Dear investors. Dear analysts. Ladies and gentlemen, good afternoon. Welcome to attend China Re Group 2023 third-quarter results announcement meeting. I am the moderator for today's session, Liu Kai. The guests who are attending today's meeting are Mr. Jianming , the Vice President of China Re Group, and Mr. Xiaoxuan , the Vice President of China Re P&C, and also the General Actuary of the China Re P&C, as well as the Vice President of China Continent Insurance, Mr. Li Xiaomin.
Today's meeting is going to be divided into two parts. The first part is that we are going to invite Mr. Xiaoxuan to brief us China Re Group's performance in the third quarter of the year 2023. The second part of today's meeting is the Q&A session. We are going to have a Q&A session. If you have any questions, we are going to open up the floor on the Q&A session. Now we are going to give the floor to Mr. Xiaoxuan .
Dear investors, dear analysts, good afternoon. Now I am going to give you a brief introduction to our China Re Group's performance in the first three quarters of the year 2023. The figures are on a year-on-year basis. The company's results announcement is going to be focusing on the different business sectors and the international standards. The business sectors have the different divisions. The insurance incomes and net profits of the group in the first three quarters is CNY 1,440 million and CNY 2,719 million respectively. The net profit is around 10%. We have grabbed the good opportunities from the overseas market. The underwriting profit of the P&C has registered a very rapid growth.
P&C sector, not including the Singapore sector, has registered CNY 41,043 million. That is a 12% growth. The general net income has been growing quite rapidly while the underwriting profit is also rising quite increasingly. The domestic earnings have been growing by around 6%. The overseas business, while grabbing the rapid opportunities of the increasing of the profit, as well as expanding our edges in the areas. The total underwriting insurance income has been rising for around 50%. In terms of the underwriting profit for the first three quarters of this year, the core solvency adequacy ratios have been improved quite dramatically, and we are also optimizing the business structures domestically and internationally while dealing with the unprecedented natural disasters. The core solvency ratio has been increasing quite rapidly. China Re Life in the first quarter of the year 2023.
As of September 30, 2023, the core capital is registered at CNY 35,591 million, while the available capital is CNY 45,003 million. China Continent Insurance has a core capital at CNY 21,238 million, and for short-term surety credit, we have seen a very rapid growth. The underwriting profit is better than the performance compared with last year, with a rapid growth of the first half of this year. According to the changing situations in the third quarter, we have also controlled the non-business sectors.
China Continent Insurance have seen a total revenues above the first three of the total insurance income is around CNY 39,125 million, while the net profit is CNY 441 million. The basic earnings per share is CNY 0.029. Based on the features of the reinsurance sector, the general businesses also progressing quite rapidly. Thank you very much for your kind concerns about the group.
Thank you, Mr. Xiaoxuan for your kind introduction. Now the floor is open for questions. For the interest of time, please limit the questions within two, and please identify your affiliate information to be named before the questions. Now we are going to give the floor to the first interactive. Thank you. We are going to please press the star one before the questions. The first question is coming from American Securities with Isabel. Please.
I have two questions from my side. The first question is that we have seen a very turbulent capital market since the third quarter. What is going to be the impact towards the performance of the company? My second question, we have seen a very rapid growth in the net profit in the first three quarters of the year 2023. What is the reason behind this?
Thank you. Thank you so much for your kind questions. The first question is about the investment return. We are going to give the floor to Mr. Li. The second question is about the general outlook of the group. We are going to give the floor to the Vice President.
Let me take the first question about the fluctuations and ups and downs in the capital market. Currently, the world political and economic situation is working on an uneven path. This is also posing a lot of pressures in the domestic market as well as the capital market in China. From our perspective, we have a very optimistic perspective about the Chinese economy and its outlook. We believe the general performance of the Chinese economy and the future is not going to be changed. We still have a very huge room for further development. We are confident about the future of the Chinese economy.
In the long term, we are going to have a very optimistic perspective about the safe income assets. Under the national strategies, we are going to find our own development strategies and trying to enjoy the benefits of the reform and opening up. Thirdly, this year marks a very important period for the 45-year area. We are going to optimize the ALM needs and then generalize the fluctuations in the capital markets. We are going to adopt multiple strategies in terms of the investment portfolio. We are going to put the dividend into the secondary investment portfolio and trying to optimize the investment portfolios. Fourthly, we are going to continue to strengthen the scientific investment and researching systems in order to promote the research in the market and improve the investors portfolio. That is my answer to your question. Thank you.
I am going to answer the second question. From the beginning of this year, we are trying to optimize in our capital market while trying to, from the group strategic starting perspective, we are acquiring all of our business to be seeking growth in the midst of civilization. Based on the stated strategies guiding us through the year 2023, the general growth and the investment returns better than our expectations.
