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2026 Interim Results Announcement PICC Group 1339.HKPICC Group 601319.SH PICC P&C 2328.HK
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Disclaimer This presentation has been prepared by the People’s Insurance Company (Group) of China Limited (the “Company”). No representation or warranty, expressed or implied, is given as to the fairness, accuracy, completeness or correctness of any information contained herein and they should not be relied upon as such. The Company shall have no liability whatsoever (in negligence or otherwise) for any loss howsoever arising from this presentation or its contents or otherwise arising in connection with this presentation. The information contained herein may be updated, refined, revised, verified or modified, and may be subject to material changes. This presentation is based on economic, regulatory, market and other conditions as they exist on the date hereof. You should understand that future developments may potentially affect the information contained in this presentation and that the Company shall have no obligation to update, revise or reaffirm the information set forth in this presentation. The information contained herein includes certain forward-looking statements or statements which are potentially of a forward-looking nature. Such statements typically contain the words “will”, “expects”, “anticipates”, and similar expressions. Forward-looking statements are related to future events and are subject to future happenings, and hence involving risks and uncertainties. Given these uncertainties, such forward-looking statements should not be relied upon. The Company shall have no liability to update forward-looking statements or revise the forward-looking statements to reflect future events or developments. This presentation and the information contained herein are for your reference only and may not be copied or distributed to any other parties, in whole or in part. Note 1: The Group’s A-share report is prepared in accordance with International Financial Reporting Standards (“IFRS”), and the H-share results announcement is prepared in accordance with International Financial Reporting Standards (“IFRS”). The GAAP differences are stated in the attached schedule. The figures presented in this report are data under IFRS. Note 2: While in transition of accounting standards, for easier comparison, unless otherwise noted, the figures presented in this report including Insurance Revenue, Net Profit, Net Asset. Claim Ratio, Expense Ratio, Combined Ratio, Underwriting Profit, Investment Yield are stated under New Accounting Stan dard. The rest of the figures are stated under Old Accounting Standard. Note 3: Actuarial assumptions of PICC Life and PICC Health were adjusted, Investment Yield of PICC Life was 4.0%, Investment Yield of PICC Health was 3.5%; Risk Discount Rate was 8.5% for traditional insurance, and 7.5% for participating insurance and universal life insurance. Note 4: All point-in-time data such as total assets and net assets are compared with figures at the beginning of the year. Note 5: Due to rounding, growth rates and year-on-year (YoY) figures may differ slightly. Note 6: Unless otherwise specified, all monetary units in this report are in Renminbi (RMB).
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New Accounting Standards: The Group has implemented the Accounting Standards for Business Enterprises No.25 – Insurance Contracts (Cai Kuai [2020] No.20), the Accounting Standards for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments (Cai Kuai [2017] No.7), Accounting Standards for Business Enterprises No.23 – Transfer of Financial Assets (Cai Kuai [2017] No. 8), Accounting Standards for Business Enterprises No.24 – Hedge Accounting (Cai Kuai [2017] No. 9) and Accounting Standards for Business Enterprises No.37 – Presentation of Financial Instruments (Cai Kuai [2017] No.14). Old Accounting Standards: The accounting standards disclosed in the Group’s 2022 Annual Report adopted the Accounting Standards for Business Enterprises No.25 — Original Insurance Contracts (Cai Kuai [2006] No. 3), Accounting Standards for Business Enterprises No. 26 Reinsurance Contracts (Cai Kuai [2006] No. 3); Accounting Standards for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments (Cai Kuai [2006] No. 3); Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets (Cai Kuai [2006] No. 3); Accounting Standards for Business Enterprises No. 24 – Hedge Accounting (Cai Kuai [2006] No. 3); Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments (Cai Kuai [2014] No. 23); Regulations on Accounting Treatment of Insurance Contracts (Cai Kuai [2009] No. 15). Combined Ratio = (insurance service expenses+ (amortized ceded premiums - recovered insurance services expenses) + (finance expenses from insurance contracts issued – financial income from reinsurance contracts held) + Changes in insurance premium reserves) ÷insurance revenue Insurance Service Performance = insurance revenue - insurance services expenses + recovered insurance services expenses - amortized ceded premiums – withdraw of premium reserves Investment Performance = interest income + investment income + Gains and losses on fair value changes in assets - (finance expenses from insurance contracts issued – financial income from reinsurance contracts held) - interest expenses - credit impairment losses Total Investment Yield = (total investment income – interest expenses on securities sold under agreements to repurchase)÷(average total investment assets as of the beginning and the end of the period – average amount of financial assets sold under agreement to repurchase as of the beginning and the end of the period – average change in the fair value of other debt investments as of the beginning and end of the period) Terminology
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Segment Overview2 Key Work Focus for the second half of the year3 Results Overview
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Results Overview Net Assets ROE Net Profit Interim Cash Dividend per Share (Incl. tax) Insurance Revenue bn RMB 286.9 +2.4 % 280.3 bn RMB 50.8 +40.6 % 36.2 bn RMB 20260630 20251231 462.7 11.4% +1.9 pp RMB 0.11 0.075 +46.7 % 420.5 +10.1 % Total Investment Yield 3.7% +1.1 pp 2025H1 2026H1 2025H1 2026H1 2025H1 2026H1 2025H1 2026H1 2025H1 2026H1 9.5% 2.6% 5
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Enhanced Insurance Business Quality and Operational Efficiency1.1 6 Insurance Services Performance bn RMB 2025H1 2026H1 30.2 +3.8 % 3.3 ppAuto insurance renewal rate 76.9% P&C Business 1.4 ppIndividual non-auto premiums contribution 9.7% Life & Health Business Regular premiums income 89.2bn RMB 2.5 % Regular premiums contribution 68.3% 1.9 pp Premiums income from Business Synergy NBV Margin 1.1 pp 18.2%Individual non-auto premiums income 31.5bn RMB bn RMB 2025H1 2026H1 17.2 +7.1 % 16.1 29.1 Note: NBV margin is on a comparable basis.Note: Unless otherwise specified, “P&C Business” in this report refers to PICC Property and Casualty Company Limited ("PICC P&C") and does not include PICC Hong Kong. .
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Net Investment Income Significantly Improved Investment Performance1.2 7 Investment Performance 亿元 2025H1 2026H1 373 +113.7% 2026H1 Total Insurance Investment Assets 20251231 20260630 1,997.7 +5.1 % 1,901.6 bn RMB 175 Total Investment Income 2025H1 +62.7 % 66.3 40.8 2025H1 2026H1 30.529.6 bn RMB Equity Investment Income 2025H1 2026H1 +226.6 % 40.0 12.3 bn RMB bn RMB bn RMB 2025H1 2026H1 37.3 +113.7% 17.5 Note: The above figures represent equity investments measured at fair value, excluding long-term equity investments.
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Contractual Service Margin 9.5 bn RMB 18.1 % Underwriting Profits Net Loss and LAE Reserves Ratio (vs. the beginning of the year) 3.3 pp Life & Health Business Contractual Service Margin as of the End of 2025 Effect of Insurance Contracts on Initial Recognition in the Current Period Adjustment of Estimated Changes in Contract Service Margin Financial Changes in Insurance Contracts Contractual Service Margin Amortization Contractual Service Margin as of the End of June 2026 13.6 3.6 2.0 -9.6 137.4 127.9 Note: Figures may not sum precisely due to rounding P&C Business 2025H1 2026H1 13.0 15.4 bn RMB Continuously Strengthened Profitability 1.3 8 Profit Contribution (% of Group Consolidated Net Profit) 4.6 pp
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Core Solvency Margin Ratio Core Solvency Margin Ratio (%) Comprehensive Solvency Margin Ratio (%) P&C 214 237 Life 128 189 Health 136 264 198 % Comprehensive Solvency Margin Ratio 247 % 148 149 bn RMB 20251231 20260630 Group Net Assets 420.5 462.7 10.1 % bn RMB 20251231 20260630 P&C Net Assets 288.7 306.4 6.1 % bn RMB 20251231 20260630 Life Net Assets 55.2 70.8 28.2 % bn RMB 20251231 20260630 Health Net Assets 24.0 28.1 16.9 % Group Solvency Continuous Enhancement of Capital Strength1.4 9
