China Reinsurance (Group) Corporation ($1508)

Distinguished investors and analyst, and media firms, good morning. Welcome to 2025 China Reinsurance Corporates Group result announcement. I'm the host, assistance to the Chairman and Secretary of the Board Mr. Cao. Today, please allow me to introduce the management with us today. We are Board of Directors, Mr. [ Shantanu ]; Vice Chairman, Mr. Lei, who is also the Chairman of [indiscernible] Insurance; West Chairman Life Insurance Director, Mr. Tian Meipan; Investment Officer, Mr. Li Wei; Mr. [indiscernible]. The result announcement will cover 2 parts. To begin with, the management will go through the performance of 2025. Mr. Zhuang will cover the overview and the outlook. Mr. Wang, Mr. Tian, and Mr. Lei, and Mr. Li will one by one go through the performance of each segment. The second part is the Q&A session. The questions of your concern will be covered. Now let's go to the first part. I pass the floor to Mr. Zhuang. Mr. Zhuang, the floor is yours.

Distinguished investors, analysts, media friends, Good morning. Welcome to China Reinsurance Group Corporate 2025 results announcement. The external situation is complicated. Our company is committed to be the top of the notch company of this kind in the world. We want to be stable but also progressive and speed up the development. As a result, the quality is up and the resilience is building up, I'd like to cover the administration and the implementation of the strategy. In 2025, what we have done. First, the performance of the operation has been improved. In 2025, our company committed to the large development with efficiency and effectiveness. This is the principle. The volume and the quality are both improved according to consistent measures, the combined premium is the combined premium and the profit to the parent company hit the record high. The combined premium is 186 [indiscernible] compared to the parent company is 9.7, comparatively up 38%. At different business segments, the performance grow stably, and the property insurance across 43% of the total profit, life insurance profits accounts 33.1% of the total profit and the property insurance and direct insurance account 10.7% of the total profit. Total assets of the group is CNY 527 billion, up 3.8%, equity in total was CNY 119 billion, up 5.9%. And we emphasized the return to the shareholders. In 2025, our group dividend per share is 0.0691. Second, we are serving the national strategy and making the -- bringing something new, we make the best of the insurance and the reinsurance measures and to implement national strategies in 5 major areas. We support innovation technology, green transformation and the public railings. We provide the products of insurance in these 3 cards. In 2025, for the finance service in total, we offered we offered a large amount of the products and serve SMEs in total 1,013 and public well being insurance covered in total [ 300 million ] times per person. So I promote the reinsurance market development, and we are consolidating as a leader in this industry. Our market share in property, life insurance are both the #1 in the industry, and we are developing the discipline of the market we set it up the Shanghai Reinsurance Conference. And for 4 years, we published the industry report. We joined in the national regulation revision and the standard making process of the country, we support Shanghai's international reinsurance center development. We have 3 operation centers the subsidiaries in Shanghai, the total trading and settlement of volume in those centers and the subsidiary are both the #1 in this industry and wafers on the system development and offer more measures to implement the strategy of the disaster coverage the coverage has been expanding, and we in-depth join in the strategic and policy disaster release efforts. And we added the assets to those business segments and cooperating [indiscernible]. And we set up the risk map in China, and over 30 companies use our products. We effects on the climate change risks. We started the research center for climate changes. We set it up the strategies for climate changes. International Symposium are setted up on this topic as well. For the first time, the supervision platform had made. Third, we serve the Belt and Road initiative. The consortium of [indiscernible] and the road in China was made under our leadership. The membership base expands from 11 to 14, coverage are expanded. We have 230 projects underwriting projects. The assets under our service was over 250 bidding capacity keep increasing. For 3 years, we keep growing up, and we covered the property insurance offshore for Chinese entities service level has been growing, built under road green principle are implemented. We actively monitor the risk as the offshore market and we also evaluate the risk for terrorism and geopolitical risks. International operation offers some good results by 2025 the company accumulated the total premium from offshore markets accounting 28% of the total. It covers 28 countries business covers over 200 regions or countries, 100 corporate partners are working with us, the efficiency has been improved. The overall size are growing steady stably. Overseas premium income was CNY 39 billion year-on-year, it was 4x up overseas profit of our insurance business grew 9x. Overseas business, a different platform are making money are profitable after incorporating with [indiscernible] for 7 years, the operation is going up. Premium and profits doubled. It is the synergy effect with the Chinese business and the Chinese entities. Subsidiaries in Singapore optimized as a structure for 3 years, it was profiting China reinsurance life insurance in Hong Kong premium made a record high as such and the size of the business grew up. Assets under management made a record high -- the profit of investments made a record high for 5 years. In 2026, June, we were awarded as the first in domestic China as the active insurer, international endeavor and development has been highly recognized by the regulators both at home and abroad. Digital transformation is speeding up. Technology empowers this transformation. We have IDI and the platform in total, the related premium was over CNY 6 million. Some other platform were completed like the insurance and health care business associated was 2.4. We have the combined risk management system that's offers the supervision and decision-making support for related business digital platform were completed. This platform supports the business value to CNY 14.5 [ billion ] digital governance is getting into being. We have the catalog and the categorization system the stock accounting system. This system is centralized. We can make it standardized, modulized and consistent in quality. The middle office and the operational office are connected with this platform and the data are shared. So the management is driven by digital data scenario is putting into practice DeepSeek and Q1 are making -- are applied in the foundation and agent application cover different scenario of the insurance business. The synergy between AI and human beings are maximized. Risk management it's also very steady. At a different agent of the operation, we have the really high solvency. The property is 229 and life insurance, 200%, the solvency rate is 279. S&P Rating A and base rating A operate is stable. Afterlook is stable. Now I pass the floor to the management team to cover different business segments. To begin with, I'd like to pass the floor to Mr. Wang, who is in charge of the asset insurance business.

