 billion, which is a five year high. After excluding fees and other costs, net investment profit reached RMB 39.8 billion.
- The company’s new business from life insurance increased 37% to RMB 12 billion. China Pacific Insurance also reduced the costs of its property and casualty insurance unit, and the unit recorded a profit.