Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (a joint stock company incorporated in the People ’s Republic of China with limited liability) (Stock Code: 2328) ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 The Board of Directors of PICC Property and Casualty Company Limited (the “Company ”) announces the unaudited interim results of the Company and its subsidiaries for the six months ended 30 June 2026. This announcement sets out the full text of the 2026 Interim Report of the Company and fulfils the requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcements of interim results. By Order of the Board PICC Property and Casualty Company Limited Bi Xin Secretary of the Board Beijing, the PRC, 28 August 2026 As at the date of this announcement, the Vice Chairperson of the Board of the Company is Mr. Zhang Daoming (executive director), Mr. Lyu Chen and Mr. Hu Wei are executive directors, the employee director is Ms. Li Ling (non-executive director), and the independent directors are Mr. Cheng Fengchao, Mr. Wei Chenyang, Mr. Li Weibin, Mr. Qu Xiaobo and Ms. Xue Shuang.
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Company Profile The Company, the largest property and casualty insurance company on the Chinese mainland, was established in July 2003 with PICC Group as its sole promoter. The Company became the first domestic financial enterprise listed overseas when the Company was successfully listed on the Main Board of the Hong Kong Stock Exchange on 6 November 2003. The Company currently has a total share capital of 22,242,765,303 shares, of which 68.98% are held by PICC Group and 31.02% by H Shareholders. Motor vehicle insurance, commercial property insurance, cargo insurance, liability insurance, accidental injury insurance, short-term health insurance, agriculture insurance, credit insurance, surety insurance, household property insurance, marine hull insurance and other insurance businesses, which are denominated in RMB and foreign currencies, and the related reinsurance businesses as well as investment and funds application business permitted under the relevant laws and regulations of the PRC. PRINCIPAL ACTIVITIES
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Unaudited Interim Condensed Consolidated Financial Information Interim Condensed Consolidated Income Statement Interim Condensed Consolidated Statement of Comprehensive Income Interim Condensed Consolidated Statement of Financial Position Interim Condensed Consolidated Statement of Changes in Equity Interim Condensed Consolidated Statement of Cash Flows Notes to the Interim Condensed Consolidated Financial Information 36 37 38 40 42 44 04 07 19 24 26 02 35 80Definitions Corporate Governance and Other Information Financial Summary Report on Review of Interim Condensed Consolidated Financial Information Discussion and Analysis of Operating Results and Financial Conditions Performance Overview Principal Activities and Operation Analysis Specific Analysis Looking Forward Contents
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02 PICC Property and Casualty Company Limited 2026 Interim Report Financial Summary RESULTS Six months ended 30 June 2026 2025 Change RMB million RMB million % Original insurance premium income (1) 327,529 323,282 1.3 Insurance revenue 254,617 249,040 2.2 Underwriting profit (2) 15,376 13,015 18.1 Interest income from financial assets not measured at fair value through profit or loss 5,729 6,080 -5.8 Other investment income 17,882 7,901 126.3 Share of profit or loss of associates 4,019 3,617 11.1 Profit before income tax 40,029 28,904 38.5 Income tax expenses (7,745) (4,449) 74.1 Net profit for the period 32,284 24,455 32.0 ASSETS AND LIABILITIES 30 June 2026 31 December 2025 Change RMB million RMB million % Total assets 884,859 860,498 2.8 Total liabilities 578,498 571,795 1.2 Total equity 306,361 288,703 6.1 (1) The original insurance premium income was calculated in accordance with the “Premium Income ” account specified in Accounting Standard for Business Enterprises No. 25 – Original Insurance Contracts published in 2006. (2) Underwriting profit=insurance revenue – [insurance service expenses + net expenses/(income) from reinsurance contracts held + (finance expenses/(income) from insurance contracts issued – finance income/(expenses) from reinsurance contracts held)]
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03 PICC Property and Casualty Company Limited 2026 Interim Report Financial Summary 3.8% 10.9% Total investment income RMB27,359 million Total investment yield (unannualized) Net profit for the period RMB32,284 million Return on equity (unannualized) Original insurance premium income RMB327,529 million 33.3% Market share 94.0% Underwriting profit RMB15,376 million Combined ratio Comprehensive solvency margin ratio 237.2% 213.8% Core solvency margin ratio Proposed interim dividend per share RMB0.34 A year-on-year increase of 41.7%
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04 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions I. PERFORMANCE OVERVIEW In the first half of 2026, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era with an effort to actively implement the decisions and plans of the CPC Central Committee, the Company and its subsidiaries focused on the strategic goal of PICC Group, adhered to the general principle of pursuing progress while ensuring stability, and accelerated the transition between old and new growth drivers. The Company and its subsidiaries maintained stable business growth as well as leading profitability, further enhanced the ability to serve the overall development, achieving new progress in pushing forward high-quality development. STEADY GROWTH IN BUSINESS SCALE AND STABLE IMPROVEMENT OF OPERATION QUALITY AND EFFICIENCY In the first half of 2026, the Company and its subsidiaries actively pursued innovation in products, services and mechanisms, made every effort to cultivate new drivers of premium growth, promoted the high-quality development of motor vehicle insurance, optimized the business layout in the individual non-motor vehicle insurance, accelerated the transformation and development of corporate business, vigorously developed commercial health insurance, and enhanced the capacity to serve the comprehensive revitalization of rural areas. Overall, the business scale maintained steady growth. The Company and its subsidiaries achieved an original insurance premium income (Note 1) of RMB327,529 million, representing a year-on-year increase of 1.3%. The market share accounted for 33.3% (Note 2) of the property insurance market in the PRC. The insurance revenue reached RMB254,617 million, representing a year-on-year increase of 2.2% and maintaining the leading position in the industry. The Company and its subsidiaries continuously strengthened strategic management, took the lead to advance “underwriting as filed ” in motor vehicle insurance and “comprehensive governance ” of non- motor vehicle insurance. The Company and its subsidiaries refined budget performance assessments, optimized organizational operations, strengthened risk-based pricing, deepened efforts in cost reduction and efficiency enhancement, innovated customer service, and accelerated the transition to digital and intelligent operations, thereby supporting high-quality development through improved operational mechanisms. In the first half of 2026, the Company and its subsidiaries achieved an underwriting profit (Note 3) of RMB15,376 million, representing a year-on-year increase of 18.1%. The combined ratio was 94.0%, representing a year-on-year decrease of 0.8 pp. The total investment income was RMB27,359 million, representing a year-on-year increase of 58.5%. The net profit was RMB32,284 million, representing a year-on-year increase of 32.0%. The return on equity (unannualized) was 10.9%, representing a year-on- year increase of 1.9 pp. As at 30 June 2026, the total assets of the Company and its subsidiaries amounted to RMB884,859 million, representing an increase of 2.8% as compared to the beginning of 2026, and the net assets amounted to RMB306,361 million, representing an increase of 6.1% as compared to the beginning of 2026. The net cash flow from operating activities was RMB27,577 million, representing a year-on- year increase of 2.6%. The comprehensive solvency margin ratio (Note 4) was 237.2%, representing an increase of 4.8 pp as compared to the beginning of 2026, and the core solvency margin ratio (Note 4) was 213.8%, representing an increase of 0.4 pp as compared to the beginning of 2026, with the solvency remaining adequate and stable.
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05 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions Notes: 1. The original insurance premium income was calculated in accordance with the “Premium Income ” account specified in Accounting Standard for Business Enterprises No. 25 – Original Insurance Contracts published in 2006. 2. Calculated based on the data of the PRC insurance industry published on the website of the NFRA. 3. Underwriting profit = insurance revenue – [insurance service expenses + net expenses/(income) from reinsurance contracts held + (finance expenses/(income) from insurance contracts issued – finance income/(expenses) from reinsurance contracts held)] 4. The solvency results were calculated in accordance with the Rules for the Supervision of Insurance Company Solvency (II) and the relevant notices issued by the NFRA. ACCELERATING THE TRANSITION BETWEEN OLD AND NEW GROWTH DRIVERS AND ENHANCING THE ABILITY TO SERVE THE OVERALL DEVELOPMENT CONTINUOUSLY Remaining steadfast in upholding the political nature and people-oriented nature of financial work and closely adhering to the spirits of Five Priorities of financial work, the Company and its subsidiaries have established a “5+N” strategic service system, and promoted the full realization of insurance ’s potential through the transition between old and new growth drivers. For the first half of 2026, the total amount of insurance liability assumed reached RMB1,928.4 trillion. To serve the development of new-quality productive forces, we continued to refine the technology insurance product and service system that covers the entire value chain and the full life cycle, and launched several nationwide firsts including liability insurance for unmanned aerial vehicles. Premiums for technology activity insurance rose by 18.5% year- on-year while serving over 261,000 technology enterprises. To serve the expansion of domestic demand and the promotion of consumption, we developed a “vehicle + person + home ” full-lifecycle business model and integrated sales approach, providing comprehensive support for sporting events such as the “Xiong ’an Marathon ”, “Lanzhou Marathon ”, “Jiangsu Super League ” and “Fujian Super League ”. Rapid growth was achieved in personal commercial health insurance, service-oriented household property insurance and integrated culture-and-tourism insurance. To serve the Beautiful China initiative, we enriched the supply of green insurance products and services, with green insurance providing risk protection of RMB125.6 trillion. 8.061 million new energy vehicles were underwritten, representing a year- on-year increase of 30.9%. We provided risk protection of RMB12.7 trillion for clean energy industries such as solar, wind, hydropower and nuclear energy, and achieved the highest global MSCI ESG rating of AAA. To serve the enhancement of people ’s livelihood and well-being, we built a multi-tiered medical security system with policy-based health insurance covering 850 million person-times. Long-term care insurance was developed as a strategic priority, with a participation rate of 73.5% in the national pilot programs. Efforts were made to integrate and upgrade existing dispersed business into a “comprehensive catastrophe risk protection ” model, with regional catastrophe insurance covering 169 cities in 23 provinces (autonomous regions, municipalities), protecting nearly 500 million people. To serve the comprehensive revitalization of rural areas and the construction of an agricultural powerhouse, we advanced the expansion of coverage, diversification of products and enhancement of standards in agriculture insurance. Insurance for the three major staple food crops has largely transitioned from input-cost insurance to full- cost insurance and crop revenue insurance. We actively expanded local agriculture insurance business and made every effort to launch county-level specialized crop insurance. Our support model for Dezhou ’s
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06 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions “1.5-ton Grain ” initiative in Shandong Province was recognized by the Ministry of Agriculture and Rural Affairs as an annual innovative model for financial support to agriculture. To serve the country ’s high- level opening up, we refined the risk coverage models for the “three types of trade ” – goods, services and digital trade – and accelerated the development of products and services such as export credit insurance, cross-border e-commerce insurance, logistics freight insurance and multimodal container transport insurance, with shipping insurance providing risk protection exceeding RMB25.4 trillion. We also enhanced the overseas service network, acted as the lead underwriter for several “Belt and Road ” flagship projects, providing risk protection of RMB1.5 trillion for Chinese overseas interests business. PROACTIVELY LEVERAGING THE RISK MANAGEMENT FUNCTIONS OF THE INSURANCE AND ENHANCING THE OVERALL RESILIENCE TO RISKS The Company and its subsidiaries were committed to building a value chain for risk mitigation services, strengthening the capabilities of the “Wanxiang Cloud ” platform and tools, and driving the transformation of risk mitigation services towards greater specificity, scenario-based application, practicality and scalability. For corporate customers, we have refined risk assessment standards for key industries such as warehousing, photovoltaic power generation and flammable and explosive materials, whilst distilling and promoting service models covering work safety, flood and fire prevention, catastrophic risks, technological innovation, building safety and construction projects. We provided risk mitigation services for 3,353,100 times to 1,628,500 corporate customers, identifying 2,229,100 potential hazards and with an estimated loss reduction of RMB1.65 billion. For agriculture insurance, 51 risk mitigation service centres and 57 service demonstration parks were established, with 674,000 sets of materials distributed, resulting in an estimated loss reduction of RMB251 million. For motor vehicle insurance, 1,622,900 disaster alerts were issued and 4,212,100 instances of risk-mitigation value-added services were provided. The Company and its subsidiaries launched the service brands “PICC Five Highlights – Worry-Free Claims ” and “PICC Preferred – Peace of Mind for Vehicle Repairs ”, ensuring end-to-end protection of customers ’ rights to claims services and setting a benchmark for the collaborative development of the insurance and vehicle repair sectors. We implemented pre-disaster risk mitigation and flood prevention inspections, strengthened pre-disaster early warning systems, and standardized pre-disaster risk mitigation services. We also organized special inspections for flood-related claims settlement, implemented all claims management measures covering “preparation, prevention, rescue and compensation ”, strengthening capacity for major disaster claims settlement. We organized responses to 119 major disaster incidents and mobilized over 13,000 personnel deployments for the major disaster response. Specifically, we effectively responded to major disasters and incidents including the earthquake in Liuzhou, Guangxi, and the torrential rain in mid- to-late May, sparing no effort to safeguard the lives and property of the people.
