Earnings Call: Q4 2023

Mar 27, 2024

Ladies and gentlemen, good afternoon. Welcome to PICC P&C 2023 annual performance results conference. This meeting will be broadcasted. We are also honored to be joined by Madam Liu Suilan, Secretary General, and Li Honghai, Secretary General of Beijing Branch, as well as directors, representatives, as well as investors, analysts, panelists, and media representatives. In Hong Kong with us are the Chairman of the company, Mr. Wang Tingke, and Chairman of the China PICC P&C. We have a big round of applause for Mr. Wang. Mr. Yu Ze, Vice Chairman of the group, and President of PICC P&C. In Beijing, we have Mr. Zhao Peng, Vice Chairman and President of the group. Mr. Xiao Jianyou, Director, Vice President, and President of PICC Life. Mr. Huang Benyao, the President elected for PICC Asset. Mr. Shao Lidu, President of PICC Health. On today's agenda, Mr. Zhao Peng will introduce the business performance, and we will have presentation afterwards. It should be noted that the data presented in Mr. Zhao Peng's slides are consistent with China Accounting Standards and are different between China Standard and International Standard, and detailed in great detail. The slides can be downloaded from our company website. I'll give the floor to Mr. Zhao Peng for our business update. Good afternoon. Thank you so very much for attending the 2023 results announcement. In the year 2023, the company implemented the spirit of the 20th CPC National Congress, and the Central Economic Work Conference adhered to the general principle of pursuing progress while ensuring stability. Insurance revenue reached CNY 503 billion, a 0.5% original premium income reached CNY 661 billion, an increase of 4.1%. Retained amount of profit in 2023 Net profit attributable to the equity holders of the company was CNY 2.6 billion, a remaining 8.8%. Net assets to the equity holders amounted to CNY 243 billion, an increase of 8.8%. Combined ratio went to 97.6%, continuing to outperform the industry. 11 Health net business value reached CNY 6.45 billion, more than doubling, and our investment yield is 3%. In 2023, it is proposed we pay cash dividend of CNY 1.56 per 10 shares with a dividend payout ratio above 30% to 400 shares. In the year 2023, the company focused on its main responsibility in our business, further highlighting serving the national strategies, development quality, and innovation-driven growth. Thus, high-quality development is solidly advanced. PICC P&C became the first company in China's property insurance with a premium income of over CNY 500 billion. The renewal rate of household and business increased by 1.1 percentage point. The growth rate of personal loan auto business was 5.9% higher than the overall rate. PICC Life's premium income once again reached the threshold of CNY 100 billion. The new business value increased by 69.6% from last year. Regular premium increased by 37%. Thirteen-month new business ratio increased by 9.5%. Take-up of PICC's book is 12.2%. The new business value increased by 1.8 times. Health management service income increased by 41%, and combined ratio of short-term insurance business decreased by 0.7%. Investment segments remained stable and industry-leading performance with third-party assets under management grew by 13.2%. The quality and efficiency of serving national strategies is also solid. In 2023, the company undertook risk coverage of over CNY 260 billion. Claims payment is over CNY 400 billion, with the daily claims over CNY 1.1 billion. Investment scale for the eight strategic services approached CNY 800 billion. We pushed forward the eight strategic services, opening up new business areas, and expanded our new development resources, which is an important factor for our business to outperform the industry. Due to the time limit, we disclose the details for the eight strategic services in our system delivery piece. I would love to mention a few also. In terms of serving the modern industry system, we provide comprehensive insurance services solutions for the industrial park and provide CNY 260, providing CNY 25 trillion risk coverage for 140,000 enterprises. In terms of the rural revitalization, agriculture insurance provided CNY 2.1 trillion worth of coverage, and we also provided CNY 87.2 trillion for 110,000 high-tech enterprises. In terms of green development, green insurance included CNY 75.5 trillion with an increase of 20%, and we cover over 15 provinces, 17 cities, and with a population of 270 million population, covering key areas such as Beijing, Tianjin, and Hebei, Yangtze River Delta, as well as GBA. In terms of Belt and Road, we cover 134 countries or regions in the world with over CNY 1.8 trillion risk coverage. We have also been accelerating our technology application by setting up a digital development committee to consolidate the work for industrial support digitalization as well as information centering. Data governance is also a key area in our basic infrastructure building. We have launched the transformation center in the north by combining five different platforms for operation excellence. We have also launched over 100 smart scenarios with leading businesses in China. We have also been awarded with Golden Pin award by the PBOC for our excellent work in the tech innovation. In terms of sales and underwriting, the mobile sales platform, e-PICC, realized a premium income of CNY 142 trillion, and we have over 90% accuracy rate for intention indicated for our products. In terms of claims and loss reduction, we have served over 180 million times of claims and collected over 27 million times of malpractices. According to the features of any needs, we set up claim system service models so as to better serve the policyholders. In terms of customer services, we promoted online transformation of multiple customer services such as car life, home life, and health management. The net premium income of one-click renewal for auto insurance increased by 43 times. We also have very effective innovation-driven development. We have the new business model of insurance with loss reduction plus technology, so that we will be able to provide better services for pre-policy, during the insurance policy, as well as the disaster loss causal management. We handled over 130 million claims in the year of 2023 through Wanxiang Cloud risk control platform. We identified 660,000 risk targets. To explore typhoon disaster relief, we assisted our clients transfer some assets under risk worth over CNY 1 billion, and we helped many new people to reduce the risk. We have also promoted product innovation. We launched 1,037 new products, with CNY 6.8 trillion worth of premium achieved in the current year. We enhanced our management system in an all-round way, optimized our high-quality development evaluation system so as to outperform the industry. The business collaborations have been steadily advanced. We have been able to serve over 290 million individual clients and 7 million institution clients with online and offline coordination. The collaborative premium income was CNY 23 billion with an increase of 7.9%. Investment cross-sales source of premium is increased by 67.2%. We continue to strengthen our risk prevention and risk control by a comprehensive risk management action plan. We have been optimizing our risk appetite with model tests and completed an intelligent risk control platform. Especially, we focused on risk exposure in the local government, financial vehicle, as well as the property industry. Systemic assessments did not occur any critical credit risk losses. We have achieved an operating net cash flow of CNY 70 billion, which is stable. Internal control and compliance management systems further improved and the level of compliance management steadily enhanced. Now performance by segment. Let's have a look at the P&C insurance segment. in 2023, we continued to optimize our business structure and focused on reducing the cost and increase the efficiency. First is the premium income was CNY 467 billion, increase of 77%. Premium income is over CNY 500 billion with an increase of 6.3%. Our net profit was CNY 22 billion and remaining base was stable and net assets increased by 6.1%. Combined ratio was 97.6%. Underwriting profit CNY 11.1 billion. The net amount of outstanding claims, CNY 179 billion, an increase of 4.6%. PICC P&C plans to distribute a cash dividend of CNY 12.89 per share. In terms of auto insurance, as the largest entity in the P&C insurance market, we play a leading role in the industry, actively implementing various regulatory requirements and trying to accelerate our transformation towards high-quality development. Auto