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. (Incorporated in Hong Kong with limited liability) (Stock Code: 966) ANNOUNCEMENT INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 1 The Board of Directors of China Taiping Insurance Holdings Company Limited is pleased to announce the unaudited interim financial results of the C ompany and its subsidiaries for the six months ended 30 June 2026 as follows, which should be read in conjunction with the Management Discussion and Analysis set out below: MANAGEMENT DISCUSSION AND ANALYSIS In the first half of 2026, Chi na Taiping strongly upheld the financial work priorities of “Risk Prevention, Regulatory Strengthening, and the Promotion of High-quality Development”. The Group diligently honed internal capabilities, enhanced business efficacy, cemented managerial foundations, and made substantial and tangible progress in “Risk Prevention, Management Excellence, Growth Acceleration , Safety Assurance”. As a result, the Group achieved steady progress in business development, marked by stability, improved quality and efficiency, with positi ve upshots across various business lines. Operational quality and efficiency have improved, and tangible results were achieved in transformation towards value orientation. The Group has furthermore fulfilled its roles and responsibilities in serving national initiatives, by way of deepening the presence in the Guangdong-Hong Kong-Macau Greater Bay Area and supporting Hong Kong to consolidate and elevate its status as an international financial centre . In a similar vein, the Group also contributed to the high-quality joint development of the “Belt and Road Initiative”, and achieved positive outcomes in the “Five Target Areas” of finance. Distinctive strengths were continuously reinforced and business ecosystems were steadily optimised. Synergy across the board have had a bigger effect on business. Quality and efficiency of digital and intelligent transformation was remarkable, and the foundation for high-quality development was fortified. Core Business Developed Steadily, Profit Attributable to Owners Achieved Sustained Growth Profit attributable to owners was HK$12.873 billion, increased by 90.3% over the Last Period, which is mainly due to the increase of both insurance service results and investment re turn over the Last Period. Profit of the life insurance business was HK$16. 682 billion, increased by 101.5% over the Last Period, which is mainly due to the increase of both insurance service results and net investment results over the Last Period. Profit of the asset management business was HK$ 532 million, increased by 166.2% over the Last Period, which is mainly due to the increase of management fee income and cost savings over the Last Period. Insurance service results were HK$12.876 billion, increased by 4.5% over the Last Period , mainly due to better performance of the life insurance business over the Last Period. Net investment results was HK$9.694 billion, reversed the loss in the Last Period to profit, which is mainly due to the increase of investment return over the Last Period. Total equity was HK$175.1 billion, increased by 6.2% over the 2025 year -end, mainly due to profit growth during the Period. Ordinary shareholders’ equity was HK$103.638 billion, increased by 8.9% over the 2025 year-end, mainly due to total comprehensive income attributable to owners for the Period, amounting to HK$13.404 billion. Total assets were HK$2,167.2 billion, increased by 9.1% over the 2025 year-end, mainly due to an increase in total financial investments from the 2025 year-end. Contractual service margin (“CSM”) was HK$231.4 billion, increased by 6.8% over the 2025 year- end, which is mainly due to new contracts initially recognised during this period and the impact of RMB exchange rates. Group embedded value per share attributable to owners was HK$63.33, increased by 8.6% over the 2025 year-end of HK$58.30, while TPL’s embedded value rose by 8.3% from the 2025 year-end.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 2 Life Insurance Businesse s1 Transformation Improved, with Enhanced Quality and Efficiency of Business Operations Insurance revenue of the life insurance increased by 0.8 % over the Last Period, with insurance revenue of the PRC domestic life insurance2 increased by 1.2% over the Last Period. Driven by value transformation and quality enhancement in a coordinated manner, the life insurance business achieved a 1.5% increase in insurance service results over the Last Period. As at the end of June 2026, CSM of the life insurance was RMB200.4 billion, increased by 2.7% over the 2025 year-end. TPL optimised its business structure and resolutely implemented the requirement of “Aligning Sales Practices with Regulatory Filings ”, with the insurance revenue and the insurance service results growing by 5.0% and 3.6% over the Last Period, re spectively. Participating products accounted for 97.8% of the first year regular premium in long term insurance , increased by 10.7 percentage points over the Last Period. By further transformation of the workforce, agents’ productivity3 increased by 73.8% over the 2025 year-end. TPL realised new business value of RMB 6.268 billion, increased by 1.4% over the Last Period. Direct premium increased by 2.0% over the Last Period, while first year premium increased by 10.6% over the Last Period. F our persistency ratios of the individual agency and bancassurance channels remained industry-leading. Overseas life insurance businesses adhered strictly to the capital discipline requirements and deepened their transformation towards value orientation. Steady Growth in Property and Casualty Insurance Businesses , with Underwriting Profitability Continuously Strengthened TPI’s4 insurance revenue increased by 0.4% over the Last Period and direct premium increased by 1.4% over the Last P eriod, ensuring a steady growth of premiums . The combined ratio was 98.0% . Benefiting from the company ’s strengthened end -to-end cost control, effective cost reduction and efficiency upgrade initiatives, TPI continued to maintain underwriting profitability. The persistency ratio of motor insurance increased by 1.7 percentage points over the Last Period. The proportion of direct premium from non-motor insurance business increased by 0.6 percentage points over the Last Period, with business structure continuously optimised. CTPI (HK)’s combined ratio was 90.8%, improved by 5.8 percentage points, keeping up favourable underwriting performance. TP Macau’s combined ratio was 83.4%, improved by 1.3 percentage points, continuously progressing in operating profitability. TP Singapore’s property and casualty insurance business’s insurance revenue increased by 4.2% over the Last Period and the combined ratio was 90.0%, reflecting excellent underwriting performance. TP Indonesia’s insurance revenue increased by 9.5% over the Last Period with a 95.0% combined ratio, maintaining underwriting profitability. 1 Calculated in RMB. 2 Including TPL and TPP. 3 Average monthly regular premium per agent. 4 Calculated in RMB.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 3 Reinsurance Business Continued to Lead Market with Sustained Growth in Underwriting Profitability TPRe’s insurance revenue increased by 9.6% over the Last Period. Property and casualty reinsurance combined ratio was 96.2%, finishing the half year with robust underwriting profit ability. The company continued to lead Hong Kong’s onshore property reinsurance market. Upgraded Equity Asset Allocation and Significant Increase in Total Investment Income Investment portfolios scaled up steadily and total investment income rose significantly. As at the end of June 2026, the total investment assets of the Group were HK$1,941.5 billion, increased by 11.4% over the 2025 year-end. Total investment income for the first half of 2026 was HK$47.952 billion, representing a significant increase of 120.5% over the Last Period, attributable to significantly improved equity performance compared with the Last Period. The asset structure remained prudent, and net investment income increased over the Last Period . As at the end of June 2026, the Group’ s fixed income assets accounted for 80.2% of total investments, and remained robust and prudent. In the first half of 2026, the Group took advantage of a temporary peak in yield to increase both bond and high-dividend shares allocations, thereby stabilising its long- term income base and achiev ed a net investment income of HK$26.215 billion, increased by 3.7% over the Last Period. Research efforts in investments were stepped up, resulting in a more balanced allocation of equity investments. In the first half of 2026, the Group strengthened its research in equity investments, achieving a more diversified industry distribution, as well as a better alignment of assets and liabilities. The Group’s investment return on PRC domestic FVPL secondary market equities was 14.5%, outperforming the CSI 300 Total Return Index by 5.9 percentage points. Improved the risk management system and strengthened proactive risk control . In the first half of 2026, the Group strengthened risk prevention in key areas, refined risk indicators and limits, enhanced early warning mechanisms for major risks, promoted the principle that investment risks should be “Identified, Flagged, Surfaced and Resolved at the Earliest Possible Stage ”, strengthened risk management for overseas investment, a nd consistently enhanced its risk prevention and control capabilities. Enhanced Comprehensive Synergy and Improved Quality and Efficiency in Strategic Partnerships As at the end of June 2026, China Taiping established strategic partnerships with 126 major clients who contributed a total of HK$36.440 billion in insurance premiums and HK$44.094 billion in new pension contributions. In the first half of 2026, the property insurance sales through TPL in the domestic market reached HK$3.676 billion.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 4 Continued Dedication in Fulfilling Responsibilities and Missions We put our roots down even further in the Guangdong-Hong Kong-Macau Greater Bay Area. The Group’s investment portfolio in GBA amounted to HK$123.3 billion, increased by 10.6% over 2025 year-end. Market share of cross-border motor insurance products continued to increase, further cementing market leadership. We innovatively developed “ Exclusive + N ” life insurance products tailor-made for the Greater Bay Area, continued to expand insurance offerings. The number of senior residents from Hong Kong and Macau in the Group’s retirement communities continued to grow, as a result of our active undertaking in the HKSAR Government’s “Residential Care Services Scheme in Guangdong - Pilot Medical Subsidy Arrangement” and now we serve over 1,300 senior residents from Hong Kong. The occupancy rate of the Hengqin Traditional Chinese Medicine Science and Technology Industrial Park of Co-operation between Guangdong and Macau was increased. We put consistent efforts in upholding the consolidation and e levation of Hong Kong as an international financial centre. Research laboratories for the study of catastrophic risk and climate risk in Hong Kong were built in a steady and growing manner. We closed the very first bond investment transaction via the “ Southbound Scheme ”. The Victoria Harbour Nexus Innovation LPF, jointly managed by TPAM (HK) under TPFH has been selected for the HKSAR Government ’s Innovation and Technology Fund Enhanced Scheme. Positive Results in the “Five Target Areas” of Finance Development of Technology Finance: Technology insurance premiums increased by 15.9% over the Last Period. The investment portfolio in the technology sector amounted to HK$141.2 billion, up by 26.9% from 2025 year-end. Development of Green Finance: Green insurance premiums increased by 14.4% over the Last Period. Green investment reached HK$76.123 billion, up by 3.2% from 2025 year-end. Development of Inclusive Finance: Coverage of critical illness insurance for urban and rural residents, Hui Min Bao （惠民保）and long-term care insurance services cover ed 39 million ，22 million and 50 million people, respectively. Agricultural insurance premiums increased by 14.7%, providing risk protection of HK$18.026 billion to 330,000 farmers. The investment portfolio of the rural revitalisation fund has steadily expanded. Development of Ageing Finance: Assets under management of t he second- pillar annuity fund increased by 15.3 % over th e 2025 year-end. Steady development of the third- pillar business was recorded, seeing growth in individual pension and commercial pension. Development of Digital Finance: We continued to advance the application of digital and intelligent technologies and built the “1+1+4 ” artificial intelligence ecosystem, accelerating the roll- out of intelligent applications across business, operations, risk control , and office administration. We strengthened information security defenses and established a 24/7 security monitoring system across the Group. We enhanced data governance capabilities and improved the policy framework for the sharing, collaboration, and security of data.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 5 Distinctive Advantages Continued to Materialise Ecosystem construction was steadily expanded. For the medical health & elder care ecosystem, the Group’s self-built elder care communities were operating steadily, with the number of senior residents growing by 53%. Pilot home -based elder care services progressed smoothly, w ith the number of home-based elder care experience centers increasing to over 120, and more than 20,000 home-based elder care certificates were issued. The Medical and Health Fund and the Innovation and Technology Fund have altogether invested in 151 specialised, refined, distinctive and innovative healthcare and science and technology enterprises licensed at the national or provincial level with new investments of HK$550 million in the first half of 2026. For the Fintech ecosystem, the Group focused on artificial intelligence development, promoting the incubation and commercialisation of innovative achievements through joint laboratories . The alliance continued expand ing its membership and has seen a series of alliance events held. The construction of the shared service ecosystem was launched, with online services propelled into trail operation. Risk Control and Compliance Management Steadily Progressed The Group’ s comprehensive risk management system was further refined . A dedicated special meeting mechanism for risk prevention and control has been established to strengthen penetrating oversight over the risk management and control of our subsidiaries. The Group continuously advanced the establishment of the new risk classification framework, to ensure the classification of investment assets is implemented thoroughly and at a granular level. Risk prevention and control from the origin has become more precise. The Group stepped up routine risk monitoring and consistently enhanced the automation level of risk data monitoring. The Group’s unified internal rating system has been continuously optimised, to fully leverage the rating system’s core supporting functions in pre-emptive risk control, risk early warning and decision-making. The Group’s internal controls and compliance system was further refined. In-depth special initiatives on “Internalising External Regulations” were carried out. They had continuously refined the Group’s institutional framework, fostered a compliance culture underscored by “Compliance Creates Value”, and further driven the transformation of all entities from “Passive Compliance” to “Proactive Compliance”. Under the theme of “Safeguarding the Money Sack, Protecting the Happy Home”, the Group kicked off the “Illegal Financial Activities Prevention Awareness Month”, with a focus on key areas and the “Elderly and Children” groups, and continuously enhanced the public awareness of preventing illegal financial activities.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 6 Brand Value Further Showcased, with Consumer Protection Service Quality and Efficiency Steadily Enhanced China Taiping steadily advanced corporate culture cultivation , stepped up news publicity and brand promotion, and enhanced reputation risk management, thereby improving our brand value. The Group has held its Customer Service and Consumer Rights Prote ction Conference for 5 consecutive years . The consumer rights protection management system has been optimised with enhanced functions relating to inspections, day -to-day management and self -assessment, thereby adding to the Group’s in -depth overseeing over consumer rights protection. Over 6,400 activities under the “3 ·15” Consumer Rights Protection Education and Awareness Campaign were held. The 7th “Lucky Elephant Festival · China Taiping Customer Festival” officially kicked off on 17 July. The application of “AI+” technologies was deepened: in life insurance, we launched the construction of an AI-powered claims processing project; in motor insurance, we implemented an AI -based image assessment function for personal injury claims; and in group insurance, we e xpanded the direct connectivity of medical insurance data. We have further developed our online service platforms, and strengthened the operation of the “China Taiping 95589” hotline and WeChat service platform.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 7 CONSOLIDATED FINANCIAL RESULTS The financial highlights of the Group for the Period were as follows: HK$ million 1H 2026 1H 2025 Change Insurance revenue 58,926.37 55,963.56 +5.3% Insurance service expenses (44,657.21) (42,008.62) +6.3% Insurance service results 12,875.87 12,316.34 +4.5% Net investment results 9,694.08 (534.65) N/A Profit before taxation 20,536.15 10,262.21 +100.1% Profit after taxation 17,651.70 9,191.69 +92.0% Profit attributable to owners 12,872.66 6,764.41 +90.3% Basic earnings per share (HK$) 3.442 1.744 +1.698 dollars Interim dividend proposed - - - HK$ million At 30 June 2026 At 31 December 2025 Change Total assets 2,167,249.64 1,986,586.64 +9.1% Contractual service margin 231,419.31 216,666.60 +6.8% Total equity 175,066.26 164,792.95 +6.2% Ordinary shareholders’ equity 103,637.75 95,154.88 +8.9% - Per share (HK$) 28.836 26.476 +2.360 dollars Group embedded value 303,707.18 280,603.06 +8.2% Ordinary shareholders’ group embedded value 227,606.48 209,519.40 +8.6% - Per share (HK$) 63.329 58.297 +5.032 dollars
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 8 CONSOLIDATED FINANCIAL RESULTS (Continued) The figures below were the results of the respective companies from their operations, before intra - group eliminations. The net operating profit/(loss) by each business line was summarised below: HK$ million 1H 2026 1H 2025 Change Life insurance 1 16,681.61 8,278.36 +101.5% PRC domestic property and casualty insurance 2 580.20 686.42 -15.5% Overseas property and casualty insurance 3 363.50 258.10 +40.8% Reinsurance 4 838.64 871.80 -3.8% Asset management business 5 531.74 199.72 +166.2% Others 6 (1,343.99) (1,102.71) +21.9% Net profit from operations 17,651.70 9,191.69 +92.0% Non-controlling interests (4,779.04) (2,427.28) +96.9% Profit attributable to owners 12,872.66 6,764.41 +90.3% 1 Life insurance includes the operating results of TPL, TPP’s life and pension insurance business, TPL (HK) and TP Singapore’s life insurance business. 2 PRC domestic property and casualty insurance is the operating results of TPI. 3 Overseas property and casualty insurance includes the operating results of CTPI (HK), TP Macau, TP UK, TP Luxembourg, TP Singapore and TP Indonesia’s property and casualty insurance business. 4 Reinsurance mainly includes the operating results of TPRe and TPRe (China). 5 Asset management business includes the operating results of TP AM, TPCA, TP Fund, TPFH and TPP’s annuity investment business. 6 Others mainly includes the operating results of the holding company, TPIH (HK), TSFL, TPFS and consolidation adjustments.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 9 CONSOLIDATED FINANCIAL RESULTS (Continued) The following analysis showed the movement of the total equity of the Group. HK$ million 2026 2025 Total equity as at 1 January 164,792.95 122,407.45 Net profit recognised in statement of profit or loss 17,651.70 9,191.69 Net changes in fair value reserve 4,931.67 6,455.08 Net changes in insurance finance reserve (9,835.02) (10,736.64) Revaluation gain arising from reclassification of own-use properties into investment properties, net of deferred tax 3.71 48.60 Share of other comprehensive income of associates and joint ventures, net of deferred tax (25.05) (42.79) Exchange differences arising from translation of financial statements of foreign and non-foreign operations 5,520.49 1,842.18 Deemed acquisition of a subsidiary - 478.06 Acquisition of partial interests in a subsidiary - (10.91) Perpetual capital securities issued - 9,752.61 Dividend declared by subsidiaries to non-controlling interests (2,807.95) (1,194.65) Dividend declared to holders of the perpetual (subordinated) capital securities (745.60) (498.47) Dividend declared to shareholders (4,420.64) (1,257.91) Total equity as at 30 June 175,066.26 136,434.30 Attributable to: Ordinary shareholders of the Company 103,637.75 74,237.67 Perpetual subordinated capital securities 15,987.00 15,990.19 Non-controlling interests 55,441.51 46,206.44 175,066.26 136,434.30
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 10 LIFE INSURANCE BUSINESS The Group’s life insurance business is operated by TPL , TPP, TPL (HK) and TP Singapore , which are engaged in the underwriting of life insurance businesses in the Mainland China, Hong Kong, Macau and Singapore, respectively. TPL is incorporated in the Mainland China and is 75.1% owned by the Group. TPP is incorporated in the Mainland China and is 90% owned by the Group. TPP operates corporate and personal pension products and group life insurance business, apart from its annuity and pension plan’s investment, entrustment and other management services business under the section headed “Asset Management Business”. TPL (HK) is incorporated in Hong Kong in 2015 and is wholly -owned by the Group. TPL ( HK) incorporated a subsidiary in Macau, TPL (Macau), to engage in the underwriting of life insurance business in Macau, since 2019. TP Singapore is incorporated in Singapore and is wholly -owned by the Group. TP Singapore launched its life insurance business since 2018 alongside its property and casualty insurance business. TP Singapore’s property and casualty insurance business under the section headed “ Overseas Property and Casualty Insurance Business”. Financial Performance The figures below were the results of life insurance business, before intra-group eliminations. The Group’s insurance service results of life insurance business experienced stable growth. The insurance revenue of the life insurance business was HK$33.951 billion, increased by 5.3% over the Last Period. Net investment results turned from loss in the Last Period to profit in the Period, which was mainly attributable to the equity market s in a positive momentum . Profit after taxation was HK$ 16.682 billion, increased by 101.5% over the Last Period. The increase was mainly due to the increase of both insurance service results and net investment results over the Last Period. HK$ million 1H 2026 1H 2025 Change Insurance revenue 33,950.63 32,249.98 +5.3% Insurance service expenses (22,040.82) (20,973.94) +5.1% Net expenses from reinsurance contracts held (317.28) (341.29) -7.0% Insurance service results 11,592.53 10,934.75 +6.0% Net investment results 7,775.17 (1,815.56) N/A Profit before taxation 18,528.29 8,859.92 +109.1% Profit after taxation 16,681.61 8,278.36 +101.5% HK$ million At 30 June 2026 At 31 December 2025 Change Total assets 1,890,176.46 1,723,386.60 +9.7% Total equity 88,421.59 83,341.26 +6.1%