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07 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions II. PRINCIPAL ACTIVITIES AND OPERATION ANALYSIS (I) INSURANCE BUSINESS 1. Business Overview Underwriting results In the first half of 2026, the Company and its subsidiaries achieved an insurance revenue of RMB254,617 million, representing a year-on-year increase of RMB5,577 million (or 2.2%). The insurance service result amounted to RMB19,074 million, representing a year-on-year increase of 13.0%. The underwriting profit was RMB15,376 million, representing a year-on-year increase of 18.1%. The comprehensive loss ratio was 71.9%, representing a year-on-year increase of 0.1 pp. The comprehensive expense ratio was 22.1%, representing a year-on-year decrease of 0.9 pp. The combined ratio was 94.0%, representing a year-on- year decrease of 0.8 pp. The following table sets forth the key operation results and selected financial indicators of the insurance business of the Company and its subsidiaries for the relevant periods: Six months ended 30 June 2026 2025 Change RMB million RMB million % Insurance revenue 254,617 249,040 2.2 Insurance service expenses (231,295) (227,806) 1.5 Net expenses from reinsurance contracts held (4,248) (4,349) -2.3 Insurance service result 19,074 16,885 13.0 Finance expenses from insurance contracts issued (4,246) (4,415) -3.8 Finance income from reinsurance contracts held 548 545 0.6 Underwriting profit 15,376 13,015 18.1 Comprehensive loss ratio (%) (1) (71.9) (71.8) Increased by 0.1 pp Comprehensive expense ratio (%) (2) (22.1) (23.0) Decreased by 0.9 pp Combined ratio (%) (3) (94.0) (94.8) Decreased by 0.8 pp (1) Comprehensive loss ratio = [incurred claims and loss adjustment expenses for the period + changes in fulfilment cash flows related to liability for incurred claims + (recognition and reversal of loss component – loss component allocated in liability for remaining coverage) + net expenses/(income) from reinsurance contracts held + (finance expenses/(income) from insurance contracts issued – finance income/(expenses) from reinsurance contracts held)]/insurance revenue (2) Comprehensive expense ratio = (amortization of insurance acquisition cash flows + maintenance costs)/ insurance revenue (3) Combined ratio = [insurance service expenses + net expenses/(income) from reinsurance contracts held + (finance expenses/(income) from insurance contracts issued – finance income/(expenses) from reinsurance contracts held)]/insurance revenue; or combined ratio = comprehensive loss ratio + comprehensive expense ratio
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08 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions Premiums by insurance segments The following table sets forth the original insurance premium income of the Company and its subsidiaries by insurance segments for the relevant periods: Six months ended 30 June 2026 2025 Change RMB million RMB million % Motor vehicle insurance 144,227 144,065 0.1 Accidental injury and health insurance 87,613 82,614 6.1 Agriculture insurance 43,199 43,790 -1.3 Liability insurance 24,310 21,944 10.8 Commercial property insurance 11,126 11,182 -0.5 Other insurance (1) 17,054 19,687 -13.4 Total 327,529 323,282 1.3 (1) Other insurance includes credit and surety insurance, cargo insurance, household property insurance, special risks insurance, marine hull insurance and construction insurance. Premiums by distribution channels The following table sets forth the original insurance premium income of the Company and its subsidiaries by distribution channels for the relevant periods: Six months ended 30 June 2026 2025 Amount Percentage Change Amount Percentage RMB million % % RMB million % Insurance agents 153,361 46.8 -2.1 156,624 48.4 Among which: Individual insurance agents 68,938 21.0 -12.2 78,473 24.3 Ancillary insurance agents 11,513 3.5 -7.4 12,439 3.8 Professional insurance agents 72,910 22.3 11.0 65,712 20.3 Direct sales 141,643 43.3 0.9 140,360 43.5 Insurance brokers 32,525 9.9 23.7 26,298 8.1 Total 327,529 100.0 1.3 323,282 100.0
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09 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions Premiums by region The following table sets forth the original insurance premium income of the Company and its subsidiaries by top ten regions for the relevant periods: Six months ended 30 June 2026 2025 Change RMB million RMB million % Guangdong Province 33,269 32,884 1.2 Jiangsu Province 32,259 32,218 0.1 Zhejiang Province 26,501 24,806 6.8 Shandong Province 21,002 20,193 4.0 Hebei Province 18,239 17,291 5.5 Hubei Province 17,181 16,199 6.1 Anhui Province 14,437 14,124 2.2 Sichuan Province 14,390 14,680 -2.0 Hunan Province 14,161 14,020 1.0 Jiangxi Province 12,542 12,018 4.4 Other regions 123,548 124,849 -1.0 Total 327,529 323,282 1.3 2. Operating Segment Data In order to facilitate investors ’ understanding of the operating results of the insurance segments, the Company allocated the insurance revenue, insurance service expenses, and other profit or loss items of the reinsurance business to each insurance segment and simulated the net operating results of each insurance segment. (1) Motor vehicle insurance The following table sets forth the key operating results and selected financial indicators of the motor vehicle insurance business of the Company and its subsidiaries for the relevant periods: Six months ended 30 June 2026 2025 Change RMB million RMB million % Insurance revenue 153,168 150,276 1.9 Insurance service expenses (140,352) (138,572) 1.3 Underwriting profit (1) 9,917 8,726 13.6 Comprehensive loss ratio (%) (73.6) (73.1) Increased by 0.5 pp Comprehensive expense ratio (%) (19.9) (21.1) Decreased by 1.2 pp Combined ratio (%) (93.5) (94.2) Decreased by 0.7 pp (1) The underwriting profit of each insurance segment includes the allocated profit or loss of reinsurance business.
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10 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions The Company and its subsidiaries spared no effort in enhancing quality and efficiency, fully leveraged the risk identification and pricing advantages, and expanded channels and promoted sales force. The Company and its subsidiaries strived to enhance the ability to secure high-quality business, optimize service quality and efficiency, and continuously expand the overseas market for new energy vehicle insurance business. The motor vehicle insurance business has continued to develop steadily, achieving an insurance revenue of RMB153,168 million, representing a year-on-year increase of 1.9%. The Company and its subsidiaries resolutely carried out “underwriting as filed ” in motor vehicle insurance, took the lead in maintaining market order, and continuously enhanced the capacity for compliant operations. The combined ratio of the motor vehicle insurance business was 93.5%, representing a year- on-year decrease of 0.7 pp. The underwriting profit was RMB9,917 million, representing a year-on-year increase of 13.6%. (2) Accidental injury and health insurance The following table sets forth the key operating results and selected financial indicators of the accidental injury and health insurance business of the Company and its subsidiaries for the relevant periods: Six months ended 30 June 2026 2025 Change RMB million RMB million % Insurance revenue 35,251 30,975 13.8 Insurance service expenses (34,561) (31,176) 10.9 Underwriting profit/(loss) 364 (569) Not applicable Comprehensive loss ratio (%) (68.8) (71.1) Decreased by 2.3 pp Comprehensive expense ratio (%) (30.2) (30.7) Decreased by 0.5 pp Combined ratio (%) (99.0) (101.8) Decreased by 2.8 pp The Company and its subsidiaries continuously strengthened the Company ’s functional role in the “1+3+N” multi-tier medical security system, and consolidated the leading position in the policy-based health insurance business. Addressing the protection needs of individual customers across vehicle, health and household scenarios, the Company and its subsidiaries built an insurance product system that serves multiple scenarios, caters to diverse customer groups, offers multi-tiered cover, facilitates the coordinated development of online and offline channels, and advances both inclusive and mid-to-high-end products in parallel. The accidental injury and health insurance business achieved an insurance revenue of RMB35,251 million, representing a year-on-year increase of 13.8%. The Company and its subsidiaries focused on underwriting management and control, cost management and control, and claim settlement management, continuously improving business quality and enhancing the business structure. The combined ratio of the accidental injury and health insurance business was 99.0%, representing a year-on-year decrease of 2.8 pp, with the underwriting profit achieving RMB364 million.
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11 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions (3) Agriculture insurance The following table sets forth the key operating results and selected financial indicators of the agriculture insurance business of the Company and its subsidiaries for the relevant periods: Six months ended 30 June 2026 2025 Change RMB million RMB million % Insurance revenue 21,406 23,179 -7.6 Insurance service expenses (19,102) (19,785) -3.5 Underwriting profit 1,588 2,697 -41.1 Comprehensive loss ratio (%) (79.0) (74.5) Increased by 4.5 pp Comprehensive expense ratio (%) (13.6) (13.9) Decreased by 0.3 pp Combined ratio (%) (92.6) (88.4) Increased by 4.2 pp By focusing on the national strategic requirements of building an agricultural powerhouse and comprehensive rural revitalization, the Company and its subsidiaries continued to develop a multi-tiered product system, consolidated the role of agriculture insurance products in safeguarding food security and building a diversified food supply system, strengthened protection for bulk agricultural commodities, and made every effort to ensure the effective implementation of national policies designed to benefit and support farmers. The agriculture insurance business achieved an insurance revenue of RMB21,406 million, with an overall stable market share. The Company and its subsidiaries were committed to the goal of high-quality development, vigorously advanced refined cost management, and implemented routine and coordinated control of expenses, thereby laying a solid foundation for the sustainable and sound operation of business. The combined ratio of the agriculture insurance business was 92.6% with the underwriting profit achieving RMB1,588 million.
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12 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions (4) Liability insurance The following table sets forth the key operating results and selected financial indicators of the liability insurance business of the Company and its subsidiaries for the relevant periods: Six months ended 30 June 2026 2025 Change RMB million RMB million % Insurance revenue 20,144 18,575 8.4 Insurance service expenses (19,987) (18,312) 9.1 Underwriting loss (628) (674) Not applicable Comprehensive loss ratio (%) (77.1) (75.0) Increased by 2.1 pp Comprehensive expense ratio (%) (26.0) (28.6) Decreased by 2.6 pp Combined ratio (%) (103.1) (103.6) Decreased by 0.5 pp The Company and its subsidiaries served the expansion of domestic demand and consumption growth by accelerating the development of internet business, and served the new-quality productive forces by accelerating the development of businesses such as new energy vehicle extended warranty and intelligent assisted driving insurance. Focusing on the self-employed, the Company and its subsidiaries further upgraded and refined the dedicated insurance products for “new urban residents ”. In support of social governance, the Company and its subsidiaries vigorously promoted the development of work safety liability insurance business. The liability insurance business achieved an insurance revenue of RMB20,144 million, representing a year-on-year increase of 8.4%. The Company and its subsidiaries strengthened business quality management and control, continuously improved business structure, and improved the management of marketing expenditure. The combined ratio of the liability insurance business was 103.1%, representing a year-on-year decrease of 0.5 pp.
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13 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions (5) Commercial property insurance The following table sets forth the key operating results and selected financial indicators of the commercial property insurance business of the Company and its subsidiaries for the relevant periods: Six months ended 30 June 2026 2025 Change RMB million RMB million % Insurance revenue 9,295 9,243 0.6 Insurance service expenses (6,910) (7,058) -2.1 Underwriting profit 1,250 918 36.2 Comprehensive loss ratio (%) (61.9) (64.3) Decreased by 2.4 pp Comprehensive expense ratio (%) (24.7) (25.8) Decreased by 1.1 pp Combined ratio (%) (86.6) (90.1) Decreased by 3.5 pp Focusing on serving the real economy, serving the specialized, sophisticated, distinctive and innovative enterprises, and serving the micro, small and medium-sized enterprises, the Company and its subsidiaries expanded product offerings, developed and launched user-friendly quotation tools, thereby continuously increasing the coverage of micro, small and medium-sized enterprises. Meanwhile, the Company and its subsidiaries implemented governance measures for high-risk business operations and promoted high- quality development. The commercial property insurance business achieved an insurance revenue of RMB9,295 million, representing a year-on-year increase of 0.6%. The Company and its subsidiaries strengthened risk assessment in key sectors and enhanced underwriting control over high-risk business, continued to optimize business structure and improve business quality, and advanced the refined management of expenses. The combined ratio of the commercial property insurance business was 86.6%, representing a year-on-year decrease of 3.5 pp. The underwriting profit was RMB1,250 million, representing a year-on-year increase of 36.2%.
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14 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions (6) Other insurance The following table sets forth the key operating data and selected financial indicators of other insurance business of the Company and its subsidiaries for the relevant periods: Six months ended 30 June 2026 2025 Change RMB million RMB million % Insurance revenue 15,353 16,792 -8.6 Insurance service expenses (10,383) (12,903) -19.5 Underwriting profit 2,885 1,917 50.5 Comprehensive loss ratio (%) (50.0) (58.3) Decreased by 8.3 pp Comprehensive expense ratio (%) (31.2) (30.3) Increased by 0.9 pp Combined ratio (%) (81.2) (88.6) Decreased by 7.4 pp The Company and its subsidiaries focused on serving the construction of a modern industrial system, serving technological self-reliance and self-improvement and the development of the low-altitude economy, and serving high-level opening-up, strengthened the acquisition of high-quality business, accelerated the development of export credit insurance, cross-border e-commerce insurance, logistics freight insurance and multimodal transport insurance, proactively explored the growth opportunities in the marine economy, and promoted the high-quality development of marine hull insurance. The Company and its subsidiaries took the initiative to improve the quality and expand the coverage of “Huijia Bao ”, upgraded and promoted service-oriented household property insurance, as well as managed the high-loss-making business. The other insurance business achieved an insurance revenue of RMB15,353 million. The Company and its subsidiaries continuously promoted underwriting portfolio management, strengthened the control over high-risk business, enhanced professional operating capabilities, upgraded risk mitigation services, improved the overseas insurance service network, strengthened differentiated resource allocation, and enhanced the effectiveness of expense allocation. The combined ratio of other insurance was 81.2%, representing a year-on-year decrease of 7.4 pp. The underwriting profit was RMB2,885 million, representing a year-on-year increase of 50.5%.
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15 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions (II) INSURANCE FUND INVESTMENT BUSINESS 1. Investment Results Six months ended 30 June 2026 2025 Change RMB million RMB million % Interest income from financial assets not measured at fair value through profit or loss 5,729 6,080 -5.8 Other investment income 17,882 7,901 126.3 Investment assets impairment reversal 62 56 10.7 Share of profit or loss of associates 4,019 3,617 11.1 Reduction: Interest on securities sold under agreements to repurchase (333) (394) -15.5 Total investment income 27,359 17,260 58.5 Total investment yield (unannualized) (%) (1) 3.8 2.6 Increased by 1.2 pp Total investment assets (2) 781,951 760,366 2.8 (1) Total investment yield = Total investment income/(Average total investment assets at the beginning and end of the period – Average securities sold under agreements to repurchase at the beginning and end of the period) (2) Total investment assets mainly consist of cash and cash equivalents, financial investments, term deposits, investments in associates, investment properties, and restricted statutory deposits, based on data as of 30 June 2026 and 31 December 2025. In adherence to the principle of long-term and prudent investment, the Company and its subsidiaries actively implemented the requirement for medium- and long-term funds to enter the market. On the premise of ensuring asset-liability matching and liquidity safety, we proactively seized phased market opportunities, continued to optimize the equity investment structure, gave full play to the advantages of long-term funds, so as to enhance the contribution of investment returns. In the first half of 2026, the Company and its subsidiaries achieved a total investment income of RMB27,359 million, representing an increase of RMB10,099 million (or 58.5%) as compared to the same period of the previous year. The unannualized total investment yield was 3.8%, representing a year-on-year increase of 1.2 pp.
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16 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions 2. Composition of Investment Assets The following table sets forth the investment assets of the Company and its subsidiaries by accounting measurement at the relevant dates: 30 June 2026 31 December 2025 Balance Percentage Change Balance Percentage RMB million % % RMB million % Classified by accounting measurement: Cash and cash equivalents 20,222 2.6 -13.1 23,273 3.1 Term deposits 67,472 8.6 4.6 64,482 8.5 Financial assets measured at amortized cost 152,485 19.5 1.3 150,493 19.7 Financial assets measured at fair value through other comprehensive income 280,880 35.9 -2.0 286,708 37.7 Financial assets measured at fair value through profit or loss 171,703 22.0 14.8 149,630 19.7 Investments in associates 76,352 9.8 4.8 72,823 9.6 Investment properties 6,908 0.9 -0.4 6,934 0.9 Other investment assets (1) 5,929 0.7 -1.6 6,023 0.8 Total investment assets 781,951 100.0 2.8 760,366 100.0 (1) Other investment assets mainly included restricted statutory deposits.
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17 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions The following table sets forth the investment assets of the Company and its subsidiaries classified by investment object at the relevant dates: 30 June 2026 31 December 2025 Balance Percentage Change Balance Percentage RMB million % % RMB million % Classified by investment object: Cash and cash equivalents 20,222 2.6 -13.1 23,273 3.1 Fixed-income investments 461,613 59.0 5.3 438,281 57.6 Term deposits 67,472 8.6 4.6 64,482 8.5 Government bonds 184,038 23.5 11.6 164,865 21.6 Financial bonds 82,601 10.6 9.8 75,220 9.9 Corporate bonds 69,525 8.9 -0.3 69,715 9.2 Long-term debt investment schemes 23,196 3.0 -15.9 27,587 3.6 Other fixed-income investments (1) 34,781 4.4 -4.5 36,412 4.8 Equity investments 209,606 26.8 -1.4 212,481 27.9 Funds 51,469 6.6 31.6 39,114 5.1 Listed shares 89,088 11.4 2.9 86,546 11.3 Unlisted equity 20,581 2.6 0.6 20,456 2.7 Preferred shares 6,756 0.9 -0.2 6,769 0.9 Perpetual bonds 22,387 2.9 -43.2 39,432 5.2 Other equity investments (2) 19,325 2.4 -4.2 20,164 2.7 Investments in associates 76,352 9.8 4.8 72,823 9.6 Investment properties 6,908 0.9 -0.4 6,934 0.9 Other investment assets (3) 7,250 0.9 10.3 6,574 0.9 Total investment assets 781,951 100.0 2.8 760,366 100.0 (1) Other fixed-income investments mainly consist of trust plans, project support schemes, etc. (2) Other equity investments mainly consist of perpetual debt plans, trust plans, etc. (3) Other investment assets are mainly restricted statutory deposits. As at 30 June 2026, the balance of investment assets of the Company and its subsidiaries was RMB781,951 million, representing an increase of 2.8% as compared to the beginning of 2026, among which, the balance of fixed-income investment assets was RMB461,613 million, representing an increase of RMB23,332 million (or 5.3%) as compared to the beginning of 2026, and its share in the total portfolio increased by 1.4 pp as compared to the beginning of 2026, which was mainly attributable to increased allocations to treasury bonds and local government bonds. The balance of equity investment assets was RMB209,606 million, representing a decrease of RMB2,875 million (or -1.4%) as compared to the beginning of 2026, and its share in the total portfolio decreased by 1.1 pp as compared to the beginning of 2026, which was mainly due to the fact that the Company disposed of part of its perpetual bonds and increased its investments in shares and funds.