Distinguished investors, media friends, analysts, good morning. It is my great honor to cover the performance of the asset insurance, lot as the domestic business. In 2025, we consolidated the market leader situation and put into practice of the national policy and strategy, innovation and digitalization are empowering us and we keep bringing new values to the business the premium was [ CNY 440.1 billion ] year-on-year, 3.5% and the service income was 19.9% year-on-year, 3.2% is mainly due to the reduced income that is once off from the agriculture-related products, combined terms, the growth is really positive, and the operation is getting more optimized ad hoc and nonproportional insurance make the very high-speed development. The growth rate was 18.3% and 100.5. In 2025, we under the new guiding principles, the cost ratio was 19.9% is up 2 percentage points. It's mainly because of the loss -- the loss made of last year, that's why the base of last year was really low last year. In comparable terms, I have to see this cost ratio is really stable. We are seeing the opportunity of the market transfer mission and diving into the emerging markets, and we are developing the key products the advantage in the emerging area are consolidated. The premium income was up 46.6% that accounts 11% of the total premium is up 3.4 percentage points among the short-term life insurance [indiscernible] insurance, overseas profits insurance and the green electricity insurance growth tremendously and fastly external business or offshore business. In 2025, high-quality is the principle so we keep up the quality of the insurance and the trend of the market, optimize the structure of the business. As a result, the income growth up and the efficiency was also up. The total insurance income was CNY [ 22.8 ] billion, up 7.5%. The first income was 25.7% of 10.2%. In the near term, the cost efficiency was down 3.52 percentage points. [indiscernible] facing the complicated international situation, but the operational efficiency was up and the return of the asset was also high. The insurance service income was CNY 2.2 [ billion, ] up 11.3%. Under the new terms, the consolidated cost ratio was 78.5%, it's down 5.37 percentage points. In 2025, the return of the asset was [ 18.1 ] after the acquisition, the average return rate was 13.4. That is the business segment's performance. Now I pass the floor to Mr. Tian Meipan to give you the idea.

Distinguished investors, ladies and gentlemen. It is my great honor to cover the life insurance and the performance. In 2025, the RMB exchange rate was rather late but the market was very active, and the rate for the U.S. dollar was high. As a result, the growth was really high but the products was very -- was not very diversified. So I think there are a couple of the guidelines from the authorities on encouraging the development of the insurance business. So we are facing both opportunities and the challenges, and we see the opportunities and to consolidate our [indiscernible] structure is getting up. In 2025, the [ light share ] insurance income was CNY 10 billion up 1.8% and the premium was CNY 61 billion, down 3.7% by lines of the business, the insurance business was 24.2% is up 1.9%, and we are promoting the new business through digital analysis and the dynamic of supervision, we found the existing business and we fund it up. And the financial reinsurance was down 49%, and so we enhanced -- we ensure a stabability. The size of the financial reinsurance is getting down. So we shifted the focus to other business segments and we implied the latest regulation and ensures the sustainability I think the business has been growing so fast, we see the opportunity, especially the saving insurance. The total premium was up 3.31%, and we see the opportunity to allocate the high-quality assets. So the leverage ratio was well managed. In the meantime, we were active in exploring the opportunity and strategy for the business development we redefined the saving based insurance business, and I believe it is the value creator in the new year. So we redesigned the development pattern. So we have the combined method. Let me give you some ideas about it. In the latest situation, the insurance income for the for this business segment is 9.5%. So this kind of the guarantee-based insurance like the disease management and other business segments are performing well above the industry average, and we make the breakthroughs on cooperating with different markets and different market participants. We find it out the [ CAM ] monitor system -- we make the best out of the latest national strategies. We have 360 wellbeing projects and 330 [ million ] people were served with this new scheme. We were actively engaging in the risk of the aging society than to cover the long-term care treatment and implement the transformation that covers some specialized kind of the products. We research the new research and risk we were very deeply engaged in the infrastructure development and compiled the number 4 set of the documents initiated the industry we emphasize the research capacity. We launched the research results on the latest situation as well as the white book of the medical products and the equipment. This is the -- the business of the life insurance. I'd like to pass to Mr. Lei about the asset and property insurance.

Distinguishing investors, ladies and gentlemen, good afternoon. Now I'd like to cover the asset insurance the direct insurance that is the [ Dadis ] business. In 2025, we deepened the operation of the products and build up the momentum of both customer service and business development. The foundation is the consolidated the capacity of profitability is recovering, the high-quality development is building up. Speaking of the profit results of last year, the growth of the premium was over the market. The premium income was 40.8% [ billing ], 4.2%. The insurance income was [ 48 ] billing is up 4.2%. Among that, the car-related business was CNY 26.5 [ billion ], up 3.6% non-car business premium income was CNY 22.3 [ billion ], up 2.9%. While we were steadily progressing our business and to be adaptive to the latest market situation and implement international strategy and the macro strategy. As a result, we prepared the coverage for the reserve fund. In the new standard, the combined cost ratio. Cost ratio was up 1.5%, excluding those one-off consideration -- I mean the provision of the reserve fund. I think the performance is the best among the 10 years, and we implement the operation. In the car business, the car business accounts for its accounts like 50% of the total business, and we were committed to the profit-making business innovation and we incorporate the family use the car and allocate the resources processly enhance the profitability from different from different parameters, the renewal rate was 69% is up 0.6 percentage points. And the confirmed used car renewal ratio was 7.9%, up 0.8 percentage points. Premium accounts 65% of the total premium and the underwriting car number was up 2.7%. For the non-car business, the service income was up 0.3 percentage points to 45.7. The major insurance types are our liability insurance, up 16.2%, agriculture insurance was up 9.7%, corporate assets insurance up 0.4%. Those are the business of my segments. Now I'll pass the floor to the Investment Officer, Mr. Li Wei to brief you the asset management.