insurance underwriting increased by 7.6%, premium increased by 5.3%, and we optimized our auto insurance structure. The household-owned vehicle business continued to improve with an underwriting volume of 6.9% increase, premium increased by 0.1%, renewal rate is 1.1%. The profitability of auto industry continued to outperform the industry. Underwriting profit accounted for about 80% of the industry whole. In terms of non-auto insurance, P&C continued to develop effectively the accident insurance and health insurance, as well as policy-oriented business such as agriculture and critical illness industry. Non-auto insurance premium increased by 7.4%, and the combined ratio decreased by 1.7 percentage point and underwriting profit of CNY 2.5 billion. The commercial non-auto insurance business has improved significantly. In personal business, we have explored new sales scenarios. The penetration rate of personal non-auto insurance increased by 2.1 percentage point, and the average premium per customer increased by CNY 59 billion year over year. The premium income of personal non-auto insurance increased by 12.2% throughout the year, and the combined ratio down 4.3 percentage point. In corporate business, we have proactively adjusted the business structure and the premium income increased by 2.9%. The combined ratio decreased by 3.4 percentage point. We have very strong capital growth at the end of 2023. The net amount of outstanding claim reserves increased by 2.6% compared with beginning of year. The provision ratio of claims reserve for auto insurance increased by 0.2 percentage point. The provision of outstanding claim reserve is reasonable and sufficient. The core solvency adequacy ratio was 209%, and the comprehensive solvency adequacy ratio was 232%. Our solvency is sufficient to support the long-term stable dividend policy. In 2023, due to factors such as major disasters like typhoons and rainstorms and the downward trend of capital markets, our net profit and ROE declined. However, in the past five years, PICC's average ROE was 12.8%, a stable leading level in the financial industry. Let's look at the PICC Life insurance sector. First, the quality and efficiency of operation improved. Premium revenue increased by 8.6%. First-year regular premium increased by 37.1%. Its increase ranked at the forefront of the major peers. The 13-month persistency ratio increased by 9.5 percentage point. Business value increased significantly. Life business quality has optimized with NBV increasing by 1.6 percentage point, and NBV increased significantly by 69.6%, embedded value by 2%. All channels showed very good momentum. Individual business channel improved. Monthly average high-performing manpower increased by 8.9%. Monthly per capita first year commission income increased by 60.5%. The proportion of highly educated increased by 1.7 percentage point, and the scale of IWP manpower increased by 67%. Bancassurance has had new breakthroughs. First-year regular premium is up 53.7%. Business quality optimized, NBV increasing by 2.1%, and the new business value of bancassurance increased by 2.4 times. The expansion capabilities of group insurance and e-commerce channels have improved. The first year regular premium revenue of group insurance is up 67%. NBV of self-operated platform of e-commerce doubled. Fourth, patient service ecosystem at the group level, a leading group for the large health Ecosystem has been established. We have defined a clear idea of strategic goals, key tasks, and measures. We can meet the customers' diversified production protection needs, and the service network, working with the third parties, cover 15 cities in 10 offices and provide 12,000 beds. PICC Health. PICC's health business grew rapidly, and the quality and efficiency of operation continued to improve. Premium income increased by 10.2%, net profit, CNY 1.8 billion. In 2023, ROE reached 18.1%, leading the life insurance company. The value creation capability has enhanced. In 2023, NBV and NBV margin increased by 5%. NBV increased by 1.8 times. The combined ratio of short-term insurance business decreased by 0.7 percentage point. Embedded value increased by 25.8%. We have expanded the Internet health insurance business. Premium income increased by 2.3%. Product mix has been further enriched. We have shifted the focus from medical insurance and critical illness insurance to multi-dimensional product mix. In 2023, we have recorded 7.8 million new customers. Big Health ecosystem continued to make new breakthroughs. We have 3.38 million new service customers and more than 8,100 new service institutions. Second, our medical network has covered more than 400 cities. We work with 200,000 pharmacists, and we have signed agreements with 126 Grade A hospitals. The company explores models of jointly building PICC Cloud Clinic with hospitals, including Renji Hospital, covering 300,000 patients. In asset management, at the end of 2023, the group's insurance fund investments increased by 11.4% compared with the beginning of the year. From the point of asset liability management, we have increased the allocation of long-term government bonds, treasury bonds, the proportion of which increased by 1.6 percentage point. On the other hand, we value long-term value investment and prudent investment. The allocation ratio in the secondary market is kept at a reasonable range, and we focus on those listed companies with stable profit models and high dividend payout ratios, and we increased the proportion of OCI stock assets. The scale of OCI stock holdings increased by 1.1 times compared with the beginning of the year. The company practiced the concept of green development, and the scale of green investment increased by 14%. Facing the complex environment both internally and externally, the company strengthened market research and market analysis, and focused on building core investment capabilities, and we have invested in the right time, and we increased the contribution of bond trading and high-quality non-standard assets. The investment yield was 4.4%, an increase of 0.1 percentage point. Equity investments enhanced its stability. We have seen higher ratio of OCI stocks. The yield was 6.4%. The company's average total investment yield over the past 5 years was 5.1% better than industry average. The risk of the company's investment assets was controllable. In 2023, we focused on investigation and monitoring of risks in LGFV and the risk control and credit rating management system, and there were no major credit risk loss in fixed income investments of the insurance fund. With the new generation quantitative risk control system, we continuously enhanced the level of the process management risk mitigation. By the end of 2023, 98.7% of our bank financial bonds rated AAA, and non-standard investments had core counterparties as financing entities or guarantors, and the proportion of projects with AAA reached 99.8%. In 2024, we will deeply implement the spirit of Central Financial Work Conference, continue to optimize the excellence strategy. We will take new steps to promote the group's high-quality development, and we will seize the opportunity to welcome the 75th anniversary of founding of the PRC and the company with excellent results. First, focus on the main business of stable growth. We need to do a good job in the 5 major aspects of finance, the key insurance businesses, and solidify the 8 strategic services, expand the space for business development, and maintain reasonable premium growth rates. Second, we will adhere to high-quality development, and through transforming methods, reducing costs, and optimizing product mix, we will achieve a combined ratio in P&C better than the average of listed companies, and the growth rate of NBV will be better than our peers. The investment income will be stable, and the net profit will have reasonable growth, and we will strive to surpass the industry's average profitability level. Thirdly, we will enhance our innovative measures. We will practice the models of insurance plus service plus technology and risk reduction service projects, and in the health insurance value-led development projects, we will cultivate new quality houses. We will cultivate new quality productivity of the Group and build long-term competitive advantage. Fourth, we will prevent risks and better adapt ourselves to the requirements of financial risk prevention under the new situation. We will optimize management action plan and strictly manage compliance governance and achieve united interaction between high-level safety and high-quality development. Dear guests, investors, analysts, and media friends, creating