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18 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions 3. Investments in Associates As at 30 June 2026, the amount of investments in associates of the Company and its subsidiaries was RMB76,352 million, representing an increase of RMB3,529 million (or 4.8%) as compared to the beginning of 2026. Please refer to Note 19 to the interim condensed consolidated financial information for details. 4. Material Investments Save as disclosed in this interim report, during the reporting period, there was no material change in the information relating to material investments of the Company and its subsidiaries provided pursuant to paragraphs 32 and 40(2) of Appendix D2 to the Listing Rules as compared with the 2025 annual report. Please refer to Note 19 to the interim condensed consolidated financial information for details. 5. Asset Pledge The Company conducted repurchase transactions in the market due to the liquidity management requirements. The securities held by the Company were pledged as collateral during the process of repurchase transactions. (III) OVERALL RESULTS The following table sets forth the overall results of the Company and its subsidiaries for the relevant periods or as at the relevant dates: Six months ended 30 June 2026 2025 Change RMB million RMB million % Profit before income tax 40,029 28,904 38.5 Income tax expenses (7,745) (4,449) 74.1 Net profit for the period 32,284 24,455 32.0 Total assets (1) 884,859 860,498 2.8 Net assets (1) 306,361 288,703 6.1 (1) Based on the data as at 30 June 2026 and 31 December 2025.
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19 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions Profit before income tax As a result of the foregoing, the profit before income tax of the Company and its subsidiaries in the first half of 2026 was RMB40,029 million, representing a year-on-year increase of RMB11,125 million (or 38.5%). Income tax expenses In the first half of 2026, the Company and its subsidiaries recorded income tax expenses of RMB7,745 million, representing a year-on-year increase of RMB3,296 million (or 74.1%), which was mainly due to the increase in taxable profit. Net profit for the period As a result of the foregoing, the net profit increased by RMB7,829 million (or 32.0%) from RMB24,455 million in the first half of 2025 to RMB32,284 million in the first half of 2026, and basic earnings per share was RMB1.452. III. SPECIFIC ANALYSIS (I) ANALYSIS OF LIQUIDITY AND CAPITAL ADEQUACY Cash Flow Analysis The following table sets forth the cash flows of the Company and its subsidiaries for the relevant periods: Six months ended 30 June 2026 2025 Change RMB million RMB million RMB million Net cash flows generated from operating activities 27,577 26,891 686 Net cash flows used in investing activities (5,680) (11,657) 5,977 Net cash flows used in financing activities (24,902) (17,633) -7,269 Effects of exchange rate changes on cash and cash equivalents (43) (4) -39 Net decrease in cash and cash equivalents (3,048) (2,403) -645 In the first half of 2026, the net cash flows generated from operating activities of the Company and its subsidiaries were RMB27,577 million, representing a year-on-year increase of RMB686 million (or 2.6%), which was mainly attributable to the increase in cash inflows from premium income. In the first half of 2026, the net cash flows used in investing activities of the Company and its subsidiaries were RMB5,680 million, representing a year-on-year decrease of RMB5,977 million (or -51.3%), which was mainly attributable to the year-on-year increase in net purchases of funds and shares with the year-on-year decrease in net purchases of bonds. In the first half of 2026, the net cash flows used in financing activities of the Company and its subsidiaries were RMB24,902 million, representing a year-on-year increase of RMB7,269 million (or 41.2%), which was mainly attributable to a greater reduction in the scale of securities sold under agreements to repurchase by the Company as compared to the same period of the previous year.
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20 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions As at 30 June 2026, cash and cash equivalents (exclusive of accrued interest) of the Company and its subsidiaries amounted to RMB20,220 million. Gearing Ratio As at 30 June 2026, the gearing ratio (Note) of the Company and its subsidiaries was 64.0%, representing a decrease of 1.0 pp as compared to the beginning of 2026. Note: The gearing ratio is represented by total liabilities (excluding bonds payable) divided by total assets. Source of Working Capital The cash flows of the Company and its subsidiaries are primarily derived from cash generated from operating activities, which are principally insurance premiums received. In addition, sources of liquidity include interest and dividend income, proceeds from matured investments, disposal of assets and financing activities. The liquidity needs of the Company and its subsidiaries consist principally of the payment of claims and performance of other obligations under outstanding insurance policies, capital expenditure, operating expenses, tax payments, dividend payments and investment needs. The Company issued capital supplementary bonds of RMB12.0 billion in November 2024, with a term of 10 years. Save for the capital supplementary bonds mentioned above, the Company and its subsidiaries did not obtain working capital by borrowing. The Company and its subsidiaries expect that they can meet their working capital needs in the future with cash generated from operating activities. The Company and its subsidiaries have sufficient working capital. Capital Expenditure The capital expenditure of the Company and its subsidiaries primarily includes expenditures for operational properties under construction, acquisition of motor vehicles for operational purposes, and development of information systems. In the first half of 2026, the capital expenditure of the Company and its subsidiaries amounted to RMB814 million. Solvency Margin According to the Rules for the Supervision of Insurance Company Solvency (II) (Yin Bao Jian Fa [2021] No. 51) and the relevant notices issued by the NFRA, the Company disclosed its summary of solvency margin report for the second quarter of 2026 on the official website of the Company (property.picc.com) and the website of Insurance Association of China (www.iachina.cn) on 28 August 2026.
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21 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions The following table sets forth the major solvency margin indicators of the Company as of the dates indicated: 30 June 2026 31 December 2025 Change RMB million RMB million % Actual capital 306,243 287,896 6.4 Core capital 276,110 264,301 4.5 Minimum capital 129,131 123,864 4.3 Comprehensive solvency margin ratio (%) 237.2 232.4 Increased by 4.8 pp Core solvency margin ratio (%) 213.8 213.4 Increased by 0.4 pp (II) RISK MANAGEMENT Credit Risk Credit risk is the risk of economic loss incurred by the Company and its subsidiaries resulting from the inability of debtors of the Company and its subsidiaries to make any principal or interest payments when due. The assets of the Company and its subsidiaries which are subject to credit risk are principally concentrated on insurance receivables, reinsurance assets, debt securities and deposits with commercial banks. The Company and its subsidiaries are only committed to credit sales to corporate customers or individual customers who purchase certain insurance policies through insurance intermediaries. The capability to collect premiums in a timely manner is one of the key performance indicators of the Company. The Company ’s premiums receivable involve a large number of diversified customers, therefore there are no major credit concentration risks in insurance receivables. Other than the state-owned reinsurance companies, the Company purchases reinsurance primarily from reinsurance companies with A- rating or above by Standard & Poor ’s (or equivalent ratings granted by other international rating agencies such as A.M. Best, Fitch and Moody ’s). The management of the Company regularly reviews the creditworthiness of the reinsurance companies in order to update the reinsurance strategies and determine reasonable impairment provisions on reinsurance assets of the Company. The Company and its subsidiaries diligently manage credit risk in debt securities mainly by analyzing the creditworthiness of investee companies prior to making investments and by strictly conforming to the relevant regulations issued by the NFRA on the investment ratings of corporate bonds. More than 99% of the bonds held by the Company and its subsidiaries have an actual subject rating of AAA or are exempted from rating. The Company and its subsidiaries manage and lower credit risk affecting their bank deposits mainly by depositing most of their deposits with state-owned banks or state-controlled commercial banks.
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22 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions Exchange Rate Risk The Company and its subsidiaries conduct their business primarily in RMB, which is also their functional and financial reporting currency. Certain businesses of the Company and its subsidiaries (including certain commercial property insurance, international cargo insurance and aviation insurance business) are conducted in foreign currencies (primarily in US dollars). The Company and its subsidiaries are also exposed to exchange rate risks for assets which are valued based on foreign currencies such as parts of their bank deposits and debt securities and certain insurance business liabilities which are denominated in foreign currencies (primarily in US dollars). Foreign exchange transactions under the capital accounts of the Company and its subsidiaries are subject to foreign exchange control and the approval of the administration authority for foreign exchange. Exchange rate fluctuations may arise as a result of the foreign exchange policy adopted by the PRC government. Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in market interest rates. The Company and its subsidiaries ’ interest rate risk policy requires to manage interest rate risk by maintaining an appropriate match of fixed and floating interest rate instruments. The policy also requires to manage the maturity of interest-bearing financial assets and interest-bearing financial liabilities, reprice interest on floating rate instruments at intervals of less than one year and manage floating interest rate risk through interest rate swap and other instruments. Interest on fixed interest rate instruments is priced at inception of the financial instrument and is fixed until maturity. Interest Rate Swaps The Company and its subsidiaries ’ financial assets which bear interest at different rates generate uncertain cash flows. As such, interest rate swap contracts are used by the Company and its subsidiaries to hedge against such interest rate risk whereby in general floating interest is received from, and fixed interest is paid to, the counterparties. In the first half of 2026, the Company and its subsidiaries did not engage in interest rate swap operations.
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23 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions (III) OTHER SPECIFIC ANALYSIS Contingent Events Owing to the nature of the insurance business, the Company and its subsidiaries are involved in legal proceedings in the ordinary course of business, acting as the plaintiff or the defendant in litigation and arbitration proceedings. Most of such legal proceedings involve claims on the insurance policies of the Company and its subsidiaries, and some losses arising therefrom may be indemnified by reinsurers or other recoveries including salvages and subrogation. While the outcomes of such contingencies, lawsuits or other proceedings cannot be determined at present, the Company and its subsidiaries believe that any liabilities resulting therefrom, if any, will not have a material adverse effect on the financial position or operating results of the Company and its subsidiaries. As at 30 June 2026, there were certain pending legal proceedings of the Company and its subsidiaries. After taking professional opinions into account, the management of the Company believes that such legal proceedings will not induce a significant impact on the operation of the Company and its subsidiaries. Events after the Reporting Period On 28 August 2026, the Board of Directors proposed an interim dividend of RMB0.34 per ordinary share for the year 2026, which is subject to the approval of the shareholders ’ general meeting of the Company. Development of New Products In the first half of 2026, adhering to a people-centered value orientation for innovation and following the decisions and plans of the CPC Central Committee, the Company implemented the requirements under the new “Ten National Rules ” for the insurance sector, delivered solid outcomes in the “Five Priorities ” of financial work, and continued to strengthen the supply of high-quality insurance products and services for major strategies, key areas and weak links. During the first half of the year, the Company developed or amended a total of 1,675 insurance provisions, including 830 national provisions and 845 regional provisions, or 844 main insurance provisions and 831 rider provisions. Employees As at 30 June 2026, the Company had 163,196 employees. In the first half of 2026, the employees ’ remuneration paid by the Company and its subsidiaries amounted to RMB22,304 million, mainly including basic salaries, performance-related bonuses, and various insurance and welfare contributions in accordance with the relevant PRC laws and regulations. The Company and its subsidiaries attach great importance to employee training, establish individual learning records for employees, encourage employees to sit for professional qualification examinations, carry out the development of role-based learning roadmaps, and develop a professional curriculum framework tailored to the employees ’ needs. The Company and its subsidiaries enhanced the performance and working efficiency of employees by providing various career development paths, strengthening employee training, implementing performance appraisal and other measures. The Company is of the view that the Company and its subsidiaries maintain a good relationship with their employees.
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24 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions IV. LOOKING FORWARD The meeting of the Political Bureau of the CPC Central Committee held on 30 July 2026 noted that China’s economy is demonstrating a development momentum featuring new growth drivers and an optimized structure and emphasized accelerating the transition between old and new growth drivers, stepping up efforts to expand domestic demand and optimize supply, steadily advancing the planning and development of the “six networks ”, accelerating the development of a modern industrial system, and further implementing the “Artificial Intelligence+ ” initiative. These priorities have charted the course for economic work at present and in the period ahead, and provided fundamental guidance for the insurance industry to serve the real economy and achieve high-quality development. More rigorous regulation has promoted a more standardized and orderly market environment, and the industry is at an important stage of strategic opportunities. Looking ahead, the Company will actively seize prevailing trends and strategic opportunities, take the lead in implementing the major decisions and plans of the CPC Central Committee, accelerate the transition between old and new growth drivers, strengthen its core competitiveness, and achieve more balanced, higher-quality and more sustainable operating results. Firstly, further leverage the function of insurance and facilitate the transition between old and new growth drivers. We will vigorously advance technology finance, conduct in-depth research on emerging and future industries, strengthen adaptive innovation in technology insurance products and services, and provide full- cycle risk protection for scientific and technological innovation. We will vigorously advance green finance, innovate insurance products and services for the new energy sector, actively develop green insurance products such as green building insurance and carbon sink insurance, and provide better risk protection for green and low-carbon development. We will vigorously advance inclusive finance, strengthen insurance protection for micro, small and medium-sized enterprises, accelerate the development of agriculture, rural areas and farmers-related insurance, catastrophe insurance and insurance for new urban residents, and enhance the accessibility and expand the coverage of insurance services. We will vigorously advance elderly care finance, deeply participate in the development of a multi-tier medical security system, actively develop long-term care insurance and insurance for outpatient chronic and special diseases, and meet the diverse elderly care protection needs of the public. We will vigorously advance digital finance, focus on customer, claims and technology operations, accelerate technological transformation and business model innovation, and enhance services and protection for the digital economy. We will vigorously support the expansion of domestic demand and the promotion of consumption, accelerate the transition toward the “vehicle + person + home ” model, and actively develop consumer-oriented businesses such as electric bicycle insurance, gas insurance, cultural and tourism insurance and service-oriented household property insurance. We will vigorously support high-level opening-up and actively develop shipping insurance and overseas business. Secondly, further strengthen professional operations and enhance the quality and efficiency of development. We will intensify research on emerging risks, deepen the development of risk pricing models, and continuously enhance underwriting and pricing capabilities. We will strengthen claims cost control, closely monitor key claims processes and critical indicators relating to personal injury and property damage, carry out key initiatives including anti-fraud and anti-leakage measures, strengthen refined expense management, optimize resource allocation, and continuously enhance resource utilization efficiency and value creation capabilities.