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 11 LIFE INSURANCE BUSINESS (Continued) Financial Performance (Continued) Contractual Service Margin The movements in life insurance business’s contractual service margin are summarised below: HK$ million 2026 2025 Change Balance as at 1 January 216,034.13 206,935.86 +4.4% Contracts initially recognised in this Period 9,406.99 9,339.08 +0.7% CSM recognised for service provided (9,227.77) (8,638.99) +6.8% Changes in estimates that adjust the CSM 2,030.04 (2,111.84) N/A Changes in estimates that result in reversal of losses/(onerous contract losses) (10.38) (6.66) +55.9% Financial movements in insurance contracts 3,800.98 3,768.27 +0.9% Effect of exchange differences 8,674.17 3,204.76 +170.7% Balance as at 30 June 230,708.16 212,490.48 +8.6%
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 12 LIFE INSURANCE BUSINESS (Continued) Insurance Performance Premium Direct premium of life insurance business are summarised below: HK$ million 1H 2026 1H 2025 Change TPL 133,025.40 124,853.33 +6.5% TPP 1,664.52 3,879.55 -57.1% TPL (HK) 5,985.00 8,104.76 -26.2% TP Singapore 425.65 553.19 -23.1% TPL’s direct premium increased by 6.5% to HK$ 133.025 billion from HK$ 124.853 billion in the Last Period. TPL’s direct premium by line of business are summarised below: HK$ million 1H 2026 1H 2025 Change Individual 87,939.53 80,223.44 +9.6% Bancassurance 39,245.23 40,126.20 -2.2% Group 2,336.91 497.37 +369.9% Other Channels 1 3,503.73 4,006.32 -12.5% 133,025.40 124,853.33 +6.5% 1 Other Channels mainly consisted of telemarketing.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 13 LIFE INSURANCE BUSINESS (Continued) Insurance Performance (Continued) Premium (Continued) The detailed breakdown of TPL’s direct premium by payment type was summarised as follows: HK$ million Individual 1H 2026 1H 2025 Change Long-term First Year – Single Premium 450.60 123.06 +266.2% – Regular Premium 15,739.20 14,682.03 +7.2% Renewal Year 67,908.58 61,592.59 +10.3% Short-term 3,841.15 3,825.76 +0.4% 87,939.53 80,223.44 +9.6% Bancassurance 1H 2026 1H 2025 Change Long-term First Year – Single Premium 1,737.25 591.66 +193.6% – Regular Premium 11,042.35 10,280.67 +7.4% Renewal Year 26,435.19 29,222.00 -9.5% Short-term 30.44 31.87 -4.5% 39,245.23 40,126.20 -2.2% Group 1H 2026 1H 2025 Change Group Insurance 2,336.91 497.37 +369.9% Other Channels 1H 2026 1H 2025 Change Long-term First Year – Single Premium 236.46 449.16 -47.4% – Regular Premium 586.31 676.71 -13.4% Renewal Year 2,678.72 2,872.47 -6.7% Short-term 2.24 7.98 -71.9% 3,503.73 4,006.32 -12.5%
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 14 LIFE INSURANCE BUSINESS (Continued) Insurance Performance (Continued) Premium (Continued) TPL’s direct premium by product type are summarised below: HK$ million 1H 2026 1H 2025 Change Traditional life 35,758.22 51,681.93 -30.8% Long-term health 19,990.28 19,479.30 +2.6% Annuity 6,357.91 12,146.91 -47.7% Participating 64,488.76 36,565.65 +76.4% Accident and short-term health 6,424.17 4,970.68 +29.2% Universal life 5.16 7.80 -33.8% Investment-linked 0.90 1.06 -15.1% Total 133,025.40 124,853.33 +6.5% Key Operational Data TPL’s key operational data was summarised below: At 30 June 2026 At 31 December 2025 Change Market share 1 4.1% 4.2% -0.1pt Number of provincial branches 38 38 - Number of sub-branches and marketing centers 1,211 1,225 -14 Number of customers - Individual 12,886,005 12,747,379 +138,626 - Corporate 64,452 17,721 +46,731 Distribution network - Number of individual agents 172,003 166,704 +5,299 - Number of bancassurance outlets 91,977 94,753 -2,776 Agent monthly per capita regular direct premium (RMB) 2 29,294 16,853 +12,441 yuan Direct premium persistency ratios – 13th month 3 - Individual 98.9% 98.8% +0.1pt - Bancassurance 98.7% 98.8% -0.1pt Direct premium persistency ratios – 25th month 3 - Individual 98.5% 97.8% +0.7pt - Bancassurance 98.2% 98.3% -0.1pt 1 Derived according to the direct premium published by the NFRA. 2 Based on regular direct premium and number of active agents. 3 Based on the amount of direct premium.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 15 PRC DOMESTIC PROPERTY AND CASUALTY INSURANCE BUSINESS The Group’s PRC domestic property and casualty insurance segment is operated by TPI. TPI is incorporated in the Mainland China and is wholly-owned by the Group. Financial Performance The figures below were the results of TPI’s business, before intra-group eliminations. TPI’s key financial data was summarised below: HK$ million 1H 2026 1H 2025 Change Insurance revenue 17,972.13 17,127.70 +4.9% Insurance service expenses (17,125.22) (15,996.11) +7.1% Net expenses from reinsurance contracts held (277.95) (353.86) -21.5% Insurance service results 568.96 777.73 -26.8% Net investment results 335.67 270.15 +24.3% Profit before taxation 734.80 874.14 -15.9% Profit after taxation 580.20 686.42 -15.5% Combined ratio 1 98.0% 96.7% +1.3pts HK$ million At 30 June 2026 At 31 December 2025 Change Total assets 51,317.90 49,761.17 +3.1% Total equity 11,990.44 11,390.43 +5.3% 1 Combined ratio = (insurance service expenses + (allocation of reinsurance premiums paid – amount recovered from reinsurer) + (net insurance finance expenses for insurance contracts issued – net reinsurance finance income for reinsurance contracts held) + changes in premium reserves) / insurance revenue, figures for the first half of 2025 were on the same baseline.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 16 PRC DOMESTIC PROPERTY AND CASUALTY INSURANCE BUSINESS (Continued) Insurance Performance Premium TPI’s direct premium increased by 5.9% to HK$20.480 billion from HK$19.338 billion in the Last Period. The detailed breakdown of TPI’s direct premium by category are summarised below: HK$ million Business Line 1H 2026 1H 2025 Change Motor 10,933.84 10,444.63 +4.7% Marine 568.15 435.47 +30.5% Non-marine 8,977.88 8,458.32 +6.1% 20,479.87 19,338.42 +5.9% Key Operational Data TPI’s key operational data was summarised below: At 30 June 2026 At 31 December 2025 Change Market share 1 1.8% 1.9% -0.1pt Number of provincial branches 33 33 - Number of sub-branches and marketing centers 1,044 1,044 - Number of customers - Individual 20,801,726 20,563,849 +237,877 - Corporate 723,234 728,632 -5,398 Number of direct sales representatives 9,840 9,996 -156 1 Derived according to the direct premium published by the NFRA.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 17 OVERSEAS PROPERTY AND CASUALTY INSURANCE BUSINESS The Group ’s overseas property and casualty insurance segment covers Hong Kong , Macau, UK, Luxembourg, Singapore and Indonesia, and is operated by CTPI (HK), TP Macau, TP UK, TP Luxembourg, TP Singapore and TP Indonesia respectively. CTPI (HK) , TP Macau, TP UK, TP Luxembourg and TP Singapore are wholly-owned by the Group. TP Indonesia is 55% owned by the Group. TP Singapore’s life insurance business aforementioned in the section headed “Life Insurance Business”. TP Luxembourg started operation since June 2024 and its business is still in the initial state. Financial Performance The figures below are the results of these companies from their operations, before intra -group eliminations. The key financial data of the overseas property and casualty insurance business is summarised below: HK$ million 1H 2026 1H 2025 Change Insurance revenue CTPI (HK) 1,474.51 1,463.32 +0.8% TP Macau 451.46 461.65 -2.2% TP UK 138.03 135.52 +1.9% TP Singapore 1 450.66 432.57 +4.2% TP Indonesia 318.83 291.21 +9.5% Insurance service results CTPI (HK) 183.58 121.77 +50.8% TP Macau 84.20 83.35 +1.0% TP UK 6.45 55.93 -88.5% TP Singapore 1 56.15 53.72 +4.5% TP Indonesia 14.70 31.28 -53.0% Net investment results CTPI (HK) 68.23 88.02 -22.5% TP Macau 29.49 36.66 -19.6% TP UK 11.37 3.52 +223.0% TP Singapore 1 26.21 41.36 -36.6% TP Indonesia 8.86 6.80 +30.3% Profit/(loss) before taxation CTPI (HK) 231.86 145.13 +59.8% TP Macau 110.27 118.72 -7.1% TP UK 7.77 (34.37) N/A TP Singapore 1 43.49 26.20 +66.0% TP Indonesia 31.11 33.97 -8.4% Profit/(loss) after taxation CTPI (HK) 191.65 122.00 +57.1% TP Macau 96.57 105.93 -8.8% TP UK 6.16 (35.03) N/A TP Singapore 1 32.99 21.68 +52.2% TP Indonesia 23.30 29.69 -21.5% 1 The results of TP Singapore from its property and casualty insurance business, which do not include its life insurance business.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 18 OVERSEAS PROPERTY AND CASUALTY INSURANCE BUSINESS (Continued) Combined Ratio Combined ratios2 of overseas property and casualty business are summarised below: HK$ million 1H 2026 1H 2025 Change CTPI (HK) 90.8% 96.5% -5.8pts TP Macau 83.4% 84.7% -1.3pts TP UK 95.3% 58.7% +36.6pts TP Singapore 1 90.0% 92.3% -2.3pts TP Indonesia 95.0% 89.0% +6.0pts 1 The results of TP Singapore from its property and casualty insurance business, which do not include its life insurance business. 2 Combined ratio = (insurance service expenses + (allocation of reinsurance premiums paid – amount recovered from reinsurer) + (net insurance finance expenses for insurance contracts issued – net reinsurance finance income for reinsurance contracts held) + changes in premium reserves) / insurance revenue, figures for the first half of 2025 were on the same baseline. Insurance Performance Premium Direct premium by overseas property and casualty business are summarised below: HK$ million 1H 2026 1H 2025 Change CTPI (HK) 1,377.60 1,462.65 -5.8% TP Macau 515.13 572.89 -10.1% TP UK 206.30 210.99 -2.2% TP Singapore 1 432.89 480.52 -9.9% TP Indonesia 402.63 337.79 +19.2% 1 The results of TP Singapore from its property and casualty insurance business, which do not include its life insurance business.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 19 REINSURANCE BUSINESS The Group’s reinsurance business is mainly operated by TPRe and TPRe (China). TPRe is 75% owned by the Group. TPRe (China) was incorporated in the Mainland China in 2015 and is wholly-owned by TPRe. Financial Performance The figures below were the consolidated results of reinsurance operating segment, before intra-group eliminations. The key financial data of the reinsurance business are summarised below: HK$ million 1H 2026 1H 2025 Change Insurance revenue 4,560.21 4,161.54 +9.6% Insurance service expenses (3,738.24) (3,653.02) +2.3% Net expenses from reinsurance contracts held (417.35) (226.92) +83.9% Insurance service results 404.62 281.60 +43.7% Net investment results 399.11 600.50 -33.5% Profit before taxation 914.16 887.16 +3.0% Profit after taxation 838.64 871.80 -3.8% Combined ratio 1 96.2% 96.4% -0.2pt HK$ million At 30 June 2026 At 31 December 2025 Change Total assets 45,098.87 46,036.75 -2.0% Total equity 13,482.48 13,324.31 +1.2% 1 Combined ratio = (insurance service expenses + (allocation of reinsurance premiums paid – amount recovered from reinsurer) + (net insurance finance expenses for insurance contracts issued – net reinsurance finance income for reinsurance contracts held) + changes in premium reserves) / insurance revenue, figures for the first half of 2025 were on the same baseline, property and casualty reinsurance only.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 20 REINSURANCE BUSINESS (Continued) Insurance Performance Premium Reinsurance business’s total premium increased by 2.5% to HK$ 9.239 billion from HK$ 9.018 billion in the Last Period. Total premium by types of reinsurance contracts are summarised below: HK$ million 1H 2026 1H 2025 Change Life 2,266.94 2,141.27 +5.9% Non-life 6,972.46 6,876.68 +1.4% 9,239.40 9,017.95 +2.5%
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 21 ASSET MANAGEMENT BUSINESS The Group’s asset management business is mainly operated by TPAM, TPCA, TP Fund, TPFH, and TPP, which engage in the provision of asset management services to the Group in managing its RMB and non- RMB investment portfolios and the annuity investment and entrustment services. TPAM is incorporated in the Mainland China and is 80% owned by the Group. TPCA is incorporated in the Mainland China in 2017. TPCA is 60% owned by TPL and 40% owned by TPI. TP Fund being acquired by TPAM in September 2016, is 56.3% owned by TPAM and 38.5% owned by TPL. TPFH is incorporated in Hong Kong and is wholly-owned by the Group. TPP operates the Group’s annuity and pension plan’s investment, entrustment services etc., apart from its corporate and personal pension products, and group life insurance business aforementioned in the section headed “Life Insurance Business”. Financial Performance The figures below were the results of asset management business, before intra-group eliminations. The key financial data of the asset management business operated is summarised below: HK$ million 1H 2026 1H 2025 Change Management fee income 1,524.99 1,359.31 +12.2% Profit before taxation 665.25 335.52 +98.3% Profit after taxation 531.74 199.72 +166.2% Assets Under Management The assets under management of TPAM increased steadily, due to new premium inflows and market value fluctuations of existing assets. The assets under management of TPCA increased due to proactive expanding new projects. The assets under management of TPFH declined due to capital outflows. The assets under management of TPP increased due to the proactive expansion of enterprise annuity and occupational annuity businesses. The size of assets under management of major subsidiaries is summarised below: HK$ million At 30 June 2026 At 31 December 2025 Change TPAM 1,763,824.77 1,583,733.75 +11.4% TPCA 85,749.81 71,656.96 +19.7% TPFH 99,118.57 105,878.00 -6.4% TPP 940,147.37 818,056.51 +14.9%
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 22 ASSET MANAGEMENT BUSINESS (Continued) Assets Under Management (Continued) Due to premium inflows and rising market value of existing assets, the assets of the Group’ s insurance funds increased by 11.4% over the 2025 year-end. The Group took the initiative to enhance the quality of its third-party asset management business by reducing the engagement in low-rate mandates, whilst actively developing new business, resulting in a 3.7% increase in third -party assets under management over the 2025 year-end. Managed assets within the Group and for third parties is summarised below: HK$ million At 30 June 2026 At 31 December 2025 Change Insurance fund assets within the Group 1,941,506.77 1,743,052.49 +11.4% Managed assets for third parties 1,060,457.08 1,022,303.84 +3.7% Insurance Fund Management within the Group Investment Income The total investment income and investment yield of the Group are summarised below: HK$ million 1H 2026 1H 2025 Change Net investment income 1 26,215.42 25,267.99 +3.7% Including: Share of results of associates and joint ventures 2 727.87 1,070.57 -32.0% Net realised and unrealised investment gains 3 21,736.67 (3,518.93) N/A Total investment income 47,952.09 21,749.06 +120.5% Annualised net investment yield 2.85% 3.11% -0.26pt Annualised total investment yield 4 5.21% 2.68% +2.53pts Unannualised comprehensive investment yield 5 2.98% 1.86% +1.12pts 1 Including the interest s income from deposits, interests income from debt financial assets, dividends from equity financial assets, rental income from investment properties , share of results of associates and joint ventures and deducting interest expenses on securities sold under repurchase agreements. 2 Including the income generated from asset management products , funds etc., that has been classified as share of results of associates and joint ventures. 3 Including the income from the spread of investment securities, gain or loss on changes in fair value and impairment loss of investment assets. 4 In the calculation of annualised total investment yield, as the denominator, the average investment assets take into account the effect of securities purchased under resale agreements and securities sold under repurchase agreements. When annualising the total investment yield, the interests income from deposits, interests income from debt financial assets, dividend from equity financial assets, rental income from investment properties, share of results of associates and joint ventures, income from the spread of securities and impairment loss of assets, deducting interest expenses on securities sold under repurchase agreements were multiplied by two. 5 Unannualised comprehensive investment yield included the changes in fair value of debt securities under FVOCI of approximately HK$14.708 billion, if excludes the changes in fair value of debt securities under FVOCI, the unannualised comprehensive investment yield for the first half of 2026 was 2.19%.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 23 ASSET MANAGEMENT BUSINESS (Continued) Assets Under Management (Continued) Insurance Fund Management within the Group (Continued) Net investment income increased by 3.7% from HK$25.268 billion in the first half of 2025 to HK$26.215 billion in the first half of 2026. The reali sed and unreali sed investment gains changed from a loss of HK$3.519 billion in the first half of 2025 to a gain of HK$21.737 billion in the first half of 2026, mainly because the gains on FVPL equities were significantly better than the Last Period. Under the combined influence of the above factors, the total investment income of investment assets of the Group amounted to HK$47.952 billion in the first half of 2026, significantly increased by 120.5% over the HK$21.749 billion in the first half of 2025; the annualised total investment yield increased from 2.68% in the first half of 2025 to 5.21% in the first half of 2026. Investment Portfolio The assets allocation of the investment portfolio of the Group’s insurance funds is as follows: HK$ million At 30 June 2026 % of Total At 31 December 2025 % of Total By investment category Fixed income Term deposits 84,606.55 4.4% 78,533.63 4.5% Debt securities 1,430,358.62 73.7% 1,326,751.49 76.1% Debt products 41,536.57 2.1% 46,352.71 2.7% Equity investments Equity securities 236,443.98 12.2% 212,413.03 12.2% Investment Funds 114,419.55 5.9% 77,073.20 4.4% Other equity investments 16,471.47 0.8% 12,451.75 0.7% Long-term equity investments 10,978.73 0.6% 12,480.12 0.7% Investment properties 23,669.37 1.2% 23,662.64 1.4% Precious metal investment 96.65 0.0% 32.38 0.0% Cash, cash equivalents and others Cash and cash equivalents 54,871.05 2.8% 54,360.24 3.1% Securities purchased under resale agreements/ securities sold under repurchase agreements (71,945.77) -3.7% (101,058.70) -5.8% Total invested assets 1,941,506.77 100.0% 1,743,052.49 100.0% Based on research and judgement of the capital market, the Group optimised its investment portfolio structure. As at the end of June 2026, the proportion of fixed income investments to the insurance fund within the Group was 80.2%, the proportion of equity investments was 18.9%, the proportion of long-term equity investments was 0.6%, the proportion of investment properties was 1.2% and the proportion of cash, cash equivalents and others was -0.9%.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 24 ASSET MANAGEMENT BUSINESS (Continued) Assets Under Management (Continued) Insurance Fund Management within the Group (Continued) Analysis of Investment in Securities Equity Investments Remained Stable and Balanced As at the end of June 2026, stock investments held by the Group amounted to approximately HK$236.4 billion, representing approximately 10.9% of the total assets. The Group adhere d to the long-term value investment philosophy, primarily invested in dividend- paying value stocks with stable profitability and strong operating cash flows, as well as in leading technology companies with core competitiveness that align with the strategic emergin g industries outlined in the national 15 th Five-Year Plan, maintaining a prudent and balanced investment style. High Credit Ratings for Debt Securities As at the end of June 2026, debt securities held by the Group amounted to HK$1,430.4 billion, representing approximately 66.0% of the total assets, of which 93.6% were PRC domestic bond investments. Within the PRC domestic bonds, 99.98% are bonds with AAA ratings, government bonds and financial policy bonds, and all are rated BBB or higher. Overseas bond investment constituted 6.4% of debt securities held by the Group, and about 98.5% of them are investment grade bonds with international ratings of BBB or higher. Relatively Good Credit Status for Debt Products As at the end of June 2026, debt products held by the Group amounted to HK$41.537 billion, representing approximately 1.9% of the total assets. The credit ratings of the PRC domestic debt products remain relatively high, with products rated AAA accounting for 68.6%, the remaining being low risk bank wealth management products which accounted for 31.4%; overseas debt products were mainly private debts issued by leading international institutions . The Group’s investment in debt assets has gone through a rigorous investment decision-making process, and done a good job in post-investment management. In general, the Group has made sufficient assessment on its alternative investment risks, which indicated sound asset credit. Relatively Low Proportion of Real Estate Financial Investment Debt Products As at the end of June 2026, real estate financial investment debt products amounted to approximately HK$9.834 billion, representing 0.5% of the total assets, and remained unchanged over the 2025 year- end. The credit ratings of the real estate debt products remained high, with relatively comprehensive credit enhancement measures in place, and major projects we re located in tier -1, provincial capital cities or advanced tier-2 cities. Third-party Assets under Management In the first half of 2026 , the Group proactively enhanced the quality of third- party asset management business by reducing the size of entrusted assets with lower management fee rates whilst actively developing enterprise annuity and pension business. As at the end of June 2026, the total third -party entrusted investment assets managed by the Group amounted to HK$ 1,060.5 billion, increased by 3.7% over the 2025 year-end. In the first half of 2026 , TPAM (including TP Fund) recorded a total management fee income before taxation and deductions of HK$1.109 billion, including HK $221 million derived from assets outside the Group, which accounted for 19.9% of total management fees.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 25 SOLVENCY As at 30 June 2026, t he solvency ratios of PRC domestic major subsidiaries TPL, TPI and TPP were significantly higher than PRC domestic regulatory requirements. At 30 June 2026 At 31 December 2025 Change Core Solvency Ratio TPL 128% 143% -15pts TPI 171% 170% +1pt TPP 155% 160% -5pts Comprehensive Solvency Ratio TPL 215% 230% -15pts TPI 240% 236% +4pts TPP 212% 215% -3pts
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 26 LIQUIDITY AND FINANCIAL RESOURCES The Group’s cash and bank deposits as at 30 June 2026 amounted to HK$139.478 billion (31 December 2025: HK$132.894 billion). FINANCIAL LEVERAGE The Group’s interest-bearing notes and bank facilities drawn as at 30 June 2026 amounted to HK$16.058 billion and HK$ 61.564 billion, respectively (31 December 2025: HK$ 13.290 billion and HK$6 4.406 billion). As at 30 June 2026, CTIH’s consolidated financial leverage ratio (calculated by interest -bearing debts over the summation of interest-bearing debts plus ordinary shareholders’ equity and the contractual service margin after taxation) was 21.9% (31 December 2025: 23.2%). CAPITAL STRUCTURE The Company did not issue new Shares during the Period and in 2025. The Company had issued USD2 billion of perpetual subordinated capital securities in March 2023, with an initial distribution rate of 6.4%, callable in 2028. Particulars are set out in Note 26 to the consolidated financial statements. STAFF AND STAFF REMUNERATION As at 30 June 2026, the Group had a total of 57,205 employees ( 30 June 2025: 61,826 employees), representing a decrease of 4,621 employees. Total staff costs (excluding retirement plans contributions) for the Period amounted to HK$6.742 billion (first half of 2025: HK$6.546 billion), with an increase of 3.0%. Bonuses are linked to both the performance of the Group and the performance of the individual. PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES During the Period, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities (including sale of the treasury shares).
