China Pacific Insurance : OVERSEAS REGULATORY ANNOUNCEMENT - 2020 Annual Results Announcement China Pacific Insurance (Group) Co., Ltd.

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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, 29 March 2021

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 are Mr. HUANG Dinan, Mr. WANG Tayu, Mr. WU Junhao, Mr. CHEN Ran, Mr. ZHOU Donghui, Ms. LIANG Hong, Ms. LU Qiaoling and Mr. John Robert DACEY; and the Independent Non-executive Directors are Ms. LIU Xiaodan, Mr. CHEN Jizhong, Ms. LAM Tyng Yih, Elizabeth, Mr. WOO Ka Biu, Jackson, and Mr. JIANG Xuping.

* Note: The appointment qualification of Mr. John Robert DACEY is subject to approval by China

Banking and Insurance Regulatory Commission.

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

April 1, 2021

Disclaimer

• n 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.

• n 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.

• n 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.

Overview

u In the face of global spread of COVID-19, economic slow-down, and cyclical shifts of the

insurance sector, we persisted in high-quality development, and stayed focused on the core business of insurance.

u The Board, with KPIs in mind, focused on delivery and rallied efforts on both pandemic

control & prevention and transformation & development. We achieved steady growth

of overall business results, with continued increase in comprehensive strength.

Performance Highlights

Steady growth of overall business results

Group Operating Income 1)

(Unit: RMB million)

Group OPAT

2)

(Unit: RMB million)

Group Embedded Value

(Unit: RMB million)

+9.5%422,182

+8.8%

2018

2019

2020

2018

2019

Net Asset per Share 2)

(Unit: RMB yuan)

2020

2018.12.31

2019.12.31

Group Number of Customers

(Unit: thousand)

+13.6%

+19.3%

2018.12.31

2019.12.31

2020.12.31

2018.12.31

2019.12.31

2020.12.31

2020.12.31

Notes: 1) Based on PRC GAAP.

2) Attributable to equity holders of the parent.

Steady increase in shareholder dividends since IPO

DPS (unit: RMB yuan)

+8.3%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Pay-out Ratio (unit: %)

33.5

89.9

35.1 35.2 36.2

62.5

51.1 52.6 49.4 50.3

50.9

39.1 41.0

39.2

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Average pay-out ratio

Note: Total dividend for 2020 includes an annual dividend of RMB1.2 and a special dividend of RMB0.1 on the occasion of CPIC's 30th anniversary, subject to approval of shareholders' general meeting.

Successful issuance of GDR and breakthroughs in mechanisms

Achieved listing in 3 venues

Became the first insurer listed in Shanghai, Hong Kong and London, pooling both funds and talents

Optimized ownership structure

A more professional, market-oriented and international board, with continued improvement of governance

Established long-term incentive system

Launched "the Ever-green Plan" in the life and P/C operations, stimulating organizational vitality

All-around progress in retirement business & launch of health business strategy

Deployment in Retirement Business

u Completed the 1st phase of 10bn-yuan investment in retirement properties, with 7 projects up and running in Chengdu, Dali, Hangzhou, Shanghai, Xiamen and Nanjing, involving a total floor space of 510,000 square meters, 6,300 beds under construction and 11,000 beds in reserve.

u Achieved initial success in establishing a full spectrum of product and service offerings for different age groups, and issued over 10,000 certificates of admission into our CPIC Home communities.

Health Strategy and Planning

• u The Board reviewed and approved the development programme of health business, providing guidelines on strategic direction.

• u Entered into strategic cooperation with Ruijin Hospital, a top-notch health care provider in China, and established Guangci CPIC Internet Hospital, marking an important step towards a full life-cycle health management model closely linked with insurance business.

• u Promoted long-term investment along the health value chain such as bio-pharmaceutical, medical appliances, medical care and tele-medicine based on market-oriented platforms.

