Ladies and gentlemen, good afternoon. Welcome to the 2022 Interim Results Announcement of the CPIC Group. I'm Su Shaojun, Board Secretary of the CPIC Group. Now, given some of the resurgence of this COVID-19 in China, to protect the interest of our investors, we are conducting this announcement online, and it will be conducted in Chinese with simultaneous interpretation into English. We'll have a Q&A session online, and of course, you can play back the video later on after the meeting. We are continuing to protect the interest of our small and medium-sized investors. Actually, before this announcement, we have already issued notices and have also collected some questions from medium and small investors.
Now, let's introduce the panel. You can see on site in Shanghai, Mr. Fu Fan, Group President, and Mr. Zhang Yuanhan, CFO and also Chief Actuary of CPIC Group, and Mr. Zeng Yi, General Manager of CPIC P&C, and Mr. Cai Qiang, General Manager of CPIC Life, and Mr. Yu Rongquan, General Manager of CPIC AMC. Of course, Mr. Zeng Yi, Cai Qiang, and Yu Rongquan, well, will join with us for the first time for this release. Our independent directors, Ms. Liu Xiaodan, CHEN Jizhong , LAM Tyng Yih , Elizabeth also joined online. First of all, let's have a presentation on the performance to be followed by Q&A.
Good afternoon, everyone. Welcome to this results announcement. It's my great pleasure to share with you our performance in the first half of this year. Now, given this kind of, well, uncertain environment, and difficulties in China and around the world, especially COVID-19, we faced a lot of, well, challenges. With the backing of our shareholders and the board, we took the initiative to overcome the difficulties and took the measures to control the pandemic and boost our business. We adhere to high-quality development and deepened our business transformation to pursue channel diversification, accelerated our healthcare and elderly care business deployment, and delivered further progress amid stable business performance. For some numbers, our GWP reached CNY 242.5 billion, up 8.0% year-on-year. Our OPAT were CNY 20.1 billion, up 9.9% year-on-year. Group net profits fell by 23.1%, and our EV reached CNY 501 billion, growth of 2.2%.
Our total number of our customers reached 170 million, and our group AUM reached CNY 2.74 trillion, up 5.4% from the end of last year. We maintained a solid capital position with our comprehensive and core solvency margin ratio on the CET1 at 290% and 201% respectively. Despite the impact of a CET1, the solvency margin ratios of the group, CPIC Life, CPIC P&C, maintained sufficient levels and complied with regulatory requirements. Our group OPAT attributable to parent stripped out short-term investment movements, changes to evaluation assumptions, and impact of material one-off factors on the basis of net profits. During the reporting period, we posted CNY 20.1 billion in OPAT, up 9.9% of this, and that from Life was CNY 15.2 billion, up 6%.
EV-wise, it grew 2.2% from the end of last year. In terms of composition, our adjusted net worth reached CNY 296 billion, up 3%, and our group value of in-force business was CNY 213 billion, up 1%. In terms of contribution, it mainly comes from expected return on EV and MBV. We see an increase of EV and a slowdown of MBV growth. MBV's contribution to EV movement has diminished. At the same time, EV movement was also impacted by investment in return variance and the profit distribution. While maintaining stable business performance, we accelerated the deployment in health and elderly care to improve the supply of our products and services. Our Family Doctor system covered 2.8 million registered users.
We also launched the Jia An Xin tailor-made innovative medical insurance product. For high-end, high healthcare, we've established Guang-Ci Memorial Hospital and collaborated with renowned providers such as New Frontier Health Corporation, United Family Healthcare, to facilitate the online plus offline health ecosystem. We also support China's elderly care strategy and achieved national footprint. For example, our CPIC Home in Chengdu and Dali were now in operation and have received a total of 110,000 visitors. More than 700 of the CPIC service officers reached out to customers to offer them services during the COVID-19 period. For example, CPIC P&C stood by 24/7, and CPIC Life offered four preferential measures in policy loans and benefited 450,000 customers. We also provided a package of tailor-made financial products to minimize disruption to the supply chain.
Actually, the individual customers each having 2.32% insurance policies on average, up 1.8%. The CPIC Life and the CPIC P&C won the top ranking in the first consumer protection ranking rating by CBIRC, maintaining our number one position. Technology-wise, we continued with our technology infrastructure in Chengdu and Shanghai. We also upgraded a new generation of CPIC Cloud to ensure that our service will be maintained with consistency during COVID-19 period. We also stepped up big data systems and data governance framework, and completed the integration of the data of 170 million customers. CPIC Technology officially launched to explore market-oriented mechanism. We also deepened AI applications. For example, our CPIC P&C received a smart interaction with a monthly average of 150,000 service requests.
