China Taiping Insurance

Holdings Company Limited

2018 Interim Results Presentation

23 August, 2018

2

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

Forward-looking Statements

Simplified Company Structure

Note (1)：Ageas owns the remaining 24.9%, 20% 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)：TPSM and TPR (BJ) are wholly-owned subsidiaries of TPL. CTIH’s effective interest in TPSM and TPR (BJ) is 75.1%. Note (4)：TPIH (HK) and TPL own 61% and 39% of the equity interests of TPR (SH), respectively. CTIH’s effective interest in TPR (SH) is 90.3%. Note (5)：TPL, TPI and TPPM own 60%, 20% and 20% of the equity interests in TPR (Suzhou), respectively. CTIH’s effective interest in TPR (Suzhou) is 85.1%. Note (6)：TPL and TPI own 80% and 20% of the equity interests in TPR (Nanning), respectively. CTIH’s effective interest in TPR (Nanning) is 80.1%. Note (7)：Sinopec Group Company owns the remaining 50% equity interests in TSFL. Note (8)：TPL and TPI own 60% and 40% of the equity interests in TPIH, respectively. CTIH’s effective interest in TPIH is 85.1%. Note (9)：In addition to operating its own business lines, TPIH (HK), TPSM and TPP also act as investment platforms in the asset management business. Note (10)：Starr Insurance Holdings, Inc. owns the remaining 49% effective equity interests in TP Starr Insurance Agency. Note (11)：The above structure was as of 30 June 2018.

3

Highlights and Consolidated Results of Operations

Operating Profit Grew Rapidly and Overall Strength Continuously Enhanced

Profit attributable to owners was HK$5.209 billion, increased by 120.3% over the Last Period

Total premiums written and policy fees reached HK$130.1 billion, increased by 14.1% over the Last Period

Total assets were HK$724.0 billion, increased by 8.6% over the 2017 year-end

Group embedded value per share attributable to owners was HK$37.4, increased by 7.2% over the 2017 year-end figure of HK$34.9, while TPL’s embedded value increased by 10.3% over the 2017 year-end

4

Highlights and Consolidated Results of Operations (Cont’d)

PRC Insurance Businesses Scale Outperformed the Market, Quality of Business Continued Improving Direct premium of the life insurance increased by 3.0% over the Last Period, 11.5 percentage

points higher than market average

First year premium from individual insurance decreased by 9.2% over the Last Period, outperforming major peers; individual insurance agents increased by 6.6% over the 2017 year-end, with growth rate leading its major peers

Four persistency ratios of the individual agency and bancassurance channels were industry-leading; renewal premium increased by 49.2% over the Last Period

Single premium business of bancassurance has been cancelled and fully transformed to regular premium business, new business structure has been optimised significantly

Long term employee benefit of group business increased by 47.8% over the Last Period, with regular premium increased by 58.8% over the Last Period

Direct premium of the PRC property and casualty insurance increased by 16.8% over the Last Period, 2.6 percentage points higher than market average, achieving continual underwriting profit

5 Note: All data related in this page is stated in RMB, if not specified

Highlights and Consolidated Results of Operations (Cont’d)

Oversea Insurance Businesses Developed Rapidly, Strength of International Operations Continued Enhanced CTPI (HK)’s direct premium growth rate surpassed the market average and achieving continual

underwriting profit

TPL (HK) achieved a premium income of HK$1.027 billion and further enhanced its overall strength

TP Macau’s premium income sustained its market leadership, with a combined ratio of 64.7% and continuous outstanding underwriting result

TP Singapore’s premium income outperformed the market, with rapid premium growth in offshore business, while maintaining underwriting profitability

TP UK’s new business segment has achieved remarkable results, with premium increased by 75.3% over the Last Period

TP Indonesia’s combined ratio at 50.1%, underwriting profitability maintained at an excellent level