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25 PICC Property and Casualty Company Limited 2026 Interim Report Discussion and Analysis of Operating Results and Financial Conditions Thirdly, further deepen digital-intelligent empowerment and advance intelligent operations. We will accelerate digital transformation and the application of artificial intelligence, steadily implement the “No- Regret ” projects, and improve the operating mechanism of integrated technology service teams. We will build an online, intelligent and integrated customer operations platform and focus on enhancing customer operating capabilities. We will formulate phased plans for the pilot implementation and rollout of artificial intelligence projects and improve the effectiveness of artificial intelligence applications. Fourthly, further strengthen risk prevention and coordinate development and security. We will fully implement the “first agenda item ” system, consolidate and deepen the outcomes of education on establishing and practicing a correct view of performance, improve internal control, compliance and comprehensive risk management systems, and enforce the responsibilities of the “three lines of defense ”. We will continue to improve the checks, balances and supervisory mechanisms governing the allocation and exercise of powers, maintain a tough stance on improving conduct, enforcing discipline and combating corruption, strengthen risk prevention and control in key areas, and ensure sound operation of the Company. We will further advance “underwriting as filed ” in motor vehicle insurance and “comprehensive governance ” of non-motor vehicle insurance, and take the lead in maintaining a fair, equitable, healthy and orderly market environment. Fifthly, further optimize the asset structure and maintain a stable portfolio. In respect of equity investments, on the one hand, we will focus on technology and growth, conduct in-depth research and seize investment opportunities in fields such as artificial intelligence and new quality productive forces, and enhance the return elasticity of the portfolio. On the other hand, we will strengthen prudent value allocation, select high-quality listed companies with reasonable valuations, solid operating results and strong dividend-paying capabilities, continue to increase allocations to high-dividend assets, and enhance the stability of the portfolio. In respect of fixed-income investments, we will steadily expand the scale of assets, stabilize investment returns, flexibly adjust duration and category strategies based on interest rate market trends, uphold rigorous credit rating standards, select bank deposits and non-standard fixed- income assets, and strengthen investment research of the innovative fixed-income products.
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26 PICC Property and Casualty Company Limited 2026 Interim Report Corporate Governance and Other Information DIRECTORS ’ AND CHIEF EXECUTIVE ’S INTERESTS IN SHARES The Directors and the President of the Company did not hold any interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations as defined in Part XV of the SFO as at 30 June 2026 that were required to be recorded in the register as required to be kept under Section 352 of the SFO or required to be notified to the Company and the Hong Kong Stock Exchange under the Model Code. During the six months ended 30 June 2026, the Company did not grant any rights to the Directors or the President of the Company (including their spouses or children under the age of 18) to subscribe for shares, underlying shares or debentures of the Company or any of its associated corporations as defined in Part XV of the SFO. As at 30 June 2026, none of the abovementioned subscription rights existed. CHANGES IN THE BOARD Changes in the Board members during the period from 1 January 2026 to the date of this interim report are as follows: Ms. Li Ling ’s qualification as a Director of the Company was approved by the NFRA on 4 January 2026. The term of office of Ms. Li Ling as the employee Director and a member of the Audit Committee of the Board of the Company commenced on 4 January 2026. Mr. Jiang Caishi resigned from his position as an executive Director of the Company with effect from 8 April 2026. His positions as a member of the Strategic Planning Committee/Sustainable Development Committee of the Board, a member of the Risk Management and Consumers ’ Rights and Interests Protection Committee (Assets and Liabilities Management and Investment Decision-making Committee) of the Board and a member of the Related Party Transaction Control Committee of the Board also automatically ceased simultaneously. Mr. Zhang Daoming was elected as a member of the Strategic Planning Committee/Sustainable Development Committee of the Board on 29 April 2026. Ms. Ding Xiangqun resigned from her positions as a non-executive Director of the Company, the Chairperson of the Board and the chairperson of the Strategic Planning Committee/Sustainable Development Committee of the Board with effect from 31 May 2026. At the annual general meeting of the Company for the year 2025 held on 25 June 2026, Mr. Zhang Daoming, Mr. Lyu Chen and Mr. Hu Wei were elected as executive Directors of the 7th session of the Board, Mr. Gong Xinyu was elected as a non-executive Director of the 7th session of the Board, and Mr. Cheng Fengchao, Mr. Wei Chenyang, Mr. Li Weibin, Mr. Qu Xiaobo and Ms. Xue Shuang were elected as independent Directors of the 7th session of the Board. (The qualification of Mr. Gong Xinyu as a Director is still subject to the approval of the NFRA.) At the 3rd meeting of the 4th session of the meeting of employees ’ representatives of the Company held on 25 June 2026, Ms. Li Ling was elected as the employee Director of the 7th session of the Board.
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27 PICC Property and Casualty Company Limited 2026 Interim Report Corporate Governance and Other Information At the 1st meeting of the 7th session of the Board of the Company held on 25 June 2026, Mr. Zhang Daoming was elected as the Vice Chairperson of the Board of the Company. At this meeting and the following meetings of committees of the Board, the new compositions of the committees of the Board were approved as follows: the Strategic Planning Committee/Sustainable Development Committee of the Board comprising Mr. Zhang Daoming, Mr. Lyu Chen, Mr. Gong Xinyu and Mr. Qu Xiaobo as members; the Audit Committee of the Board comprising Ms. Xue Shuang as the chairperson and Mr. Gong Xinyu, Mr. Cheng Fengchao, Mr. Wei Chenyang, Mr. Li Weibin and Ms. Li Ling as members; the Nomination, Remuneration and Review Committee of the Board comprising Mr. Cheng Fengchao as the chairperson and Mr. Gong Xinyu, Mr. Wei Chenyang, Mr. Li Weibin and Ms. Xue Shuang as members; the Risk Management and Consumers ’ Rights and Interests Protection Committee (Assets and Liabilities Management and Investment Decision-making Committee) of the Board comprising Mr. Zhang Daoming as the chairperson and Mr. Lyu Chen, Mr. Hu Wei, Mr. Cheng Fengchao, Mr. Wei Chenyang and Mr. Qu Xiaobo as members; the Related Party Transaction Control Committee of the Board comprising Mr. Li Weibin as the chairperson and Mr. Lyu Chen, Mr. Hu Wei, Mr. Qu Xiaobo and Ms. Xue Shuang as members. (The term of office of Mr. Gong Xinyu will commence from the date of the approval of his qualification as a Director by the NFRA.) Mr. Lyu Chen ’s qualification as a Director of the Company was approved by the NFRA on 4 August 2026. The term of office of Mr. Lyu Chen as an executive Director and a member of the Strategic Planning Committee/Sustainable Development Committee of the Board, a member of the Risk Management and Consumers ’ Rights and Interests Protection Committee (Assets and Liabilities Management and Investment Decision-making Committee) of the Board and a member of the Related Party Transaction Control Committee of the Board of the Company commenced on 4 August 2026.
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28 PICC Property and Casualty Company Limited 2026 Interim Report Corporate Governance and Other Information As at the date of this interim report, the Board comprises: Mr. Zhang Daoming (Vice Chairperson of the Board, Executive Director) Mr. Lyu Chen (Executive Director) Mr. Hu Wei (Executive Director) Ms. Li Ling (Employee Director/Non-executive Director) Mr. Cheng Fengchao (Independent Director) Mr. Wei Chenyang (Independent Director) Mr. Li Weibin (Independent Director) Mr. Qu Xiaobo (Independent Director) Ms. Xue Shuang (Independent Director) CHANGES IN THE INFORMATION OF DIRECTORS Mr. Jiang Caishi, a former executive Director, has also resigned from his position as a Vice President of the Company. Mr. Zhang Daoming, an executive Director, currently also serves as the President of the Company. Mr. Lyu Chen, an executive Director, has ceased to serve as a non-executive director of PICC Health Insurance Company Limited and a non-executive director of Hua Xia Bank Co., Limited*. Mr. Hu Wei, an executive Director, currently also serves as a non-executive director of PICC Health Insurance Company Limited. Mr. Qu Xiaobo, an independent Director, currently also serves as an independent director of Changzhou NRB Corporation**. Ms. Xue Shuang, an independent Director, currently also serves as an independent director of Shanghai Chengtou Holding Co., Ltd.* and Tsingtao Brewery Company Limited***. * These companies are listed on the Shanghai Stock Exchange. ** This company is listed on the Shenzhen Stock Exchange. *** This company is listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange. MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS OF LISTED ISSUERS The Company has formulated the Guidelines on Transactions of the Company ’s Securities by the Employees (the “Securities Transactions Guidelines ”) that are applicable to Directors and all employees. The terms of the Securities Transactions Guidelines are no less exacting than those set out in the Model Code. The Company enquired with all the Directors, and they all confirmed that they complied with the requirements under the Model Code and the Securities Transactions Guidelines during the first half of 2026.
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29 PICC Property and Casualty Company Limited 2026 Interim Report Corporate Governance and Other Information DISCLOSEABLE INTERESTS AND SHORT POSITIONS OF SHAREHOLDERS UNDER SFO As at 30 June 2026, the following persons held interests or short positions in the shares or underlying shares of the Company that were required to be disclosed pursuant to the provisions of Divisions 2 and 3 of Part XV of the SFO and recorded in the register as required to be kept by the Company pursuant to Section 336 of the SFO, or notified to the Company and the Hong Kong Stock Exchange by other means: Name of shareholder Capacity Number of domestic shares Nature of interests Percentage of total number of domestic shares in issue (Note 1) Percentage of total number of shares in issue (Note 1) PICC Group Beneficial owner 15,343,471,470 Long position 100% 68.98% Name of shareholder Capacity Number of H shares Nature of interests Percentage of total number of H shares in issue (Note 1) Percentage of total number of shares in issue (Note 1) JPMorgan Chase & Co. Beneficial owner, investment manager, person having a security interest in shares, approved lending agent 558,321,930 (Note 2) Long position 8.09% 2.51% Beneficial owner 41,241,774 (Note 2) Short position 0.59% 0.18% Approved lending agent 408,089,054 Lending pool 5.91% 1.83% Citigroup Inc. Interest of controlled corporations, approved lending agent 476,710,493 (Note 3) Long position 6.90% 2.14% Interest of controlled corporations 90,231,788 (Note 3) Short position 1.30% 0.41% Approved lending agent 453,573,223 Lending pool 6.57% 2.04% The Capital Group Companies, Inc. Interest of controlled corporations 418,693,101 Long position 6.07% 1.88% BlackRock, Inc. Interest of controlled corporations 367,231,520 (Note 4) Long position 5.32% 1.65% Interest of controlled corporations 116,194,000 (Note 4) Short position 1.68% 0.52%
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30 PICC Property and Casualty Company Limited 2026 Interim Report Corporate Governance and Other Information Notes: 1. As at 30 June 2026, the Company has issued a total number of 15,343,471,470 domestic shares and a total number of 6,899,293,833 H shares. The total number of its issued shares is 22,242,765,303. 2. Among which, 1,294,000 H shares (Long position) and 1,518,000 H shares (Short position) were held through derivatives, categorised as held through physically settled listed derivatives; 28,000 H shares (Short position) were held through derivatives, categorised as held through cash settled listed derivatives; 1,480,730 H shares (Long position) and 1,909,101 H shares (Short position) were held through derivatives, categorised as held through physically settled unlisted derivatives; 21,326,210 H shares (Long position) and 33,342,000 H shares (Short position) were held through derivatives, categorised as held through cash settled unlisted derivatives. 3. Among which, 230,434 H shares (Long position) and 1,273,670 H shares (Short position) were held through derivatives, categorised as held through physically settled unlisted derivatives; 10,702,000 H shares (Long position) and 72,248,190 H shares (Short position) were held through derivatives, categorised as held through cash settled unlisted derivatives. 4. Among which, 338,000 H shares (Long position) and 78,216,000 H shares (Short position) were held through derivatives, categorised as held through cash settled unlisted derivatives. 5. The details of the shareholding interests of the companies directly or indirectly controlled by Citigroup Inc. are set out below: Name of controlled corporation Name of controlling person % control Number of shares Citicorp LLC Citigroup Inc. 100.00 Long position Short position 453,670,094 0 Citibank, N.A. Citicorp LLC 100.00 Long position Short position 453,670,094 0 Citigroup Global Markets Holdings Inc. Citigroup Inc. 100.00 Long position Short position 23,040,399 90,089,987 Citigroup Financial Products Inc. Citigroup Global Markets Holdings Inc. 100.00 Long position Short position 23,040,399 90,089,987 Citigroup Global Markets Hong Kong Limited Citigroup Financial Products Inc. 100.00 Long position Short position 133,563 1,135,449 Citigroup Global Markets Holdings Bahamas Limited Citigroup Financial Products Inc. 90.00 Long position Short position 22,906,836 88,954,538 Citigroup Global Markets Limited Citigroup Global Markets Holdings Bahamas Limited 100.00 Long position Short position 22,906,836 88,954,538 Citigroup Global Markets Holdings Inc. Citigroup Inc. 100.00 Long position Short position 0 141,801
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31 PICC Property and Casualty Company Limited 2026 Interim Report Corporate Governance and Other Information 6. The details of the shareholding interests of the companies directly or indirectly controlled by BlackRock, Inc. are set out below: Name of controlled corporation Name of controlling person % control Number of shares BlackRock Finance, Inc. BlackRock, Inc. 100.00 Long position Short position 367,231,520 116,194,000 Trident Merger, LLC BlackRock Finance, Inc. 100.00 Long position 4,404,138 BlackRock Investment Management, LLC Trident Merger, LLC 100.00 Long position 4,330,613 BlackRock Investment Management, LLC Trident Merger, LLC 100.00 Long position 73,525 BlackRock Holdco 2, Inc. BlackRock Finance, Inc. 100.00 Long position Short position 362,827,382 116,194,000 BlackRock Financial Management, Inc. BlackRock Holdco 2, Inc. 100.00 Long position Short position 360,454,866 58,916,000 BlackRock Financial Management, Inc. BlackRock Holdco 2, Inc. 100.00 Long position Short position 2,372,516 57,278,000 BlackRock Holdco 4, LLC BlackRock Financial Management, Inc. 100.00 Long position Short position 239,905,737 43,142,000 BlackRock Holdco 6, LLC BlackRock Holdco 4, LLC 90.00 Long position Short position 239,905,737 43,142,000 BlackRock Delaware Holdings Inc. BlackRock Holdco 6, LLC 100.00 Long position Short position 239,905,737 43,142,000 BlackRock Institutional Trust Company, National Association BlackRock Delaware Holdings Inc. 100.00 Long position Short position 70,406,064 43,142,000 BlackRock Fund Advisors BlackRock Delaware Holdings Inc. 100.00 Long position 169,499,673 BlackRock International Holdings, Inc. BlackRock Financial Management, Inc. 100.00 Long position Short position 120,549,129 15,774,000 BR Jersey International Holdings L.P . BlackRock International Holdings, Inc. 86.00 Long position Short position 114,405,729 15,774,000 BlackRock Lux Finco S.à r.l. BlackRock HK Holdco Limited 100.00 Long position 5,735,988 BlackRock Japan Holdings GK BlackRock Lux Finco S.à r.l. 100.00 Long position 5,735,988 BlackRock Japan Co., Ltd. BlackRock Japan Holdings GK 100.00 Long position 5,735,988 BlackRock Holdco 3, LLC BR Jersey International Holdings L.P . 100.00 Long position Short position 94,159,032 15,774,000
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32 PICC Property and Casualty Company Limited 2026 Interim Report Corporate Governance and Other Information Name of controlled corporation Name of controlling person % control Number of shares BlackRock Canada Holdings ULC BlackRock International Holdings, Inc. 100.00 Long position 6,143,400 BlackRock Asset Management Canada Limited BlackRock Canada Holdings ULC 100.00 Long position 6,143,400 BlackRock Australia Holdco Pty. Ltd. BR Jersey International Holdings L.P . 100.00 Long position 3,008,700 BlackRock Investment Management (Australia) Limited BlackRock Australia Holdco Pty. Ltd. 100.00 Long position 3,008,700 BlackRock (Singapore) Holdco Pte. Ltd. BR Jersey International Holdings L.P . 100.00 Long position 17,237,997 BlackRock HK Holdco Limited BlackRock (Singapore) Holdco Pte. Ltd. 100.00 Long position 15,751,997 BlackRock Asset Management North Asia Limited BlackRock HK Holdco Limited 100.00 Long position 10,016,009 BlackRock Cayman 1 LP BlackRock Holdco 3, LLC 100.00 Long position Short position 94,159,032 15,774,000 BlackRock Cayman West Bay Finco Limited BlackRock Cayman 1 LP 100.00 Long position Short position 94,159,032 15,774,000 BlackRock Cayman West Bay IV Limited BlackRock Cayman West Bay Finco Limited 100.00 Long position Short position 94,159,032 15,774,000 BlackRock Group Limited BlackRock Cayman West Bay IV Limited 90.00 Long position Short position 94,159,032 15,774,000 BlackRock Finance Europe Limited BlackRock Group Limited 100.00 Long position 18,524,477 BlackRock (Netherlands) B.V. BlackRock Finance Europe Limited 100.00 Long position 232,000 BlackRock (Netherlands) B.V. BlackRock Finance Europe Limited 100.00 Long position 2,613,028 BlackRock International Limited BlackRock Group Limited 100.00 Long position 646,000 BlackRock Group Limited-Luxembourg Branch BlackRock Group Limited 100.00 Long position Short position 74,988,555 15,774,000 BlackRock Luxembourg Holdco S.à r.l. BlackRock Group Limited- Luxembourg Branch 100.00 Long position Short position 74,988,555 15,774,000 BlackRock Investment Management Ireland Holdings Unlimited Company BlackRock Luxembourg Holdco S.à r.l. 100.00 Long position 74,520,747
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33 PICC Property and Casualty Company Limited 2026 Interim Report Corporate Governance and Other Information Name of controlled corporation Name of controlling person % control Number of shares BlackRock Asset Management Ireland Limited BlackRock Investment Management Ireland Holdings Unlimited Company 100.00 Long position 74,520,747 BLACKROCK (Luxembourg) S.A. BlackRock Luxembourg Holdco S.à r.l. 100.00 Long position Short position 377,808 15,774,000 BlackRock Investment Management (UK) Limited BlackRock Finance Europe Limited 100.00 Long position 5,811,449 BlackRock Investment Management (UK) Limited BlackRock Finance Europe Limited 100.00 Long position 9,868,000 BlackRock (Netherlands) B.V. – German Branch – Frankfurt BlackRock BlackRock (Netherlands) B.V. 100.00 Long position 232,000 BlackRock Asset Management Deutschland AG BlackRock (Netherlands) B.V. – German Branch – Frankfurt BlackRock 100.00 Long position 232,000 BlackRock Fund Managers Limited BlackRock Investment Management (UK) Limited 100.00 Long position 5,811,449 BlackRock Life Limited BlackRock International Limited 100.00 Long position 646,000 BlackRock (Singapore) Limited BlackRock (Singapore) Holdco Pte. Ltd. 100.00 Long position 1,486,000 BlackRock UK Holdco Limited BlackRock Luxembourg Holdco S.à r.l. 100.00 Long position 90,000 BlackRock Asset Management Schweiz AG BlackRock UK Holdco Limited 100.00 Long position 90,000 EG Holdings Blocker, LLC BlackRock Investment Management, LLC 100.00 Long position 4,330,613 Amethyst Intermediate, LLC BlackRock Investment Management, LLC 100.00 Long position 4,330,613 Aperio Holdings, LLC Amethyst Intermediate, LLC 60.00 Long position 4,330,613 Aperio Holdings, LLC EG Holdings Blocker, LLC 40.00 Long position 4,330,613 Aperio Group, LLC Aperio Holdings, LLC 100.00 Long position 4,330,613 Save as disclosed above, the Company is not aware of any other persons having any interests or short positions in the shares or underlying shares of the Company that were required to be disclosed to the Company and the Hong Kong Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO and recorded in the register as required to be kept under Section 336 of the SFO, or being substantial shareholders of the Company as at 30 June 2026.