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Comprehensive Risk Management System Improved Compliance Operations Enhanced • Strengthened policed and frameworks for concentration risk management, internal controls and related areas • Strengthened the development of long-term case prevention and operational risk management mechanisms • Upgraded intelligent risk-control platforms • Optimized the mechanism for differentiated risk compliance performance assessment • All insurance subsidiaries maintained Grade A or above in the comprehensive risk rating • Further strengthened compliance in the “consistency between regulatory filings and actual underwriting” for auto insurance and bancassurance, as well as comprehensive governance for non-auto insurance • Promoted the signing of self-regulatory agreements for non-auto insurance across regional entities, took the lead in promoting industry self-discipline and worked together to safeguard the market order Effective Risk Prevention and Control 1.5 10
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Fully Leveraged the Function and Role of Insurance (1/2)1.6 2,046 tnRMB Ranked No.1in the industry 14.9 % Risk Protection 241 bnRMB Claims Paid Daily average claims paid reaches RMB 1.33bn 3.2 % Risk Reduction Adhere to the philosophy of Long-Term Investment ● Conducted more than 2 million pre- underwriting risk inspections, identifying 310,000 potential risk exposures ● Delivered 3.35 million risk management services to 1.63 million corporate clients, identifying 2.23 million potential risk exposures during the policy period ● Enhanced end-to-end risk mitigation model covering "protection, prevention, mitigation, relief, and claims" ● Investment in the real economy exceeded RMB1.3tn ● RMB 350bn invested across the “Five Priorities” of finance 11 Actively Performed the Functions of Insurance as an Economic Shock Absorber and Social Stabilizer
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• Number of new energy vehicles underwritten 30.9% • MSCI ESG Rating AAA • Risk coverage reached RMB 132tn • Scale of green investment 37.2% • Accelerating implementation of the "AI+" action plan • 246 AI application scenarios implemented • AI capability invocations exceeded 2.3bn times Technology Finance • Premiums income from technology insurance • Serving over 260,000 technology enterprises • Covered risk protection amount of RMB 28tn • Scale of technology finance investment 32.1 % Green Finance Digital Finance Pension Finance Inclusive Finance • Insurance coverage for the three major staple crops has largely transitioned from production cost insurance to full cost and planting income insurance • Undertook 1,465 policy -oriented health insurance projects, covering more than 1bn people • Second Pillar: AUM of annuity of RMB 771.9 bn • Third Pillar: Individual pension gross written premiums 102.3 % Commercial pension AUM 67.7 % Five major areas“ ” 12 • First Pillar: Steady growth in AUM 18.5% Fully Leveraged the Function and Role of Insurance (2/2)1.6
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Results Overview1 Key Work Focus for the second half of the year3Segment Overview
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Insurance Revenue Combined Ratio P&C: Results Highlights 2025H1 2026H1 2.2 % 254.6 249.0 bn RMB 2025H1 2026H1 94.0%94.8% Net Assets bn RMB 2025H1 2026H1 0.34 0.24 41.7 % 20251231 20260630 6.1 % 306.4 288.7 RMB Interim cash dividend per share (including tax)） 0.8 pp Net Profit ROE bn RMB 2025H1 2026H1 11.0% 1.9 pp 2025H1 2026H1 32.0 % 32.3 24.5 9.1% 14
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Expense Ratio 19.9% 1.2 pp Combined Ratio 93.5% 0.7 pp Underwriting Profit 9.9bn RMB 13.6 % Competitive Advantage in Auto Insurance Remains Solid2.1.1 Profitability Enhancement 15 Structure Optimization Number of household vehicles 3.8 % Household vehicles renewal rate 78.7% 2.1 pp Market share of household new vehicle premiums 0.3 pp 43.89mn vehicles
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Improved Quality and Profitability in Non-Auto Insurance Business2.1.2 Profitability improved year-on-year Combined Ratio 51.2 % 1.2 pp Underwriting Profits Premiums 18.2 % Combined Ratio 1.5 pp Rapid growth of individual business Improving quality of institutional business Claim Ratio 1.9 pp Expense Ratio 3.9 pp Combined Ratio 5.8 pp 16 32.5 %Underwriting Profit3.7bnRMB 31.5bn RMB Note: All financial data presented on this page are based on CAS Old Accounting Standard.