Distinguished investors, analysts and media friends, good afternoon, good morning. And I'd like to cover the asset management external situation was very complicated, and there were a lot of uncertainty, geopolitical differences speeded up the insurance and the supply chain, the recovery was very fluctuating. So the domestic market was under stimulation of the national strategy. I think we are facing a lot of the challenges, but we have the stability I think it is the top principle, and we combined the allocation and stability. And we see the structural opportunities and seize the extra profits. I believe we made the very good performance. By 2025, the investment total amount was CNY 462 [ billion ]. On the allocation of the assets we want to go across the markets and the cycles and want to be diversified and so we make the best of the long term and the patient assets. So steadily, we enhanced the stability allocation. The total portfolio is very balanced. I think for the structure of the asset the fixed income is 48%, and equity is a 15% investment to associated company 5%. [ OCI ] is up 5.9%. I think the structure of the assets are getting better and the portfolio is more stable. Speaking of the fixed income the domestic market is well studied and to figure out the promising products. The bonds region is up a bit and the allocation is rather stable. We were flexible in using different strategies on the convertible bonds so that the income is enhanced. And we were facing the differences, the geographypolitical risks and to allocate the assets across the markets and currencies. So the profit margin, the profit level was up equity investments were centered on the [ Bell ] medicine and the new manufacturing power as well as AI. And we researched them well at the secondary equity we were and trying to complete the diversify into market allocation and we want to strict the balance the dividend-based investment is the foundation OCI has expanded for 50% more. We have the absolute return rate guarantee which are centered on the future promising products and industry and we want to have some extra profit. Alternative investment was adaptive to the changes of the market and respond to the national strategy, and we were actively joined in the leading form of the national and even [indiscernible]. So by doing so, we support the new quality of the productivity development and we attached the great importance of the capacity building and complete risk management and the empowerment of the technology. In 2025, we realize the total income was CNY [ 18 ] billion, up year-on-year, 4.2%, and the net profit rate was 1.4%. Our portfolio long-term return rate was consolidated in the secondary equity market, we see those opportunity of the structure, the comprehensive return rate was [ 28.18 ] it is up the industry average, that contributes some extra of the performance. That is the introduction of the asset management. I'd like to pass the floor to Mr. Zhuang for the outlook.

Now I'm going to talk about the outlook for our business. From the basic market situation, China's reinsurance and the insurance business is the crucial period to make up the weaknesses and realize the high-quality development. The Chinese economy is restructuring. There are a lot of the risks associated to that. Insurance and reinsurance are facing the market-driven opportunities and risks. I think in reinsurance is to design the very large remaining issues of this industry we are going to face the crucial development opportunities. Those opportunities include that the market competitive landscape is [indiscernible] the agent and the providers are getting more diversified and to the group is more complicated. So small and the media size of the service providers are trying to distinguish. Therefore, it poses the challenges on our operation the reinsurers. Second, the market -- the market risk demand is diversified. Our industry technology is diversified and China's companies are going abroad and climate change are getting intensified. As a result, we have diversified demand for the risk management Technology is developing faster. So the business model is transformed, AI and other cutting asset technology are approaching the development of the insurance business. From the traditional one to the digital-driven one. So that covers the cycles, and we need the whole cycle solution. [indiscernible] becomes the crucial production power and the management of the data is the crucial competitiveness for the insurance company. Number four, the regulation policy are getting the development of this industry into a healthy future. We have the well being finance and other policy guiding the development of this insurance business through the measured -- through the monitor of the leverage ratio, the market behavior is regulated and we have the latest regulation and the accounting principles that get the industry to shift from the size development to quality development. So we are facing a lot of the new developments we have carry on the size of the business and the stable investment, we need to have 5 commitments and to make the 5 breakthrough then we have the 5 breakthroughs then we can really make a good start of the 15th, 5-year plan and setting up a great future for our company. Specifically, we need to figure out a road map for the development. Second, that covers both the current business and the future and we will seize the opportunity including the directive insurance and the technology of the insurance, we will push forward the development of the transformation of business. We need to reform the operation and the incentive policies. Value development is the foundation of the KPI and [indiscernible]. So the creativity and the vitality will be released. International operation will be enhanced. International presence will be made. The management need to penetrate into different details and corners and the international operational capacity will be equipped with the international talent. AI will be used in detail in detail and in efforts, we need to enhance the governance of data. I will be used in a better way. So the digital operation capacity will be enhanced. We will continue to manage the risk comprehensively that covers the underwriting, claim and every steps of the business, we will see the best bottom line of the compliance. We need to develop our corporate culture. The transformation innovation should go together the value creation it will be the center, then we will come together joined hands and hands to make every resources, guide average resources to make our company at the top notch of the world. That's all the presentation part of this result announcement. Thanks for attending this meeting. And thanks for your attention and support to the company, the dear friends from the media and the investment field. Just now, the management just works through the 2025 results performance. Now it is the Q&A session.