better value for investors and sharing development results with society is our pursuit in the company. You are welcome to give us suggestions. That is all for my presentation. Thank you, everyone. Thank you, Mr. Zhao. We will now start the Q&A session. We will take questions both from the Hong Kong venue and the Beijing venue. In the Beijing venue, Mr. Bi will coordinate the questions. Please restrict your questions to only two questions each time. Before asking a question, please identify yourself. We will first of all take a question from the Hong Kong venue. Thank you management for the opportunity. Michelle from Citigroup. On the last slide, you mentioned the key tasks in 2024. My question is, if you look at the long-term development after strategic optimization, will you have some long-term quantifiable metrics that the investors can look at? That is my first question. Here is my second question. We are very pleased to see that despite the turbulent macro environment, you have achieved very good business results with a higher dividend payout ratio. Many investors are now focusing on dividends as a basis for the framework of their evaluation of stocks. Can you please talk about this framework from your perspective, depending on the dividends you will pay? Can you please give us a better picture of a more stable dividend paying policy? Thank you. Let me thank all the investors and media friends for joining us at this press conference, and I also thank you for your support and interest in PICC, and thank you for your trust. I think that is a good question, and that also gives me a good opportunity to respond to that. I believe, as you are aware, we optimized our development strategies in the second half of 2023. So I would like to talk about how we optimized our strategies. The purpose of optimizing our development strategy is to better implement the results and instructions of the Central Financial Work Conference. This is to better focus on our main business of insurance and highlight high-quality development. This is also to adapt ourselves to the national pursuit of building China as a strong power in financial services. I think the development strategies can be summarized as one vision, three targets, and six actions. One vision means that we will be committed to building ourselves into a global excellent insurance group. It means that we have been optimizing our strategies internally. First of all, we focus on our main business, and we strive for excellence, and our development will be innovation-driven. Our governance structure will be modernized. That means strategically, we will make sure that we implement the instructions from the central government. We will focus on the main business of insurance, making sure that insurance can be a stabilizer and a risk absorber in economical development. We need to seek excellence in both brand awareness and strength. Third is about innovation and reform, so as to be excellent in leading innovation in our industry, because we do believe that in insurance industry, change is in need. There is new risks, there is new and transformative opportunities emerging in the market. Therefore, we need to adapt ourselves to the new challenges. In terms of corporate governance, we want to drive for better excellency. Short-term goal, that is by 2025, we hope to make steady steps towards excellent insurance, meaning that we hope to keep quality, quantity, safety, and efficiency. We need to strike a balance between these factors. By 2027, we hope that our group can take up to a new level, meaning to serve high-quality economic development with better insurance policies and product, and to play a bigger role in the entire economic development for our country. Our long-term goal, that is by 2035, we can become a world's leading insurance group in terms of competency and influence so that we can tap on the great power generated from industry of insurance. Our strategic goal will center around quality, efficiency, and high-quality development as a whole. So we would strive for an optimized structure, efficiency, and performance by reducing the cost stringently. We take on a long-term perspective when it comes to our underwriting capability, risk control capability, and sustainability of our work. So quality is not the only goal. We also look for the quality over quantity. That is the P&C that I am talking specifically about. So by 2025, our three-year premium CAGR will be no lower than 5%. P&C combined ratio for the coming three years is expected to be above the industry average, significantly better than the industry average, if not a specific number. The long-term investment yield for three years will be at least 10 basis points above industry average. Long-term ROE and NBV capital increase will be outperforming the industry average as a whole. I am not sure whether my promise here today can make you happy. Thank you. Second question. Investors return, we never want to disappoint our investors. There are a few factors at play here based on the new accounting standard. As you know, the new standard is launched officially in 2023, so all the numbers you see today is based on the new accounting standard. Second is that we want to maintain a stable and continuous payout of dividend. For four consecutive years, our payout ratio is over 40%, and P&C is over 40% for four years. We will try to maintain that momentum. In compliance with the Auditor Association and national regulation requirement, we will respond actively to the needs of dividends from investors so as to continue to optimize our dividend payout ratio and to manage our capital in a more efficient way so as to provide sustainable, reasonable return to the investors and share our profit with the investors. Next question come from Beijing. Thank you very much. This is Senting from Haitong Securities. Once again, congratulations for another great performance above the industry. I have two questions for you because, given the uncertainties and adverse external environment that we are operating in, what kind of challenges and opportunities are faced with us today and any response or measures you're going to take? My second question is about your auto insurance, because P&C is your key test, and we know that out of that, auto insurance is the pivotal part of your P&C business. What is your interpretation about the competition landscape in the future? Also, can you say a few words about the regulation trajectory for auto insurance? Thank you. This question comes from Haitong Securities. Well, thank you. I'm in Hong Kong and you're in Beijing. We are very happy to take your questions despite the physical distance. Well, let me entertain the first question. What kind of challenges or changes are we expecting down the road? Well, finance is an indispensable part of the economy as a whole. Insurance as an industry serves as a solid foundation for the general economic development. What has been proven is that the fundamentals of China's economy remain unchanged, which is a positive prospect for many industries, like new drivers, new economic areas are showcasing great potential for strong development. New productivity, as mentioned as the buzzword in the two sessions, is something that we can see, which is going to serve as a big driver and fundamental booster for our business. This actually promise a very nice performance for our business development in the future. In the future, we think that the insurance industry is going to be further empowered by the new demands and, of course, new pools of risks. Well, the Central Financial Work Conference that there are going to be five keywords for financial development, including seven types of insurance. I think these demands gave us a very clear direction for our future development, where we can well position ourselves to seize those opportunities, especially the strategic demands. As reform and transformation deepens, we think that we will accelerate our work in the coming year in adapting ourselves by giving the full play of the protective nature of insurance, so that we can take more initiatives in incorporating insurance into the policy system. Especially the prevention of disasters, risk reduction, governance of the society, health, senior care, and production safety is going to be another type of arsenal for the government so that we can tap on the great resources brought along by new development in the economy. As a central government business, we will be facing enormous market potential. By building our country into an economic giant, we will see a more open economy and a more open market so that PICC can more actively participate in global