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bn RMB Net Assets 20251231 20260630 288.7 306.4 6.1 % 148 149 Core Solvency Margin Ratio Comprehensive Solvency Margin Ratio Solvency Margin Ratio 214% 237% 2025H1 2026H1 Net cash flow from operating activities 26.9 27.6 2.6 % 2025H1 2026H1 ROE 9.1% 11.0% 1.9pp 148 149 20251231 20260630 Net Loss and LAE Reserves 204.5 222.8 9.0 % 20251231 20260630 Net Loss and LAE Reserves Ratio 3.3 pp Solid Financial Strength2.1.3 17 bn RMB bn RMB
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Contractual Service Margin Life: Results Highlights 20251231 20260630 7.3% 112.1 104.5 Net Profit bn RMB 2025H1 2026H1 97.6% 13.6 6.9 18 ROE 2025H1 2026H1 21.5% 17.0% 4.5pp 25-month Persistency Ratio of Premuims 2025H1 2026H1 95.0% 94.3% 0.7pp Net Assets 20251231 20260630 70.8 55.2 28.2 % bn RMB 20251231 20260630 Total Assets 901.7 854.8 5.5 % bn RMB bn RMB
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Note: NBV margin and six-month NBV are on a comparable basis. 148 149 2025H1 2026H1 Six-month NBV 5.2 5.2% 2025H1 2026H1 NBV Margin 2.2pp 20251231 20260630 VIF 33.2 39.6% 20251231 20260630 EV 147.9 19.2% Regular Premiums Contribution 83.5% 4.0 pp 124.123.8 Business development resilience has increased2.2.1 First-year Regular Premiums of ten- year or more 1.88bn RMB 95.4% Renewal Premiums of 53.7bn RMB 9.0% 19 bn RMB bn RMBbn RMB
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• Proportion of preimiums from four major state-owned banks is 54.1% Bancassurance channels 13.0 pp 31.0% Channel Transformation Toward Innovation and Excellence2.2.2 Group insurance channels 20 Personal insurance premiums 23.4%• Six-month NBV 2.5bn RMB • Total channel workforce is 9,918 E-commerce channels Note: The growth rate of NBV in the personal insurance channel over six months is on a comparable basis 93.7% • 10-year-and-above Regular Premiums is 1.75bn RMB 25.7% 171.5% • First-year Regular Premiums Income • First-year Premiums Income is 3.1bn RMB 25.9% • 10-year-and-above First-year Regular Premiums Income 225.2% • Corporate clients with million- level premiums • Direct selling expense ratio 6.4% 1.8pp Including: Worksite-marketing for new agents 285.4% • Average Monthly High-quality Headcount 8,958
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Insurance Revenue Regular Premiums Income Contractual Service Margin Health: Results Highlights 2025H1 2026H1 7.1% 16.7 15.6 bn RMB bn RMB 20251231 20260630 25.2 23.4 7.7% 2025H1 2026H1 20.0% 18.1 15.1 bn RMB 21 Net Assets bn RMB 20251231 20260630 16.9% 28.1 24.0 Net Profit 2025H1 2026H1 5.155.13 bn RMB Total Assets 20251231 20260630 167.4 154.5 8.3% bn RMB
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Note: NBV margin and six-month NBV are on a comparable basis 148 149 bn RMB 2025H1 2026H1 Six-month NBV 3.9 1.3% 2025H1 2026H1 NBV Margin of Personal Insurance 0.5pp 20251231 20260630 VIF 23.1 15.4% 20251231 20260630 EV 40.8 15.3% 12.0 % • First-year regular Premiums of 6.8bn RMB 20.4 % • Renewal Premiums of 11.4bn RMB 19.8% • Regular Premiums Contribution 39.8% 2.6pp 35.4 20.0 Sustainable Growth in Business Value2.3.1 22 bn RMB bn RMB Premiums Income 45.6bn RMB
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Group insurance Health Management • Internet Accumulated customers 7.4% 85mn Premiums income 18.4% 12.1bn RMB • Bancassurance First-year Regular Premiums 29.6% 2.9bn RMB Average number of health insurance policies per customer 1.7 sheets 3.4% • Social Insurance Premiums income from innovative insurance businesses, such as long-term care, outpatient chronic and special diseases 3.5bn RMB 12.5% Premiums income from large-scale group insurance exceeding 1mn RMB 2.5bn RMB 4.6% • Group Customers • Service Revenue 200mn RMB • All kinds of services to the Group 5.4mn personnel times 12.4% 17.4% Continuosly Strengthened Channel Ecosystem Development2.3.2 23 Personal Insurance