TPRe maintained No.1 in the Hong Kong reinsurance market, with premium growth of 30.1%. The property and casualty reinsurance business grew by 41.6% over the Last Period, with combined ratio remained at a relatively good level

6

Highlights and Consolidated Results of Operations (Cont’d)

Steady Growth of Investment Asset Scale, Investment Income Significantly Increased over the Last Period The asset scale achieved a steady growth. At the end of June, the total investment assets of the

Group is HK$577.0 billion, increased by 6.9% over the 2017 year-end; asset under management from third-party asset management business amounted to HK$424.5 billion, increased by 2.4% over the 2017 year-end

Investment income increased significantly over the Last Period. During the first half of 2018, the Group recorded an investment income of HK$13.171 billion, representing a growth of 56.9% over the Last Period, and net investment income of HK$12.416 billion, representing an increase of 27.8% over the Last Period, which indicates that the Group has well coped with the market fluctuations and laid the foundation of its income growth base

Traditional and alternative investments were prudent and active. During the first half of 2018, traditional investments outperformed the market, PRC equity investment yield outperformed CSI 300 by 2.96 percentage points; PRC held-for-trading and available-for-sale bond portfolio outperformed the CSI Bond Fund Index by 1.08 percentage points; alternative investments were inline with national strategies, which gained good returns and social effect

Fixed income asset’s credit risk were relatively low. High proportion of PRC bonds investment were with high credit ratings, the Group’s credit risk screening results shows solid credit risk management

7

Highlights and Consolidated Results of Operations (Cont’d)

Pioneering and Deepening of the Group Strategic Cooperation and Cross-selling Initiatives

In the first half of 2018, China Taiping signed Group Strategic Cooperation Agreements with China National Aviation Fuel Group. As at the end of June, China Taiping had established strategic cooperation relationships with 85 large clients

Our cross-selling initiatives achieved HK$3.637 billion insurance sales, including HK$2.913 billion of property insurance sales through TPL, HK$627 million of pension sales through TPL, HK$73 million of property insurance sales through TPP and HK$24 million of pension sales through TPI

8

HK$ million 1H2018

1H2017

(Restated) Change

Life insurance 5,736.24 1,673.99 +242.7%

Pension and group life insurance 54.14 60.87 -11.1%

PRC property and casualty insurance 205.17 202.11 +1.5%

Overseas property and casualty insurance

246.37 242.92 +1.4%

Reinsurance 401.92 478.00 -15.9%

Asset management business 264.59 249.68 +6.0%

Others* (32.21) 179.34 -118.0%

Net profit from operations 6,876.22 3,086.91 +122.8%

Non-controlling interests (1,667.11) (722.40) +130.8%

Net profit attributable to the owners 5,209.11 2,364.51 +120.3%

9

Net Profit by Business Segment

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

• TPL

• TPL (HK)

Life Insurance Business Review

10

Note: The Group holds 75.1% of the equity interest in TPL, and 100% in TPL (HK)

The following figures are the results of TPL and TPL(HK) from its operations, before intra-group eliminations

