China Pacific Insurance : OVERSEAS REGULATORY ANNOUNCEMENT - 2020 INTERIM RESULTS PRESENTATION

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

中國太平洋保險（集團）股份有限公司

CHINA PACIFIC INSURANCE (GROUP) CO., LTD.

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

(Stock Code: 02601)

Overseas Regulatory Announcement

This overseas regulatory announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The announcement is attached hereof for information purpose only.

By Order of the Board

China Pacific Insurance (Group) Co., Ltd.

KONG Qingwei

Chairman

Hong Kong, 24 August 2020

As at the date of this announcement, the Executive Directors of the Company are Mr. KONG Qingwei and Mr. FU Fan; the Non-executive Directors of the Company are Ms. LIANG Hong, Ms. LU Qiaoling, Mr. John Robert DACEY, Mr. HUANG Dinan, Mr. WANG Tayu, Mr. WU Junhao, Mr. ZHOU Donghui and Mr. CHEN Ran; and the Independent Non-executive Directors of the Company are Ms. LAM Tyng Yih, Elizabeth, Ms. LIU Xiaodan, Mr. WOO Ka Biu, Jackson, Mr. CHEN Jizhong, and Mr. JIANG Xuping.

• Note: The appointment qualifications of Ms. LIANG Hong, Ms. LU Qiaoling, Mr. John Robert DACEY, Mr. ZHOU Donghui, Mr. CHEN Ran, Ms. LIU Xiaodan and Mr. WOO Ka Biu, Jackson are subject to approval by China Banking and Insurance Regulatory Commission.

2020 Interim Results Announcement China Pacific Insurance (Group) Co., Ltd.

August 24, 2020

Disclaimer

• These materials are for information purposes only and do not constitute or form part of an offer or invitation to sell or issue or the solicitation of an offer or invitation to buy or subscribe for securities of China Pacific Insurance (Group) Co., Ltd. (the "Company") or any holding company or any of its subsidiaries in any jurisdiction. No part of these materials shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
• The information contained in these materials has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information and opinions contained in these materials are provided as of the date of the presentation, are subject to change without notice and will not be updated or otherwise revised to reflect any developments, which may occur after the date of the presentation. The Company nor any of its respective affiliates or any of its directors, officers, employees, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any information contained or presented in these materials or otherwise arising in connection with these materials.
• These materials contain statements that reflect the Company's current beliefs and expectations about the future as of the respective dates indicated herein. These forward-looking statements are based on a number of assumptions about the Company's operations and factors beyond the Company's control and are subject to significant risks and uncertainties, and, accordingly, actual results may differ materially from these forward- looking statements. You should not place undue reliance on any forward-looking information. The Company assumes no obligations to update or otherwise revise these forward-looking statements for new information, events or circumstances that occur subsequent to such dates.

Steady growth of business results and sustained increase in overall strength

(unit: RMB yuan)

Group Gross

Written Premium

216.597bn

+4.2%

Group Net Profit

14.239bn

-12.0%

Group Embedded

Value

430.420bn

+8.7%

Group Number

of Customers

140.65mn

+2.09mn

Group Assets under

Management

2,306.305bn

+12.9%

Group Comprehensive Solvency Margin Ratio

289% -6pt

Note: The group net profit is based on figures attributable to shareholders of the parent company.

3

Group OPAT RMB17.428bn, an increase of 28.1%

(unit: RMB million)

Property and Casualty Insurance and Others

Life Insurance

OPAT Attributable to Minority Shareholders

OPAT = Net Profits − Short-term Investment Movements − Changes to Evaluation Assumptions − Material One-off Factors

								%	17,428
							1
						.
				8
		2
	+							4,444
	13,606							%
							.1
						8
			5
	2,811	+
								%	17,835
							.7
					0
		2
13,907	11,096	+						13,392
	(301)								(407)
	1H 2019								1H 2020

	3,177	-	17,835	(407)	17,428
14,591	68

1H 2020	Short-term	Changes to	Material One-	1H 2020	OPAT of	1H 2020 OPAT
Net	Investment	Evaluation	off Factors	OPAT	Minority	Attributable to the
Profits	Movements1)	Asssumptions2）		Shareholders	Parent Company

Notes:

1) Short-term investment movements refer to the difference between life insurance actual investment income and long-term investment assumption (5%), while adjusting for ensuing changes to liabilities on insurance and investment contracts, and considering the impact of corporate income tax;

2) Changes to evaluation assumptions are based on amounts arising from accounting estimates changes, considering the impact of corporate income tax;

3) Numbers may not totally add up due to rounding.

