China Taiping InsuranceHoldings Company Limited

2019 Interim Results Presentation

28 August, 2019

Forward-looking Statements

This presentation and subsequent discussions may contain certain

forward-looking statements with respect to the financial condition,

results of operations and businesses of China Taiping Insurance

Holdings Company Limited. These forward-looking statements

represent the Company’s expectations or beliefs concerning future

events and involve known and unknown risks and uncertainties that

could cause actual results, performance or events to differ materially

from those expressed or implied in such statements

2

Note (1)：Ageas owns the remaining 24.9%, 12% and 20% equity interests in TPL, TPFS and TPAM, respectively.Note (2)：PT Megah Putra Manunggal owns the remaining 45% equity interest in TP Indonesia.Note (3)：TPI own 30% equity interests in TP STI.Note (4)：CTIH owns 48% equity interest in TPFS.Note (5)：Sinopec Group Company owns the remaining 50% equity interests in TSFL.Note (6)：Starr Insurance Holdings, Inc. owns the remaining 49% effective equity interests in TP Starr Insurance Agency.Note (7)：TPL and TPI own 60% and 40% equity interests in TPIH, respectively. CTIH’s effective interest in TPIH is 85.1%.Note (8)：TPSM, TPR (BJ) and TPR (Hainan) are wholly-owned subsidiaries of TPL. CTIH’s effective interest in TPSM, TPR (BJ) and TPR (Hainan) is 75.1%.Note (9)：TPIH (HK) and TPL own 61% and 39% equity interests of TPR (SH), respectively. CTIH’s effective interest in TPR (SH) is 90.3%.Note (10)：TPL, TPI and TPPM own 60%, 20% and 20% equity interests in TPR (Suzhou), respectively. CTIH’s effective interest in TPR (Suzhou) is 85.1%.Note (11)：TPL and TPI own 80% and 20% equity interests in TPR (Nanning), respectively. CTIH’s effective interest in TPR (Nanning) is 80.1%.Note (12)：TPL, TPI and TPP own 74%, 20% and 6% equity interests in TPR (Hangzhou), respectively. CTIH’s effective interest in TPR (Hangzhou) is 81.6%.Note (13)：TPL, TPI and TPP own 74.6%, 20% and 5.4% equity interests in TPR (Guangzhou), respectively. CTIH’s effective interest in TPR (Guangzhou) is 81.4%.Note (14)：In addition to operating its own business lines, TPIH (HK), TPSM and TPP also act as investment institutions in the asset management business.Note (15)：TP Singapore has obtained life insurance business license and become a comprehensive insurance company.Note (16)：The above structure was as of 30 June 2019.

Simplified Company Structure

3

4

三期叠加

Grow business following the trend

Macro economy is in face with new situationq Increasing downside trend in economyq Rising Sino-US trade disputeq Major economies in the world start rate cut

cycle one after another

Insurance industry is ushering new eraq Strict supervision continuesq Changes to development models,

growth drivers and competitive landscape in insurance industry

China Taiping enters new stageq Confirmed development strategy for new eraq The plan of Benchmark and Empowerment is in full force

Summary

In the first half of 2019, China Taiping fully implemented the Group’s development strategy of the new era with adhering to the clear direction guided by strategy, pursuing development led by planning and solving problems by projects to achieve stable and healthy business development, internal and external synergies deepened continuously, key performance indicators surpassed their targets for the Period, TPG, with the Company as a core subsidiary, has made it onto the “Fortune Global 500” again with ranking increased by 14 places, brand value continuously increased. At the same time, the capacities of serving the national strategies were further enhanced, proactively participated in the construction of Guangdong-Hong Kong-Macau Greater Bay Area and “The Belt and Road” development, positive results were achieved in supporting the development of the real economy, contributing to ensure people’s livelihood and safeguarding the prosperity and stability of Hong Kong. The pace of financial technology application was significantly accelerated with innovation achievements continually emerging, risk control and compliance work was solid and effective, which significantly improved operational efficiency and customer service experience

Summary (Cont’d)

5

Highlights and Consolidated Results of Operations

+6.8%

Total Premiums Written and Policy Fees

+10.7%

Total Assets

+29.5%

Net Profit Attributable to Shareholders

+12.2%

Group Embedded Value per Share Attributable to Shareholders

（HK$ per share）

（HK$100 million）（HK$100 million）

（HK$100 million）

In the First Half of 2019, Realised Steady Growth of Business Scale, Operating Efficiency Enhanced Continuously

