Distinguished investors, analysts, media friends, good morning. Thanks for attending 2024 annual result announcement of China Reinsurance (Group) Corporation. I am the host, Liu Yuanzhang, Assistant President and Board Secretary of the company. I would like to introduce the members of our senior management. They are Mr. Zhuang Qianzhi, President of China Re. Mr. Tian Meipan, Assistant President, Chief Actuary and CFO. Mr. Wang Zhongyao, General Manager of China Re. Mr. Li Xiaomin, President of China Continent Insurance. Mr. Zhai Qingfeng, General Manager of China Re Asset. The result announcement will have two parts. Firstly, our senior management will present you the performance in 2024. Mr. Zhuang Qianzhi will provide you an overview of the performance and the outlook. Mr. Wang Zhongyao, Tian Meipan, Li Xiaomin will cover the performance of each business segment. Secondly, we will have a Q&A session.
The management will address your questions and engage in an interactive discussion with you. Now let us pass the floor to Mr. Zhuang Qianzhi.
Distinguished investors, analysts, media friends, good morning. Welcome to 2024 annual results announcement of China Reinsurance (Group) Limited. In 2024, we faced very complicated external situations, but we are committed to be the world's leading insurance company. We are committed to the steady and progressive development and create the values. We are speeding up the reform, therefore, the overall performance tends to be very positive and the competitive edge and the global influence have been increased. The high-quality developments generated a very good result. I am going to cover the overall operations and the major achievements. I hope you can have an idea of the performance. First, the operation has been improved as a whole. In total, the consolidated premium income was RMB 101.3 billion.
Year-on-year growth was 1.9%. The consolidated revenue was RMB 113 billion, and grew up 1.6%. Profits attributed to the parent company was RMB 10.55 billion. Year-on-year, the growth was 86.8%. ROE was 10.74%, up 4.52 percentage points. EPS was RMB 0.05, up 19%. Based on the accounting principle of Chinese enterprises, the consolidated revenue of the premium and the profit attributed to the parent company made a new record high. Since the 13th Five-Year Plan, we have been optimizing the structure and the efficiency has then been improved. In 2024, the efficiency has made a new high. Year-on-year growth was 170%, based on the Chinese accounting principle. Each business segment made the profit and the domestic performance was over 99.8%. The financial asset reinsurance overseas ratio was 89%. The life under health protection type business was 90.6%.
Primary P&C increase was 99.66%. We are committed to the long-term investment and value creation investment and steady increase investment. Therefore, the profit from the investment has been increased dramatically. The total investment revenue was RMB 19.3 billion, up 86.9%, and the total investment yield was up 2.06 percentage points to 4.83%. Based on the principle of Chinese accounting, the domestic stock comprehensive investment yield was over CSI 300 benchmark by 600 basis points. The overall stock performance yield, it was over Hang Seng Index benchmark by 500 over basis points. We are serving for the national strategy and our company make the best out of our primary business, that is the reinsurance, and to enhance the social efficiency and stabilize the overall performance of the society. So for the civil economy and the society development in 2024, in various business segments, the growth was over 19%.
The inclusive insurance covered over 200 million people. We served over 10 million SMEs. Primarily, we are focusing on the security society development. We are generating our products one generation after another with our own models that covers the typhoon, earthquake, and flooding insurance. Those models are self-developed and well-established. They are the pillar of our business and the insurance service. In the trailing stage, we were the chief policy writer. We also have our comprehensive insurance meeting. We also produced the relevant research. Together with the research institutes and the industry associations, we come up with the high-quality development guidelines for China. Secondly, we are working together with China's National Climate Change Programme. I personally take the lead of the special committee and come up with the special guidelines. We set up the China Re Climate Risk Research Centre.
As the only one pioneering organization, we have completed the task commissioned by the PBoC on the pressure test of typhoon. Together with the China Meteorological Administration, we set up the first forum of Baihuashan, which is focusing on the mitigation of the risk. We are focusing on the development of the reinsurance market. We are working with the reinsurance center development in Shanghai and covering the China Continent Insurance Huatai Agency. All of the three have been established their bases in this center. We are working with the insurance center in Shanghai and actively joining in the insurance trading platform. Together, we have the insurance policy where we share with the internal and external outlet. For three years, we published the research institutes of the reinsurance business in China. That is the guidance for this business in China as a whole.
Number four, we have been deepening the financial service. We are focusing on the cutting-edge development of the financial technology and focusing on the transformation of technology and research. For 26 years, we have been the presidential committee members of the reinsurance association. We are ranked number one as our comprehensive service capacity. We have been researched the inclusive policy products, which covers 1.3 million people every year. We are working on the service with the Belt and Road countries. As the chief of the consortium of the Belt and Road insurance, we have helped the 64 key projects and offers over RMB 80 billion. Through the choices, technology, and experience, we offer the insurance service to the SOEs and covers them from the political risks and the volatiles. Number three, we speed up with the technology. We are updating our technology digital strategy.
Through that, we updated our service and the products. Eventually, we made the products and development appealing. To do so, we set up our policy making. We have the roadmap to get the targets. We are optimizing our reform and actively set up the debt management company and set up the technology company. So those two pillars are the strong supporter for our development. We have been enhancing the three-year plan. We set up the quality standard, which have set the standard of this kind. We set up the [inaudible] , which also a new establishment. Secondly, the technology has been used to empower, which has been used in the middle office and the back office. Then they can drive the precise decision-making. We are updating across the platform.
It's managing the risks, and the self-development of the risk management system can be used in the directors of the insurance and the reinsurance. We set it up the Lingshanjie AI platform which can empower different business scenarios. We are enriching the business ecosystem that covers the earthquake, typhoon, health and life insurance, and we are updating the EV insurance, and we also launched the internet insurance. Number four, we have the very steady effective risk management. In 2024, each business segment had sufficient sovereignty. For 11 years, we maintained as the A or above at S&P Global Ratings. The A.M. Best rating has been always A or above for 15 years. Now I'd like to pass the business segments person in charge to give you the idea. First, Mr. Wang Zhongyao to give you an idea about the P&C reinsurance.
