Ladies and gentlemen, welcome to attend the 2023 interim results announcement of China Re Group. I am also going to Mr. Tian Meipan , who is the Chief Actuary of China Re Group, and Mr. Li Xiaomin, who is the President of China Continent Insurance. Today's results announcement is going to be divided into two parts. Mr. Wang Zhongyao , who is with the China P&C Reinsurance, as well as [Mr. Li Xiaolei] and Mr. Li Wei, who is going to introduce the distinguished different portfolios in the different sectors. The second part of this meeting is going to be the Q&A sessions. Based on the Q&A sessions results, we are going to have a one-on-one session. Please be noted that this result announcement is only available via questions from online.
Please press the star one to connect with the Q&A sessions. Now we are going to have the result announcement.
Distinguished investors, distinguished analysts, good afternoon. Welcome to attend the 2023 interim results announcement with China Re Group. In the first half of the year 2023, facing the complicated situations, China Re Group has fully implemented the general tone of seeking progress while maintaining stability and enhancing values around the strategic goals of building a world-class comprehensive reinsurance group, and has taken new steps for high-quality development. My introduction is going to be divided into four parts. The first one is that the comprehensive improvement in operating performance. Second, in the first half of this year, the consolidated gross written premiums of the group is CNY 102,617 million , up by 16.6%. The consolidated insurance revenue of the group is CNY 48,444 million , up by 16.4%.
The net profit attributing to the equity holders of the parent company is CNY 2,012 million , up by 331.5%. Annualized ROE is growing by 4.46%. That is a growth of 3.44 percentage points growth. The reasons behind this growth is because starting from the year 2023, we have implemented the new International Financial Reporting Standards. These standards means that we should follow the consolidated written premiums according to the standards, affected by the changes in the situation. General consolidated gross written premiums of the group has increased by 16.1%. Based on this rapid growth year on year, the half year's gross written premiums exceeded CNY 100,000 million. We are also working on the key segments, optimizing our business structure. Domestic P&C reinsurance non-motor sectors is registered CNY 18,239 million, up by 15.1%. The overseas P&C reinsurance has a revenue of CNY 30,923, up by 22.4%.
The domestic health reinsurance protection type business is up by CNY 15,555 million , up by 15.2%. P&C property insurance non-motor business is CNY 15,265 million , up by 23.9%. Our underwriting result has seen a good improvement. Despite the heavy losses from the major natural disasters such as the earthquake in Turkey, the underwriting profit of the group increased significantly and reached a record high. Last year, we are still seeing quite registered revenues, among which the domestic P&C reinsurance is seeing a 99.65% growth, up by 0.09 percentage points. The overseas P&C reinsurance is 88.48%, down by 8.05 percentage points. The health reinsurance short-term protection type business is 97.5%, down by 0.89 percentage points. The primary P&C reinsurance is 100.86%, down by 2.14 percentage points. We have also optimizing the risk management area. The solvency and international ratings is also demonstrating a very resilient performance. P&C is 209%.
China Re Life is 214%. China Continent Insurance is 247%, while the group consolidated is 186%. We have remained the financial strength rating of A and stable outlook in our full global ratings. Second, we are also trying our best to serve the national interest while trying to pursue the high growth in these industries. In the first half of this year, the total underwriting revenues of our insurance is around CNY 20,369 million, and we are also serving over 500 different small and medium enterprises. That is 1.5 x the growth. In the China Re and our owned age insurance, we are also underwriting a series of these policies serving these kind of specialized enterprises and providing the financial support for these companies. We have also underwritten the first reinsurance contract with the fishery industry in China. That route initiations means that we have underwritten CNY 12 trillion.
China Re L&H is also using the risk pool as one of the major innovative types to manage these platforms, including the representations among other different domestic protection types. We are also working for the newborns. China Continent Insurance is also trying to figure out the perfect generating areas, including the healthcare industries as well as a series of the net profit product, selling over 50,000 small and medium-sized enterprises. Based on the rate-owned self-managed product, we are also trying to widen our asset management portfolios. This is how we try our best to guarantee the major product. Thirdly, we are also trying to promote the digital transformation processes. We have finished the digital transformation promises, and we are also launching a five-year plan in the future. We are also trying to initiate 12 different earmarks projects, selling the different models and also the earmarked product.