We also have a daily average of over 100,000 attempts in customer profile verifications or online policies by CPIC Life. Well, now we turn to the business lines. First of all, Life. Given the COVID-19 impact, CPIC Life has stayed firm, adhered to high-quality deployment, development, and pursued progress while maintaining stable business performance, and demonstrated resilience. In terms of GWP, it reached CNY 149 billion, up 5.4%. Of this, FYPs amounted to CNY 43.1 billion, up by 25.8%. Recurring premiums reached CNY 106 billion, down by 1.1%. We focused on business quality management with 13-month policy persistency ratio at 87.8%, up by 6.1 percentage points. Surrender ratio fell by 0.1 percentage points. MBV was under pressure.
Actually, it decreased by 45.3% year-on-year. If we look at the quarter, in Q1 and Q2, it fell by 48.6% and 39.3% year-on-year, respectively. Of this, the MPV growth in June turned positive actually. If we look at the productivity in the first half, our monthly average agent headcount was 312,000. Of this, core agent headcount was 69,000. In terms of productivity, our core agent FYP average was CNY 32,300 , up 23.5%. Monthly average FYC per core agent was CNY 4,630, up 10.8%. Actually, during the reporting period, we actually delivered CNY 17.8 billion in GWPs for the bank channel, up 876%.
A new business premium amounted to CNY 16.8 billion, growth of more than 1,000%. We collaborated mainly with Shanghai Pudong Development Bank, Rural Credit Cooperatives, and China Merchants Bank. Our MBV went up by more than 100%, with monthly average regular pay FYP grew by 49% year-on-year. For P&C, we deepened transformation, intensified business quality control, and improved our combined ratio. In the first half, GWP reached CNY 91.6 billion, up by 12.3%. Auto business GWP reached CNY 48.2 billion, up by 7.9%. Non-auto business grew by 17.6% to CNY 43.4 billion. Our combined ratio was 97.2%, down by 2.1 percentage points. Our loss ratio was 69.7%, down by 0.4 percentage points.
Expense ratio went down by 1.7 percentage points. We improved the capability for P&C business and achieved a strong growth momentum. Actually, auto insurance reported a combined ratio of 96.6%, down by 2.4 percentage points, and the loss ratio was 70.3%, down by 2.4%, and the expense ratio stayed the same. The share of NEV premium increased by 3.1 percentage points to 6.6% of, 6.6% year on year. Our overall improvement for non-auto business, with a combined ratio of 98.4%, down by 1.5 percentage points. We also developed a business in medical insurance for major diseases, actually, medical poverty reduction. Health insurance reported CNY 10.5 billion in GWPs, up 28.2%.
For agricultural insurance, we seized the opportunity of rural invigoration strategy, with GWP for H1 at CNY 9.3 billion, up 38.1%. Liability insurance, we actually collaborated with local governments and offered specialized, differentiated, and customized insurance products with GWP at CNY 8.3 billion, up 23.2%. For asset management business, our group AUM grew steadily. By the end of June this year, our AUM totaled at CNY 2.74 trillion, up 5.4%. The group in-house AUM was CNY 1.94 trillion, up by 7.1%. Third-party AUM, nearly CNY 800 billion, up by 1.3%.
Given the market challenges, we persisted in the dumbbell shaped asset allocation strategy to increase allocation into long-term T-bonds, and also enhance management of reinvestment risk, and also moderately increase investment in alternative assets, including private equity, investment property, to improve investment return. Looking at the structure, our share of the fixed income investments stood at 76.4%, up by 0.7 percentage points. Equity investment was 20.4%, down 0.8 percentage points. Of this, stocks and equity funds accounted for 10.5%, decreasing 0.6 percentage points. We continue to enhance AUM. For the first half of this year, our net investment income totaled CNY 39 billion, up by 10.2%, mainly because of increased dividend income on equity assets.
Our annualized net investment yield reached 3.9%, down by 0.2 percentage points. Our total investment income amounted to CNY 38.6 billion, down by 21.9%, mainly because of the gains in securities tradings. Our annualized growth rate of investments as net asset value fell by 1.5 percentage point to 3.3%. The 10-year average net asset yield, total investment yield, and a comprehensive investment yield were 5.0%, 5.4%, 6.1% respectively, all exceeding long-term investment return assumption for EV. We remain prudent in our risk exposure and strive to enhance credit risk control.
