China Pacific Insurance (Group) Co Ltd has disclosed its cumulative premium income for the first 11 months of 2024.
The company emphasised that the figures are unaudited. It advised investors to interpret the figures with caution.
The group’s life insurance subsidiary, China Pacific Life Insurance Co Ltd, generated RMB 228.842 billion in premium revenue for the first 11 months of 2024, marking a 2.2% increase compared to the same period last year.
This increase in revenue comes as global life insurance premiums are expected to grow at an annual rate of 3% in 2025 and 2026, surpassing the growth rate seen over the past decade, according to Swiss Re’s latest sigma report.
The expected global life insurance premium revenue is driven by rising real wages, higher interest rates in major markets, and demographic shifts, including aging populations and the rise of the middle class in developing economies.
Swiss Re’s report highlighted a surge in demand for savings products, particularly in China and the US. Focusing on China, declining guaranteed interest rates for savings products have driven strong sales, with the trend expected to persist as consumers prioritise long-term financial planning.
Additionally, the life risk protection market is projected to grow at an annual rate of 2.7% over the same period, slightly below its historic growth rate of 3.7% per year from 2014 to 2023. This segment is less affected by interest rate fluctuations due to its slower re-pricing cycles.
The group’s property insurance subsidiary, China Pacific Property Insurance Co Ltd, achieved RMB 187.033 billion in premiums for the first 11 months of 2024, reflecting a 7.0% year-on-year rise.
This milestone reflects the Asia-Pacific property insurance market’s performance, set to grow from US$92.3 billion in 2023 to US$141.8 billion in 2027, according to findings by GlobalData. This represents a compound annual growth rate (CAGR) of 11.3%, driven by increased demand for coverage against natural disasters, infrastructure development, and regulatory initiatives.
The region’s top three markets – China, Japan, and Australia – account for a significant share of this growth, with China holding 35.3% of the region’s property insurance premiums in 2023.
China’s market is projected to grow at a CAGR of 14.4% over the next five years, supported by greater demand for catastrophe insurance and regulatory changes favouring market expansion.
Parametric insurance, initially popular in agriculture, is expected to expand into other sectors in China, providing cost-effective protection against disaster-related risks.
