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

Each Daily Reporter｜Yuan Yuan    Each Daily Editor｜Du Yu

On March 31, China Reinsurance Group 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 Group’s combined total premium income was RMB 180.368 billion, and combined insurance service income was RMB 103.087 billion; net profit attributable to shareholders of the parent company was RMB 9.722 billion, up 38.4% year over year.

Image source: Each Daily Media Asset Database

It is understood that China Reinsurance Group’s overseas property reinsurance business mainly includes non-marine lines, special risk insurance, liability insurance, and others, with its business mix mainly focused on short-tail lines. In addition, China Reinsurance Group also directly controls the UK Bridge Society Insurance Group through acquisitions, and the company also contributes to China Reinsurance Group’s overseas business. Data show that in 2025, the Bridge Society achieved total premium income of RMB 24.023 billion, up 7.9% year over year; insurance service income of RMB 22.298 billion, up 11.3% year over year. Combined cost ratio was 78.52%, down 5.37 percentage points year over year. Return on economic capital was 18.1%.

It is precisely because China Reinsurance Group has a high degree of business internationalization that the market is very concerned about whether the Middle East military conflict will affect its business. At the performance briefing, the company’s management also responded to this. “The company has no risk exposure in the Iran region. The overall direct risk exposure in the Middle East is relatively low, and in the short term it will not cause a material impact on the Group’s overall claims side.” Wang Zhongyao, general manager of CCB Insurance, said that after the outbreak of the conflict, each overseas business platform took the necessary underwriting and risk-control measures at the first time and is ready at any time to continue adjusting underwriting strategies in line with developments. After preliminary comprehensive assessment, the overall impact is controllable.

However, Wang Zhongyao also said that if the conflict expands or becomes prolonged and leads to a large rise in international oil, fertilizers, and other prices, thereby pushing up inflation, it will indirectly affect the trajectory of the international insurance and reinsurance market. The company will continue to track developments in the conflict and potential losses, and dynamically manage risk response. At the same time, the company will be guided by the Belt and Road Initiative, continue to follow up on the protection needs of Chinese enterprises going global, and play the role of the “national team” in reinsurance.

As for the investment side, Li Wei, China Reinsurance Group’s investment director and chairman of CCB Asset Management, said that facing an external environment characterized by high volatility and strong uncertainty, China Reinsurance Group has always adhered to a steady and prudent asset allocation approach, 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 market volatility increasing recently, 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 are generally controllable overall. At present, the overall portfolio is running smoothly and risks are within the controllable range.

Cover photo source: Each Daily Media Asset Database