competition. For example, be it in Belt and Road Initiative-related activities so that we can seize greater opportunities from abroad. In terms of regulation, as you mentioned, stronger regulation is going to give us a healthier environment as a whole. As a major financial institution, we would benefit from such a healthy and sustainable regulation environment so that we can be more focused, more practice-oriented in our work to drive for high-quality development. As a leader or a bigger player in our industry, we would be the biggest beneficiary from a healthy environment because we do not violate laws, we drive for high-quality development. PICC's response to future challenges. We do plan our work ahead of time. We want to focus on the following areas. First is to serve the national strategy. We want to position ourselves in a way to support the national development. We said that we're going to have these 8 strategic services to support for a modern industry, to support rural revitalization, digital innovation, green development, safe development, regional development, and BRI. We have also come out with action plans, with targets, with measures, with regular evaluations and reviews. Second is innovation-driven development. With ever-changing demands especially, and new source of risks, we will try to cater for the demand by reform with better supplies of product and services powered by innovation. New productivity, of course, will give birth to new types of risks, which would require us to be innovative with our product development. We have also been in the process of developing 10 strategic projects in response to the new demand by cultivating the capacity required in new types of strategies. We would also love to strengthen our work in risk prevention and better control the risk, which is a key task for us. We would continue to give the full play of insurer as we are. We want to be protective. We want to upgrade a comprehensive risk management system so as to be proactive and early in advance when it comes to risk control, so as to drive high quality development. Fourth is tech empowerment. Because we have felt ourselves that digitalization can help us to be more comprehensive and accurate in evaluating the risks. We will be able to take mitigating measures and risk reduction measures for various industries, so that we are also in the process of working digitalization action plan so as to deploy digital tools in various scenarios and better serve our clients. Fifth, we will highlight the importance of international business. A really powerful financial institution must have very strong international business. We will actively explore international markets, strengthening the international business and product mix. We will focus on the areas where Chinese companies are operating their business, especially along the Belt and Road Initiative. We will propose some action plans. In the end, I think everything comes down to a good team of excellent talent. We will develop training programs and the awareness and professionalism across the employees will be improved. The employees will be more committed and competitive. I will take your second question. In recent years, with the supervision and guidance of regulators, the auto insurance market is highly regulated. The auto insurance market has been going with an upward trend. The market is regulated. Consumers' rights are protected. As for competition, we believe that in the future, claims rate will further increase and expenses ratio will come down further. In market competition, big companies will benefit more from market competition, so-called Matthew effect. As for PICC P&C, in terms of statistics, channels, pricing, claims, cost, we have very good advantages in all these aspects. Now we have a huge amount of data, customer data. Our data foundation is incomparable. In pricing, in recent years, we have been practicing the strategy of coordination between price and fees. In terms of channels, the positioning strategies of our channels and the quality and professionalism of the insurance agent has been improved. We compared the productivity of our employees with other peers, we are higher than the industry average. With favorable sales policies and the smart allocation of the sales resources, we have been always taking a very targeted approach. As for the fixed costs and how they are being amortized, we can see that the fixed costs have been going down. Fixed assets decreased from 6.7% a year before to 6.4% this year. We have been much more competitive among 36 institutions without any high regulation. The combined ratio of the auto insurance in some areas is even higher than 8%. This Matthew effect is more evident and the big companies will surely benefit. Last year, there were two documents, 192 and 450, further regulated the market of the auto insurance and the price management of auto insurances. Last October at the Central Financial Work Conference, the efficiency of high regulation was highlighted and risk mitigation was the keyword. The national regulators required auto insurance providers to practice their insurance practice according to the accurate price of the labeled prices. This would further facilitate the market on healthy development. In 2024, with the market continuously being highly regulated, all the market players will benefit from this upward trend. I think these implications are quite positive. In the long run, I believe the regulators and the new regulatory measures have protected consumers' lawful rights, so market players will be able to shift their focus to higher quality and the customer satisfaction level. PICC P&C, as the largest player in the market, will also play such a role so we can maximize our benefit as a large market player. Thank you, Mr. Yi. Mr. Yi said that our COR was more than 8% in some regions, and some of you had a smile. Let's go back to the question from the Hong Kong venue. Good afternoon, everyone. I am from Goldman Sachs. At the Investor Day, you talked about risk reduction. How does it affect 2023 results? In 2024, are there any specific measures to control risk? Can you please elaborate on that? I would like to ask about the solvency ratio of your subsidiaries, because when you mentioned a stable dividend paying policy. As for solvency ratio, what solvency ratio are you looking at in mid-term? Will it be a precondition for stable dividend paying? Let me come to the first question. At the Investor Day, some investors asked if our risk reduction efforts could lead to some quantifiable metrics. I think this is a harsh question. It is hard to put these things into numbers, but although it is difficult, we can come back to this question in a very straightforward manner. As for risk reduction measures, there were a few different phases. Pre-insurance is the first phase. In the pre-insurance phase, we will inspect the different metrics professionally and in different aspects. As for the legal entities, non-auto entities, we have been assessing them in different segments. As for mid to high-risk customers, we have conducted professional and high-level inspections. We have discovered over 351,000 findings, and we have provided suggestions to customers. As for online inspection, we have provided our customers with over 404 million reports. As for on-site risk inspection efforts, those under 60 have seen an 8.1% increase in their premium and inconsistency ratio. As for employee liability insurance, 64% of customers, we charged them higher premium, and the increase is 2.86% on average. That is the effectiveness of risk inspection in pre and mid-insurance services. We have also sent 180 million reminders to heavy load trucks, and we have rectified over 27 million malpractices. In terms of P&C insurance, we have done risk inspection towards 630,000 findings. In adverse weather conditions, we have increased loss of CNY 840 million, which can be quantifiable. Before disaster happens, we also send warnings, and to every vehicle, we send reminders and warnings in both WeChat notifications and text messages. When the typhoon Doksuri hit Fujian, the loss ratio is 0.5% lower than industry average. Take Guangdong as example. In the flood risky places, we have reduced over CNY 300 million of potential loss, and that is for pre-insurance and mid-insurance. In 2024, you may say that these projects I mentioned were scattered, but in the future, we will combine risk reduction services and technology. At the same time, risk reduction management is also identified as a strategic project at the group level. These scattered projects are coordinated and incorporated as a large group-wide campaign. Risk