China Re held a corporate briefing today, stating that 99.5% of its personal epidemic prevention insurance has expired at the end of May this year.

(Photo by reporter Li Lianghui)

[Reporter Li Lianghui/Taipei Report] Epidemic prevention insurance has brought a catastrophe of claims settlement to the domestic property and casualty insurance industry. Will it drag the reinsurance company into the water?

Central Reinsurance (2851) clarified today (23) that the company stopped undertaking reinsurance of epidemic prevention policies in May last year, and 99.5% of personal epidemic prevention insurance has expired before the end of May this year. The subsequent development of the epidemic this year will not cause the company more losses.

China Re, the only professional reinsurance company in China, held a corporate briefing today. China Re made a loss of 494 million yuan in the second quarter due to the unreported indemnity reserve of 3.6 billion yuan for the epidemic prevention policy and vaccine insurance policy in the second quarter. The accumulated after-tax profit in the first half of the year was 139 million yuan, and the EPS was 0.23 yuan, a decrease of 89% compared with 2.09 yuan in the same period last year.

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China Re pointed out that in May last year, due to the severe epidemic situation, the level 3 alert was implemented, which triggered a wave of anti-epidemic insurance policies. It undertakes most of the personal epidemic prevention insurance business, so 99.5% of the company's personal epidemic prevention insurance business expires before the end of May this year.

China Re emphasized that the subsequent development of the epidemic will not cause further losses to the company.

However, this year's epidemic broke out again after March and April. China Reinsurance stated that for the business before the expiry at the end of May this year, it has successively received applications for reinsurance amortization from the signing company since July, and the audited part has been completed so far. About 1.3 billion yuan.

Analyzing the reinsurance market this year, China Reinsurance stated that in recent years, the extreme weather in the world has led to frequent occurrence of natural disasters and the extent of losses has continued to expand, all of which have affected the operating performance of major international reinsurers and prompted reinsurers to reassess pricing standards and standards. Configuration of insured energy.

China Reinsurance pointed out that the current general environment, especially the reinsurance pricing, is beneficial to reinsurers. Therefore, China Reinsurance held an extraordinary shareholders meeting in August to increase the rated capital from 6 billion to 10 billion yuan. Handle the cash capital increase and issue new shares, and it is expected to increase the capital by 210 million shares.

China Re's capital adequacy ratio was 391.3% in the first half of this year. It hopes to strengthen its capital level, maintain its underwriting capacity, and grasp reinsurance business opportunities, so as to consolidate its position in the domestic market and continue to develop its international business.

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