Distinguished investors, analysts, media friends. Now I'd like to cover you the P&C reinsurance. To begin with, let's have the domestic view. In 2024, we consolidated our primary position in this market in the mainland China. We used our advantages, expertise, and create values. In the domestic market, insurance revenue was RMB 22.5 billion, up 1.6%. Reinsurance premium was RMB 38.7 billion, excluding the one-off insurance, the premium growth made a new high. The contract premium was RMB 36.9 billion.
The efficient and the fluctuative business was RMB 1.7 billion. Domestic ratio has been stable. The combined cost ratio was up 0.33 basis points to 99.86%. In 2024, the major business has been stable. Motor was RMB 11.05 billion, up 5.6%. Commercial property was up 19.9% to RMB 7.8 billion. Liability premium was up 11.2% to RMB 7.07 billion. Engineering was over RMB 3.2 billion. We have been consolidating our advantage in the emerging area. It is the other service and creative to the national development.
It is the untapped water. In addition, it is the innovation for our products, and we make the best out of our platform, the data, and the technology. In 2025, in the emerging area, the revenue of premium was RMB 3.03 billion at the non-motor reinsurance business, the portion was 13.2%. Among that, IDI was up 22.2%, and other liability insurance growth was all astonishing. Let's have a look of the overseas P&C reinsurance. In 2024, there were a lot of the mishap of the world. The reinsurance was at the weight of the cycle. We expanded our advantages and proactively restructured our business. And we have the very high efficiency of the policy writing. The revenue was up 11.5% to RMB 23.35 billion. The total premium was up 14.1% to RMB 26.5 billion. Among that, the Chaucer business was RMB 22.26 billion, up 17%.
Other overseas business revenue was premium was RMB 4.29 billion, up by 1.1%. Combined ratio was 89.38%, up by 3.64 basis points. After acquirement of Chaucer, the quality has been very stable. The ROA was rather high. From 2019- 2022, the CAGR rate was over 19.3%. The cost ratio on average was 93.35%, and the ROEC was 19.2%, up by 0.4 basis points. In 2019- 2024, ROEC was over 12.6%. Those are the performance of P&C. Thank you very much. Now let's pass the floor to the Chief Actuary Assistant of the President, Ms. Tian Meipan, to cover the L&H.
Distinguished investors, analysts, media friends, now I'm going to cover life and health reinsurance. Domestic interest rate has been dropping. As you know, the 10-year national bond rate has been dropped to 1.6%. The saving products has been the driver of the growth in China Re as the insurance.
The disease had been the pillar. China and Singapore development has been at the very high base, which is mainly driven by the rather high interest rate of U.S. dollar. We have the very competitive landscape, and we are actively face the external situation. Therefore, the premium has been stable and the profitability has been increased. You might read those pieces of the information from the other detailed reports. Probably our revenue was not that high, but the profit has been quite high. In the life and health revenue was RMB 9.8 billion and total reinsurance profit was RMB 4.2 billion. The net profit was RMB 4.2 billion, up 225.3%. We have been updating the medical service and dedicated to the long-term value creation. We seize the opportunity and manage the profit and the loss. We operate under the compliance and make the best out of our existing businesses.
The domestic financial reimbursement business was RMB 15.3 billion, and we were actively developing the overseas business. The overseas business was over RMB 3.3 billion. We have been actively in optimizing the protection-based business. The profitable medical insurance was accounting 87.5%, up 11.9 percentage points. We seized the opportunity of the profit medical service and updated the products, and we promote the transformation of the products. We then realized the long-term development. In 2024, the profitable medical insurance was over RMB 15.5 billion. We were actively in developing the profitable medical insurance and make the best out of the existing business, and also be empowered by the technology. The overall cost ratio was dropped from 97.8% to 96.8%. Those are the performance of life and health. Now I pass the floor to Mr. Li Xiaomin, the President of the China Continent Insurance.
Dear investors, analysts, and media friends. Now I'm going to have a P&C Primary Insurance. In 2024, P&C Primary Insurance profitable has been improved and the risk has been measured better. The overall performance was at the upwards trend. The primary insurance revenue was RMB 46.9 billion, up 0.8%.
The primary premium was RMB 50.7 billion. Among that, the motor line was RMB 25.8 billion, up by 4.1%. Non-motor line was RMB 24.9 billion, up by 1.6 percentage points. In 2024, we have been reducing the cost and manage the cost structure and enhance the quality. The overall efficiency has been turned from negative to positive. The combined ratio has been reduced to 99.66% from 100.78% the year before. We have been optimizing the structure. For the motor, the renewable rate was 68.4%. That consolidated our existing base. We have committed to the target and focusing on the family vehicles and optimizing the allocation of the resources.
In the motor insurance, the renewable rate was 7.8%, and the proportion of the premium of household was 65.8%. Year- on- year on number of the vehicle underwritten was 2.9% up. The primary premium was RMB 11.11 billion, up 10.8%. Agriculture insurance premium was up 11.9%. Commercial property premium was up 17.2% to RMB 1.4 billion.
In fact, we have put the priority to the risk management and effectively mitigate the risks. The primary premium surety rate was down 13.4% and the bad debt rate was down 0.14 percentage points. All of those are the performance of my segments, P&C. Now I pass the floor to Zhai Qingfeng to cover the asset management.
Distinguished analysts, investors, and media friends. I'm going to brief you the asset management performance in 2024. Because of the policy stimulation and development of new productivity, the performance of the Chinese economy has been stable and progressive.
But there are still the issue about the weak essential drive, and there are a lot of uncertainties both domestically and internationally. Therefore, it has very negatively influenced the pricing of both Asia and each share market, and the interest rate in domestic China has been very flattened. The high-quality asset was in short of supply. Facing those kinds of challenges situation, we are committed to the long-term value-based and profitable investments. We were actively to seize the opportunity of the market, optimize the strategy, and mitigate the risk. On one hand, we improved the profitability resilience. On the other hand, we achieved very good performance. The long-term result, the total investment income was up 80.9% and the total investment yield was up 2.06 percentage points. By the end of 2024, the total investment was up 9.4% to RMB 443 billion.