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9.2% Total Investment Yield Allocation to Government and Treasury Bonds Equity Dividend Income OCI Equity 2025H1 2026H1 1.1pp 3.7% 2.6% 20251231 20260630 1.4pp 29.3% 27.9% 2025H1 2026H1 4.8 3.6 20251231 20260630 84.0 70.5 19.0% 24 TPL Secondary Equity NAV Growth Rate 22.2 % 11.1 % Total AUM of the first, second, and third pillars FVTPL equity net value growth 814.3 Outperformed the CSI 800 Index by 11.1 pp 758.4 35.6 % CSI 800 Index Yield 20251231 20260630 bn RMB bn RMB bn RMB Asset Management: Results Highlights
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Continued Enhancement of Investment Capabilities 2.4.1 ๏ Further improved the matrix management system of “segmented accounts + segmented asset classes” ๏ The Group’s three-year average total investment yield reached 5.0%, providing effective coverage of liability costs Fixed-income investment Equity investment ๏ Enhanced professional capabilities in fixed-income asset allocation, bond trading, credit risk management and sourcing of high-quality assets ๏ Strengthened interest rate trend analysis, capitalized on rate peaks to increase bond allocation, advanced investment innovation, and became an early participant in the expanded “Southbound Bond Connect” pilot program ๏ Enhanced return stability through optimized allocation between TPL and OCI, balancing return enhancement and risk control ๏ Strengthened active management capabilities through a research-led, fundamentals-based stock selection framework and the construction of equity portfolios resilient across market cycles ๏ Advanced the transformation of alternative investments and steadily expanded exposure to innovative asset classes, including asset-backed securities and publicly traded REITs ๏ Enhanced equity investment capabilities through the development of a fund investment platform comprising the PICC Modern Industrial Fund, PICC Healthcare Fund, Shanghai Sci-Tech Innovation Fund, and Wuhan Sci-Tech Innovation Fund, while increasing allocations to priority sectors aligned with national strategies and supportive of insurance business development 25 Asset-liability Matching Alternative investment
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Enhanced Service Quality and Effectiveness to Support Industry-Wide Priorities2.4.2 Support the stability of the capital market Promote technological self-reliance and self-strengthening • Actively advanced investments aligned with the principles of “early-stage, small-scale, long-term, and hard-tech investing” • Scale of Technology Finance Investment increased by 32.1% Support the revitalization of existing assets • Established an integrated “issuance–investment– management” model; total investment in exchange-listed ABS and China Insurance Asset Registration and Trading System ABS reached RMB35.2bn by end of June • Public REITs investments reached RMB4.9bn, maintaining an industry-leading position in both scale and performance Support the multi-pillar pension system • Sustained steady growth in first-pillar AUM • AUM of the second and third pillars exceeded RMB800bn • PICC Pension successfully launched China’s first city-level single-trustee annuity scheme for public-sector employees, the Changzhou Talent Annuity Project 26 • Net increase in A-share equity holdings of approximately RMB30bn • Completed deployment of the RMB10bn PICC Private Securities Investment Fund, which outperformed the CSI A500 Dividend Index over the same period
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Results Overview1 Segment Overview2 Key Work Focus for the second half of the year