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 27 OUTLOOK Steadfastly Pursuing High-quality Development and Striving for a Strong Start of the 15th Five-Yea r Plan At present, our country’s development is at a stage where strategic opportunities, risks, and challenges are concurrent and uncertainties and unforeseen factors are on the rise. Looking ahead to the second half of the year, the fundamentals and basic trend of China ’s long-term economic development remain unchanged, underpinned by a solid foundation, multiple advantages, strong resilience , and vast potential. The Outline of the National 15th Five-Year Plan has charted a new blueprint for development over the next five years , covering areas such as agricultural insurance, pension insurance , and long-term care insurance. This not only charts the course for the insurance sector to serve the construction of a financial powerhouse and contribute to t he “Five Target Areas” of finance, but also offers vast development opportunities. The HKSAR Government is currently formulating its first five-year plan, and the integrated development of the Greater Bay Area has entered the fast track. Major strategic initiatives, such as the construction of a modern industrial system, harbour immense potential and opportunities for the development of the insurance sector. Regulatory requirements are clear and well -defined, and the “Aligning Sales Practices with Regulator y Filings” policy is being vigorously advanced, effectively promoting the sector ’s sustained and healthy development. Digital and intelligent technologies, such as artificial intelligence, are reshaping the insurance sector’s value creation model, providing new opportunities for the industry’s development. China Taiping will consistently maintain the strategic focus, stay persever ant and keep moving forward until the goal is met, make solid progress in advancing its high-quality development strategy. It wi ll continue to focus its efforts on building first-class coverage capabilities, first-class customer service, first- class professional organisations, first -class risk management systems, first -class governance mechanisms and first-class talent teams, thereby establishing a new development framework characterised by a clearer focus on core businesses, a more comprehensive strategic layout and stronger synergies, and to build a world-class insurance group that offers the greatest value growth and is worthy of customers ’ trust. In the second half of the year, we will continue to center on the core priorities of “Risk Prevention, Management Excellence, Growth Acceleration , Safety Assurance ”, steadfastly fulfil responsibilities and missions , leverage the role of insurance, and adopt a problem - and goal-oriented approach to ensure the effective implementation of key tasks for the year. In serving the high-quality economic and social development, we will accelerate the Group’s qualitative enhancement and quantitative growth at a reasonable pace, thereby ensuring a strong start to the 15 th Five-Year Plan.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 28 EMBEDDED V ALUE BACKGROUND The Group consists of three major business segments: the life insurance business, property and casualty insurance business and reinsurance business. The Group also has other companies and operations in the areas of investment holding, asset management, pensions and other businesses. The life insurance segment operated by TPL, a 75.1%-owned subsidiary, is a significant part of the Group in terms of gross premiums written, total assets and profitability. In order to provide investors with additional informati on to evaluate the profitability and valuation of TPL, the Group discloses the Embedded Value and New Business Value of TPL in its Annual and Interim Results Announcements. The Embedded Value consists of the shareholders’ adjusted net worth plus the present value of future expected cash flows to shareholders from the in-force business, less the costs of holding regulatory solvency capital to support the in-force business. The New Business Value represents an actuarially determined estimate of the economic value arising from the new life insurance business issued during the Period. The Group’s other business segments (including property and casualty insurance, reinsurance and pension and group life insurance) (collectively, “Other Core Operations”) continue to develop well. To provide investors with further information on these operations, the Group also discloses the Group Embedded Value. The Group Embedded Value is defined as the Adjusted Net Worth of the Other Core Operations plus the Embedded Value of TPL. The Adjusted Net Worth of the Other Core Operations is determined by Hong Kong Financial Reporting Standards, with marked-to-market and goodwill adjustments. Please note that the Group Embedded Value calculation does not include any valuation for future new business. BASIS OF PREPARATION The Group has appointed KPMG Advisory (China) Limited (“KPMG Advisory”) to examine whether the methodology and assumptions used by TPL in the preparation of the Embedded Value and the New Business Value as at 30 June 2026 are consistent with the valuation standard, general actuarial principles, related laws & regulations, as well as available market information . KPMG Advisory has also examined the adjustment steps used by the Group for the adjusted net worth of its other core businesses in preparing the Group Embedded Value. CAUTIONARY STATEMENT The calculations of Embedded Value and the New Business Value of TPL are based on certain assumptions with respect to future experience. Thus, the actual results could differ significantly from what were envisioned when these calculations were made. In addition, the Group Embedded Value is also based on certain assumptions, and should not be viewed as the only benchmark for evaluating and valuing the businesses and operations of the Group. From an investor’s perspective, the valuation of CTIH is measured by the stock market price of the Company’s shares on any particular day. In valuing CTIH’s shares, investors should take into account not only the Embedded Value and the New Bus iness Value of TPL and the Group Embedded Value, but also various other considerations. In addition, TPL is 75.1%-owned by the Company. The Embedded Value and the New Business Value of TPL as at 30 June 2026 as disclosed below should therefore not be applied 100% in valuing CTIH. Investors are advised to pay particular attention to this factor, as well as the other assumptions underlying the calculations of the Embedded Value and New Business Value of TPL and the Group Embedded Value, if they believe such calculations are important and material to the valuation of the Company.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 29 EMBEDDED V ALUE (Continued) GROUP EMBEDDED V ALUE HK$ million At 30 June 2026 At 31 December 2025 Adjusted Net Worth 1 232,313 222,205 Value of in-force business before cost of capital for TPL 149,647 133,385 Cost of capital for TPL (78,253) (74,987) Group Embedded Value 303,707 280,603 Attributable to: Owners of the Company 227,606 209,519 Non-controlling interests 76,101 71,084 Group Embedded Value 303,707 280,603 1 The adjusted net worth is based on CTIH’s net asset value, after making the following major adjustments: i Goodwill and intangible assets produced during consolidation have been deducted; ii Adjustment for after -tax difference between market value and book value of assets; and iii Adjustment for after -tax difference between provisions and valuation-related liabilities. Group Embedded Value after adjustment measured in RMB at 30 June 2026 was RMB263.785 billion (31 December 2025: RMB253.446 billion).
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 30 EMBEDDED V ALUE (Continued) TPL’s Embedded Value 1 EMBEDDED V ALUE HK$ million At 30 June 2026 At 31 December 2025 Adjusted net worth 193,535 186,118 Value of in-force business before cost of capital 149,647 133,385 Cost of capital (78,253) (74,987) Embedded Value 264,929 244,516 Attributable to: Owners of the Company 198,962 183,632 Non-controlling interests 65,967 60,884 Embedded Value 264,929 244,516 Embedded Value measured in RMB at 30 June 2026 was RMB230.104 billion (31 December 2025 : RMB220.852 billion), among them, the adjusted net worth was RMB168.095 billion (31 December 2025: RMB168.106 billion).
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 31 EMBEDDED V ALUE (Continued) TPL’s Embedded Value (Continued) 2 NEW BUSINESS V ALUE HK$ million For the Past 6 Months as at 30 June 2026 For the Past 6 Months as at 30 June 2025 New Business Value before cost of capital 8,621 7,874 Cost of capital (1,404) (1,096) New Business Value after cost of capital 7,216 6,778 New Business Value measured in RMB for the first half of 2026 was RMB6.268 billion (first half of 2025: RMB6.181 billion). New business margin of TPL for the first half of 2026 was 20.1% (first half of 2025: 21.6%); from which the new business margin for individual business was 23.5% (first half of 2025: 22.7%); new business margin for bancassurance business was 18.0% (first half of 2025: 20.0%). New Business Value by line of business was as follows: HK$ million For the Past 6 Months as at 30 June 2026 For the Past 6 Months as at 30 June 2025 Individual 5,023 4,466 Bancassurance 2,059 2,108 Others 1 135 204 7,216 6,778 Note: Figures may not match totals due to rounding. 1 Others mainly consists of channel business such as internet & telemarketing and group insurance.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 32 Condensed Consolidated Statement of Profit or Loss for the six months ended 30 June 2026 - unaudited (Expressed in Hong Kong dollars) Six months ended 30 June 2026 58,926,367 (44,657,210) (1,393,290) 12,875,867 21,019,013 17,397,827 3,621,186 26,038,738 166,476 727,866 47,952,093 (38,471,693) 224,710 (11,033) 9,694,077 3,734,488 (4,662,691) (1,105,590) 20,536,151 (2,884,452) 17,651,699 12,872,659 2025 55,963,559 (42,008,623) (1,638,600) 12,316,336 19,895,950 15,485,267 4,410,683 701,893 80,644 1,070,572 21,749,059 (22,411,331) 167,965 (40,344) (534,651) 3,532,036 (3,746,756) (1,304,758) 10,262,207 (1,070,519) 9,191,688 6,764,406 4,779,040 17,651,699 3.442 3.442 2,427,282 9,191,688 1.744 Diluted 1.744 Notes $’000 dollars $’000 dollars Insurance revenue Insurance service expenses Net expenses from reinsurance contracts held Interest revenue Financial assets not measured at fair value through profit or loss Financial assets measured at fair value through profit or loss Other investment return Net impairment gains/(losses) on financial assets Share of results of associates and joint ventures Finance expenses from insurance contracts issued Finance income from reinsurance contracts held Net changes in investment contract liabilities Other income Other operating expenses Other finance costs Income tax charges Owners of the Company Non-controlling interests Basic 3 9 5 6 7 4(a) 4(b) 4(c) 4(d) 8 9 10(a) 10 11 13 Insurance service results Investment return Net investment results Profit before taxation Profit after taxation Attributable to: Earnings per share attributable to the ordinary shareholders The accompanying notes form an integral part of these interim financial statements.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 33 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the six months ended 30 June 2026 - unaudited (Expressed in Hong Kong dollars) 2025 9,191,688 Revaluation gain arising from reclassification of own-use properties to investment properties, net of deferred tax 48,597 Exchange differences on translation of the financial statements of subsidiaries, associates and joint ventures which are not foreign operations 1,659,779 Changes in the fair value of equity investments at fair value through other comprehensive income, 1,851,182 (11,997) 182,406 4,603,896 (10,798,159) 73,512 (42,786) Total comprehensive income for the period Six months ended 30 June 2026 Profit after taxation 17,651,699 Other comprehensive income: Items that will not be reclassified to profit or loss: (14,212) Attributable to: 6,758,118 Owners of the Company 4,931,730 Non-controlling interests 1,826,388 6,758,118 $’000 $’000 3,711 5,534,706 (6,010,695) 963,531 Items that may be subsequently reclassified to profit or loss: 10,942,364 (10,747,225) (51,321) (25,053) 18,247,505 13,403,972 4,843,533 18,247,505 net of deferred tax Finance income/(expenses) from insurance contracts issued, net of deferred tax Exchange differences on translation of the financial statements of foreign operations Changes in the fair value of debt investments at fair value through other comprehensive income, net of deferred tax Finance expenses from insurance contracts issued, net of deferred tax Finance income/(expenses) from reinsurance contracts held, net of deferred tax Share of other comprehensive income of associates and joint ventures, net of deferred tax The accompanying notes form an integral part of these interim financial statements.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 34 Condensed Consolidated Statement of Financial Position as at 30 June 2026 - unaudited (Expressed in Hong Kong dollars) At 30 June 2026 6,806,378 40,282,153 23,669,374 4,511,230 68,462,757 355,827 271,346 10,978,731 14,399,117 508,915,105 79,363,573 1,144,897,212 106,150,956 19,699,710 1,351,569 194,149 13,637,710 At 31 December 2025 6,527,578 40,402,413 23,662,636 4,426,316 68,491,365 353,824 264,132 12,480,116 14,512,962 476,555,448 92,991,233 77,832,605 5,673,005 1,313,071 721,593 13,515,217 Statutory deposits Fixed assets - Property and equipment - Investment properties - Right-of-use assets Intangible assets Interests in associates and joint ventures Deferred tax assets Financial investments - At fair value through profit or loss - At amortised cost - Debt investments at fair value through other comprehensive income 1,027,695,277 - Equity investments at fair value through other comprehensive income Securities purchased under resale agreements Amounts due from group companies Insurance contract assets Reinsurance contract assets Finance lease receivables Other assets Pledged and restricted bank deposits Deposits at banks with original maturity more than three months Cash and cash equivalents 54,360,241 1,986,586,643 Insurance contract liabilities Reinsurance contract liabilities Investment contract liabilities Deferred tax liabilities Interest-bearing notes Bank borrowings Lease 40,546,298 18,547,991 1,090,964 76,709,203 54,871,047 1,727,662,053 292,806 33,957,555 1,864,248 16,058,029 61,564,464 1,254,093 91,645,478 16,210 56,755,653 1,112,795 1,992,183,384 175,066,259 41,027,256 20,265,672 1,120,870 70,885,178 1,555,589,282 169,072 25,591,743 1,835,968 13,290,101 64,405,586 1,242,949 106,731,701 17,500 52,278,931 640,863 1,821,793,696 164,792,947 Notes $’000 14 15 $’000 Assets liabilities Securities sold under repurchase agreements Amounts due to group companies Other payables and accruals Current taxation Goodwill 16 17 18 19 20 21 22 23 17 2,167,249,643 Liabilities Net assets
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 35 Condensed Consolidated Statement of Financial Position (Continued) as at 30 June 2026 - unaudited (Expressed in Hong Kong dollars) At 30 June 2026 Capital and reserves attributable to owners of the Company 40,771,408 62,866,345 103,637,753 15,987,000 119,624,753 Non-controlling interests 55,441,506 Total equity 175,066,259 At 31 December Share capital Reserves Perpetual subordinated capital securities 164,792,947 2025 40,771,408 54,383,476 95,154,884 15,987,263 111,142,147 53,650,800 Notes 24 25 26 $’000 $’000 The accompanying notes form an integral part of these interim financial statements.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 36 Condensed Consolidated Statement of Changes in Equity for the six months ended 30 June 2026 - unaudited (Expressed in Hong Kong dollars) Attributable to owners of the Company Perpetual Fair Ordinary subordinated Non- Share Capital Merger Exchange value Revaluation Retained shareholders capital controlling capital reserve reserve reserve reserve reserve profits sub-total securities interests Total 40,771,408 (4,995,485) (6,842,218) (5,297,014) 58,390,517 (104,457,505) 1,691,118 115,894,063 95,154,884 15,987,263 53,650,800 164,792,947 - - - - - - - 12,872,659 12,872,659 - 4,779,040 17,651,699 - - - 4,334,158 3,595,673 (7,402,229) 3,711 - 531,313 - 64,493 595,806 - - - 4,334,158 3,595,673 (7,402,229) 3,711 12,872,659 13,403,972 - 4,843,533 18,247,505 - - - - - - - (4,420,643) (4,420,643) - - (4,420,643) - - - - - - - - - - (2,807,948) (2,807,948) - - - - - - - (500,460) (500,460) 500,460 - - - - - - - - - - - (500,723) (244,879) (745,602) - - - - (356,234) - - 356,234 - - - - 40,771,408 (4,995,485) (6,842,218) (962,856) 61,629,956 (111,859,734) 1,694,829 124,201,853 103,637,753 15,987,000 55,441,506 175,066,259 Insurance finance reserve Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000$’000 Balance at 1 January 2026 Profit for the period Other comprehensive income for the period, net of deferred tax Total comprehensive income Dividend declared to shareholders Dividend declared by subsidiaries to non-controlling interests Distribution to holders of perpetual subordinated capital securities Declared to holders of perpetual (subordinated) capital securities Disposal of equity investments at fair value through other comprehensive income Balance at 30 June 2026 12(a) 26 26 16(ii)
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 37 Condensed Consolidated Statement of Changes in Equity (Continued) for the six months ended 30 June 2026 - unaudited (Expressed in Hong Kong dollars) Attributable to owners of the Company Perpetual Fair Ordinary subordinated Non- Share Capital Merger Exchange value Revaluation Retained shareholders capital controlling capital reserve reserve reserve reserve reserve profits sub-total securities interests Total Balance at 1 January 2025 40,771,408 (5,618,303) (6,842,218) (7,854,208) 80,084,469 (121,936,408) 1,639,954 90,835,714 71,080,408 15,990,486 35,336,556 122,407,450 Profit for the period - - - - - - - 6,764,406 6,764,406 - 2,427,282 9,191,688 Other comprehensive income for the period, net of deferred tax - - - 1,474,194 4,953,520 (8,308,497) 48,107 - (1,832,676) - (600,894) (2,433,570) Total comprehensive income - - - 1,474,194 4,953,520 (8,308,497) 48,107 6,764,406 4,931,730 - 1,826,388 6,758,118 Dividend declared to shareholders - - - - - - - (1,257,906) (1,257,906) - - (1,257,906) Dividend declared by subsidiaries to non-controlling interests - - - - - - - - - - (1,194,654) (1,194,654) Issuance of perpetual capital securities - - - - - - - - - - 9,752,609 9,752,609 Distribution to holders of perpetual subordinated capital securities - - - - - - - (498,179) (498,179) 498,179 - - Declared to holders of perpetual subordinated capital securities - - - - - - - - - (498,470) - (498,470) Deemed acquisition of a subsidiary - - - - - - - - - - 478,064 478,064 Acquisition of partial interests in a subsidiary - (18,388) - - - - - - (18,388) - 7,476 (10,912) Disposal of equity investments at fair value through other comprehensive income - - - - 89,041 - - (89,041) - - - - Balance at 30 June 2025 40,771,408 (5,636,691) (6,842,218) (6,380,014) 85,127,030 (130,244,905) 1,688,061 95,754,994 74,237,665 15,990,195 46,206,439 136,434,299 Insurance finance reserve Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 12(a) 26 26 26 28(a) 28(b) 16(ii) $’000 The accompanying notes form an integral part of these interim financial statements.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 38 Condensed Consolidated Statement of Cash Flows for the six months ended 30 June 2026 - unaudited (Expressed in Hong Kong dollars) Six months ended 30 June 2026 82,309,033 (80,409,875) (3,026,347) 1,637,995 510,806 54,360,241 54,871,047 18,527,136 36,343,911 54,871,047 2025 Net cash generated from operating activities 60,680,503 Net cash used in investing activities (71,565,276) Net cash generated from/(used in) financing activities 8,056,064 Effect of changes in exchange rates 524,738 Net increase/(decrease) in cash and cash equivalents (2,303,971) Cash and cash equivalents at 1 January 44,388,582 Cash and cash equivalents at 30 June 42,084,611 Analysis of the balances of cash and cash equivalents: Deposits with banks and other financial institutions with original maturity less than three months 11,674,180 Cash at bank and on hand 30,410,431 42,084,611 Notes $’000 20 20 $’000 The accompanying notes form an integral part of these interim financial statements.