China Reinsurance : ANNOUNCEMENT - THE UNAUDITED FINANCIAL DATA AND SOLVENCY STATEMENT OF CHINA RE LIFE FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

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China Reinsurance (Group) Corporation

中國再保險（集團）股份有限公司

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

(Stock Code:1508)

ANNOUNCEMENT

THE UNAUDITED FINANCIAL DATA AND

SOLVENCY STATEMENT OF CHINA RE LIFE FOR THE

NINE MONTHS ENDED 30 SEPTEMBER 2019

This announcement is made by China Reinsurance (Group) Corporation (the "Company") pursuant to the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

Reference is made to the voluntary announcement of the Company dated 29 November 2018 in relation to the completion of the issuance of the capital supplementary bonds of China Life Reinsurance Company Ltd. ("China Re Life"), a subsidiary of the Company. China Re Life has successfully issued the capital supplementary bonds with a total principal amount of RMB5 billion publicly in the National Interbank Bond Market. In accordance with the relevant regulations, within the duration of the capital supplementary bonds, China Re Life needs to disclose its quarterly report and solvency statement at the websites of China Money (www.chinamoney.com.cn) and China Bond (www.chinabond.com.cn) on a quarterly basis. For details of the solvency statement, please refer to the relevant report to be disclosed at the above websites by China Re Life on 31 October 2019 and the announcement of the Company in relation to the main indicators of solvency at the end of the third quarter in 2019 to be published at the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company (www.chinare.com.cn) on 30 October 2019.

The unaudited financial data below for the nine months ended 30 September 2019 prepared by China Re Life in accordance with the PRC Accounting Standards for Business Enterprises will also be disclosed:

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STATEMENT OF FINANCIAL POSITION

As at 30 September 2019

		(RMB)
		Balance
		at the end
Assets	of the period
		(Unaudited)
Assets:
Cash and short-term time deposits	13,456,000,093.39
Financial assets at fair value through profit or loss	3,575,794,940.66
Financial assets held under resale agreements	1,282,400,224.00
	Interest receivables	1,347,530,643.02
	Reinsurance debtors	45,643,829,948.66
Reinsurers' share of unearned premium reserves	488,423,432.83
Reinsurers' share of outstanding claim reserves	4,100,755,340.25
Reinsurers' share of life insurance reserves	5,454,443,528.26
Reinsurers' share of long-term health insurance reserves	-
Investments classified as receivables	18,641,949,494.92
Reinsurers' share of policy loans	412,315,142.33
	Time deposits	2,000,000,000.00
	Available-for-sale financial assets	39,394,773,082.08
	Held-to-maturity investments	16,528,651,115.62
	Long-term equity investments	9,167,403,365.65
	Statutory deposits	1,850,000,000.00
	Investment properties	2,802,686,985.86
	Fixed assets	8,696,875.78
	Intangible assets	24,390,976.83
	Other assets	7,007,254,980.00
Total assets	173,187,300,170.14

2

		(RMB)
		Balance
		at the end
Liabilities and owners' equity (or shareholders' equity)	of the period
		(Unaudited)
Liabilities:
Securities sold under agreements to repurchase	6,141,248,542.11
	Reinsurance payable	11,075,034,707.49
	Salaries payable	111,804,175.32
	Taxes payable	2,088,769.21
Policyholders' deposits and investments	25,275,196,787.44
	Unearned premium reserves	5,331,204,719.40
	Claim reserves	12,157,729,356.28
Reserves for life insurance	83,933,616,442.01
Reserves for long-term health insurance	4,356,202,033.30
	Bonds payable	4,996,582,487.88
	Deferred tax liabilities	938,332,031.61
	Other liabilities	3,104,447,556.47
	Total liabilities	157,423,487,608.52
Owners' equity (or shareholders' equity):
Paid-in capital (or share capital)	8,170,000,000.00
	Capital reserves	-53,506,196.97
	Other comprehensive income	956,740,007.83
	Surplus reserves	1,003,018,658.37
	Generic risk reserves	1,003,018,658.37
	Retained profits	4,684,541,434.02
	Total owners' equity (or shareholders' equity)	15,763,812,561.62
Total liabilities and owners' equity (or shareholders' equity)	173,187,300,170.14