TPL: Premium Growth Outperformed the Market; Solvency

Remained Healthy

11

Direct Premiums Written

（ HK$ million）

Comprehensive Solvency Ratio

C-Ross

* Increasing by 3.0% calculated in RMB

99,894

89,267

1H2018 1H2017

+11.9%* 235%

246%

At 30 Jun 2018 At 31 Dec 2017

Further Increase in Proportion of Individual Business

TPL: Structure of Gross Premiums – By Distribution Channels

12

1H2017 1H2018

1,358 2,243

32,371 19,259

55,538 78,392

（HK$ million，%）

Individual

Group and other channels*

Bancassurance

* Other channels is mainly telemarketing

1H2017 1H2018

62%

36%

2%

79%

19%

2%

94%

96% 96%

89%

92% 94%

At 31 Dec 2016 At 31 Dec 2017 At 30 Jun 2018

Persistency ratio – 13th month

Persistency ratio – 25th month

95% 96%

97%

89%

92%

94%

At 31 Dec 2016 At 31 Dec 2017 At 30 Jun 2018

Persistency ratio – 13th month

Persistency ratio – 25th month

13

TPL: Persistency Ratios Kept Leading the Industry

Individual Bancassurance

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

14

Embedded Value

At 30 Jun 2018 At 31 Dec 2017

（HK$ million）

偿二代

TPL: Growth of In-Force Business Promoted Growth of

Embedded Value

Adjusted Net Worth

In-force Business

Value

129,418

117,368

+10.3%

69,611

47,757

77,880

51,538

+11.9%

15

TPL: New Business Value Slightly Decreased Due to the Scale of

New Policies; NBV Margin Kept Improving

NBV Margin

1H2017 1H2018

（HK$ million）

C-Ross C-Ross C-Ross

Note: the major economic assumptions and methodology used in the calculation of new business value in the first half of 2017 were consistent with current assumptions and methodology, hereinafter inclusive unless otherwise specified

New Business Value

8,115 -6.8%

1H2017* 1H2018

7,563

27.7%

29.9% +2.2pp

16

First Year Premium

TPL Individual Channel: First Year Premium Declined Slightly;

Proportion of Protection Business Further

Increased

First Year Regular Premium Structure

（%）

55.7%

0.1%

55.3%

（HK$ Million）

Short term savings

Others

Long term savings

Long term protection

22,111 22,414

1H2018 1H2017

-1.4%

1H2017 1H2018

4.1%

29.4%

0.1%

8.2%

35.9%

55.9% 66.4%

+6.5pp

55.9%

TPL Individual Channel: First Year Premium for Health Insurance

Grew Substantially and its Proportion Increased Significantly

17

Individual Health Insurance First Year Premium

（HK$ Million）

Others

Health Insurance

Individual First Year Premium Structure

（%）

1H2017 1H2018

81.4%

18.6%

58.7%

41.3% +22.7pp

1H2017 1H2018

4,186

9,280

+121.7%

Year Distribution of Critical Illness In-force Business

Insurers’ Age Distribution of Critical Illness In-force Business

TPL Individual Channel: Critical Illness Insurance New Business Grew Rapidly;

Actual Experience and Pricing Assumption for Insurers’ Age Closely Matched

18

Note: 1. based on all in-force critical illness insurance policies as of 30 Jun 2018 2. Figures may not match totals due to rounding

36.2% 46.0%

26.4%

24.1%

25.7%

21.9%

14.9%

10.3%

14.2%

7.5% 6.1%

7.3%

17.3% 12.0%

30.2%

Coverage Premium Policy

Year 1 Year 2 Year 3 Year 4 Year 5 and above

35.8%

18.9% 29.5%

10.1%

7.2%

8.7%

16.0%

14.9%

16.3%

23.4%

29.0%

24.6%

12.1%

22.6% 16.5%

2.6% 7.4% 4.4%

Coverage Premium Policy

Age 0-9 Age 10-19 Age 20-29

Age 30-39 Age 40-49 Age 50 and above

TPL Individual Channel: Agency Force Continually Increased; High

Productivity Agents Decreased Slightly

19

Number of Agents Number of High

Productivity Agents*

（person） （person）

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

409,486

384,169

At 30 Jun 2018 At 31 Dec 2017

+6.6%

9,483

10,985

At 30 Jun 2017 At 30 Jun 2018

-13.7%

20

After manpower integration in the first quarter, total agents of individual insurance had achieved breakthrough growth since April 2018, reaching 409,486 as of the end of June

Paying highly attention to foundational management, advocating effective recruitment and improving new agent retention to continually promote the effectiveness of the Basic Law and build a multi-channel sales force

Creating a 12-month production line for new staff and promoting standard training to improve the self-management ability of supervisors and establish an "effective" workforce

