China Pacific Insurance : ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 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)

ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2020

Chairman’s statement

The year 2020 has shaped up to be one that is extraordinary and particularly challenging. With the unexpected outbreak of COVID-19, the whole of China mobilised manpower and resources to combat the pandemic. In the face of growing uncertainties in domestic and overseas economic environments, increasing risks and challenges, and normalisation of the pandemic prevention and control effort, we took matters into our own stride, maintained consistency in strategies, and continued to work hard and make progress.

We achieved a milestone in the history of our development. In the first half of 2020, we issued and listed global depositary receipts (GDRs) on the LSE, making us the first insurer simultaneously listed in Shanghai, Hong Kong and London. Our history over the past 30 years is

compelling evidence of the importance of corporate governance as the bedrock of the development of a business enterprise. It is because of the effectiveness of our governance mechanisms that CPIC has been able to persist in high-quality development, forestall systemic risks, and contribute to national initiatives, China’s real economy as well as the welfare of the Chinese people. And we will not stop there. The recent GDR issuance is another important step to enhance our corporate governance. It raised capital and, more importantly, it pooled talent. In particular, with the participation of high-quality investors such as Swiss Re, we further optimised our ownership structure, which laid a sound foundation for continuous enhancement of corporate governance. Recently, with the election of new directors, the new board of directors has become more diversified, international and professional, which, in turn, will add impetus to the implementation of Transformation 2.0 and long-term development of the Company.

We delivered steady growth of business results. The board closely tracked the status of KPIs and led a broad-basedeffort to promote business development. In the first half of the year, we achieved further growth of comprehensive strength, while maintaining an overall healthy momentum in the core business segments.

• The property and casualty insurance business reported rapid top-line growth, with continued enhancement of underwriting profitability.
• Our life insurance operation met challenges head-on, stepped up on-line management of the agency force, and continued to push for its restructuring and upgrading focusing on the 3 core segments. During the reporting period, we achieved steady growth of the life insurance residual margin, with improvement in new business value (NBV) margin of the individual customer business.
• As for asset management, we persisted in the optimisation of Strategic Asset Allocation (SAA) based on profiles of liabilities, while enhancing infrastructural management, improving mechanisms of outsourcing management and performance evaluation, and pushing forward the building of mid-end systems, with steady investment performance in the first half of 2020.

We pressed ahead with transformation.

• Breakthroughs in innovations of systems and mechanisms. We vigorously promoted the establishment of a market-based, long-termincentive system, with recent on-the-groundprogress in the core business segments of our life and property and casualty operations.

The new structure combines a performance-based pay system, which focuses on value contribution, and a dynamic mechanism to « enlarge the pie » of compensation package. At the same time, given the long-term nature of the insurance business, there are also mechanisms of « lock-ups », « deferred payment » and « claw-backs ». The new scheme covers the key positions of the headquarters of the life and property and casualty subsidiaries, and is more skewed towards the front-line of their branch offices, so as to strike a balance between providing incentives for growth and quality. We believe that the implementation of the new mechanisms will stimulate organisational vitality and improve talent retention, paving the way for sustainable development.

• Further progress of digital empowerment. The data centre in Luojing of Shanghai was proceeding according to plan, with the completion of « CPIC Cloud » and « 3 Data Centres in 2 Locations ». We continued to optimise the distributional framework of the core business systems, fostering seconds-level response capabilities. We also started comprehensive strategic co-operation with leading technology firms and renowned academies, put in place a mode of co-operation for the technology ecosystem, with steady progress in the capacity- building of data processing and AI mid-end output. We formulated a draft plan for the establishment of CPIC Fintech, in a bid to enhance our technology capabilities in an all- around way through marketisation of technology.
• Reaping more benefits from increased intra-Group synergy. We launched a new management system for cross-sellbusiness and intra-Groupcollaboration, integrated customer data, improved tools support and continued to promote the integrated customer- oriented operational model with our own characteristics. In the first half of 2020, business from intra-Groupcollaboration grew rapidly, underpinned by unified customer resources at Group level. Of this, cross-sellpremiums, such as health and automobile insurance cross- sold by life insurance agents amounted to RMB9.95 billion, a growth of 20.9%; the number of customers with 2 insurance policies or above reached 27.29 million, up 6.3%; affiliates under the Group jointly developed more than 400 strategic accounts, which covered 84% of governments at provincial or municipal level.
• Deepening of integrated risk management. We improved the standards, performance evaluation and personnel management systems of risk management, while launching pilot programmes of integrated risk management at grass-rootlevels. We pushed forward the integration of risk management and internal auditing which went downstream to sub-keybranches, so as to enhance the risk management effectiveness at grass-rootlevels. We

initiated the re-engineering of key processes at Group headquarters in a bid to streamline procedures, improve efficiency and strengthen service capabilities. We promoted the sharing of financial resources, deepened centralised management of fund payments and receipts, unified fund management so as to maximise benefits from centralisation.

We promoted the branding of « CPIC Service » in an all-around way. Since the outbreak of the pandemic, we stood side by side with our compatriots and fully participated in the combat against the pandemic. As an insurance company, we provided insurance cover to mitigate disruption to the economy and people’s welfare, while facilitating resumption of businesses and work. We provided comprehensive solutions in the form of funding and risk protection, which targeted the key supply chain and most vulnerable communities and enterprises, supporting firms in key sectors and SMEs in their effort to resume normal business. CPIC employees have been seen at the forefront of the fight against the pandemic, around the pavilions of the China International Import Expo, and at the scene of disaster relief in flood-strickenareas of Southern China, reinforcing a brand image of « Responsible, Smart and Caring » of « CPIC Service ».

We continued to deepen targeted poverty reduction mechanisms. As of the end of the first half of 2020, our poverty alleviation programmes covered 6.414 million registered impoverished people nationwide, and provided a total of RMB2.73 trillion in sum assured to poverty-strickenareas. The « Fang Pin Bao » programme was up and running in over 500 districts and counties of 25 provinces, providing cover against poverty with sum assured of RMB5.96 trillion, benefiting 90 million vulnerable people. We paired up with 2 rural townships and 3 rural villages and succeeded in lifting them out of poverty 9 months earlier than planned. The Rainbow On-lineCharity Platform, stepped up product promotion via live streaming, and delivered nearly 60% increase in turnover dedicated to poverty alleviation. The mode of « shopping and donating to those in need » helps to pool resources and get more people on board in the poverty relief effort.

