China Pacific Insurance after tax profit rose a healthy 54% in the 2019 financial year.
FY 2019 net profit climbed to Rmb27.74 billion (US$3.91 billion) as investment income grew 31% due to increased gains from securities trading, the company revealed to the stock exchange over the weekend. In addition the Shanghai-headquartered firm benefited from tax savings.
Net premiums increased to Rmb313.3 billion (US$44.2 billion) in FY 2019 from Rmb299.7 billion (US$42.3 billion) in FY 2018, bringing total FY 2019 income to Rmb382.7 billion (US$54 billion) compared with Rmb353.1 billion in the previous year.
However, the company has warned of risks for the business in 2020 from the coronavirus pandemic and a slowing Chinese economy. The company said low interest rates amid a macroeconomic slowdown was a key concern for the market, while the slowdown may worsen credit and liquidity risks.
CPIC is still evaluating the impact of the coronavirus pandemic on its financial position and operating results. However, the virus should help with an increase in digital purchases. With the overall number of cases rapidly declining in China, this should help boost economic activity and see an economic recovery in the second quarter.
In another potential positive, there is likely to have been a large decrease in the number of motor accidents over the last eight weeks as the government implemented strict social distancing measures.
CPIC declared a final dividend of Rmb1.20 a share while its share price declined 2.5% in morning trading on March 23.
The financial year runs from January 1 to December 31.

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