3

INCOME STATEMENT

For the nine months ended 30 September 2019

			(RMB)
			Amount for the
			current year
			(Unaudited)
I.	Operating income	44,341,175,967.35
	Premiums earned	40,291,463,620.97
		Gross written premium	44,281,767,877.84
		Of which: Reinsurance premium income	44,281,767,877.84
	Less: Premiums ceded to reinsurers	2,855,295,974.27
		Provision for unearned premium reserves	1,135,008,282.60
	Investment income	3,799,282,357.97
	Income from changes in fair value	83,579,374.37
	Foreign exchange losses	-99,012,736.08
	Other operating income	265,574,822.40
	Asset disposal income	-
	Other income	288,527.72
II.	Operating expenses	43,168,489,316.16
	Surrenders	2,968,519,544.09
	Claim expenses	6,226,549,718.72
	Less: Reinsurance claims recovery	895,750,825.69
	Change in insurance contract reserves	18,927,734,008.77
	Less: Changes of ceded insurance contract reserves	-12,911,414,072.33
	Provision for premium reserves	-
	Reinsurance commissions	1,944,773,655.98
	Taxes and surcharges	2,753,523.59
	Handling charges and commission expenses	82,442.89
	Operating and administrative expenses	155,045,118.94
	Less: Reinsurance commission income	359,184,864.96
	Other operating costs	1,256,865,281.86
	Impairment loss charges	29,687,639.64
III.	Operating profit	1,172,686,651.19
	Add: Non-operating income	1,648.00
	Less: Non-operating expenses	3,750,000.00
IV.	Profit before tax	1,168,938,299.19
	Less: Income tax expenses	208,941,826.49

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		(RMB)
		Amount for the
		current year
		(Unaudited)
V.	Net profit	959,996,472.70
VI.	Other comprehensive income	1,102,113,476.51
VII.	Total comprehensive income	2,062,109,949.21

5

CASH FLOW STATEMENT

For the nine months ended 30 September 2019

		(RMB)
		Amount for the
		current year
		(Unaudited)
I.	Cash flows generated from operating activities:
	Net cash received from reinsurance business	9,983,397,576.98
	Net increase in investment insurance contracts	2,180,306,256.19
	Cash received from other operating activities	4,432,828.90
	Sub-total of cash inflows from operating activities	12,168,136,662.07
	Net cash paid for reinsurance business	-
	Net decrease in investment insurance contracts	-
	Cash paid to and for employees	114,229,343.52
	Cash paid for taxes	275,575,116.12
	Cash paid for other operating activities	99,417,721.03
	Sub-total of cash outflows from operating activities	489,222,180.67
	Net cash flows generated from operating activities	11,678,914,481.40

1. Cash flows generated from investing activities:

Cash received from disposal of investments	40,919,410,068.88
Cash received from investment income	3,591,924,912.29
Cash received from other investing activities	2,090,600,838.85
Sub-total of cash inflows from investing activities	46,601,935,820.02
Cash paid for investments	49,728,014,752.46
Cash paid for acquisition of fixed assets, intangible assets and
	other long-term assets	171,639,567.40
Cash paid for other investing activities	3,454,902,864.55
Sub-total of cash outflows from investing activities	53,354,557,184.41
	Net cash flows generated from investing activities	-6,752,621,364.39

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		(RMB)
		Amount for the
		current year
		(Unaudited)
III.	Cash flows generated from financing activities:
	Cash received from investments	-
	Cash received from issuing bonds	-
	Net proceeds from securities sold under agreements to repurchase	1,681,481,042.72
	Sub-total of cash inflows from financing activities	1,681,481,042.72
	Cash paid for repayment of debt	-
	Cash paid for distribution of dividends, profit or payment of interests	495,000,000.00
	Net amounts paid for securities sold under agreements to repurchase	-
	Cash paid for other financing activities	3,710,000.00
	Sub-total of cash outflows from financing activities	498,710,000.00
	Net cash flows generated from financing activities	1,182,771,042.72
IV.	Effect of changes in foreign exchange rate on cash and cash equivalents	253,777,683.56
V.	Net increase in cash and cash equivalents	6,362,841,843.29
	Add: Balance of cash and cash equivalents at the beginning of the period	6,299,963,036.53
VI.	Balance of cash and cash equivalents at the end of the period	12,662,804,879.82

The above unaudited financial data of China Re Life for the nine months ended 30 September 2019 have been prepared in accordance with the PRC Accounting Standards for Business Enterprises, which have not been audited or reviewed by the auditors of the Company. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

On behalf of the Board

China Reinsurance (Group) Corporation

Zhu Xiaoyun

Joint Company Secretary

Beijing, the PRC, 29 October 2019

As at the date of this announcement, the executive directors of the Company are Mr. Yuan Linjiang, Mr. He Chunlei and Mr. Ren Xiaobing, the non-executive directors of the Company are Ms. Lu Xiuli, Mr. Wen Ning and Ms. Wang Xiaoya, and the independent non-executive directors of the Company are Mr. Hao Yansu, Mr. Li Sanxi, Ms. Mok Kam Sheung and Ms. Jiang Bo.

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