We actually-- 98.2% of our enterprise bonds and the financial bonds issued by non-government-sponsored banks had the issuer rating of AA or A-1 or above. Of this, the share of AAA reached 93.3%. Of non-public financing instruments of external credit rating, the share of AA+ and above was 99.6%. Of this, the share of AAA was 95.8%. The NPFIs were either exempt from debt issuer external credit rating or secured with credit enhancing measures. Now, in terms of sector, we are mainly invested in infrastructure, real estate, communication, transportation for non-public financing instruments. We are committed to long-term value growth.
In the second half, we will persist in high quality development, deepen transformation of core business segments, promote upgrading of development mode, focus on key structures, key areas of healthcare, big data, and integrated regional development, and enhance CPIC service, fully integrate ESG into our business operation, and foster major risks to ensure healthy and stable development. We're confident that despite the challenges, a new window of opportunity is emerging, which calls for adherence to the right direction and the pursuit of a high quality development with unwavering determination.
That concludes my presentation. Thank you.
Thank you, Mr. Fu Fan, for your presentation. Now we enter the Q&A. You can raise your question over the phone or online. For the online questions, we will select a few of them to answer them on-site. Of course, we will also respond in text on the online channel. If you want to raise a question, please press star one to raise a question. Please identify yourself and your employer before you ask the questions. Please ask no more than two questions. Thank you for your collaboration. Also, could you please make sure you are in a quiet environment, and please do not use the speaker mode.
Well, let's welcome the first question. Well, from Sun Ting from Haitong Securities.
Thank you for the presentation, Sun Ting from Haitong Securities. First of all, congratulations on your quite good performances in H1. I actually have two questions for life business. First of all, for Mr. Cai, you see the Changhang action plan or Changhang transformation now is actually started, and you have a new compensation scheme. Now, how do you view the Changhang transformation in terms of the results and the effects? And what are the difficulties? What are the good results or lessons learned? What are the specific measures in the future?
Secondly, we also look at the new business value margin actually dropped quite a lot. So why is the drop? What's the reasons, and what's your expectation for the future? Are they going to remain low, or are you going to improve them, improve the MBV margin, I mean? And what about the positioning of your bank channel? Because you see a lot of growth in the new premium for the bank channel. Now, that is actually beyond your expectation. What's your positioning for the bank channel? Thank you.
Thank you for your questions. Now, the question about the Changhang action plan. Now, actually, it was launched in January first, last year. It's a five-year plan. Actually, it was, we had a 18-month roadmap after one year's design. Now, this 18-month transformation roadmap was launched because of the challenges for the whole life industry in China, not only for CPIC, but also for the whole industry. It's kind of like a supply-side reform for China's life sector. Given these conditions, and especially given the COVID-19 and also other challenges, we stick with our transformation. It's like an anti-cyclical transformation, which will certainly become more challenging, but will be more fruitful because it can address the root causes.
It was officially launched in January first of this year, especially given the new compensation scheme of the basic law. We believe 70% of the projects under the transformation, Changhang transformation are being implemented and with well, favorable results. For example, the professionalization, digitalization, and career-based team. You can see in terms of the quality of the team, you can see very clear improvement in terms of the agency team, agency sales force, in terms of, for example, the growth of core agents, improvement of productivity, activity. You see initial improvements in these regards. Secondly, channel diversification. That is value-based bank channel, value-based bank outlet, and bank team development. At the same time, our business quality indicators, for example, surrender ratio, persistency ratio.
These indicators also should also show improvement. This is our current review of the Changhang transformation, is within our expectation. Of course, there will be difficulties, first of all, because of the external uncertainties or difficulties, especially for Q1 and the Q2. If we look at the MBV numbers. In April and May, and the COVID-19 situation in Shanghai and China actually gave us some disruption. Fortunately, we see the team did not give up. They did business development online, they provide service online, et cetera. Starting from June, we see a positive trend for June for MBV. The second difficulty is because of the new model brings new behavior, and this kind of a new behavior takes time.