We are trying to promote the reinforced cross-insurance, cross-department management, interact with the trust, with the investment management portfolios. In our companies, we are also achieving a phased new result. Fourthly, we are also trying our best to have a whole risk management system. We are also trying to perfect our risk management portfolios in year 2023. By doing the five dimensionals, we are also trying to promote the landings of these areas. We are also working together with the risk control, risk management, and initiating the international pre-disaster management platforms that face development strategies. By working into the current geopolitical risk across the international society, we are trying to evaluate the risk that China Re is going to face under the extreme situations. Based on that, we are going to further perfect our systems, improving our capacities to deal with the risk.
Now I'm going to give the floor to the different sessions and also the representatives from the different sessions to give us a brief introduction toward the performance in the different sectors. Now we are going to give the floor to Mr. Wang Zhongyao who is the representative of China Re P&C to introduce us the performance in the P&C reinsurance.
Distinguished guests, ladies and gentlemen, I'm going to give you a brief introduction toward the domestic P&C reinsurance. The data was calculated based on the year-on-year performance of last year. Let's look at the domestic business. In the year 2023, the reinsurance premium has reached CNY 20,369 million. That is by 19%. For the different sectors, we have also grabbed the opportunities from the motor insurance. We are also seeing a 34.5% of the motor incremental. We are also exploring into the commercial agriculture insurances and focusing more on these sectors, promoting the agriculture innovations in these sectors.
We are also seeing a 33.7% in the agricultural incremental insurance. In the non-motor, non-agricultural sectors, the business such as the engineering insurance and the healthcare insurance grew rapidly, and we are seeing an 11% growth. In the year 2023, in the first half of this year, the combined ratio is 99.6%. That is the same level compared with the previous year, meaning that we are showing a very stable operations of the company. Benefited by the rapid growing of the P&C sessions, the domestic premium growth rate is continuing to exceed that of the primary insurance industries. In the first half of this year, the reinsurance premiums of the non-motor lines is surpassing 10%.
We are also trying to optimize in our non-motor lines with our optimizing basic structures. The growth rate of the reinsurance premiums has registered CNY 18,239 million. That is to say the combined growth ratios of the previous three years has been registered at 16.3%, among which the commercial agricultural industry insurance, short-term health insurance, inherent defect insurance, and cybersecurity insurance has achieved a very rapid growth. For the overseas P&C reinsurance sectors. In the first half of the year 2023, the gross written premiums is CNY 30,923 million, up by 23.4%, among which treaty session has registered CNY 11,172 million, up by 25.4%. The treaty business accepted towards it is CNY 2,751 million, up by 11.5%.
We are adhering to the general principles of optimizing portfolio, prioritizing efficiencies, seizing opportunities, and strictly controlling risk, gripping the opportunities of rising premium rates by expanding the scales of the advantageous business on the basis of efficiency, resulting in rapid growing premiums, continuously improving the contract conditions, actively reducing business with the poor operation efficiencies, and continually optimizing business structures. Although we are affected by the Turkish earthquake, the overall underwriting result has been improving continuously. In the first half of the year 2023, the overseas business in total has grown by 88.4%, that is minus 8.05 percentage points downwards, among which treaty is seeing a decrease by 13.68 percentage points. The business sectors except treaty has grown to 104.53%, up by 7.57 percentage points. I concluded the introductions of the China Re P&C reinsurance.
Now I am going to give the floor to the Chief Actuary of the China Re Group, and also the managers of L&H reinsurance, Mr. Tian Meipan , trying to give us introductions towards the China L&H reinsurance.