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34 PICC Property and Casualty Company Limited 2026 Interim Report Corporate Governance and Other Information PROPOSED INTERIM DIVIDEND AND CLOSURE OF REGISTER OF H SHARE MEMBERS The Board proposed the distribution of an interim dividend of RMB0.34 per share (inclusive of applicable tax) for the six months ended 30 June 2026. The total amount of dividend was RMB7,563 million. The above proposal is subject to the consideration and approval at the forthcoming extraordinary general meeting. The specific arrangement regarding announcement and distribution of the interim dividend, relevant arrangement for the closure of registration for H share members, etc. will be disclosed separately in the circular for the extraordinary general meeting by the Company. If the declaration of interim dividend is approved at the shareholders ’ general meeting of the Company, the interim dividend is expected to be paid on 6 November 2026. To the knowledge of the Company, there has been no arrangement under which any shareholder has waived or agreed to waive any dividend. WITHHOLDING AND PAYMENT OF DIVIDEND INCOME TAX Pursuant to the regulations of relevant PRC laws and regulations and regulatory documents on taxation, the Company shall, as a withholding agent, withhold and pay income tax on the dividend, including withholding and payment of enterprise income tax on behalf of overseas non-resident enterprise shareholders, individual income tax on behalf of overseas individual shareholders and individual income tax on behalf of domestic individual shareholders investing through China-Hong Kong Stock Connect, in the distribution of the interim dividend to H shareholders of the Company for the six months ended 30 June 2026. Particulars of withholding and payment of income tax on dividend and information for H shareholders of the Company to obtain relevant relief from taxation will be disclosed separately in the circular of the extraordinary general meeting by the Company. PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY The Company and its subsidiaries did not purchase, sell or redeem any of the Company ’s listed securities (including sale of treasury shares) in the first half of 2026. As at 30 June 2026, the Company and its subsidiaries did not hold any treasury shares. CORPORATE GOVERNANCE During the period from 1 January 2026 to the date of this interim report, the Company has complied with all the code provisions of the Corporate Governance Code. REVIEW OF INTERIM RESULTS Ernst & Young, the Company ’s auditor, and the Audit Committee of the Company have reviewed the unaudited interim condensed consolidated financial information of the Company and its subsidiaries for the six months ended 30 June 2026.
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35 PICC Property and Casualty Company Limited 2026 Interim Report Report on Review of Interim Condensed Consolidated Financial Information To the Board of Directors of PICC Property and Casualty Company Limited (Incorporated in the People ’s Republic of China with limited liability) INTRODUCTION We have reviewed the interim financial information set out on pages 36 to 79, which comprises the interim condensed consolidated statement of financial position of PICC Property and Casualty Company Limited (the “Company ”) and its subsidiaries (together, the “Group”) as at 30 June 2026 and the interim condensed consolidated income statement, the interim condensed consolidated statements of comprehensive income, changes in equity and cash flows for the six-month period then ended, and explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions thereof and Hong Kong Accounting Standard 34 Interim Financial Reporting ( “HKAS 34 ”) as issued by the Hong Kong Institute of Certified Public Accountants ( “HKICPA”). The directors of the Company are responsible for the preparation and presentation of this interim financial information in accordance with HKAS 34. Our responsibility is to express a conclusion on this interim financial information based on our review. Our report is made solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. SCOPE OF REVIEW We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity as issued by the HKICPA. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with HKAS 34. Ernst & Young Certified Public Accountants Hong Kong 28 August 2026
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36 PICC Property and Casualty Company Limited 2026 Interim Report Interim Condensed Consolidated Income Statement FOR THE SIX MONTHS ENDED 30 JUNE 2026 (All amounts expressed in RMB million unless otherwise specified) Six months ended Six months ended Notes 30 June 2026 30 June 2025 (Unaudited) (Unaudited) Insurance revenue 4 254,617 249,040 Insurance service expenses 4 (231,295) (227,806) Net expenses from reinsurance contracts held (4,248) (4,349) INSURANCE SERVICE RESULT 19,074 16,885 Finance expenses from insurance contracts issued (4,246) (4,415) Finance income from reinsurance contracts held 548 545 Interest income from financial assets not measured at fair value through profit or loss 5 5,729 6,080 Other investment income 6 17,882 7,901 Credit impairment (losses)/reversals 7 (35) 19 Other (expenses)/income, net (660) 175 Other finance costs 8 (519) (460) Other operating expenses 9 (1,505) (1,386) Share of profit or loss of associates 4,019 3,617 Foreign exchange losses, net (258) (57) PROFIT BEFORE INCOME TAX 40,029 28,904 Income tax expenses 10 (7,745) (4,449) NET PROFIT FOR THE PERIOD 32,284 24,455 Attributable to: Owners of the parent 32,296 24,454 Non-controlling interests (12) 1 Basic earnings per share 11 RMB1.452 RMB1.099 Diluted earnings per share 11 RMB1.452 RMB1.099 The accompanying notes form an integral part of the interim condensed consolidated financial information.
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37 PICC Property and Casualty Company Limited 2026 Interim Report Interim Condensed Consolidated Statement of Comprehensive Income FOR THE SIX MONTHS ENDED 30 JUNE 2026 (All amounts expressed in RMB million unless otherwise specified) Six months ended Six months ended 30 June 2026 30 June 2025 (Unaudited) (Unaudited) NET PROFIT FOR THE PERIOD 32,284 24,455 OTHER COMPREHENSIVE INCOME Items that may be reclassified to profit or loss in subsequent periods: Finance expenses from insurance contracts issued (259) 1,007 Finance income from reinsurance contracts held 63 (137) Debt instruments measured at fair value through other comprehensive income Changes in fair value 1,981 147 Reclassification of gains to profit or loss upon disposals (15) (652) Changes in impairment allowance recorded in profit or loss 1 2 Income tax effect (426) (97) Share of other comprehensive income of associates 1,043 (998) NET OTHER COMPREHENSIVE INCOME THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS 2,388 (728) Items that will not be reclassified to profit or loss in subsequent periods: Gains on revaluation of investment properties and right-of-use assets upon transfer to investment properties 133 69 Changes in fair value of equity instruments at fair value through other comprehensive income (9,009) 5,234 Income tax effect 2,146 (1,282) Share of other comprehensive income of associates (449) 64 NET OTHER COMPREHENSIVE INCOME THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS (7,179) 4,085 OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX (4,791) 3,357 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 27,493 27,812 Attributable to: Owners of the parent 27,503 27,785 Non-controlling interests (10) 27 The accompanying notes form an integral part of the interim condensed consolidated financial information.
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38 PICC Property and Casualty Company Limited 2026 Interim Report Interim Condensed Consolidated Statement of Financial Position AS AT 30 JUNE 2026 (All amounts expressed in RMB million unless otherwise specified) Notes 30 June 2026 31 December 2025 (Unaudited) (Audited) ASSETS Cash and cash equivalents 13 20,222 23,273 Financial investments: Financial assets measured at amortised cost 14 152,485 150,493 Financial assets measured at fair value through other comprehensive income 15 280,880 286,708 Financial assets measured at fair value through profit or loss 16 171,703 149,630 Insurance contract assets 17 390 764 Reinsurance contract assets 17 36,677 43,129 Term deposits 18 67,472 64,482 Investments in associates 19 76,352 72,823 Investment properties 20 6,908 6,934 Property and equipment 21 23,857 24,581 Right-of-use assets 22 4,921 5,038 Deferred income tax assets 16,079 9,499 Prepayments and other assets 23 26,913 23,144 TOTAL ASSETS 884,859 860,498 LIABILITIES Securities sold under agreements to repurchase 41,405 65,779 Income tax payable 5,502 4 Investment contract liabilities 24 1,723 1,725 Insurance contract liabilities 17 451,082 433,224 Reinsurance contract liabilities 17 75 31 Bonds payable 25 12,246 12,076 Lease liabilities 1,077 1,126 Accruals and other liabilities 26 65,388 57,830 TOTAL LIABILITIES 578,498 571,795 The accompanying notes form an integral part of the interim condensed consolidated financial information.
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39 PICC Property and Casualty Company Limited 2026 Interim Report Interim Condensed Consolidated Statement of Financial Position Notes 30 June 2026 31 December 2025 (Unaudited) (Audited) EQUITY Issued capital 27 22,242 22,242 Reserves 281,446 263,732 Equity attributable to owners of the parent 303,688 285,974 Non-controlling interests 2,673 2,729 TOTAL EQUITY 306,361 288,703 TOTAL LIABILITIES AND EQUITY 884,859 860,498 The accompanying notes form an integral part of the interim condensed consolidated financial information.
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40 PICC Property and Casualty Company Limited 2026 Interim Report Interim Condensed Consolidated Statement of Changes In Equity FOR THE SIX MONTHS ENDED 30 JUNE 2026 (All amounts expressed in RMB million unless otherwise specified) For the six months ended 30 June 2026 (Unaudited) Attributable to owners of the parent Reserves* Issued capital Share premium and other reserves Asset revaluation reserve** Revaluation reserve of financial assets at fair value through other comprehensive income Insurance finance reserve Surplus reserve*** General risk reserve Catastrophic loss reserve Share of other comprehensive income of associates Retained earnings Sub-total Non- controlling interests Total equity 1 January 2026 22,242 11,329 5,459 18,578 (893) 94,817 33,540 283 (3,071) 103,690 285,974 2,729 288,703 Total comprehensive income Net profit for the period – – – – – – – – – 32,296 32,296 (12) 32,284 Other comprehensive income – – 99 (5,339) (147) – – – 594 – (4,793) 2 (4,791) Dividends declared (note 12) – – – – – – – – – (9,787) (9,787) (48) (9,835) Capital invested and reduced by holders – – – – – – – – – – – 2 2 Reclassification of gains on equity instruments measured at fair value through other comprehensive income to retained earnings upon disposals – – – (1,295) – – – – – 1,295 – – – Others – (2) – – – – – – (131) 131 (2) – (2) 30 June 2026 (Unaudited) 22,242 11,327 5,558 11,944 (1,040) 94,817 33,540 283 (2,608) 127,625 303,688 2,673 306,361 * The reserve accounts comprise the consolidated reserves of RMB281,446 million in the interim condensed consolidated statement of financial position as at 30 June 2026. ** The asset revaluation reserve arose from the change in use from owner-occupied properties to investment properties. *** This account contains both statutory and discretionary surplus reserves. The accompanying notes form an integral part of the interim condensed consolidated financial information.
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41 PICC Property and Casualty Company Limited 2026 Interim Report Interim Condensed Consolidated Statement of Changes In Equity For the six months ended 30 June 2025 (Unaudited) Attributable to owners of the parent Reserves* Issued capital Share premium and other reserves Asset revaluation reserve** Revaluation reserve of financial assets at fair value through other comprehensive income Insurance finance reserve Surplus reserve*** General risk reserve Catastrophic loss reserve Share of other comprehensive income of associates Retained earnings Sub-total Non- controlling interests Total equity 1 January 2025 22,242 11,362 5,299 20,998 (1,788) 90,566 29,289 258 (2,359) 82,057 257,924 2,698 260,622 Total comprehensive income Net profit for the period – – – – – – – – – 24,454 24,454 1 24,455 Other comprehensive income – – 26 3,586 653 – – – (934) – 3,331 26 3,357 Dividends declared (note 12) – – – – – – – – – (7,385) (7,385) – (7,385) Others – – – (2,067) – – – – (317) 2,384 – 12 12 30 June 2025 (Unaudited) 22,242 11,362 5,325 22,517 (1,135) 90,566 29,289 258 (3,610) 101,510 278,324 2,737 281,061 * The reserve accounts comprise the consolidated reserves of RMB256,082 million in the interim condensed consolidated statement of financial position as at 30 June 2025. ** The asset revaluation reserve arose from the change in use from owner-occupied properties to investment properties. *** This account contains both statutory and discretionary surplus reserves. The accompanying notes form an integral part of the interim condensed consolidated financial information.