On the allocation of the asset, it is aiming to go through the cycles, go through the sectors, make the best out of the portfolio, and try to be balanced and steady. The equity was taking 14%, and the investment to the associate company was 5.7%. In fixed income investments, we have the reservation on the bonds, and we seize the opportunity of the opportunity windows, and moderately seize the opportunity, aggressively seize the opportunity and optimize our positions of the portfolio. At the external, we seize the opportunity of the durations and the equity. On the equity and investment front, we have been very stable and make the best about our core business.
As the key business area, we seize the stability, and the secondary equity has been increased 14%. On the structure, we are focusing on the dumbbell shape arrangement and the foundation could be the high division investment.
On the growth rate, we have some oversubscription of the EV and AI. Those are the cutting-edge area, and we are crossing the different business sectors and then seize the opportunity. The secondary equity market performance was over the market average. Alternative investment is centered with the national policy, which is serving to the insurance and reinsurance business. Many technology, medical, AI areas, they are full of potential, and we are focusing on the products that could go through the cycles. Those are the performance of the asset management. Let's move the other floor to Mr. Zhuang Qianzhi to give you the outlook.
Now, I'd like to preview the outlook for the future. Based on the market condition, China insurance and reinsurance are still at the strategically important period.
There are a lot of opportunities by Chinese modernization and also the historical opportunity of the political situation, and there is a structural opportunity of the upgrading of development. Chinese economy in long term is turning to be positive. In the 23rd meetings, there are lots of the reform measures that generated the demand for insurance and reinsurance. The next step will be the financial reinsurance reform, and then the focus will be shifted to the insurance and reinsurance area. Facing the demand and the expectations from the government and the public, I think in the next 10 years, Chinese insurance will catch up their weaknesses and will also welcome the very big development. We will seize the opportunity to contribute to the economy, the livings, the well-beings, and improve the public from the natural disaster.
We will make the best out of the insurance and reinsurance and play well its functionality. We are facing lots of the challenges and new situations, but the strategy has been strengthening the functional role and being steady and being progressive. The development should be based on the size, but our investment should be healthy and steady. We will try our best to push the other company to the high-quality development in the new era, spare no efforts to make the return to the investors and shareholders. How could we make it? First of all, we will strengthen the functionality of reinsurance. We have five major areas centered with the climate change Belt and Road and cultivation of new productivity and the revitalization of the rural economy, also the low-altitude economy.
We will also complete the service strategy and the product lineup, and we will serve the rescue, and we will promote the insurance and the reinsurance business development. For this way, we can show our commitment. Secondly, we will focus on the high-quality development, focus on the major business. We have one major and two supplementary development structure, and we will continue to reform ourselves and make a new breakthrough for our business. We will also push the development and the investment of the urban insurance and enhance the ROA gradually. Third, we will enhance our core competitiveness through the digital transformation technology, and [inaudible] will be the way to make it. AI will be then used in our business, and thirdly, we will go to the abroad and our products will have more innovations, will have more coordinated management and alignment development.
The risk pricing and the cost management will be both launched. Number four, we will strengthen the risk management and risk controlling. We will have a comprehensive plan treating proactive compliance and the management risks, covers the climate change risk and the geopolitical risks. We will build up a barrier in order to improve, to safeguard the high-quality development. Those are the result announcement of China Reinsurance (Group) in 2024. Thanks again very much for the investors, analysts and the media friends for your long-term attention and support to our company. Now I hand the floor to Mr. Liu Yuanzhang, the host of this event. Just now, the management team just briefed you the performance in 2024 in many aspects. Now, without further ado, let's move to the Q&A session.
We have the Q&A session available for both on-site meeting and the telephone meeting. If you'd like to raise up meeting from the phone, please press star one. In order to give more chances for different people, please raise no more than two questions. Before your question, please let us know your name and your organization. I give the first chance to the on-site attendees.
Good morning. Thanks for the opportunity. From Ta Kung. I have two questions. First, based on your presentation just now, in 2024, the performance has been improved. Generally speaking, in the next year, how are you going to implement high-quality development in order to develop yourself as a world-leading reinsurance company? Secondly, I want to ask, what is your take about the Chinese reinsurance business in terms of the global market? As the representative of a Chinese reinsurance company, what is your next step? Strategy for going abroad. Those are my questions.
Thanks very much for your question. Regarding your first question about high-quality development in China Reinsurance and develop ourselves as a world-leading company, I will take it. For your second question, it is about the global development of the China Reinsurance (Group). Wang Zhongyao and I will both take it.
For the high-quality development, I think it is better to revisit our action plan of the world's leading insurance company development. This action plan had been launched last year in June. In that action plan, it has been mentioned by 2035, China Re will be developed a strong company with Chinese characters, with strong market positions, world leading comprehensive reinsurance company. In that action plan, we also emphasized the one body, two parts development model. In 203 5, we will realize this vision. In order to make it, we have three stages. First, from 2023- 2024, we will accumulate our capacity.
That means by the end of last year, we had accumulated the foundation to be the world's leading company. Second stage, from 2025- 2027, we are expected to make breakthroughs. In the next coming three years, it is the period. From 2028 onwards to 2035, it is the leap forward stage. In 2024, it was the year for Chinese r einsurance to wrap up the first stage of development. It was also the second year of the 14th Five-Year Plan. Based on our previous performance, it is fair to say that China Reinsurance has wrapped up the first stage in a very high note. First, the revenue and the profit have made the new high since the 13th Five-Year Plan. Second, our seven subsidiaries and six operating platforms overseas were all making profit. Number three, we did not have any major risks.
That is the bottom line, and we struck the right balance between the safety and efficiency. Through the preparatory stage in the first two years, 2023- 2024, we had a very good foundation to be the world's leading insurance company. In 2025, we are going to enter the breakthrough period. As you may know, in 2025, it is very crucial for us. It is the final year for the 14th Five-Year Plan. It is also the planning stage for the 15th Five-Year Plan. We have two aspects to work on. First, we will implement the 23rd meeting, we will seize the opportunity of the reform. As early as this year, we launched the top 10 items for the reform and based on the 10 reaction reform, we made it localized to each company. Secondly, we have the investment. In 2025, how could we do that?