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 39 Notes to the Unaudited Condensed Consolidated Financial Statements (Expressed in Hong Kong dollars) 1 BASIS OF PREPARATION The unaudited condensed consolidated financial statements have been prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”), and with HKAS 34 Interim financial reporting issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”). It was authorised for issuance on 25 August 2026. The financial statements relating to the year ended 31 December 2025 that is included in the condensed consolidated interim financial statements for the six months ended 30 June 2026 as comparative information does not constitute the Company ’s statutory annual consolidated financial statements for that yea r. Further inform ation relating to these statutory financial statements required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap. 622) is as follows: The Company has delivered the financial statements for the year ended 31 December 2025 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Hong Kong Companies Ordinance (Cap. 622). The Company 's auditor has reported on those financial statements. The auditor ’s report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under sections 406(2), 407(2) or (3) of the Hong Kong Companies Ordinance (Cap. 622). The presentati on of financial statement s in conformity with HKFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The measurement basis used in the preparation of the condensed financial statements is the historical cost basis except that the following assets and liabilities are stated at fair value or measured primarily based on actuarial methods as explained in the accountin g policies set out in the Group’s annual financial statements for the year ended 31 December 2025: Stated at fair value (i) Investment properties; (ii) Financial investments at fair value through profit or loss; (iii) Debt investments at fair value through other comprehensive income; (iv) Equity investments at fair value through other comprehensive income; and (v) Certain investment contract liabilities. Measured primarily based on actuarial methods Insurance and reinsurance contract assets and liabilities.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 40 1 BASIS OF PREPARATION (Continued) The accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended 30 June 2026 are the same as those followed in the preparation of the Group ’s annual financial statements for the year ended 31 December 2025, except for the adoption of new standards effective as at 1 January 2026. The Group has not early adopted any other standards, interpretation or amendments that has been issued but not effective. New accounting standards and amendments adopted by the Group for the first time of financial year beginning on 1 January 2026 In the current interim period, the Group has applied the following amendments to HKFRS Accounting Standards issued by the HKICPA. Amendments to HKFRS 9 Amendments to the Classification and Measurement of Financial and HKFRS 7 Instruments The Group does not elect to apply the exception introduced by the amendments to any electronic payment systems. The application of the above amendments to HKFRS Accounting Standards in the current period has had no material impact on the Group’ s financial performance and positions for the current and Last Period.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 41 2 SEGMENT INFORMATION The Group is organised primarily based on different types of businesses. The information reported to the Board, being the chief operating decision maker, for the purpose of resources allocation and performance assessment, are prepared and reported on such basis. Accordingly, the G roup’s operating segments are detailed as follows: - Life insurance business; - PRC domestic property and casualty insurance business; - Overseas property and casualty insurance business; - Reinsurance business; and - Other businesses which comprised the asset management business, insurance intermediary business, financial leasing, property investment business, securities dealing and broking business. Information regarding the above segments is reported below. Management monitors the operating results of the Group’ s business units separately for the purpose of performance assessment.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 42 2 SEGMENT INFORMATION (Continued) (a) Segmental statement of profit or loss for the six months ended 30 June 2026 Six months ended 30 June 2026 PRC Inter- domestic Overseas segment property property elimination Life and casualty and casualty Other and insurance insurance insurance Reinsurance businesses adjustment Total 33,950,627 17,972,130 2,821,663 4,560,214 - (378,267) 58,926,367 (22,040,816) (17,125,222) (2,121,172) (3,738,242) - 368,242 (44,657,210) (317,278) (277,948) (369,445) (417,357) - (11,262) (1,393,290) Insurance service results 11,592,533 568,960 331,046 404,615 - (21,287) 12,875,867 19,050,574 365,663 233,684 728,312 147,895 492,885 21,019,013 25,396,112 234,947 5,810 78,103 (147,537) 471,303 26,038,738 144,654 2,132 325 13,517 4,758 1,090 166,476 734,869 (50,313) - - 14,025 29,285 727,866 Investment return 45,326,209 552,429 239,819 819,932 19,141 994,563 47,952,093 (37,617,065) (252,876) (177,262) (458,427) - 33,937 (38,471,693) 66,030 36,113 112,264 48,638 - (38,335) 224,710 - - - (11,033) - - (11,033) Net investment results 7,775,174 335,666 174,821 399,110 19,141 990,165 9,694,077 901,543 (4,772) 48,399 199,060 4,705,284 (2,115,026) 3,734,488 (1,626,377) (116,949) (105,277) (58,787) (4,039,004) 1,283,703 (4,662,691) (114,581) (48,108) (11,637) (29,842) (995,867) 94,445 (1,105,590) Profit before taxation 18,528,292 734,797 437,352 914,156 (310,446) 232,000 20,536,151 (1,846,679) (154,599) (73,857) (75,514) (717,560) (16,243) (2,884,452) Profit after taxation 16,681,613 580,198 363,495 838,642 (1,028,006) 215,757 17,651,699 (4,779,040) Profit attributable to owners of the Company 12,872,659 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Insurance revenue Insurance service expenses Net expenses from reinsurance contracts held Interest revenue Other investment return Net impairment gains/(losses) on financial assets Share of results of associates and joint ventures Finance expense from insurance contracts issued Finance income from reinsurance contracts held Net changes in investment contract liabilities Other income Other operating expenses Other finance costs Income tax charges Non-controlling interests Segment revenue (including insurance revenue and investment return) and segment profit/(loss) represent the revenue and profit/(loss) earned by each segment which is the measure reported to the Board for the purpose of resource allocation and assessment of segment performance.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 43 2 SEGMENT INFORMATION (Continued) (b) Segmental statement of financial position as at 30 June 2026 PRC Inter- domestic Overseas segment property property elimination Life and casualty and casualty Other and insurance insurance insurance Reinsurance businesses adjustment Total 4,219,614 1,848,690 124,075 611,856 2,143 - 6,806,378 4,649,289 898,297 468,246 32,466 29,325,188 4,908,667 40,282,153 4,092,464 485,269 3,090,318 172,750 22,152,200 (6,323,627) 23,669,374 1,323,386 402,724 28,990 65,139 3,125,966 (434,975) 4,511,230 - - - - 52,180 303,647 355,827 - - 7,607 - 2,331 261,408 271,346 10,461,420 2,642,865 - - 1,699,101 (3,824,655) 10,978,731 478,247,219 6,793,927 948,754 5,152,464 6,957,391 10,815,350 508,915,105 55,068,698 2,712,481 3,821,172 9,626,185 2,118,667 6,016,370 79,363,573 1,105,326,090 14,112,659 4,269,571 16,545,280 4,643,612 - 1,144,897,212 89,760,207 4,280,041 286,289 955,745 2,667,318 8,201,356 106,150,956 30,953 74,656 16,020 105,006 - (32,486) 194,149 4,241,859 2,906,821 5,468,477 2,144,387 - (1,123,834) 13,637,710 - - - - 40,546,298 - 40,546,298 93,330,027 11,578,655 2,470,388 7,486,111 11,975,329 5,830,704 132,671,214 39,425,229 2,580,816 1,113,824 2,201,483 8,546,070 130,965 53,998,387 Segment assets 1,890,176,455 51,317,901 22,113,731 45,098,872 133,813,794 24,728,890 2,167,249,643 1,662,251,210 28,233,373 11,297,091 27,233,589 - (1,353,210) 1,727,662,053 53,868 198,332 106,700 5,209 - (71,303) 292,806 32,793,852 - 122,248 1,041,455 - - 33,957,555 4,035,839 3,506,367 - 1,515,299 7,000,524 - 16,058,029 - - - - 61,564,464 - 61,564,464 1,167,351 338,098 27,876 70,274 105,081 (454,587) At 30 June 2026 1,254,093 77,027,263 1,652,200 721,529 1,233,763 243,544 10,767,179 91,645,478 24,425,479 5,399,087 1,180,977 516,801 18,524,323 9,702,239 59,748,906 Segment liabilities 1,801,754,862 39,327,457 13,456,421 31,616,390 87,437,936 18,590,318 1,992,183,384 Non-controlling interests (55,441,506) Net assets attributable to owners of the Company 119,624,753 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Statutory deposits Fixed assets - Property and equipment - Investment properties - Right-of-use assets Goodwill Intangible assets Interests in associates and joint ventures Financial investments - At fair value through profit or loss - At amortised cost - Debt investments at fair value through other comprehensive income - Equity investments at fair value through other comprehensive income Insurance contract assets Reinsurance contract assets Finance lease receivables Cash and bank deposits Other segment assets Insurance contract liabilities Reinsurance contract liabilities Investment contract liabilities Interest-bearing notes Bank borrowings Lease liabilities Securities sold under repurchase agreements Other segment liabilities Segment assets and segment liabilities represent the assets/liabilities recor ded by each segment which is the measure reported to the Board for the purpose of resource allocation and assessment of segment performance.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 44 2 SEGMENT INFORMATION (Continued) (c) Segmental statement of profit or loss for the six months ended 30 June 2025 Six months ended 30 June 2025 PRC Inter- domestic Overseas segment property property elimination Life and casualty and casualty Other and insurance insurance insurance Reinsurance businesses adjustment Total Insurance revenue 32,249,982 17,127,696 2,770,764 4,161,544 - (346,427) 55,963,559 Insurance service expenses (20,973,942) (15,996,106) (1,589,127) (3,653,016) - 203,568 (42,008,623) Net expenses from reinsurance contracts held (341,291) (353,863) (823,769) (226,928) - 107,251 (1,638,600) Insurance service results 10,934,749 777,727 357,868 281,600 - (35,608) 12,316,336 Interest revenue 17,905,435 415,650 212,577 741,942 160,917 459,429 19,895,950 Other investment return 892,154 102,847 90,745 210,241 (419,433) (174,661) 701,893 Net impairment gains/(losses) on financial assets 60,838 4,247 (821) 8,748 6,524 1,108 80,644 Share of results of associates and joint ventures 951,667 (56,704) - - 20,346 155,263 1,070,572 Investment return 19,810,094 466,040 302,501 960,931 (231,646) 441,139 21,749,059 Finance expense from insurance contracts issued (21,646,210) (231,693) (190,839) (363,754) - 21,165 (22,411,331) Finance income from reinsurance contracts held 43,423 35,800 90,310 20,796 - (22,364) 167,965 Net changes in investment contract liabilities (22,866) - - (17,478) - - (40,344) Net investment results (1,815,559) 270,147 201,972 600,495 (231,646) 439,940 (534,651) Other income 1,289,802 (8,657) (27,446) 89,259 4,260,529 (2,071,451) 3,532,036 Other operating expenses (1,435,954) (117,427) (214,591) (54,728) (3,567,003) 1,642,947 (3,746,756) Other finance costs (113,116) (47,647) (14,298) (29,464) (1,196,459) 96,226 (1,304,758) Profit before taxation 8,859,922 874,143 303,505 887,162 (734,579) 72,054 10,262,207 Income tax charges (581,563) (187,721) (45,402) (15,361) (215,930) (24,542) (1,070,519) Profit after taxation 8,278,359 686,422 258,103 871,801 (950,509) 47,512 9,191,688 Non-controlling interests (2,427,282) Profit attributable to owners of the Company 6,764,406 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Segment revenue (including insurance revenue and investment re turn) and segment profit/(loss) represent the revenue and profit/(loss) earned by each segment which is the measure reported to the Board for the purpose of resource allocation and assessment of segment performance.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 45 2 SEGMENT INFORMATION (Continued) (d) Segmental statement of financial position as at 31 December 2025 PRC domestic Overseas Intersegment property property elimination Life and casualty and casualty Other and insurance insurance insurance Reinsurance businesses adjustment Total Statutory deposits 4,029,246 1,784,069 119,923 592,196 2,144 - 6,527,578 Fixed assets - Property and equipment 4,736,779 974,686 496,317 39,391 29,405,713 4,749,527 40,402,413 - Investment properties 4,030,349 482,417 3,087,688 173,560 22,035,334 (6,146,712) 23,662,636 - Right-of-use assets 1,318,161 410,800 28,065 80,001 3,062,429 (473,140) 4,426,316 Goodwill - - - - 50,177 303,647 353,824 Intangible assets - - - - 2,724 261,408 264,132 Interests in associates and joint ventures 32,555,025 2,601,195 - - 1,702,368 (24,378,472) 12,480,116 Financial investments - At fair value through profit or loss 431,210,921 6,906,192 769,970 5,827,260 6,119,131 25,721,974 476,555,448 - At amortised cost 65,719,715 3,546,888 3,650,249 11,742,327 2,114,603 6,217,451 92,991,233 - Debt investments at fair value through other comprehensive income 989,698,125 13,606,701 4,346,498 15,962,912 4,081,041 - 1,027,695,277 - Equity investments at fair value through other comprehensive income 62,837,249 4,147,626 260,769 602,216 2,666,700 7,318,045 77,832,605 Insurance contract assets 39,375 622,308 2,422 98,044 - (40,556) 721,593 Reinsurance contract assets 4,191,438 2,722,033 5,365,467 2,192,139 - (955,860) 13,515,217 Finance lease receivables - - - - 41,027,256 - 41,027,256 Cash and bank deposits 94,099,090 9,799,341 2,119,960 6,417,399 5,832,838 8,097,661 126,366,289 Other segment assets 28,921,131 2,156,911 1,091,559 2,309,300 7,815,033 (529,224) 41,764,710 Segment assets 1,723,386,604 49,761,167 21,338,887 46,036,745 125,917,491 20,145,749 1,986,586,643 Insurance contract liabilities 1,489,778,209 26,988,079 10,709,215 29,344,625 - (1,230,846) 1,555,589,282 Reinsurance contract liabilities 66,140 107,885 69,396 3,619 - (77,968) 169,072 Investment contract liabilities 24,363,357 - 135,653 1,092,733 - - 25,591,743 Interest-bearing notes 3,866,069 3,330,928 - 1,485,677 4,607,427 - 13,290,101 Bank borrowings - - - - 64,405,586 - 64,405,586 Lease liabilities 1,160,943 353,810 26,726 85,348 110,718 (494,596) 1,242,949 Securities sold under repurchase agreements 94,615,646 2,603,252 680,106 - 173,820 8,658,877 106,731,701 Other segment liabilities 26,194,980 4,986,780 1,146,659 700,438 15,339,328 6,405,077 At 31 December 2025 54,773,262 Segment liabilities 1,640,045,344 38,370,734 12,767,755 32,712,440 84,636,879 13,260,544 1,821,793,696 Non-controlling interests (53,650,800) Net assets attributable to owners of the Company 111,142,147 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Segment assets and segment liabilities represent the asset s/liabilities recor ded by each segment which is the measure reported to the Board for the purpose of resource allocation and assessment of segment performance.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 46 2 SEGMENT INFORMATION (Continued) Geographical distribution: Approximately 92% ( 30 June 2025: 89%) of the Group’ s total income is derived from its operations in the Mainland, PRC. The Group’s information about its non- current assets by geographical location of the assets are detailed below: At 30 June 2026 Hong Kong and Mainland, Rest of Macau PRC the world Total 11,844,938 56,461,277 783,715 69,089,930 $’000 $’000 $’000 $’000 Non-current assets (other than financial instruments, deferred tax assets, rights arising under insurance and interests in associates and joint ventures) At 31 December 2025 Hong Kong and Mainland, Rest of Macau PRC the world Total Non-current assets (other than financial instruments, deferred tax assets, rights arising under insurance and interests in associates and joint ventures) 11,949,208 56,403,946 756,167 69,109,321 $’000 $’000 $’000 $’000 Information about major customers: There were no customers for the six months ended 30 June 2026 and 30 June 2025 contributing over 10% of the total insurance revenue of the Group.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 47 3 INSURANCE REVENUE The principal activity of the Company is investment holding. The principal activities of the Company’s subsidiaries are the underwriting of direct life insurance business, property and casualty insurance business, and all classes of reinsurance business. An analysis of insurance revenue for the periods ended 30 June 2026 and 30 June 2025 is included in the following tables. Six months ended 30 June 2026 PRC Inter- domestic Overseas segment property property elimination Life and casualty and casualty and insurance insurance insurance Reinsurance adjustment Total 9,207,641 25,661 21,595 503,087 (32,067) 9,725,917 1,148,072 17,809 21,028 332,043 (14,311) 1,504,641 9,275,474 296,822 90,883 3,455,336 (182,682) 12,935,833 - 160 3,057 72,450 (15,382) 60,285 8,967,133 206,310 27,200 197,298 (6,373) 9,391,568 28,598,320 546,762 163,763 4,560,214 (250,815) 33,618,244 5,352,307 17,425,368 2,657,900 Contracts not measured under the PAA Amounts relating to the changes in the liability for remaining coverage - Amount of contractual service margin recognised in profit or loss - Risk adjustment for non-financial risk - Expected insurance service expenses incurred during the period - Experience adjustments for premium receipts other than those that relate to future service Insurance acquisition cash flows recovery Insurance revenue from contracts measured under the PAA Total insurance revenue Six months ended 30 June 2025 PRC Inter- domestic Overseas segment property property elimination Life and casualty and casualty and insurance insurance insurance Reinsurance adjustment Total Contracts not measured under the PAA Amounts relating to the changes in the liability for remaining coverage - Amount of contractual service margin recognised in profit or loss 8,636,389 28,588 33,856 495,787 (29,344) 9,165,276 - Risk adjustment for non-financial risk 936,924 24,313 23,239 260,730 9,095 1,254,301 - Expected insurance service expenses incurred during the period 8,323,646 405,217 100,984 3,004,314 (142,319) 11,691,842 - Experience adjustments for premium receipts other than those that relate to future service - 99 8,988 234,628 (26,740) 216,975 Insurance acquisition cash flows recovery 8,620,696 229,416 23,581 166,085 (6,285) 9,033,493 26,517,655 687,633 190,648 4,161,544 (195,593) - (127,452) 25,308,123 33,950,627 17,972,130 2,821,663 4,560,214 (378,267) 58,926,367 $’000 $’000 $’000 $’000 $’000 $’000 31,361,887 Insurance revenue from contracts measured under the PAA 5,732,327 16,440,063 2,580,116 - (150,834) 24,601,672 Total insurance revenue 32,249,982 17,127,696 2,770,764 4,161,544 (346,427) 55,963,559 $’000 $’000 $’000 $’000 $’000 $’000
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 48 4 TOTAL INVESTMENT RETURN AND INSURANCE FINANCE INCOME/EXPENSES An analysis of the Group’ s investment return and net insurance finance income/expenses recognised in profit or loss and other comprehensive income ( “OCI”) for the periods ended 30 June 2026 and 30 June 2025 are presented in the table below. 21,019,013 4,078,818 389,727 11,824,976 9,745,217 166,476 727,866 47,952,093 6,931,366 54,883,459 (22,382,885) (16,238,948) (12,878,452) (89,666) (51,589,951) (38,471,693) (13,118,258) (51,589,951) 202,508 (55,277) 19,935 167,166 19,895,950 3,909,318 392,148 (1,223,102) (2,376,471) 80,644 1,070,572 21,749,059 8,490,304 30,239,363 (5,228,413) (13,786,148) (17,563,934) 9,340 (36,569,155) (22,411,331) (14,157,824) (36,569,155) 166,146 73,016 2,762 241,924 Six months ended 30 June 2026 (a) Investment return Subtotal of investment return recognised in profit and loss Total investment return (b) Net finance income/(expenses) from insurance contracts Total net finance expenses from insurance contracts Represented by: Total (c) Net finance income from reinsurance contracts Total net finance income from reinsurance contracts Represented by: Total (d) Net changes in investment contract liabilities 2025 Interest revenue Dividend income Net rental income receivable from investment properties Net realised investment gains/(losses) Net unrealised investment gains/(losses) Net impairment gains/(losses) on financial assets Share of results of associates and joint ventures Amounts of investment return recognised in OCI Change of fair value of contracts with direct participation features Interest accrued on insurance contracts Changes to interest rate and other financial assumptions Net exchange gains/(losses) Amounts recognised in profit or loss Amounts recognised in other comprehensive income Interest accrued on reinsurance contracts held Changes to interest rate and other financial assumptions Net exchange gains Amounts recognised in profit or loss Amounts recognised in other comprehensive income Amounts recognised in profit or loss $’000 $’000 224,710 (57,544) 167,166 (11,033) 167,965 73,959 241,924 (40,344)
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 49 5 I NTEREST REVENUE Six months ended 30 June 2026 Financial assets not measured at fair value through profit or loss: 1,620,558 14,871,458 73,881 (597,796) 1,429,726 17,397,827 Financial assets measured at fair value through profit or loss: 3,621,186 21,019,013 2025 Debt investments at amortised cost 2,161,941 Debt investments at fair value through other comprehensive income 12,381,042 Interest revenue on securities purchased under resale agreements 54,486 Interest expenses on securities sold under repurchase agreements (477,412) Bank deposits and others 1,365,210 15,485,267 Debt investments at fair value through profit or loss 4,410,683 19,895,950 $’000 $’000
