People’s Insurance posts 14.1pc interim profit rise as premiums grow faster than costs and claims

The People’s Insurance Company (Group) of China, the parent of mainland China’s biggest non-life insurer parent of PICC Property & Casualty, posted a 14.1 per cent year-on-year rise in net profit to 8.82 billion yuan (US$1.3 billion) for the year’s first six months.

The profit was lower than the 11.06 billion yuan average estimate of two analysts polled by Bloomberg, and amounted to 52.7 per cent of the full year estimate of 16 analysts polled.

Revenue of the company, which also sells health and life insurance products, grew 4.6 per cent to 262.3 billion yuan, of which net earned premiums climbed 5.2 per cent to 240.2 billion yuan and investment income increased 9.6 per cent to 16.5 billion yuan.

Total policyholders’ benefits, claims and expenses rose 5 per cent to 251.6 billion yuan, it said in a filing to Hong Kong’s bourse on Friday.

Basic earnings per share grew 16.7 per cent to 0.21 yuan from 0.18 yuan.

The company’s shares have risen 18.3 per cent year to date, trailing the Hang Seng Index’s gain of 26.6 per cent.