[Operator Instructions] Now we invite the first question from the on-site participants. If you have questions, let us know.

First row, the lady.

Good morning. I'm from the Hong Kong Economic Daily. Thanks for the very good results. I have 2 questions. The first question is that in 2026, it is the first year -- it is the first complete year of the new management team. [indiscernible] starting year of the 15th 5-year plan and the company is very looking -- is looking forward a lot of the future development. I want to ask the overall idea of the long-term development as a whole Second question is related to the Middle East situation. It is rather intense and is that impacting the development of your overseas business as the most internationalized China Reinsurance Company have you considered to deal with the geopolitical risks and the related challenges?

Okay, good. Thanks for the 2 questions. The first question is about 2026, the strategic arrangement of 2026. I will take this question. The second question was about the Middle East and its impact to business. How should we deal with that? I will pass that question to Mr. Wang Zhongyao and Li Wei to answer that question. So begin with 2026 is the beginning year of the 15th 5-year plan we attached the greater importance to the overall arrangement of the development. At the beginning of the working meeting, and we published the 5 commitments and the 5 breakthroughs in our report, which area we are committed to develop. In the last 5-year plan, 14th 5-year plan, China Reinsurance made it clear that by 2035, we will develop ourselves as the top-notch comprehensive insurance company in the world. In the meantime, in the 14th 5-year plan, we redeveloped operation mentality operation idea of the company. If you follow our company closely, you know that we want to develop in large sites and develop in stability. So in the 5-year plan, we will continue the momentum. And we mentioned that in 2026, we have 5 areas to committed to. First, to be the top notch comprehensive insurance company of the world, that will not be changed. Secondly, we want to develop with the stability, yes. And that is -- this trend is maintained. Thirdly we will in still the correct ideas for the operation and the profit development. We were focused on the major business. Number five, we need to achieve the high-quality development at the same time with the high-quality development. Well, I think in 2026, what we need to do is we need to anchor these targets. We need to committed to those targets. Through the 5-year efforts by 2030, China Reinsurance Group will be developed in a very coordinated manner. The business model in development will generate clear results at different results we will have the very clear -- we will have a very clear idea. The operation and management method will be more effective, the global management and the digital capacity will be enhanced tremendously. So as a result, we can have the higher level of the value creation and make more breakthroughs. And in developing at the top notch of the world. We need to have the 5 commitments which are associated with the shared goal. We need to make 5 breakthroughs, right? The 5 breakthroughs means the breakthrough of the business. As I mentioned earlier that we need to figure out the free [ three ], road maps. That means to speed up the development of the reinsurance business and emphasize the function of the reinsurance and expands the key risk service like the digital-related service. Asset-related business will be enhanced more tremendous in a better way, risk will be better monitored and managed we need to differentiate. We will develop a differentiated mechanism. Technology will also develop into something new. That offers the empowerment to the service. we can meet the demand from the customer for the new -- for the coverage of the new risks. Secondly, the governance innovation, we need to play out the leadership of the market center and the development of the market culture and the corporate culture so that the management will be in high efficiency. So we need to play out the we need to make the best out of the existing Board of Directors has different subsidiaries to develop to mobilize their creativity. The mechanism will be something new as well. We need to build up the market-driven KPI under Brazil. So that it will be more efficient and the system will be much more efficient. And the management will be more scientifically driven as the measures will be better managed. Number four, the ability will be enhanced further. We will attach the importance of the global operation system and cultivate international people with international vision and the management so that the international level of the business will be enhanced and continue to improve our data-driven management capacity, AI will be used in our company in a better way and we will spend our efforts in developing our capacity of understanding the markets at the response rate again. We need to develop something new. We need to work together with the active global capacity, digital capacity and the market capacity are 3 areas to work on culture breakthrough. That means to continue to develop our corporate culture that brings us to the top notch of the world and to make the best out of the resilience and guide the staff to set up the correct mentality for operation and seize the opportunity and emphasize the value creation, and we are all we pursue the professionalism and contribute to the high-quality development and build up the [indiscernible]. Your second question is about the Middle East and its impacts to our insurance business. I'd like to pass the floor to the Director of Mr. Wang and Mr. Li.