We need to make the high-quality development and eventually enhance the core competitiveness. How could we make it? I have three aspects to cover. First, as you know, we need to be firm on our strategy. For those who need us to be firm, we will be strong on that. First and foremost, we will be implementing the development of the major business and make the best out of the functionality. Previously, Chinese financial company did not commit much to its major business. Probably the financial company takes some business of the real economy, and it is vice versa, and they have done very diverse and mixed business under the same umbrella. Through the many years of the practices, we think it is important for us to focus on the major businesses and make the best out of the insurance and reinsurance, and stabilize the society.
As the reinsurance company, reinsurance is insurance for the insurance company. We have the professionalism, we have the expertise, and we will be able to empower the insurance company and to diversify the risk and help the development of the insurance company. Secondly, we will be stable and progressive and make the values. That is the tone of our development. As the preparatory stage, we have been emphasizing stable is over the development. But now at the second developmental stage, we want to make the breakthroughs. We want to be stable, and we want to be progressive at the same time. That means we want to make the breakthroughs one after another. On the idea, we are focusing on the value improvement, and we focus on the net profit, the size, and the quality and the value for the business and the society.
Number three, we want to. We have the mission for the company that is development with the size and underwriting with efficiency, investment with the firmness and steadiness. Those are the missions accumulated through the years of practice in the business. Those missions reshaped our logic and our idea of development, which we have to be committed for long. Development has to be relying on the size, but we cannot blindly follow the size. The growth could be moderate, and that will definitely sustain the business for the long-term development. Secondly, the underwriting should develop with the efficiency. For the underwriting, we have to make the profit by the business itself instead of relying on the subsidy or the remedy from the asset. Which is the challenge to the traditional idea. The investment has to be stable. Insurance, what it is?
Insurance has to be stable, has to be preservative, conservative and credential. That's why we emphasize the value creation investment and long-term investment and steady investment and investment with discipline. I think we should have the strategic firmness, and for this, we need to be committed. We have to do so. The high-quality development, the second aspect of that is, for those areas needs to be reformed, we will do so. For the requirements, when there is the need to make the innovation, we will be brave enough to do so. As you know, in 2025, China Reinsurance (Group) is at the breakthrough period. At our action plan, it has been mentioned that there are eight breakthroughs to be made in order to push the company to be completely transformed. What are the eight action areas?
The first and foremost, the functionality, the role will create a new high as the specific and detailed area they need to take this responsibility. Second, the operation should make a new high and through the improvement of the core competitiveness, the performance should have a new development. The third, the digital transformation, including the digital economy and the digital transformation, and also we will enhance our capacity to respond to the natural catastrophes and climate change. Climate products lineup should be innovated, and we have been emphasizing on the synchronized innovation. Number five, we have to make the breakthrough at the global stage. We are quite leading the industry through the internationalization. We want to make the breakthrough in this regard. Then the risk management will also make the breakthrough, and the precise management is of course another area of making breakthroughs.
The talent pool will get something new and some breakthroughs. Those are the action plans in the developmental stage. In this stage of development, we are expected to make those breakthroughs, especially in the eight area. in 2025, we will have the developmental and the breakthrough stage. On those fronts, we will definitely make the innovations, and we will make the breakthroughs, and through the action plan, we will put the reform in details in action. Secondly, for the high-quality development, we have been always emphasizing the long-term development and long-term investment. We have to strike the balance between the short-term and the long-term, between the regional to the overall development. Therefore, we can make the development sustainable. Specifically, we have to strike the right balance between functionality versus profitability. On one side, we will pursue the economical values.
On the other hand, we want to play out the effects and the values of the insurance and bringing the benefits to all the shareholders, including the staff and the customers. It is the answer for your first question. Regarding your second question, I know you are quite concerning about the Chinese reinsurance business development. I would like to give you the idea from two basic points. The first, Chinese reinsurance company, last year, we made some progresses. Secondly, I think compared with the international benchmarks or our target, what are the deficiencies? Chinese reinsurance business, as you may know, has been developing through decades. Almost 20 years ago, China joined in the WTO. Then Chinese reinsurance market opened up to the world. I think the past 20 years witnesses the remarkable achievements of Chinese reinsurance.
Before the reinsurance was controlled by the law, 20% of the insurance company profit should be directed to reinsurance. In 2020, in 2006, this market was completely opened up and free from the policy controls. Now there are 15 reinsurance companies operating in the mainland. Among them, eight are international companies, seven are domestic. As you know, for the [inaudible] those big names are the international reinsurance companies operating in China. Except from the 15 reinsurance policy riders, there are another couple of the companies from the overseas business, from the overseas countries. They operate in China through the offline platform. So what is the latest line form? I think the overseas reinsurance took over 40%, and the China Reinsurance (Group) takes 26%, and China Re [Life and Health] takes 55%, and the P&C and the L&H in total, our company took over 40% of the market share.
Those are the Chinese landscape of competitiveness. It is fair to say that after 20 years of development, this market tends to be highly competitive. Chinese reinsurance has survived through the highly competitive environment. It is not an easy achievement. We are working with the very competitive players, and we achieved such marvelous status quo. Now, let's have a look of the globalization of Chinese reinsurance company. As I mentioned that internationalization has been a feature of this business. In 2011, we joined in the Lloyd's market in London, and then we started the international business. In 2015, we acquired the U.K. Chaucer, a syndicate. After the acquirement of the Chaucer, we operated it quite well for six years, and we have been ranked in top three in this market.
China Reinsurance (Group) globally has been engaging with the international partners and our ability for international engagement has also been improved. The market-driven international development are both progressing, and the achievement has been pretty good. But the results, I have to admit that there are some gaps. First, Chinese direct insurance company had been offering rather low redistribution of the profit, and they tend to keep the profit for themselves. Secondly, Chinese reinsurance market, globally speaking, is not taking a large portion, only 4% of the international reinsurance market. This 4% is not compatible to Chinese GDP size and the global shares. The overall domestic premium was RMB 22 billion. It is less than 1% of the total premium market of reinsurance. Through all of those factors, you can definitely tell the gap and the differences.