6

43.57

8,329

Highlights and Consolidated Results of Operations (Cont’d)

+13.2%

Total Premiums Written and Policy Fees

+11.2%

Total Assets

+37.3%

Net Profit Attributable to Shareholders

+12.7%

Group Embedded Value per Share Attributable to Shareholders

（RMB per share）

（RMB100 million） （RMB100 million）

（RMB100 million）

7

58

Highlights and Consolidated Results of Operations (Cont’d)

Life Insurance Businesses Grew Steadily, Overseas Life Insurance Businesses Layout Further Expanded Direct premium of the PRC life insurance* increased by 10.8% over the Last Period. With TPL's first year

regular premium from individual insurance decreased by 4.5% over the Last Period and first year regular premium from bancassurance increased by 31.4% over the Last Period, outperforming major peers

TPL's four persistency ratios of the individual agency and bancassurance channels were industry-leading, renewal premium increased by 15.2% over the Last Period

Written premium income of the overseas life insurance increased significantly, TPL (HK)'s subsidiary in Macau officially opened

P&C Insurance and Reinsurance Business Remained Steady Growth, Achieving Continual Underwriting Profit Direct premium of the PRC P&C insurance increased by 9.5% over the Last Period, with direct premium

from non-motor insurance increased by 26.9% over the Last Period, achieving continual underwriting profit

Premium income of the overseas P&C insurance increased by 10.5%** over the Last Period, with a rapid growth rate, P&C branches of HK and Macau maintained the market-leading position

Reinsurance business maintained rapid growth, with premium growth of 12.1%** over the Last Period. The P&C reinsurance business combined ratio remained at a relatively good level, and the life reinsurance business grew substantially by 24.7%** over the Last Period, achieving fast development

* Including TPL and TPP * * Calculated in HK$, and other data on this page are calculated in RMB8

Investment Income Increased Steadily, Asset Structure Continued Optimising

The investment asset scale maintained rapid growth, investment income increased steadily. At the end of June 2019, the total investment assets of the Group was HK$696.9 billion, increased by 14.6% over the 2018 year-end, higher than industry average, investment income for the first half of 2019 was HK$15.866 billion, representing an increase of 21.1% over the Last Period

Promoting further optimisation of investment platform integration and achieving significant enhancement in capacity building. In the first half of 2019, the Group promoted professional and market-oriented operation of domestic and overseas investment platforms, created an investment business system with distinctive characteristics and clear division of work, achieved remarkable results in the research-driven investment transformation and obtained better investment returns

Implementing the concept of value investment and continued optimising the asset structure. During the first half of 2019, the Group has strengthened strategic asset allocation, gave play to long-term investment advantage of insurance funds, took the initiative in adjusting the position structure, and recorded a net investment income of HK$14.996 billion, representing an increase of 20.8% over the Last Period, in which dividend income and fund dividends was HK$1.551 billion, increased by 26.1% over the Last Period

Continuously improving risk management, enhancing forewarning and active management. In the first half of 2019, the Group strengthened centralised investment monitoring, improved post-investment management and risk handling mechanisms, further refined risk classifications and actively fended off latent risks

Highlights and Consolidated Results of Operations (Cont’d)

9

03

* Others mainly include the operating results of the holding company, TPIH (HK), TPFH and consolidation adjustments

Net Profit by Business Segment

10

HK$ million 1H2019 1H2018 Change

Life insurance 8,365.38 5,736.24 +45.8%Pension and group life insurance 117.13 54.14 +116.3%PRC property and casualty insurance 305.30 205.17 +48.8%

Overseas property and casualty insurance 316.82 246.37

+28.6%

Reinsurance 220.12 401.92 -45.2%Asset management business 211.73 264.59 -20.0%Others* (453.76) (32.21) +1,308.8%

Net profit from operations 9,082.72 6,876.22 +32.1%Non-controlling interests (2,338.50) (1,667.11) +40.3%Net profit attributable to the owners 6,744.22 5,209.11 +29.5%

Life Insurance Business Review

Note1: The Group holds 75.1% of the equity interest in TPL, and 100% in TPL (HK) , TP Singapore, and TPL (Macau)