Thirty years is the prime time of one’s life. As a business enterprise, we will soon celebrate our 30th anniversary, and that means more foresight and even better plan to prepare us for long-term growth opportunities. Recently, we completed a new 3-YearDevelopment Programme of the Group and the Development Programme of Health-relatedBusiness. The former outlines the vision and objectives of the Group between 2020 and 2022, and sets out the 3 development paths, namely, the improvement of product and service supply, the focus on long-term capacity-buildingand long-termincentive systems and the establishment of an integrated risk control system. The latter revisits and revamps the strategic plan for deployment along the health value chain, with a vision of becoming a leading domestic provider of

comprehensive health-related services via capacity-building in products, services, operation and risk management. In the retirement business, we are half way through the implementation of original plans. The « CPIC Home » retirement communities are up and running in various locations across China. Given China’s economic development and demographic shift, the health and retirement sector is becoming increasingly important. The COVID-19 pandemic further raised people’s awareness of public health. Going forward, we will seize opportunities and vigorously deploy along the health and retirement value chain, in a bid to promote the model of « insurance products + health management » and « insurance products + elderly care ».

The quest for great achievements always starts with the first step. The COVID-19pandemic is still spreading globally, triggering an economic slow-down.A new development pattern of « dual circulation » is beginning to take shape in China, with domestic circulation at the core supplemented by international circulation. As for China’s insurance industry, the life insurance market is still facing big challenges, while on the property and casualty insurance side, the comprehensive reform of automobile insurance is expected to be launched soon, with the severity and frequency of natural disasters in 2020 rarely seen before. All these lead to increasing uncertainties in our business operation. But a complex market environment is all the more reason for rationality and consistency in strategies.

In the second half of the year, we will persist in high quality development, while striking a balance between stability of business performance and the 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 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 the principle of 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.
• It is equally important to foster long-term development capabilities in key areas. One is the deepening of long-term incentive systems so as to inject vitality into the organisation; another priority is marketisation of technological innovation. We will 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; there is also the building of a platform for health management services by pooling premium resources, both in-house and third-party, and promoting the sharing of core capabilities.

Looking ahead, under the leadership of the board of directors, we will stiffen the sinews, meet challenges head-on, and work relentlessly toward the vision of « being the best in customer

experience, business quality and risk control capabilities, with industry leadership in healthy and steady development« .

Review and analysis of operating results

Business overview

I. Key businesses

We are a leading integrated insurance group in China, and the first insurer simultaneously listed in Shanghai, Hong Kong and London. We provide, through our subsidiaries and along the insurance value chain, a broad range of risk protection solutions, wealth management and asset management services.

In particular, we provide life/health insurance products & services through CPIC Life, property and casualty insurance products & services through CPIC P/C and Anxin Agricultural, and specialised health insurance products & health management services through CPIC Allianz Health. We manage insurance funds, including third-party assets, through our investment arm, CPIC AMC. We conduct pension fund management business and other related asset management business via Changjiang Pension. We also engage in mutual fund management business through CPIC Fund.

In the first half of 2020, China’s insurance market realised a premium income of RMB2,718.624 billion, up 6.5% from the same period of 2019. Of this, premium from life/health insurance companies amounted to RMB1,996.877 billion, a growth of 6.0%, and that from property and casualty insurance companies amounted to RMB721.747 billion, up 7.6%. Measured by direct business premiums, CPIC Life and CPIC P/C are both China’s 3rd largest insurers for life and property and casualty insurance, respectively.

II. Core competitiveness

We are a leading integrated insurance group in China, and the first insurer simultaneously listed in Shanghai, Hong Kong and London, ranking 193rd among Fortune Global 500 released in 2020. On the back of vigorous effort in transformation and competitive insurance expertise, we can capitalise on the growth potential of China’s insurance market.

Focus

We persist in the focus on insurance, and have obtained a full range of insurance-related licences covering life insurance, property and casualty insurance, pension, health insurance, agricultural insurance and asset management. With balanced development of business segments along the insurance value chain, we have fostered top-notch core competitiveness in the insurance business. Our life/health insurance business, with the agency channel as the key driver of both

volume and value growth, centres on protection, pursues product innovation and strives to drive sustainable value growth. The property and casualty insurance persists in business quality control, promotes the shift of growth drivers, with continuous improvement in underwriting profitability. As for investment, we put in place the system of asset liability management (ALM), adhere to prudent, value and long-term investing, and enhance mechanisms to curb cost of liabilities, with sustained improvement in industry-leadingliability-based SAA capabilities. In the first half of the year, in the face of the COVID-19 pandemic, we pro-actively enhanced professional capacity-building, stepped up the on-line operation of the agency force, innovated products and services to seize opportunities arising from the resumption of work and business, and achieved steady business development.

Prudence

We are committed to protection as the central insurance value proposition, and pursue a path of high-quality development with a business philosophy centring on prudence and sustainability. We boast a professional and competent board of directors, an experienced management team and a group-centralised platform of management, with sound corporate governance featuring a clear definition of responsibilities, checks and balances and well-coordinated mechanisms. Through the recent GDR issuance, we raised capital and attracted talent, further optimised shareholding structure, which paved the way for continued improvement in corporate governance and an even more diversified, international and professional board of directors. We established an industry leading system for risk management and internal control, which ensures healthy and sustainable development of the Company.

Dynamism

We persist in customer orientation and forge ahead with transformation in a bid to foster capabilities for sustainable development. In response to trends and dynamics of the industry, we pro-actively invest in emerging business segments such as health care and elderly care, with progress in the new « products + services » model. We use technology to empower the insurance business, seeking to enhance customer experience, operational efficiency and risk management, and facilitate transformation. We boost synergy across various business segments based on customer data mining, so as to boost value creation.

Responsibility

Committed to our responsibility to society, customers and shareholders, we vigorously participate in national initiatives, serve the needs of the real economy, promote the brand image

of « CPIC Service » as one that is « Responsible, Smart and Caring », contributing to a better life of the Chinese people. At the same time, we strive to generate sound returns and give back to our shareholders so that they can benefit from the growth of the Company.

Performance overview

We focused on the core business of insurance, deepened the customer-oriented Strategic Transformation, pursued high quality development and delivered solid business results and sustained increase in overall strength in the reporting period.