I am going to give you a brief introduction toward the China L&H reinsurance. In the first half of the year 2023, the reinsurance premiums of the L&H session is reaching CNY 38,262 million, up by 15.3%, among which the domestic business accounts for CNY 34,872 million, up by 33.7%, while the overseas business is seeing upward trend by CNY 3,390, up by 27.9%. The reinsurance premiums from the domestic protection type of business has grown to CNY 15,559 million, up by 13.8%. We are also trying to innovate our business structures by focusing on the traditional tracks and innovative tracks. We are also working on the medical insurance business and also other different protection type of business. We are grabbing the opportunity in the healthcare-related insurance.
At the same time, we are also trying to innovate our business models by relying on the leading positions in the industries. We have actively developed the efficient type of business such as medical insurance, continue to deepen loss protections and reductions of existing businesses. In the first half of 2023, the treaty product's underwriting ratio is 97.3%, down by 0.89 percentage points. The underwriting profit is around CNY 320 million , up by 15.2%. At the same time, we are trying to create more values via the co-competitiveness. We are entrusted to lead the industry's first mortality table computation product and the industry's critical illness incidents revenue project. At the same time, we are focusing on the key co-competitiveness insurance.
In terms of the digital sectors, we are also trying to make some of the innovations to upgrade the smart risk control systems, realize the model suggestions, upgrade on data outputs, and carried out systematic matching with leading insurers. Data is going to empower our business development, providing support for product pricing, product development, and risk weighting. In the product sectors, we are trying to keep up the guidelines of the tax professional policies, providing support for the development of the tax referral healthcare insurance product, and assisting the relevant product to launch quickly in the market. We are also providing a variety of the industrial integrated options for the health insurance product for local branches of the insurers.
We are also trying to summarize the practical experience of the Huiminbao and publish a series of the report, including the connotations, current situations, and sustainable development of the original consumer medical insurance. In the industrial integrated sectors, we are taking the hypertension, hyperlipidemia, and also hyperglycemia management as the entry point, exploring the business models of the chronic disease management and realizing the innovative integrated transformations of the insurance plus medical transformations. We have also implemented a new innovative payment models for CAR-T, and innovative product models for health insurance integrated advanced medical occurrences such as the artificial heart and artificial livers. Now I'm going to give the floor for China Continent Insurance to give us a brief introduction toward the P&C session.
Distinguished investors, distinguished guests. Let me give you a brief introduction toward the P&C insurance. The data was based on the comparisons with the year-on-year performance. In the first half of 2023, the primary premiums of the P&C sessions is registered at CNY 27,764 million , up by 30.3%, among which the motor line is seeing a revenue of CNY 12,499 million , up by 2.6%. The non-motor line is CNY 15,265 million , up by 22.9%. In the first half of this year, we are also trying to optimize the under structures, trying to improve the combined ratios. Starting from the combined ratio has been dropped by 9.42 percentage points from 110.28% to 100.86%. We are trying to continuously optimize the cost management, actually adjusting the business structures. The shares of the motor lines is seeing a downward trend of -4.7 percentage point to 45%. The share of non-motor line is up by 55%, up by 4.7%.
In order to optimizing the structures, we are also trying to make sure the quarter in these areas. I have concluded the introductions of the P&C session. I am going to give the floor to China Re Asset Management to give you a brief introduction toward the asset management session.
Distinguished investors, I am going to give you a brief introduction toward the asset management of China Re Group. In the first half of the year 2023, the global macroeconomy as well as the asset management situations have shifted greatly. The inflations overseas have continued, while the net investment income of our group has maintained a very stable performance. Facing this complicated and ever-changing situations, we have sticked to our previous principles and also prioritize the asset management with a conservative attitude, grabbing the structural opportunities.
In the net investment income, we have registered a CNY 6,990 million growth, down by 1.9%, keeping a very stable momentum. The annualized net investment yield is 3.96% down, while the annualized total investment yield is 3.27%, up by 0.5 percentage points. By the end of the first half of the 2023, the asset under our management is CNY 604,279 million , up by 41.4%. The total investment assets of the group is increasing by CNY 352,584 million , up by 8.1%. The asset of the third party under management is CNY 251,695 million, up by 146.1%. We have also optimizing the asset allocation structures, focusing on the major assets into the areas of where the market is demanded. We are also optimize the third party asset investment by managing around CNY 251,695 million .