Previously we used product seminars to promote business, but now we need to shift to one-on-one presentation. Previously, we use mass recruitment, but now we focus on quality recruitment. Now all these takes time. In the transitional period, we need to remain steadfast, stick to our principles, stick to our strategy, stick to doing the right things. We need support on this. In terms of the future measures, I believe we should stick to the 18 months roadmap of the Changhang transformation. We continue to improve our business model, continue to develop and strengthen the strengths of our team, and continue to empower via digitalization. Especially in the second half, we will accelerate the pace. This is to answer your first question.
Secondly, MBV margin. If we look at the single product, our MBV margin has not changed, especially for our core or flagship products, be it CI products or annuity products or health products. Now, our flagship products didn't change their margin. What changed? Now, because of the change in channel mix, especially given the rise of the bank channel. Now, for bank channel, first of all, there is a strategic positioning. We promoted value-based, well, outlets. Secondly is the change in product mix, especially in Q2. After the COVID-19 resurgence, we found that consumers preferred shorter term products after the COVID-19. But we believe it is a transitional thing, it will not last. We need to build our capabilities to, well, to analyze customers' requirements.
Now, I do want to stress one point. We do not actively manage the MBV margin, but focus more on customer needs. We need more or new source of a business margin or business value. Now, the third question on the bank channel. Actually, for the bank channel, after 10 years development, especially the regulator, CBIRC, the new regulator. Actually, now they focus more. I mean, there's a total change in the big picture for bank channel. If we look at the mature markets overseas, the bank channel, actually, they take up around 50% of the total market share, especially in terms of the value creation of insurance, because banks now pay more attention to customer needs. They pay more to intermediary business. It's not like a winner gets all. Banks focus more on the long-term brand or long-term service for the customers.
Given all these big conditions or big trends, we believe the bank channel will be a very important second pillar for the distribution. It's not a short-term thing. I believe for bank channel, we still focus on three core strategies. First of all, high value customer, especially private bank customers. Secondly, deep collaboration or partnership. It's not a massive cooperation. We'd like to work with partners which have alignment with our strategies. We'd like to focus on resources on those strategically aligned partners for long-term collaboration. The third, thirdly, this kind of high-quality team to support bank in their sales. That's the strategy for banks. Thank you.
Thank you, Mr. Cai. Let's welcome the next question.
Thank you for giving me this opportunity. I'm Zhou Cheng from Credit Suisse. Now, first of all, congratulations on the growth of OPAT. I have three questions. First of all, you see, we noticed that the monthly average number of agents dropped quite a lot. Agency channel is a very big channel for life company. Of course, we noticed the improvement in quality. What about the numbers? It dropped quite a lot. Is it because you transform too quickly?
Second question about the OPAT, group OPAT. We look at the residual margin, actually dropped by 0.8%, but the OPAT was up by 6%. What are the driving forces for OPAT, or operation variance or et cetera? I mean, what are the driving forces for the OPAT? What is the picture like in long-term or medium-term future? Lastly, about the market. I mean, the dropping interest rate. What about the capital market? How to adjust the reinvestment risks, and what's your investment strategy? Are you going to enhance your equity investment to enhance long-term or higher return? Thank you.
Well, maybe I answer your first question, Charles. Now, about the drop in the total number of agents. Now, we understand that, for agents, agency force in the supply-side reform, I mean, if we look at the second curve, now we need become more professional and more career-based sales force. So starting from last year, we actually responded actively to the requirement from CBIRC to tighten the validation requirements to remove this kind of fake agents. So if it is fake, I mean, they will leave one way or another.
This is kind of a growing pains for agency transformation. It should be done sooner rather than later. This is the same for every industry in China. I mean, the removal of surplus productivity. If there is no cheese, then we should move on to the new cheese. Anyway, I believe we have three key things for the agency transformation. Number one is the change of our values. The core values for CPIC is integrity and prudence. We'd like to send this message out. We don't want fake agents. We would like to actually also convey this message to the investors. We'd like to give out authentic numbers to our investors.
If you do not show up for the morning meetings as an agent, if you cannot make a full commitment to the job, then maybe it's your time to move to leave. Secondly is the change of model. From mass recruitment to quality recruitment, from short-term incentives to long-term recruitment and sales, so that we can have a long-term business model. Maybe in the first half you'll see some big drop in numbers, but that's because that is different. I mean, there is a grand opening or the Kai Men Hong in China for life insurance companies. But now we don't want to do the Kai Men Hong, the grand opening. We want to smooth out.