Note2: The results under the Group's life insurance business during the reporting period were mainly contributed by TPL and TPL (HK), the figures below were the results of TPL and TPL (HK) from their operations, before intra-group eliminations

11

Overseas•TPL (HK)•TPL (Macau)•TP Singapore

PRC•TPL

TPL Premiums Maintained Steady Growth, Solvency Remained Sufficient

（HK$ million）

Comprehensive Solvency Ratio

232%224%

At 30 Jun 2019At 31 Dec 2018

Direct Premiums Written

+5.0%

1H2018 1H2019

73.3% 75.9%

99,894104,891

79,56173,206 +8.7%

+8pp

12

Direct Premiums Written

（RMB million）

+11.3%

1H2018 1H2019

73.3% 75.9%

81,325

90,548

68,68259,598 +15.2%

Renewal PremiumFYP

TPL FYP and FYRP Achieved Positive Growth

FYP

1H2018 1H2019

21,86621,727

FYRP*

21,29321,212

1H2018 1H2019

（RMB million）

0.6%0.4%

（RMB million）

13* FYRP: First year regular premium

Embedded Value

135,089

At 30 Jun 2019At 31 Dec 2018

（RMB million）

In-force Business Value

Adjusted Net Worth

79,446

55,643

+13.0%

Embedded Value of TPL Sustained Rapid Growth

14

119,541

71,490

48,051

At 31 Dec 2017At 31 Dec 2016At 31 Dec 2015

98,109

58,189

39,920

82,338

42,864

39,474

73,240

35,112

38,128

+21.8%

+19.2%

+12.4%

NBV of TPL was Under Stress

NBV

1H2018 1H2019

5,768

6,377

NBV Margin

26.4%

29.9%

1H2018 1H2019

（RMB million）

-9.5%-3.5pp

15

Persistency Ratios of the Individual and Bancassurance Channels Kept Leading the Industry

BancassuranceIndividual

Note: According to communications with peers, TPL was No.1 in both Individual and Bancassurance Channels in terms of 13th month persistency ratio

At 30 Jun 2019At 31 Dec 2018At 31 Dec 2017

92.0%93.1%

94.5%

95.8% 96.0%96.6%

At 30 Jun 2019At 31 Dec 2018At 31 Dec 2017

91.7%

94.0%94.8%

95.8% 96.2%97.2%

13th month persistency ratio

25th month persistency ratio

13th month persistency ratio

25th month persistency ratio

16

2018FY 1H2019

4,008 2,363

30,175 20,186

112,158 82,342 Individual Agency

Group and Other Channels

Bancassurance

Notes: 1. Other channels is mainly telemarketing 2. Figures may not match totals due to rounding

（HK$ million, %）

The Proportion of Individual Agency Business Took the First Place

TPL Continued to Focus on High-value Individual Insurance Channel

17

2018FY 1H2019

76.6%

20.6%

2.7%

78.5%

19.2%

2.3%

2017FY2016FY2015FY

64.5%

33.3%

2.3%

58.1%

39.5%

2.3%

54.2%

43.5%

2.3%

In the first half of 2019, facing severe market situation, FYRP from individual insurance decreased slightly, but the growth rate still outperformed the major peers

17,13617,938

1H20191H2018

-4.5%

18

Individual FYRP Decreased Slightly, the Growth Rate Outperformed the Major Peers

Individual FYRP（RMB million）

Number of Agents

(10k, person)

8,5909,483

At 30 Jun 2018

Number of High Productivity Agents*

（person）

At 30 Jun 2019

* High productivity agent refers to agent with RMB300,000 FYRP and above

-9.4%

Reinforced Manpower Base, Strengthened Organisation Empowerment

19

The agent recruitment philosophy for individual insurance is shifting from “hiring agents faster” (agent flow) to “hiring better agents” (agent retention)

Based on the Basic Law, the implementation of professionalised organisation development model including agent selection, interview, training, exercises and management is fully promoted

Increase number of high performance agents and productivity by recruiting high performance agents and intensive training, in order to reduce cost and increase efficiency

Realise the optimisation of development model from promotion of agents scale to quantity with quality