We have also trying to keep a very stable momentum of the asset structures, optimizing the investment portfolios and keep the overall resilience. The fixed income investment is accounting for 80.3%. The equity and investment fund is accounting for 20.4%. We are also grabbing the opportunities in the market, increasingly allocated in the cash and short-term types. We are also trying to grab the opportunities for the high areas of the interest rates, trying to invest in the associates. In terms of the investments in the stocks and the assets, we are trying to get a very safe investment. At the same time, we are also trying to figure out the opportunities in the other different areas, trying to mix our assets with the fast optimizing of the new cash growth. At the same time, we are also working for the long-term portfolios for the overseas fixed income investment.
We leverage allocation values at the peak of the rate cycles for the high-grade corporate bonds and extended durations to improve the medium and long-term returns. Now I have actually concluded my introductions in the assets. Now I am going to pass the floor to our president to give you an outlook into the future.
Moving to the future, let's look at what the market is demonstrating toward us. I believe the market environment is stable and improving. Medium and long-term structural opportunities are gradually improving. Macroeconomy recovery in progress, and also the new momentum is gaining the support. After the COVID-19 pandemic, the risk structures of the industries need some of the analyzing. Currently, the insurance industry is stabilizing and recovering with a clearer trend. By building a common market across the country, we are going to have the opportunities with a large and unified market. With our ever more changes in the demand structure, we are trying to build new situations in the modern society.
The digital economy proposes us with the new opportunities. With the transformations and the upgradings of the domestic economy, we are seeing the re-improvement of the industry. The domestic industry is very resilient in terms of the development. We also actively grasp the development of opportunities of the domestic economies. China is actually opening up its door wider with ever more efforts in terms of the overseas businesses. In the first half of this year, the international investment is up by 24.2%, of which we have invested more in the Belt and Road Initiative. Second, we have also recalculated the stat sectors. The reinsurance business will increase the business screening, continue to improve the levels of the profitability.
We believe the era for the opportunity of our L&H insurance is going to come. In the recent few years, in the P&C sessions, we have launched a series of opportunities to facilitate the development in the L&H sectors. We are also promoting the revitalization of the rural areas as well as the zero-free to insurance. We are also trying to optimizing the commercial insurance as well as the direct insurance. The top level designs of insurance is unleashing the new momentums and potentials. We are also going to facilitate the development of and we are also going to continue to pursue the reform and innovations to unleash growth. Thirdly, we are actually facing very harsh conditions in the climate change. The reinsurance industry is facing new opportunities and challenges. Across the previous years, there are really some of the climate extremities.
The occurrence ratios of our climate extremities means that we should improve the performance in these sectors because of the coverage in these areas and also the wide spread of these areas. It is posing more threats to the insurance sectors, and it might create some of the risk spillovers of the insurance sectors. This also means new opportunities for the efforts of the reinsurance companies to play. In the longer term, we should have a clearer understanding of the extreme weathers and climate, trying to explore the bigger opportunities posed by the carbon neutrality, working on the green insurance sessions, and fully supporting the national energy restructuring process is going to become the future development of the reinsurance sector. Facing these new opportunities and new challenges, China Re Group is going to stick to the skill-based economic growth, underwriting more professions in these industries with a very stable growth.
We are also going to start our effort in the following four fronts, trying our best to conclude the annual results, facilitating a comprehensive world-class reinsurance sector, creating more profit to the shareholders. First, we are going to strengthen the assessment of the situation and also increasing our business resilience. We are going to actively with development of opportunities of domestic market and international markets and follow the business pace. We are going to strengthen the global foreign exchanges in the financial market research and pre actively negotiate through the risk cycles. We are also going to closely monitor climate change risks and geopolitical risks and continuously optimizing the business portfolios. Second, we are going to adhere to fine management, adhere to the efficiency first, calculating the underwriting accounts, investment accounts, and capital accounts, and steadily increase the returns on the capital markets.