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 50 6 OTHER INVESTMENT RETURN 2025 Dividend income - Equity securities at fair value through profit or loss 1,253,744 - Investment funds 600,368 - Equity securities at fair value through other comprehensive income 2,055,206 3,909,318 Net rental income receivable from investment properties 392,148 Net realised investment gains/(losses) - Debt investments at fair value through profit or loss Listed 44,315 Unlisted 1,172,541 - Equity securities at fair value through profit or loss Listed (3,838,747) Unlisted (6,453) - Investment funds Listed (40,209) Unlisted (302,541) - Debt investments at amortised Six months ended 30 June 2026 1,256,901 486,454 2,335,463 4,078,818 389,727 (2,292) 11,268 9,811,075 6,720 143,538 1,230,019 (238,053) 24,200 46,658 333,939 471,908 (14,004) 11,824,976 42,551 1,215,625 3,309,109 cost Listed (109,624) Unlisted 86,755 - Debt investments at fair value through other comprehensive income Listed 28,005 Unlisted 773,041 - Gain on disposal of interest in associates 961,293 - Precious metals and other net realised gains/(losses) 8,522 (1,223,102) Net unrealised investment gains/(losses) - Debt investments at fair value through profit or loss Listed 330,976 Unlisted (2,453,061) - Equity securities at fair value through profit or loss Listed 828,009 Unlisted 36,321 - Investment funds (184,423) 905,061 5,819,718 (9,805) (717,542) (635,077) 9,745,217 26,038,738 Listed 216,388 Unlisted 284,926 - Precious metals at fair value through profit or loss - - Deficit on revaluation of investment properties (722,323) - Recognition of impairment losses on interest in associates and joint ventures (897,707) (2,376,471) 701,893 $’000 $’000
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 51 7 NET IMPAIRMENT GAINS/(LOSSES) ON FINANCIAL ASSETS Six months ended 30 June 2026 90,054 76,422 166,476 2025 Impairment gains/(losses) recognised: - Financial investments at amortised cost 87,372 - Debt investment at fair value through other comprehensive income (6,728) 80,644 $’000 $’000 8 OTHER INCOME 2025 Income from operating lease 803,997 Net exchange gains 1,080,194 Interests from finance lease receivables 835,861 Income from provision of pension administration services 323,845 Income from provision of agency and insurance intermediary services 331,259 Income from provision of asset management and securities broking services 223,937 Reversal of impairment losses on finance lease receivables 81,922 Government subsidies 81,138 Income from provision of property management services 69,239 Income from provision of advisory services Six months ended 30 June 2026 981,443 704,663 625,349 374,812 266,499 203,658 91,429 75,977 72,248 8,378 (44,988) (41,327) (1,258) 417,605 3,734,488 25,583 Recognition of impairment losses on operating lease assets - Recognition of impairment losses on other assets (699,708) Net gains/(losses) on disposal of property and equipment 264 Others 374,505 3,532,036 $’000 $’000
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 52 9 EXPENSES Six months ended 30 June 2026 22,341,196 12,258,302 7,717,675 1,810,046 828,855 865,228 2,893,692 48,714,994 15,536,733 49,319,901 Represented by: 44,657,210 4,662,691 49,319,901 2025 20,813,365 11,654,420 7,525,517 1,710,756 483,290 822,082 2,071,555 45,080,985 (14,283,422) 14,957,816 45,755,379 42,008,623 3,746,756 45,755,379 $’000 $’000 Claims and benefits Fees and commissions Staff costs Depreciation and amortisation Taxes and surcharges Assets management and other service expenses Other expenses Amounts attributed to insurance acquisition cash flows incurred during the period Amortisation of insurance acquisition cash flows Insurance service expenses Other operating expenses (14,931,826)
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 53 10 PROFIT BEFORE TAXATION Profit before taxation is arrived at after charging: 2025 Interests on bank borrowings 1,068,886 Interests on interest-bearing notes 210,255 Interests on lease liabilities 25,617 1,304,758 Salaries, wages, bonuses and other benefits 6,545,705 Contributions to defined contribution retirement plans 979,812 7,525,517 Auditor’s remuneration - Audit and assurance services 14,598 - Non-audit services 2,663 Depreciation of property and equipment 1,289,479 Depreciation of right-of-use assets Six months ended 30 June 2026 (a) Other finance costs: 866,536 217,255 21,799 1,105,590 (b) Staff costs (including directors’ remuneration): 6,741,517 976,158 7,717,675 (c) Other items: 11,082 959 1,401,723 407,829 494 420,806 Amortisation of intangible assets 471 $’000 $’000
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 54 11 INCOME TAX CHARGES Taxation in the condensed consolidated statement of profit or loss represents: Six months ended 30 June 2026 Current tax 1,153,363 10,172 1,163,535 Deferred tax 1,720,917 2,884,452 2025 Provision for the period 701,642 Under/(over)-provision in respect of prior years 41,087 742,729 Origination/(reversal) of temporary differences 327,790 Income tax charges/(credits) 1,070,519 $’000 $’000 The provision for Hong Kong Profits Tax represents the Group's estimated Hong Kong Profits Tax liability calculated at the standard tax rate of 16.5% ( 2025: 16.5%) on its assessable profits from direct life insurance, property and casualty insurance, asset management , property investment, insurance intermediary, securities dealing and broking businesses. In addition, Hong Kong had a concessionary tax regime whereby a profits tax rate of 8.25% was available to certain qualifying insurance-related businesses which has been applied by the subsidiary of property and casual ty insurance business. For reinsurance business, the provision for Hong Kong Profits Tax represents the Group’s estimated Hong Kong Profits Tax liability calculated at the concessionary tax rate of 8.25% (2025: 8.25%), one-half of the standard tax rate in Hong Kong except for life business, the estimated assessable profit has been determined at 5% ( 2025: 5%) of the net written premiums for life insurance products. Taxation outside Hong Kong for subsidiaries outside Hong Kong is calculated at the rates prevailing in the relevant jurisdictions. U nder the Enterprise Income Tax Law of the PRC, the enterprise income tax rate for domestic companies in the PRC is 25% (2025: 25%). On 2 2 December 2025, the Ministry of Finance (MOF) and the State Taxation Administration (STA) issued the “Notice on Matters Concerning Enterprise Income Tax Treatment in Relation to the Transition to the Insurance Contracts Standard” (MOF and STA Announcement No.15 [2025]), clarified the enterprise income tax treatment in the c ourse of enterprises’ implementation of Accounting Standard for the Business Enterprises No.25 - Insurance Contracts (Cai Kuai [2020] No.20) issued by the MOF . This notice is applicable to the insurance enterprises incorporated in Mainland China of the Group. The Group is subject to the global minimum top- up tax under the Pillar Two model rules published by the Organisation for Economic Co- operation and Development. The Government of Hong Kong SAR gazetted the Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Ordinance 2025 (“the 2025 Amendment Ordinance”) to implement the Income Inclusion Rule (IIR) and Hong Kong Minimum Top- up Tax (HKMTT), which take effect for fiscal years beginning on or after 1 January 2025. Other than Hong K ong, certain jurisdictions in which subsidiaries of the Group operate have also enacted the local Pillar Two legislation that is effective for the Period. Current tax expense related to Pillar Two income taxes was recognised for the Period accordingly.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 55 11 INCOME TAX CHARGES (Continued) The Group has applied the temporary mandatory exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes and accounted for the tax as current tax when incurred. At 30 June 2026, the Group did not recognise deferred tax assets in respect of certain tax losses of $30,308,613,000 ( 31 December 2025: $ 28,979,584,000) and certain temporary differences of $938,019,000 ( 31 December 2025: $798,905,000). $20,083,912,000 ( 31 December 2025: $19,002,780,000) of the total tax losses can be carried forward up to five years after the year in which the loss was originated to offset future taxable profits, while the remaining tax losses and temporary differences do not expire under current tax legislation. 12 DIVIDENDS (a) On 25 March 2026, the Board of the Company proposed a final dividend of $1.23 per share in respect of the year ended 31 December 2025 ($0.35 per share in respect of the year ended 31 December 2024). The final dividend amounting to $4,420,643,000 (2025: $1,257,906,000) has been recognised as a liability in these interim financial statements. (b) No interim dividend in respect of the interim period was proposed, approved or paid during the interim period ended 30 June 2026 (30 June 2025: Nil). 13 EARNINGS PER SHARE The calculation of basic earnings per share is based on the profit attributable to owners of the Company and the number of ordinary shares in issue during the Period. Six months ended 30 June 2026 12,872,659 (500,460) 12,372,199 3,594,018,538 3.442 2025 Profit attributable to owners of the Company 6,764,406 Distribution relating to perpetual subordinated capital securities (498,179) Profit used to determine basic earnings per share 6,266,227 Weighted average number of ordinary shares 3,594,018,538 Basic earnings per share 1.744 $’000 $’000 (HK$ per share) No diluted earnings per share has been presented for the six month s ended 30 June 2026 and 30 June 2025 as the Group had no potential dilutive ordinary shares in issue during the periods.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 56 14 STATUTORY DEPOSITS (a) Certain subsidiaries of the Group have placed $5,539,617,000 (31 December 2025: $5,324,828,000) with banks as capital guarantee funds, pursuant to the relevant insurance rules and regulations. The funds can only be used with the prior approval of the relevant authorities in the event that the subsidiaries cannot meet the statutory solvency requirements or go into liquidation. (b) A subsidiary of the Group has pledged a deposit of $259,721,000 (31 December 2025: $257,757,000) registered in favour of the Monetary Authority of Singapore pursuant to section 34D of the Singapore Insurance Act. (c) A subsidiary of the Group has pledged a deposit of $2,844,000 (31 December 2025: $3,023,000) with banks as guarantee fund, pursuant to Regulation of the Minister of Finance of the Republic of Indonesia. (d) A subsidiary of the Group has deposited a sum of $1,815,000 (31 December 2025: $1,815,000) in the name of Director of Accounting Service with a bank pursuant to section 77(2e) of the Hong Kong Trustee Ordinance. (e) A subsidiary of the Group has deposited a sum of $329,000 (31 December 2025: $329,000) with The Stock Exchange of Hong Kong Limited, Hong Kong Securities Clearing Company Limited and the Securities and Futures Commission. (f) Certain subsidiaries of the Group have deposited a sum of $1,002,052,000 (31 December 2025: $939,826,000) registered in favour of Autoridade Monetária de Macau (“AMCM”) to guarantee the technical reserves in accordance with the Macau Insurance Ordinance.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 57 15 FIXED ASSETS The carrying amount of land and buildings of $ 125,162,000 (30 June 2025: $ 257,667,000) has been transferred to investment properties at fair value of $128,714,000 during the Period (30 June 2025: $ 314,273,000) based on revaluation by an independent external property va luer. The valuation was made based on income approach. The fair values of investment properties of the Group as at 30 June 2026 were measured by an external valuer. The valuation for completed investment properties was made based on income approach. A rev aluation deficit of $ 717,542,000 (30 June 2025: $ 722,323,000) has been recognised in the condensed consolidated statement of profit or loss during the Period. As at 30 June 2026, land and buildings of $5,875,667,000 (31 December 2025: $5,997,584,000) and investment properties of $2,383,641,000 (31 December 2025: $ 2,333,921,000) located in Macau or Hong Kong ha ve been pledged in favour of AMCM to guarantee the technical reserves in accordance with the Macau Insurance Ordinance or to secure bank loans. As at 30 June 2026, operating lease assets of $1,632,320,000 (31 December 2025: $2,865,386,000) have been pledged to financial institutions as collateral in connection with banking facilities arrangements. A subsidiary of the Group performed the impairment ass essment on the carrying amount of operating lease assets during the Period. Based on the results of the assessment, a subsidiary of the Group recognised impairment loss of $44,988,000 related to certain operating lease assets.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 58 16 FINANCIAL INVESTMENTS At 30 June At 31 December 2026 2025 At fair value through profit or loss Debt investments - Listed - Unlisted Equity securities - Listed - Unlisted Investment funds - Listed - Unlisted Precious metals At amortised cost - Listed - Unlisted Debt investments at fair value through other comprehensive income - Listed - Unlisted Equity investments at fair value through other comprehensive income - Listed - Unlisted $’000 $’000 28,974,878 218,659,524 134,000,865 12,763,633 11,365,396 103,054,158 96,651 508,915,105 53,312,288 26,051,285 79,363,573 207,126,285 937,770,927 1,144,897,212 102,443,118 3,707,838 106,150,956 28,535,659 223,882,037 138,232,499 8,799,672 10,064,713 67,008,487 32,381 476,555,448 62,178,508 30,812,725 92,991,233 214,100,700 813,594,577 1,027,695,277 74,180,526 3,652,079 77,832,605
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 59 16 FINANCIAL INVESTMENTS (Continued) Notes: (i) As at 30 June 2026, debt and equity investments with total carrying amounts of $16,869,941,000 (31 December 2025: $16,286,779,000) have been pledged in favour of AMCM to guarantee the technical reserves in accordance with the Macau Insurance Ordinance. As at 30 June 2026, debt and equity investments with total carrying amounts of $7,500,000 (31 December 2025: $9,397,000) have been set asides as guarantee fund, pursuant to Regulation of the Minister of Finance of the Republic of Indonesia. (ii) For the equity investments which are not held for trading but for long -term investments, the Group has irrevocably elected to recognise them as equity investments at fair value through other comprehensive income at initial recognition. During the Period, for the consideration of optimising asset allocation and asset -liability management, the Group disposed of equity investments at fair value through other comprehensive income amounted to $2,082,205,000 (30 June 2025: $ 2,982,926,000), and the net cumulative profit of $356,234,000 (30 June 2025: loss of $89,041,000) on disposal was transferred from the fair value reserve recognised in other comprehensive income to retained profits. The dividend income of equity investments at fair value through other comprehensive income recognised during the Period are disclosed in Note 6.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 60 17 SECURITIES PURCHASED UNDER RESALE AGREEMENTS/SECURITIES SOLD UNDER REPURCHASE AGREEMENTS The Group entered into transactions in which it transferred financial assets directly to third parties. As the Group has retained substantially all of the risks and rewards of ownership relating to these securities, it continues to recognise the full carrying amount and has recognised the cash received on the transfer as securities sold under repurchase agreements . The following were the Group 's securities that were transferred to the third parties with terms to repurchase these securities at the agreed dates and prices. These securities are either measured at amortised cost or carried at fair value respectively in the Group’s condensed consolidated statement of financial position. At 30 June 2026 Amortised cost FVPL FVOCI Total 4,856,434 11,449,373 201,987,536 218,293,343 (2,289,371) (10,954,500) (78,401,607) (91,645,478) 2,567,063 494,873 123,585,929 126,647,865 $’000 $’000 $’000 $’000 Carrying amount of transferred/pledged assets Carrying amount of associated liabilities - securities sold under repurchase agreements Net position At 31 December 2025 Amortised cost FVPL FVOCI Total Carrying amount of transferred/pledged assets 4,458,447 9,416,335 179,803,162 193,677,944 Carrying amount of associated liabilities - securities sold under repurchase agreements (2,892,618) (8,732,154) (95,106,929) (106,731,701) Net position 1,565,829 684,181 84,696,233 86,946,243 $’000 $’000 $’000 $’000 Conversely, the Group also enters into short -term investment arrangements secured by the securities purchased. The securities purchased are not recognised i n the condensed consolidated statement of financial position. All of the securities purchased under resale agreemen ts and securities sold under repurchase agreements are denominated in RMB and will be settled within one year from the end of the reporting period. The carrying amount of the securities purchased under resale agreements and securities sold under repurchase agreements approximate to their fair values. As at 30 June 2026, m ost of the securities purchased under resale agreements and the securities sold under repurchase agreements will mature within 38 days (31 December 2025: 29 days). The interest rates applicable to the securities purchased under resale agreements and the securities sold under repurchase agreements are approximately from 1.31% to 1.82% (31 December 2025: 1.62% to 2.25%) and 1.34% to 2.96% (31 December 2025: 1.08% to 2.45%) per annum, respectively.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 61 18 FINANCE LEASE RECEIVABLES At 30 June At 31 December 2026 2025 Finance lease receivables Less: unearned finance income $’000 $’000 45,629,946 (2,957,371) 42,672,575 (2,126,277) 40,546,298 46,345,117 (3,182,924) 43,162,193 Less: ECL allowance (2,134,937) 41,027,256 As at 30 June 2026, finance lease receivables include d the amounts of $225,506,000 (31 December 2025 : $ 1,125,974,500) that were pledged to financial institutions as collateral in connection with banking facilities arrangements. The following table sets out a maturity analysis of finance lease receivables, showing the undiscounted lease payments to be received after the reporting date. At 30 June At 31 December 2026 2025 Less than 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years More than 5 years Total undiscounted finance lease receivables $’000 $’000 14,065,326 11,033,991 7,480,515 4,396,980 2,752,590 5,900,544 45,629,946 14,192,351 11,342,608 7,883,423 4,834,664 2,986,031 5,106,040 46,345,117
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 62 19 OTHER ASSETS At 31 December 2025 Securities settlement fund 2,643,357 Value-added tax prepaid 1,806,762 Receivables from payment service providers 539,419 Guarantee deposits paid 8,802,595 Prepayments 1,264,504 Pension management fees receivable 856,895 Rental and utility deposits 159,556 Receivables from operating lease 110,116 Inventories 1,684,056 Deposits for the purchase of property 26,210 Tax recoverables 32,790 Dividends receivable 497,336 Assets At 30 June 2026 4,560,510 1,775,904 986,156 5,036,286 1,999,366 691,846 153,821 120,126 1,751,553 38,512 43,545 487,240 100,003 3,327,834 21,072,702 (2,524,711) 18,547,991 classified as held-for-sale 109,073 Others 4,164,358 22,697,027 Less: ECL allowance (2,431,355) 20,265,672 $’000 $’000 (note (iii)) (note (i)) (note (ii)) Notes: (i) As at 30 June 2026, receivables from operating lease of $13,148,000 (31 December 2025: Nil) have been pledged to financial institutions as collateral in connection with banking facilities arrangements. (ii) The Group’s inventories comprise raw materials, product in progress, other supplemental materials and lands purchased that have been set to be used to build properties for sale by a subsidiary. (iii) The Group had lost control over Hong Kong Financial Transactions and Services Limited (“HKFTS”), previously a subsidiary, as a result of share allotment during 2025. After the share allotment, the Group retained 40% equity interest in HKFTS and classified as an associate. As at 30 June 2026, the disposal of its entire equity interest in HKFTS with an independent third party is still under negotiation and considered the sale highly probable. The transaction is expected to be completed within 2026. Therefore, HKFTS has been classified as held-for-sale asset.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 63 20 CASH AND CASH EQUIVALENTS At 30 June 2026 18,527,136 36,343,911 54,871,047 At 31 December 2025 Deposits with banks and other financial institutions with original maturity less than three months 9,746,791 Cash at bank and on hand 44,613,450 54,360,241 $’000 $’000 21 INSURANCE CONTRACT LIABILITIES (a) Analysis by remaining coverage and incurred claims of insurance contracts: At 30 June 2026 Insurance contract liabilities 1,660,596,640 11,709,148 55,356,265 1,727,662,053 At 31 December 2025 Liabilities for remaining coverage - Excluding loss component 1,492,998,841 - Loss component 11,151,314 Liabilities for incurred claims 51,439,127 1,555,589,282 $’000 $’000 (b) Analysis by measurement component of insurance contracts: At 30 June 2026 Insurance contract liabilities 1,415,563,619 38,100,801 231,596,995 1,685,261,415 42,400,638 1,727,662,053 At 31 December 2025 Insurance contracts not measured under PAA - Estimates of present value of future cash flows 1,263,154,589 - Risk adjustment for non-financial risk 35,532,770 - Contractual service margin 216,809,820 1,515,497,179 Insurance contracts measured under PAA 40,092,103 1,555,589,282 $’000 $’000