reduction is embedded in every link of our working process. Secondly, we expanded our service area. In some areas, we have formulated specific risk reduction plans. For example, in technology disaster, agri insurance, we have done some research, and we have diversified our risk reduction services plans. For example, risk reduction services have been embedded in the insurance for major crops in agri insurance products. For example, during rainy seasons, these services enabled farmers to increase productivity. We also provided some training, for example, disaster prevention and drills to our customers. Besides, we highlight the role of technology as an enabler, and digitalization is always the keyword. We have a Wanxiang Cloud platform, so we can offer standardized and customized technology-based risk reduction services. Thank you. Now I am going to pick on the solvency question. Well, solvency management has always been a key area for our work so as to make sure the solvency ratio is adequate. From last year's number, you can see PICC Group, PICC P&C, PICC Life, Reinsurance, and PICC Hong Kong, five subsidiaries, either for core capital solvency or comprehensive solvency are all up to the bar. Second, we will continue to stringently manage our solvency. We have a rolling analysis of our capital for three years. In order to ensure we have adequate solvency level, we want to do it by optimizing our business portfolio and to better manage our capital, because we cannot just ask for refunding once capital level is low. We need to exercise under the premise of capital restraint. We want to optimize our portfolio, especially to reduce our capital-consuming businesses so as to enhance our internal capital operation excellency. Of course, we will turn to the market for fundraising. For instance, our PICC Life and PICC Health has raised capital from the market. We also hope to have another CNY 12 billion worth of bonds to replenish our capital so as to improve the comprehensive solvency ratio for the PICC Health in our group. With the new accounting standard in full play, there will be some discrepancies between the old and new system, and we will optimize the categorization of our assets accordingly so as to better reflect our solvency performance. With careful evaluation, our solvency capacity is strong enough to sustain our future development. We are able to drive for long-term sustainable business development and dividend. The dividend payout in cash imposed only a 4% impact on our solvency rate, which is very comfortably positioned. Thank you very much. Next question comes from Beijing. Thank you very much. This is from Securities Daily. This question is about your main business and main responsibility. It seems that you have a new interpretation for the main business of your subsidiaries, PICC P&C as your core business and PICC Life, as well as reinsurance. My question for you is, while you are positioning your subsidiaries, what is your logic or philosophy, especially how do you dedicate it more with your PICC Life and reinsurance? This is the first question. The second question is margin, because it seems that it has been mentioned that you want to better manage the risk with regards to the spread margin. What measures are you going to take? For your first question, the Central Financial Work Conference emphasized that insurers have to focus on their own area. PICC, as a pioneer, we have incorporated in our development strategy that is to be more focused on our core turf. That is to focus on P&C, life insurance, and reinsurance will work hand-in-hand, supported by other types of insurance. This is the position that we are reiterated once again. For P&C, the sheer size of P&C is number one in Asia and number one in our country. 2023 premium is over CNY 500 billion, and in our group, P&C accounts for about 80% of the total business. These serve as the fundamental for the group's operation. That is why we will reinforce our P&C business for the longer term. There is still room for development for a better efficiency and better excellence. Size-wise, we are already really huge. In order to serve the national economy, P&C is the flagship business that we have. These are the life insurance and the reinsurance. We are talking about creating synergy because we cannot separate P&C from reinsurance in life and accident insurance, because we can just tap on the resources we already got from P&C in terms of network, in terms of clients. For life and accident and reinsurance can help us to further strengthen our P&C business. We have a very good track record of creating synergy. For instance, pension. We do not have a standalone network for that. We can just rely on the network established by P&C nationwide to drive business growth. So it is an intertwined business network across different cross-selling opportunities so that we can further build on the P&C business with reinsurance and life and accident. We can pool our resources together in an efficient way. We would love to optimize our group positioning as well as the positioning of the various subsidiaries to better manage our business. The P&C will continue to work on risk reduction and to be more innovative in business management with risk reduction and risk prevention, and optimize our business unit operations so as to build ourselves into a world's leading insurance group. Risk reduction is considered as an important strategy for our business. The reason is that future insurance boils down to whether or not some targets are insurable, whether or not you can manage it, whether or not you can reduce the risks, for instance, catastrophes. International insurers have studied that if you spend $1 in risk reduction, you can save $6 in claims. This is a theory, but it will be very difficult to put that in practice. At least it indicates how important risk reduction is for us in the future. Last year was a big year in natural disasters. However, our combined ratio remained stable thanks to our enormous effort in risk reduction. This is just an example for you, showing that major natural disasters does not necessarily mean big loss. In the year 2021, the loss rate for Zhengzhou rainstorm was high due to the lack of risk prevention. Last year, we braced ourselves for major natural disasters and came out with good results. The city governance as well as the housing protection. In these two areas, we had some very nice example in a country that can be shared. We have also been trying hard to increase the agent efficiency, especially optimizing their sales capacity so as to drive our efficiency even higher, especially the life insurance. We have been trying to control the scale of it, especially low-value business. We want to optimize the team and generate more NBV so as to be value-oriented in our life insurance. You can see that spread margin has become prominent when it comes to the profitability. I believe that we still have room for improvement. For health insurance, we have a six plus one regime so as to further explore opportunities from social insurance, the group insurance plus healthcare, internet-based insurance products, and extending into new curves so as to become professional in health insurance reinsurance. We want to enhance our professional capacity so as to better serve the groups. We would love to develop third-party businesses, become more global combined ratio and net profit can be better amongst the Chinese reinsurers. Spread margin risk. For life insurance, the return was able to cover the spread in interest, but given the fact that interest rate seems to be decreasing, if investment yields cannot cover the interest rates, then we will suffer from spread margin loss. We have been studying on the prevention of spread margin risk. Insurers alike including PICC, will be responsive in such a risk. In terms of liability, we want to reduce the liability interest. We have been pressing that interest level down for 3 years. It is now only 3.98% last year. We want to have it even lower this year. On the liability side, we want to optimize the product portfolio, especially for the interest-bearing liability side, we want to reduce the size of it. We also want to reduce the size of low-value business. We would also optimize the terms of our product so as to reduce the interest-bearing burden. We will also monitor dynamically the investment yields so as to reflect that in our return. Have a proactive analysis of interest trajectory and brace ourselves with more flexibility in our investment activities. We would also take strategic measures in terms of currencies, in terms of asset accounts, and to be responsive to the market dynamics