PICC Property and Casualty Company Limited: history, ownership, mission, how it works & makes money

A Brief History of PICC Property and Casualty Company Limited

PICC Property and Casualty Company Limited, established in 1949, is a key player in China's insurance market. Initially part of the People's Insurance Company of China (PICC), it was created to provide property and casualty insurance services. The company underwent reforms in the 1990s, leading to its incorporation as a separate entity in 2003.

In 2004, PICC Property and Casualty was listed on the Hong Kong Stock Exchange, with an initial public offering (IPO) raising approximately HKD 25.9 billion. This marked a significant milestone, enabling the company to expand its capital base and enhance its product offerings.

By 2010, PICC Property and Casualty reported gross written premiums of around RMB 168 billion, making it one of the largest property and casualty insurers in China. The company continued to grow, posting a net profit of approximately RMB 19.5 billion that year.

In 2015, the company implemented a strategic transformation to focus more on underwriting quality and risk management. By 2019, total assets reached about RMB 938 billion, with an increase in net profit to RMB 28.8 billion.

PICC Property and Casualty has expanded its service offerings over the years, introducing innovative insurance products and leveraging technology for enhanced customer experience. As of 2022, the company reported total revenue of approximately RMB 318 billion, with gross written premiums amounting to RMB 257 billion.

In terms of market share, as of 2023, PICC Property and Casualty holds approximately 15.1% of the Chinese property and casualty insurance market, maintaining its position as a market leader. The company continues to invest in digital transformation and innovation, aiming to enhance operational efficiency and customer service.

Furthermore, PICC Property and Casualty has been active in environmental and social governance initiatives, aligning with national policies supporting sustainable development. Its commitment to these principles has solidified its reputation within the industry.

PICC Property and Casualty Company Limited remains focused on growth and profitability while adapting to the evolving insurance landscape, positioning itself for long-term success in a competitive market.

A Who Owns PICC Property and Casualty Company Limited

PICC Property and Casualty Company Limited, a leading insurance provider in China, is primarily owned by its parent company, the People's Insurance Company of China (PICC). Established in 1949, PICC is the largest property and casualty insurance company in China, providing a wide range of insurance products.

As of the latest data from 2023, the ownership structure of PICC is as follows:

PICC Property and Casualty Company Limited is listed on the Shanghai Stock Exchange under the ticker symbol 601319. As of September 2023, the market capitalization of PICC Property and Casualty is approximately ¥200 billion.

The company reported a total income of ¥150.3 billion for the fiscal year 2022, with a net profit of ¥10.2 billion, reflecting a profit margin of approximately 6.8%. The company's combined ratio stood at 98.5%, indicating that the company is close to breaking even on its underwriting activities.

In terms of dividend policy, PICC Property and Casualty has maintained a consistent dividend payout ratio of around 30%, with a dividend per share of ¥1.2 distributed in 2022.

The shareholding of the company is characterized by both institutional and retail investors. As of the last reporting period, institutional investors accounted for about 40% of the total shares, while retail investors held approximately 60%.

Recent trends indicate that PICC is expanding its digital services, aiming to increase efficiency and customer engagement, which has become crucial in the evolving insurance landscape. The company has invested over ¥3 billion in technology enhancements over the last two years.

PICC Property and Casualty's solvency ratio is reported at 200%, which exceeds the regulatory minimum of 150% in China, indicating a robust financial position.

In summary, PICC Property and Casualty Company Limited's ownership is highly centralized within its parent company, supported by a diverse pool of public shareholders, which helps maintain its leadership in the property and casualty insurance market in China.

PICC Property and Casualty Company Limited Mission Statement

PICC Property and Casualty Company Limited, a leading player in the Chinese insurance market, focuses on providing comprehensive risk management and insurance solutions. The company's mission statement emphasizes its commitment to delivering a wide range of insurance products, enhancing customer service, and fostering sustainable development.

The mission statement of PICC highlights several core principles:

• Customer Centricity: To prioritize customer needs and enhance satisfaction through tailored insurance solutions.
• Innovation: To leverage advanced technology and innovation in product development and service delivery.
• Sustainability: To achieve sustainable growth while contributing to social welfare and environmental protection.
• Professionalism: To maintain high standards of professionalism and integrity in all business operations.

