At China Taiping's interim results presentation for 2025, Taiping General Insurance delivered an impressive mid-year performance: the combined ratio remained consistently below 97% from February onwards, ultimately settling at 95.5%, representing a 1.5 percentage point improvement compared to the same period last year. Underwriting profit reached a historic high, with insurance service revenue of 15.78 billion yuan increasing 4.3% year-on-year, and net profit of 630 million yuan surging 87.6% year-on-year, achieving significant improvements across multiple core operational indicators.

From an industry perspective, Taiping General Insurance's cost optimization results are particularly notable. Research indicates that in Q1, PICC, Ping An, and CPIC's combined ratios were 94.5%, 96.6%, and 97.4% respectively, with the industry's overall Q1 2025 combined ratio at 96.7%, marking the lowest level in five years for the same period. Based on Q1 data, Taiping General Insurance's combined ratio outperformed the industry average by 1.2 percentage points. According to disclosed H1 data, Taiping General Insurance closely followed industry leaders, demonstrating strong momentum in catching up with market leaders.

Industry experts note that "it's worth highlighting that Taiping General Insurance's cost improvements were achieved against the backdrop of deepening auto insurance reforms and rising claims pressure from new energy vehicles, demonstrating undeniable counter-cyclical capabilities."

Taiping General Insurance's H1 performance breakthrough was not coincidental, but resulted from refined cultivation across the entire business chain and strategic implementation. Addressing analysts' questions about "reasons for improved combined ratio and future profitability outlook," Zhu Jie, Vice President of China Taiping and General Manager of Taiping General Insurance, provided detailed explanations during the results presentation and outlined development paths for H2.

Zhu Jie indicated that the company, guided by the group's high-quality development strategy and oriented toward efficiency with professional support, achieved significant operational quality improvements through four major initiatives.

**First, Business Quality Optimization: Structural Upgrade + Risk Prevention, Continuously Increasing Quality Business Proportion**

On the business front, Taiping General Insurance adheres to "value orientation," strictly controlling risks at the entry point while promoting business structure shifts toward high-yield areas. On one hand, the company strengthened product management and pricing model optimization, enhanced risk customer screening, and reduced underwriting risks from the source. On the other hand, it focused on transforming loss-making products, expanding profitable product contributions, and steadily increasing quality business proportions.

Data shows that auto insurance renewal rates increased 2.1 percentage points year-on-year in H1, further strengthening customer loyalty. The non-auto insurance segment performed exceptionally well, with profitable personal insurance premiums growing 9.5% year-on-year, agricultural insurance premiums reaching 690 million yuan with a 33.9% surge, and new energy vehicle insurance premiums of 1.66 billion yuan growing 28% year-on-year. Non-auto insurance's overall premium proportion increased to 38.9%, with significant "streamlined" business structure effects.

**Second, Expense Management Upgrade: Full-Process Reduction + Targeted Investment, Combined Expense Ratio Down 1.7 Percentage Points**

Under strong industry regulation and increasingly rational competition, Taiping General Insurance integrated "cost reduction and efficiency improvement" throughout expense management processes. The company strengthened professional channel development, reduced unnecessary market expenses, and improved precision and effectiveness of expense investments. Additionally, it strictly controlled fixed expense budgets and established comprehensive expense ratio benchmarking mechanisms, driving continuous cost optimization.

Ultimately, Taiping General Insurance's combined expense ratio decreased 1.7 percentage points year-on-year in H1, with expense-side "cost savings" and business-side "revenue generation" creating synergy to further expand profit margins.

**Third, Claims Efficiency Enhancement: Technology Empowerment + Thunderbolt Operations, Loss Ratio 3.1 Percentage Points Better Than Industry**

As claims represent the "critical gateway" for property insurance profitability, Taiping General Insurance improved management efficiency through dual-driven "technology + mechanism" approaches. In risk prevention, the company strengthened risk reduction management, improved catastrophe warning, prevention and rescue systems, built risk reduction information systems, and proactively identified high-risk customers for remediation. In claims execution, it advanced comprehensive claims operations across all insurance types, three-tier institutional group property operations, and claims team integration.

The company conducted intensive claims "thunderbolt operations," maintaining high-pressure attitudes against fraudulent claims and eliminating claims inflation. Through these measures, Taiping General Insurance's combined loss ratio outperformed industry averages by 3.1 percentage points in H1. Despite facing multiple rounds of typhoons, heavy rains, and other meteorological disasters during the year, the company's advance warnings and emergency responses limited disaster-related estimated losses to only 130 million yuan as of August 25, without significantly impacting overall profitability.

**Fourth, Process Management Reinforcement: Key Project Implementation + Risk Control, Maintaining A-Grade Regulatory Rating for Six Consecutive Quarters**

To ensure profitability target achievement, Taiping General Insurance refined operational management to "every link": implementing 48 key underwriting profit projects annually, conducting "optimize one point, all-staff action" initiatives, and promoting coordinated improvements across business lines. The company also improved risk control systems, strengthened key area risk management, and enhanced business risk control levels.

This prudent operational approach gained regulatory recognition, with Taiping General Insurance maintaining A-grade regulatory risk ratings for six consecutive quarters, providing solid compliance assurance for sustained profitability.

**H2 2025 Outlook: Anchoring "Quote-Policy Consistency" Opportunities, Continuously Consolidating Underwriting Profit Advantages**

Regarding H2 2025, Zhu Jie stated that the industry will face a new environment with strengthened auto insurance "quote-policy consistency" and accelerated non-auto insurance "quote-policy consistency" rollouts, presenting both challenges and opportunities for Taiping General Insurance to deepen its advantages.

Taiping General Insurance will continue optimizing business structures, deepening comprehensive cost and process management, advancing intensive and professional claims management across all insurance types, implementing disaster prevention, reduction and relief measures, and maintaining sustained underwriting profitability.

"Taiping General Insurance will always prioritize efficiency with professional support, consolidating profit advantages amid industry standardized development trends and contributing greater strength to the group's high-quality development."