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42 PICC Property and Casualty Company Limited 2026 Interim Report Interim Condensed Consolidated Statement of Cash Flows FOR THE SIX MONTHS ENDED 30 JUNE 2026 (All amounts expressed in RMB million unless otherwise specified) Six months ended Six months ended Note 30 June 2026 30 June 2025 (Unaudited) (Unaudited) NET CASH FLOWS GENERATED FROM OPERATING ACTIVITIES 27,577 26,891 NET CASH FLOWS USED IN INVESTING ACTIVITIES Interest received 6,572 7,639 Rental income received from investment properties 198 200 Dividends received from financial investments 3,579 3,160 Payments for capital expenditure (814) (730) Proceeds from disposals and maturities of financial investments 147,657 92,457 Payments for purchase of financial investments (160,857) (124,975) Dividends received from associates 1,082 906 Proceeds from disposal of property and equipment, intangible assets and other assets 53 109 (Increase)/Decrease in term deposits, net (3,150) 9,577 Subtotal (5,680) (11,657) NET CASH FLOWS USED IN FINANCING ACTIVITIES Payment for redemption of capital supplementary bonds – (8,000) Decrease in securities sold under agreements to repurchase, net (24,369) (8,312) Payments of lease liabilities (300) (467) Interest paid (337) (604) Dividends paid (48) – Capital increase from non-controlling interests 2 12 Cash received/(paid) related to non-controlling interests of consolidated structured entities, net 150 (262) Subtotal (24,902) (17,633) The accompanying notes form an integral part of the interim condensed consolidated financial information.
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43 PICC Property and Casualty Company Limited 2026 Interim Report Interim Condensed Consolidated Statement of Cash Flows Six months ended Six months ended Note 30 June 2026 30 June 2025 (Unaudited) (Unaudited) EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (43) (4) NET DECREASE IN CASH AND CASH EQUIVALENTS (3,048) (2,403) Cash and cash equivalents at beginning of the period 23,268 19,363 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 13 20,220 16,960 ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS Demand deposits and cash on hand 13 10,787 9,463 Securities purchased under resale agreements with original maturity of no more than three months 13 9,433 7,497 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 13 20,220 16,960 The accompanying notes form an integral part of the interim condensed consolidated financial information.
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44 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information FOR THE SIX MONTHS ENDED 30 JUNE 2026 (All amounts expressed in RMB million unless otherwise specified) 1. CORPORATE INFORMATION PICC Property and Casualty Company Limited (the “Company ”) is a joint stock company with limited liability incorporated in the People ’s Republic of China (the “PRC”). The registered office of the Company is located at Tower 2, No. 2 Jianguomenwai Avenue, Chaoyang District, Beijing 100022, the PRC. The Company is listed on The Stock Exchange of Hong Kong Limited. The parent and the ultimate holding company of the Company is The People ’s Insurance Company (Group) of China Limited (the “PICC Group ”), which is incorporated in the PRC and listed on The Stock Exchange of Hong Kong Limited and the Shanghai Stock Exchange. The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in property and casualty insurance business. Details of the operating segments are set out in note 3 to the interim condensed consolidated financial information. The interim condensed consolidated financial information is presented in Renminbi ( “RMB”), which is also the functional currency of the Company, and all values are rounded to the nearest million except when otherwise indicated. 2. BASIS OF PREPARATION The interim condensed consolidated financial information for the six months ended 30 June 2026 has been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting as issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”) as well as with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Other than the changes in accounting policies resulting from application of amendments to Hong Kong Financial Reporting Standards ( “HKFRSs ”), the accounting policies and methods of computation used in the interim condensed consolidated financial information for the six months ended 30 June 2026 are the same as those presented in the Group ’s annual consolidated financial statements for the year ended 31 December 2025. The interim condensed consolidated financial information does not include all the information and disclosures required in the annual consolidated financial statements, and therefore should be read in conjunction with the Group ’s annual consolidated financial statements for the year ended 31 December 2025.
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45 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 2. BASIS OF PREPARATION (CONTINUED) (1) Application of new standards and amendments to HKFRS Accounting Standards In the current interim period, the Group has applied, for the first time, the following amendments which are mandatory effective for the annual period beginning on or after 1 January 2026 for the preparation of the Group ’s interim condensed consolidated financial information: Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity Annual Improvements to HKFRS Accounting Standards – Volume 11 Amendments to HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 The adoption of the above amendments had no material impact on the Group ’s interim condensed consolidated financial information. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
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46 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 3. OPERATING SEGMENT INFORMATION The Group ’s operating segments are presented in a manner consistent with internal management reporting provided to the chief operating decision maker for deciding how to allocate resources and for assessing performance. For management purposes, the Group is organised into business units based on their products and services and has six reportable segments other than the corporate and others as follows: (i) the motor vehicle segment which provides insurance products covering motor vehicles; (ii) the accidental injury and health segment which provides insurance products covering accidental injuries and medical expenses; (iii) the agriculture segment which provides insurance products covering agriculture business; (iv) the liability segment which provides insurance products covering policyholders ’ liabilities; (v) the commercial property segment which provides insurance products covering commercial properties; and (vi) the others which mainly represent insurance products related to cargo, credit and surety, household property, special risks, marine hull and construction. Management monitors the results of the Group ’s operating segments separately for the purpose of performance assessment. Segment performance is evaluated based on reportable segment result. The corporate and other segment includes the income and expenses from reinsurance contracts issued and held, the income and expenses from investment activities, other income, unallocated income and expenses of the Group. Insurance business assets and liabilities directly attributable to operating segments of the insurance business will be allocated to each segment. Investment assets and liabilities will be allocated to the corporate and others together with property and equipment, investment properties, prepaid land premiums, other assets, bonds payable, income tax payable, deferred income tax assets and other payables, which are not allocated further. Geographical information is not presented as the Group ’s customers, business, assets and liabilities are mainly located and operations are mainly carried out in the Chinese Mainland for relevant entities. There was no inter-segment transaction for the six months ended 30 June 2026 and 30 June 2025.
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47 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 3. OPERATING SEGMENT INFORMATION (CONTINUED) The segment income statements for the six months ended 30 June 2026 (unaudited) are as follows: Insurance Motor vehicle Accidental injury and health Agriculture Liability Commercial property Others Corporate and others Total Insurance revenue 153,150 35,248 21,404 20,137 8,715 15,002 961 254,617 Insurance service expenses (140,325) (34,663) (19,026) (19,938) (5,974) (10,065) (1,304) (231,295) Net expenses from reinsurance contracts held – – – – – – (4,248) (4,248) Insurance service result 12,825 585 2,378 199 2,741 4,937 (4,591) 19,074 Finance expenses from insurance contracts issued (2,573) (435) (20) (533) (192) (408) (85) (4,246) Finance income from reinsurance contracts held – – – – – – 548 548 Interest income from financial assets not measured at fair value through profit or loss – – – – – – 5,729 5,729 Other investment income – – – – – – 17,882 17,882 Credit impairment losses – – – – – – (35) (35) Other expenses, net – – – – – – (660) (660) Other finance costs – – – – – – (519) (519) Other operating expenses – – – – – – (1,505) (1,505) Share of profit or loss of associates – – – – – – 4,019 4,019 Foreign exchange losses, net – – – – – – (258) (258) Profit/(Loss) before income tax 10,252 150 2,358 (334) 2,549 4,529 20,525 40,029 Income tax expenses – – – – – – (7,745) (7,745) Net profit/(loss) for the period Segment operating result 10,252 150 2,358 (334) 2,549 4,529 12,780 32,284
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48 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 3. OPERATING SEGMENT INFORMATION (CONTINUED) The segment income statements for the six months ended 30 June 2025 (unaudited) are as follows: Insurance Motor vehicle Accidental injury and health Agriculture Liability Commercial property Others Corporate and others Total Insurance revenue 150,272 30,974 23,169 18,632 8,421 17,537 35 249,040 Insurance service expenses (138,565) (31,176) (19,729) (18,368) (6,215) (13,525) (228) (227,806) Net expenses from reinsurance contracts held – – – – – – (4,349) (4,349) Insurance service result 11,707 (202) 3,440 264 2,206 4,012 (4,542) 16,885 Finance expenses from insurance contracts issued (2,781) (424) (12) (551) (211) (382) (54) (4,415) Finance income from reinsurance contracts held – – – – – – 545 545 Interest income from financial assets not measured at fair value through profit or loss – – – – – – 6,080 6,080 Other investment income – – – – – – 7,901 7,901 Credit impairment reversals – – – – – – 19 19 Other income, net – – – – – – 175 175 Other finance costs – – – – – – (460) (460) Other operating expenses – – – – – – (1,386) (1,386) Share of profit or loss of associates – – – – – – 3,617 3,617 Foreign exchange losses, net – – – (1) (2) (11) (43) (57) Profit/(Loss) before income tax 8,926 (626) 3,428 (288) 1,993 3,619 11,852 28,904 Income tax expenses – – – – – – (4,449) (4,449) Net profit/(loss) for the period Segment operating result 8,926 (626) 3,428 (288) 1,993 3,619 7,403 24,455
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49 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 3. OPERATING SEGMENT INFORMATION (CONTINUED) The segment assets and liabilities of the Group at 30 June 2026 and other segment information for the six months ended 30 June 2026 are as follows: Insurance Motor vehicle Accidental injury and health Agriculture Liability Commercial property Others Corporate and others Total 30 June 2026 (Unaudited) Segment assets 135 1,340 396 975 1,040 1,546 879,427 884,859 Segment liabilities 281,199 52,230 8,369 52,726 20,726 35,569 127,679 578,498 For the six months ended 30 June 2026 (Unaudited) Other segment information: Capital expenditures 396 148 119 67 35 49 – 814 Depreciation and amortisation 1,185 406 167 187 43 178 18 2,184
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50 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 3. OPERATING SEGMENT INFORMATION (CONTINUED) The segment assets and liabilities of the Group at 31 December 2025 and other segment information for the six months ended 30 June 2025 are as follows: Insurance Motor vehicle Accidental injury and health Agriculture Liability Commercial property Others Corporate and others Total 31 December 2025 (Audited) Segment assets 111 1,202 698 839 1,034 1,314 855,300 860,498 Segment liabilities 281,184 44,294 41 49,777 20,421 36,182 139,896 571,795 For the six months ended 30 June 2025 (Unaudited) Other segment information: Capital expenditures 364 119 111 56 31 49 – 730 Depreciation and amortisation 1,019 304 152 147 41 149 2 1,814
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51 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 4. INSURANCE REVENUE AND INSURANCE SERVICE EXPENSES The following table discloses insurance revenue and insurance service expenses: Six months ended Six months ended 30 June 2026 30 June 2025 Insurance revenue Contracts not measured under the premium allocation approach 2,105 2,420 Contracts measured under the premium allocation approach 252,512 246,620 Total insurance revenue 254,617 249,040 Insurance service expenses The liabilities for remaining coverage 43,166 44,371 The liabilities for incurred claims 188,129 183,435 Total insurance service expenses 231,295 227,806 An analysis of insurance revenue and contractual service margin ( “CSM”) for insurance contracts issued by transition approach is included in the following tables. Six months ended Six months ended 30 June 2026 30 June 2025 Insurance revenue Contracts measured under the fair value approach at transition 311 544 Contracts measured under the modified retrospective approach at transition 35 71 Other insurance contracts 254,271 248,425 Total 254,617 249,040 30 June 2026 31 December 2025 CSM Contracts measured under the fair value approach at transition 233 251 Other insurance contracts 2 3 Total 235 254
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52 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 5. INTEREST INCOME FROM FINANCIAL ASSETS NOT MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS Six months ended Six months ended 30 June 2026 30 June 2025 Financial assets measured at amortised cost 2,456 2,623 Debt instruments measured at fair value through other comprehensive income 2,227 2,105 Current and term deposits at amortised cost 1,046 1,352 Total 5,729 6,080 6. OTHER INVESTMENT INCOME Six months ended Six months ended 30 June 2026 30 June 2025 Operating lease income from investment properties 198 200 Interest income from financial assets at fair value through profit or loss 805 737 Dividends: Equity instruments measured at fair value through other comprehensive income 3,049 2,937 Financial assets measured at fair value through profit or loss 580 404 Subtotal 3,629 3,341 Unrealised gains on investments: Financial assets measured at fair value through profit or loss 4,095 1,008 Realised gains on investments: Financial assets measured at fair value through profit or loss 9,221 2,114 Debt instruments measured at fair value through other comprehensive income 15 652 Financial assets measured at amortised cost 1 – Subtotal 9,237 2,766 Losses on fair value changes of investment properties (note 20) (82) (151) Total 17,882 7,901
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53 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 7. CREDIT IMPAIRMENT (LOSSES)/REVERSALS Six months ended Six months ended 30 June 2026 30 June 2025 Financial assets measured at amortised cost 60 37 Term deposits 4 23 Debt instruments measured at fair value through other comprehensive income (2) (4) Other financial assets (97) (37) Total (35) 19 8. OTHER FINANCE COSTS Six months ended Six months ended 30 June 2026 30 June 2025 Interest on securities sold under agreements to repurchase 333 394 Interest on bonds payable 170 39 Interest on lease liabilities 16 20 Interest on investment contracts – 7 Total 519 460
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54 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 9. OTHER OPERATING EXPENSES The following expenses for the six months ended 30 June 2026 and 30 June 2025 were analysed by nature. Expenses incurred that were fulfilment cash flows are not presented in other operating expenses, but are either presented as insurance service expenses or recognised as insurance acquisition cash flows in accordance with HKFRS 17. Six months ended Six months ended 30 June 2026 30 June 2025 Employee expenses (including directors ’, supervisors ’ and senior management ’s remunerations) 21,126 21,062 Salaries, allowances and performance related bonuses 18,299 18,453 Pension scheme contributions 2,827 2,609 Commissions 17,753 18,719 Labor service fee 7,284 6,332 Business publicity expenses 5,095 5,555 Consulting fee 1,873 1,756 Depreciation of property and equipment 1,241 903 Taxes and other surcharges 1,077 1,020 Amortisation of intangible assets 510 457 Depreciation of right-of-use assets 411 400 Other expenses 5,511 6,466 Subtotal 61,881 62,670 Less: Insurance acquisition cash flows (40,708) (41,436) Less: Other incurred expenses directly attributable to insurance contracts (19,668) (19,848) Total 1,505 1,386
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55 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 10. INCOME TAX EXPENSES The provision for income tax expenses is calculated based on the statutory rate of 25% in accordance with the relevant PRC income tax rules and regulations during each period. Starting from 2020, the Company ’s branches in some western provinces and Hainan province have been entitled to the preferential tax rate of 15% for eligible taxable income. According to relevant tax regulations, the preferential tax rates of some western provinces and Hainan province are applicable until 2030 and 2027, respectively. Six months ended Six months ended 30 June 2026 30 June 2025 Current tax 12,192 8,772 Deferred tax (4,447) (4,323) Total 7,745 4,449 11. EARNINGS PER SHARE (1) Basic earnings per share The calculation of basic earnings per share attributable to owners of the parent is based on the following: Six months ended Six months ended 30 June 2026 30 June 2025 Earnings: Net profit attributable to owners of the parent 32,296 24,454 Shares: Weighted average number of ordinary shares in issue (in million shares) (note 27) 22,242 22,242 Basic earnings per share (RMB yuan) 1.452 1.099 Basic earnings per share amounts were calculated by dividing the profit attributable to owners of the parent by the weighted average number of ordinary shares in issue for the six months ended 30 June 2026 and 30 June 2025. (2) Diluted earnings per share For the six months ended 30 June 2026 and 30 June 2025, the Company did not hold any dilutive potential ordinary shares; therefore, the diluted earnings per share amounts were the same as the basic earnings per share amounts.
