2023 Annual Report

中国太平洋保险（集团）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)

2023 Annual Report

(Trading Symbol：CPIC)

Contents

Important information...................................................................................................................2

Corporate information and definitions.........................................................................................4

Business overview..........................................................................................................................7

Chairman's statement.................................................................................................................12

Operating results.........................................................................................................................18

Highlights of accounting and operation data..............................................................................18

Review and analysis of operating results....................................................................................20

Embedded value..........................................................................................................................67

Corporate governance.................................................................................................................76

Report of the Board of Directors and significant events.............................................................76

Changes in the share capital and shareholders' profile..............................................................91

Directors, supervisors, senior management and employees......................................................95

Corporate governance...............................................................................................................110

Documents available for inspection..........................................................................................158

Financial Reports

Cautionary Statements:

Certain statements included in this report, including future plans and development strategies, are not historical facts and are "forward-looking". Forward-looking statements are based upon various assumptions, including, without limitation, the management's examination of historical operating trends, data contained in its records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and which are beyond its control, and the Company may not achieve or accomplish these expectations, beliefs or projections. The occurrence or non-occurrence of an assumption could cause the Company's actual financial condition and results to differ from or fail to meet expectations expressed or implied by, such forward-looking statements. None of the Company or its management can guarantee or give any assurance to investors regarding the future accuracy of the opinions set forth herein or as to the actual occurrence of any predicted developments. Investors and other related parties are advised to be mindful of the risk, and be aware of the difference between the Company's plans or projections and its commitments.

Such forward-looking statements speak only as at the date on which they are made and are not intended to give any assurances as to future results. You are advised to exercise caution and should not rely on the forward-looking statements in this report.

Important information

I. The board of directors, the board of supervisors, the directors, the supervisors and the senior management of the Company warrant that the contents of this annual report are true, accurate and complete and that there is no false representation, misleading statement or material omission in this report; and they severally and jointly accept responsibility for the contents of this report.

II. The Company's 2023 Annual Report was considered and approved at the 2nd session of the 10th board of directors on 28 March 2024, which 12 directors were required to attend and all of them attended in person. For the purposes of the United Kingdom's Financial Conduct Authority's Disclosure Guidance and Transparency Rule 4.1.12(3), each of the directors of the Company named in the section "Directors, supervisors and senior management" of this report, to the best of his or her knowledge, confirm that: (1) the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and (2) the annual report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

III. Ernst & Young Hua Ming LLP audited the 2023 financial statements of the Company and issued the standard unqualified auditor's report.

IV. Mr. FU Fan (person in charge of the Company), Mr. ZHANG Yuanhan (principal in charge of accounting and chief actuary) and Ms. XU Zhen (head of the Accounting Department) warrant the truthfulness, accuracy and completeness of the financial statements contained in this annual report.

V. The profit distribution for 2023 is made based on the audited financial statements of the parent company. The Company intends to declare an annual cash dividend of RMB1.02 pershare (tax included). Based on the total share capital of 9,620,341,455 shares, the amount of the dividend in aggregate will be RMB9,812,748,284.10. The remaining retained profits will be carried forward to 2024. No capital reserve was transferred to the share capital during the year. The above-said profit distribution plan is to be approved at the shareholders' general meeting.

VI. The Company was exposed to various risks, including insurance risk, market risk, credit risk, liquidity risk, operational risk, reputational risk, strategy risk, capital management risk and other Group specific risks. For more detail, please refer to the section "Corporate governance" of this report.

VII. There were no funds misappropriated by major shareholders or related parties of the Company.

VIII. The Company did not provide external guarantees in violation of the prescribed decision-making procedures.

CHINA PACIFIC INSURANCE (GROUP) CO., LTD.

BOARD OF DIRECTORS

Corporate information and definitions

Legal Name in Chinese:中国太平洋保险（集团）股份有限公司 ("中国太保")

Legal Name in English:

CHINA PACIFIC INSURANCE (GROUP) CO., LTD. ("CPIC")

Legal Representative: FU Fan

Board Secretary: SU Shaojun

Securities Representative: CHEN Haozhi

Contact for Shareholder Inquiries: Investor Relations Dept. of the Company Tel: +86-21-58767282

Fax: +86-21-68870791 Email:[email protected]

Address: 1 South Zhongshan Road, Huangpu, Shanghai, PR China Registered Office: 1 South Zhongshan Road, Huangpu, Shanghai, PR China Office Address: 1 South Zhongshan Road, Huangpu, Shanghai, PR China Postal Code: 200010

Website:http://www.cpic.com.cnEmail:[email protected]

Selected Newspapers for Disclosure (A Share):

China Securities, Shanghai Securities and Securities Times Announcements for A Share Published at:http://www.sse.com.cnAnnouncements for H Share Published at:http://www.hkexnews.hkAnnouncements for GDR Published at:http://www.londonstockexchange.com

Report Available at: Investor Relations Dept. of the Company

Stock Exchange for A Share Listing: The Shanghai Stock Exchange Stock Name for A Share:中国太保

Stock Code for A Share: 601601

Stock Exchange for H Share Listing: The Stock Exchange of Hong Kong LimitedStock Name for H Share:中國太保

Stock Code for H Share: 02601

Stock Exchange for GDR Listing: London Stock Exchange Stock Name for GDR: China Pacific Insurance (Group) Co., Ltd. Trading symbol for GDR: CPIC