We don't want this kind of a seasonality. This is another of our core strategies, because if you have a stable business as an agent, then your service, your capability, your reputation will pick up. Secondly, the change in capabilities, but of course it takes time. Actually, you see, for us, we don't want the agent leaders to keep the fake agents so that they can maintain their leader status. We'd like to give the agent leaders a transitional period of maybe two years, three years, so that they can use the period to build up a new team. We do have this kind of a transitional period for agent leaders. We want the change in our business model. As a result, actually, we are glad to receive a lot of support from our agents, agent leaders and also our staff.
We already see some very good points, good results.
Let me answer your second question about OPAT. OPAT for first half was CNY 20.1 billion, up by 9.9%. For OPAT for P&C, it grew quite fast, 20.3%. That's mainly because of the drop in loss claims. For Life, it grew by 6%, also because of a drop in loss claims because of COVID-19, and also some improvement in surrender rates, and also because of the improvement of taxation. That is the reason for the improvement of Life's OPAT for CPIC Life. Let me answer your third question. Of course, on the investment side, given the drop in interest rate, we do see quite a lot of pressure for reinvestment.
Now, we believe for the macro side, for first half, we see a contraction of demands, so there's a lot of challenges. For the second half, we believe given or thanks to stimulus measures from the central government, we might see a modest recovery, for example, improvement in infrastructure. Now, for the bond market, our view is this, for the overall interest rate, the interest rate might fluctuate. Now, in terms of the yield, it will not go up sharply, but the yield curve is already quite low historically. There's some of the good factors, were already factored in. We believe the total monetary policy will not be too loose. Overall judgment is that it will fluctuate.
In terms of the allocation of fixed assets, fixed income assets, first of all, we should pay attention to the duration of our allocation. For example, especially focusing on long-term bond, T-bond, or the interest rate bond. Secondly, pay more attention to quality. Select high quality assets to actually cross the investment cycle, and also to cope with and to enhance investment return. We have actually did a lot of research on the market. Now, for example, for the equity market, now we've said we'll maintain the dumbbell strategy. Now, for the equity investment, we will diversify the type of equity investment. Apart from the equity investment, alternatives investment. In the secondary market, we'll diversify. You can see quite a lot of growth in dividend payout or dividend income.
You can see our performance equity, our performance of equity investment. We dropped much smaller than the market because we focused more on the value side of equity. In terms of dividend income, actually, it increased by more than 50% compared to last year. Secondly, about new energy or ESG sectors or new energy sectors. We enhance our allocation, for example, new energy vehicle, et cetera. Now, in the second half of this year, we also pay attention to consumption, medical sectors, transportation sectors. We are conducting market study so as to prepare for a recovery in consumption and economy. On the whole, we are quite active or positive on equity investment. We are making the preparation for high quality assets, equity assets.
Well, thank you. Next.
Thank you for this opportunity. I'm Xie Yicheng from Guotai Junan Securities. Now, it's great that you issued more information on the results announcement. We actually noticed that the size of core agents increased. So what's your standards or criteria? And will this trend continue? The second question for P&C. We see improvement in profit for P&C business. Now, of course, the COVID condition is a factor. What's your expectation or what's your forecast for the future? What about auto and the non-auto business? Is the improvement sustainable? Thank you.
For your first question about the core agents or the definition of core agents. Now, first of all, let me tell you about the change in the basic rule of the compensation scheme for agents. Now, you see, previously we focused all our resources on the Kai Men Hong, on the grand opening, but now we turn them into quarterly bonus or year-end bonus, performance-based. For the year-end bonus, it's based on the times where you can meet your monthly targets. We hope to make this change to change the behavior of our agents. For core agents, they must qualify for quarterly bonus. Now, since CPIC or China is very big, and CPIC is a big company. For different branch, they have slightly different standards or criteria for core agents.
Anyway, to become a core agent, you need to qualify for quarterly bonus. If you can qualify as a core agent, then it means that you can get a full-time job, full-time salary on the local market. You can well, make a living for your family, I mean. Now, for first half of this year, we focused on this kind of a transition for our existing agents. That's a continuous business development on a weekly and monthly basis. You can see this kind of a 20% increase in the number of core agents. For the second half, our focus will be on not only turning our existing agents into core agents, but also use them to attract new recruits. Because By becoming core agents, they increase their income, they become successful so that they can attract other potential recruits.