when it comes to investment yields. We will also trying to manage the maturity of our products and reduce the mismatch of maturity, so as to make sure that the liability and asset can match well. Sure. Back to Hong Kong. Thank you. Thank you for the opportunity. From Morgan Stanley, 2 questions. The first has to do with your P&C business. Last year, you set targets for combined ratio for non-auto and auto. What are these targets in 2024? Can you please also talk about your target for premium revenue growth? Can you please talk about the future targets of ROE in P&C? My second question has to do with health insurance. The NBV increased by 1.8 times in health insurance on a comparable basis. Can you please talk about the position of your health insurance and what is your outlook for the premium growth in health insurance in 2024? Well, let me come back to the first question regarding non-auto and auto insurance in combined ratio. In 2023, I think you need to look at combined ratio from a more objective perspective. I'd like to give you a few numbers. In Q3, some investors asked what will happen with the combined ratio, in non-auto and auto. Back then, that was when the new typhoon, Doksuri, hit. Back then I said, "Without any new typhoons, we won't change our target." I'd like to focus on one number. All the catastrophe risks, both non-auto and auto insurance, the net loss in 2023 was CNY 12.3 billion. In 2022, it was CNY 7.9 billion. In 2021, CNY 9.5 billion. The Chairman said that it was CNY 9.5 billion. That was when the flood happened in Zhengzhou. The net loss in last year was the highest in our record, CNY 13.3 billion. Despite that, we still had very good performance. We always highlight the high-quality development, and that's the group's strategy. That means P&C issuers would need to have a clear view of its business strategy and profitability. At a normal level of a catastrophe without major catastrophe, the group will be keen to keep non-auto at lower than 100%, and auto insurance under 95%. In terms of ROE, as you are aware, in Chinese system, on top of the solvency ratio, there are other regulatory concerns. We hope that we can stabilize the level of ROE, and we hope that we can improve ROE in the future. As for premium revenue growth, we're very optimistic because China's economy will recover and progress at an upward trend. The national government sees the importance of insurance as a stabilizer to society. Last year, we had five typhoons, we had earthquake, we had heavy rains, and we had all kinds of catastrophe. That's good news because that's why the public could really see the role of issuers as a stabilizer and risk absorber. The higher awareness will bring to us more opportunities. At the same time, the central government is setting up to develop new industries, and that will lead to some structural growth in P&C insurance growth. Our group has identified eight major strategic directions to align with national strategies. Growth in national development. We hope with the growth in premium, we have refined the structure of insurance contracts, including agri insurance. We have also restructured our overseas business. With the new accounting standards, insurance business as a whole will see remarkable growth. The bottom line would be that the growth in insurance business will not be lower than the GDP growth of China. Let me get back to your question about health insurance. PICC Health is the first professional health insurance company in China, and in recent years, we have been exploring the right development strategy for health insurance business. In recent years, the CAGR was 12.3%, and in 2023, the profit was a record-breaking CNY 1.84 billion, with ROE being 18.1%. That's a two-digit growth rate. NBV increased by 1.8 times, and embedded value increased by 25.8%. We are doing quite well in focusing our main business, and we have explored a differentiated development model from the traditional life insurance business. There are a few highlights. First of all, PICC Health actively serves the Healthy China strategy and different levels of social security. We are involved in basic security services, chronic disease, critical illness, long-term care, and outpatient services, and we have combined medical insurance, long-term care insurance, and chronic disease management. We have explored the new model for long-term care insurance. This model was featured by the TV programs on China's national TV. Secondly, PICC Health can play a very important supplementary role. On top of the basic social insurance, we can explore some online commercial insurance products, the Hao Yibao, which had more than 70 million customers. Every day we had 15 to 16 new policies. We have focused on special demographic groups, especially elderly citizens and children, in offering some specialized products. In industrial customers, on top of basic services, we offer not only commercial insurance services, but also long-term care insurance services. The key is to fulfill the demand from the public for different levels of medical and care insurance. When it comes to product mix, we have improved our risk mitigation level. We have always reminded ourselves of our main business because as a health insurer, we constantly ask what products we should have. Most of the products are protection products. The proportion of protection products is 77.4%. Thanks to the very high proportion of protection products, the capital cost is lower than our peers in life insurance business. We are more immune to volatility in capital markets. We have improved our capabilities in evaluation and risk mitigation. We have a management process that covers every link from risk management to claim. When we work with social insurance providers, and especially in chronic disease management, even with government subsidies, we implemented some measures to keep everything in control internally. In short-term, our combined ratio has been kept at a very reasonable level, and currently stands at 0.7%. Because of these risk mitigation measures, we could have very stable revenue. Our company has been actively building a new model combining health insurance services and technology. This is what a professional health insurer should have. I think core of the health insurance business is health management. Health management, in essence, is tantamount to risk reduction in health management. We need to improve our service capability in health management in all fronts. Ecosystem integrating different medical resources, and we can streamline the process of the services to customers, forming a closed loop from medical consultation to long-term care. Through health insurance and health management, the two drivers, on the one hand, we will promote health insurance business. On the other hand, we will also offer health management businesses. We are not only protecting people's health, we are helping them improve their health before buying a policy. In this process, we could identify new growth drivers. Regarding the question about NBV, as we said, last year, the NBV was at CNY 2.83 billion, a remarkable increase compared with 2022. I think the main reason is the fast growth of the premium revenue. In 2024, we will also be committed to high-quality development. Through disposition and health management, we can effectively reduce risk. At the same time, with more stringent regulatory measures, the policy environment for health insurance will be further improved. Some other business segments will see higher NBV. We are confident that the NBV of our group will see consistent growth in the long term. Thank you. Now, we are going to take another question from Beijing. Thank you. Gentleman on the third row. Thank you very much for giving me this opportunity. Once again, congratulations on another great year. You have a nice stock price rally today. My question is about your life insurance outlook for 2024. You mentioned that in the year 2024 premium, you said that you are going to outperform the growth rate of GDP, and the growth of the premium with a cumulative 1% increase seems to be slowing down and presenting a gap versus your expectation, including auto, agriculture, and the key insurance. Since the growth of your premium increase seems to be slowing down in February, what are the reasons and what would be the outlook of the premium income for the whole year by quarter? When are we going to see a rebound in premium growth? Second question is about your life insurance. Because you talked about the health insurance. My question for you is that your NBV is much higher than the industry average. I think that it was not an easy job, given the