-8.1%

+34.9%

At 31 Dec 2012

At 31 Dec 2013

At 31 Dec 2014

At 31 Dec 2015

At 31 Dec 2016

At 31 Dec 2017

At 31 Dec 2018

At 30 Jun 2019

Annual Compound Growth Rate

Number of new agents with first year monthly average regular premium over

RMB3000 up by 4%. 13th month retention rate up by 7.5 percentage points

Number of new agents with first year monthly average regular

premium over RMB3000 Agency Retention Rate

348,257333,699

1H20191H2018

+4.4%

20

Individual Insurance’s Agent Retention Remained Healthy, New Agents’ Activity Indicators Continued to Improve

（person）

6th month retention rate

1H20191H2018

13th month retention rate 24th month retention rate

Note：Additional policy through Wechat platform of individual channel means customers buy additional individual long-term policies after they buy insurance products through Wechat platform

The Number of Customers Through Wechat Platform

（10k, person）

Additional Policy Rate Through Wechat Platform

21

+518%

Wechat Platform Boosted Agents’ Business

147.7

23.9

12.511.4

51.0

96.7

Product operation shifted from traditional economic compensation to integrated service solution. “ Gong Xiang Rong Yao ” series were launched in 1H2019, and “product+service” model was trialed. We have built integrated health protection solution for the customers, enriched product pipeline and improved customer protection dimension

Focused on critical illness

10K RMBmedical

insurance

Care insurance

海外医疗

Multiple critical illness

Cardio-vascular diseases

Overseas medical

careSpecial drugs

protection

Millions medical

insurance

22

TPL Deepened its Innovation Model of “Product+” to Promote Business Operation Transformation

Start from customer's painpoint and make up for the protection gap after critical illness

Pay attention to personalised needs, special protection fo illnesses with high incidence

Make up for the care protection gap caused by illnesses and accidents

Economic compensation is combined with overseas medical service

Hospitalisation cost reimbursement is combined with medical arrangement

Solve the cost of drugs while at the same time provide drugs purchase channel for the customer

Make up for the care protection gap caused by illnesses and accidents

Health Insurance Premium

In 2019, Bancassurance channel promoted protection business vigorously, continued to explore “blue ocean field”, and achieved health insurance premium RMB240 million, increased by 33.3% over the Last Period. At the same time, whole life insurance premium increased by 42.8%, among them, the trial of high-end whole life insurance product which has higher protection and better value expanded gradually, focused on exploring high-end customer groups

From the proportion of main products, the proportion of whole life insurance increased by 4.9 percentage points, the proportion of health insurance increased slightly (0.3 percentage points)

Whole Life Insurance Premium

Major Insurance Premium Proportion

（RMB100 million）

1H20191H2018

1.8

2.4

1H20191H2018

18.0

25.7

1H20191H2018

Whole Life Insurance

62.8%

Whole Life Insurance

67.7%

Annuity Insurance

and Others 31.1%

Health Insurance6.1%

Health Insurance6.4%

Annuity Insurance

and Others 25.9%

Achieved Initial Success in Deepening Bancassurance Transformation, Protection Business Achieved Significant Growth

+33.3%

+42.8%

23

（RMB100 million）

TPL (HK): The Overall Strength Continued to Improve TPL (HK) achieved premium income of HK$1.782 billion, increased by 73.4% over the Last

Period Premium income including universal life insurance reached HK$7.861 billion, increased by

104.7% over the Last Period, the overall strength continued to improve Market ranking and influence promoted continuously, asset scale exceeded HK$40 billion,

subsidiary in Macau officially opened

1,782

1H20191H2018

Premium Income*（HK$ million）

1,027

* Excluding the premium income of universal life insurance

40,592

At 30 Jun 2019At 31 Dec 2018

Total Assets（HK$ million）

24,128

+73.4% +68.2%

24

P&C Insurance and Reinsurance Business Review

Note 1: The Group holds the 55% equity interest of TP Indonesia, and 100% equity interest of other companies above mentionedNote 2: The figures below are the results of these companies from their operations, before intra-group eliminations

25

PRC• TPI

HK & Macau• CTPI (HK)• TP Macau

Overseas• TP UK• TP Singapore• TP Indonesia

Reinsurance• TPRe• TPRe (China)

Direct Premiums Written

（RMB million）

Comprehensive Solvency Ratio

189%

At 30 Jun 2019

225%

At 31 Dec 2018

PRC P&C Insurance: Premium Income Grew Steadily, Continued Making Underwriting Profits, Solvency Remained Relatively Sufficient