4

Vigorously contributed to combat against COVID-19, demonstrating our commitment to society and customers

Committed to providing "Responsible, Smart and Caring" service to customers

• Immediately announced claims service commitments, launched the 7*24 claims hotline and the green channel, streamlined processes, removed restrictions on designated care providers and diversified on-line channels of claims handling. Moderately expanded the insurance coverage for multiple products such as PA and critical illnesses so as to provide even better cover for customers.

Pro-actively supported effort to resume work and business leveraging our insurance expertise

• Our customized insurance solution for the resumption of work and business has been rolled out to 35 provinces and municipalities, providing a total of 2.6bn yuan in sum assured to nearly 11,000 firms.
• Focusing on the key supply chain. Developed a product insuring against the disruption to the food supply in large and medium-sized cities, benefiting nearly 10 provinces and municipalities such as Beijing, Shanghai and Hunan.
• Focusing on 2 types of people: those working at the fore-front of the fight against the pandemic and those returning to work. Provided health cover to tens of millions of people returning to their jobs to fight the epidemic; innovated a customized insurance program for the resumption of work, benefiting over 2 million migrant workers in Shanghai and Hubei;
• Focusing on 3 kinds of companies, namely, manufacturing of key supplies, development of new drugs & vaccines and upstream or downstream companies of industrial value chains. Provided comprehensive insurance solution covering work-place safety and employee health to the first batch of 45 key manufacturers of anti-pandemic supplies; provided life science insurance to firms engaging in the development of COVID-19 drugs and vaccines; visited SMEs up-and-downstream the industrial value chain, and offered dedicated insurance products.

5

Accelerated technological innovation to empower insurance business development

Improving Governance

Enhancing Infrastructure

Accelerating On-line Operation

• Set up Technological Innovation and
  Consumer Rights Protection Committee under the board, which will play a leadership role in major decision- making relating to technology, formulation of technological innovation strategies, and the establishment of an effective operational system for technological innovation.
• The board approved the proposal to establish CPIC Fintech, a major step in the marketization of technology.

• Launched the database in Luojing, marking the establishment of the
  "3 data centers in 2 locations" framework.
• Improved key performance indicators of IT infrastructure like the number of customers in simultaneous interaction and customer response time.
• Started comprehensive strategic co-operation with leading technology firms and renowned institutions of higher learning, recruited experts from the market to enhance the competence of our team.

	u Built an on-line platform for individual auto
	insurance customers, supporting key
CPIC	journeys such as insurance application,
claims handling, customer service and
P/C
entitlements;
	u Realized AI-based underwriting for
	agricultural insurance, with on-line uploading
	of 132 products in the product factory.

• Stepped up the building of on-line systems

for the agency channel, covering recruitment,

CPIC training, basic management and customer

Life acquisition & up-sell.

• Launched a one-stop smart double- recording system for all scenarios, with a single-gadgetapplication ratio of 93%.

6

Intra-Group synergy continued to reap benefit, with "Products+Services" model gaining momentum

Premiums from collaboration business 保including云"cross-sell of health and automobile insurance by life insurance agents amounted to RMB9.95bn, a growth of 20.9%.

The number of customers with 2 insurance policies or above reached 27.29mn, up 6.3%.

Affiliates under the Group jointly developed more than 400 strategic accounts, which covered 84% of governments at provincial or municipal level.

Upgraded "CPIC Blue Passports" program with differentiated service for adults and children.

Launched "Tele-doctor" which provides on-line consulting service, cumulatively received 777.9 thousand visits.

The "CPIC Home" retirement communities issued over 10,000 certificates of admission. The experience centre has so far received 19,000 visits since inception.