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 64 21 INSURANCE CONTRACT LIABILITIES (Continued) (c) Effect of contracts initially recognised in the Period The following tables summarise the effect on the measurement components arising from the initial recognition of insurance contracts not measured under the PAA during the Period. Insurance contracts Profitable Onerous contracts contracts issued issued Total Six months ended 30 June 2026 8,592,107 774,201 9,366,308 87,643,885 10,739,310 98,383,195 Total estimates of present value of cash outflows 96,235,992 11,513,511 107,749,503 (107,790,592) (11,440,870) (119,231,462) 1,681,623 446,931 2,128,554 9,872,977 - 9,872,977 Losses recognised on initial Estimates of the present value of future cash outflows - Insurance acquisition cash flows - Claims payable and other expenses Estimates of present value of cash inflows Risk adjustment for non-financial risk Contractual service margin Estimates of the present value of future cash outflows - Insurance acquisition cash flows 7,296,991 1,062,959 8,359,950 - Claims payable and other expenses 77,565,560 16,089,008 93,654,568 84,862,551 17,151,967 102,014,518 Estimates of present value of cash inflows (95,988,439) (17,046,814) (113,035,253) Risk adjustment for non-financial risk recognition - 519,572 519,572 Six months ended 30 June 2025 Total estimates of present value of cash outflows Losses recognised on initial recognition $’000 $’000 $’000 1,330,636 433,144 1,763,780 Contractual service margin 9,795,252 - 9,795,252 - 538,297 538,297 22 INTEREST-BEARING NOTES During the Period, TSFL issued 1.66 % notes at par for the principal amount of RMB2,000,000,000. The notes will mature during the second quarter of 2029. Interest on the notes is payable annually in arrears. During the Last Period , TSFL issued 1.80% notes at par for the principal amount of RMB2,000,000,000. The notes will mature during the second quarter of 2028. Interest on the notes is payable annually in arrears. The notes issued are free of any collateral and guarantee.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 65 23 BANK BORROWINGS At 30 June 2026 10,552,108 44,775,617 55,327,725 4,600,509 1,636,230 61,564,464 At 31 December 2025 Unsecured Bank loans 10,354,649 Bank loans for financial leasing 47,081,641 57,436,290 Secured Bank loan 4,600,526 Bank loans for financial leasing 2,368,770 64,405,586 $’000 $’000 (note (i)) (note (iii)) (note (ii)) (note (iv)) The bank borrowings are repayable as follows: At 30 June 2026 56,076,558 4,713,453 774,453 61,564,464 At 31 December 2025 Within 1 year 46,107,139 After 1 year but within 5 years 17,514,863 After 5 years 783,584 64,405,586 $’000 $’000 The amounts presented in the above table are based on scheduled repayment dates set out in the loan agreements.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 66 23 BANK BORROWINGS (Continued) Notes: (i) As at 30 June 2026, the bank loans are unsecured and carry interest at Hong Kong Interbank Offered Rate (“HIBOR”) plus 0.50% to HIBOR plus 1.00% (31 December 2025: HIBOR plus 0.50% to HIBOR plus 1.10%) per annum, with effective interest rates ranging from 3.10% to 3.54% (31 December 2025: 3.60% to 3.95%) per annum. (ii) As at 30 June 2026, the bank loans for financial leasing are unsecured and carry interest at interest rates ranging from 0.59% to 4.93% ( 31 December 2025: 1.65% to 4.94% ) per annum. (iii) As at 30 June 2026, the bank loan is secured by investment properties and the shares of certain subsidiaries and pledged and restricted bank deposits and carry interest at HIBOR plus 1.10% (31 December 2025: HIBOR plus 1.10%), with effective interest rates at 3.63% (31 December 2025: 4.10%) per annum. (iv) As at 30 June 2026, the bank loans for financ ial leasing are secured by operating lease assets, finance lease receivables and operating lease receivables and carry interest at interest rate s ranging from 2.23% to 4.38% ( 31 December 2025: 2.23% to 4.42% ) per annum. 24 SHARE CAPITAL At 30 June 2026 No. of shares Ordinary Shares, issued and fully paid: 3,594,018,538 40,771,408 3,594,018,538 40,771,408 At 31 December 2025 No. of shares At the beginning of the period/year 3,594,018,538 40,771,408 At the end of the period/year 3,594,018,538 40,771,408 $’000 $’000 All of the shares issued by the Company rank pari passu and do not carry pre-emptive rights.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 67 25 RESERVES Attributable to owners of the Company Perpetual Fair Insurance Ordinary subordinated Non- Capital Merger Exchange value finance Revaluation Retained shareholders capital controlling reserve reserve reserve reserve reserve reserve profits sub-total securities interests Total (4,995,485) (6,842,218) (5,297,014) 58,390,517 (104,457,505) 1,691,118 115,894,063 54,383,476 15,987,263 53,650,800 124,021,539 - - - - - - 12,872,659 12,872,659 - 4,779,040 17,651,699 - - - - - 3,711 - 3,711 - - 3,711 - - 4,334,158 - - - - 4,334,158 - 1,186,336 5,520,494 - - - (4,586,461) - - - (4,586,461) - (1,424,234) (6,010,695) - - - 8,199,465 - - - 8,199,465 - 2,742,899 10,942,364 - - - - (7,352,564) - - (7,352,564) - (2,431,130) (9,783,694) - - - - (49,665) - - (49,665) - (1,656) (51,321) - - - (17,331) - - - (17,331) - (7,722) (25,053) - - 4,334,158 3,595,673 (7,402,229) 3,711 12,872,659 13,403,972 - 4,843,533 18,247,505 - - - - - - (4,420,643) (4,420,643) - - (4,420,643) - - - - - - - - - (2,807,948) (2,807,948) - - - - - - (500,460) (500,460) 500,460 - - - - - - - - - - (500,723) (244,879) (745,602) - - - (356,234) - - 356,234 - - - - (4,995,485) (6,842,218) (962,856) 61,629,956 (111,859,734) 1,694,829 124,201,853 62,866,345 15,987,000 55,441,506 134,294,851 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Balance at 1 January 2026 Profit for the period Other comprehensive income for the period: Revaluation gain arising from reclassification of own-use properties to investment properties, net of deferred tax Exchange differences on translation of the financial statements of subsidiaries, associates and joint ventures Changes in the fair value of debt investments at FVOCI, net of deferred tax Share of other comprehensive income of associates and joint ventures, net of deferred tax Total comprehensive income Dividend declared to shareholders Dividend declared by subsidiaries to non-controlling interests Distributions to holders of perpetual subordinated capital securities Declared to holders of perpetual (subordinated) capital securities Disposal of equity investments at FVOCI Balance at 30 June 2026 Changes in the fair value of equity investments at FVOCI, net of deferred tax Finance expenses from insurance contracts issued, net of deferred tax Finance expenses from reinsurance contracts held, net of deferred tax
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 68 25 RESERVES (Continued) Attributable to owners of the Company Perpetual Fair Insurance Ordinary subordinated Non- Capital Merger Exchange value finance Revaluation Retained shareholders capital controlling reserve reserve reserve reserve reserve reserve profits sub-total securities interests Total (5,618,303) (6,842,218) (7,854,208) 80,084,469 (121,936,408) 1,639,954 90,835,714 30,309,000 15,990,486 35,336,556 81,636,042 - - - - - - 6,764,406 6,764,406 - 2,427,282 9,191,688 - - - - - 48,107 - 48,107 - 490 48,597 - - 1,474,194 - - - - 1,474,194 - 367,991 1,842,185 - - - 1,454,007 - - - 1,454,007 - 397,175 1,851,182 - - - 3,532,468 - - - 3,532,468 - 1,071,428 4,603,896 - - - - (8,371,206) - - (8,371,206) - (2,438,950) (10,810,156) - - - - 62,709 - - 62,709 - 10,803 73,512 - - - (32,955) - - - (32,955) - (9,831) (42,786) - - 1,474,194 4,953,520 (8,308,497) 48,107 6,764,406 4,931,730 - 1,826,388 6,758,118 - - - - - - (1,257,906) (1,257,906) - - (1,257,906) - - - - - - - - - (1,194,654) (1,194,654) - - - - - - - - - 9,752,609 9,752,609 - - - - - - (498,179) (498,179) 498,179 - - - - - - - - - - (498,470) - (498,470) - - - - - - - - - 478,064 478,064 (18,388) - - - - - - (18,388) - 7,476 (10,912) - - - 89,041 - - (89,041) - Balance at 1 January 2025 Profit for the period Other comprehensive income for the period: Revaluation gain arising from reclassification of own-use properties to investment properties, net of deferred tax Exchange differences on translation of the financial statements of subsidiaries, associates and joint ventures Changes in the fair value of debt investments at FVOCI, net of deferred tax Share of other comprehensive income of associates and joint ventures, net of deferred tax Total comprehensive income Dividend declared to shareholders Dividend declared by subsidiaries to non-controlling interests Issurance of perpetual capital securities Distributions to holders of perpetual subordinated capital securities Declared to holders of perpetual subordinated capital securities Deemed acquisition of a subsidiary Acquisition of partial interests in a subsidiary Disposal of equity investments at FVOCI Balance at - - - (5,636,691) (6,842,218) (6,380,014) 85,127,030 (130,244,905) 1,688,061 95,754,994 33,466,257 15,990,195 46,206,439 95,662,891 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 30 June 2025 Changes in the fair value of equity investments at FVOCI, net of deferred tax Finance expenses from insurance contracts issued, net of deferred tax Finance income from reinsurance contracts held, net of deferred tax
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 69 26 PERPETUAL (SUBORDINATED) CAPITAL SECURITIES (a) The Company entered into an agreement on 9 March 2023 to issue perpetual subordinated capital securities in an aggregate principal amount of USD2,000,000,000 (approximately $15.700 billion), callable in 2028. According to the terms and conditions of the securities, the securities confer a right on the holders to receive distributions from the issue date. The rate of distribution shall be (i) 6.40% per annum in respect of the period from and including the issue date to but excluding 9 March 2028, (ii) applicable 5 year United States Treasury securities rate plus 2.072% per annum in respect of the period from and including 9 March 2028. The Compan y may redeem in whole, but not in part, the securities at their principal amount together with any distributions accrued on or after 9 March 2028. T he Company may elect to defer any distributions, and is not subject to any restriction as to the number of t imes distribution can be deferred, if any distribution ha s been deferred, the Company shall be subject to certain restrictions from making dividends or distributions. The perpetual subordinated capital securities were recorded as equity amounting to $15,674,799,000 net of issuance costs in the year ended 31 December 2023. The balance of the perpetual subordinated capital securities as at 30 June 2026 have included the accrued distribution payments. The distribution relating to perpetual subordinated capital securities amounted to $500,460,000 (30 June 2025: $498,179,000) and paid to holders of perpetual subordinated capital securities amounted to $500,723,000 (30 June 2025: $498,470,000) during the Period. (b) Approved by NFRA and the People’s Bank of China, TPL issued c apital bonds without fixed terms on 19 December 2023 and 19 March 2025. The capital bond issued on 19 December 2023 has an aggregate nominal value of RMB11,000,000,000 (approximately $12.100 billion) with a coupon rate of 3.3%. The capital bond issued on 19 March 2025 has an aggregate nominal value of RMB 9,000,000,000 (approximately $9.753 billion) with a coupon rate of 2.4%. Other major terms of the perpetual bonds are: (i) The interest rate will be reset every five years, and the annualis ed fixed interest rate after each reset will be the prime rate on the prime rate adjustment date plus a fixed spread determined at the time of issuance , (ii) On each interest payment date of such perpetual bonds, TPL may, at its sole option, defer payment of all or part of the current interest and all interest already deferred in accordance with the terms of the contract to the next interest payment date without any limitation on the number of times interest may be deferred or constituting an event of defau lt, and no interest will accrue on the deferred interest , (iii) In the event of deferred interest payments, TPL will not distribute earnings to common shareholders until the current interest and deferred interest have been paid in full , and (iv) The order of settlement is subordinate to the TPL ’s policy obligations, other common liabilities and subordinated capital instruments, and prior to the TPL’s core tier 1 capital instruments. The perpetual capital securities issued on 19 December 2023 and 19 March 2025 were recorded as non-controlling interests amounting to $12,090,038,000 and $9,752,609,000 net of issuance costs in the year ended 31 December 2023 and 31 December 2025, respectively. The distribution relating to the perpetual capital securi ties amounted to $326,763,000 (30 June 2025: $260,821,000) and paid to holders of perpetual capital securities amounted to $244,879,000 (30 June 2025: Nil) during the Period.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 70 27 FAIR VALUES OF FINANCIAL INSTRUMENTS (a) Fair value of Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis The fair value of financial assets and liabilities are determined as follows: - The fair value of financial assets and financial liabilities classified as Level 1 with standard terms and conditions and traded on active liquid markets are determined with reference to recent transaction price or quoted prices (unadjusted) respectively; - The fair value of derivative instruments are estimated using discounted cash flow analysis and the applicable yield curve for the duration of the non- applicable derivative; - The fair value of unlisted investment funds and unlisted debt securities included in financial assets at fair value through profit or loss and at FVOCI classified as Level 2 are established by reference to the prices quoted by respective fund administrators or by using valuation techniques including discounted cash flow method. The main parameters used include bond prices, interest rates, foreign exchange rates, prepayment rates, counter party credit spreads and others; and - The Level 3 financial assets, primarily comprises unlisted equity securities. Fair values are generally determined using valuation techniques, including discounted cash flows translation and markets comparison methods . Unobservable inputs include discount rates, comparable company valuation multiples, liquidity spreads , recent transaction prices of similar instruments . The valuation requires management to make certain assumptions about unobservable inputs to the models.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 71 27 FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued) (a) Fair value of Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis (Continued) The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. At 30 June 2026 Level 1 Level 2 Level 3 Total Financial assets 240,070,278 230,902,072 37,942,755 508,915,105 37,553,987 1,107,343,225 - 1,144,897,212 96,358,073 2,968,087 6,824,796 106,150,956 373,982,338 1,341,213,384 44,767,551 1,759,963,273 Financial liabilities 7,759,997 21,615,337 901,402 30,276,736 $’000 $’000 $’000 $’000 - Financial investments at FVPL - Debt investment at FVOCI - Equity investment at FVOCI - Investment contract liabilities measured at fair value At 31 Decem ber 2025 Level 1 Level 2 Level 3 Total Financial assets Financial liabilities $’000 $’000 $’000 $’000 - Financial investments at FVPL 249,522,910 190,027,665 37,004,873 476,555,448 - Debt investments at FVOCI 34,456,181 993,239,096 - 1,027,695,277 - Equity investments at FVOCI 58,736,723 16,403,215 2,692,667 77,832,605 342,715,814 1,199,669,976 39,697,540 1,582,083,330 - Investment contract liabilities measured at fair value 8,180,957 13,343,089 415,429 21,939,475
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 72 27 FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued) (a) Fair value of Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis (Continued) Reconciliation of Level 3 fair value measurements of financial assets: Financial Debt Equity investments investments investments at FVPL at FVOCI at FVOCI Total 37,004,873 - 2,692,667 39,697,540 2,170,308 - 4,777,618 6,947,926 (461,006) - - (461,006) - - (651,588) (651,588) (1,549,191) - - (1,549,191) 19,773 - - 19,773 (707,970) - - (707,970) 1,465,968 - 6,099 At 1 January 2026 Purchases Gain or losses recognised in: - profit or loss - other comprehensive income Disposals Transfer into Level 3 Transfer out of Level 3 Exchange difference At 30 June 2026 Financial Debt Equity investments investments investments at FVPL at FVOCI at FVOCI Total At 1 January 2025 48,420,405 1,705,863 2,811,981 52,938,249 Purchases 5,747,302 - 2,020 5,749,322 Gain or losses recognised in: - profit or loss (359,579) - - (359,579) - other comprehensive income - (6,231) (124,389) (130,620) Disposals (15,976,314) (1,742,731) - (17,719,045) Transfer into Level 3 203,132 - - 203,132 Transfer out of Level 3 (2,258,698) - - 1,472,067 37,942,755 - 6,824,796 44,767,551 $’000 $’000 $’000 $’000 (2,258,698) Exchange difference 1,228,625 43,099 3,055 1,274,779 At 31 December 2025 37,004,873 - 2,692,667 39,697,540 $’000 $’000 $’000 $’000 The transfer to Level 3 fair value measurements were because of the changes of inputs in fair value measurements.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 73 27 FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued) (b) Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis (but fair value disclosures are required) The carrying amounts of the Group’ s financial instruments carried at amortised cost are not materially different from their fair values as at 30 June 2026 and 31 December 2025 except for the following financial instruments, for which their carrying amounts and fair value and the level of fair value hierarchy are disclosed below: Carrying Fair amount value Level 1 Level 2 Level 3 At 30 June 2026 79,363,573 74,930,569 41,003,036 15,111,851 18,815,682 16,058,029 16,136,013 - 16,136,013 - $’000 $’000 $’000 $’000 $’000 Financial investments at amortised cost Interest-bearing notes Carrying Fair amount value Level 1 Level 2 Level 3 At 31 December 2025 Financial investments at amortised cost 92,991,233 89,360,082 47,331,716 18,213,223 23,815,143 Interest-bearing notes 13,290,101 13,407,681 - 13,407,681 - $’000 $’000 $’000 $’000 $’000 For listed debt investments measured at amortised cost classified as Level 1, fair value is based on quoted prices (unadjusted) for identical assets traded in active market. For unlisted debt investments measured at amortised cost classified as Level 2, fair value is determined by generally accepted pricing models including discounted cash flow technique by using observable market inputs such as market interest yield. For debt investments measured at amortised cost classified as Level 3, fair value is determined by generally accept ed pricing models including discounted cash flow technique by using unobservable discount rates that reflect the credit risk.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 74 28 DEEMED ACQUISITION/ACQUISITION OF PARTIAL INTERESTS IN A SUBSIDIARY (a) Deemed acquisition of Taiping Financial Services Company Limited Prior to 1 January 2025, the Group owned 48% equity interest s in TPFS, which was classified as an associate by using the equity method. The p rincipal activities of TPFS is engaged in investment holding and financial services. On 1 January 2025, the Group reassessed a control over TPFS by considering a power over the investee, exposure or rights to variable returns from the involvement with the investee and the ability to use its power to affect the return of the investee. Consequently, the Group concluded that it has a control over TPFS and ceased to account for it as an associate by using the equity method, and accounted for it as a subsidiary since 1 January 2025, which is considered as the deemed acquisition date. Its assets and liabilities are consolidated into the Group’s consolidated financial statements by using the acquisition method. The Group’s 48% equity interest in TPFS was measured at a fair value of $440,731,000 at the deemed acquisition date and the r elevant deemed disposal loss of $241,235,000 was recognised in the Group ’s consolidated statement of profit or loss during the Last Period . Non-controlling interests of $478,064,000 was also recognised at the deemed acquisition date. No goodwill was recognised in this transaction. After completion of this transaction, the financial impacts of TPFS is not significant to the Group. (b) Acquisition of partial interests in Taiping Private Equity Fund Management Co., Ltd. (previously named as Taiping Poly Investment Management Company Limited) The Group owned 51% equity interests in TP Equity , a subsidiary of the Group. The principal activities of TP Equity is engaged in providing the management services. During the Last Period, the Group acquired the additional 49% equity interest s in TP Equity at a consideration of approximately $10,912,000 (i.e. RMB 10,000,000). After the acquisition completed, TP Equity is a wholly owned subsidiary of the Group. This acquisition is accounted for as an equity transaction which resulted in a decrease of accumulated loss of $7,476,000 being borne by the non-controlling interests and a loss of $18,388,000 recognised in the capital reserve. After completion of this transaction, the fina ncial impacts of TP Equity is not significant to the Group.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 75 29 COMMITMENTS (a) Capital commitments as at 30 June 2026 were as follows: At 30 June 2026 89,128 1,222,963 36,034 1,348,125 At 31 December 2025 Contracted for but not provided - property and equipment 28,079 - investments 1,120,801 Authorised but not contracted for - property and equipment 36,979 1,185,859 $’000 $’000 (b) Operating lease commitments: The Group as lessor The Group leases out operating lease assets and investment properties under operating leases. The leases typically run for an initial period of 2 to 5 years, with an option to renew the lease after that date at which time all terms are renegotiated. Lease payments are usually reviewed every 2 to 5 years to reflect market rental. None of the leases includes contingent rentals. The gross carrying amounts of operating lease assets and investment properties of the Group held for use in operating leases were $40,423,792,000 ( 31 December 2025: $40,429,334,000). As at 30 June 2026, the Group had contracted with tenants for the following future minimum lease payments: 2026 1,977,902 1,424,367 1,037,080 833,453 577,569 1,527,697 2,133,777 1,440,230 1,031,326 797,766 608,116 1,156,193 At 30 June At 31 December 7,378,068 7,167,408 2025 Within 1 year After 1 year but within 2 years After 2 years but within 3 years After 3 years but within 4 years After 4 years but within 5 years After 5 years $'000 $'000