fact that external environment was not the most favorable last year. My question for you, is how life insurance is going to be like in 2024, especially from Q1 throughout Q4. The first question, premium increase is slowing down. There are some smaller range insurers out there in the market. Last year, especially with the combined ratio lowered by the COVID restrictions. The carryover impact on that gives rise to the phenomenon that the auto insurance premium dropped as a whole. As we emerged out of the lingering impact of COVID, smaller auto insurance are having higher combined ratio as more vehicles come out, hit the road. The reason for the lowered premium on auto industry, as you see that we are consolidating the business, so combined ratio better controlled. It gives us more maneuver room to optimize our auto business. The overall judgment of the company is the auto insurance will remain stable. The growth of our company is relatively slowing down, which is in line with the market average. The signing pace for auto insurance has been better than industry average, meaning that we are able to land on more policies on auto insurance. Automobile sales, especially NEVs and auto sales in rural areas. Thanks to the policy support, the sales of automobile has been on the rise. As it comes back to the level of 5%, we have our advantage on network, in claims handling, as well as the risk management. We do have the confidence of outperforming the industry average on auto insurance. Now, for agriculture insurance, there are two obstacles. First is the agriculture policy came out relatively late. The selection of agricultural policy results came out pretty late this year. This is a late timing for the entire industry. Our company had combed through our business on agriculture business, especially certain products that suffered from high claims ratio. We actually tried to get rid of them. That explained the slowing down of agriculture in the first two months. We have cultivation and weather-related insurance are on the rise. In modernizing our economy, in modern agriculture and rural revitalization are the key area in the future. It has been mentioned that there has to be 100% coverage on the main three staples as well as oil beans business expansion. I think that we will be able to enjoy more opportunities on agriculture business and remain a stable size. Social insurance. In recent years, medical insurance policy remained stable at the national level, and critical illness insurance is also very stable. People financial load for critical illness remained stable, and we do not expect huge changes. Long-term care insurance, new policies have came out. PICC Life and PICC Health are preparing themselves for the changes in long-term care policy changes. Thank you very much. For NBV increased by 69.6% for life insurance, mainly coming from two aspects. First is the new business value increased by about 20%, and regular payment increased by 37%. Second is we have optimized our portfolio. Low NBV products, we stopped expanding the business size so that we can give more focus and resources on high-value products. The new business value rate increased by 0.6%. We have multiple channels engaged for generating new values for business. Both the channel as well as the personnel become more efficient. We have e-commerce, we have bancassurance, as well as other channels involved. We have better management and better cross-department synergy generated so that we have higher management efficiency. We optimize the allocation of resources and strive for better operation excellencies, so new policy sales was very good. I think the great performance came up as a result of our diligent work in selling new policies and portfolio improvements. We will be able to sustain ourselves a better 2024 and carry that momentum forward. You could see that we continue to reduce the premium generated from low NBV, and we have been able to maintain a But generally, the original premium had a drop, but it was a result of proactive measures. We would carry forward our philosophy of a value-oriented strategy. I think that the NBV momentum into 2023 will be carried over to the coming year. Thank you very much. Thank you. Back to Hong Kong. Thank you. CITIC analyst. These two questions is about P&C. It seems that outstanding claim reserve has been relatively high. I would love to know more about whether or not this level will remain elevated. Second question is about non-auto business. Will PICC trying to adjust the development pace for non-auto business, whether or not the combined ratio in the future can be better improved? You also mentioned agriculture and social insurance. Could you give us more color as to the liability insurance? Thank you. The reserve for outstanding claims. Last year, without touching on the reserve for outstanding claims, we achieved 97% for auto and 100% for non-auto. I think that we functionally combined with the compliance as well as the actual philosophy, and made reasonable arrangements for our reserve for outstanding claims. The reserve as a percentage to the premium is subject to multiple factors. PICC P&C, there's IBNR and case. There's two philosophies, as I said. The accuracy of auto insurance in terms of case is higher and higher. Now it's reduced to 3%, meaning that whether or not the adequacy rate of reserve doesn't actually change, so that the case accuracy can be even better so that we can give ourselves a better foundation for case reserve, so that we would allocate reasonable and sufficient reserve for outstanding claims. I hope this helps. Second is to adjust our non-auto business, because non-auto business profitability is continuing to grow better. I think this is a vivid example of where risk reduction or risk retention can play a role because we said that we hope to optimize the environment, the ecosystem, such as the circuit board. It is growing very quickly. However, it's somehow loss-making. We took the initiative of setting up alliance on circuit board, meaning that we freeze the underwriting capability and improve the underwriting terms so that the chips premium on chips increased by 22.8%. For chipmaker insurance, we are able to achieve a profit as a whole through the alliance strategy. Second is reduction. Especially for high-claims area, we can improve the portfolio by getting rid of the loss-making businesses. So combined ratio down by 3.4%, non-auto decreased, and we will accelerate quality business. Non-auto insurance, especially individual non-auto insurance, is profit making and it's now accounting for 17.9% of the total. Coupled with risk reduction, you can see that for rainstorms, the loss that we suffered last year was much smaller versus the one in Zhengzhou three years back. In 2024, we will continue to work hard on improving our margin by reasonably adjusting our portfolio. We also have liability insurance, not within 100%. Some other smaller insurance categories are not within 100%. We will tap on these two, so as to make sure that all of the categories of insurance can be reduced to 100%, so that the margin would be more solidly guaranteed. A question from Beijing. Thank you. Thank you, management, for the opportunity. I have two questions. The first one has to do with the combined ratio. Have you compared the combined ratio of NEV vis-a-vis ICE cars? Given the prevalence of EV, how do you plan to stabilize the level of combined ratio? As for investment, what is the outlook for investment returns in 2024? Does it mean that you will change your investment strategy? Let me respond to your first question regarding the combined ratio of EV. I think that points to the issue that we are all interested in. The growth of the auto business comes from the high growth rate of the NEV, and therefore, a very high combined ratio. Probably we are not supposed to release the numbers, but in commercial insurance, the combined ratio for NEV is 7 percentage points higher than other insurance. I think the main difference has to do with commercial insurance, leading to a 7% difference. The difference, it varies from company to company. In general, it is 10% across the board. We manage our auto insurance business in a much better way than others do, 2%-3% higher, and we are more selective for customers. So we are better than the industry average by 3 percentage points. Probably the combined ratio of NEV is higher than ICE cars by 10 percentage points, if we are talking about other industry players. We have a clear advantage in NEV because we have a full grasp of data, and we can make informed decisions regarding vehicles and drivers. We also introduce some highly advanced