China Pacific Insurance : OVERSEAS REGULATORY ANNOUNCEMENT - Summary of Quarterly Solvency Report (China Pacific Property Insurance Co., Ltd.) (1st Quarter of 2021)

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中國太平洋保險（集團）股份有限公司

CHINA PACIFIC INSURANCE (GROUP) CO., LTD.

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 02601)

Overseas Regulatory Announcement

This overseas regulatory announcement is made pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The announcement is attached hereof for information purpose only.

By Order of the Board

China Pacific Insurance (Group) Co., Ltd.

KONG Qingwei

Chairman

Hong Kong, 29 April 2021

As at the date of this announcement, the Executive Directors of the Company are Mr. KONG Qingwei and Mr. FU Fan; the Non-executive Directors are Mr. HUANG Dinan, Mr. WANG Tayu, Mr. WU Junhao, Mr. CHEN Ran, Mr. ZHOU Donghui, Ms. LIANG Hong, Ms. LU Qiaoling and Mr. John Robert DACEY; and the Independent Non-executive Directors are Ms. LIU Xiaodan, Mr. CHEN Jizhong, Ms. LAM Tyng Yih, Elizabeth, Mr. WOO Ka Biu, Jackson and Mr. JIANG Xuping.

Summary of Quarterly

Solvency Report

China Pacific Property Insurance Co., Ltd.

1st Quarter of 2021

Contents

I. BASIC INFORMATION ...........................................................................................	1
II. MAIN INDICATORS ..............................................................................................	7
III. ACTUAL CAPITAL ................................................................................................	8
IV. REQUIRED CAPITAL ............................................................................................	8
V. INTEGRATED RISK RATING...................................................................................	8
VI. RISK MANAGEMENT STATUS .............................................................................	8
VII. LIQUIDITY RISK ...............................................................................................	10
VIII. REGULATORY MEASURES TAKEN AGAINST THE COMPANY ...........................	11

I. Basic information

(I) Registered address

South Tower, Bank of Communications Financial Building, 190 Middle Yincheng Road, China (Shanghai) Pilot Free Trade Zone, Shanghai, the PRC

1. Legal representative GU Yue

1. Business scope and territories 1．Business scope
   Property indemnity insurance; liability insurance; credit and guarantee insurance; short-term health and personal accident insurance; reinsurance of the above said insurance; insurance funds investment as approved by relevant laws and regulations; other business as approved by the CBIRC.
   2. Business territories
   The People's Republic of China (excluding Hong Kong, Macao and Taiwan)

(IV) Ownership structure and shareholders 1．Ownership structure

Equity categories	Shares or contributed amounts	Percentage（%）
(10K shares)
Domestic shares held by legal entities	1,947,000	100
Domestic shares held by natural persons	-	-
Foreign shares	-	-
Others	-	-
Total	1,947,000	100

2．Top 10 shareholders

Names of shareholders	Shares held as at the end	Percentage of
of the reporting period	shareholding (%)
China Pacific Insurance (Group) Co., Ltd.	19,178,214,743	98.50
Shenergy Group Co., Ltd.	90,874,742	0.47
Shanghai Haiyan Investment Management Company Limited	90,620,982	0.46
Yunnan Hehe (Group) Co.,Ltd.	59,586,361	0.31
Shanghai State-owned Assets Operation Co., Ltd.	50,703,172	0.26
Total	19,470,000,000	100.00
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(V) Controlling shareholder or de facto controller

China Pacific Insurance (Group) Co., Ltd. is the majority shareholder of the Company, holding 98.5% of its stake.

(VI) Subsidiaries, joint or associate ventures

Name of companies	Number of shares (10K)	Percentage of the
shareholding (%)
Shanghai Binjiang-Xiangrui Investment and	1,071	35.70
Construction Co., Ltd.
China Pacific Anxin Agricultural Insurance Co., Ltd.	36,490	52.13
Shanghai Juche Information Technology Co., Ltd.	148	25.20
Zhongdao Automobile Assistance Co., Ltd	1,280	20.32
CPIC Euler Hermes Credit Insurance Sales Co., Ltd	2,550	51.00
Shanghai Lexiang Sijin Technology Joint-stock Co. Ltd.	369	6.16
Shanghai Heji Business Management Partnerships ( LP)	20,000	99.00