Thanks very much for your questions. Speaking of the conflicts of the Middle East, [indiscernible] hot issues. Our company as the group, we have the very limited exposure there and the pressure of the sovereignty is really limited because we don't have any exposure in Iran. And for the exposure in the Middle East, it is rather low. We won't suffer from the material impacts. We will follow the development of the development and dynamically to adjust our idea. We will commit the belt under road initiative and support the Chinese business going abroad and make the best out of our leading position as the reinsurance service provider we analyze the different situation of different categories for the service. We have some exclusion criteria on the wall and the envisions. So that's kind of the damage will not be covered and so we won't suffer from that. For other business as insurance first, we don't really have any chances of the sinking boat, but we still need to monitor the covered the boat and the container boats. International markets Persian Gulf is the highly risk area. So some of the insurance might be excluded or will be covered by the high premium, so the risk will be reevaluated. The aviation insurance we won't have much damage like what happens during the Ukraine and Russian wall, the political risk, we are focusing on the spillover risks. In the Middle East, we faced some damage of the civil servants and the public facilities. For the export credit damage. We don't have any kind of the report, but in the long term, the supply chain will be impacted. There will be certain risk that requires the continuous attention. After the after the conflicts, we were really fast in responsing this kind of situation, and we were dynamic in adjusting our underlying strategy. For example, in [ Chaos ], we have the advantage in the political-related risk so we won't take any new customers to only provide the insurance business for a limited number of the customer, and we only quote our service price to a limited number of them, but this price will be up tremendously. Secondly, on the water risks, we have deregistered the previous or risks and the new risks are the risks are repriced only if the boat is anchored in the safe area, could we provide the coverage and this kind of the coverage is only within 7 or 14 days. So within 48 hours, the previous insurance can be canceled at any moment. So based on the different situation and information, and I found that generally speaking, the overall impact is really manageable, but the situation is still developing. There are a lot of uncertainties. If this kind of conflict is ongoing that will cause the price up of the different products like the crude oil and the inflation will be in initiated that will post some cost -- some cost risks for the insurance company. We will follow closely and take certain management measures. Geopolitical risks has already been crucial variables in the asset management. The Middle East changes post a lot of the situation that continues impacts the energy price. So it's has caused the ongoing effects. The 10-year U.S. dollar bonds is up to 4.4%. I think the fluctuation rate remains very high. Our overseas investments are mainly on the fixed income and high quality, the position related to Middle East were issued with the AAA insurer. So that accounts only less than 0.2% of the portfolio. The exposure is very limited. So the portfolio is rather manageable. The external situation is on is unpredictable, and we want to build up the systematic resilience. To build up the resilience, we need to shift our native focusing on the asset class to the strategy. So we need to maximize the hedging effects of different asset class. Secondly we need to consolidate the fixed income, both at home and abroad, we then will build up a group of strategies. Based on the recent performance, I think we are actively offset the fluctuation through the portfolio management. Thirdly, equity assets were directly impacting the flexibility and the income level, the optimization of the optimization of the equity. So we are focusing on the certainty made of uncertainties, and we want to build our strategy with 2 highly weighted portfolio, the 2 sides are really high-quality ones and in the middle are high-risk ones. So we want to build up the comprehensive risk management system that covers both home and abroad. The recent fluctuation reminds us to be more closely following the situation, will we use the scenario-based appraisal assessment and the press test to make sure the exposure are under management are under expectation.

Well, looking forward to the future, we will continue to developed with the stability and follow the changes of the geopolitical situation, especially on the macro situation and the major asset class. So the allocation will be flexible so the foundation will be stabilized. The risk will be managed well and the portfolio will be developed better. I think the situation is changing so far that we have the same in century, we are facing a new round of fluctuation. Geopolitical conflicts happens very often to diversify the risk. The insurance and the reinsurance company should not ignore one of the major risk source that is the geopolitical ones that impacts both the insurance and the investment business. Our company will be actively respond to the geopolitical risks. Here, I think I have 3 points to make. First, for the risk management, we will closely follow the changes of the geopolitical risks and be able to read the situation and predict the future. So we can complete our emergent response plan. Second, we will enhance the exchanges with the peers of this industry and understand the latest risk range, taking very targeted manner. Third, we need to understand that geopolitical risk is a risk in nature. So as a reinsurance company, what we need to do is to develop the related products and the management of those related products through our innovation and through the new service we can serve well of our direct insurance customer and also the companies behind the services. Though ourself we will strike the balance of the development and safety. Second question. Second question, the lady at the second row from the left.

Thanks very much for the opportunity from [ CICC Machining ]. Two questions. First, about the health insurance. Different authorities in the recent year launched the supportive policies for the last insurance. Your group has been doing this business for many years. And I want to know that in this recent situation, what do you think of the opportunity of the life insurance. Second, non-car business, I want to ask about [ Dadi ]. Well, non-car insurance has the new policy. And what is the implementation of the latest new policy, latest new policy.

Well, those 2 questions are related to the business and the products, I'd like to pass the first question to Mr. Tian. And second, is to Mr. Lei, who is in charge of [ Dadi ].