According to the data reflecting the performance of the first three quarters of the first half of this year, the net profit and underwriting profit is better than I thought. Moving to the future, we are going to keep the momentum while working on the strength in order to optimize a series of the management measures. The general trend is within our control, especially in terms of the improvement of our underwriting profitability. I see a lot of improvement. Thank you.
Now we are going to give the floor to the second investor. The next question goes to Rachel.
Thank you. Thank you so much for giving me this opportunity. I have two questions. The first question is asking the typhoons and also the heavy rains creating and wreaking havoc in China. I am actually asking, my question is directed to China Re P&C and the China Continent Insurance that this natural disaster posed a lot of profitability-related issues. For the regulatory bodies, recently, it has published a requirement for the optimization about the insurance industry. For the development of the China Re Life-related business, my question is that are there any further changes in terms of the strategies?
Thank you so much for your kind introduction. We are going to give the floor to Mr. Qi. The second question is about the impact of the regulatory bodies. We are going to give the floor to Mr. Li with the China Re Life.
Let me answer the first question. I am Li of the China Re Life. Starting from July this year, the heavy rain and the flash heavy rain is wreaking havoc across in the north part of China. This is beyond our expectations. According to the bills that we have received so far, the total compensation ratio is around CNY 170 million, while the majority of which is concentrated on the property-related compensations and compliance. The typhoon happened in June this year. It does not have a direct impact towards the China Re P&C's performance. We are going to update the relevant information on the market and analyzing the underwriting profit information to the market and publish the relevant information to the market.
Let me give you a brief introduction toward the insurance business of the China Continent. Thank you so much for your kind information. After the flash natural disasters, China Continent Insurance have stepped up the 40 products in terms of the heavy rains. The total compensation ratio, the total combined ratio is around CNY 86 million. The total high disaster during the typhoon does not create a lot of damage to the performance of the financial liquidity of the company. We are going to help the local residents to resume their normal day-to-day lives after the disaster.
Thank you so much, Mr. Li. The second question is about the regulatory new standards impact towards the China Re Group.
Let me answer the second question. The State Administration for Market Regulation recently published a new standard about the insurance sector, about the national assets that differentiated time strategies of this sector is posing a lot of requirements. Through the optimizations of the structure, we are going to steadfast the asset requirement. At the same time, through the better guideline about the insurance-related assets, it is going to better serve the real economy and the industrial sectors, supporting the overall development of the Chinese economy.
By combining with the digital world, the product world, as well as the insurance world, we are going to reduce the pressures on the market and reducing the potentials of the risk indicators. Improving the using efficiencies of the assets. Grabbing the potential opportunities while better serving the people and the market.
Now we are going to give the floor to the next investor, please. Since the beginning of the listings of the market, China Re Group Executive Group has kept a long focusing about disclosing of the information to the market. Today, we have summarized some of the questions, which is our great concerns from the market. We are going to have our communications with the investors and the analysts.
The first part of the questions is about the China Re P&C insurance. Recently, we have published a disaster relief system for our international business sector. We are trying to estimate the overall business influence toward the tech sectors and the heavy rain sectors. Recently, the conflict between Palestine and Israel is also affecting the performance of China Re Group . We are going to give the floor to Mr. Li from China Re P&C to give us a brief introduction.
According to the information we have right at our hands. According to the information, in the year 2023, the total claims from the areas is around CNY 205 million . This is right after the Turkish earthquake and the heavy floods in New Zealand. These impacts are limited. It is within the control of the high-risk categories in the capital market.
We have also observed on the third quarters of the year 2023 the typhoons created by the Pacific Ocean and due to some of the downstream structure changes. The risk is within our control. Second, it is about the impact of the Palestinian and Israel conflict. Since the beginning of the conflict, we have kept a close eye about the conflict. We are trying to summarizing our 14 products. All of our business together with Israel covers the war-related risk. The political risk analyzing team from Chaucer has reported all the relevant losses.
Later on, we are going to update the information through the official channel. Please keep a close eye about the information disclosure from China Re Group. I think this conflict has a very limited impact about the performance in our company.
We have also summarized the performance in the China Re Life. According to the risk in the market, facing the losses about the interest-related discrepancies, there are some of the concerns about the performance of the China Re Life. Another part of the concern is the property-related product. Now, we are going to give the floor to our colleagues with China Re Life to give us a brief introduction.
Let me give you a brief introduction about the net profit loss. This is going to be related to the future analyzing purpose. Our company's business structure is quite differentiated compared with the insurance companies. I think the interest gap can be measurable to the durability-related tool product. The surety credit interest-related deposit business sector is only occupying a very small proportion of the total business portfolio and our whole structures, only around 5%.