Reinsurance business will increase business screenings, continue to improve the levels of profitability. The primary insurance business will promote the quality and efficiency, adhere to underwriting profit. Asset management business will optimize the asset allocation to cushion the fluctuations of the market. Thirdly, we are going to promote the transformations and upgradings and build our own core competitiveness. We are going to give the full play to the advantages of the main business, making progressive breakthroughs, accelerate the expansions of the strategic emerging business areas, and continue to create a new blue seas of business. Strengthen the guidelines of the research, encourage the implementations of new business models such as insurance plus technologies to reduce the risk and insurance plus special medicines or chronic disease management. Fourthly, we are going to pursue the reform and innovations to unleash the new growth momentum.
We are going to adhere to the strategic goals of building a world-class reinsurance group. We are going to come up with a defined strategic planning and action plan, accelerate the strategic layouts of the catastrophe company and digital technology company. Actively grasp the policy opportunities of the constructions of the Shanghai International Reinsurance Center. Actively explore and reform to improve the group's global development control systems. Strengthen the group's systematic strategy and coordination to form a competitive advantage to occupy the market opportunities. Here, I wrap up the result announcement of the year 2023 in some areas. I would like to thank all the investors and analysts for your long-term support. Now I am going to give the floor to the Q&A session. Thank you so much.
I think that we have just I give you a very brief introduction toward the internal result announcement of the year 2023 from our executives. Now the floor is open up for questions.
Please control the questions within the number of two, and please identify your facility, district, and institution before the questions. Thank you.
Dear executives, I am [Chen Yuchen] from Changjiang Securities. I want to congratulate for China Re Group to achieve such a good result. I have two questions from my side. The first question is about the profitabilities. In terms of the profit, we are seeing a new background in our industry. There are some of the fluctuations in the profits in our group. From the company side, how do we understand these fluctuations of the profit and how do we deal with it?
A following-up question, are there any adjustments of other policies in dealing with these fluctuations of the profit? Second question. It is because of this arbitrage. With the downward trend of our pricing mechanisms, is it going to affect the performance of the company? What is the company's outlook to the yearly deposits type of the product? These are the two questions from my side. Thank you.
Thank you so much for your question. I think you have a lot of questions. For the changes of the accounting standard, give the floor to Mr. Tian Meipan to answer your question. For the changes in the arbitrage, we are going to give the floor to Mr. Li Wei from China Re Asset Management to answer your question.
Thank you so much for the question. In the first half of this year, we have adopted the new accounting standards. Achieving for over CNY 2 billion profit. I would say the new accounting standards is a really complicated situation. That is to say, under the new profit system, how do we understand the profit? Under the new accounting system, obviously this is more comparable. Generally speaking, it is more transparent. If we understand this theory, we would say that, generally speaking, the new accounting standards implementations make all of our revenues and profits more transparent to the market. From the China Re Group perspective, those fluctuations in the profit means that it is actually standing out because of the new accounting standards. We are also seeing a very huge increase year on year, but the general profit is coming from the asset investment.
In the first half of the year, we are seeing a downward, the decrease in terms of the asset investment. The major reason is because moving into the future for China Re Group, the changes in the profit is due to asset side. The fluctuations from the asset side is more stable because we have adopted fluctuations in the market. We used to say, IFRS 14 standards as a very important reasons or sources for the fluctuations in the profit. But under the accounting standards of the IFRS 17, we have eliminated one of the major influences toward the fluctuations of the market. Underwriting premiums or underwriting profitability is becoming one of the major contributors to this area. In the asset side, we are adopting the IFRS 9 accounting standard.
The fluctuations in the equity is going to change the fluctuations across the company. That is to say, our trend in this area is going to create a further downward trend in this area. Actually, from the first half of the year 2023, the major reason is also because of the fluctuations in the equity side. Moving to the future, we are also hoping that we could keep a relatively stable performance of the profit. We hope to do it by the better management of the profit and our losses, balancing the asset management portfolios, improving the underwriting premiums from our companies. Improving the underwriting premiums is the major way we deal with the losses. Thirdly, we are also going to better manage the equities in the asset side. Making sure that there is going to be a downward or decrease in terms of the profitability in the equity side.