Secondly, though I think there are very good progresses and we trust our technology expertise and professionalism, but we do not have the very profound experience in the reinsurance business. Therefore, I believe there are a lot for us to do in order to get the international stage. This is the very objective introduction for the market-driven development and the internationalization of China Reinsurance (Group). Under our company, the P&C insurance has always been commissioned by the group to operate the overseas organization, including Singapore and London. Those agencies overseas are mainly managed by the P&C subsidiary. That is why I pass the floor to Mr. Zhongyao.
I would like to share with you the P&C insurance performance specifically and share with you the management situation. Our company has been committed for the high-quality development, and our international business is developing under this kind of big idea.
First, we have always been analyzing and focusing on the global changes, and we know that for the detailed segments, for the detailed regional market, we have the close analysis on that, and we change our policies of products and the operation strategy according to the status quo and with the changes of the fee, and we also meet the demand, and then we enhance our resources. We give the priority to those products with sufficient expenses, sufficient underwriting fee. In the meantime, we attach the great importance to. Secondly, we will seize the opportunity of the market and optimize our business structure. And we will also diversify our profitability and the products lineup. Secondly, we attach the great importance to the management of the risk. We have been improving the risk management system and develop our professional capacity.
On one hand, we focus on the macroeconomic situation of the world, including the climate change, geopolitical changes, and the natural disasters and some non-natural disasters. In the meantime, we focus on the risky factors' effects on the pricing and continuously enhance our risk management plan and detail the limit and the quota management. In the meantime, we quantify the business through quantitative and qualitative method. We are enhancing the management system and enhancing the management and utility of those risks. In 2020, we also set it up the CREST from 2023 in 2024. The CREST platform is at stage four. Now this platform is open to major natural disaster, typhoons. They can then offer the quick calculation and the claim. Through this way, they can help us to make the price by different regions and different portfolio.
Number three, we have always been enhancing the products over the online platform and then make the synergy effects. Through different way of [Non-English content] , we can match the business and sort out the relevant risk and control the. In the meantime, we use the support from [Non-English content] to give the best resources to the high-quality products and high-quality client-based development. In addition, we seize the opportunity of the reinsurance market and researching on the third-party asset and alternative asset. In the recent years, there is a synergy development of both the onshore and offshore market. Therefore, we transfer the overseas market business expertise to the domestic market. We consider the different demand of the two markets, like in the new energy, we accumulated some expertise which can be transferred to the Southeast Asian market and then provide the targeted service. That is my answer. Thanks very much.
Mr. Zhongyao just made some supplements from the operation perspective. Internationalization has been the most taken path for our developmental journey, and it is also natural for the company to go through it. For the target and measures, I want to add a bit more. Through those years of development, China Reinsurance (Group) had been the most internationalized Chinese reinsurance company. Though by my rough calculation and comparison, by the percentage of our business, our international business has been taking over 20% of our overall business. From the asset perspective, our overseas asset has been taking 25% of the total asset in the company. So those are the international level of our company from the two parameters. We have the organization in 11 regions and countries, like in Sydney, Hong Kong, London, and Singapore. Those areas you can find our organizations and office.
We have over 1,000 partners all over the world. So it is fair to say that among the Chinese enterprises of insurance, we are the most international one. Even this figure have been impressive for the large insurance. Chaucer had been acquired six to seven years ago, and after the acquisition, the size and the profit has been doubled. Chaucer has been ranked as the top three and the performance has been over. Chaucer had been supporting China Reinsurance (Group) , had been developing our company to make the innovation and the risk. For the future, what will be the future? Are we going to make the international leading insurance by 2035? The target is to be the top five. Now we are the first in Asia and number eight in the world. By 2035, are we going to be the top five of the world? That is the vision.
In order to make it, first, we need to take the international pathway of development. Reinsurance is based on the international market. Without the internationalization, the reinsurance business will not play out its effect. On the other hand, we will make the best out of internationalization from the strategy. It will be stable and prudential. For the allocation of the organization, we are not pursuing for the size and the quantity, but for the quality and the stableness. At the key area, the key region, and to the new emerging markets like the Belt and Road Initiative countries, we will do our international presence. On the other hand, or secondly, we will fix on the size. That is two.
Second, and more importantly, we are focusing on the administration level and the operation capacity of the overseas business and seize the opportunity of the cycle and make the alignment and the synergy between the domestic and the international business. In order to be international, we have to be supported by the international staff. It has been emphasized many times that we have to cultivate the international talents, those by ourselves internally, also hire the talents externally. We have started the recruitment campaign many years, and there are some risks of the political risks and whatever. In our development map, all of those ideas will be reflected and will be included. International development has been the most taken pathway. I think we are committed, and we have the resilience to do so, and we will try our best to do so.
Thank you very much, Mr. Zhuang. Second question.
Thank you very much. From Huatai, Li Jian. Two questions. First, the commercial life and health insurance. Second is about EV. China Reinsurance (Group) has been a major stakeholder of the property insurance and the medical insurance. Starting from last year, there were many policy changes, not limited but included to the sharing of the data. What do you think about its impacts on the commercial medical insurance? What are your innovation in this business? Secondly, it's about EV. I want to ask you that what is the situation of development for the EV insurance? Could you give us some ideas from insurance and reinsurance business perspective? From your answer, I'm going to see whether we can have the better achievements in this regard.
The first question is about the commercial medical insurance. Second is about EV. You focus on both the insurance and reinsurance. Therefore, I will pass the floor to Mr. Li Xiaomin from China Continent Insurance and Zhongy ao from China P&C insurance.
