Live Coverage of the Earnings Conference | China Reinsurance's General Manager Wang Zhongyao: The overall direct risk exposure in the Middle East is relatively low

The Daily Economic News Reporter｜Yuan Yuan    The Daily Economic News Editor｜Du Yu

On March 31, China Reinsurance held its 2025 annual performance briefing. At the briefing, the company’s management responded to the impact of the Middle East military conflict on its insurance business.

In 2025, China Reinsurance’s combined total premium income was RMB 180.37B, and combined insurance service revenue was RMB 103.09B; net profit attributable to shareholders of the parent company was RMB 9.72B, up 38.4% year over year.

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It is understood that China Reinsurance’s overseas property reinsurance business mainly includes non-water risks, special risks insurance, liability insurance, etc. The business portfolio is mainly short-tail business. In addition, China Reinsurance also directly controls the UK Bridge Society Insurance Group through acquisitions, and the company also contributes to China Reinsurance’s overseas business. Data show that in 2025, Bridge Society achieved total premium income of RMB 8B, up 7.9% year over year; insurance service revenue was RMB 24.02B, up 11.3% year over year. The combined cost ratio was 78.52%, down 5.37 percentage points year over year. Return on economic capital was 18.1%.

Precisely because China Reinsurance’s business is highly internationalized, the market is very concerned about whether the Middle East military conflict will affect its business. At the performance briefing, the management of China Reinsurance also responded. “The company has no risk exposure in the Iran region. The overall direct risk exposure in the Middle East is relatively low, so in the short term it will not have a substantive impact on the Group’s overall claims side.” Wang Zhongyao, general manager of Sinore Reinsurance Property Insurance, said that after the outbreak of the conflict, the overseas business platforms took necessary underwriting and risk-control measures immediately, and are prepared to continue adjusting underwriting strategies based on how the situation develops. After initial and comprehensive assessment, the overall impact is controllable.

However, Wang Zhongyao also said that if the conflict expands or becomes prolonged, leading to a sharp rise in international oil and fertilizer prices, thereby pushing up inflation, it would indirectly affect the trend of the international insurance and reinsurance market. The company will continue to track developments in the conflict and potential losses, and dynamically做好 risk responses. At the same time, the company will be guided by the Belt and Road Initiative, continue to follow up on the security needs of Chinese-funded companies going overseas, and leverage the role of reinsurance as a “national team.”

As for the investment side, Li Wei, Chief Investment Officer of China Reinsurance and Chairman of Sinore Asset, said that in the face of an external environment with high volatility and strong uncertainty, China Reinsurance has always adhered to a steady and prudent asset allocation, focusing on building systematic investment resilience. In addition, it will continue to improve a comprehensive risk management system covering both domestic and overseas operations. With recent market volatility increasing, it will further strengthen the frequency of risk monitoring and assessment, use dynamic evaluations such as stress testing and scenario simulation, and ensure that risk exposures of all types remain generally controllable. At present, the overall portfolio is running steadily, and risks are within a controllable range.

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