Life Insurance, I think it is really a popular topic of this industry. In 2025, the income of premium in this segment is around CNY 1 trillion, as [ 999-something billion ]. So this kind of the 2 percentage growth is a very small growth rate, but the total size is impressive. The growth were mainly driven by the medical insurance and disease insurance was dropping and this trend will be continued. So for the medical treatment insurance. There are 2 things to mention. First, individual the individual insurance and the terminal insurance, that's not merely a growth of new customers. It's more about the expansion of the existing business like the iteration, the development of the products Second, those policyholders are getting older, so their premium will be up. So the growth are mainly from the existing base of the customer. Another reason is from our property insurance, like the car combined, the human and the human users, so I think the growth is rather fast. Last year, the growth was 11% and I mean the health care insurance of the property company. So I think there are grid potential. Well, speaking of the claim for the damage, health care insurance, especially the medical treatment insurance business are really good because of the low claim rate you might find the mid data of this industry, it's 41%. This kind of claim rate is really good. That means the product is really profitable. So there is the double size sort the policyholder will not feel they are valued because of the market situation. So they won't fund the products appealing and their demand were pressed. So that is what we need to work on for the health care insurance products. That's the situation. So let's speak back to what should we think about the commercial medical insurance. I think the future will have a lot of the potential. Well, every time I speak with you guys in Hong Kong, the same questions were asked. So I think by this time, my answer will be similar with what I said before, but I need to make it clear that I believe there are a lot of opportunity for the commercial health care insurance products. first, I mentioned a lot of things before like the technology, like the policy and the ideas, all of those things has been mentioned. Second, the health care is experiencing the inflation deficit issues as one crucial part of the multilayer health insurance scheme, we need to play a larger role, third economic growth, the public is demanding for the high-quality health care service. Last but not at least, the most important thing is the combination of the social security system with these products and this kind of combination will be deepened. So it's sorted out what? Sorted out the demand of the customer. So well, as you mentioned that the national authority issued the Category B list of the medical products. So what does that list mean? The list means the policyholder as the patient in the hospital receiving the treatments, the have the accessibility of those listed medical products before they don't have really -- they don't have it. Now the authority offers this list, and it is accessible for the patient in the hospital, they can use it, they can get it. So the access, the demand issue for the public has been revolted. Well, gradually, I think the authority is incorporating with the commercial business. So after sorting out this business, I think the growth will be sorted out. In the meantime, we have issued the guidelines for the high-quality development. So this is the foundation. Secondly, for the industry development, the industry, life insurance, I mean, as we know, what we are selling now are mainly the saving based dividend distribution or the whole life premium annuities. So all of those things are not generating much profit from the premiums. Therefore, what should we do? Well, the capital market nowadays is really promising is really favorable. But I don't think the market will be always like this. There will be some ups and downs. So under those fluctuations, whether we could show the resilience, it mainly depends on the profit of the premium. That's why under this situation, we need to be diversified on the source of the income. We have a rather high premier profit and health care management is very important. It's a very important source of the new income. So I think that is a very crucial part. So in total, I believe the future -- it is a very crucial area of development. So our company attached great importance in the commercial health care. Our next step is to -- is to develop well of this business. So I'd like to be brief that I think the existing business should be managed well and because of the really good profit and the rather good claim rate. Second, we need to develop the products better and to give a better sense of the satisfaction and for example, we need to product -- we need to develop some products, for example, 1,000 subsidiary, 1,000 subsidiary for everyday stay in the hospital. Like the treatment nursery insurance. Well, we need to -- at this moment, this March, we have -- we just achieved the latest insurance that covers only the basics. For example, 50% of the claim rate for premium income of 70,000 to 80,000. It does make any sense that we are incorporating with the national health care scheme, and we have done a lot. We have done a lot, and we need to incorporate with the medical business and setting up the system with Chinese characters. Well, all of those things means we will make more efforts in the commercial health care insurance. That's all my answer about your commercial health care products.

Another question you asked about the non-car insurance. How is the implementation of the latest policy? We are actively in implementing the guidelines from the [ NDRC ]. We have done 2 aspects of the business. First, we set of the special mechanism and the committee work team because of the complexity of this work among those non-car healthcare insurance products, we need to go through all of them. That includes the training and the coordination with related organizations and it also includes the cooperation with different channels. So it's very complicated, but the progress is pretty good. And it's in line with the expectations. So far, I think we have done the preparation. We have done the application process. The employees' liability insurance, all the products have done its reapproval and launch online -- launched again and some of other products are still doing the terms and conditions organization, I think it's in line with the expectation. To answer your question about the implementation situation. Second is about the impacts of the profitability, the market expecting this is expecting this comprehensive management of the non-car insurance. Well, this new products is bringing something new. Our understanding is that it will definitely level up the efficiency, profitability, especially on optimizing the sales cost. Of course, I think those impacts, how much of the impact will be, it depends on we need to take -- spend a bit more time. The cost includes both the sales cost and the cost [indiscernible] and the traffic collisions. So I think it will be positive, but how much it will be developed, how much it will be promoted. We are not yet understand. We don't know yet. I think for the employees' liability and the corporate assets insurance for long term, when the market gets to be more reasonable, then the change is more visible. We also have individual I believe it will have some positive changes. That's all about the non-car insurance comprehensive management.

Now I pass the floor to the online investors -- online analysts. A question from the participants from the tele-meeting. [Operator Instructions]

[indiscernible] from Shanghai Securities Daily. Have you first, about the equity assets, you have more possibility to allocate your equity. What is the strategy for 2026? Second, international internationalization efforts, what is your plan for being more internationally? And do you have the M&A opportunities?

Two questions. The first is related to the strategy of investment in 2026. After this, I'm going to cover the international efforts question.

Thanks very much for your question. Strategy it depends on what do we think of the market situation? Second, it's about the allocation and the category of allocation. This year is the first year of the 15th 5-year plan. I believe from industry currency and the policy as a financial policy. It is very clear that the stabilization of the development has been consolidated and the foundations are getting better. The confidence is also getting better under this kind of the situation, the situation is getting more flexible. It's more fluctuating. And we are showing the policy resilience and our stability. So once we have a more stable, and this is better to have -- it's better to give us a good foundation. We have the external structural challenges. As I mentioned that we have the geopolitical risks and the changes of the energy price. So I think the major -- the currency price -- currency policies of the major economies are really different domestic situation, the domestic on balance of supply and development and to industry takes a bit longer time to recover its balance sheet. So generally speaking, I think in 2026, there were a lot of the uncertainty and this fluctuation will be enhanced, and we will be more we need to face the uncertainties through certainty. In 2026, we will commit to be more stable and test. And as -- we need to make the best out of the development through this active management, we can manage our -- we can implement the national strategy. So to be specific, the first point is on the allocation of the assets, we need to optimize the structure and the framework and upgrade our system and we will definitely give new deficits for the existing portfolio and try different strategy. So make it clear that the management of the portfolio so that we can move from the allocation -- we can move from the allocation of the assets to the allocation of the strategy. So through this -- by doing this, we can enhance the stability. Second, the trading is combined with allocation. Fixed income, as we know, the interest rate in the domestic market will remain at the very low. Probably we need to seize the opportunity of the cash flow and actively optimize our structure and make our financial structure adaptive, and we will explore the ABS and risk opportunity the trading mechanism will be more multiple -- will be more multiple model driven because of this kind of situation. I believe the U.S. dollar bond rate will be fluctuating, and we will give a very stable, by the right chance we will allocate better credit risks. And so that we can have a more diversified source of income so that we will be more resilient to the risks. On the secondary equity, I think the market is fluctuating structure feature is showing up. So we need to combine the market situation and make the portfolio healthy. So we can have a -- we will take this opportunity and expand the OCI and enhance the foundations. On the other hand, we need to develop, find the certainty. Through this, we can offset the fluctuation of the market, the for the alternative investments, we need to seize the opportunity offered by the 15th 5-year plan and the first on the new industry and to be more visionary to invest in the major areas and seize opportunity in the early time, and then we can create the stable incomes so that we can really empower the development, we need to make the difference through investments under this kind of changes. And it is I believe we will continue to develop our institutional capacity and enhance the empowerment from the technology through the research, we can enhance the results through this we can have a better management. So we can manage the liquidity, safety and go through the cycles.