For your commercial healthcare insurance, it has been the topic for both 2024 and 2025. It's coming from two aspects. First, the Category B, whether it is included. Second, it is the 1.3 + N, this concept. Commercial insurance and medical insurance, there are a couple of aspects to cover. First, I want to emphasize that the Category B of the healthcare insurance shows that the commercial insurance had played a role in the healthcare system. Why should I put it in this way? First, our primary insurance has been covering basic points, basic expenditures. On top of that, to be honest, China cannot cover that part of the expenditures. We have over 1.3 billion people. They all have their medical insurance.
I think the economic development level of the country is not yet to such heights, so we can't cover so much. Second is about the fund payment. The income and the expenditure. The expenditure is way over the income of the fund, therefore, there is a very tight balance to be struck. Therefore, it has been realized that the commercial medical insurance, as a pillar of the people's health, it is very important. Third, as we all know that the public are in great demand of the excellent drugs and doctors. Probably you have seen that the Huashan Hospital doctor from Shanghai, they have shared with us a lot of the questions. All of those questions are related to the pursuit of the original medicine and medicine products. We think there is a great demand.
I think the development of the medical insurance from 2017- 2020, it was the high-speed development, and after that, we come to the accumulative period. What is the reason behind? It is related to the reform. The reform, on the positive side, it controls the growth of the expenditure and the loss rate. It is 38%. That was the payments ratio. It is rather low. Under this kind of low rate, the consequence is that the experience is not so good. Why it is like that? As we know, the reform and the procurement campaign, all of those policies surprised the accessibility of the good healthcare and the drugs. It is rather difficult to make it accessible. Now, some of the nationally negotiated drugs can be used in the hospital. There are double channels, then there is the transcribed. There is the transfer of the transcripts from the hospital.
The reinsurance policyholders recover those good health cares. But, the policyholder, they cannot get the access for that because of the policy setting. Under this kind of situation, we believe there is some pain points. Therefore, with the development of the commercial, it is not so good. In 2024 and 2025, there is the Category C. That means the DRG can be replaced. The double channel access will also be available for that. Therefore, the Category C sorted out some of the drugs, the accessibility issue of some of the drugs. For that, the experience will be better, and that will stimulate the demand for commercial healthcare. By certain time, it will be a very crucial point. In addition, the regulatory authority sorted out the category issue. If the regulator category could eventually compatible, I think the next step, demand will be released.
I probably believe that will be the prime time. That will be a very important point. But there are some negative notes. When it has the accessible issue, the payout ratio will be low, and when it is high. At this moment, Category C, the category is very narrowed, so it is controlled well. In the future, if it is disbanded, the payments ratio and the risk management will be more salient. We are looking for the way, like the integration and many other way to do so. How could we sort out the issue through the risk diversification? In the meantime, we can still keep the profitability of other drugs. Those are the situation of our company. Generally speaking, I think the next step will be the I think there will be a lot of the potential.
What will be the innovation of the healthcare insurance? From the products perspective, we have developed a lot of the new products, which is aiming to enhance the customer experience and then reduce the claim rates. Before, the policyholder did not understand that they can only get the claim over 10,000. We got the claim. Those claims was not well-grounded, so they should not made it. Second, we have the coverage for the internet consumption. Previously, we do not have this coverage, so we make the breakthrough. Third, we have the disabled insurance. For those who suffered from the losses of the functionality of the body because of the hospitalization, they can get the claim. Number four, we have the claim for targeted group, for those people working in the military, for those working in the crew of the vessel. We have a dedicated target for them.
And the accessible business, we have the relevant issues. We have a series of the drug issues, the drug development system. For the industry integration, we have three aspects to cover. First, we set up the internet-based ecosystem. We include the distributors, the supply chains, the operators in the platform. For example, the operator could facilitate the marketing, the sales, and enhance the administration. The supply chain will deliver the drugs and the product. Number two, as I mentioned earlier, we are always enhancing. We updated the product. Number three, we actively joined in the research. We have worked with McKinsey, BCG about the comprehensive payments scheme. So generally speaking, I think there are two points to make. First, there is a great potential for the commercial insurance. Second, under this big momentum, we have to manage the risks. Those are about the EV.
From the insurance perspective, I think it has been very stable. From the association perspective, the company premium has been growing 52.8%. From the comprehensive ratio based on the China Association of Actuaries' overall industry premium revenue was RMB 140 billion. The ratio was 1.7 and the losses was 5.7. China Continent Insurance was in line with the industry, and the ratio was at the same level. This is the development situation. For the future, and speaking about the efficient management, as we all know, in 2025 to January 20th, Chinese four ministries issued the guidelines on development of the new EV and the regulatory framework. It is lined up the outline to the strategies to enhance the market situation and ensure the high-quality development of EV. So, in 2025, the development trend let us know that the growth rates can be very stable and is rather high.
The penetration rate could be over 50%. Premium revenue will account over 20% of the total premium for the vehicles. The company will use the innovation and seize the opportunity to develop our products dedicated to the EV and differentiate the products from their operations. We have five aspects to work on. They are the coordination of the internal, external data and work together with the OEMs and joining in the data research and set up the specific pricing model and helping the high speed iteration and the model will be highly distinguishable. Based on the client base and profiles, we will make the process positioning. Second, we will make the coordination. Different brands will have different. We set up differentiated for those. In the meantime, we will encourage the people and differentiate them.
Secondly, we will seize the opportunity. Thirdly, we can use the industry and develop and speed up the [inaudible]. In this way, we can optimize the cost for the repair and maintenance, and we find out the breakthrough and the loopholes and develop the relevant and set up the platform dedicated to the EV. Number four, that is to prove the risks. We set up the specific risk system. On one hand, we coordinate well with the industry and we prevent the mispolicy application, and we also give the incentives to the right behavior. Number five is to enhance the overall comprehensive performance and offer the various insurance and protection, and promote the smart driving, and it enhance the overall situation.
All of that is to different measures the company can then develop the professional and intelligent EV management system and continually enhance the high-quality development of the company. EV reinsurance is different, is the same with the petrol car. For the compulsory insurance, there is no reinsurance. Most of the company, they have made the comprehensive. In the domestic market, there will be the fluctuation commission. Through this way, it is rather the same. It is rather difficult to separate. As I mentioned earlier that we have also seen the technology's involvement. It is a rather high-speed development, and some reinsurance company will sort it out its uncertainties. Based on those possible trends, our reinsurance company has done a lot to deal with the situation.