Deepened technology marketization to better empower core insurance business

Empowering Governance

u Formed strategic partnerships with leadingu Started test-run of CPIC Fintech, with 5

technology firms and institutions of higher learning, established a technology system, a team of scientists, and joint AI labs.

business units of data intelligence, application development, Internet operation, cloud service, and shared platforms, as well as

2 R&D centres in Shanghai and Chengdu.

u Set up on-line platform for individual automobile

u Recruited leading technology experts in big

data, cloud computing, Internet operation and cyber security.

Empowering Insurance

u Stepped up on-line transitioning of sales model, such as cloud-driven distribution using "WeChat + AI", and realized remote taping and recording of the sales process based on video interaction technology.

insurance customers, with insurance application, claims handling, customer service and entitlements all going on-line.

Deepened customer operation to promote coordinated business development

Steady Increase in Individual Customer ProtectionContinued Improvement in Cross-sell to Individual Customers

4.73mn +17.1%

17.15mn +31.9%

No. of customers with sum assured exceeding RMB300,000 on critical illness products of CPIC Life

No. of customers with sum assured of a million yuan and above on Third-party Liability of automobile insurance

2.09

+7.2%

31.66mn

+23.3%

10.24mn

+22.5%

Group average number of insurance policies per individual customer

No. of individual customers with 2 insurance policies and above

No. of individual customers holding insurance policies of multiple subsidiaries

Further Diversified Services for Group Clients

Consolidated strengths in traditional business lines: agricultural insurance, government-sponsored critical illness insurance, long-term care insurance, occupational annuity

Delivered continued progress in emerging business: inherent defect insurance (IDI) and green insuranceExplored the path to deliver insurance solutions to employees and their families via our corporate/government clients

Performance Analysis

Group OPAT attributable to the parent RMB31.140bn, an increase of 11.7%

(unit: RMB million)

Life Insurance

Others and Consolidation Cancelling-outOPAT Attributable to Minority Shareholders

OPAT = Net Profits − Short-term Investment Movements −

Changes to Evaluation Assumptions − Material One-off Factors

+11.7%

OPAT 28,484

2020 Net Short-term

OPAT 32,031

ProfitsInvestmentChanges to EvaluationMaterial One-off

2020 OPATMovements1) Assumptions2) Factors

Notes:

OPAT 2020 OPAT Attributable to Attributable Minority to the Parent Shareholders

1) Short-term investment movements refer to the difference between actual investment income from life insurance, etc. 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, while considering the impact of corporate income tax.

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

Group Embedded Value

(unit: RMB million)

Composition of EV as at 31 December 2020

(unit: RMB million)

+16.0%

217,617

(12,167)

(3,508)

459,320

2019.12.31

2020.12.31

Group Value of In-force Cost of Minority

GroupAdjusted Business Before RequiredShareholders' Embedded Net Worth Cost of Required Capital Share of Life VIF Value

Capital

Movement of Embedded Value in 2020

(unit: RMB million)

EV as of the End of 2019

Expected Return on EV

NBVInvestment Operating Change to Diversification Change toExperience Experience Methods,VarianceEffect 1) MarketVarianceAssumptions, and ModelsValue AdjustmentProfit Distribution

Notes:

• 1) Diversification effect refers to the impact on cost of required capital of new business and business change.

• 2) Numbers may not totally add up due to rounding.

OthersEV as of the End of 2020

NBV under pressure, with NBV margin on individual customer business at decent level

New Business Value

(unit: RMB million)

新业NB务V价值

Annualize年d化Ne新w保Premiums

新N业BV务M价a值rgi率n

NBV Margin on Individual Customer

Business

54.9%

2019

2020

Sustained growth of residual margin

Residual Margin

201260年161.21月2.31 日

201270年171.122月.3311日

201280年181.122月.3311日

201290年191.122月.3311日

20220年201.122月.311日

Stability of total premiums driven by renewal business, with surrender ratio staying largely flat

Gross Written Premiums

(unit: RMB million)