10 Thousand Agents

TPL Individual Channel: Agency Force Trend and Development

27.1

31.4 33.0

34.0

37.3

39.1 39.2 40.6

39.8 39.0

37.9 38.4

35.7 34.5 34.8 35.1

37.0

40.9

20.0

25.0

30.0

35.0

40.0

45.0

201701 201702 201703 201704 201705 201706 201707 201708 201709 201710 201711 201712 201801 201802 201803 201804 201805 201806

Key Indicators

21

1H2017 1H2018

6th Month Retention Rate 82.0% 78.2%

13th Month Retention Rate 48.7% 48.0%

24th Month Retention Rate 24.0% 27.8%

Monthly Overall Activation Ratio 56.4% 52.9%

Agents With Monthly RMB 10K Sales (Regular Premium) 73,321 80,476

Agents With Annual RMB 1MM Sales (Regular Premium) 2,446 2,283

Note: 1. Productivity data in this page is stated in RMB 2. Data from this page to page 22 is from traditional individual channel and does not include the Sinopec gas station project

3. Regular premium in this page is company’s assessment indicator, which is calculated as “FYP+Single Premium*0.1”

TPL Individual Channel: Key Indicators

22

Individual NBV Margin

TPL Individual Channel: NBV Margin Remained Relatively Stable

1H2017 1H2018

34.6% 34.0% -0.6pp

23

（%）

First Year Regular Premium

（HK$ million）

Premium Structure

First year regular premium

Renewal regular premium

Single premium

TPL Bancassurance Channel: Fully Transformed to Regular

Premium Business; Business Structure Improved Significantly

3,506

4,377

1H2018 1H2017

-19.9%

1H2017 1H2018

52.1%

13.5%

0.1%

81.7%

18.2%

34.4%

(HK$ million) 1H2017 1H2018 YoY Growth Percentage

Single Premium 16,864 25 -99.9% 0.1%

Regular Premium 15,507 19,234 24.0% 99.9%

With full transformation to regular premium for bancassurance in the first half of 2018,

regular premium increased by 24.0% as compared with the last period and accounted for

99.9% of the total premium

24

TPL Bancassurance Channel: Stick to Value Growth

TPL Products : Promoted Product Structure Transformation towards Value

Growth; Promoted Normal Operation of Individual Long-term Protection

Business by Focusing on Customers’ Health Protection Needs

Note: Long-term protection products refer to the products of illness insurance, accident insurance, term life insurance and whole life insurance with an insurance period of more than one year

In 1H2018, our insurance continued to focus on the needs of our customers for health protection. We promoted normal operation of long-term insurance products, and achieved a steady growth in sales

Among the top five selling products during the 1H2018, we have three long-term protection products for critical illnesses

Long-term Protection Products FYP

25

6,565

7,908 +20.5%

1H2017 1H2018

（HK$ million）

TPL Products : Promoted Product Structure Transformation towards Value

Growth; Business Mix Outperformed the Market

Bancassurance Regular Products Structure

Bancassurance was

concentrating on developing regular premium in 2018

For regular premium business, long-term products dominate, with 10 years and above products accounted for 43.5%, outperformed the market

26

46.8%

43.5%

9.7%

5-9 years 10 years above Others

TPL Products: Focus on Support Growth of Core Value Business and

Improvement of Quality

Bancassurance Product

Individual Product

Make great efforts to develop regular premium business, especially core value regular premium products

By meeting the needs of customers in wealth inheritance, retirement savings and health protection, enrich and improve product types

Focusing on customer demand for health protection to continuously optimise product structure and support synergetic development between scale and value

Strengthen the innovation of protection products, increase the supply of products, continue brand building and business development

27

28 * Does not include universal life premiums

TPL (HK): The Ranking and Influence Improved

Total Assets

In 1H2018, TPL (HK) achieved a premium income of HK$1.027 billion and further enhanced its overall strength