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 76 30 MATERIAL RELATED PARTY TRANSACTIONS The Group has not entered significant recurring and non-recurring transactions with related parties during the Period. Business transactions between state -owned enterprises controlled by the PRC (collectively “State-Owned Entities”) are within the scope of related party transactio n. During the Period , the Group had transactions with State -Owned Entities including but not limited to the sales of insurance policies, leasing services and banking related services. These transactions are conducted in the ordinary course of the Group’s insurance business on terms similar to those that would have been entered into with non- State-Owned Entities. The Group has also established its pricing strategy and approval processes for its major insurance products. Such pricing strategy and approval processes do not depend on whether the customers are State -Owned Entities or not. Having due regard to the substance of the relationships, the D irectors believe that none of these transactions are related party transactions that require separate disclosure. 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (a) Underwriting strategy Life insurance business The Group operates its life insurance business in the PRC , Hong Kong , Macau and Singapore’s life insurance market, offering a wide range of insurance products covering different types of individual and group life insurance, health insurance, accident insurance and annuity. With regard to the control of quality of the insurance polic ies underwritten, the Group has formulated strict operational procedures on underwriting and claims settlement to control risks on insurance underwriting. Property and casualty insurance business The Group is engaged in the underwriting of property and casualty insurance business in the PRC, Hong Kong, Macau, UK, Luxembourg, Singapore and Indonesia. The Group focuses its property and casualty insurance business by offering a wide range of insurance products covering different types of property insurance (including compulsory motor insurance), liability insurance, credit insurance, guarantee insurance, short-term accident and health insurance and the related reinsurance business. The Group has formulated strict operational procedures on underwriting and claims settlement to control risks on insurance underwriting. Reinsurance business The Group’s reinsurance portfolio is made up of a mix of business spreading across different geographic regions with emphasis towards Asian countries , covering property damage, life, marine cargo and hull and miscellaneous non-marine classes. Whilst diversifying its underwriting portfolio, the Group does not actively seek acceptance of any liability reinsurance business from customers operating outside the Asia Pacific region. In the Asia Pacific region, where these are core-markets of the Group, liability reinsurance businesses are written on a limited scale in order to provide customers in the region with comprehensive reinsurance services.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 77 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (a) Underwriting strategy (Continued) Reinsurance business (Continued) For life reinsurance business strategy, current portfolio of life business is mainly made up of saving business with emphasis on Hong Kong market. Besides maintaining current business scale, in order to diversify and balance the underwriting portfolio, the Group starts to emphasise on the development of protection business and financial reinsurance business. The Group’s strategy is to develop business with prudent attitude, gain more s ophisticated market experience instead of seeking fast business expansion. (b) Reinsurance strategy The Group purchases reinsurance protection from other reinsurers in the normal course of business in order to limit the potential for losses arising from unexpected and concentrated exposures. In assessing the credit worthiness of reinsurers, the Group takes into account, among other factors, ratings and evaluation performed by recognised credit rating agencies, their claims-paying and underwriting track record, as well as the Group’s past experience with them. (c) Asset and liability matching The Group actively manages its assets using an approach that balances quality, diversification, asset and liability matching, liquidity and investment return. The goal of the investment process is to maximis e investment returns at a tolerable risk level, whilst ensuring that the assets and liabilities are managed on a cash flow and duration basis.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 78 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (d) Insurance risk (i) Life insurance business Concentration of insurance risks Concentration risk is the risk of incurring a major loss as a result of having a significant mortality or other insurance coverage on a particular person or a group of persons due to the same event. The Group manages the concentration of insurance risks by way of reinsurance arrangements with a maximum retention risk of RMB500,000 per person in life and personal accident policies and RMB200,000 on critical illness insurance. In addition, the Group purchases catastrophe prot ection for losses arising from claims involving multiple lives from the same event. The maximum retention risk is RMB1 million for each and every loss occurrence, and the total coverage is RMB100 million for each and every loss occurrence. The Group purchases surplus treaties and proportional treaties to cover life, accident and long term health risks. In addition, an excess of loss reinsurance contract is applied for any insurance contract with significant sum insured. Management of risks The key risk as sociated with life insurance contracts is the risk of potential loss arising with respect to a particular insurance product as a result of actual market conditions and loss experience being different from the assumed market conditions and loss experience used when designing and pricing the product. The Group manages the risks by centralising the product design function at the head office level, headed by the chief appointed actuary and senior management in other key functional departments. Standards and guidelines are established to ensure that the risks associated with particular products are within the acceptable level. The pricing method, the solvency requirement, the profit margin, the loss experience are key considerations in designing a product. In addition, the underwriting and claim processing departments strictly follow the established standards and procedures.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 79 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (d) Insurance risk (Continued) (ii) Property and casualty insurance business Concentration of insurance risks Within the insurance process, concentration of risk may arise where a particular event or series of events could impact heavily upon the Group’s liabilities. Such concentrations may arise from a single insurance contract or through a small number of related contracts, and relate to circumstances where significant liabilities could arise. Management of risks The Group delegates underwriting authority to experienced underwriters. Each underwriting department has an underwr iting manual for each class of business. The underwriting manual is approved by the Business Management Committee and specifies the authority of underwriters at each level. Each underwriting manual clearly states the insurable risk, risks that can be insured on a limited scale and uninsurable risk as well as the probable maximum loss which underwriters at each level can underwrite. Risks that exceed the underwriting authority of the head of the underwriting department have to be reviewed and approved by the Business Management Committee. For claims handling, there is a procedures manual that lays down the operational procedures and controls required to mitigate the insurance risk. The Group also arranges both treaty reinsurance and facultative reinsurance i n accordance with international practice. Treaty reinsurance provides automatic reinsurance cover under specific reinsurance contract terms and conditions. Facultative reinsurance is reinsurance of individual risk. Each contract is arranged separately. The choice of reinsurance contract depends on market conditions, market practice and the nature of business. Facultative reinsurance is arranged when an individual risk is not covered by treaty reinsurance or exceeds treaty reinsurance capacity and exceeds it s own underwriting capacity.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 80 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (d) Insurance risk (Continued) (iii) Reinsurance business Concentration of insurance risks Concentration of risk arises from the accumulation of risks within a particular business line. The Group’s key methods in managing these risks are diversification of the business line and areas where the gross premiums are written. Management of risks The key risks associated with reinsurance contracts are those relating to underwriting. The Group maintains underwriting teams who are responsible for the underwriting and sales of the Group’ s reinsurance products. The team promoting a certain product to a customer has the requisite expertise to determine whether the Group can meet the specific requirement of the customer within the Group’ s risk appetite. All inward business is screened and analysed by the underwriting staff. The decision to underwrite and the level of risk exposure accepted are determined by reference to the underwriting guideline setting out the types of business desired, and the maximum capacity per risk. Such criteria are determined by considering factors including the risk exposure, the pricing, the profit potential, the class of business, the marketing s trategy, the retrocession facilities available and the market trends. The Group arranges pro rata and excess of loss retrocessions for its different lines of reinsurance business, in order to enhance its underwriting capacity as well as to harmonise its net retained exposures. Proportional retrocessions have been arranged in respect of its nonmarine reinsurance business from the Asia-Pacific territories. In addition, a series of excess of loss retrocession covers are also arranged to protect the Group against major catastrophic events. The life retrocession arrangements are normally decided collectively with the Group ’s management board before the confirmation of any new retrocession arrangements. All life retrocession arrangement follows the fundamental retrocession guideline of the group and regulatory requirement. Retrocession arrangements used to manage the volatility of mortality risk.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 81 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (e) Financial risk Transactions in financial in vestments and insurance assets/liabilities may result in the Group assuming financial risks. These include market risk, credit risk and liquidity risk. Each of these financial risks is described below, together with a summary of the ways in which the Group manages these risks. There is no significant change in the Group’ s exposures to risk and how they arise, nor the Group’s objectives, policies and processes for managing each of these risks. (i) Market risk Market risk can be described as the risk of change in fair value of a financial instrument due to changes in interest rates, equity prices or foreign currency exchange rates. The objective of market risk management is to control market risk exposures within acceptable parameters while optimising the return on risk. Market risk principally arises from the Group ’s equity investments, interest- bearing financial assets and financial liabilities, and financial assets and financial liabilities denominated in foreign currencies, but these exposures are lar gely offset by similar exposures arising from insurance and reinsurance contracts. The nature of the Group 's business and asset-liability matching processes means that it is exposed to market risk on net assets representing shareholders ’ equity. Interest r ate risk also arise from guarantees in the Group’ s insurance and investment contracts to the extent that they are not economically hedged or borne by contract holders. (a) Interest rate risk Interest rate risk is risk to the earnings or market value of a fixed -rate financial instrument due to uncertain future market interest rates. Some of the contracts issued by the Group contain interest rate guarantees. The Group monitors this exposure through periodic reviews of its financial instruments and closely matching, where possible, the durations of insurance contracts with fixed and guaranteed te rms and the supporting financial assets. Estimates of cash flows, as well as the impact of interest rate fluctuations relating to the investment portfolio are modelled and reviewed periodically. The Group is exposed to fair value interest rate risk in rel ation to the debt investments measured at FVPL and FVOCI, and the measurement of net reinsurance contract assets and net insurance contract liabilities.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 82 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (e) Financial risk (Continued) (i) Market risk (Continued) (b) Equity price risk The Group has a portfolio of marketable equity securities, which is carried at fair value and is exposed to price risk. This risk is defined as the potential loss in market value resulting from an adverse change in prices. The Group manages the equity price risk by investing in a diverse portfolio of high quality and liquid securities. The Group does not have a significant concentration of equity price risk. As at 30 June 2026, t he Group ’s investment in equity securities and investment funds was carried at a fair value of $ 367,335,008,000 (31 December 2025: $301,937,976,000), representing approximately 20% (31 December 2025: approximately 18%) of total investments held by the Group. (c) Foreign exchange risk The Group is exposed to foreign currency transaction risk to the extent that the currencies in which insurance and reinsurance contracts and financial instruments are denominated differ from the functional currencies of Group entities. In respect of the life insurance and property and casualty insurance business in the PRC, premiums are received in RMB and the insurance regulation in the PRC requires insurers to hold RMB assets. Therefore, the foreign exchange risk in respect of RMB for the Group ’s PRC operations is not significant in the condensed consolidated statement of profit or loss. In respect of the property and casualty insurance business and reinsurance business in Hong Kong , the majority of the premiums are received in HKD and USD. The exchange rate between HKD and USD is currently pegged. The currency position of assets and liabilities is monitored by the Group periodically. In respect of the property and casualty insurance business in Macau , UK, Luxembourg, Singapore and Indonesia and reinsurance business, the foreign exchange risks in such various currencies are not significant in the condensed consolidated statement of profit or loss.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 83 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (e) Financial risk (Continued) (ii) Credit risk Credit risk is the risk of economic loss resulting from the failure of one of the obligors to make full payment of principal or interest when due. The Group is exposed to credit risks primarily associated with debt investments measured at amortised cost and FVOCI, and finance lease receivables . The statutory deposits, pledged and restricted bank deposits, cash and cash equivalent and amounts due from group companies and other assets are subject to ECL requirement, the identified impairment allowance was immaterial. The Group internally grades financial assets based on the credit quality, risk characteristics and the Group’s internal credit control policy. Where applicable, these internal credit ratings are aligned to external credit rating companies such as Moody’s and China Central Depository & Clearing Co., Ltd. Credit risk management practices The risk level of the various investment sectors is continuously monitored with the investment mix adjusted accor dingly. In respect of the debt securities and debt products invested by life insurance and property and casualty insurance business in the PRC, the investment procedures manual, which is managed by an investment committee, includes the minimum acceptable credit rating of the issuers as required by the NFR A. Any non-compliance or violation of the manual will be followed up and rectifi cation action will be taken immediately. The Group does not have any significant concentration of counterparty credit risk arising from the investments in debt securities since the investment portfolio is well diversified. The credit risk associated with reinsurance companies is managed by regular evaluation of the credit quality of the relevant reinsurers. In addition, majority of the reinsurers ’ share of insurance contract provisions are held under a net settlement arrangement against the corresponding insurance creditor balances with the same reinsurer.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 84 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (e) Financial risk (Continued) (ii) Credit risk (Continued) Judgement of significant increase in credit risk In determining whether the credit risk of a financial asset has increased significantly since initial recognition, the Group evaluates the credit ri sk at initial recognition and also whether there is any significant increase in credit risk for each reporting period. The Group considers individual financial asset or financial assets with similar credit risk characteristics to determine ECL staging by comparing the credit risk of the financial asset at reporting date with the credit risk at initial recognition. Various reasonable supporting information are used to judge if there is significant increase in credit risk, including forward-looking information, when determining the ECL staging for financial assets. The Group set quantitative and qualitative criteria to identify whether the financial asset has significant increase in credit risk since initial recognition. Major factors being considered is the probability of default upon initial recognition of financial asset and whether there has been ongoing increase in probability of default throughout each reporting period. The Group assess significant increase in credit risk as at each reporting date based on available reasonable and supportive forward- looking information such as but not limited to: - External credit rating (as far as available); - Actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the issuer ’s ability to meet its obligations; - Actual or expected significant changes in the operating results of the issuer; - Significant increase in credit risk on other financial instruments issued by the same issuer; and - Significant changes in the value of the collateral supporting the financial asset or the quality or third party guarantees or credit enhancements. In the judgement of whether the financial instruments have significant increase in credit risks after initial recognition, the Group considers the 30 days (inclusive) past due as one of criteria of significant increase in credit risks, in accordance with HKFRS 9.