Thanks very much for your attention to the international development of our company. Reinsurance is actually the insurance of the insurance company is to cover the special risks and the emerging risks and complicated risks. I think this kind of the diversification covers different countries. That means to reallocate the risk from China to the offshore area. And it also means to join in the global special risks. So I believe reinsurance has the international and global features from the very beginning at different country at different places. That is the case. As the as a market long player, as a long player after joining the WTO, we opened up this niche area. At that time, it was rather -- it's better to open up the insurance industry at the first place. The international development has achieved rather good results in the recent years. As I mentioned earlier, like what I said just now, last year, we were recommended by the regulators to Switzerland to join in the recognize us as the only one active insurance company in the Mainland China. Secondly, the premium size, the premier scale and was 18.2%. So I think -- this kind of the percentage makes us as the most international financial institutes among all the rest of the Chinese institutes. So that accounts to other long time international development of such, for example, we had the office in London and Hong Kong and New York many quite long ago. As you mentioned, and our M&A. So I think in the past 20 years, our Reinsurance Group has achieved a rather good results, well, what the absolute -- the value is around [ CNY 3 billion ] for 2 years, all of institutes we had net profit. And it's not that easy to make it. In Singapore, -- we -- and in Hong Kong, all of those institutes are making profits are recording positive results. In 2026 and the 15th 5-year plan or even longer term, international efforts is definitely our way forward. Probably, we need to do a couple of things. So for the international business development -- business development markets create products, innovation I think on this, we are really positive. As you mentioned, we have the geopolitical risks and war risks and marine time risks and political crisis risk -- if you -- if you don't join in the international markets, you don't really know what was going on. So China, I think, as an instant and Chinese institute, we are definitely the most experienced one, but we still need to learn more. I think for some other insurance cap that haven't been available in the Chinese market if the development of China requires that kind of the service, we will definitely tap into that area, and we have to make the best out of the market and setting up the right example. International efforts for the institutes means we need to develop the prudent -- we need to develop that prudentially. We won't develop plenty, we won't develop for internationalized as the sake of being international, we have international office at major international financial hubs, like in [ Lending ] in Hong Kong, in Singapore, and Bermuda. We all have -- we have our offices in all of those places. So those offices are already there. So it's not about being international for being internationalized. We need to be smart in managing those -- the network of our stores. This is the first question about the development. The second question is about the management of the international operation. Well, speaking of internationalization, it is easy to speak about it, but what is more important is the operation under the management of the international that requires the professional knowledge, professional expertise and even the professional understanding of different aspects. So this is definitely what we need to do in the next step. Thirdly, we need to make the foundation correct. What does that mean? That means we need to learn from our self, from the past. And well, but we still need to learn something from our peers, and we are not yet perfect in the 15th 5-year plan we will cultivate the international talent, the people with global visions. We will definitely recruit the talents from far from different backgrounds. So that we can attract the talent from all works of life to joining our company to help the development. So I think international efforts development will definitely what we need to do. Just now you mentioned that overseas M&A, in the 15th, 5-year plan, what we need to do is to make the best out of existing network, we won't be progressive in M&A for the overseas. While the term is rather long. We need to seize this opportunity, but I think by the end of this year, at the proper time, we will see some opportunity for the overseas development. By that time, if we have this kind of arrangement, we will definitely disclose that information according to the governance regulation, of course, we will definitely do the regulations with the relevant to investors. As the interest of the time, probably this is the last question. The last question will be from the online investors -- the on-site investors. The lady.

Thanks very much for this opportunity from UBS, [ Jessica ]. I have 2 questions. First is about the net profit. As I noticed that in excluding one-off factors, the growth rate is really stable, and you enhance the dividend payout? And what do you think of the -- under the new accounting principle will the company take a more positive dividend payout policy. Second, as we noted that the new energy companies are going abroad. So I want to ask that, do you think -- what do you think of the overseas market situation?

You have 2 questions. The 2 questions. One is about the net profit and the dividend payout. I'd like to answer this question -- pass the question to Mr. Pan.