The direct premiums written including universal life premiums achieved HK$3,839 million, representing an increase of 237.1% compared with the Last Period

The ranking and influence continued to improve with asset scale exceeding HK$20 billion

Direct Premiums Written*

（HK$ million） （HK$ million）

20,349

At 30 Jun 2018 At 31 Dec 2017

+75.8%

11,578

1,027

1H2018 1H2017

-0.6%

1,033

• TPI

Mainland P&C Insurance Business Review

29

Note：The Group holds the 100% equity interest of TPI

The following figures are the results of TPI from its operations, before intra-group eliminations

Direct Premiums Written

（HK$ million）

Comprehensive Solvency Ratio

TPI: Premium Growth Outperformed the Market; Solvency

Remained Sufficient

30

203%

At 30 Jun 2018

216%

At 31 Dec 2017

15,323

12,082

1H2018 1H2017

+26.8%

Combined Ratio

31

TPI: Combined Ratio Kept Stable; Continued Making Underwriting

Profits

Expense Ratio Loss Ratio

48.9% 53.0%

49.9% 46.5%

At 30 Jun 2017 At 30 Jun 2018

98.8％ 99.5% 99.8% 99.8% 99.8% 99.5% 99.5%

At 30 Jun 2018

2017 2016 2015 2014

Trend of Combined Ratio

Overseas P&C Insurance and Reinsurance Businesses Review

HK & Macau

• CTPI (HK)

• TP Macau

Overseas

• TP Singapore

• TP UK

• TP Indonesia

Reinsurance

• TPRe

• TPRe (China)

32

Note：The Group holds 55% of the equity interest in TP Indonesia, and 100% in the other companies listed above

The following figures are the results of each company from its operations, before intra-group eliminations

1,736

1,212

524

2,019

1,324

695

Overseas P&C HK & Macau Other Overseas

1H2017 1H2018

+16.3%

+32.6%

+9.2%

Overseas P&C Insurance and Reinsurance: P&C Premiums Steady

Increasing; Reinsurance Developed Rapidly

33

Overseas P&C Direct Premiums Written

（HK$ million）

Reinsurance Premiums Written*

（HK$ million）

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

1H2017 1H2018

2,555 2,861

6,565

8,538

+30.1%

4,010

5,677

Non-life

Life

Combined Ratio

34

Overseas P&C Insurance and Reinsurance: Combined Ratios

Increased; Continued to Maintain Overall Underwriting Profitability

94.2% 96.4%

94.9% 92.9% 94.0%

95.1%

97.9% 96.8%

Other Overseas

+2.2pp +0.2pp +5.0pp +2.8pp

* Non-life reinsurance business

Overseas P&C and Re HK & Macau Reinsurance*

1H2017 1H2018

• TPP

Pension and Group Insurance Businesses Review

Note: The Group holds 100% of the equity interest in TPP

35 The following figures are the results of TPP from its operations, before intra-group eliminations

36

TPP: Premium Income and Assets Under Management for Annuity

Kept Steady Growth

（HK$ million）

Annuity Entrusted Assets Annuity Invested Assets

（HK$ million） （HK$ million）

Premiums Written

75,373

72,357

At 30 Jun 2018 At 31 Dec 2017

+4.2%

92,828

92,054

+0.8%

At 30 Jun 2018 At 31 Dec 2017 1H2018 1H2017

3,145

+11.0% 3,491

Investment

37

38

% of Total At 31 Dec 2017

At 30 Jun 2018

Fixed income 79.0% 81.0%

Debt securities 45.4% 47.4%

Term deposits 9.9% 10.7%

Debt products 16.6% 14.8%

Other fixed income investments 7.1% 8.1%

Equity investments 14.0% 16.1%

Equity securities 4.8% 5.6%

Investment funds 2.2% 3.0%

Other equity investments 7.0% 7.5%

Investment properties 3.7% 3.5%

Cash, cash equivalents and others 3.3% -0.6%

Cash, cash equivalents 5.3% 3.5% Securities purchased under resale agreements/ securities sold under

repurchase agreements -2.0% -4.1%

Total 100.0% 100.0%

（HK$ million）

Insurance Funds Allocation

Note: Excluding funds used in operations, which includes cash, demand deposits and term deposits, of HK$9.78 billion (2017 year-end: HK$7.26 billion), and the effect of consolidation adjustment