Accountant (A Share): Ernst & Young Hua Ming LLP

Office address: Level 17, Ernst & Young Tower, Oriental Plaza, No.1 East Changan Ave. Dongcheng District, Beijing, PR China

Signing Certified Public Accountants: GUO Hangxiang, WANG Ziqing

Accountant (H Share): Ernst & Young Hua Ming LLP (Recognised PIE Auditor)

Office address: Level 17, Ernst & Young Tower, Oriental Plaza, No.1 East Changan Ave. Dongcheng District, Beijing, PR China

Accountant (GDR): Ernst & Young Hua Ming LLP

Office address: Level 17, Ernst & Young Tower, Oriental Plaza, No.1 East Changan Ave. Dongcheng District, Beijing, PR China

Signing Certified Public Accountants: GUO Hangxiang

Definitions

In this report, unless the context otherwise requires, the following terms shall have the meanings set out below:

Governance

Business overview

Key indicators

Unit: RMB million

Notes:

1. The Company adopted the new insurance standard and the new financial instruments standards from 1 January 2023. Comparative figures of the prior period are restated according to the requirements of the new standards. According to requirements of the new insurance standard, the Company adjusted comparative figures of the prior period which related to insurance business. According to requirements of new financial instruments standards, the Company did not adjust comparative figures of the prior period which related to investment business.

• 2. Consolidated data of CPIC P/C, CPIC Anxin Agricultural and CPIC HK.

• 3. Figures for comparative periods were restated.

• 4. Subject to SGM approval.

Core Competitiveness

As a leading comprehensive insurance group in China, we are committed to value growth, firmly pursue development via transformation, stay focused on the core business of insurance, and strive for continued progress in high-quality development. We have achieved steady growth of overall business results, steady improvement of market standings, enhanced control of major risks, sustained improvement of comprehensive strength, with increased contribution to China's social and economic development and people's well-being.

Focus

We stay focused on insurance. As a composite insurer with multiple business segments along the insurance value chain, we continuously enhance capabilities in professional insurance business operation so as to better contribute to China's real economy and people's pursuit of a better life. Our life/health insurance business, committed to improving people's well-being, deepens integration of insurance products and services. It puts customers' need first and strives to improve the supply of products and services centring on health protection, retirement provision and wealth management; contributes to China's multi-tiered social security system through retirement finance and elderly care; presses ahead with channel diversification, enhances professional capacity-building of the agency force, and improves capabilities for services across the entire life cycle of customers. The property and casualty insurance business is committed to serve the New Development Patteand improve the risk reduction system. Automobile insurance business steps up customer resources management (CRM), optimises the mode of risk management of new energy vehicles; accelerates innovation in technology insurance, green insurance, improves insurance supply in rural areas and for agriculture to facilitate China's Rural Invigoration Initiative. As for investment, we adhere to prudent, long-term and responsible investing, explore opportunities in forward-looking, emerging industries in the context of China's key national strategies and development regions, strengthen co-ordination of assets and liabilities, and contribute to steady growth of the Company.

Prudence

We are committed to prudent business operation, upholding the philosophy of "increasing protection, reducing and mitigating risks and doing insurance for people". We continuously improve our corporate governance structure with legal entities shouldering the primaryresponsibility. We are proud of modernised corporate governance mechanisms featuring good coordination and checks and balances, with the management, the Board of Directors, the Board of Supervisors and the Shareholders' General Meeting each performing their duties, in accordance with rules and policies which clearly define their respective roles and responsibilities. That helps the Company to execute strategies and conduct business in an orderly manner. We adhere to the business philosophy of long-term, sustainable development, with a performance evaluation system balancing short term, and long term, development and risk management. We put in place a risk management system covering risk governance, risk strategies and management of major risk categories, continue to improve risk management rules and policies, enhance digitalisation in risk control, foster an enabling corporate culture integrating risk management and internal control, and continuously enhance capabilities for prudent business operation, compliance and risk management, so as to ensure sustainable and healthy development of the Company.

Innovation

We persist in customer orientation and forge ahead with transformation and innovation in a bid to foster new drivers for high-quality development. The health care strategy centres on the "Healthy China Initiative" and national retirement finance strategies, provides differentiated, personalised product/service solutions in response to changing customer needs and behaviours, and continuously enhances the supply of health services and elderly care; promotes specialty service programmes such as CPIC Home and CPIC Family Doctors via collaboration with partners to advance the core business of insurance. The strategy in integrated regional development departs from local development endowments, consolidates comprehensive advantages in the Yangtse River Delta Region, innovates cross-border business in the Greater Bay Area, promotes head-office economy in the Area of Beijing, Tianjin and Hebei, and leverages diversified deployment in circle of Chengdu and Chongqing; deepens the synergy of life and P/C insurance business, the coordination of assets and liabilities, and the integration of products and services. The digital empowerment strategy aims to facilitate high-quality development, expands the ecosystem of digital and intelligent services, establishes and improves Group-wise data governance system, promotes the development of hallmark applications such as Digital Employees, an application driven by large-scaled modelling; strengthens integrated digital and smart risk control, accelerates investment research capabilities for digital and intelligent decision-making, enhances digital and smart operational management, steps up empowerment by digital and smart CRM, advances digital finance, in a bid to accelerate the shift of growth drivers.

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China Pacific Insurance (Group) Co. Ltd. published this content on 28 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2024 17:52:36 UTC.