I. Performance highlights

During the reporting period, Group operating incomenote 1 amounted to RMB235.481 billion, of which, gross written premiums (GWPs) reached RMB216.597 billion, a growth of 4.2% compared with the same period of 2019. Group net profitnote 2 reached RMB14.239 billion, down by 12.0%, with net operating profitnotes 2, 3 (OPAT) of RMB17.428 billion, a growth of 28.1%. Group embedded value amounted to RMB430.420 billion, an increase of 8.7% from the end of 2019. Of this, value of in-force businessnote 4 reached RMB198.247 billion, up 5.7%. Life insurance business delivered RMB11.228 billion in NBV, down by 24.8% compared with the same period of 2019, with an NBV margin of 37.0%, down by 2.0pt. Property and casualty insurance businessnote 5 recorded a combined ratio of 98.4%, down by 0.2pt. Annualised growth rate of Group investments’ net asset value fell by 0.6pt to 5.3%. As of the end of the reporting period, Group total number of customers amounted to 140.65 million, an increase of 2.09 million from the end of 2019.

Life business NBV growth under pressure, with steady growth of residual margin.

• CPIC Life realised RMB11.228 billion in NBV, down by 24.8%, with an NBV margin of 37.0%, down by 2.0pt. Given the focus on business quality, the NBV margin of the individual customer business stood at 56.5%, up 6.8pt from the same period of 2019.
• The residual margin of life insurance amounted to RMB347.056 billion, a growth of 5.3% from the end of 2019.
• CPIC Life realised a 5.9% growth of renewal business, driving a GWP growth of 0.1%,

reaching RMB138.586 billion.

Improved combined ratio of property and casualty businessnote 5, with rapid top-line growth.

• The control of expenses was intensified in property and casualty insurance business, and

recorded a combined ratio of 98.4%, down by 0.2pt. Of this, loss ratio stood at 59.9%, up 0.6pt, and expense ratio fell to 38.5%, down by 0.8pt.

• GWPs amounted to RMB77.748 billion, an increase of 12.4%. Of this, non-auto business grew by 29.1% and accounted for 38.2% of total property and casualty insurance GWPs, up 4.9pt.
• Automobile insurance enhanced renewal business management and pushed for a shift of growth drivers. Emerging business lines including agricultural and liability insurance experienced rapid development. Of this, agricultural business realised RMB6.274 billion in

direct business premiumsnote 6, with a fast increase in market share.

Persisted in asset allocation stretching across economic cycles and based on profiles of liabilities, with largely stable investment results.

• The share of fixed income investments stood at 79.5%, down by 0.9pt from the end of 2019; that of equity investments 15.5%, down by 0.2pt, and of this, core equity investmentsnote 7 accounted for 8.3% of total investment assets, the same as that at the end of 2019.
• With continued effort to extend asset duration, enhance investment research capabilities and the Tactical Asset Allocation (TAA) process, Group annualised growth rate of investments’ net asset value reached 5.3%, down by 0.6pt from the same period of 2019. Annualised total investment yield was 4.8%, the same as that for the first half of 2019, with annualised net investment yield of 4.4%, down by 0.2pt.
• Group assets under management (AuM) amounted to RMB2,306.305 billion, an increase of 12.9% from the end of 2019. Of this, third-party AuM amounted to RMB753.439 billion, an increase of 20.8%.

Notes:

1. Based on PRC GAAP.
2. Attributable to shareholders of the parent.
3. OPAT is based on net profit on the financial statements, while excluding certain P/L items with short-term volatility an material one-off items which management does not consider to be part of the Company’s day-to-day business operation.
4. Based on the Group’s share of CPIC Life’s value of in-force business after solvency.
5. Consolidated data of CPIC P/C, Anxin Agricultural and CPIC HK.
6. Based on direct business premiums, excluding premium from reinsurance assumed, with consolidation of CPIC P/C and Anxin Agricultural.
7. Stocks and equity funds included.

II. Key performance indicators

Notes:

1. Based on the Group’s share of CPIC Life’s value of in-force business after solvency.
2. Attributable to shareholders of the parent.
3. The Group number of customers refers to the number of applicants and insureds who hold at least one insurance policy within the insurance period issued by one or any of CPIC subsidiaries as at the end of the reporting period. In the event that the applicants and insureds are the same person, they shall be deemed as one customer.

Life/health insurance business

Due to the impact of COVID-19 pandemic, NBV growth was under pressure. CPIC Life stepped up on-line business operation, promoted the restructuring of the agency force, explored the new development mode of « products + services » in a bid to foster new growth drivers. CPIC Allianz Health boosted product and service innovations, deepened Group strategy of synergic development, and recorded rapid business growth.

I. CPIC Life

(I) Business analysis

In the first half of 2020, driven by renewal business growth, CPIC Life reported RMB138.586 billion in GWPs, a growth of 0.1% compared with the same period of 2019. Due to the decline of new business premiums, the NBV fell by 24.8% to RMB11.228 billion. As a result of decreased share of first year premiums (FYPs) from individual customer business, the NBV margin fell by 2.0pt to 37.0%. Given the focus on business quality, the NBV margin of the individual customer business stood at 56.5%, up 6.8pt.

1. Analysis by channels

Note: Other channels include bancassurance and telemarketing & internet sales, etc.

(1) Business from individual customers

For the reporting period, CPIC Life realised RMB130.707 billion in GWPs from individual customers, down by 1.3%. Of this, new policies from the agency channel amounted to RMB19.065 billion, down by 27.5%, and renewal business RMB107.324 billion, an increase of 6.6%. GWPs from the agency channel accounted for 91.2% of total GWPs, a decrease of 0.5pt from the first half of 2019.

The COVID-19 pandemic was a major disruption to the traditional operational mode of the agency channel, such as off-line marketing, recruitment and basic management activity. To address these challenges, CPIC Life took a host of measures to promote the upgrading of the agency force, such as accelerating on-line operation, improving agent recruitment, enhancing agent training, and increasing technological applications. During the reporting period, monthly average number of agents reached 766,000. Of this, monthly average number of active and high- performing agents reached 207,000 and 121,000, accounting for 27.0% and 15.8% respectively of the total number of agents, with month-on-month recovery in the second quarter. At the same time, CPIC Life vigorously explored the new model of « products + health management » and « products + elderly care » via the health management service of « CPIC Blue Passports », the deposit of human immune cells under the « Life Bank » programme, and retirement communities of « CPIC Home » to help with the acquisition of high-end customers. As of the end of the reporting period, « CPIC Home » had extended over 10,000 certificates of admission into its retirement communities.