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 85 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (e) Financial risk (Continued) (ii) Credit risk (Continued) Judgement of credit-impaired assets At each reporting date, the Group assesses whether financial assets measured at amortised cost, debt investments at FVOCI and lease receivables are credit -impaired. A financial asset is credit impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data: - Internal credit rating is default grade; or - The lender gives the borrower concessions for economic or contractual reasons due to the debtor financial difficulties, where such concessions are normally reluctant to be made by the borrower; or - Significant financial difficulty of the issuer or counterparty; or - I t becoming probable that the borrower will enter bankruptcy or financial re-organisation; or - Disappearance of an active market for that financial asset because of financial difficulties. A financial asset that has been renegotiated due to a deterioration in the borrower ’s condition is usually considered to be credit -impaired unless there is evidence that the risk of not receiving contractual cash flows has reduced significantly and there are no other indicators of impairment.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 86 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (e) Financial risk (Continued) (ii) Credit risk (Continued) Judgement of credit-impaired assets (Continued) In assessing whether an investment in sovereign debt is credit -impaired, the Group considers the following factors: - the market’s assessment of creditworthiness as reflected in bond yields; - the rating agencies’ assessments of creditworthiness; - the country’s ability to access the capital markets for new debt issuance; - the probability of debt being restructured, resulting in holders suffering losses through voluntary or mandatory debt forgiveness; and - the international support mechanisms in place to provide the necessary support as “Lender of Last Resort” to that country, as well as the intention, reflected in public statements, of governments and agencies to use those mechanisms, including an assessment of the depth of those mechanisms and, irrespective of the political intent, whether there is the capacity to fulfil the required criteria. The financial asset is considered credit -impaired when the counterparty fails to make contractual payments within 90 days of when they fall due.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 87 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (e) Financial risk (Continued) (ii) Credit risk (Continued) Modified financial assets The contractual terms of a financial asset may be modified for a number of reasons, including changing market conditions and other factors not related to a current or potential credit deterioration of the debtor. An existing financial asset whose terms hav e been modified may be derecognised and the renegotiated asset recognised as a new financial asset at fair value plus eligible transaction costs in accordance with the accounting policies set out in the Group’s annual financial statements for the year ended 31 December 2025 . The new asset is allocated to Stage 1 (assuming that it is not credit-impaired at the date of modification). When the terms of a financial asset are modified and the modification does not result in derecognition, the determination of whether the asset ’s credit risk has increased significantly reflects a comparison of: - its internal credit rating as at the reporting date based on the modified terms; with - the internal credit rating based on data on initial recognition and the ori ginal contractual terms. Credit quality analysis The following tables mainly disclosed the credit quality analysis for the net carrying amount of debt investments measured at FVOCI and at amortised cost , and finance lease receivables without taking into account collateral or other credit enhancements. At 30 June 2026 Net carrying amount: 1,144,364,057 530,562 2,593 1,144,897,212 73,817,126 4,612,668 933,779 79,363,573 37,310,781 3,212,573 22,944 40,546,298 1,255,491,964 8,355,803 959,316 1,264,807,083 Stage 1 Stage 2 Stage 3 Total $’000 $’000 $’000 $’000 Debt investments at FVOCI Debt investments at amortised cost Finance lease receivables Amortised cost At 31 December 2025 Debt investments at FVOCI 1,025,613,999 2,078,597 2,681 1,027,695,277 Debt investments at amortised cost 85,195,919 6,888,543 906,771 92,991,233 Finance lease receivables 37,547,393 3,463,992 15,871 41,027,256 1,148,357,311 12,431,132 925,323 1,161,713,766 Stage 1 Stage 2 Stage 3 Total $’000 $’000 $’000 $’000 Net carrying amount: Amortised cost
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 88 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (e) Financial risk (Continued) (ii) Credit risk (Continued) Inputs, assumptions and techniques used for estimating impairment The parameters and assumptions involved in ECL model are described below: For financial assets with or without significant increase in credit risk, lifetime or 12 months expected credit losses are provided respec tively. ECL is the result of discounting the product of Exposure at Default (“EAD”), Probability at Default (“PD”) and Loss Given Default (“LGD”). EAD: EAD is based on the amounts of the Group expects to be owed at the time of default, over the next 12 months or over the remaining lifetime. PD: PD represents the likelihood of a borrower defaulting on its financial obligation, either over the next 12 months or over the remaining lifetime of the obligation, depending on whether the financial asset has signi ficant increase in credit risk since initial recognition or is assessed to be credit -impaired as described above. PD for each internal credit rating is determined by the Group’s Credit Rating Center and is reviewed annually. LGD: LGD represents the Group’ s expectation of the extent of loss on default exposure. LGD varies type of financial asset, type of counterparty, seniority of claim and availability of collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at EAD . The Group determines LGD taking into consideration publications by Basel Committee on Banking Supervision and Moody ’s, adjusted based on the financial condition of the borrower and the Group’s experience studies. The Group makes adjustment to the probability of default taking into consideration historical default rates and adjusts for forward -looking macroeconomic data. There were no significant changes to estimation techniques or assumptions made during the Period. Incorporation of forward-looking information The Group incorporates forward-looking information into both its assessment of whether the credit risk of an instrument has increased significantly since initial recognition and its measurement of ECL. External information including economic d ata and forecasts published by governmental bodies and monetary authorities in the countries where the Group operates would be considered when incorporating the forward -looking information.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 89 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (e) Financial risk (Continued) (iii) Liquidity risk The Group has to meet daily calls on its cash resources, notably from claims arising from its life insurance contracts, property and casualty insurance contracts and reinsurance contracts. There is, therefore, a risk that cash will not be available to settle liabilities when due. The Group manages this risk by formulating policies and general strategies of liquidity management to ensure that the Group can meet its financial obligations in normal circumstances and that an adequate stock of high- quality liquid assets is maintained in order to contain the possibility of a liquidity crisis. Apart from liquidity management and regulatory compliance, the Group always strives to maintain a comfortable liquidity cushion as a safety net for coping with unexpected large funding requirements and to maintain a contingency plan to be enacted should there be a company specific crisis. Financial instruments The following table details the remaining contractual obligations for its financial instruments based on the agreed repayment terms, except for investment contract liabilities which are based on expected maturity dates since the exercise of all surrender and transfer options would result in all investment contracts being presented as falling due with one year or less. At 30 June 2026 T otal Le ss than 1 year to More than undiscounted Carrying 1 year 5 years 5 years cash flows val u e Financial assets: 1,745,466 5,437,026 - 7,182,492 6,806,378 448,985,736 258,813,946 1,741,882,456 2,449,682,138 1,839,326,846 19,888,904 - - 19,888,904 19,699,710 1,351,569 - - 1,351,569 1,351,569 14,065,326 25,664,076 5,900,544 45,629,946 40,546,298 14,714,464 65,554,820 - 80,269,284 77,800,167 54,871,047 - - 54,871,047 54,871,047 555,622,512 355,469,868 1,747,783,000 2,658,875,380 2,040,402,015 Financial liabilities: 518,371 9,959,023 7,990,823 18,468,217 16,058,029 56,936,783 4,865,220 782,057 62,584,060 61,564,464 668,002 771,177 11,068 1,450,247 1,254,093 32,000,059 573,463 1,922,231 34,495,753 33,957,555 91,648,416 - - 91,648,416 91,645,478 16,210 - - 16,210 16,210 181,787,841 16,168,883 10,706,179 208,662,903 204,495,829 $’000 $’000 $’000 $’000 $’000 S tatu tory deposits Financial investments Securities purchased under resale agreements Amounts due from group companies Finance lease receivables P ledged and restricted bank deposits and deposits at banks wit h original matu rity more than three months Cash and cash equivalents Interest -bearing notes Bank borrow ings Lease liabilities Investment contract liabilities Securities sold under repurchase agreements Amounts due to group companies
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 90 31 INSURANCE AND FINANCIAL RISK MANAGEMENT (Continued) (e) Financial risk (Continued) (iii) Liquidity risk (Continued) Financial instruments (Continued) S tatu tory deposit s 2,318,745 4,811,782 - 7,130,527 6,527,578 Financial investments 407,641,922 241,440,228 1,584,735,627 2,233,817,777 1,675,074,563 Securities purchased under resale agreements 5,673,371 - - 5,673,371 5,673,005 Amount s due from group companies 1,313,071 - - 1,313,071 1,313,071 Finance lease receivables 14,192,351 27,046,726 5,106,040 46,345,117 41,027,256 P ledged and restricted bank deposit s and deposit s at banks wit h original matu rity more than three months 11,317,443 64,290,673 - 75,608,116 72,006,048 Cash and cash equivalents 54,360,241 - - 54,360,241 54,360,241 496,817,144 337,589,409 1,589,841,667 2,424,248,220 1,855,981,762 Interest -bearing notes 354,076 7,588,619 7,629,082 15,571,777 13,290,101 Bank borrowings 47,357,658 17,579,251 977,703 65,914,612 64,405,586 Lease liabilities 618,060 706,734 5,903 1,330,697 1,242,949 Investment contract liabilities 23,483,311 739,259 1,900,905 26,123,475 25,591,743 Securities sold under repurchase agreements 106,759,401 - - 106,759,401 106,731,701 Amount s due to group companies 17,500 - At 31 December 2025 To t a l Le ss than 1 year to More than undiscounted Carrying 1 year 5 years 5 years cash flows val u e Financial assets: Financial liabilities: $’000 $’000 $’000 $’000 $’000 - 17,500 17,500 178,590,006 26,613,863 10,513,593 215,717,462 211,279,580 Insurance and reinsurance contracts The following table provides a maturity analysis of the Group’s insurance and reinsurance contracts, which reflects the dates on which the net cash flows are expected to occur. At 30 June 2026 Less than 1 year to 2 years to 3 years to 4 years to Over 1 year 2 years 3 years 4 years 5 years 5 years Total Insurance contracts 59,415,806 31,305,041 17,031,871 52,590,742 48,773,442 1,214,869,408 1,423,986,310 Reinsurance contracts (2,716,362) (2,815,167) (584,655) (1,110,476) (179,209) (279,597) (7,685,466) Total 56,699,444 28,489,874 16,447,216 51,480,266 48,594,233 1,214,589,811 1,416,300,844 $’000 $’000 $’000 $’000 $’000 $’000 $’000 At 31 December 2025 Less than 1 year to 2 years to 3 years to 4 years to Over 1 year 2 years 3 years 4 years 5 years 5 years Total Insurance contracts 69,848,385 33,501,610 19,651,149 15,122,767 57,592,096 1,070,595,479 1,266,311,486 Reinsurance contracts (3,383,777) (1,836,829) (1,460,517) (144,613) (42,897) (665,898) (7,534,531) Total 66,464,608 31,664,781 18,190,632 14,978,154 57,549,199 1,069,929,581 1,258,776,955 $’000 $’000 $’000 $’000 $’000 $’000 $’000 The amou nts from insurance contracts that are payable on demand are $1,105,456,554,000 as at 30 June 2026 (31 December 2025: $1,012,231,251,000).
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 91 CHANGES TO INFORMATION IN RESPECT OF DIRECTORS In accordance with Rule 13.51B(1) of the Listing Rules, the changes to information required to be disclosed by the Directors pursuant to paragraphs (a) to (e) and (g) of Rule 13.51(2) between 25 March 2026 (being the date of approval of the Company’s 2025 Annual Report) and 25 August 2026 (being the date of approval of the Company’s 2026 Interim Report). Mr. FENG Zhanwu was appointed as a non- executive director of TPG and TPG (HK) with effect from April 2026, was appointed as a director of TPP with effect from May 2026, and was appointed as a director of TPAM with effect from June 2026. Ms. CHAN Ching Har Eliza was appointed as a n independent non-executive director of the Company with effect from August 2026. After making specific enquiries by the Company and confirmed by the Directors, save as disclosed above, there is no information required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules. DIRECTORS’ AND CHIEF EXECUTIVE’S INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES As at 30 June 2026, none of the Directors and chief executive of the Company had any interests or short positions in the shares, underlying shares and debentures of the Company and its associated corporations (within the meaning of Part XV of the SFO) as recorded in the register required to be kept under section 352 of the SFO or as otherwise which had to be notified to the Company and the Stock Exchange pursuant to the Model Code. During the Period, no Directors nor any of their spouses or children under the age of eighteen years has any interests in or has been granted any rights to subscribe for equity or debt securities of the Company nor was there been any exercise of any such rights by any of them. At no time during the Period was the Company, any of its holding companies, subsidiaries or fellow subsidiaries a party to any arrangement to enable the directors or chief executive of the Company or any of their spouses or children under eighteen years of age to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 92 SUBSTANTIAL SHAREHOLDERS’ AND OTHER PERSONS’ INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES As at 30 June 2026, the interests and short positions of the shareholders, other than a director or chief executive of the Company, in the shares and underlying shares of the Company as recorded in the register required to be kept by the Company under Section 336 of SFO were as follows: Percentage of issued Substantial Number Long position/ share capital shareholders Capacity of ordinary shares short position % TPG Interest of controlled 2,201,515,256 Long position 61.25 corporation (Note 1) TPG (HK) 1,913,138,449 Shares as 2,201,515,256 Long position 61.25 beneficial owner and 288,376,807 Shares (Note 2) as interest of controlled corporation Notes: (1) TPG’s interest s in the Company is held by TPG (HK), Easiwell, Taiping Golden Win and Manhold, all of which are wholly-owned subsidiaries of TPG. (2) 168,098,887 Shares are held by Easiwell, 53, 975,970 Shares are held by Taiping Golden Win and 66,301,950 Shares are held by Manhold. Save as disclosed above, the register required to be kept under Section 336 of the SFO showed that the Company had not been notified of any interests or short positions in the shares and underlying shares of the Company as at 30 June 2026. Corporate Governance During the Period, the Company was in compliance with the code provisions set out in the CG Code. The Company has adopted the Model Code as the code of conduct regarding securities transactions by the Directors. Having made specific enquiries of all Directors, the Company confirmed that during the Period, all Directors have complied with the required standards as set out in the Model Code. The interim results for the Period has been reviewed by the audit committee of the Com pany and independent auditor of the Company, KPMG.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 93 CORPORATE INFORMATION BOARD OF DIRECTORS Executive Directors YIN Zhaojun Chairman LI Kedong Vice Chairman and General Manager NA Yanfang Non-executive Directors ZHOU Lianggang FENG Zhanwu Independent non-executive Directors CHAN Ching Har Eliza LIU Yi SHIU Sin Por CAI Hongping AUDIT COMMITTEE LIU Yi Chairman ZHOU Lianggang FENG Zhanwu SHIU Sin Por CAI Hongping NOMINATION AND REMUNERATION COMMITTEE SHIU Sin Por Chairman NA Yanfang LIU Yi RISK MANAGEMENT COMMITTEE CAI Hongping Chairman LI Kedong NA Yanfang FENG Zhanwu STRATEGY AND INVESTMENT COMMITTEE YIN Zhaojun Chairman LI Kedong NA Yanfang ZHOU Lianggang COMPANY SECRETARY ZHANG Ruohan AUTHORI SED REPRESENTATIVES YIN Zhaojun ZHANG Ruohan REGISTERED OFFICE 25/F., China Taiping Finance Centre, 18 King Wah Road, North Point, Hong Kong Telephone: (852) 2854 6100 Facsimile: (852) 2544 5269 E-mail: mail@cntaiping.com REGISTRAR AND TRANSF ER OFFICE Computershare Hong Kong Investor Services Limited Shops 1712-16, 17/F, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong INDEPENDENT AUDITOR KPMG (Certified Public Accountants and Registered Public Interest Entity Auditor) PRINCIPAL BANKERS Bank of China (Hong Kong) Limited Nanyang Commercial Bank, Ltd. Agricultural Bank of China Limited Hong Kong Branch WEBSITE www.ctih.cntaiping.com www.cntaiping.com STOCK MARKET LISTING The Main Board of The Stock Exchange of Hong Kong Limited (Stock Code: HK 00966)
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 94 DEFINITIONS In the announcement, the following expressions shall have the following meanings unless the context requires otherwise: “Board” the board of Directors “CG Code” Corporate Governance Code as set out in Appendix C1 of the Listing Rules “Company” or “CTIH” China Taiping Insurance Holdings Company Limited “CSM” Contractual service margin “CTPI (HK)” China Taiping Insurance (HK) Company Limited “Directors” The directors of the Company, including the independent non -executive directors “Easiwell” Easiwell Limited “ECL” Expected credit loss “FVOCI” Fair value through other comprehensive income “FVPL” Fair value through profit or loss “Group” CTIH and its subsidiaries “HIBOR” Hong Kong Interbank Offer Rate “HKAS” Hong Kong Accounting Standard “HKFRS Accounting standards ” All applicable Hong Kong Financial Reporting Standard s, Hong Kong Accounting Standards, and Interpretations issued by the Hong Kong Institute of Certified Public Accountants “HKFRS” Hong Kong Financial Reporting Standard “HKICPA” Hong Kong Institute of Certified Public Accountants “Hong Kong” Hong Kong Special Administrative Region of the PRC “Indonesia” Republic of Indonesia “Last Period” or “1H 2025” The six months ended 30 June 2025 “Listing Rules” The Rules Governing the Listing of Securities on the Stock Exchange “Luxembourg” Grand Duchy of Luxembourg “Macau” Macau Special Administrative Region of the PRC “Manhold” Manhold Limited
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 95 “Model Code” Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules “NFRA” National Financial Regulatory Administration “PAA” Premium allocation approach “PRC” or “China” The People’s Republic of China “SFO” Securities and Futures Ordinance “Share(s)” Share(s) in the capital of the Company “Singapore” Republic of Singapore “Taiping Golden Win” Taiping Golden Win Investment Limited “the Period” or “1H 2026” The six months ended 30 June 2026 “the Stock Exchange” The Stock Exchange of Hong Kong Limited “TPAM” Taiping Asset Management Company Limited “TPAM (HK)” Taiping Assets Management (HK) Company Limited “TPCA” Taiping Capital Asset Management Company Limited “TPFH” Taiping Financial Holdings Company Limited “TPFS” Taiping Financial Services Company Limited “TPG” China Taiping Insurance Group Ltd. “TPG (HK)” China Taiping Insurance Group (HK) Company Limited “TPI” Taiping General Insurance Company Limited “TPIH (HK)” Taiping Investment Holdings (HK) Company Limited “TPL” Taiping Life Insurance Company Limited “TPL (HK)” China Taiping Life Insurance (Hong Kong) Company Limited “TPL (Macau)” China Taiping Life Insurance (Macau) Company Limited “TPP” Taiping Pension Company Limited “TPRe” Taiping Reinsurance Company Limited “TPRe (China)” Taiping Reinsurance (China) Company Limited “TP Equity” Taiping Private Equity Fund Management Co., Ltd.
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China Taiping Insurance Holdings Company Limited Announcement - Interim Results for the Six Months Ended 30 June 2026 96 “TP Fund” Taiping Fund Management Company Limited “TP Indonesia” PT China Taiping Insurance Indonesia “TP Luxembourg” China Taiping Insurance (LU) S.A. “TP Macau” China Taiping Insurance (Macau) Company Limited “TP Singapore” China Taiping Insurance (Singapore) PTE. Ltd. “TP UK” China Taiping Insurance (UK) Company Limited “TSFL” Taiping & Sinopec Financial Leasing Co. Ltd. “UK” the United Kingdom of Great Britain and Northern Ireland “United States” United States of America “RMB” Renminbi “HKD” or “HK$” Hong Kong dollars “USD” United States dollars By Order of the Board of China Taiping Insurance Holdings Company Limited ZHANG Ruohan Company Secretary Hong Kong, 25 August 2026 As at the date of this announcement, the Board comprise s 9 directors, of which Mr. YIN Zhaojun, Mr. LI Kedong and Ms. NA Yanfang are executive directors, Mr. ZHOU Lianggang and Mr. FENG Zhanwu are non -executive directors, and Ms. CHAN Ching Har Eliza, Ms. LIU Yi, Mr. SHIU Sin Por and Mr. CAI Hongping are independent non-executive directors.