Actively Integrating into the Global Capital Market to Embrace ESG Development Philosophies
HONG KONG, June 22, 2021 /PRNewswire/ — China Pacific Insurance (Group) Co., Ltd. (the "CPIC" or the "Company"; Stock code: 2601.HK, 601601.SH, CPIC.LSE) celebrates its first anniversary of listing on the London Stock Exchange (the "LSE").
On 22 June 2020, CPIC successfully completed the issuance of Global Depositary Receipts (GDR) and officially listed on the LSE, becoming the first China’s insurance company simultaneously listed in Shanghai, Hong Kong and London, as well as the first insurance company in China to issue GDR. This was the first time that Chinese accounting standards have been used under the Shanghai-London Stock Connect mechanism. It is also the first time the Cornerstone investor mechanism was used for GDR issuance. At the time of listing, it was the largest GDR issuance in UK since 2015 and the largest London IPO in 2020.
Fruitful results achieved on the first anniversary of the listing, continuing to benefit the Company
As one of the earliest stock exchanges established in the world, LSE is also the largest stock exchange in Europe and the seventh largest in the world. As an internationally established stock exchange, LSE provides an active financing environment with distinct advantages in financing cost, as well as an excellent way for international investors to enter the European capital market. The GDR price has been rising since the completion of the issuance, setting a new record of 11.90% in a single day on 25 February 2021. As of 17 June 2021 with a closing price of US$27 per share, GDR’s share price has increased by over 50% in the year since its listing.
By introducing the ESG pioneer, Swiss Re Group (the "Swiss Re") as a cornerstone investor, CPIC continued to optimize its shareholding structure, improve the governance mechanism and accelerate its ESG strategic layout, so as to deeply integrate the philosophy of green and sustainable development with insurance operations. At present, Swiss Re has dispatched senior executives to the board of directors of the Group. By performing their duties, they will continue to play a role in the corporate governance mechanism, which will help strengthen the Group’s professional operation capabilities in its core insurance business. In addition, through listing in Shanghai, Hong Kong and London simultaneously, the company has greatly enhanced its international influence and connected to the mature European markets. Under the background of China’s continuous efforts to deepen its opening-up, it further integrated into the global financial environment, and shared the development benefits of China’s insurance industry with high-quality capital from all over the world.
In the face of unfavorable factors including the recurring global pandemic, fluctuating market environment and the uncertain international situation, the Group adheres to long-termism and focuses on the core business, thereby delivering solid business results and sustaining increase in overall strength. In 2020, the Group’s operating income amounted to RMB422.182 billion, of which insurance business income amounted to RMB362.064 billion, representing a year-on-year increase of 4.2%; operating profit amounted to RMB31.14 billion, representing a year-on-year increase of 11.7%, and the net profit attributable to the parent company recorded RMB24.584 billion. As of 31 December 2020, the total assets of the Group amounted to RMB1,771.004 billion, representing an increase of 15.9% over the same period last year, with basic earnings per share of RMB2.63. As of the end of 2020, the number of CPIC customers reached 147.473 million, representing an increase of 8.915 million compared with that of the end of last year.
Actively embrace ESG development philosophies and adhere to long-term value
Since the listing on the LSE for one year, CPIC has adhered to its responsibility to society, customers and shareholders and embraced the ESG philosophies of sustainable development. In March this year, CPIC and Swiss Re jointly held the ESG summit, announcing the integration of ESG philosophies into its daily operation. In April, CPIC once again co-hosted an ESG-themed summit with the Shanghai United Assets and Equity Exchange (SUAEE) and UBS, focusing on carbon neutral to build a new model of insurance industry that supports green and low-carbon development. Through benchmarking global and domestic excellent practices, CPIC continues to optimize the overall working logic of ESG. The top-level design of ESG field was successfully completed at the Board Meeting of CPIC in March earlier. CPIC will continue to strengthen the development and innovation of sustainable insurance products on the liability end, while further promoting green investment on the asset end, thereby integrating ESG philosophies into company operations in an all-around way.
In order to actively respond to the national strategic policies, CPIC has made great efforts to develop green insurance to promote green and low-carbon development. As of the end of 2020, CPIC cumulatively provided environmental protection liability insurance to 4,360 companies in China, with SA of over RMB7.9 billion. CPIC also fully facilitated the development of new energy vehicles to support green travel, providing risk protection for 742,000 new energy vehicles in 2020. In addition, for environmental governance, green ships, advanced manufacturing, new infrastructure and many other fields, CPIC tailor-made exclusive insurance services for the sustainable development of the ecological environment.
In terms of green investment, CPIC has been exploring the use of long-term capital advantages of insurance, combined with the unique protection functions and risk management of the insurance industry, to promote the cultivation and development of green industry. CPIC actively participated in green investment projects advocated by national policies in the fields of new energy, green technology, environmental protection, pollution prevention, green finance through the form of debt investment plans, equity investment plans and industrial funds, to provide financial support for the comprehensive green transformation of economic and social development. As of the end of 2020, CPIC invested over RMB54 billion in renewable energy, water conservation and environmental protection.
Mr. Kong Qingwei, chairman of CPIC, said: "The successful issuance of GDR by CPIC on LSE marked an important milestone for the move of China insurance industry towards the international capital market, which opened a new chapter in the international development of CPIC. In an era of constant changes and uncertainties, CPIC will continue to adhere to the long-term and value-oriented strategy, remain customer-oriented, and pursue high quality development through transformation and reform. Leveraging the platform advantages of listing in the three markets, the Group will further strengthen its overseas market layout, and actively explore new growth and diversified business deployment on the liability end, thereby driving the sustainable and steady growth of business and enhancing shareholder returns in the long-run."
About China Pacific Insurance (Group) Co., Ltd
China Pacific Insurance (Group) Co. Ltd. (hereinafter referred to as "CPIC", or the "Company"; Stock Code: 2601.HK, 601601.SH, CPIC.LSE) is an insurance holding company incorporated on the basis of China Pacific Insurance Company, which was established on May 13, 1991. It is a leading insurance group headquartered in Shanghai, which is the first insurance group simultaneously listed on Shanghai, Hong Kong and London Stock Exchanges. CPIC is a leading comprehensive insurance group; the Company provides a broad range of risk solutions, financial planning and asset management services to over 100 million customers via its nationwide network of distribution and diversified services platforms.
This press release is distributed by Wonderful Sky Financial Group for About China Pacific Insurance (Group) Co., Ltd.