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56 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 12. DIVIDENDS Six months ended Six months ended 30 June 2026 30 June 2025 Dividends recognised as distribution during the period: Final dividend for the year 2025: RMB0.44 per ordinary share 9,787 – Final dividend for the year 2024: RMB0.332 per ordinary share – 7,385 Pursuant to the shareholders ’ approval at the general meeting on 25 June 2026, a final dividend of RMB0.44 per ordinary share totalling RMB9,787 million in respect of the year ended 31 December 2025 was declared. Pursuant to the shareholders ’ approval at the general meeting on 30 October 2025, an interim dividend of RMB0.24 per ordinary share totalling RMB5,338 million in respect of the six months ended 30 June 2025 was declared. Pursuant to the shareholders ’ approval at the general meeting on 27 June 2025, a final dividend of RMB0.332 per ordinary share totalling RMB7,385 million in respect of the year ended 31 December 2024 was declared. 13. CASH AND CASH EQUIVALENTS 30 June 2026 31 December 2025 Demand deposits and cash on hand 10,787 9,073 Securities purchased under resale agreements with original maturity of no more than three months 9,433 14,195 Subtotal 20,220 23,268 Add: Interest receivable 2 5 Less: Provision for impairment – – Total 20,222 23,273 Cash and cash equivalents by accounting categories: Financial assets measured at amortised cost 20,222 23,273 For securities purchased under resale agreements, counterparties are required to pledge certain bonds as collaterals. The securities purchased are not recognised on the interim condensed consolidated statement of financial position. The carrying amounts of cash and cash equivalents approximated to the fair values at 30 June 2026 and 31 December 2025.
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57 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 14. FINANCIAL ASSETS MEASURED AT AMORTISED COST 30 June 2026 31 December 2025 Bond investments: Government bonds 80,610 69,015 Corporate bonds 12,628 13,950 Financial bonds 8,712 9,932 Long-term debt investment schemes 24,018 28,076 Trust plans 18,727 21,658 Project support schemes 8,339 8,450 Others 386 397 Subtotal 153,420 151,478 Less: Provision for impairment (935) (985) Total 152,485 150,493 15. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 30 June 2026 31 December 2025 Debt instruments: Bond investments Government bonds 102,875 95,348 Corporate bonds 54,263 53,365 Financial bonds 27,768 21,944 Project support schemes 108 108 Subtotal 185,014 170,765 Including: Amortised cost 176,130 163,847 Accumulated fair value changes 8,884 6,918 Equity instruments: Listed shares 50,933 55,180 Perpetual bonds 20,157 35,117 Perpetual trust plans and perpetual debt plans 18,020 18,877 Preferred shares 6,756 6,769 Subtotal 95,866 115,943 Including: Cost 89,153 98,513 Accumulated fair value changes 6,713 17,430 Total 280,880 286,708
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58 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 15. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (CONTINUED) At 30 June 2026, the impairment provisions of financial assets measured at fair value through other comprehensive income were RMB137 million (31 December 2025: RMB136 million). Certain investments in equity instruments that are not held for trading were designated at fair value through other comprehensive income. The equity instruments measured at fair value through other comprehensive income, designated by the Group, are non-trading equity investments with the primary objective of being held for long term or obtaining dividends during the holding period. The dividend income recognised by the Group for such equity instruments for the six months ended 30 June 2026 was RMB3,049 million (for the six months ended 30 June 2025: RMB2,937 million). For the six months ended 30 June 2026, the Group disposed of equity instruments designated at fair value through other comprehensive income amounting to RMB24,469 million (for the six months ended 30 June 2025: RMB4,800 million). The cumulative earnings net of taxes of such equity instruments transferred into retained earnings from the revaluation reserve upon the disposals were RMB1,295 million during the period (for the six months ended 30 June 2025: RMB2,067 million). 16. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS 30 June 2026 31 December 2025 Bond investments: Financial bonds 46,121 43,343 Corporate bonds 2,650 2,421 Government bonds 570 519 Mutual funds 48,916 35,762 Listed shares 38,155 31,366 Equity investment funds and plans 16,454 16,203 Project support schemes 7,301 6,257 Unlisted shares 4,127 4,253 Asset management products 2,553 3,352 Perpetual bonds 2,230 4,315 Debt investment schemes 1,305 1,288 Others 1,321 551 Total 171,703 149,630
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59 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 17. INSURANCE CONTRACTS Analysis by liabilities for remaining coverage and liabilities for incurred claims of insurance contracts issued: 30 June 2026 31 December 2025 Insurance contract assets (390) (764) Insurance contract liabilities 451,082 433,224 Net insurance contract liabilities 450,692 432,460 Liabilities for remaining coverage 191,738 192,042 Excluding loss component 180,373 181,611 Loss component 11,365 10,431 Liabilities for incurred claims 258,954 240,418 Analysis by assets for remaining coverage and assets for incurred claims of reinsurance contracts held: 30 June 2026 31 December 2025 Reinsurer ’s share of the assets for remaining coverage (7,664) (1,338) Excluding loss-recovery component (8,419) (2,179) Loss-recovery component 755 841 Reinsurer ’s share of the assets for incurred claims 44,266 44,436 Net reinsurance contract assets 36,602 43,098 18. TERM DEPOSITS The original maturities of the term deposits are as follows: 30 June 2026 31 December 2025 More than 3 months but within 12 months 168 101 More than 1 year but within 2 years 400 400 More than 2 years but within 3 years 17,315 20,755 More than 3 years 48,313 41,790 Subtotal 66,196 63,046 Add: Interest receivable 1,335 1,499 Less: Provision for impairment (59) (63) Total 67,472 64,482
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60 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 19. INVESTMENTS IN ASSOCIATES 30 June 2026 31 December 2025 Associates Cost of investments in associates 39,857 39,857 Share of post-acquisition profit and other equity movements, less dividends received or receivable 36,557 33,028 Subtotal 76,414 72,885 Less: Provision for impairment (62) (62) Total 76,352 72,823 As at 30 June 2026, the carrying amount of the Group ’s investment in Hua Xia Bank Co., Limited (“Hua Xia Bank ”, a material associate of the Group) was RMB51,861 million (31 December 2025: RMB51,113 million). As at 30 June 2026, the market value of the Group ’s investment in Hua Xia Bank was RMB16,379 million (31 December 2025: RMB17,610 million), which was below the carrying amount. Considering that an impairment indicator exists, the Group performed an impairment test, which confirmed that there was no impairment of the investment at 30 June 2026 as the recoverable amount as determined by a value-in-use ( “VIU”) approach was higher than the carrying amount. The impairment test was performed by comparing the recoverable amount of Hua Xia Bank, determined by a VIU calculation, with its carrying amount. The VIU calculation uses discounted cash flow projections based on management ’s best estimates of future earnings available to ordinary shareholders prepared in accordance with HKAS 36.
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61 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 20. INVESTMENT PROPERTIES Six months ended Six months ended 30 June 2026 30 June 2025 As at 1 January 6,934 7,234 Transferred from property and equipment and right-of-use assets 100 777 Fair value gains on revaluation of investment properties transferred from property and equipment and right-of-use assets 133 69 Decrease in fair value of investment properties (note 6) (82) (151) Transferred to property and equipment and right-of-use assets (177) – As at 30 June 6,908 7,929 At 30 June 2026, the fair values were determined based on the valuation carried out by external independent valuers, Shenzhen Worldunion Appraisal Co., Ltd. and Jones Lang LaSalle (Beijing) Real Estate Assets Appraisal & Consultancy Co., Ltd.. Valuations were carried out based on the following two approaches: (i) The Group uses the income approach, determining the fair values at the valuation date by discounting the target properties ’ rental income derived from existing lease agreements and the potential rental income projected by reference to the current market rental status, at an appropriate capitalisation rate; or (ii) The Group uses the direct comparison approach, comparing the amounts of target properties with those of the similar properties that had recent market transactions, adjusting the differences of status, date, region and other specific factors those might have an impact on the fair value measurement of the properties. The Group usually conducts an analysis of the applicability of valuation methods based on the actual circumstances of the property, determines the fair values of the investment properties by one of these approaches, or the weighted results of two approaches according to its professional judgement. Therefore, these fair values are categorised as Level 3.
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62 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 21. PROPERTY AND EQUIPMENT For the six months ended 30 June 2026, the Group acquired assets with a cost of RMB397 million (for the six months ended 30 June 2025: RMB391 million) and incurred construction costs of RMB98 million (for the six months ended 30 June 2025: RMB54 million) for construction in progress. Assets with a net book value of RMB20 million were disposed of by the Group for the six months ended 30 June 2026 (for the six months ended 30 June 2025: RMB131 million), resulting in a net disposal gain of RMB36 million (for the six months ended 30 June 2025: net gain of RMB11 million). For the six months ended 30 June 2026, construction in progress with an aggregate amount of RMB259 million (for the six months ended 30 June 2025: RMB7 million) was transferred to lands and buildings upon completion. For the six months ended 30 June 2026, items of property and equipment with a carrying amount of RMB87 million (for the six months ended 30 June 2025: RMB777 million) were transferred to investment properties, and items of investment properties with a carrying amount of RMB132 million (for the six months ended 30 June 2025: Nil) were transferred to property and equipment. 22. RIGHT-OF-USE ASSETS For the six months ended 30 June 2026, the Group entered into certain new lease agreements for the use of office buildings and vehicles for terms of 1 to 10 years. The Group is required to make fixed payments periodically from the respective lease commencement dates. On the commencement date or effective date of modification of the leases, the Group recognised right-of-use assets of RMB280 million and lease liabilities of RMB280 million related to these new or modified leases. At 30 June 2026, right-of-use assets included prepaid land premium of RMB3,819 million (31 December 2025: RMB3,870 million).
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63 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 23. PREPAYMENTS AND OTHER ASSETS 30 June 2026 31 December 2025 Restricted statutory deposits (i) 4,573 4,563 Receivables from co-insurers for amounts paid on their behalf 3,903 3,955 Receivables from securities clearing 3,054 402 Deductible input value-added tax 2,842 2,884 Receivables arising from redemption of investment funds 2,513 2,307 Intangible assets 2,436 2,945 Deposits paid 2,186 1,139 Prepaid output value-added tax borne by the policyholders 2,103 1,702 Restricted funds 1,358 1,462 Prepayments for acquisition of assets and services 332 287 Amounts due from PICC Group (note 31(2)) 46 44 Amounts due from fellow subsidiaries under PICC Group (note 31(2)) 21 21 Amounts due from associates (note 31(2)) 10 7 Prepaid income tax – 184 Others 2,370 1,981 Subtotal 27,747 23,883 Less: Provision for impairment (834) (739) Total 26,913 23,144 (i) In accordance with the PRC Insurance Law, the Company is required to maintain a deposit equivalent to 20% of its registered capital with banks designated by the National Financial Regulatory Administration (the “NFRA”) as a security fund. The use of the security fund is subject to the approval of the NFRA. 24. INVESTMENT CONTRACT LIABILITIES 30 June 2026 31 December 2025 Policyholders ’ deposits 1,663 1,665 Policy dividends payable 60 60 Total 1,723 1,725
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64 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 25. BONDS PAYABLE Bonds payable comprised capital supplementary bonds. 30 June 2026 31 December 2025 Carrying amount repayable in: More than five years 12,246 12,076 On 28 November 2024, the Company issued capital supplementary bonds issued at par for RMB12,000 million with a contractual period of ten years. With proper notice to the counterparties, the Company has an option to redeem the bonds at par value at the end of the fifth year from the date of issue. The coupon rate of the bonds is 2.33% per annum in the first five years and 3.33% per annum in the following five years. 26. ACCRUALS AND OTHER LIABILITIES 30 June 2026 31 December 2025 Salaries and staff welfare payables 24,825 26,003 Dividends payable 9,787 – Value added tax and other taxes payable 6,969 7,269 Premiums received in advance 5,701 9,075 Payables to co-insurers 5,204 3,995 Payables to non-controlling interests of consolidated structured entities 2,240 2,034 Insurance protection fund 1,195 708 Payables to suppliers 823 1,342 Insurance deposit received 672 670 Accrued capital expenditures 385 290 Amounts due to fellow subsidiaries under PICC Group (note 31(2)) 250 297 Others 7,337 6,147 Total 65,388 57,830
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65 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 27. ISSUED CAPITAL 30 June 2026 31 December 2025 Issued and fully paid: Domestic shares of RMB1.00 each 15,343 15,343 H shares of RMB1.00 each 6,899 6,899 Total 22,242 22,242 28. RISK MANAGEMENT The Group ’s activities are exposed to insurance risk and various of financial risks. The Group issues contracts that transfer insurance risk or financial risk or both. The key financial risk is that proceeds from the sale of financial assets will not be sufficient to fund the obligations arising from the Group ’s insurance and investment contracts. The most important components of financial risks are credit risk, liquidity risk and market risk. The interim condensed consolidated financial information does not include all financial risk management information and disclosures required in the annual consolidated financial statements, and should be read in conjunction with the Group ’s annual consolidated financial statements for the year ended 31 December 2025. There have been no significant changes in the Group ’s risk management processes or the Group ’s risk management policies since 31 December 2025. 29. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS (1) Classification of financial instruments This note provides information on how the Group determines the fair values of major financial assets and financial liabilities. Details of fair value measurements of investment properties are disclosed in note 20 to the interim condensed consolidated financial information. The Group ’s financial assets mainly include cash and cash equivalents, financial assets measured at amortised cost, financial assets measured at fair value through other comprehensive income, financial assets measured at fair value through profit or loss and term deposits, etc.
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66 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 29. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (1) Classification of financial instruments (continued) The Group ’s financial liabilities mainly include securities sold under agreements to repurchase, investment contract liabilities and bonds payable, etc. The carrying amounts and fair values of the Group ’s financial assets measured at amortised cost and bonds payable that are not measured at fair value are disclosed in note 29(2)(b) Fair value of major financial assets and financial liabilities not measured at fair value. The carrying amounts of the Group ’s other financial assets and financial liabilities approximated to their fair values. (2) Determination of fair value and the fair value hierarchy of financial instruments For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; • Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and • Level 3 inputs are unobservable inputs for the asset or liability.
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67 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 29. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (2) Determination of fair value and the fair value hierarchy of financial instruments (continued) (a) Fair value of major financial assets and financial liabilities that are measured at fair value on a recurring basis Some of the Group ’s financial assets are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets are determined (in particular, their fair value hierarchy, the valuation technique(s) and key input(s) used). Items Fair value at 30 June 2026 Fair value hierarchy Valuation technique(s) and key input(s) Financial assets measured at fair value through profit or loss 88,398 Level 1 Quoted bid prices in an active market. Financial assets measured at fair value through profit or loss 61,263 Level 2 Valuations are generally obtained from third-party valuation service providers for identical or comparable assets based on directly or indirectly observable market inputs, or through the use of valuation methodologies using observable market inputs. Financial assets measured at fair value through profit or loss 18,704 Level 3 Valuation techniques with non-observable input values are used to determine fair value, such as adjustment for liquidity restriction, comparable company method, net asset value method and recent financing price. Financial assets measured at fair value through profit or loss 3,338 Level 3 Fair value of the investments is based on the use of the respective discounted cash flow valuation models. Debt instruments measured at fair value through other comprehensive income 5,899 Level 1 Quoted bid prices in an active market. Debt instruments measured at fair value through other comprehensive income 179,115 Level 2 Valuations are generally obtained from third-party valuation service providers for identical or comparable assets based on directly or indirectly observable market inputs, or through the use of valuation methodologies using observable market inputs.