Also it will help agent leaders to recruit more recruitments or recruit more new agents. It's like a change from our previous ways of doing things. We should not only recruit agents, but also develop them, cultivate them, help them succeed. Spend more time on them, on the new agents to retain, to improve the retention rate.
Thank you for your question about P&C. Now, as the only listed company with headquarters in Shanghai, we are impacted quite a lot by the COVID-19 situation in Shanghai. We took a lot of measures to cope with the incident. Actually, we grow faster than the industry by 2.9 percentage points. Our auto, non-auto, and agricultural insurance, the three main areas of P&C business, all grew by double digits. Our main indicators were the best within 10 years. Of course, for the future, on the macro side, there will be both certainties and changes, because the economy will recover.
There will be a strong recovery of economy, which will give us more opportunity for growth. China will become more mobile. In terms of combined ratio, there might be some challenges. Given these macro conditions, CPIC P&C will maintain the business growth while maintaining good quality. That is to say, we will have a targeted business operation and management so that we can enhance our business operations. We will maintain the growth momentum, remain compliant. In H2, especially in Q3, we'll focus on the anti-fraud business, and also focus on business quality control, and further strengthen high-quality development, and also build up its foundation for sustainable development for the next three years. Now, given China's carbon neutrality and peaking strategy, and some stimulus policies for new energy vehicles, we believe for the auto business, there will still be room for improvement.
For the auto business, we believe the key word is to seize the opportunity and follow closely the new areas, especially the new energy vehicles. We should study this new area. For traditional gasoline vehicles, we should maintain our position. We should focus both on business growth and also business quality, while maintaining our services. That our auto business can maintain its position as a key component of P&C business. As already mentioned, the drop in loss ratio is partly because of the drop in travel because of COVID-19, but also because of our business management measures. Of course, given the end of COVID, the claims, we will see more claims returning to the normal level.
You can see for July and August, loss ratio actually went up by 1 percentage point. We need to optimize our expense management, enhance claims management, and also enhance operation and productivity. Reduce claims costs. We should enhance our team headcount for cases involving personal injuries, and also study the new model for new energy vehicles. Now, currently, combined ratio for new energy vehicle is more than 100%. We need to drop that. We need to cut that. For non-auto business, we believe we can maintain the sustainability of profitability for non-auto business. For our traditional business, now, the share is 2/3, with quite good profitability. For new business, the share is small, 1/3, but it's growing very fast, but the combined ratio is not good enough.
We need to balance new and existing sectors. More importantly, we should enhance the profitability of the new areas of business. This is a key task for us. For example, government-sponsored health insurance, we need to enhance our profitability by employing big data platform to manage the medical expenses. Also enhance or optimize the structure of government-sponsored health insurance. For example, by having a right balance between the long-term care business and the medical insurance. We should also enhance our own capabilities, enhance our project management to improve efficiency. Well, I hope that I have answered your question. Thank you.
Now, thank you. Let's welcome the next question.
Thank you. Good afternoon. I'm Jenny from Morgan Stanley. Thank you for the opportunity. I have two questions. Number one about the group. We also read the news, a lot of news about the CPIC's and, well, development in elderly care industry. Could you tell us more on the elderly sector, elderly care sector or the third pillar, that is the pension business. Also especially elderly care or elderly services, elderly care service. Also, compared to other banks or insurance companies, what's your strengths or what differentiate you?
The second question for the life company. Now, we noticed that there's improvement for productivity and MBV, productivity, et cetera. What about the trend? Are they going to continue in June, in August? Or is it a one-time thing? Thank you.
About the-- First of all, the elderly care sector. Now, on the whole, you can see for the elderly care sector. Now, on the whole, business is, well, the operation is very smooth. If we look at the apart from the Chengdu and the Dali CPIC Home, the CPIC Home in Hangzhou also opened for business in July this year. Now we have multiple sites across China. Now, if we look at the sales, this CPIC Home in Dali also leveraged tourism in terms of visitors. In terms of satisfaction of the customers, the ratio is more than 80%. In terms of SOP's, procedures, it's all improving. In first half of this year, CPIC Home received a total visitor of over 40,000 people. We also created more than 2,700 invitations to CPIC Home.