13,66012,475

1H20191H2018

+9.5%

Combined Ratio

1H20191H2018

26

Loss RatioExpense Ratio

99.5% 99.8%

Overseas P&C Insurance and Reinsurance: Premium Income Maintained Rapid Growth

Overseas P&C Direct Premiums Written

Reinsurance Premiums Written*

（HK$ million） （HK$ million）

+10.5%

+13.4%

+5.2%

+12.1%

* Including business of TPRe (China) and excluding universal insurance

27

Overseas P&C HK & Macau Other Overseas

1H20191H2018LifeNon-life

1H2018 1H2019

8,538

9,568

Combined Ratio

Overseas P&C Insurance and Reinsurance: Combined Ratio Increased Over the Last Period

* Non-life reinsurance business

+0.9pp +0.5pp

28

+1.7pp

1H20191H2018

Overseas P&C and Re Overseas P&C Reinsurance*

• TPP

Pension and Group Insurance Business Review

Note1：The Group holds 100% of the equity interest in TPPNote2：The figures below are the results of TPP from its operations, before intra-group eliminations

29

Enterprise Annuity Entrusted Assets

95,663

85,292

At 30 Jun 2019At 31 Dec 2018

（HK$ million）

Enterprise Annuity Invested Assets

104,435

95,265

At 30 June 2019At 31 Dec 2018

（HK$ million）

1H20191H2018

3,491

3,132

Premiums Written（HK$ million）

+12.2%

+9.6%

Pension and Group Life Insurance Businesses: Enterprise Annuity Kept Rapid Growth Over the Last Period

-10.3%*

30

Enterprise Annuity Entrusted Assets

84,151

74,733

At 30 Jun 2019At 31 Dec 2018

（RMB million）

Enterprise Annuity Invested Assets

91,867

83,471

At 30 Jun 2019At 31 Dec 2018

（RMB million）

1H20191H2018

2,842

2,704

Premiums Written（RMB million）

+12.6%

+10.1%

Pension and Group Life Insurance Businesses: Enterprise Annuity Kept Rapid Growth Over the Last Period (Cont’d)

-4.9%

31

Technology Empowerment

32

Strengthening technology support capabilities

Strengthening operational service capabilities

Operation guarantee capability

R&Dcapability

Information security guarantee capability

Service supportcapability

Strengthening technology support capabilities

Construction of three databases

Construction of three R&D Centers

Centered on the three databases on three premises and based on the R&D Centers, we aim to improve operational support capability, R&D capability, information security guarantee capability and service support capability

Taiping Financial Operational Service (Shanghai) Ltd. was created to achieve a leap forward improvement in operational service capabilities

Build modernised operational

service support system

Preparation and operation

simulation run simultaneously

Continuous optimisation

of operational capability

Continuous expansion of overseas operation support

Continuous improvement of operational efficiency and service quality

Continuous strengthening of business risk monitoring

Double Strengths Program of Technology + Operation

33

In the early stage of rapid business growth, the Group resources focused more on the business and thus technology capabilities were lagging behind. Against the background of Internet Economy and rapid development of fintech, China Taiping initiated the Double Strengths Program of Technology + Operation in 1H2019, which separated the operation and technology functions within the scope of TPFT and turned them into two independent entities. Such move will build stronger technology support capabilities and operational service capabilities for the implementation of the Group’s new era development strategy, and as a result provide a strong support to the development of the Group’s future main businesses.

New Generation CoreUnderlying Support

Ecosystem

E-salesSales Support

Ecosystem

• Tools platform for the Group sales team management and business development

• Planning and construction of E-sales platform that covers pre-sale, sale, and post sale. Use of technology to empower sales

• Currently Phase I functions of the platform has entered pilot stage. Taiping Baobao and other segments' role in empowering business has started to be seen. Next step is to upgrade the platform and further promote its use

Empowering Business

34

Taiping TongCustomer

Service Ecosystem

• The Group integrated customer service platform• Launched in 1H, covering three main categories

and 100+ functions in 6 subsidiaries in mainland, Hk and Macao, it provides customers with one stop and full scenario integrated service, which could effectively enhance customer stickiness and increase interaction frequency between sales team and customers

• Next step is to keep improving the platform and strengthen its promotion

• New generation core business system platform for the Group’s PRC and overseas businesses

• Restructuring plan for the Group’s new generation core business system and part of more urgent overseas institution’s core systems were completed in 1H, which strengthens back office IT support for business development