Going forward, CPIC Life will persist in customer orientation and high-quality development, « do the right thing » and pursue sustainable value growth. We will intensify efforts to upgrade the agency force, diversify service offerings and promote digital empowerment. To be specific, we will step up the restructuring of the sales force focusing on the core manpower, ultra-high performing agents and new generation agents; vigorously push forward the model of « products + services » as part of the effort to foster the brand name of « CPIC Service »; step up digital

empowerment and the on-line and off-line integration to strengthen capabilities in customer acquisition and up-sell.

(2) Business from group clients

In pursuit of high-quality development, CPIC Life focused on the core customer segments, effectively controlled expenses and risks through business and service innovations, and delivered improved profitability as evidenced by lower direct cost ratio and combined ratio. During the reporting period, the business segment realised RMB7.879 billion in GWPs, up 30.7%. CPIC Life vigorously contributed to China’s social health insurance system by engaging in government-sponsored business such as critical illness programmes, third-party administration of social insurance, long-term care and supplementary medical insurance, which, during the reporting period, covered over 115 million people, cumulatively responded to nearly 14 million service requests, and paid out a total of RMB16 billion in claims. There was cumulatively a total of 36 managed care programmes, covering 32 million people under the social security system in 31 municipalities/prefectures of 12 provinces.

2. Analysis by product types

CPIC Life focus on both traditional and participating products. For the reporting period, traditional business generated RMB55.370 billion in GWPs, up 14.0%. Of this, long-term health insurance contributed RMB28.491 billion, up 2.8%. Participating business delivered RMB70.234 billion in GWPs, down by 11.1%, due to switch of products.

3. Policy persistency ratio

Notes:

1. 13-monthpersistency ratio: premiums from in-force policies 13 months after their issuance as a percentage of premiums from policies which entered into force during the same period.
2. 25-monthpersistency ratio: premiums from in-force policies 25 months after their issuance as a percentage of premiums from policies which entered into force during the same period.

The policy persistency of CPIC Life maintained an overall healthy level, with the 13-month and 25-month persistency ratios at 86.9% and 86.7% respectively.

4. Top 10 regions for GWPs

The GWPs of CPIC Life mainly came from economically developed regions or populous areas.

(II) Financial analysis

Unit: RMB million

Note: Investment income includes investment income and share of profit / (loss) in equity accounted investees on financial statements.

Investment income for the reporting period was RMB33.137 billion, up 15.2%, mainly because of increase in gains from securities trading and interest income on bond investments.

Net policyholders’ benefits and claims amounted to RMB130.183 billion, up 5.2%, largely due to growth of changes in long-term life insurance contract liabilities.

Other operating and administrative expenses for the reporting period amounted to RMB20.016 billion, down by 21.6%.

Income tax for the reporting period was RMB1.468 billion, up by 185.8%, mainly due to adjustment of tax deductible policies on commission and brokerage expenses of insurance companies. The income tax expense booked for 2018 was adjusted in 2019, resulting in a low base in 2019, hence the sharp increase in the first half of 2020. Excluding the above-mentioned factor, income tax for the reporting period would have decreased by 14.7% from the same period

of 2019.

As a result, CPIC Life recorded a net profit of RMB10.147 billion, down by 17.2%.

II. CPIC Allianz Health

In the first half of 2020, CPIC Allianz Health vigorously adapted to the COVID-19 pandemic, leveraged its strengths as a specialised provider of health insurance and management services, and strived to provide high-quality service to Group customers via on-line and off-line channels, doing its share to promote the branding of « Responsible, Smart and Caring » of CPIC Service. In the meantime, despite the adverse impact of the pandemic, it continued to deepen the strategy of boosting development via increased intra-Group synergy, and reported rapid business growth. For the reporting period, it realised RMB4.022 billion in GWPs and health management fee income, a growth of 52.7%, and net profit of RMB23 million.

The company seized the window of opportunity of China’s health insurance market, continuously fostered core competitiveness of health insurance companies. In product development, it supported CPIC Life in its effort to improve the product line-up, drive business development and enhance customer experience, achieving a 57.6% growth of life insurance collaboration business in the first half of 2020; it focused on the transformation in personal lines business of property and casualty insurance, accelerated product upgrading, optimised service allocation, fuelling a 40.6% fast growth of the individual health insurance business of CPIC P/C in the reporting period. The health subsidiary continued to diversify its product offerings and explored product innovation of single illnesses. In respect of operational risk control, it continuously enhanced service quality in insurance application, claims handling, business renewals and customer service, in a bid to enhance customer experience. As for health management, the company stepped up deployment along the health-related value chain by means of partnerships and collaboration, boosted the integration of health management and health insurance so as to promote the development of health insurance business; it diversified the model of « products + services », put in place mechanisms of « insurance + health management » to support customer acquisition and up-sell and customer value generation.

Property and casualty insurance

In the first half of 2020, CPIC P/Cnote introduced effective steps to mitigate the impact of COVID- 19 pandemic, persisted in business quality control, achieved continued improvement in underwriting profitability and rapid premium growth. The capability of customer acquisition

and retention was enhanced in automobile insurance to promote the shift of growth drivers, with further improvement in the combined ratio; non-auto business maintained underwriting profitability, with rapid development of emerging business lines including agricultural and liability insurance.

Note: References to CPIC P/C in this report do not include Anxin Agricultural.

I. CPIC P/C

(I) Business analysis

During the reporting period, in the face of the pandemic, CPIC P/C focused on disease control and prevention on the one hand and the resumption of business on the other. It innovated products and services to help with the resumption of work and business to mitigate the impact of the pandemic. At the same time, CPIC P/C vigorously promoted the branding of CPIC Service, enhanced customer acquisition and retention and deepened risk management to pursue high quality development. It reported GWPs of RMB76.672 billion, up 12.3%, with a combined ratio of 98.3%, a decrease of 0.3pt from the same period of 2019. Of this, the loss ratio stood at 59.7%, up 0.5pt, and the expense ratio reached 38.6%, down by 0.8pt.