We will maintain the services and improve our operation so that the visitors, our customers, can enjoy their stay in CPIC Home. At the same time, we will establish a professional team to manage those facilities. This is our main ideas about CPIC Home and the elderly care services. For the health-related sectors, CPIC Home is only one part of our strategy. We have an overall health-related strategy. Because health-related strategy or areas is a core area of CPIC Group. Now, it helps with driving new business and also enhances our core capabilities. Now in terms of our strengths, unique strengths, first of all, we are professionalized. We stick with insurance business. Compared to peers, we are more dedicated to insurance business. This is something proven over the past 30 years. We will continue to do so in the future. We're going to extend this insurance ecosystem.
Second strength is that we are more innovative to leverage the ecosystem. We collaborate with, well, internet giants and big hospitals, et cetera, and startups. We now leverage, deploy big data and other new technologies to become more professional in this regard. Secondly, we are improving our governance. We have more professional people to run these teams and the projects. Our directors are very professional in their unique team, unique areas, so they will be able to give us good guidance.
Now, second question about Life, the trend. Now, of course, I cannot give you a forecast, but I can answer you is that if you look at the first half of this year, apart from April and May with a big impact from COVID-19, I believe February and March numbers were within our expectations. We've actually track MBV on a daily basis. It's quite stable. It's not like in the past where it fluctuated a lot. We hope this kind of maturity or stability go on into the second half. If the trend in June can continue, it will be very good. You see, because now we focus not on sheer number of agents. It's actually what matters is production or productivity.
Because if we can do the same thing, give you the same number with only half of the people, then it will be better. Because it will cut down the cost. The drop in costs this year is partly because of the reduction in rents of our office buildings, let alone other indirect costs. This is also why we should develop an elite agency team.
Oh, thank you. Now, you see the elderly care industry, I mean, CPIC Group has a lot of unique strengths. Because first of all, in terms of our products, we actually have a longer term with stable return, and we are closely involved in terms of the pillar three, the third pillar. We had a lot of experience in pension, and so we can build up a pension ecosystem.
Now, let's welcome the next question.
Thank you. I'm Li Xin from CITIC Securities. I have a question on the demand. Now we noticed that, the industry is transforming, so there's a lot of uncertainty about the household income. Some say the demand for insurance will drop. What's your view on the long-term trend for demand of insurance? Also a question for Life from Mr. Cai. If the demand is going down, now, even if you succeed with your transformation, what about CI, the sales of critical illness insurance?
Second question, P&C. We noticed a 17.6% rise in the reserves for unsettled claims. Now, the ratio of reserves versus earned premium is 85.7%. It increased compared to last year. Why?
Now, thank you for the question. In terms of the market forecast or the future demand, I would say the whole industry is transforming. Premium and the value actually now see quite slow growth, not double-digit growth, but slow growth. Everyone in the industry is exploring ways of the transformation. I believe the challenges are threefold. First of all, it is because of, I mean, an eruption of previous or accumulated problems. Previously, well, it was this kind of massive recruitment, a lot of fake agents, fake policies, so a high surrender ratio, et cetera. These kind of problems.
Secondly, we should have a new growth momentum for the industry. Because it will take time to become a professional and high-quality agency sales force. For P&C side, we have a reform of commercial auto insurance, and so that customers can enjoy more benefit. For the non-auto insurance need more innovation. All this might give us uncertainty because of a lack of data. Also we have global warming, so there is maybe enhanced possibility of a catastrophe.
Thirdly, external impact. You see the interest is dropping and the capital market is fluctuating. We face pressure for reinvestment. All this presents problem or pressure for liability side. In terms of the regulations, we have C-ROSS II, which have higher requirement for risk management of insurance companies. We also noticed China's economy fundamentals were not changed. I mean, with more uncertainty, we need more insurance. The function of insurance is more prominent, become clearer.
For example, people are made more aware of the need for insurance, given COVID-19. For the long term, we believe the changing democratic profile, and also China's strategy for new energy, et cetera, will inject new vitality for China's insurance market. We also actually read a lot of studies. We see actually there's still huge potential demand in terms of medical insurance, wealth management, pension, annuity, et cetera. To sum up, demand is still there, but it is changing. That means we need to have better provision of our services and products. CPIC will transform, will focus on customer needs. We will keep doing the right thing.
For example, the Changhang transformation to build up the new agency sales force. We will strive to meet customers' demand for insurance and wealth management, and continue to expand our insurance ecosystem. For example, the elderly care sector. For P&C, we will continue to improve our systematic capabilities to not only keep our existing business, but also develop new areas of growth. For asset management, we will continue to focus on this cross-cycle asset management. That's our key views on the market. Well, that is a very comprehensive answer. I have no addition to make.