212,514

211,952

22001199年

FYP from Agency

Channel of Individual Customers

22002200年

Renewal Business from

Agency Channel of

Individual Customers

Surrender Ratio

(unit: %)

2.0

220016年 22001177年 22001188年 22019年 22002200年

Others

Life Insurance (4/4)

Pressing ahead with restructuring and upgrading of agency force in the face of challenges

Monthly Average Number of Agents

2019

2020

Monthly Average Performing

Ratio of Agents 57.8%-1.0pt

Monthly Average First Year

Premiums per Agent

RMB3,259-22.6%

Delivered rapid top-line growth while maintaining underwriting profitability

Gross Written Premiums

(unit: RMB million)

Combined Ratio

(unit: %)

+0.7pt

2019 2020

Automobile iInsurance Non-automobile iInsurance

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

98.3

2019

Loss Rraattioio

99.0

2020

Expense Rraatitoio

Stable underwriting profitability of automobile insurance, with renewal business becoming core growth driver

Combined Ratio of Auto Insurance

Auto Insurance Growth Attribution

(unit: %)

(unit: RMB billion)

+0.0pt

97.9

97.9

Notes： 1）The property and casualty business on this slide refers only to CPIC P/C.

2019

LEoxspsenRsaetioratio

2020

LEoxspsenrasteioRatio

2019年 2019

RenewalBusiness 续保

Bu转sin保ess N新ew保 rom Other Business nsurance Companies Others2) 2020 其他2) 2020年

2）Others include motorcycles, tractors business, etc.

Property and Casualty Insurance (3/3)

Maintained rapid growth of non-auto emerging business lines

GWPs

RMB8.886bn

Health Insurance

Diversified the supply of personal lines health insurance products, gradually expanded the scope of business of government-sponsored

+72.7%insurance, contributed to China's health care system

Agricultural Insurance

GWPs

In spite of the pandemic, seized opportunities of government supportive policies, and realised profitable, sustainable and high-

RMB8.649bn quality development driven by intensive +44.8%management and continued improvement of strategies in geography, business lines, customers and management

GWPs

Liability Insurance

Focused on improving people's life, boosting innovation in public administration

RMB8.784bn and serving the real economy, accelerated development of business in food safety,

+44.1%environmental pollution, large high-tech machinery, and new materials

GWPs

RMB6.682bn

Guarantee Insurance

Personal lines business accounted for over 90%; it continued to enhance the risk control systems, and maintained stable business quality. Commercial lines focused on

+19.0%business which serves as a substitute for security deposit, with overall business risk under control

Asset Management (1/4)

Steady Growth in Group assets under management

Group Assets under Management

(unit: RMB million)

+19.2%

2,436,080

201260年161.122月.3311日

2012170,年018711.12,22月8.3211日

201280年181.212月.311日

201290年191.122月.3311日

2020年201.122月.3311日

Note: Figures as of 31 Dec. 2018 were restated.

Gro集u团p I投n-资ho资us产e AuM

第T三hi方rd-管pa理rt资y A产uM

Asset Management (2/4)

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

Group in-house investment portfolio	31 December 2020 (%)	Change (pt)
Fixed income investments	78.3	(2.1)
Bonds	39.3	(3.3)
Term deposits	11.7	1.3
Debt investment plans	11.4	0.7
Wealth management products 1)	9.6	(0.3)
Preferred shares	1.9	(0.4)
Other fixed income investments 2)	4.4	(0.1)
Equity investments	18.8	3.1
Equity funds	2.5	0.6
Bond funds	1.2	(0.1)
Stocks	7.7	1.3
Wealth management products 1)	0.1	-
Preferred shares	0.8	(0.2)
Other equity investments 3)	6.5	1.5
Investment properties	0.5	(0.1)
Cash, cash equivalents and others	2.4	(0.9)
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.

• 2) Other fixed income investments include restricted statutory deposits and policy loans, etc.