1. Analysis by lines of business

(1) Automobile insurance

In the first half of 2020, CPIC P/C proactively adapted to challenges such as the slow-down of new vehicle sales and the impact of COVID-19 pandemic, continued to enhance customer acquisition and retention, promoted on-line business operation in an all-around way, accelerated on-line and off-line integration, enhanced risk selection and achieved high-quality development of automobile insurance business.

For the reporting period, CPIC P/C reported GWPs of RMB47.962 billion from automobile business, a growth of 4.0%, with a combined ratio of 97.8%, down by 0.6pt from the first half of 2019. Of this, the loss ratio stood at 59.6%, down by 0.3pt and the expense ratio decreased by 0.3pt to 38.2%.

Going forward, the company will continue to ensure compliance in its business operation, pro- actively adapt to the comprehensive reform of automobile insurance, continuously enhance capabilities in customer acquisition and retention, step up on-line operation, deepen intraGroup synergy, enhance risk selection and pricing, intensify claims management and claims cost control in a bid to drive high-quality development of automobile business.

(2) Non-automobile insurance

For the reporting period, CPIC P/C made great efforts to mitigate the impact of COVID-19, supported China’s national strategies, the real economy and people’s welfare. It accelerated the

development of emerging business lines, continued to enhance business quality control, and recorded GWPs of RMB28.710 billion, up 29.8%, with a combined ratio of 99.7%, up 0.2pt, staying relatively stable. Of the major business lines, commercial property insurance and liability insurance reported further improvement in the combined ratio, with accident insurance recording great improvement in underwriting profitability. Emerging lines such as agricultural and liability insurance continued to grow rapidly.

Out of the above, agricultural insurance stepped up innovations in products, services and technology, and continuously improved services for farmers and rural areas. During the outbreak of COVID-19, it developed an innovative insurance solution insuring against the disruption to the supply of farm produce in large and medium-sized cities, which played an important role in ensuring food supply. In the first half of 2020, the business line delivered RMB5.721 billion in GWPs, up 50.7%.

Guarantee insurance focused on personal lines business and business of using guarantee insurance as a substitute for security deposit, continued to enhance the risk control systems and anti-fraud and credit risk management capabilities, with business risks under control.

Going forward, we will continue to accelerate the development of emerging lines, optimise business mix, step up product and service innovations, and push for an all-around upgrading of the customer-oriented operational capabilities. At the same time, we will strengthen business quality control, establish risk control systems for emerging business, increase digital empowerment, improve technology-driven risk management capabilities based on smart risk control and digital operational platforms, so as to drive healthy and rapid development of the business.

(3) Key financials of major business lines

Unit: RMB million

For 6 months ended 30 June

2. Top 10 regions for GWPs

CPIC P/C implemented differentiated regional development strategies as per requirements of the Group concerning the 3 Strategic Areas, while considering factors like market potential and local market competitive landscape.

(II) Financial analysis

Note: Investment income includes investment income and share of profit / (loss) in equity accounted investees on financial statements.

Investment income for the reporting period amounted to RMB3.432 billion, up by 40.7%, mainly attributable to higher gains from securities trading.

Other operating and administrative expenses amounted to RMB23.104 billion, up by 14.5%.

This, coupled with the impact of adjustment of policies on deductibles for corporate income tax in the first half of 2019, resulted in a net profit of RMB3.176 billion, a decrease of 5.2% from the same period of 2019.

II. Anxin Agricultural

In the first half of 2020, committed to the high-quality development objectives, Anxin Agricultural continued to cement its branding as a top-notch provider of agricultural insurance, underpinned by innovation and transformation, deepening of integration, empowerment of technology and compliance in business operation. It delivered RMB902 million in GWPs, up 13.5%. Of this, agricultural insurance reported GWPs of RMB598 million, a growth of 10.9%, with a combined ratio of 107.7%, up 15.1pt, due to the impact of a higher loss ratio. It reported net profit of RMB26 million, down by 50.0%.

III. CPIC HK

We conduct overseas business via CPIC HK, a wholly-owned subsidiary. As at 30 June 2020, its total assets stood at RMB1.343 billion, with net assets of RMB552 million. GWPs for the reporting period amounted to RMB277 million, with a combined ratio of 92.4%, and a net profit of RMB12 million.

Asset management

We persist in long-term, value and prudent investing and support the core insurance business with outstanding ALM capabilities. Within the SAA framework, we continued to extend the duration of assets, while seizing market opportunities and dynamically adjusting the procedures of TAA. As a result, we delivered solid investment performance, with Group AuM on steady increase.

I. Group AuM

As of the end of the first half of 2020, Group AuM totalled RMB2,306.305 billion, rising 12.9% from the end of 2019. Of this, Group in-house investment assets amounted to RMB1,552.866 billion, a growth of 9.4%, and third-party AuM RMB753.439billion, an increase of 20.8%, with a fee income of RMB1.059 billion, up 51.3% from the same period of 2019.

II. Group in-house investment assets

During the reporting period, in the face of the formidable challenges of COVID-19 and complex domestic and international environment, China demonstrated solidarity and pushed forward disease prevention and control and social and economic development in a coordinated manner. On the capital markets, interest rates fell sharply and then experienced a V-shaped rebound; the equity market rallied amid steady progress of pandemic control and resumption of business and work, with the ChiNext market rallying even more.

With the guidance of SAA, we conducted TAA with flexibility, seized market opportunities and achieved solid investment results. In fixed income investments, given expectations of lower interest rates, we seized tactical opportunities and increased allocation into T-bonds and local government bonds at a time of interest rate rebound to extend asset duration. We also increased investments in high-qualitynon-public financing instruments to the extent that the liquidity risk is under control. Given possible deterioration of defaults on the fixed income market, we maintained prudence in credit risk exposure.

(I) Consolidated investment portfolios

By investment category

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 credit assets backed securities by banking institutions, etc.
2. Other fixed income investments include restricted statutory deposits and policy loans, etc.
3. Other equity investments include unlisted equities, etc.
4. Loans and other investments include term deposits, cash and short-term time deposits, securities purchased under agreements to resell, policy loans, restricted statutory deposits, investments classified as loans and receivables, and investment properties, etc.