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68 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information Items Fair value at 30 June 2026 Fair value hierarchy Valuation technique(s) and key input(s) Equity instruments measured at fair value through other comprehensive income 51,034 Level 1 Quoted bid prices in an active market. Equity instruments measured at fair value through other comprehensive income 27,817 Level 2 Valuations are generally obtained from third-party valuation service providers for identical or comparable assets based on directly or indirectly observable market inputs, or through the use of valuation methodologies using observable market inputs. Equity instruments measured at fair value through other comprehensive income 17,015 Level 3 Fair value of the investments is based on the use of the respective discounted cash flow valuation models. 29. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (2) Determination of fair value and the fair value hierarchy of financial instruments (continued) (a) Fair value of major financial assets and financial liabilities that are measured at fair value on a recurring basis (continued)
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69 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 29. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (2) Determination of fair value and the fair value hierarchy of financial instruments (continued) (a) Fair value of major financial assets and financial liabilities that are measured at fair value on a recurring basis (continued) Items Fair value at 31 December 2025 Fair value hierarchy Valuation technique(s) and key input(s) Financial assets measured at fair value through profit or loss 65,989 Level 1 Quoted bid prices in an active market. Financial assets measured at fair value through profit or loss 61,878 Level 2 Valuations are generally obtained from third-party valuation service providers for identical or comparable assets based on directly or indirectly observable market inputs, or through the use of valuation methodologies using observable market inputs. Financial assets measured at fair value through profit or loss 18,512 Level 3 Valuation techniques with non-observable input values are used to determine fair value, such as adjustment for liquidity restriction, comparable company method, net asset value method and recent financing price. Financial assets measured at fair value through profit or loss 3,251 Level 3 Fair value of the investments is based on the use of the respective discounted cash flow valuation models. Debt instruments measured at fair value through other comprehensive income 4,909 Level 1 Quoted bid prices in an active market. Debt instruments measured at fair value through other comprehensive income 165,856 Level 2 Valuations are generally obtained from third-party valuation service providers for identical or comparable assets based on directly or indirectly observable market inputs, or through the use of valuation methodologies using observable market inputs. Equity instruments measured at fair value through other comprehensive income 55,080 Level 1 Quoted bid prices in an active market.
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70 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information Items Fair value at 31 December 2025 Fair value hierarchy Valuation technique(s) and key input(s) Equity instruments measured at fair value through other comprehensive income 43,104 Level 2 Valuations are generally obtained from third-party valuation service providers for identical or comparable assets based on directly or indirectly observable market inputs, or through the use of valuation methodologies using observable market inputs. Equity instruments measured at fair value through other comprehensive income 100 Level 3 Valuation techniques with non-observable input value are used to determine fair value, such as adjustment for liquidity restriction, comparable company method, net asset value method and recent financing price. Equity instruments measured at fair value through other comprehensive income 17,659 Level 3 Fair value of the investments is based on the use of the respective discounted cash flow valuation models. 30 June 2026 Fair value hierarchy Level 1 Level 2 Level 3 Total Financial assets measured at fair value through profit or loss 88,398 61,263 22,042 171,703 Debt instruments measured at fair value through other comprehensive income 5,899 179,115 – 185,014 Equity instruments measured at fair value through other comprehensive income 51,034 27,817 17,015 95,866 Total 145,331 268,195 39,057 452,583 29. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (2) Determination of fair value and the fair value hierarchy of financial instruments (continued) (a) Fair value of major financial assets and financial liabilities that are measured at fair value on a recurring basis (continued)
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71 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 29. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (2) Determination of fair value and the fair value hierarchy of financial instruments (continued) (a) Fair value of major financial assets and financial liabilities that are measured at fair value on a recurring basis (continued) 31 December 2025 Fair value hierarchy Level 1 Level 2 Level 3 Total Financial assets measured at fair value through profit or loss 65,989 61,878 21,763 149,630 Debt instruments measured at fair value through other comprehensive income 4,909 165,856 – 170,765 Equity instruments measured at fair value through other comprehensive income 55,080 43,104 17,759 115,943 Total 125,978 270,838 39,522 436,338 For the six months ended 30 June 2026, financial assets measured at fair value through profit or loss with a carrying amount of RMB31 million and financial assets measured at fair value through other comprehensive income with a carrying amount of RMB1,037 million were transferred from Level 1 to Level 2 because the quoted prices in the market for such investments were no longer regularly available. Conversely, financial assets measured at fair value through profit or loss with a carrying amount of RMB942 million and financial assets measured at fair value through other comprehensive income with a carrying amount of RMB1,538 million were transferred from Level 2 to Level 1 because the quoted prices in active markets were available. As at 30 June 2026, the fair value of derivative financial assets and derivative financial liabilities is RMB5 million (31 December 2025: RMB27 million) and RMB31 million (31 December 2025: RMB162 million), which are categorised in Level 3.
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72 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 29. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (2) Determination of fair value and the fair value hierarchy of financial instruments (continued) (b) Fair value of major financial assets and financial liabilities not measured at fair value The following table shows an analysis of financial instruments not recorded at fair value but for which fair value is disclosed by level of the fair value hierarchy: Carrying amount at Fair value hierarchy at 30 June 2026 30 June 2026 Level 1 Level 2 Level 3 Total Financial assets Financial assets measured at amortised cost 152,485 1,076 109,823 51,453 162,352 Financial liabilities Bonds payable 12,246 – 12,393 – 12,393 Carrying amount at Fair value hierarchy at 31 December 2025 31 December 2025 Level 1 Level 2 Level 3 Total Financial assets Financial assets measured at amortised cost 150,493 1,175 99,169 58,686 159,030 Financial liabilities Bonds payable 12,076 – 12,058 – 12,058
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73 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 29. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (2) Determination of fair value and the fair value hierarchy of financial instruments (continued) (b) Fair value of major financial assets and financial liabilities not measured at fair value (continued) Financial assets and liabilities for which fair value approximates carrying amount are not included in the above disclosure. The fair values of the debt instruments reported as financial assets and financial liabilities and included in the Level 3 category above have been determined using discounted cash flow model, with most significant inputs being the estimated cash flow and the discount rate that reflects the risk of counterparties and the Group. (c) Reconciliation of Level 3 fair value measurements Six months ended Six months ended 30 June 2026 30 June 2025 1 January 39,522 38,861 Addition 791 2,632 Gains/(losses) recognised in profit or loss 272 (62) Gains/(losses) recognised in other comprehensive income 67 (139) Disposals (1,595) (4,288) 30 June 39,057 37,004
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74 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 30. CONTINGENCIES AND COMMITMENTS (1) Contingencies Given the nature of the insurance business, the Group is involved in legal proceedings in the ordinary course of business, including as plaintiff or defendant in litigation and arbitration. These legal proceedings primarily involve claims arising from the Group ’s insurance policies, and some losses arising therefrom may be partly indemnified by reinsurers or recoverable through other means, including salvage and subrogation. During the six months ended 30 June 2026, the Group was involved in similar legal proceedings related to certain insurance business activities. The claim amounts in these cases are significant, and the proceedings remain ongoing. While the outcomes of these contingencies, lawsuits or other proceedings cannot currently be determined and the likelihood and amounts of any potential losses cannot be reliably estimated, the Group believes that any resulting liabilities, if any, will not have a material adverse effect on the financial position as at 30 June 2026 or on its operating results for the six months then ended. (2) Commitments 30 June 2026 31 December 2025 Property and equipment commitments: Contracted, but not provided for 1,071 596 Authorised, but not contracted 29 74 Investment commitments: Contracted, but not provided for 6,197 7,128 Total 7,297 7,798
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75 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 31. RELATED PARTY TRANSACTIONS (1) Material transactions with related parties Six months ended Six months ended 30 June 2026 30 June 2025 Transactions with PICC Group: 2025 final dividend distribution 6,751 – 2024 final dividend distribution – 5,094 Service expense 23 31 Transactions with fellow subsidiaries under PICC Group: Management fee 235 173 Technology service fees 317 241 Subscription amount of financial products 1,642 3,817 Premiums ceded 499 386 Reinsurance commission income 126 111 Paid losses recoverable from reinsurers 177 190 Brokerage commission expense 16 78 Addition to right-of-use assets 20 26 Addition to lease liabilities 20 26 Payment of lease liabilities 41 42 Interest on lease liabilities 8 6 Rental income 4 1 Reinsurance premiums assumed 583 356 Commission expenses – reinsurance 163 96 Gross claims paid – reinsurance 12 2 Property service fees 131 163
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76 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 31. RELATED PARTY TRANSACTIONS (CONTINUED) (1) Material transactions with related parties (continued) Six months ended Six months ended 30 June 2026 30 June 2025 Transactions with associates of the Company: Sale of insurance products 19 14 Gross claim paid 22 1 Premiums ceded 3,266 3,101 Reinsurance commission income 905 804 Paid losses recoverable from reinsurers 1,391 1,490 Purchase of spare parts 29 114 Premiums paid 84 102 Dividend income 1,082 906 Agency service commission expense 123 115 Agency service commission income 94 53 Addition to right-of-use assets – 23 Addition to lease liabilities – 23 Payment of lease liabilities 5 10 Rental income 10 10 Interest on lease liabilities 1 1 Interest Income – 3 Service expense 1 1 Transactions with associates of PICC Group: Dividend income 1,310 1,337 Interest income 75 85 Sale of insurance products 10 – Transactions with associates of fellow subsidiaries: Service expense 132 149
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77 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 31. RELATED PARTY TRANSACTIONS (CONTINUED) (2) Outstanding balances with related parties 30 June 2026 31 December 2025 Cash and cash equivalents: Associates of PICC Group 2,258 2,778 Associates 178 87 Term deposits: Associates of PICC Group 662 4,169 Associates 400 500 Equity securities at fair value through other comprehensive income: Associates of PICC Group 20,348 25,877 Receivables from reinsurers: Associates 2,715 949 Fellow subsidiaries under PICC Group 1,300 860 Amounts due from related parties: PICC Group (note 23) 46 44 Fellow subsidiaries under PICC Group (note 23) 21 21 Associates (note 23) 10 7 Payables to reinsurers: Associates 3,304 831 Fellow subsidiaries under PICC Group 852 418 Amounts due to related parties: Fellow subsidiaries under PICC Group (note 26) 250 297 PICC Group 65 29 Associates 2 9 Lease liabilities: Fellow subsidiaries under PICC Group 104 169 Associates 6 31
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78 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 31. RELATED PARTY TRANSACTIONS (CONTINUED) (2) Outstanding balances with related parties (continued) PICC Life Insurance Company Limited ( “PICC Life ”), PICC Health Insurance Company Limited (“PICC Health ”), PICC Reinsurance Company Limited ( “PICC Re ”) and PICC Financial Services Company Limited ( “PICC Financial Services ”) are all associates of the Company and fellow subsidiaries of the Company as their parent company is PICC Group. In the above note, PICC Life, PICC Health, PICC Re and PICC Financial Services are included in “associates ” and excluded from “fellow subsidiaries ”. The balances with PICC Group, fellow subsidiaries, associates and an associate of PICC Group are settled according to the respective arrangements between the Company and the related parties. (3) Transactions with state-owned entities in the PRC The Company is a state-owned company indirectly controlled by the Ministry of Finance (“MOF”). The MOF is a component of the State Council of the PRC ( “State Council ”) and performs government functions such as finance, taxation and management of state-owned assets authorised by the State Council. The Group ’s key business is insurance and investment related and therefore the business transactions with other government-related entities mainly include sales of insurance policies, purchase of reinsurance, deposits placed with banks, investments in debts or bonds and commissions paid to banks and postal offices for insurance policies distributed. The Group considers that transactions with government-related entities are activities conducted in the ordinary course of business, and that the dealings of the Group have not been significantly or unduly affected by the fact that the Group and those government-related entities are ultimately controlled or owned by the PRC government. The Group has also established pricing policies for products and services and such pricing policies do not depend on whether or not the customers are government-related entities. Due to the complex ownership structure, the PRC government may hold indirect interests in many companies. Some of these interests may, in themselves or when combined with other indirect interests, be controlling interests which may not be known to the Group.
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79 PICC Property and Casualty Company Limited 2026 Interim Report Notes to the Interim Condensed Consolidated Financial Information 31. RELATED PARTY TRANSACTIONS (CONTINUED) (4) Key management personnel Key management personnel are those persons who have authorities and responsibilities for planning, directing and controlling the activities of the Group directly or indirectly, including directors and other members of senior management. No transactions were entered with the key management personnel for the six months ended 30 June 2026 other than the emoluments paid to them (being the key management personnel compensation). 32. EVENTS AFTER THE REPORTING PERIOD According to the interim profit distribution plan for 2026 approved by the Board of Directors on 28 August 2026, the Group proposed to distribute a cash dividend of RMB0.34 (including tax) per share to all shareholders based on the total share capital of 22,242,765,303 shares as of 30 June 2026, totalling RMB7,563 million. This proposal is subject to the approval of the shareholders at the general meeting.
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80 PICC Property and Casualty Company Limited 2026 Interim Report Definitions In this interim report, the following expressions shall have the following meanings unless the context otherwise requires: “Board” or “Board of Directors ” the board of directors of the Company “Company ” or “we” PICC Property and Casualty Company Limited “Corporate Governance Code ” the Corporate Governance Code as set out in Appendix C1 of the Listing Rules “Director(s) ” director(s) of the Company “Hong Kong ” the Hong Kong Special Administrative Region of the People ’s Republic of China “Hong Kong Stock Exchange ” The Stock Exchange of Hong Kong Limited “Listing Rules ” the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited “Model Code ” the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules “NFRA” National Financial Regulatory Administration “PICC Group ” The People ’s Insurance Company (Group) of China Limited “pp” percentage point(s) “PRC” the People ’s Republic of China, which, for the purpose of this report, excludes the Hong Kong Special Administrative Region of the PRC, the Macau Special Administrative Region of the PRC and Taiwan of the PRC “RMB” Renminbi, the lawful currency of the PRC “SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “%” per cent
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Corporate Information REGISTERED NAME Chinese name:ʮ̡ (Abbreviation of Chinese name: ৌᎈ ) English name: PICC Property and Casualty Company Limited (Abbreviation of English name: PICC P&C) REGISTERED OFFICE Tower 2, No. 2 Jianguomenwai Avenue, Chaoyang District, Beijing 100022, the PRC WEBSITE property.picc.com STOCK NAME PICC P&C STOCK CODE 2328 TYPE OF STOCK H Share PLACE OF LISTING OF H SHARES The Stock Exchange of Hong Kong Limited H SHARE REGISTRAR AND TRANSFER OFFICE Computershare Hong Kong Investor Services Limited LEGAL REPRESENTATIVE Zhang Daoming SECRETARY OF THE BOARD OF DIRECTORS Bi Xin COMPANY SECRETARY Zhang Tianyuan INVESTOR RELATIONS CONTACT Tel: (8610) 85176084 E-mail: ir@picc.com.cn AUDITORS International Auditor Ernst & Young Registered Public Interest Entity Auditor Domestic Auditor Ernst & Young Hua Ming LLP