China Pacific Insurance : OVERSEAS REGULATORY ANNOUNCEMENT - Summary of Quarterly Solvency Report (CPIC Allianz Health Insurance Co., Ltd.) (2nd Quarter of 2020)

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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 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and 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).

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.

Summary of Quarterly

Solvency Report

CPIC Allianz Health Insurance Co., Ltd.

2nd Quarter of 2020

Contents
I. BASIC INFORMATION ................................................................................................	1
II. KEY INDICATORS.......................................................................................................	2
III. ACTUAL CAPITAL .....................................................................................................	2
IV. REQUIRED CAPITAL .................................................................................................	2
V. INTEGRATED RISK RATING........................................................................................	3
VI. RISK MANAGEMENT STATUS ..................................................................................	3
VII. LIQUIDITY RISK.......................................................................................................	3
VIII. REGULATORY MEASURES TAKEN AGAINST THE COMPANY .................................	4

I. Basic information

1. Registered address: 13th Floor, Building No. 1, 1229 Century Avenue, China (Shanghai) Pilot Free Trade Zone, Shanghai, the PRC

(II) Legal representative: SUN Peijian

(III) Business scope and territories

1．Business scope：

Health and personal accident insurance denominated in RMB yuan and foreign currencies; health insurance commissioned by the government or supplementary to state medical insurance policies; reinsurance of the above said insurance ；health insurance-related agency and consulting business; insurance funds investment as approved by relevant laws and regulations; other business as approved by the CIRC.

2. Business territories：

Shanghai, Beijing, Guangdong Province, Sichuan Province

(IV) Ownership structure and shareholders：

1．Ownership structure

		Number of shares or
	Equity category	contributed amounts	Percentage (%)
		(10K shares)
	Domestic shares held by	130,986.70	77.05
	legal entities
	Domestic shares held by	-	-
	natural persons
	Foreign shares	39,013.30	22.95
	Others	-	-
	Total	170,000.00	100.00
2．Top 10 shareholders

	Shares held or amounts contributed	Percentage of the
Name of shareholders	as at the end of the reporting period	shareholding
	(10K shares)	(%)

1.China Pacific Insurance	130,986.70	77.05
(Group) Co., Ltd.
2. Allianz Group	39,013.30	22.95

(V) Controlling shareholder or de facto controller：

China Pacific Insurance (Group) Co., Ltd.

1

(VI) Subsidiaries, joint or associate ventures：

Company name	Number of shares	Percentage of the
held (10k shares)	shareholding (%)
Shanghai Proton & Heavy Ion Hospital	10,000	20

(VII) Contacts for solvency information disclosure

1．Contact person：CHANG Zhi

2．Telephone number：[phone]

II. Main indicators

Items

As at the end of this

As at the end of last

quarter/during this quarter

quarter/during last quarter

Core solvency margin ratio		124%	162%
Core solvency margin (10K RMB)	22,283.26	42,455.88
Comprehensive solvency margin ratio	124%	162%
Comprehensive solvency margin (10K RMB)	22,283.26	42,455.88
Latest IRR result		-	A
Premium income (10K RMB)		346,754.82	52,916.49
Net profit (10K RMB)		-755.76	3,013.86
Net assets (10K RMB)		123,393.52	119,328.09
III. Actual capital
Items		As at the end of this quarter	As at the end of last quarter
Admitted assets (10K RMB)		988,915.90	764,598.34
Admitted liabilities (10K RMB)		874,738.13	653,928.04
Actual capital (10K RMB)		114,177.77	110,670.30
Tier 1 core capital (10K RMB)	114,177.77	110,670.30
Tier 2 core capital (10K RMB)	-	-
Tier 1 supplement capital	(10K RMB)	-	-
Tier 2 supplement capital	(10K RMB)	-	-

IV. Required capital

As at the end of this

Items

quarter

As at the end of last quarter

Required capital (10K RMB)

Required capital for quantitative risks (10K RMB)

1）Required capital for insurance risk	(10K RMB)
2）Required capital for market risk (10K RMB)
3）Required capital for credit risk	(10K RMB)
Required capital for control risk	(10K RMB)
Supplement capital (10K RMB)
1）Counter-cyclical supplement capital	(10K RMB)
2）Supplement capital of D- SIIs	(10K RMB)
		2

91,894.5168,214.43

91,419.1367,861.55

80,576.8959,012.91

18,151.3712,832.62

9,176.5310,059.37

475.38352.88

--

--

--

3）Supplement capital of G-SIIs (10K RMB)

4）Other supplement capital (10K RMB)

--

--

V. Integrated risk rating (IRR)

The Company received an A rating for both Q1 of 2020 and Q4 of 2019 at the IRR.

VI. Risk management status

1. . The latest CBIRC Solvency Aligned Risk Management Requirements and Assessment (SARMRA) of the Company

In 2017, the Company received 78.96 points in the regulatory SARMRA assessment. The same score, as per regulatory notice, was used as the result for 2020 SARMRA assessment. To be specific, 78.96 consisted of 14.07 points for risk management infrastructure and environment, 7.54 points for risk management objectives and tools, 8.02 points for insurance risk management, 8.00 points for market risk management, 8.00 points for credit risk management, 8.36 points for operational risk management, 8.08 points for strategic risk management, 8.22 points for reputation risk management, and 8.68 points for liquidity risk management.

1. . Measures taken to improve solvency risk management and the latest results in the reporting period.

During the reporting period, the Company, as per regulatory requirements such as Insurance Company Solvency Regulatory Standards No. 11: Solvency Aligned Risk Management Requirements and Assessment, and based on its own risk profiles and risk status, mainly conducted 3 tasks to improve the solvency risk management systems: the issuance of Annual Program of Risk & Compliance Management, upgrading of Risk Upper Limits, and implementation of key processes of risk management.

VII. Liquidity risk

1. Liquidity risk management indicators
   1．Net cash flow

3

			Items			During/as at the end of this quarter
	Net cash flow (10K RMB)					4,990.45
2.	Comprehensive current ratio
			Items	Within 3 months	Within 1 year	1-3 years	3-5 years	Above 5 years
Comprehensive current ratio		173%	69%	262%	38,202%	-
3.	Liquidity coverage ratio
			Item			Stress scenario 1	Stress scenario 2
		Liquidity coverage ratio (%)			5,162%		4,807%

(II) Liquidity risk analysis and countermeasures

The Company generated positive net cash flows under the baseline scenario and all

stress scenarios, an indication of good liquidity.

VIII. Regulatory measures taken against the Company

(I) Regulatory measures taken against the Company by CBIR

CBIRC has not taken any regulatory measures against the Company.

(II) Corrective measures taken by the Company

None.

4