In the first half of 2025, we set it up the pricing and the risk management model for EV, which has been launched in the fourth quarter of last year. This platform is dedicated for pricing and risk management, which are supported by the existing data of the claim of the EV. We trained the big model through this platform, we can exchange the data with the insurance company, then we can offer them the online quoting for the insurance company, so the quoting will be quick, swift, and efficient. We have done some trials with the China Continent Insurance based on the results. I think the basic pricing issue can be sorted out. We will develop through this way. We hope we can gradually sort out the pricing difficulty of EVs and help you to diversify some uncertainties.
Thank you very much. The third question. From Phoenix TV.
I want to ask that climate change has been imposing a lot of the pressures for insurance and reinsurance company. How do you like to manage it? Under this low interest rate, what is your investment strategy? Long-term investment and the China Re has been mentioned that 30% of the new premium will be used to the Asia investment. Under this situation, what will it be? About the climate change, could you let Wang Zhongyao? Secondly, I will pass it to Qingfeng.
Thanks very much for your question. I think the climate change has been impacting our performance, mainly typhoon. Typhoon has been destructive over a lot of the things in Hainan, which is mainly in the engineering insurance, the energy insurance. In the domestic market, we are the major insurance underwriters through the policy setting.
We have done some arrangements so the net loss was at the very controllable scale. Globally speaking, the international business 2024 was very eventful. For five years in a row, climate change losses had been impacting the industry with the loss over RMB 100 billion. Last year, it was very high, over RMB 100 billion. Last, the flooding in Middle East and the typhoon in the United States were all destructive. Because of those cycles, I think, though the net loss was very controllable, that can be reflected in our performance. Some media might be concerning about them. I think based on our rearrangement. Therefore, I think it is within the 30%. In addition, a couple of days ago, there was an earthquake in Myanmar. By our examination, the exposure at that region was very limited.
Generally speaking, I think for the disaster risks, we have to take multiple measures to ensure the performance. Specifically, there are a couple of measures. First, we need to complete the risk management system and optimize our risk management idea and to manage the credit well. In the meantime, we need to enhance our overall administration. Secondly, we will continue to enhance our domestic and international platforms to manage the combined. As you know, we have different portfolio management platforms, CREST. This CREST could cover both the domestic and overseas risks that offers the on-time monitoring and analyzed by reasons, by the regions. On the application perspective, we will adjust our pricing and the portfolio management.
We have done sufficient prediction of the climate change, and we worked with the relevant companies, and we have our own IP on different risk management risks, and so we can optimize. In this way, we will enhance. Number four, our international business, it can be very domestically. We will transfer to those who have sufficient cash. Last but not least, we will make the best out of the [Non-English content] to mitigate the risk and diversify the risk portfolio, and to reduce the relevant risk exposures. Thanks very much for your question on the climate change risks. Climate change risks has been one of the largest and the most intimidating risks of human beings. It has been involved with many aspects.
I'd rather not to describe it more, but you can have this kind of direct feeling that the natural disaster, in whatever the form, flooding, firing, typhoon, have been very destructive. It has been described as once of a thousand years, but that all happened in the recent years. So we have put a lot of efforts on the climate change risks, and we have put a lot of attention in this regard, and we are well-prepared on that. We made our position in this regard. Why? Because we focused on the human beings of the livelihood, on the rescue aspects. As I mentioned that as early as 2016, we started up the Risk Management Center. And then it is an independent institute that's specializing on the risk model. That is the only one. And the chairman takes the leadership of the risk of the climate change rescue team.
I put a lot of emphasis on that. Earlier on, we set it up as the China Re Climate Risk Research Centre in our company, which is focusing on the application of research in the insurance field. So it is fair to say that we are quite concerning about the physical risks and its impacts on the insurance and the financial service industry, especially its investment, its impacts on the heavy asset. But now, I think we have also updated our mentality that those risks are impacting a diversified of the financial segments, including the insurance industry and other financial services. Secondly, one of the key function of reinsurance is to ensure the insurance. So we want to diversify the unique, the standing out, and the intimidating, and the huge risks. On those aspects, we will continue as usual to mitigate and protect our assets from the climate change risk.
Second question, I will pass it to Qingfeng.
Thank you very much for this question about the interest rate, which has been dropping in domestic China. Under this backdrop, I think, it's impacting the overall risk management and our investment strategy. Under this kind of the situation from the investment perspective, we will commit to the long-term value-based and steady investment strategy. We will also be committing to make the decision based on the risk situation. We have to use the allocation plus trading. In one hand, we will enhance the stability. In the other hand, we will seize the opportunity of the changing environment. We need to do three aspects of jobs. First, to go through cycles, go through markets, and anchor the firmness and stability.
We will research the markets and make the portfolio best and strike the right balance and adjust the balance and ensure the stable returns. Second, we'd like to diversify the product lines in order to ensure the certainty. On the fixed income, we have done the research on our asset allocation. Under the low interest rate, we have to make the right combination between the long-term and the short-term interest rate. We are exploring possibility of ABS and risk. On the equity investment, we will focus on the dumbbell shape investment. For the high dividend investment, it will be the foundation. For those emerging technology enterprises, we focus on them and research on them and fund those companies with strong potentials. For the interest-driven investment, we will focus on the medical plus technology. They are relevant to the insurance industry. Find out the strategic opportunity from them.
Number three, we will be adaptive to the changing of the environment, so we can then develop the strategy. On the fixed income, we will ensure the capacity building and use the fixed income plus to enhance the overall return. On the quality investment, we will also seize the structural opportunity. In the meantime, in recent years, we attached a great importance on the system development. In the future, we will definitely use the research, allocation, and the operation and put all the three in one management. This management system we will enhance the decision-making and give us the accuracy and flexibility. We are committed for the long-term flexible and prudential strategic thinking, and upholds the long-term risk management attitudes, trying to go through the cycles and create certainties and stable performance.