• Next step is to implement the plan and realise upgrade for various core systems in Life, P&C and Pension

Empowering Management

Yixiang Taiping Integrated Data Platform

Admin support platform for the Group’s non-sales staffDevelopment of four segments including Office, Communicat ion, advert is ing and service were completed and small scale pilots were startedNext step is to continue to improve the functions, gradually connect with third party resources, and promote within the Group, which could help various subsidiaries under the Group to achive compliance, efficiency and low cost in their daily office operation

The Group’s integrated data management platformGovernance and platform construction consulting and planning for the management system, standard system, platform design and construction path were completed in 1H2019Next step is to implement the plan and gradually r e a l i z e t h e u s e o f d a t a a c r o s s c o m p a n i e s , departments and systems within the Group in management, so as to meet the needs of marketing, service and management

Empowering Management

35

Investment

36

（HK$ million）

Insurance Funds Investment in Assets

608,295

696,860

Allocation of the Group’s Insurance Funds

Note: Long-term equity investments classification is added in the investment portfolio for the Period. Furthermore, the effect of consolidation adjustment on structured products is also added. The 2018 year-end investment portfolio data have been restated for comparison purposes

+14.6%

37

% of Total At 31 Dec 2018(Restated)

At 30 Jun 2019

Fixed income 82.0% 80.0%

Debt securities 47.6% 46.9%

Term deposits 10.5% 9.1%

Debt products 15.9% 15.8%

Other fixed income investments 8.0% 8.2%

Equity investments 12.4% 13.6%Equity securities 5.1% 6.1%

Investment funds 4.9% 5.0%

Other equity investments 2.4% 2.5%

Long-term equity investments 1.7% 1.6%

Investment properties 2.9% 2.7%

Cash, cash equivalents and others 1.0% 2.1%

Cash, cash equivalents 3.8% 2.8% Securities purchased under resale agreements/ securities sold under repurchase agreements

-2.8% -0.7%

Total 100.0% 100.0%

At 31 Dec 2018( Restated )

At 30 Jun 2019

n Share of results of associates and joint ventures

n Net realised and unrealised investment gains

n Net investment income

n Annualised total investment yield

Investment Income of the Group’s Insurance Funds

Notes: 1.Including the income generated from asset management products, funds etc., that has been classified as share of results of associates and joint ventures. 2.Including the income from the spread of investment securities, gain or loss on changes in fair value and impairment loss of investment assets. 3.Including the interests income from deposits, interests income from debt financial assets, dividends from equity financial assets, rental income from investment properties and deducting interest expenses on securities sold under repurchase agreements. 4.In the calculation of total investment yield, as the denominator, the average investment assets takes into account the effect of securities purchased under resale agreements and securities sold under repurchase agreements. When annualising the total investment yield, the interests income from deposits, interests income from debt financial assets, dividend from equity financial assets and rental income from investment properties and deducting interest expenses on securities sold under repurchase agreements were multiplied by two.

+21.1%

4.46% 4.73%

15,866Net investment income increased by 20.8% to HK$14.996 billion, which reinforced the investment income growth base.

In the first half of 2019, the total investment income amounted to HK$15.866 billion, increased by 21.1% over the first half of 2018, the annualised investment yield increased from 4.46% in the first half of 2018 to 4.73% in the first half of 2019.

2

3

4

1

38

13,103

1H2018(Restated)

1H2019

Debt Investment: High Credit Ratings of Debt Asset

PRC bonds investment represented 82.5% of the total debt investment. Within the PRC bonds, 99.6% were high rating bonds, such as government bonds, financial policy bonds, interbank deposits, bonds with AAA ratings and A-1 short-term financing bonds. Investment grade bonds with BBB ratings or higher reached 100%

Foreign bonds investment constituted 17.5% of the total debt investment, of which 68.8% were investment grade with international ratings, while the remaining were issued by government and large corporations, with adequate credit enhancements

39

Credit Ratings of PRC Bonds

Real Estate Financial Investment Debt Products

Real estate financial investment debt products of approximately HK$28 billion, represented only 3.4% of the total assets

The credit ratings of the real estate financial investment debt products were relative high, with major projects located in tier 1 or developed tier 2 cities

Purchased External Financial Products

Purchased external financial products of about HK$56.4 billion represented 6.8% of the total assets, the ratio increased by 0.9 percentage points over the 2018 year-end

Within the purchased external projects, 100% of them were with AAA ratings, mainly were from real estate, non-bank financial industry , transportation, comprehensive, commercial trade, etc.