7

Life Business (1/4)

NBV under pressure, with margin on individual customers business improving

(unit: RMB million)

-24.8%

14,927

11,228

NBV

New Business Value		NBV Margin on Individual
	Customer Business
-2.0pt	-20.7%	+6.8pt

56.5%

38,238	49.7%
39.0% 37.0%	30,316

NBV Margin	Annualized New Premiums
	1H 2019	1H 2020

8

Life Business (2/4)

Sustained growth of residual margin

Residual Margin

(unit: RMB million)

329,559347,056

285,405

228,370

172,600

31 Dec. 2016

31 Dec. 2017

31 Dec 2018

31 Dec. 2019

30 Jun. 2020

9

Life Business (3/4)

Stable growth of total premiums driven by renewed business, with surrender ratio staying flat

	Gross Written Premiums		Surrender Ratio
(unit: RMB million)		(unit: %)

138,428

26,305

100,674

11,449

1H 2019

FYP from Agency Channel of Individual

10Customers

+0.1	138,586
%
-27.5%	19,065

	.6%	107,324
6
+

12,197

1H 2020

Renewal Business	Others
from Agency
Channel of Individual
Customers

1.2 0.8 0.9

0.5 0.5

1H 2016 1H 2017 1H 2018 1H 2019 1H 2020

Life Business (4/4)

Pressing ahead with restructuring of agency force and vigourously exploring high-performing agent supportive system

Monthly Average Number of Agents

(unit: thousand)

	-3.8%
796	766
1H 2019	1H 2020

First Year Premiums per Agent

(unit: RMB yuan)

Cloud	On-line
Recruitment	Academy
On-line platform of	On-line training support
agent recruitment
Haiwen	Dingding
On-line information	On-line agent
service for agents	management platform

AMS System

An integrated on-line supportive system covering agents, managers and back-office staff

	-
	28.9%
5,887	4,183
1H 2019	1H 2020

Supportive System for High-

performing Agents

Upgrading of the cultivation system of high- performing agents focusing on the criteria, culture and empowerment of high-performing agents

11

Property and Casualty Insurance (1/3)

Combined ratio continued to improve, with fast top-line growth

Combined Ratio

(unit: %)
		-0.3pt
	98.6	98.3
		-0.8pt	38.6
39.4

59.2	+0.5p	59.7
	t

Gross Written Premiums

(unit: RMB million)

				%	76,672
			3
			.
		2
	1
68,247	+
				%	28,710
			.8
		9
22,114	2
+

46,133			%	47,962
	.0
	4
	+

1H 2019	1H 2020	1H 2019	1H 2020
Expense Ratio	Loss Ratio	Non-auto Insurance	Auto Insurance

12 Note: The property and casualty business on this slide refers only to CPIC P/C.

Property and Casualty Insurance (2/3)

Improved underwriting profitability of automobile insurance, with renewed business promoting shift of growth drivers

Combined Ratio of Auto Insurance

(unit: %)

98.4 -0.6pt 97.8

38.5 -0.3pt 38.2

59.9 -0.3pt 59.6

1H 2019	1H 2020
Loss Ratio	Expense Ratio

Data Foundation

• Continued to enhance customer information integrity

Customer Acquisition

• • Retention
• Increased support for on-line and off-line customer service, promoted branding of "Taihaopei" and set up customer-oriented operational system

Management Model

• Enhanced dedicated renew business team, with increased accountability

13 Note: The property and casualty business on this slide refers only to CPIC P/C.

Property and Casualty Insurance (3/3)

Rapid growth of non-auto business driven by emerging lines

Combined Ratio of Non-auto Insurance

(unit: %)

+0.2pt

99.599.7

1H 2019

1H 2020

Note: Non-auto business on this page refers only to CPIC P/C.

Agricultural Insurance

• Stepped up innovations in products, services and technology, and continuously improved services for farmers and rural areas. In the first half of 2020, CPIC P/C and Anxin Agricultural combined delivered RMB6.274bn in direct agricultural insurance premiums, up 45.6%, with sustained increase in market share.

Liability Insurance

• Expanded its coverage of areas relating to social administration and people's well-fare, with GWPs of RMB4.840bn, a growth of 34.1%, and improved underwriting profitability.