For the decrease of the interest rate effects of our company, I would say that in the past few years, with the changings of this, with the new industries replacing the old ones and also the population shifts in China, the new interest era is undergoing in China, posing more threats to the insurance industry. The difficulties for our. We are also seeing an increase in terms of the asset allocation because of these mismatches of the financial cycles of these interest rates. International financial markets is also seeing an improvement in these areas. Facing these complicated situations, firstly, we should better manage the assets and liabilities. We are going to team up our asset investment strategies with a more conservative attitude, avoid these long-term fluctuations of these assets. For this kind of long-term management, we are going to focus on the three sectors.
The first way that we are going to make the asset management cycles longer. In terms of the domestic investment, we are going to increase the allocations in terms of the interest rate liabilities. Actually, obviously, the durations in the asset side is going to always be longer than the liability side. Second, we should also see the effect of these rates as well as the equity investment before the listings. In the future, we are going to increase our assets allocated in the equities before listing. The third one is that we should also focusing on the business structures of the China Re Group. Of course, the macroeconomic cycles is posing more opportunities. The international layouts of the China Re Group means that we have a lot of flows of the international business sectors.
We are trying to combine the domestic and the international market, better manage the international situations. With the mismanagement of the economic cycles, for the lower interest rate in renminbi, while we are seeing a higher interest rate in the U.S. dollars, we are going to allocate more assets, trying to select a best window period for the international asset allocation. For example, we are going to increase the investment for the long-term U.S. funds in order to increase the long-term turnovers of our assets investment. With a conservative, long-term, and stable attitude, we are going to better manage the cash flows, better manage the sensitivities in the markets. In order to deal with any potential extreme situations, build an all-weather allocation strategies matching the risk and the complicated strategies where we are facing long-term changes in the arbitrage.
For the deposit product and also the arbitrage product, Mr. Wei Li.
For the deposit type of the product, we are seeing a very huge increase in the first half of this year. This is because of the asset liability management. This is due to a very good important investment strategy. For example, domestically speaking, some part of our business is still seeing a better arrangement in the asset and on the arbitrage allocation looking into the second half of this year. From our understanding, we are going to adopt a very conservative attitude in this area. In terms of this deposit type of the product, we mentioned some of the development reasons.
One is that using the balance sheet as the arbitrage hub, and using the two different asset portfolios and also platforms to do a good job in our dollar business as well as the RMB business for the arbitrage. Actually, for the China Re Group as well as the China Re L&H, the durations of our liability is quite long-term. I think, generally speaking, it is less than five. There is a very short gap between the two products. That is to say, for the arbitrage losses for the China Re L&H, this effect is quite small, but that still poses a lot of challenges for us to improve the ROEs in the future.
Analyst from Changjiang Securities also cares about our dividend. Actually, we have a very stable dividend policy. Every year we have one dividend in cash that is no less than 30% of the profit attributing to the parent company. I think with the implementations of the newer content standards, the ratio is going to change. For China Re Group, we are going to continue to follow the previous strategies, and based on the yearly performance as well as our strategies, we are going to come up with a reasonable yearly performance. At the same time, what kind of accounting standards should we follow is also one of the much-asked questions from the investors. We are still discussing with the regulators and also the peer companies in order to give you a better answer in this sector.
The investors also ask one of the important questions about the implementations of the accounting standards. We should take an overall perspective in these areas. One part is the IFRS 17. The other part is that the changes in the profit also means some of the challenges in the operations. We should look at the macroeconomy as a whole, and we adjusted the model. My understanding is that the IFRS 17's implementation is something that we've been working on for now many years. Generally speaking, the changes of the content standards is never going to change the very nature of our insurance business and the reinsurance business as well as our asset management business. A better accounting standard is going to be very helpful for the high-quality progresses in our company's performance, and it's also going to help us with the yearly management of our company.
The operations of the insurance and the operations of the assets might see some of the adjustment, but this is not the equivalent answer to the changes or the fluctuations in the market. We are still a group working toward a high-quality, high-stability growth.