Second, about the new energy car going abroad. In 2025, the profit, as you see, excluding the one-off factors, the 2025 profit was rather good. And in 2026, what will be the profit aspiration. I think in the new accounting principle, the service performance and the finance performance are the 2 major areas. For the long term -- for the short-term perspective, in 2026, the profit of the premium is really stable. Second, our overseas business is the major contributor of our profit. Though the international property market is dropping its profit the profit is dropping, but the efficiency. The efficiency level is still very high. So I believe in 2025 -- after 2025, 2026 will be stable. Second, for the reinsurance of the property, you might find that the combined claim rate is really good. The [ Dadi ] is our direct insurance business. we consolidated our foundation of the reserve fund. The performance in 2026 will be better. So I think it is promising and it will be there will be some chance to recover, to get better. So for the long term, I think it's more related to the disaster insurance. In 2026, we will do some adjustments. Those adjustments will bring a difference to the profits of 2026. Secondly, in 2026, the market profit will be stabilized. I believe it will be stable again. So I think, as I mentioned that in 2026, our savings business was positioned as the profit-making business, but now it is a value creation business. That means the loss will be reduced, and we won't have any loss reduction. So I think the service performance will also be better. So 2026 in long term, it will be getting better. In 2025, the return of the investments will be 17.5. So I think that the actual cost of the business is just around CNY 5 [ billion ] so in total, the cost is rather low. It is -- the total cost ratio is just 1.2%. So that's based on -- if we carry on and excluding those factors, it will be better. So the resilience is really great. I think our company has this kind of a feature that we won't be so weak. And even we can't be so good, that is the features of our company. Second, about the financial performance. In 2020, our -- speaking of the cost, it is rather positive. In 2026, it's more about the fluctuation of the investment. I think we have a very stable portfolio of the income, the equity market is fluctuating. It's impacting our performance, and we expand the OCI combination so in total I think the return of the investment is really stable. And the secondary impacts -- the secondary impact of the equity is really limited. In 2026, I think the net profit will be promising, and we are confident to deliver that target. And speaking of the future dividend, I believe the dividend policy will be stable. And from -- after listing from 2015, and we have the payout ratio around 30%, if not higher.

Well, secondly, we will definitely level up the performance of our operation Well, just now [indiscernible] mentioned that in 2025, we will have -- we will have the dividend 0.01695 is up 38% and the dividend ratio is around 5%. I think it's rather high. In the future, I think we will definitely level our performance and create better returns for the investors. I think the -- it's speeding up for the Chinese EV going abroad. I think there are 3 drivers. First, the industry is growing up in 2025, the Chinese EV export is around CNY 3.5 billion in 2026 as you mentioned that because of the conflicts and the in some emerging countries, the sales of the EV is getting up. So I think the brands -- Chinese brands is getting more recognized. That means we're -- our EV goes, we have the insurance -- so EV has its own features like the smart system as the charging system. So all of those things means for the overseas insurance company, they are having this kind of a challenge because they don't have this kind of insurance. So that gives us the competitive advantage because we have this experience and we have the accumulation of the experience and they can then see this opportunity of the market. Second, the policy is driving forward company supports a lot of the Chinese new energy company to go abroad. We are serving the real economy, it is our mission. So we have to serve the expansion of the overseas to the Chinese market, and we need to support them. That means that for the insurance industry and the China's reinsurance company, it is our mission have to take shorter responsibility. Third, it is the market. The market of the insurance is very competitive, and the competition is highly saturated. The overseas market offers the potential the new development. As we know that some top players are going abroad and they are looking forward the new growth points. So the first overseas -- in the Southeast Asia market and the North and some other places. In this process, I think the robust opportunities and the challenges. I think the challenges are mainly a couple of them, first, data challenges, the difficulty of getting the data at the overseas market, all of the data we accumulated from the domestic market will not be comparable I think we have the major differences. So we need to have the precise pricing but we have the challenges on that. Second, for the overseas regulation and system are different, and the policy are quite different from place to place. The network of the service, EV requires the professional repairments, it takes a long time to do that. So we need to figure out how to have a good service system and how to manage well of the repairments cost. It is the challenge. Number four, the EV has its unique risks because of the electricity system, the battery system and the smart network. All of those things are related to the smart -- to the Internet safety and many other things. So China Reinsurance as the national team of this business, we are looking forward to empower those companies to go abroad and to support really relevant industries. We've done a couple of the things. The first is to develop the platform of the data, we are facing to develop [indiscernible]. We want to get together the different data to understand the situation to develop better -- a better system so that we can have -- secondly, we want to develop the network. And through the overseas market, we can have a better system, we can have to understand the market and seize the opportunity. Thirdly, I want to develop the latest plan for risks so that we can have the teller making platform and help the direct insurance company to develop our capacity and to transfer part of the risk so that the direct insurance could have the stable operation. Last but not at least, I hope we can set the standard. On behalf of China, we have a very good experience we have on the claiming and the underwriting, this kind of the sound practice that should be transferred to overseas countries, and we want to support the EV going abroad and also let the world to accept the Chinese standard or China Reinsurance companies standard so that we can have the international recognition. So that's all what I want to say.

As the interest of the time, this is the end of the Q&A. Also, this is the end of the result announcement. Starting from 2015, getting listed from that time, we received a lot of the support and attention from the investors and analysts. On behalf of the management team, I'd like to express my gratitude for that. We attached the great importance of the interaction with the management team and with Capital Markets, we will connect with the investors, both at home and abroad, including Hong Kong. We will listen to you closely and support the long-term quality development of the company and continue to return to the investment. This is the end of the 2025 China Reinsurance Group results announcement. Thanks for coming. Thanks for all the media friends, investors and analysts. If you have some unaddressed questions or some follow-up questions, please reach to the IR department of the company. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]