PICC Property and Casualty : PROPOSED ISSUE OF CAPITAL SUPPLEMENTARY BONDS

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(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 2328)

PROPOSED ISSUE OF CAPITAL SUPPLEMENTARY BONDS

This announcement is made pursuant to the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

The board of directors (the "Board") of PICC Property and Casualty Company Limited (the "Company") has approved the issue of a 10-year capital supplementary bonds in one or more tranche(s) in an aggregate amount of RMB15 billion by the Company within 12 months from the date of approval by the shareholders' general meeting. The Board will convene a shareholders' general meeting to submit the resolution to shareholders for obtaining approval of the issue of capital supplementary bonds and giving the Board authorisation to delegate the management of the Company to determine and implement a detailed plan for the issue of capital supplementary bonds after taking into account the market conditions and all other relevant factors.

Proceeds from the capital supplementary bonds will be used for supplementing the capital and raising the solvency margin of the Company. After conscientiously considering various proposals to meet the capital and solvency margin needs of the Company and taking into account the current interest rate environment, among others, the Board considers the issue of capital supplementary bonds as the most appropriate proposal. The Board believes that the issue of capital supplementary bonds will provide adequate capital for the Company's rapid business development and be beneficial to maintain the solvency margin of the Company at a relatively stable level and save interest expenses, etc.

The issue of capital supplementary bonds is subject to (i) the approval of shareholders at the Company's shareholders' general meeting; and (ii) the approvals of China Banking and Insurance Regulatory Commission and other relevant governing authorities. The notice of shareholders' general meeting and the circular in respect of the issue of capital supplementary bonds will be issued in due course.

By Order of the Board

PICC Property and Casualty Company Limited

Zou Zhihong

Secretary of the Board

Beijing, the PRC, 23 March 2021

As at the date of this announcement, the Chairman of the Board is Mr. Luo Xi (non-executive director), the Vice Chairman of the Board is Mr. Xie Yiqun (executive director), Mr. Li Tao is a non-executive director, Mr. Jiang Caishi is an executive director, and the independent non-executive directors are Mr. Lin Hanchuan, Mr. Lo Chung Hing, Mr. Ma Yusheng, Mr. Chu

Bende and Ms. Qu Xiaohui.