• 3) Other equity investments include unlisted equities and derivative financial assets, etc.

Asset Management (3/4)

Solid investment performance

Comprehensive

Investment Yield Total Investment Yield

Net Investment Yield

(unit: %)

(unit: %)

(unit: %)

2019

2020

2019

2020

2019

2020

Asset Management (4/4)

Credit risk of investment assets under control

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

Mix and Distribution of Yields of Non-public Financing Instruments

SectorsShare of Investments

(%)Average DurationNominal Yield (%)Average

(year)

Remaining Duration(year)

Infrastructure

Real Estate

Non-bank Financial Institutions Communications & Transport

Energy and Manufacturing

37.2

5.3

7.1 5.4

18.4

5.3

6.4 4.6

17.8

4.9

5.1 3.7

12.8

5.4

9.2 6.5

7.2

5.4

6.3 3.9

Others

6.6

5.9

8.0 5.6

Total

100.0

5.3

6.9

5.0

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

Outlook

Looking ahead into 2021, we will persist in the long-term and focus on value, and mitigate external risks and uncertainties by securing our own development.

Business Strategies

• u Life insurance will focus on fostering new growth drivers as part of the Changhang Program, continue to improve the quality and productivity of the agency force, diversify value-added services and enhance digital empowerment.

• u Property and casualty insurance will emulate top players of the industry, continuously enhance underwriting profitability to sharpen competitive edge for long-term development.

• u Investment will adapt to changing regulatory and competitive landscape, improve asset allocation through economic cycles and enhance research and risk control capabilities.

  Transformation & Breakthroughs

• u Continue to focus on key levers, striving for further progress in corporate governance, organizational reform, deployment in health and retirement sectors, marketization of technology and collaborative regional development.

Q&A

Appendix: Financial Analysis of Life Insurance Business

(unit: RMB million)

For 12 months ended 31 December Net premiums earned

2020

203,848

Investment incomenote 1 Exchange losses/(gains) Other operating income Gains on disposal of assets Other income

75,548

2019 204,340 59,876

changes(%)

(0.2) 26.2

(89)

17 (623.5)

2,283

2,330 (2.0)

4

13 (69.2)

Operating income Surrenders Claims

45 281,639

30 50.0

266,606 5.6

(14,421)

(11,089) 30.0

(59,577)

(57,769) 3.1

Less: claims recoveries from reinsurers Net change in insurance contract reserves Commission and brokerage expenses Operating and administrative expenses Other expenses note2

3,644

2,758 32.1

(132,775)

(118,988) 11.6

(21,359)

(28,886) (26.1)

(15,037)

(14,938) 0.7

(21,743)

(18,318) 18.7

Operating expenses Operating profit

(261,268)

(247,230) 5.7

20,371

19,376

Net of non-operating income and expenses

(72)

(93)

5.1 (22.6)

Income tax Net profit

(1,657) 18,642

1,247 (232.9)

20,530 (9.2)

Notes:

• 1. Investment income includes investment income and gains/(losses) arising from change in fair value on financial statements.

• 2. Other expenses include policyholder dividends, expenses for reinsurance assumed, expenses recoveries from reinsurers, interest expenses, other operating expenses, asset impairment losses and taxes and surcharges, etc.

Appendix: Financial Analysis of P/C Insurance Business

(unit: RMB million)

For 12 months ended 31 December	2020	2019	changes(%)
Net premiums earned	121,835	104,587	16.5
Investment incomenote1	6,834	5,631	21.4
Exchange losses/(gains)	(249)	44	(665.9)
Other operating income	225	314	(28.3)
Gains on disposal of assets	2	1	100.0
Other income	31	30	3.3
Operating income	128,678	110,607	16.3
Claims	(81,908)	(69,432)	18.0
Less: claims recoveries from reinsurers	10,014	8,799	13.8
Net change in insurance contract reserves	(3,010)	(2,392)	25.8
Changes in insurance premium reserves	105	87	20.7
Commission and brokerage expenses	(18,277)	(18,064)	1.2
Operating and administrative expenses	(33,689)	(26,876)	25.3
Other expenses note 2	5,004	3,401	47.1
Operating expenses	(121,761)	(104,477)	16.5
Operating profit	6,917	6,130	12.8
Net of non-operating income and expenses	(29)	(5)	480.0
Income tax	(1,679)	(215)	680.9
Net profit	5,209	5,910	(11.9)
Notes:

• 1. Investment income includes investment income and gains/(losses) arising from changes in fair value on financial statements.

• 2. Other expenses include expenses for reinsurance assumed, expense recoveries from reinsurers, interest cost, other operating expenses, asset impairment losses and taxes and surcharges, etc.

Appendix: Comprehensive Solvency Margin Ratio

CPIC Group

CPIC Life

CPIC P/C

(unit: %)

(unit: %)

(unit: %)

2018

2019

2020

2018

2019

2020

2018

2019

2020

Appendix：Sensitivity Analysis

Sensitivity results of the value of in-force business and the value of one year's sales after cost of required capital held as at 31 Dec. 2020

(unit: RMB million)

Value of In-force Business After	Value of One Year's Sales After
Cost of Required Capital Held	Cost of Required Capital Held
Base	205,451	17,841
Risk discount rate "+50 basis points"	198,062	17,065
Risk discount rate "-50 basis points"	213,448	18,676
Investment return "+50 basis points"	237,937	19,975
Investment return "-50 basis points"	172,511	15,707
Mortality "+10%"	204,270	17,687
Mortality "-10%"	206,629	17,995
Morbidity "+10%"	199,123	16,820
Lapse and surrender rates "+10%"	206,591	17,510
Lapse and surrender rates "-10%"	204,190	18,168
Expenses "+10%"	202,029	16,733

Note: In determining the sensitivity results, only the relevant cashflow assumption and risk discount rate assumption have been changed, while all other assumptions have been left unchanged.

Appendix: Honours & Awards

• u CPIC Group was listed on Fortune Global 500 for the 10th consecutive year, ranking 193rd, up 6 places from 2019

• u CPIC Group ranked 132nd among the World's 500 Most Valuable Brands in 2020, and 6th among the World's 100 Most Valuable Insurance Brands in 2020 released by Brand Finance, with brand value exceeding USD 14 billion, an increase of 31% from previous year.

• u CPIC Group won the Company of the Year Award in Corporate Social Responsibility for the 11th consecutive year by China Business Network.

• u CPIC P/C and CPIC Life both won top A rating for the 5th consecutive year in the regulatory evaluation of business operation of insurance companies. CPIC

  P/C and CPIC Life both won the Service Institution of the Year Award at the 2020 China Insurance Service Innovation Summit held by China Banking and Issuance News.

• u CPIC P/C and CPIC P/C Inner Mongolia Branch both were awarded the honorary title of "National Excellent Organization for Poverty Alleviation" by CPC Central Committee and the State Council for their pioneering efforts and outstanding results in fighting poverty with insurance.

• u CPIC Life won the honorary title of Excellent Life Insurance Company of the Year of the 2020 China Golden Tripod Award organized by National Business Daily.

• u CPIC AMC and Changjiang Pension were honored as Best Insurance Asset Management Company of the Year 2020 and Best Pension Management Company of the Year 2020 respectively in the 2020 China Asset Management Annual Meeting & Jinbei Awards Ceremony hosted by the 21st Century Economic Daily.

• u CPIC Health was awarded the 2020 Customer Satisfaction Brand for March 15th the Consumer Rights Protection Day by China's Foundation of Consumer Rights Protection.

• u Anxin Agricultural's Agriculture-related Financial and Insurance Service System Project was granted the 2020 China Insurance Ark Award by the People's Daily and the Securities Daily.

32

THANKS!