In 2022, PICC achieved a net premium income of CNY 195.4 billion, marking a growth of approximately 4.1% compared to the previous year. The net profit for the same period stood at CNY 22.6 billion, reflecting a robust year-on-year increase. Additionally, the company reported total assets of CNY 900.3 billion.

PICC’s focus on innovation and technology as part of their mission has seen the company invest in digital transformation initiatives. These efforts have been instrumental in improving operational efficiency and enhancing customer experience, aligning with their commitment to customer centricity.

Moreover, PICC's sustainability efforts are evident in its participation in various social responsibility programs which aim to reduce environmental impact while promoting public welfare. The company remains dedicated to achieving a delicate balance between profitability and societal contributions, as highlighted in their strategic objectives.

How PICC Property and Casualty Company Limited Works

PICC Property and Casualty Company Limited, a leading insurer in China, operates under the umbrella of the People's Insurance Company of China (PICC). Founded in 1949, it provides a variety of insurance products, including property, casualty, and liability insurance. As of December 31, 2022, PICC reported total assets amounting to approximately RMB 1.34 trillion (about USD 206 billion).

The company generates revenue primarily through premiums collected from its insurance policies. In 2022, PICC recorded total gross written premiums of about RMB 485.76 billion (around USD 75.4 billion), reflecting a growth rate of 8.7% compared to the previous year. The breakdown of the premium income includes:

PICC operates a comprehensive distribution network comprising both online and traditional channels. The company has established over 1,000 branches across China, with a strong presence in both urban and rural areas. Additionally, PICC's online platform offers insurance solutions to a tech-savvy customer base, contributing to its premium growth.

In terms of financial performance, the company reported a net profit of approximately RMB 21.73 billion (around USD 3.38 billion) for the fiscal year ended December 31, 2022, representing an increase of 12.3% year-over-year. The company's combined ratio, a key measure of profitability in the insurance industry, stood at 96.8%, indicating efficient underwriting practices.

Moreover, PICC holds a strong capital position, with a solvency ratio of 224% as of the end of 2022, well above the regulatory requirement of 100%. This robust solvency position enables the company to withstand financial shocks and maintain operational stability.

To further enhance its market position, PICC is investing in technology and digital transformation. In 2022, the company spent approximately RMB 2.5 billion (around USD 387 million) on technology upgrades and digital initiatives aimed at improving customer service and operational efficiency.

In summary, PICC Property and Casualty Company Limited demonstrates a solid performance across various metrics, underpinned by a diversified product portfolio, efficient operations, and a commitment to innovation and technology.

How PICC Property and Casualty Company Limited Makes Money

PICC Property and Casualty Company Limited (PICC P&C), a subsidiary of the People's Insurance Company of China (PICC), is one of the leading property and casualty insurance providers in China. The company generates revenue through a diversified range of insurance products and services, primarily focusing on non-life insurance. In 2022, PICC P&C reported a total premium income of approximately RMB 339.9 billion.

The primary segments of revenue for PICC P&C include:

• Automobile Insurance
• Liability Insurance
• Property Insurance
• Accident Insurance
• Health Insurance

In 2022, the breakdown of premium income by segment was as follows:

PICC P&C's automobile insurance is the main driver of revenue, accounting for 57.4% of total premium income. The growth of the automobile market in China, with sales reaching approximately 23 million units in 2022, supports this segment's profitability.

The company's investment income is another significant source of revenue. In 2022, PICC P&C reported an investment income of approximately RMB 39.7 billion, stemming from various investment strategies, including fixed income securities, equity investments, and real estate. The investment yield in 2022 was approximately 4.8%.

PICC P&C also emphasizes cost control and operational efficiency to enhance its profitability. The company's expense ratio improved to 27.3% in 2022, reflecting effective management of underwriting and administrative expenses.

Market trends, such as rising awareness of insurance coverage and increasing disposable income in China, further boost PICC P&C's business prospects. The company is also expanding its digital capabilities to enhance customer service and streamline operations, which is expected to drive growth in the upcoming years.

In addition to its domestic operations, PICC P&C has been exploring opportunities in the international market. This includes expanding its reinsurance services, which generated approximately RMB 6.5 billion in premium income in 2022.

The financial health of PICC P&C is solid, with a solvency ratio of 195% in 2022, well above the regulatory requirement of 100%. This strong capital position allows the company to underwrite new policies and invest in growth initiatives confidently.