1. By investment category

As of the end of the reporting period, the share of debt securities was 39.5%, a drop of 3.1pt

from the end of 2019. Out of the above, treasury bonds, local government bonds and financial bonds issued by policy banks made up 16.4% of total investment assets, up 0.2pt from the end of 2019, with an average duration of 15.3 years, extended by 0.1 years versus the end of 2019. Moreover, 99.8% of enterprise bonds and financial bonds issued by non-policy banks had an issuer/debt rating of AA/A-1 or above. Out of these, the share of AAA reached 93.7%. We put in place and dynamically enhanced independent internal credit-rating teams and credit risk management systems covering the entire debt securities investment process, namely, before, during and after the investment. In the selection of new securities, we looked at the internal credit-rating of both the debt and debt issuer, identified the credit risk based on our internal credit-rating system and the input from in-house credit analysts, while considering other factors such as macroeconomic conditions, market environment and external credit-ratings in order to make a well-informed investment decision. At the same time, to assess the credit risk of the stock of bond holdings, we followed a uniform and standardised set of regulations and procedures, combining both regular and unscheduled follow-up tracking post the investment. Our corporate/enterprise bond holdings spread over a wide range of sectors with good diversification effect; the debt issuers all boasted sound financial strength, with the overall credit risk under control.

The share of equity investments stood at 15.5%, down by 0.2pt from the end of 2019. Of this, stocks and equity funds accounted for 8.3% of total investment assets, the same as that as of the end of 2019. On the back of market strategy research and in compliance of disciplined TAA processes, we pro-actively seized tactical opportunities on the equity market and realised solid investment performance with an average neutral allocation, supporting the core business of insurance.

As of the end of the reporting period, non-public financing instruments (NPFIs) totalled RMB349.478 billion, accounting for 22.5% of total investment assets, rising 1.6pt from the end of 2019. While ensuring full compliance with regulatory requirements and internal risk control policies, we persisted in prudent management as is inherently required of insurance companies, stayed highly selective about debt issuers and projects and strived to serve the needs of China’s real economy. The underlying projects spread across sectors like infrastructure, non-bank financial institutions, communications & transport and real estate, and were geographically concentrated in China’s prosperous areas such as Beijing, Shanghai, Guangdong and Jiangsu.

Overall, the credit risk of our NPFI holdings is in the comfort zone. All NPFIs had external credit- ratings, and of these, the share of AAA reached 94.7%, and that of AA+ and above 99.9%. 51.8%

of NPFIs were exempt from debt issuer external credit-ratings, with the rest secured with credit- enhancing measures such as guarantee or pledge of collateral.

Mix and distribution of yields of non-public financing instruments

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 credit assets backed securities by banking institutions, etc.

2. By investment purpose

By investment purpose, our in-house investment assets are mainly in three categories, namely, available-for-sale (AFS) financial assets, held-to-maturity (HTM) financial assets as well as loans and other investments. Of this, financial assets at fair value through profit or loss increased by 112.7% from the end of 2019, mainly because of increased allocation in unlisted equities. AFS financial assets increased by 2.8%, mainly as a result of increased investments in stocks and funds. HTM financial assets grew by 2.8% from the end of 2019, mainly due to increased investments in government bonds. Loan and other investments rose by 18.0%, largely attributable to increased allocation in debt investment plans and term deposits.

(II) Group consolidated investment income

For the reporting period, net investment income totalled RMB32.663 billion, up 10.0%. This stemmed mainly from increased interest income on fixed income investments. Annualised net investment yield reached 4.4%, down by 0.2pt compared with the same period of 2019.

Total investment income amounted to RMB38.429 billion, up 17.8%, mainly attributable to increase in realised gains and interest income on fixed income investments, with annualised total investment yield at 4.8%, the same as that for the first half of 2019.

Annualised growth rate of investments’ net asset value fell by 0.6pt to 5.3%, as a result of decrease in net of fair value changes of AFS assets.

Notes:

1. Other income includes interest income on cash and short-term time deposits, securities purchased under agreements to resell, share of profit / (loss) in equity accounted investees, and investment income through the step acquisition of a subsidiary, etc.
2. The impact of securities sold under agreements to repurchase was considered in the calculation of net investment yield. Average investment assets as the denominator in the calculation of net / total investment yield and growth rate of investments’ net asset value are computed based on the Modified Dietz method.
3. Growth rate of investments’ net asset value = total investment yield + net of fair value changes of AFS booked as other comprehensive income / (loss) / average investment assets.

1. Total investment yield on a consolidated basis

Note: The impact of securities sold under agreements to repurchase was not considered.

1. Third-partyAuM
   (I) CPIC AMC

In the first half of 2020, CPIC AMC adhered to prudent business development strategies, effectively adapted to the adverse impact of COVID-19, faithfully implemented regulatory requirements and supported economic development in an all-around way. As of the end of the reporting period, its third-party AuM amounted to RMB269.597 billion, an increase of 38.4% from the end of 2019.

During the reporting period, the company intensified its support for the fight against the pandemic. It contacted, at the earliest possible time, 7 owners of partnership projects, which had planned to invest a total of over RMB10 billion in Hubei Province, and given the extraordinary circumstances, opened a green channel to fast-track work process so that funds could be channelled to local firms at the forefront of the combat against the pandemic. At the same time, it seized opportunities arising from the national economy, looked closely for high- quality assets, and steadily promoted the development of alternative investment business through co-operation with target clients such as large State-owned Enterprises (SOEs) under the central and local governments or in major cities. For the first half of 2020, it registered a total of 10 alternative investment products involving an amount of RMB33.1 billion, maintaining its industry leadership.

Under the guidelines of « market-based,product-driven development », the company faithfully implemented new rules on asset management, and steadily promoted the business of asset management products. In the first half of 2020, based on a full review of its target client mix and insights into customer needs, it conducted effective communication with key institutional clients, particularly banks and insurance companies, and successfully marketed its strategies and products. As of the end of the reporting period, the subsidiary reported RMB208.6 billion in third-party asset management products and AuM combined, an increase of 62.8% from the end of 2019.

(II) Changjiang Pension

In the first half of 2020, Changjiang Pension coordinated pandemic control and prevention and business development, took a host of steps to support the resumption of business and work, continued to deepen its presence in the 3 pillars of old-age provision, pro-actively increased investments in human resources and technology, strived to provide « Responsible, Smart and Caring » service, and achieved high-quality development. As at 30 June 2020, its third-party assets under trustee management amounted to RMB182.049 billion, up 22.6% from the end of 2019; third-party assets under investment management reached RMB442.217 billion, an increase of 11.9%.

