China Property and Casualty Reinsurance Company (China P&C Re), the property and casualty arm of Hong Kong-listed China Reinsurance (Group) Corporation, posted net profit of 76.4 million yuan for the first quarter of 2026, with fair value losses on its investment book taking a sizeable bite out of an otherwise steady underwriting performance.
The unaudited figures were released on Tuesday under regulatory requirements tied to two 4 billion yuan tranches of capital supplementary bonds, traded on the National Interbank Bond Market with quarterly reporting routed through China Money and the Shanghai Clearing House.
Parent China Re posted a first-half 2025 net profit of 6.6 billion yuan, up 11.4% year on year, based on its interim disclosures, providing a stronger group-level backdrop against which the latest quarterly reading should be read.
Operating income reached 6.58 billion yuan in the quarter, of which insurance revenue made up 6.22 billion yuan. Investment income contributed 541 million yuan and interest income a further 367.9 million yuan.
Operating expenses totaled 6.53 billion yuan, weighted toward insurance service costs of 5.90 billion yuan. The reinsurer ceded 1.25 billion yuan in premiums and recovered 1.04 billion yuan from retrocessionaires.
Fair value changes produced a loss of 545.3 million yuan, with foreign exchange movements adding a further 31.3 million yuan drag. The company did not attribute the fair value hit to specific drivers.
The broader market backdrop, however, was choppy. China's 10-year government bond yield slid to 1.73% by late April, its lowest since August 2025, while the 30/10-year spread widened to a four-year high amid heavy long-dated issuance.
Yield curves shifted markedly through the first quarter, with rates falling from December into late February before climbing sharply in March.
Chinese insurers have separately flagged that under HKFRS 9 and HKFRS 17, net profit is more exposed than before to capital market volatility, a structural feature likely to amplify quarterly swings across the sector.
Operating profit came in at 47.8 million yuan and pre-tax profit at 47.4 million yuan. A tax credit of 29.0 million yuan lifted net profit to 76.4 million yuan. Other comprehensive income added 336.9 million yuan, taking total comprehensive income to 413.3 million yuan.
Total assets stood at 94.11 billion yuan at the end of March, dominated by financial investments of about 63.6 billion yuan. The largest buckets were holdings at fair value through profit or loss (24.97 billion yuan) and debt instruments at fair value through other comprehensive income (24.47 billion yuan).
Liabilities reached 67.22 billion yuan, with insurance contract liabilities the dominant line at 45.97 billion yuan. Owners' equity closed the period at 26.89 billion yuan, with the reinsurer holding a catastrophic loss reserve of 195.3 million yuan and generic risk reserves of 2.02 billion yuan.