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Key Work Focus for Second Half of 2026 Greater Focus on Strengthening Core Functions Greater Focus on Risk Prevention Greater Focus on Reform and Innovation 28 2 1 3 4 • Expand financial support for consumption, investment, enterprise development, employment stabilization, and other underserved areas • Deliver targeted and effective financial solutions to support high-quality economic and social development • Advance Technological Innovation • Promote Business Model Innovation • Drive Management Innovation • Advance “consistency between regulatory filings and actual underwriting” and reinforce the governance framework for non-motor insurance • Improve insurance risk prevention by tightening premiums receivable management in P&C insurance and enhancing asset–liability management in life and health insurance • Strengthen investment risk prevention, conduct in-depth risk assessments in critical areas, and proactively adapt to the new accounting standards Greater Focus on Stable Development • Insurance Segment: Accelerate growth momentum while enhancing profitability • Investment Segment: Deliver stable investment performance and sustainable returns • Operations Segment: Strengthen operational support for core business development
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Q & A
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(mn RMB) Net Profit Attributable to Equity Holder of the Company Net Assets Attributable to Equity Holder of the Company Item 2026H1 2025H1 As of Jun 30, 2026 As of Dec 31, 2025 Under CAS 36,745 26,530 340,139 308,991 Items and adjustments under IFRS: Premiums Reserves 942 908 1,199 257 Equity dilution in associates - -540 - - Impact of such adjustments on deferred income tax -236 -227 -301 -65 Under IFRS 37,451 26,671 341,037 309,183 Appendix: Differences between CAS and IFRS
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Appendix: Key Financials of PICC Group (CAS) (mn RMB, unless otherwise noted) 2026H1 2025H1 Change Insurance revenue 286,873 280,250 2.4% Of which: PICC P&C 254,617 249,040 2.2% PICC Life 13,611 14,018 -2.9% PICC Health 16,717 15,603 7.1% Total profit 61,579 42,468 45.0% Net profit attributable to equity holders 36,745 26,530 38.5% EPS (RMB) 0.83 0.60 38.5% Weighted average return on equity 11.2% 9.5% Up by 1.7ppts Total investment yield 3.7% 2.6% Up by 1.1ppts PICC P&C combined ratio 94.5% 95.3% Down by 0.8ppts New business value of PICC Life 5,177 4,921 5.2% (on a comparable basis) New business value of PICC Health 3,857 3,807 1.3% (on a comparable basis) (mn RMB, unless otherwise noted) As of Jun 30, 2026 As of Dec 31, 2025 Change Total assets 2,125,333 2,027,683 4.8% Total liabilities 1,663,901 1,607,491 3.5% Net assets attributable to equity holders 340,139 308,991 10.1% Book value per share (RMB) 7.7 7.0 10.1% Embedded value of PICC Life 147,937 124,149 19.2% Embedded value of PICC Health 40,793 35,369 15.3%
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Appendix: Key Financials of PICC Group (IFRS) (mn RMB, unless otherwise noted) 2026H1 2025H1 Change Insurance revenue 286,873 280,250 2.4% Of which: PICC P&C 254,617 249,040 2.2% PICC Life 13,611 14,018 -2.9% PICC Health 16,717 15,603 7.1% Total profit 62,945 43,064 46.2% Net profit attributable to equity holders 37,451 26,671 40.4% EPS (RMB) 0.85 0.60 40.4% Weighted average return on equity 11.4% 9.5% Up by 1.9ppts Total investment yield 3.7% 2.6% Up by 1.1ppts PICC P&C combined ratio 94.0% 94.8% Down by 0.8ppts New business value of PICC Life 5,177 4,921 5.2% (on a comparable basis) New business value of PICC Health 3,857 3,807 1.3% (on a comparable basis) (mn RMB, unless otherwise noted) As of Jun 30, 2026 As of Dec 31, 2025 Change Total assets 2,124,901 2,027,592 4.8% Total liabilities 1,662,168 1,607,126 3.4% Net assets attributable to equity holders 341,037 309,183 10.3% Book value per share (RMB) 7.7 7.0 10.3% Embedded value of PICC Life 147,937 124,149 19.2% Embedded value of PICC Health 40,793 35,369 15.3%