The Proportion of Key Risk Exposure Accounting for Total Assets Remained at a Low Level

Note: Including exposures to each other, which is not directly in the total

Alternative investments held by the Group amounted to HK$157.4 billion, representing approximately 18.9% of the total assets, from which the ratios of trust plans and special asset support plan financial products increased, investment portfolio further diversified

The credit ratings of the PRC financial investment debt products remained relatively high, products rated AAA accounted for 95.3%, products rated AA+ accounted for 4.7%

Alternative Investments: High Credit Ratings, Risk Manageable

40

Alternative Investments Credit Risk Profile

Regarding investment types, infrastructure creditor’s scheme and real estate creditor’s scheme accounted for 40.1%, trust plans accounted for 40.3%, asset management products and asset support scheme took a share of 10.2%, and the rest of 9.4% are overseas bond funds and convertible bonds

In terms of credit enhancement, quasi central government debts/bank guarantee and credit enhancement free products cover 22.8%, large-scale enterprise guarantee covers 19.2%, local state-owned enterprise and other guarantee products 45.2%, mortgage/pledge and priority inferior products 8.5%, the others 4.3%

Outlook

41

In the second half of 2019, China Taiping will further promote the development concept of “Taiping for Your Peaceful Life , fully implement the “Empowerment Plan”

01

02

03

04

05

Fully Implementing the "Empowerment

Plan"

Forge core advantages through Product Empowement

Improve quality and efficiency through Management Empowerment

Seize commanding heights of development through Technology Empowerment

Achieve breakthroughs in crucial areas through Resource Empowerment

Stimulate the vitality through Mechanism Empowerment

The Group will stick to its strategic direction, pace its efforts and plan its actions with full picture in mind. It will proactively respond to the market changes and speed up its high quality development. While striving to implement its new era development strategy, it will also ensure the completion of annual business goals. All in all, China Taiping will forge ahead towards the goal of “Building a Globally Competitive Internationalised Modern Financial Insurance Group”.

Outlook: Fully Implementing the “Empowerment Plan”

42

Outlook of Life Insurance Business For PRC life insurance, Continue to push forward the improvement of business structure, promote the

productivity of business teams, at the same time, to enhance customer service and business supporting level through product innovation, process transformation, technology application and service optimisation

For overseas life insurance, Adhere to the requirement of high-quality development, in the case of maintaining steady growth of business, gradually improve the business quality. Achieve an efficient start of life insurance in Macau and Singapore, and achieve rapid and healthy development

Outlook of P&C Insurance and Reinsurance Businesses PRC P&C insurance will closely follow the Group's development strategy of the new era, further promote

the upgrading of motor insurance, deepen the transformation of non-motor insurance into serving national strategies, promote the continuous optimization of business structure, and achieve high-quality development

Overseas P&C insurance will continue to serve national construction of “The Belt and Road”, adhere to market orientation and international orientation, strengthen the internal and external synergies, increase its efforts in product innovation and improve customer service level while exploring deeply into local customer resources, and continue to enhance the core competitiveness

Reinsurance business will further enhance the ability to serve major strategies of the Group and promote international business layout to transform from a market follower to a market leader and continuously enhance its influence in the industry

Outlook (Cont’d)

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Investment In the second half of 2019, global economy is in face with higher uncertainties.

China’s economic growth continues to be under stress. Sino-US trade negotiation will cause greater uncertanties to global capital market. Stock market is affected by companies’profitability decline but the valuation level is at historic low. In the long run it has good allocation value. There might be stage-based allocation opportunity for bond market with the fluctuation of intereste rate, but we still need to pay attention to the trend of credit risk

Against such background, the Group will fully leverage the long term investment advantage of insurance funds and strengthen main category asset allocation, promote quality long term equity investment and allocation on high dividend payout stocks. It will do well in maturity and category selection of bond assets, optimize allocation structure and improve investment yield

Based on the principle of serving national strategy and supporting real economy, the Group strives to promote high quality development of its investment business and develop Health, Elderly Care and Healthcare businesses surrounding insurance business, so as to build a development landscape where insurance, investment and industries are growing in a virtuous circle

Outlook (Cont’d)

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Questions and Answers

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