In the first pillar, it continued with steady management of the social security pension fund and was entrusted multiple times with additional funds, with the investment performance leading among comparable portfolios. As for the second pillar, the company initiated the trustee and investment management of 26 occupational annuity schemes, with industry-leading performance so far in the year; it continued to deepen its presence in enterprise annuity business, and was selected as manager of a number of large enterprise annuity plans in public tendering; it focused on the marketing of the « Shengshi Ruyi » collective group retirement product to serve the needs of hybrid ownership and pay structure reform of SOEs. In the third pillar, Changjiang Pension pro-actively adapted to the changing market environment, and continued to deliver solid investment performance for the tax-deferred pension schemes; in the light of regulatory requirements and new rules on asset management, it focused on the development of long-duration individual retirement plans based on net asset value, which cumulatively served nearly 20 million individual customers; it dynamically improved the product line-up for institutional clients; in the first half of 2020, the company registered RMB20.8 billion in debt investment plans, ranking the 3rd in the industry, with firm steps to promote innovation and transformation of the alternative business.

Analysis of specific items

I. Items concerning fair value accounting

Note: Impact on profits of change of fair value for AFS financial assets refers to charges for impairment losses.

II. Solvency

We calculate and disclose our core capital, actual capital, minimum required capital and solvency margin ratio in accordance with requirements by CBIRC. The solvency margin ratio of domestic insurance companies in the PRC shall meet certain prescribed levels as stipulated by CBIRC.

Anxin Agricultural

Profit for the period, profit distribution to the

Core capital1,7251,684 shareholders, and change of fair value of investment assets

Please refer to the summaries of solvency reports published on the websites of SSE (www.sse.com.cn), SEHK (www.hkexnews.hk), LSE (www.londonstockechange.com) and the Company (www.cpic.com.cn) for more information about the solvency of CPIC Group and its main insurance subsidiaries.

III. Sensitivity analysis of price risk

The following table shows the sensitivity analysis of price risk, i.e. the pre-tax impactnote 1 of fair value changes of all equity assetsnote 2 in the case of a 10% change in stock prices as at the end of the reporting period on our profit before tax and shareholders’ equity (assuming the fair value of equity assetsnote 2 moves in proportion to stock prices), other variables being equal.

Notes:

1. After policyholder participation.
2. Equity assets do not include bond funds, money market funds, wealth management products, preferred shares and other equity investments, etc.

IV. Insurance contract liabilities

Insurance contract liabilities include unearned premium reserves, claim reserves, and long-term life insurance contract liabilities. All three are applicable in life insurance business, while only the first two are applicable in property and casualty insurance.

As at 30 June 2020, insurance contract liabilities of CPIC Life amounted to RMB1,071.691 billion, representing an increase of 10.2% from the end of 2019. Those of CPIC P/C amounted to RMB107.069 billion, an increase of 14.3%. The rise was mainly caused by business expansion and accumulation of insurance liabilities.

We also test the adequacy of reserves at the balance sheet date. If the testing shows that reserves set aside for each type of insurance contracts are sufficient, there is no need for additional provisions; if not, then additional reserves are required.

V. Investment contract liabilities

Investment contract liabilities mainly cover the non-insurance portion of insurance contracts, and those contracts which failed to pass the testing of significant insurance risk.

VI. Reinsurance business

In the first half of 2020, premiums ceded to reinsurers are shown below:

In the first half of 2020, premiums from reinsurance assumed are set out below:

As at the end of the first half of 2020, assets under reinsurance are set out below:

We determine retained insured amounts and reinsurance ratio according to insurance regulations and our business development needs. To lower the concentration risk of reinsurance, we also entered into reinsurance agreements with various leading international reinsurance companies. The criteria for the selection of reinsurance companies include their financial strength, service level, insurance clauses, claims settlement efficiency and price. In general, only domestic reinsurance companies with proven records or international reinsurance

companies of ratings of A- or above would qualify as our reinsurance partners. Besides China Reinsurance (Group) Corporation and its subsidiaries, i.e., China Life Reinsurance Company Ltd., and China Property & Casualty Reinsurance Company Ltd., our reinsurance partners also include international giants like Swiss Reinsurance Company (瑞 士 再 保 險 公 司) and Munich Reinsurance Company (慕尼黑再保險公司).

VII. Main subsidiaries & associates and equity participation

Unit: RMB million

1. Figures for companies in the table are on an unconsolidated basis. For other information pertaining to the Company’s main subsidiaries, associates or invested entities, please refer to Review and analysis of operating results of this report, and Scope of Consolidation, Interests in Associates, Investment in Joint Ventures as Notes to the Interim Condensed Consolidated Financial Information.
2. Figures for Group shareholding include direct and indirect shareholdings.

VIII. Seizure, attachment, and freeze of major assets or their pledge as collateral

The Company’s assets are mainly financial assets. The repurchase of bonds forms part of the Company’s day-to-day securities investment activities, and as of the end of the reporting period, no abnormality was detected.

IX. Gearing ratio

Note: Gearing ratio = ( total liabilities + non-controlling interests) / total assets.

Outlook

I. Market environment and business plan

China’s development is facing increasing risks and challenges. A new development pattern of « dual circulation » is taking shape in China, with domestic circulation at the core and supplemented by international circulation. From a long-term perspective, rising per capita income, population ageing, urbanisation, economic restructuring, shift of government roles and the cut of tax and administrative fees will continue to drive sustainable development of China’s insurance industry. The COVID-19 pandemic as a major public health crisis promises to further raise public awareness of and stimulate demand for insurance and health care service, and China remains one of the most dynamic and fastest-growing insurance markets of the world. Traditional domestic insurance companies are accelerating transformation; foreign players are increasing presence in China; Internet insurance firms and specialised insurance intermediaries are thriving. All of them will stimulate dynamic development of the insurance market.

Going forward, with a vision of « achieving leadership in healthy and stable development of the insurance industry », and the targets of « being the best in customer experience, business mix and risk control capabilities », the Company will deepen Transformation 2.0 in the 5 keys areas of talent, digitalisation, intra-Group synergy, governance and deployment, introduce long-term incentive systems, promote marketisation of technological innovation, establish a comprehensive platform of health-related business, enhance the professionalism of investment management, and achieve the modernisation of corporate governance, so as to foster core competitiveness for the future. Meanwhile, it will also promote the branding of « CPIC Service », vigorously serve national strategies, support the real economy, improve the welfare of the Chinese people, ensure the prevention of major risks, and achieve more success in high-quality development.

