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

Ask AI · How Will the Widening Middle East Conflict Affect China Re’s International Premium Income?

Per Daily Finance reporter: Yuan Yuan · Per Daily Finance editor: Du Yu

On March 31, China Re held its 2025 annual results briefing.

At the briefing, the company’s management addressed how the Middle East military conflict affects insurance operations.

In 2025, China Re’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.

This image appears to be an AI-generated image source: Per Daily Media Resource Library

It is understood that China Re’s overseas property reinsurance business mainly includes non-water-related lines, special risks insurance, liability insurance, and more. The business mix is mainly short-tail lines. In addition, China Re also directly controls the UK Bridge Society insurance group through acquisitions, and that company also contributes to China Re’s overseas business. According to data, in 2025, Bridge Society achieved total premium income of RMB 24.02B, up 7.9%; insurance service revenue of RMB 22.3B, up 11.3%. The combined cost ratio was 78.52%, down 5.37 percentage points year over year. Return on economic capital was 18.1%.

And it is precisely because China Re’s business is highly internationalized that the market is paying close attention to whether the Middle East military conflict will have an impact on its operations. At the results briefing, China Re’s management also responded. “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 have a substantive impact on the Group’s overall claims side.” Wang Zhongyao, general manager of China Re’s property and casualty insurance unit, said that after the outbreak of the conflict, each overseas business platform took the necessary underwriting and risk-control measures immediately, and is always prepared to continue adjusting underwriting strategy according to developments in the situation. Based on an initial comprehensive assessment, the overall impact is currently controllable.

However, Wang Zhongyao also said that if the conflict expands or becomes protracted, leading to a major surge in international crude oil and fertilizers prices, thereby pushing up inflation, it would 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 focus on the Belt and Road Initiative, continuously follow up on the security/coverage needs of Chinese companies going overseas, and play the role of a “national team” in reinsurance.

As for the investment side, Li Wei, Chairman of China Re Asset Management and China Re’s Chief Investment Officer, said that facing an external environment with high volatility and strong uncertainty, China Re has always adhered to prudent and stable asset allocation, focusing on building systematic investment resilience. In addition, it will continue to improve a comprehensive risk management system covering both within and outside the country. Recently, market volatility has increased further, so the company will enhance the frequency of risk monitoring and assessment, use dynamic evaluations such as stress testing and scenario simulations, and ensure that risk exposures of all types remain generally controllable. At present, the overall portfolio is running smoothly, and risks are within the controllable range.

Daily Economic News