Allocation of Group’s

Insurance Funds

577,035 +6.9%

539,930

At 31 Dec 2017 At 30 Jun 2018

Annualised total investment yield 4

39

Note: 1. Including the income from the spread of investment securities, gain or loss on changes in fair value and impairment loss

2. Including the interest income from deposit, interest income from bonds, dividends from equity investments, rental income from investment properties and deducting interest expense on securities sold under resale agreements

3. Including interest generated from funds for daily operations, but excluding income from insurance asset management products, funds, equity schemes that has been classified as share of results from associates and joint ventures

4. In the calculation of 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 investment yield, the interest income from deposit, interest income from bonds and rental income from investment properties and deduction of interest expense on securities sold under resale agreements were multiplied by two, while the dividend from equity investments remained unchanged.

（HK$ million）

Net Realised and unrealised investment gains 1

Net investment income 2

Investment Income

9,718

12,416

(1,325)

755

3

8,393

13,171

56.9%

4.01% 4.40%

1H2017 1H2018

3

(Restated)

PRC bonds investment represented 83.7% of the total debt investment. Within the PRC bonds, 99.7% 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 constitutes 16.3% of the total debt investment, of which 71% were investment grade with international ratings, while the remaining were issued by government and large corporations, with adequate credit enhancements

40

Debt Investments: High Credit Ratings of Debt Asset

Credit Ratings of PRC Bonds

30.0%

24.0%

1.8%

43.7%

0.3% 0.2%

Financial Policy Bonds

Interbank Deposits

AAA AA+ A-1 Government Bonds

Allocation of alternative investments

Regarding asset types, infrastructure creditor’s scheme and real estate creditor’s scheme accounted for 42.1%, trust plans accounted for 33.1%, asset management products and asset support scheme took a share of 11.8%, and the rest of 13.0% are overseas bond fund and convertible bonds

In terms of credit enhancement, quasi central government debts/bank guarantee and credit enhancement free products cover 25.4%, large-scale enterprise guarantee covers 13.1%, local state-owned enterprise and other guarantee products 43.0%, mortgage/pledge products 14.8%, the others 2.8%, and non-credit enhancement only 0.9%

Real Estate Financial Investment Debt Products

Real estate financial investment debt products of approximately HK$18.8 billion, represented only 2.6% 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$34.2 billion represented 4.7% of the total assets, the ratio decreased by 0.1 percentage point over the 2017 year-end

Within the purchased external projects, 97.8% of them were with AAA ratings, mainly were from real estate, transportation, non-bank financial industry etc

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

Alternative investments proportion decreased slightly, with structure improved Alternative investments held by the Group amounted to HK$148.7 billion, representing approximately 20.5% of the

total assets. From which the ratio of trust products and special asset support plan financial products increased The credit ratings of the PRC financial investment debt products remained relatively high, products rated AAA

accounted for 93.6%, products rated AA+ accounted for 6.4%

41

Alternative Investments

Alternative investments risk remained at a low level

Outlook

42

Outlook

43

In-depth Implementation of the “Top-Quality Strategy” and Strive to Build the “Four Taiping”

Currently, China insurance industry is at a period with important development opportunities. Taking TPG being one of the Fortune Global 500 as a new start, China Taiping will continue promoting the “Top-quality Strategy”, seek progress along with stability, adhere to quality development and the customer-oriented strategy to take great efforts to develop the core business, promote reform and innovation as well as continue strengthening the risk prevention and control in key areas, striving to create “State-owned Enterprise Taiping”, “Technology Taiping”, “Healthy Taiping” and “International Taiping” and make the steady progress in building the first-class finance and insurance group with global competitiveness