third-party technologies which are much better than those of our peers. We have a clear advantage in cost because we have a clear segregation of different channels. That is why the customer acquisition cost for NEV is way lower than ICE. The sales model of NEV is different from ICE cars, so we can only align with that with a low-cost model of insurance product. Besides, as we said, we have an advantage in combined ratio, we have an advantage in fixed cost, and we have an advantage in claim as well. We have a professional operational model for claims which is managed professionally by a professional team. So claims are more targeted and more efficient for NEVs than ICE cars. So we have an advantage in authentication, anti-fraud, et cetera, and our professional team can provide some added value. That being said, we are still faced with daunting tasks in auto insurance, especially for NEV. We will strive to keep our profitability at a satisfactory level and keep our auto insurance for NEV at a better level than other peers. Thank you. Let me respond to the second question. Since the beginning of the year, the capital market has seen lots of volatility. Lately, there has been some positive change and the investors' mentality has improved. We hope that we will expect some better investment environment going forward. With the new accounting standard, we have seen higher investment returns. There are a few things to talk about. First, China's economy is recovering with a stronger intrinsic growth momentum. China is in a phase of transition from old growth drivers to new growth drivers. I believe we will see some twists and turns, but we will surely see paths to growth going forward. At the two sessions, China set its GDP growth target at 5%. At the beginning of the year, countercyclical, cross-cyclical, macro regulatory measures have been introduced in a much more aggressive way than markets expected. That means we still have some leeway for regulatory adjustments. Lately, some international organizations, including IMF, revised up China's GDP growth forecast. If you look at the statistics outlined in the past few months, IMF published the growth target of 4.6% for China's GDP, and we have seen the recovery in both GDP growth in China and also the recovery in commodity prices, which give us confidence. At the same time, we have seen improvement in profitability of the real economy. If you look at the profit growth of our large enterprises in China in Q3, Q4, there were 7.9% and 12.2% with economic recovery going forward and moderate growth of retail prices. We believe the real economy will also pick up. Thirdly, the mechanisms in the capital markets have been strengthened. In recent years, to build an open, resilient, dynamic market, regulators have introduced a number of measures to support the long-term stable growth of capital markets. For example, a higher threshold for IPO, better investor protection, management of demand and supply relations. We are looking at higher stability in capital markets. in 2024, we will be committed to long-term investment, value investment, and the prudent investment. We are strengthening our management of asset and liability, improve risk management mechanism, optimize the capital structure, and we will also speed up industrial layout while mitigating risks. We will keep the profit margin of our investment returns at a reasonable level, offering a robust support to our main business, which is insurance. As for investment strategies, there are a few changes as compared with 2023. On the one hand, we will strengthen asset liability management and strengthen the coordination between asset liability. We must be more selective in investing in right asset classes, and we will close the gap in long duration and product. We need to mitigate the risk from the misalignment of asset liabilities. Also, we need to improve our risk management capabilities. We will adjust our compliance policies in line with regulatory requirements. We will set reasonable risk appetite and profits. Thirdly, we will actively seize investment opportunities to optimize capital allocation. This is to further improve OCI investment and assets under new accounting standards. So this is to strengthen the stability of investment returns under new accounting standards, and we need to increase the percentage of the assets with a listed company with a stable dividend return and long-term stability. We must increase the investment returns from the price differences of different bonds. We will advance the big health and the pension business of the group. So we will provide strong support as the investment arm of the company. Last but not least, alternative investments. Example, securitization, through these innovative measures, we can revitalize the existing assets in traditional investments so we can meet the requirements of investment funds for alternative investments. In the interest of time, we will not take more questions. Previously, in response to the SSE and the Shanghai Stock Exchange, on March 19th, we launched a public call for questions from the investors and feedback from investors, and thank you for your efforts. The management has provided very thoughtful answers to the questions. But there is a very good question, which is the last one at this press conference. SASAC stated that the market capitalization assessment for listed companies will be fully implemented in 2024. Can the management talk about the specific measures to align with that initiative? Well, I'd like to respond to the question. I think the management and assessment of listed companies in the full manner, this is a very good measure, and this is to highlight the responsibility of the listed companies. It will improve customers, investors' confidence, improve listed companies' market performance to deliver better returns to investors. This is also very conducive to the long-term healthy development of capital markets. PICC has been taking market cap management very seriously. We are one of the companies that incorporated this type of management assessment in our day-to-day business early on, and our efforts were recognized by regulators. As you could see, our stock price on both A-share and H-share markets have increased much more rapidly than our peers. For over 3 years, our results announcement press conferences are regarded as a best practice by regulators. Our information disclosure measures receive A-level rating from stock exchanges. Going forward, we will implement the latest measures instructed by the regulators, and market cap management will be highlighted in our business. We will strengthen the management of market cap, and we hope that we can see both stock price and market cap increase. I think we have some work to do in 3 aspects. First is that we want to lay a good foundation for market cap management so that we can have a sustainable, resilient business performance so as to present huge drops in businesses, so that there will be a stable expectation from the market capital and enhance confidence in the long holding of our equities. We would also love to convey clear messages to the market through various means, such as today's result announcement and roadshows or open days to continue to present our high-quality development to the market so as to reflect such great achievements in our stock prices, so as to manage our capital market cap in a better way. We have over 160 smaller players as shareholders of the group. We would love to protect their interests. Third is to replenish our management arsenal to better manage our company cap. We will report the latest development to the management and release information to the market. For instance, through repo or increase our holdings, we will ensure the continuity of our development strategy so as to drive stable and highly expected returns to the market, so as to ensure a better company capital management. Well, thank you very much for attending today's result announcement, and thank you for the leaders and representatives from Shanghai Association of Listed Companies in Beijing. We are now in a very busy season, so we thank you for making your time out of your busy schedule for our result announcement. We do have a full house today, and it's already 2 hours in, but some of you haven't got a chance to raise your question. Please feel free to reach out to the IR team, either at the group level or P&C level. We would try our very best to entertain your questions in greater detail. We also arranged roadshows in Europe, in other countries. We would have a reverse roadshow as well if you need. That concludes today's result announcement. Thank you very much.