Now, let me answer your question about the P&C reserve. Now, on the whole, it's because of the business growth. Now, for the reserve for unsettled claims, given the COVID impact, apart from the growth of business, for first half, because of the COVID, the loss claims went down a little bit, so the loss ratio were lower than usual. Given the end of COVID-19, loss claims, loss ratio will move back to normal. We actually are more cautious in our reserves provision. We made a proper revision or provision for our reserves to reflect the objective picture of the market and make the reserves more adequate. If we look at the adequacy of our reserves, we would say, now our numbers are quite reasonable.
For this kind of undue reserves, it's mainly related to the structure of our business mix, product mix.
Well, in the interest of time, we'll only have time for the last questions.
Thank you for giving me this opportunity. I'm Li Jian from Huatai Securities. Two questions from me. Number one is for investment. Now we see a lot of high-risk events for real estate companies. So what about your exposure? If you look at all your investments, what's your risk exposure for the real estate market? How big is it? What is the ratio, and how do you manage the credit risk?
Second question about the life company. We see agents, the productivity improved about 7% according to our calculation. Now our question is: What's your forecast or projection of your agents' productivity? What is your target for the productivity? Thank you.
Thank you. First question about the real estate market, exposure. On the whole, our risk exposure accounted for 5% of our total assets. 5% is quite a low number, especially for the equity stocks and REITs. For fixed income is debts, debt plan, bonds, and also real estate fund and the investment real estate. Now it's bonds and debt plans make up the biggest share. We took a look of those real estate assets. They are mainly this kind of high-quality central government-managed companies. The other companies also gave us quite high credit ratings. We believe the overall risk is quite reasonable, well under control. We will of course manage those risks according to our internal rules and procedures.
On the whole, we will actually reduce the limit for real estate exposure. On the macro side, we will have a strict control on the counterparties. We will look at the company's fundamentals, and actually we downloaded some of the credit lines for some real estate companies. So on the whole, the risk is well under control. Thank you.
Thank you. For the second question. Now for the 18-month roadmap. Now we talk about the second curve transformation. This is a little bit like your stock investment. Several phases. Phase I is that price go down and the volume maintain flat. Then price went down and the volume went down, and then the price stabilized and the volume diminishes. The last phase is we see a rise in both the prices and also the volumes. Anyway, for our agency transformation, we are experiencing both a drop in the volume and the price, quote unquote.
For the first half of this year, the picture changes. I believe we have removed most of the, or a lot of the fake agents, and now we are seeing an increase in productivity. This is a very good result. Now going forward, next step, we are going to improve, further improve the capabilities of our core agents and also the capability to recruit new agents. You might see in the next, six months, apart from the productivity increase, you will see a small increase in the number of core agents. I believe the last phase IV, will start next year. That is, 18 months to 36 months. Our ultimate goal is the five-year plan.
Towards the end of that, we hope that the average income of our core agents will be 3x the society average income. I mean, 3x the average income on the society. As long as we can do that, then we can have high quality people serving as core agents for CPIC.
Well, thank you. We also actually solicited questions from small and medium-sized investors. They care a lot about the total market conditions and also CPIC's performance and the future strategy. We have covered most of them. We also actually had a lot of questions from the online channels. Actually, I have a question from the small investors, which goes that we see a lot of stock buy-in from the chairman and also president and other senior executives. Are there going to be future stock buy-in plans, or are you going to have this kind of a employee shareholding plan?
Let me answer this question. You see, our senior executives buying a lot of CPIC stocks on the secondary market, which was disclosed properly. These actually indicates our confidence for the long-term growth of the company. This kind of confidence comes from our resolve of long-term success. You see, COVID condition is quite severe in China. Actually, 50,000 of our employees across more than 800 offices were impacted by COVID-19.
Now, our executives actually faced up to the challenges. Many of our offices were actually locked down. Our people, our executives, they actually stayed or lived in those offices to keep up the business running. We are also making a lot of progress in terms of elderly care sector. I believe all this hard work boosted our confidence in the long-term healthy growth of the company. In terms of the stock buyback and employee shareholding plan, we don't have any disclosable information as of now, but we will pay close attention to it. As required by law, we will make a close study on this topic, and we'll disclose all the proper information in due time.
Now, since we don't have enough time for any more questions, and, well, of course, you can reach out to us after the meeting by contacting our IR team. Thank you very much for your time and attention. Goodbye.