TPL

With a focus on protection products, TPL will continue promoting the optimisation of business structure and improving the new business value to ensure the healthy and rapid development of the main business

Further reinforce manpower and strengthen talents building to drive business development to enter into a new era

Further break the tradition in respect of service support, archive the innovative development and continue creating a “customer-oriented” service system

Outlook (Cont’d)

44

TPI Proactively response to the new round of motor insurance rates reform, enhance the

innovation and professionalism of channels, improve the quotation management capability as well as actively develop the high quality segment of non-motor insurances business to archive a steady growth

Continue to promote cost reduction and efficiency improvement, strengthen the cost management and technology empowerment, improve the operating efficiency and the quality of customer service, with an aim to consolidate the profit base and to promote the high quality development

TPP Expand, optimise and strengthen the scale of pension assets under management, actively

promote the diversified development of pension business, actively deploy the occupational annuity business and strive to achieve the strategy of “Competing at an advanced level”

Continue to optimise the core business structure of group insurance, the business model and operation service, put more efforts in the expansion of worksite marketing channels and intensify the endogenous driving force for the development of the company

Outlook (Cont’d)

45

Overseas Business TPL (HK) further improve the comprehensive management capability, strengthen the channel

construction and channel productivity, and actively develop the business in Macao so as to continuously increase the market influence

Leveraging national policy benefits, overseas non-life insurance companies expanded local business with greater efforts while intensively developing Chinese interests business to further expand the international influence of Taiping brand

CTPI (HK) and TP Macau secure the opportunities under the policies of Guangdong-Hong Kong-Macau Bay Area, actively explore new growth potential to ensure market leadership. TP Singapore, TP UK and TP Indonesia firmly seize the opportunity of “The Belt and Road” and serve the national strategy of “Going Global” to proactively provide risk protection and service for Chinese business and strive for greater market competitiveness

Reinsurance Business TPRe will continue to promote the global business layout, transform from a market follower to a

market leader, pursue comprehensive development in both property & casualty and life insurance with striving for simultaneous growth both in scale and profits

TPRe (China) will increase the innovation in reinsurance products and technology, fulfill responsibilities as a state-owned enterprise to play an active role in protecting people’s livelihood and continue boosting market influence

Outlook (Cont’d)

46

Investment In the second half of the year, while the global economy continued recovering, and China’s economy

maintained steady growth, uncertainties increased as trade conflicts strengthened the continued impact on the capital market. Under this background, the Group will pay more attention to the value and prudent of equity investment, give full play to long-term investment advantage of insurance funds and deploy leading enterprises with obvious competitiveness at an appropriate time; continue to increase the allocation efforts of bond investment, pay attention to the long-term returns, optimise the allocation structure and spare no efforts in the duration and variety selection

In respect of alternative investment, the main investment strategy is to provide service for the real economy according to national strategies, with priorities to important investment opportunities such as supply-side structural reform, the Belt and Road, Hainan free port and national strategic industrial fund, and at the same time make use of the advantages of comprehensive financial layout and seek for retirement community and medical health high-quality bids which can create synergistic effects to the main business of insurance

As for the real estate investment, on the one hand, we will continue to focus on the first-tier cities and high quality office buildings in core areas of some second-tier cities; on the second hand, we will seize policy opportunities to carry out research and deployment in the long-term rental housing investment

Following the spirits of the Central Economic Working Conference and National Finance Working Conference, we will proactively prevent and dissolve major risks, especially the credit default risk, carry out checking and ruling out of stock assets repeatedly, make sustained efforts to promote the infrastructure construction of risk control information, adhere to the principle of “through to the end”, figure out the risk limit and prevent the systematic risks and material risks

Questions and Answers

47