Thank you so much for your answer.
The next question is Sun Bo with Shenwan Hongyuan Securities.
Thank you so much for your question. I'm Sun Bo with Shenwan Hongyuan Securities. I have two questions to ask you. The first question is, in the first half of this year, there's the Turkish earthquake among other different natural disasters. What is your outlook towards the catastrophe and seeing first across the year? The second question is, how do you deal with the climate change as well as the catastrophic disasters? The second question is about what is the impact of the floods of the Northern China during this summer? Is it going to affect the financial performance of your company?
Across this year, this is a year of catastrophic disasters throughout the year. In the first half of this year, the catastrophic insurance losses is around $12 billion. This is the biggest loss that we have experienced since the year 2010. You mentioned about the Turkish earthquake. From the Turkish earthquake, it is the largest earthquake since 1999, bringing around 14,000 lives across the world. This is the second cause we're hitting earthquake since the 1950s. The general losses made towards the insurance industry is around $5 billion. For our company, the major losses is around $550 million. And these kind of losses was reflected in the performance and balance sheet in the first half of this year. Generally speaking, I think it is within our expectations in the first half of this year. You also mentioned some of the ways or methods we could use to deal with this catastrophe.
How do we deal with the climate change? The way to deal with these catastrophes can be included in the following sectors. The first line is that we are seeing a cumulated result in these areas. The general accumulations for the consolidated risk means that it should be done within the identified range of the group and investors. Second, we should have a very of the models of the risk assessment model. In the recent few years, the frequent occurrence of these areas means that while doing a good job in these areas, we should also increasing the protections from the pricing mechanisms. Thirdly, we are going to arrange the allocations in these areas, trying to prevent the high risk in these areas. Fourthly, for the reinsurance sector, we have carried out a comprehensive optimization of this sector, especially for the conditions in these areas.
We have done some of the consolidations of the risk. This is going to help us to stabilize the performance. Generally speaking, the catastrophe losses of this year is within a controllable range. From another part, we are also going to adopt a series of absolute measures in order to deal with it, trying to make sure that the future operation is going to operate in a stable range. The second question is about the heavy floods hit hard in the north part of China and the northeast part of China. I am going to answer your question directly. To be frankly, the heavy floods and the heavy rains in North China and Northeast China is creating a lot of losses for our companies.
According to the information, by the 19th of August, the north part of China report 217,000 cases, accounting for the total loss of CNY 10 billion . According to calculations from our group, the total claims for our company is within CNY 600 million-CNY 800 million in the contractual payment. By combining the two ratios together, I would say that the heavy flood in the North China and Northeast of China is only affecting a very small proportion of our yearly performance. China Continent Insurance is one of the subsidiaries under China Re Group. For the heavy floods in North China and Northeast China, we are going to give the floor to Mr. Li from China Continent Insurance to answer your question.
Thank you so much for your questions. Basically, for the primary insurance, we have two aspects to report. At the end of June, we started our emergency mechanisms at the first time. The subsidiaries is working together with the group in order to better report the potential risks. By the 29th of August, that is to say, from yesterday, the losses it created for our company is CNY 129 million , and we have prepaid CNY 107 million . That is to say we have prepaid 17.4%. The claim ratio is 43.4%. In the motor sectors, the total losses is CNY 552 million . The claim ratio is 59.2%. All the compliance work is in progress. Another part we want to talk about is that the heavy floods from the north part of China and northeast part of China is not proposing a lot of changes in the financial performance of our companies.
We are going to continue our work in this area, help the citizens and also the companies to resume their operation. The heavy flood in north part of China and northeast part of China is reflecting the structural changes in our company. This is also reflecting that under the extreme climate event, the payment is becoming ever more important. We are also one of the first companies works on the catastrophe-related areas, coming up with the pricing models for the catastrophes. Currently, we have achieved some of the initial results. At the same time, we can also feel that the global climate change needs the insurance industry, the reinsurance industry to work on the calculations of that and accelerating the collaborations in the climate change areas. Thank you so much for your question.