II. Major risks and mitigating measures

Firstly, in terms of macroeconomic environment, the global spread of COVID-19, escalation of trade frictions and rising anti-globalisation sentiment severely disrupted the world industry chain and business models, with increasing uncertainties in short-term economic growth. At the same time, normalisation of resumption of business and work will run in tandem with the control and prevention of the pandemic. As China’s economic growth slows down, rising credit defaults, the pressure on long-termrisk-free interest rates and deterioration of liquidity risk may materially impact insurance and asset management business.

Secondly, in terms of industry development, China’s insurance market is also slowing down, coupled with a shift of the development model, and accumulation of risks over the years which have begun to surface. The regulator will continue to intensify its efforts to mitigate risks, tackle irregularities and tighten the overall regulation. New actuarial rules on life/health insurance, amendments to regulations on health insurance, and the launch of comprehensive reform of automobile insurance will compel the industry to enhance capacity-building and professionalism. The COVID-19 pandemic will stimulate digital transformation of the industry, reshape its business model, posing challenges to traditional insurance companies, which rely more on off-line operation. Insurance player will face more intense competitions as a result of increased opening-up of the industry and technological development.

Thirdly, in respect of its business operation, the Company is facing a relatively high risk of large claims arising from severe natural catastrophes and accidents caused by human error, with emerging risks starting to have potential impact on the stability of its business performance. Its GDR issuance and the execution of internationalisation strategy will require full compliance in domestic and overseas jurisdictions and even more professionalism in corporate governance and investment capabilities.

To cope with these risks, we will persist in compliance in business operation, stay focused on the core business of insurance and press ahead with Transformation 2.0. In particular, in light of the Transformation objectives, we will step up research into and analysis of macroeconomic trends, accelerate digital empowerment to improve on-line capabilities, dynamically enhance capabilities in risk assessment and product pricing; improve ALM and counter-party credit risk management in an all-around way, strengthen investment research capabilities and the matching of assets and liabilities; continuously optimise mechanisms for risk identification, assessment, early warning and mitigation, as well as programmes of cumulative risk exposure control and reinsurance so as to forestall major risks and ensure stable business operation and healthy solvency levels.

Change in accounting estimates

When measuring the insurance contract reserves, the Group determines actuarial assumptions such as discount rate, mortality and morbidity, surrender rates, expense assumptions and policy dividend assumptions based on information currently available as at the balance sheet date.

As at 30 June 2020, the Group used information currently available to determine the above assumptions. Mainly due to change of the benchmark yield curve of discount rate for life and long-term health insurance reserves, life and long-term health insurance reserves after reinsurance increased by approximately RMB4,236 million as at 30 June 2020 and profit before tax decreased by approximately RMB4,236 million for the 6 months ended 30 June 2020.

Embedded value

Summary of Embedded Value and Value of Half Year’s Sales

The table below shows the Group Embedded Value of CPIC Group as at 30 June 2020, and the value of half year’s sales of CPIC Life in the 6 months to 30 June 2020 at a risk discount rate of 11%.

Notes:

1. Figures may not be additive due to rounding.
2. Results in column « 30 June 2019 » are those reported in the 2019 interim report.

3. Results in column « 31 December 2019 » are those reported in the 2019 annual report.

The Group Adjusted Net Worth represents the shareholder net equity of the Company based on the China Accounting Standards, inclusive of adjustments of the value of certain assets to market value and adjusted for the relevant differences, such as difference between China Accounting Standards reserves and policy liabilities valued under « Appraisal of Embedded Value » standard published by the CAA. It should be noted that the Group Adjusted Net Worth incorporates the shareholder net equity of the Company as a whole (including CPIC Life and other operations of the Company), and the value of in force business and the value of half year’s sales are of CPIC Life only. The Group Embedded Value also does not include the value of in force business that is attributable to minority shareholders of CPIC Life.

New Business Volumes and Value of Half Year’s Sales

The table below shows the volume of new business sold in terms of first year annual premium and value of half year’s sales of CPIC Life after cost of required capital held at a risk discount rate of 11% for year 2020.

Implementation of profit distribution during the reporting period

The Company distributed a cash dividend of RMB1.20 per share (tax included) in accordance with the « Resolution on Profit Distribution Plan for the Year of 2019 » approved at the 2019 Annual General Meeting. The implementation of this distribution plan has been completed in June 2020.

Profit distribution

The Company did not propose to distribute any profit, nor did it transfer any capital reserves to share capital for the first half of 2020.

By Order of the Board

China Pacific Insurance (Group) Co., Ltd.

KONG Qingwei

Chairman

Hong Kong, 23 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 Yhi, 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 the approval of China Banking and Insurance Regulatory Commission.

CHINA PACIFIC INSURANCE (GROUP) CO., LTD.

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 30 June 2020

(All amounts expressed in RMB million unless otherwise specified)

The accompanying notes form an integral part of these consolidated financial statements.

CHINA PACIFIC INSURANCE (GROUP) CO., LTD.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2020

(All amounts expressed in RMB million unless otherwise specified)

The accompanying notes form an integral part of these consolidated financial statements.

CHINA PACIFIC INSURANCE (GROUP) CO., LTD.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET 30 June 2020

(All amounts expressed in RMB million unless otherwise specified)

The accompanying notes form an integral part of these consolidated financial statements.

CHINA PACIFIC INSURANCE (GROUP) CO., LTD.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2020

(All amounts expressed in RMB million unless otherwise specified)

1 Dividend declared represents the final dividend on ordinary shares declared for the year ended 31 December 2019, amounting to RMB 10,874 million (RMB 1.20 per share).

The accompanying notes form an integral part of these consolidated financial statements.

CHINA PACIFIC INSURANCE (GROUP) CO., LTD.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued) For the six months ended 30 June 2020

(All amounts expressed in RMB million unless otherwise specified)

1 Dividend declared represents the final dividend on ordinary shares declared for the year ended 31 December 2018, amounting to RMB 9,062 million (RMB 1.00 per share).

The accompanying notes form an integral part of these consolidated financial statements.

7