In the first half of 2025, the comprehensive cost ratio of Taiping General Insurance was optimized to 95.5%, achieving a record high underwriting profit. Four core measures have been implemented to strengthen the foundation of profitability.

At the mid-year performance conference of CHINA TAIPING in 2025, Taiping Property & Casualty Insurance presented an impressive "mid-term report": the comprehensive cost ratio has been continuously below 97% since February, ultimately settling at 95.5%, an improvement of 1.5 percentage points compared to the same period last year; underwriting profit reached a historic high, insurance service income increased by 4.3% to 15.78 billion yuan, net profit increased by 87.6% to 630 million yuan, and multiple core operating indicators achieved significant improvement. From the overall industry perspective, the cost optimization of Taiping Property & Casualty Insurance is particularly remarkable. According to a research report by Soochow in May of this year, in the first quarter, the comprehensive cost ratios of PICC, Ping An, and CPIC Property Insurance were 94.5%, 96.6%, and 97.4% respectively. It also explicitly pointed out that the industry's overall comprehensive cost ratio in the first quarter of 2025 was 96.7%, the lowest in nearly five years for the same period. Referring to the first quarter data, Taiping Property & Casualty Insurance led the industry by 1.2 percentage points in terms of comprehensive cost ratio. According to the disclosed data for the same period, in the first half of 2025, Taiping Property & Casualty Insurance closely followed the industry leader, showing a strong momentum to catch up. Industry insiders pointed out, "It is worth noting that the cost improvement of Taiping Property & Casualty Insurance was achieved against the backdrop of the deepening reform in auto insurance and the increasing pressure of claims expenses for new energy vehicles, demonstrating its unquestionable countercyclical ability." The breakthrough in the performance of Taiping Property & Casualty Insurance in the first half of the year is not accidental, but is the result of meticulous cultivation and strategic implementation throughout the entire business chain. In response to the analysts' questions about the reasons for the improvement in the comprehensive cost ratio and the subsequent profit prospects raised by CMSC, Zhu Jie, Deputy General Manager of CHINA TAIPING and General Manager of Taiping Property & Casualty Insurance, deeply analyzed the underlying logic at the performance conference and clearly defined the development path for the second half of the year. Zhu Jie pointed out that guided by the high-quality development strategy of the group, oriented towards benefits, and supported by professionalism, the company has achieved significant improvement in operational quality and efficiency through four major initiatives. 1. Optimization of business quality: Upgrade of structure + risk prevention, continuous increase in the proportion of high-quality business In terms of business, Taiping Property & Casualty Insurance adheres to a "value-oriented" approach, strictly controlling risks from the entry point, while driving the business structure towards high-yield areas. On one hand, strengthening product management and pricing model optimization, enhancing screening of risk customers, and reducing underwriting risks at the source; on the other hand, focusing on the transformation and upgrade of loss-making products, expanding the contribution of profitable products, and steadily increasing the proportion of high-quality business. Data shows that the renewal rate of auto insurance in the first half of the year increased by 2.1 percentage points year-on-year, and customer stickiness further enhanced; the performance of the non-auto insurance sector was particularly outstanding. Among them, the premiums of personal lines business with good benefits increased by 9.5% year-on-year, agricultural insurance premiums reached 690 million yuan, a surge of 33.9% year-on-year, premiums for new energy vehicle insurance reached 1.66 billion yuan, an increase of 28% year-on-year, the overall proportion of non-auto insurance premiums increased to 38.9%, and the effect of restructuring the business structure was significant. 2. Upgrade of expense management: Comprehensive cost ratio decreased by 1.7 percentage points year-on-year through full-process cost reduction and precise investment In the background of strong supervision and rational competition in the industry, Taiping Property & Casualty Insurance integrates "reducing costs and improving efficiency" throughout the entire process of expense management. On one hand, it strengthens the professionalization of channels, reduces unnecessary market expenses, and improves the accuracy and effectiveness of expense investment; on the other hand, strict control over fixed expense budgets, establishment of benchmark management mechanism for comprehensive expenses ratio, and continuous optimization of costs. Ultimately, in the first half of the year, Taiping Property & Casualty Insurance's comprehensive expense ratio decreased by 1.7 percentage points year-on-year. The combination of "cost savings" on the cost side and "revenue generation" on the business side further thickened the profit margin. 3. Improvement in claims efficiency: Use of technology + swift action, claims ratio better than industry by 3.1 percentage points As a key point for profit in property insurance, Taiping Property & Casualty Insurance improves management efficiency through a dual drive of "technology + mechanism". On the risk prevention side, it strengthens risk reduction management, perfects catastrophe early warning, prevention and rescue systems, establishes a risk reduction information system, identifies high-risk customers in advance, and promotes rectification; on the claims execution side, it promotes full-subtype claims operations, group insurance operations, and integration of claims teams. It carries out a thorough "swift action" on claims, cracking down on fraud and squeezing out claims. Thanks to these measures, in the first half of the year, Taiping Property & Casualty Insurance's comprehensive claims ratio was 3.1 percentage points better than the industry average. Even in the face of multiple rounds of typhoons, heavy rains, and other meteorological disasters this year, the company, through early warning and emergency response, had estimated losses of only 130 million yuan as of August 25, which did not significantly impact overall profitability. 4. Solid process management: Focus on key projects + risk control, maintaining an A-level regulatory rating for six consecutive quarters To ensure the realization of profit targets, Taiping Property & Casualty Insurance details its operational management to "every link": promoting 48 key projects for annual underwriting profit, conducting "optimize a bit" all-staff actions, and facilitating collaborative improvement across various business lines; at the same time, it enhances the risk control system, strengthens risk control in key areas, and improves business risk control levels. A steady operating style has also gained regulatory recognition, with Taiping Property & Casualty Insurance maintaining an A-level comprehensive regulatory risk rating for six consecutive quarters, providing solid compliance safeguards for sustainable profitability. Outlook for the second half of the year: Anchoring "report and management integration" new opportunities, continuously consolidating underwriting profit advantages Regarding the second half of 2025, Zhu Jie stated that the industry will face a new environment with strengthened integration of auto insurance "report and management" and accelerated launch of non-auto insurance "report and management." This is not only a challenge but also an opportunity for Taiping Property & Casualty Insurance to deepen its advantages. The company will continue to optimize its business structure, deepen full-cost and full-process management, promote intensive and professional claims management for all types of insurance, solidify disaster prevention, reduction, and relief efforts, and maintain continuous underwriting profitability. "Taiping Property & Casualty Insurance will always be guided by benefits, supported by professionalism, and consolidate its profit advantage in the tide of industry standard development, contributing more to the high-quality development of the group."