14

Asset Management (1/4)

Steady increase in Group assets under management, with improvement in market competitiveness

Group Assets under Management

(unit: RMB million)

1,665,641

	1,418,465	432,419
1,235,372	337,183
293,612
941,760	1,081,282	1,233,222

						%
					9
				.
		2
	1
2,043,078	+
							%
					8
					.
			0
623,815	2
+

		%
	4
	.
9
+

1,419,263

2,306,305 GroupAuM

753,439 Third-party

AuM

1,552,866 Group in-

house AuM

31 Dec. 2016

31 Dec. 2017

31 Dec. 2018

31 Dec. 2019

30 Jun. 2020

15 Note: Figures as of the end of 2018 were restated.

Asset Management (2/4)

Persisted in asset liability management, and continued to optimize asset allocation

	Group In-house Investment Portfolio	30 Jun. 2020 (%)	Change (pt)
	Fixed Income Investments	79.5	(0.9)
	Bonds	39.5	(3.1)
	Term Deposits	11.4	1.0
	Debt Investment Schemes	11.4	0.7
	Wealth Management Products 1)	10.8	0.9
	Preferred Shares	2.1	(0.2)
	Other Fixed Income Investments 2)	4.3	(0.2)
	Equity Investments	15.5	(0.2)
	Equity Funds	1.9	-
	Bond Funds	1.1	(0.2)
	Stocks	6.4	-
	Wealth Management Products 1)	0.1	-
	Preferred Shares	0.9	(0.1)
	Other Equity Investments 3)	5.1	0.1
	Investment Properties	0.5	(0.1)
	Cash, Cash Equivalents and Others	4.5	1.2

Notes:

1) Wealth management products include wealth management products issued by commercial banks, collective trust plans by trust firms, special asset management plans by securities firms and loan assets backed securities by banks, etc.

16 2) Other fixed income investments include restricted statutory deposits and policy loans, etc. 3) Other equity investments include unlisted equities, etc.

Asset Management (3/4)

Steady investment performance

Comprehensive Investment Yield	Total Investment Yield
(unit: %)
(unit: %)

-0.6pt

0.0pt

Net Investment Yield

(unit: %)

-0.2pt

5.9

5.3

4.84.8

4.6

4.4

1H 2019

1H 2020

1H 2019

1H 2020

1H 2019

1H 2020

17 Note: All on annualized basis.

Asset Management (4/4)

Credit risk of investment assets under control

External Credit Ratings of Corporate and Non- government-sponsored Bank Financial Bonds

	Share of
Share of AAA	AA/A-1
and above
93.7%
99.8%

External Credit Ratings of Non-public

Financing Instruments

Share of AAA	Share of
AA+ and above
94.7%
99.9%

Mix and Distribution of Yields of

Non-public Financing Instruments

	Share of	Nominal	Average Duration	Average
Sectors	Investments	Remaining
Yield (%)	(year)
	(%)	Duration(year)
Infrastructural	35.6	5.4	7.2	5.4
Projects
Non-bank	17.2	5.0	5.4	3.9
Financial
Institutions
Communicatio	16.3	5.4	6.6	4.3
ns & Transport
Real Estate	15.5	4.8	7.6	6.4
Energy and	8.1	5.1	6.5	4.1
Manufacturing
Others	7.3	5.9	8.2	5.8
Total	100.0	5.2	6.9	5.0

Note: Non-public financing instruments include wealth management products issued by commercial banks, debt investment schemes, collective trust plans by trust firms, special asset management plans by securities firms and loans backed securities by banking institutions, etc..

18

Outlook for the second half of 2020

Persist in high quality development, while striking balance between stability of business performance and acceleration of transformation.

• On the liability side, we will accelerate the shift of growth drivers of property and casualty insurance, pro- actively adapt to the comprehensive reform of automobile insurance, and translate the achievements of previous transformation into our competitive edge. We will also step up investment in the restructuring of the life insurance agency force, upgrade the customer-oriented operational model, and foster new growth engines via service and digital empowerment.
• On the asset management side, in a complex economic environment, it is essential to adhere to long-term, prudent and value investing, further enhance investment research capabilities, step up post-investment management, strengthen co-ordination of assets and liabilities and continue to improve capabilities in risk prevention and mitigation.
• Meanwhile, we will foster long-term development capabilities in key areas. Deepen long-term incentive systems so as to inject vitality into the organization; emulate leading insurance companies and renowned Internet firms, and accelerate market-based reform of systems and institutions so that technology can be a more powerful enabler of business development; pool premium resources, both in-house and third-party, and promote the core capabilities of health services.

19

Q & A