Thank you so much, Mr. Zhong and Mr. Li. Because of the time interest, we are only available for the final question. The next question is coming from Richard.
Investors, I want to thank you for your kind questions. I have two questions from my side. The first question is that the underwriting premiums of the China Continent Insurance decreases. What kind of measures did the group take to balance the liability? About the second phase of the C-ROSS reform, we have absorbed the liability of the company decreases. How can company improve their performance in this area?
The first question is going to be directed to Mr. Xiaomin with China Continent Insurance.
Thank you very much for your question. Your question is about the underwriting premiums of the China Continent Insurance. It has improved greatly. What kind of measures did we take? Actually, in the first half of this year, in order to achieving this result, we have stick to the profit-driven model, improving the profit, as well as working on the risk management areas, achieving a decrease of the underwriting premiums year on year. We are working on the four different fronts. First, we identify the perfect regions of this first half of this year, and we are working on the actual lower cost. While we are strengthening the targets, we are also trying to support the growth in these areas. Second, we are also working on the optimizations of these areas.
In order to working on optimizing the high-risk product, we are also trying to optimizing the risk areas. Another part is that we are also optimizing the structures in the high-risk and high-profit areas. Thirdly, for one part, we are lowering down the cost on the one side while improving the profit in another side, and we have conducted a special management in the claim ratios. We are also working on the risk management, improving the results of the using efficiency. Fourthly, we are trying to work on the compliance and risk management, improving the risk management portfolios, and trying to deal with the inventory risk. We have energy to the bottom lines of the risk.
Second question is about how did we balance the skills and the efficiency? By optimizing the structures, we are balancing the structures in these areas. In the first half of the year, 2023, we have worked on the comprehensive climate-related issues, working on the healthcare product as well as the accidental product. That is how we improved the underwriting premiums in the first half of this year. In the second half of this year, we are going to optimize the performance and improving the cost while optimizing the structures. Promoting the specialized or the earmarked operations of the product and also the channels, improving the underwriting premiums of our company. Thank you. The C-ROSS Phase II reform means that it is going to be directed to Mr. Chunlei.
After the implementations of the C-ROSS Phase II reform, the major reasons is because that we are seeing a progress in terms of policy. The underwriting profit is also downward, is seeing a downward trend. To fitting this situation, for our company, we have made some of the plans. The first one is that from its roots, we should address the asset-related investment. We should improve the profitability as well as the ability to gain the profit. We should also better manage the assets in terms of the liability side. We are also going to increase the underwriting premiums, no matter for the short-term business or the long-term business or the international business or the domestic business sector.
The improvement of the underwriting yields is definitely going to improve the underwriting premiums. Second, we should also better manage the assets as well as the losses. We have also going to lower down the asset allocations in these areas. Thirdly, we should also deal with the asset management situations. For example, for the secondary credits and also the multiple platform operations. We are also trying to reallocate these numbers, no matter domestically or internationally speaking. This is going to make the asset management more efficient. Generally speaking, we could sum it up as to one word.
Dealing with the pharmacies of the liabilities is at worst, actually well prepared by the group. This is also a very good question. From a company's operation side, what do we manage? The first one is that we manage the cost. The second one is that we should manage the assets and the capitals. That is how we stabilize our operations. For the company, we are dealing with the fields as well as the efficiencies. That is to say, in China Re Group, we are working on the three synergies. Fields means growth. Cost means efficiency. Investment means return. These are the three synergies guiding our operations.
Thank you so much, Mr. Zhong and Mr. Chun and Mr. Xiaomin. Since the listings of the year 2015, China Re Group has got a long-term support and attention from the investors and analysts. On behalf of the executives, I would like to thank all of you for your long-term support. China Re Group has attaches great importance to the interactions between the capital market. We are going to work together with the domestic investors and the international investors, listening to the voices from the market, promoting the high-quality development of our group, creating more returns for the shareholders. For the interest of the time, here we are concluding the 2023 internal result announcement of China Re Group. I want to thank you, all of you, for reaching out to us today. If you want to get more information, please contact our IR team. Thank you.