Speaking about the involvement in the investment market, there are a lot of policies on supporting the involvement to the long-term investment. That helps the insurance to the asset and value creation investment. That facilities the capital markets, the health, and stable development. It is strategically important. Our company has great confidence through the long-term development of Chinese economy. We think the future will be very promising for Chinese economy. The next step will be that we will implement the relevant requirements and action plan from the central governments on joining the long-term market, and seize the opportunity and spare no efforts in serving the real economy. In the meantime, we will help the stable and healthy development of the capital market.
On the investment, I want to address a couple of points. Low interest rate had been the situation for China in the first 40 years of development. Chinese development has been anchored by the high interest rate, so the investment had been very profitable, and that subsidized the insurance a bit. But it has been changing.
We have to make the new balance and rebalance of the development. In the recent years, we have done a lot on this, and I believe we have to update our strategy of operation under this kind of situation. I think it will be lasting for long, I mean, the low interest rate. Secondly, I think we have to seize the opportunity that is suitable for the development of this industry. We will be committed for the stable and for the well-coordinated development. Insurance is not standing alone. Insurance should be a service and should be a value-added part. In the meantime, we will also enhance our professionalism and allocation. We will strike the right balance.
Thank you very much, Mr. Zhuang, Mr. Zhongyao, Mr. Qingfeng. Thanks very much. I think in the interest of time, I would rather reserve the very last opportunity to raise up the question to the online participants. CICC. From CICC.
Thanks very much for the opportunity. I am Mao Qingqing from CICC. Thanks very much, and congratulations to your performance of 2024. In the interest of time, I will raise up only one question. Could you give us the outlook for 2025, the profitability, and the operation trend. In addition, in the future, are you going to take the more active provision distribution policy. I would like to pose this question to Meipan . Regarding 2025, the results prediction. If we have more time, I would like to pose this floor to Mr. Zhuang.
Question. I can only answer this question from financial perspective. There are two aspects.
First, the performance of the service. Second, the financial performance. From the service perspective of the insurance, it is more on the liability. What we are going to do in 2025, the debt, we have the very stable performance on the liability or the debt in 2025. I think this trend will be continued. Li Xiaomin also mentioned that when he was updating you the performance, China Continent Insurance for the first time made the profit from the insurance products. I think the overall trend of the business tends to be positive and on the right track. Looking ahead for 2025, the China Continent Insurance company will perform much better. That is for sure. Second, from the debt perspective, let us have a look of the overseas business.
Honestly speaking, as Mr. Zhuang mentioned earlier on, I think the overall performance was very stable and 2023/2024 was very extraordinary. As we know, Mr. Zhongyao mentioned that we are at the end of the cycle, and the Chaucer expenditure has been reduced in certain items, but they are overall in line with the expectations. I think in 2025 it will be no problem at all. Chaucer had been very experienced in managing the credits and the policies, and from liability perspective, that is my answer. Now let us shift it to the asset perspective about our premier, the finance Results. There are two factors to be considered. First, financially speaking, financial cost, I think it has been rather stable. Whatever the changes of the interest rate should be included in the OCI.
Therefore, the cost of the policy writing has been very stable, and it is more on the investment that might be the changing factor, the fixed income. You all know that the risk of the management for our company has been very stringent. So the risk, the credit risk has been very low.
The largest risk for our company has been the interest rate for some assets because of the interest rate changes. It will not reflect it in our profit and losses. For those, that can be only reflected in the profit and losses, as Qingfeng mentioned that this kind of low interest rate will be continued for quite a long period of time, and I don't think there will be the possibility to pick it up quite sharply. I don't think so. The interest rate will be fluctuating, but it will be rather low for a period of time.
Therefore, the equity. Let's have a look on the equity as Qingfeng mentioned that first, in the secondary market, I think the segment is the secondary market has been only taking a small portion of our business compared with our peers. Secondly, we are actively including the high interest rate products in our portfolio. Therefore, the most important thing is that I think the Chinese capital market for us has been very promising for us. I believe we are very optimistic for the future of the Chinese economy. All in all, in one statement, I think in 2025, in whatever measures, the financial measures or the performance measures, I believe we will be confident to deliver the targets and generate the positive results. About the dividend distribution.
Since the listing of our company, we have been committed to the very aggressive distribution that is no less than 30% of the profit attributed to the parent company. So probably, you might ask by what accounting principles? By IFRS 17 or the latest one? I think that our latest distribution is according to the older version of the principles. Whether the ratio will be up, it is quite depending on the two points. First, it is depending on the financial development. There is a connection between the two, and we always think that the dividend distribution should have been connected with our performance improvement. If the growth rate of our performance and the profitability growth rate have been way over the distribution rate growth. For that case, we will definitely sacrifice a bit of the distribution of the dividend and make it stable.
In order to make it, we have to stabilize our ROA, our profitability. The ultimate goal is to improve the ROE of the company, and then we can create values to the shareholders, and then we can generate more dividends to the shareholders. Secondly, as I also mentioned that we have been always considering the existing shareholders and their benefits. When it is appropriate, when it is possible, and when we are able to deliver, we will consider the dividend. So in whatever the standard we are going to uphold in the future, I think the overall principle is like that. First, we will support the development of the business. Second, we will consider the benefits to the shareholders. Thank you very much. That is my answer.
Thanks, Meipan. In the interest of time, I think this is the end of the result announcement.
China Reinsurance (Group) Corporation since it got listed in 2015. We have received a lot of the support and attention from the investors, analysts, and the media friends. On behalf of the senior management team, I would like to express my gratitude to every one of you. We have always attached great importance on the exchanges and communication with the capital market. In the next stage, we will definitely make the better arrangements and connect well with the investment at home and abroad and including Hong Kong. We will have more opportunity to speak face-to-face and let you know our ideas. Of course, we will know your expectations from the financial market.
In this way, we will create more returns to the shareholders and gains for the shareholders. As the interest of times, I have to declare it is the conclusion of the 2024 result announcement of the China Reinsurance (Group). Thanks for attending this event. If you have any other questions, please feel free to reach out to the IR team of the company. Thank you very much.