So that is to say, we are under a very small risk exposure. Moving to the future, we are going to adjust the investment return portfolio while accelerating the grabbing of the opportunities from the capital market. We are going to adopt a very conservative attitude from the market and stay to the duration matching strategies. The second part of our strategy is that in terms of the investment and the return management, we are going to work on the research from the investment and coming up with a multiple investment strategies, pursuing for the stability of the returns in the investment and improving our management capacity. That is my answer to the first question.
The second question's answer is that we are going to work on the clinical disease-related research. For example, we have come up with a product relating to the respiratory disease of the children. Second, we are going to have the insurance company to work on the health indicators to promote in this sector. Thirdly, by coordinating with these sectors, we are going to come up with a series of policies to better promote the product in the market while enhancing their capability. The adaptations of the changes of the market environment is going to be a long-term pursuit of the China Re Group. While matching the different product portfolios and stabilizing the performance in the market, it is going to be the long-term pursuit of our group.
I have for the P&C insurance-related product, the major concern comes from the two parts. The first part is that the market cares about the deposit product-related matters. This is also going to be very important for us to have an overall grasp of the underwriting profitability. Second part is about the supporting policies of the new energy-related vehicles. We are going to give the floor to Mr. Li Xiaomin to give us a briefing in this area.
For the underwriting profitability in the first three quarters of the year 2023, we are going to stabilize and have a very dynamic control in this sector. We can see that it has a very distinct difference year on year. Moving to the future, we are going to have a better understanding about the performance in the capital market.
Slowing down, focusing on the infrastructure constructions in this sector and supporting the development of the industry and fulfill our mission. Second question is about the long-term development. We have mentioned that we have thrown in CNY 1.2 billion in the NEV. Considering the changes about the energy sectors and the overall national target for the dual carbon-related areas, we are going to invest in this area to demonstrating the scale-based effect. We are still sitting on a very rapid course in terms of the overall performance, and we are going to further reducing the cost of the product. This year, I believe the automobile market is entering into the mature phase. The NEV is going to become the dominating force in the automobile sector in China. Thank you.
Thank you, Mr. Li, for your kind answer. In the asset management sector, the investor is having a very close eye about the performance in the capital market.
Let me give you a brief introduction toward the insurance-related product. There are several different features in the insurance-related sector. The focus is about grabbing the political and economic strength while enhancing the cooperation and monitoring the market with a close eye. In the asset allocation sector, we are going to adopt the multilevel investment portfolios while enhancing the investment capacity.
To put it simply, in terms of investment from the Chinese market, there is a downward trend in the overall interest. We are going to stabilizing this downward trend and grabbing the special opportunities for further asset allocation, and promoting the openness of the environment, stabilizing the performance, and trying to make sure create an environment where the investors can be assured.
While enhancing the performance in this sector, we are still having a very optimistic outlook into the future of the capital market. We are in the period where we are going to enjoy the development of the rapid growth of the Chinese economy and enhancing our performance in this sector. We are also going to adopt a long-term mindset to the capital market. That is my answer to the question.
Thank you, Mr. Jian, for your kind introduction. For the interest of time, we are going to give the floor to the final investor. Thank you. The final question comes from [Isabelle] with [Meijin Securities].
I also have two questions. The regulatory body recently issued a notice about better management towards the banks and the insurance-related product. What is going to be the impact towards the China Re Life and China Re P&C?
Thank you so much for your question. The impact towards China Re Life. is going to be directed to Mr. Li, and also the impact towards the China Continent Insurance is going to be directed to the Vice President of China Continent Insurance .
Recently, we have seen the notice about the better management for the banks on their contracts and the insurance-related products. From the long term, it is going to be better for us and for the government to regulate the market. In the recent few years, the insurance business and the insurance product have seen a very rapid growth in the banking sector. Up until now, the business in China Re Life. does not have a very direct impact under it. But for the transitions of this phase, it means that we should have a product-related performance. This means we should promote the high-quality development of the China Re Group.
Thank you, Mr. Li, for your kind answer.
For the impact about the performance in the China Continent Insurance , let me answer the question. The National Financial Regulatory Administration recently issued the notice. This notice means that we are going to gradually shifting to the competitive pricing mechanism, resulting in a lower underwriting price. In the short term, this is going to creating the competitive pricing market, while in the long term, this is going to be very helpful in the long-term development of the capital market. We are going to grab this opportunity to improve the pricing mechanisms and better allocate the resources in where it is needed the most.
Thank you, Mr. Li, for your kind answer. For the interest of time, we are going to wrap up the result announcement for the third quarter of China Re Group in the year 2023. Thank you for your long-term support to China Re Group. If you need further assistance, please contact China Re Group for further information and our IR team for further information. Thank you all.