(VII) Directors, supervisors and senior management

1. Directors

Mr. MA Xin, born in April 1973, has a master's degree. He has been serving as Director of the Company since March 2018 (approval document: CBIRC Approval [2018] No. 69). Mr. MA currently serves as Vice President of CPIC Group, Directors of CPIC Life and Changjiang Pension respectively and Chairman of CPIC Health. He previously served as Assistant General Manager of Chengnan Sub-branch of CPIC Xi'an Branch, Assistant Manager of Life Insurance General Management Department and Group Insurance Department of Chengnan Sub-branch of CPIC Xi'an Branch respectively, Deputy Head of Chengdong Sub-branch, Deputy Manager of Marketing Management Department of Chengdong Sub-branch, Manager of Individual Business Department and Assistant General Manager of CPIC Life Xi'an Branch, Deputy General Manager and General Manager of CPIC Life Shaanxi Branch, Directors of Strategic Transformation Office and General Manager of the Strategic Planning Department of CPIC Group, and the Director on Transformation matters and Board Secretary of CPIC Group.

Mr. WU Junhao, born in June 1965, has a master's degree. He has served as Director of the Company since August 2012 (approval document: CIRC P/C [2012] No.796). Mr. WU currently serves as Manager of Financial Management Department of Shenergy (Group) Co., Ltd., Non-executive Director of CPIC Group, and Director of CPIC Life. He is also Director of Shanghai ICY New Energy Venture Capital Co., Ltd., Director of Orient Securities Co., Ltd., Director of Chengdu Xinshen Venture Capital Co., Ltd., Supervisor of Shanghai ICY Capital Management Ltd., and Supervisor of Everbright Banking Co., Ltd. Mr. WU previously

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served as Supervisor of Shanghai Pharmaceuticals Holding Co., Ltd., a company listed on SSE and on SEHK, and Director of Shanghai Jiulian Group Co., Ltd.

Mr. ZHANG Weidong, born in October 1970, holds a bachelor's degree. He has been serving as Director of the Company since March 2018 (approval document: CBIRC [2018] No.3). Mr. ZHANG currently serves as Compliance Responsible Person and General Counsel of CPIC Group and Directors of CPIC Life, CPIC AMC and Changjiang Pension respectively. Mr. ZHANG previously served as Board Secretary of the Company, Chief Risk Officer and General Manager of Legal and Compliance Department and Risk Management Department of CPIC Group respectively, Head of Board Office and Supervisor Office of CPIC Group respectively, and Board Secretary of CPIC Life and CPIC AMC respectively.

Mr. ZHANG Yuanhan, born in November 1967, holds a master's degree. He has been serving as Director of the Company since March 2018 (approval document: CBIRC [2018] No.68). Mr. ZHANG is also Finance Responsible Person and Chief Actuary of CPIC Group, Directors of CPIC Life and CPIC AMC respectively, and Chief Actuary of CPIC Health ,Director of CPIC Capital Company Limited. He previously served as Chief Actuary of Citi Group TRV-Citi Insurance headquarters, Chief Actuary, Deputy General Manager and Vice President of MetLife Insurance Company Limited (Shanghai), Chief Actuary of Sino Life Insurance Co., Ltd., Deputy General Manager, CFO and Chief Actuary of Sun Life Everbright Life Insurance Co., Ltd., and Chief Risk Officer of CPIC Health.

Mr. YU Bin, born in August 1969, holds a master's degree. He has been serving as Director of the Company since September 2019 (approval document: CBIRC Shanghai [2019] No.804). Mr. YU currently serves as Vice President of CPIC Group. Previously, Mr. YU served as Deputy General Manager of the Non-Marine Insurance Department of the Company, Deputy General Manager of Underwriting and Claims Department of the Company, General Manager of Market Development Center of the Company, General Manager of Marketing Department of the Company, Chief Marketing Officer, Deputy General Manager of the Company, and Assistant President of CPIC Group.

Mr. GU Yue, born in June 1965, holds a master's degree. He has been serving as Chairman of the Company since March 2015 (approval document: CIRC [2015] No. 228) .Mr. GU Yue was appointed as temporary Head of the Company by the second interim board meeting of 2021 of the 6th Board of Directors on March 2, 2021.). Mr. GU also serves as Chairman of CPIC HK and Director of CPIC AMC. Previously, Mr. GU served as Director and General Manager of the Company, Chairman of Board of Supervisors and Director of CPIC Life, Chairman of Board of Supervisors of CPIC AMC, Director of CPIC Health, and Board Secretary, Chief

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Auditing Officer, Internal Auditing Responsible Person, Vice President and Finance Responsible Person, and Executive Vice President of CPIC Group.

2. Supervisors

Mr. Sun Peijian, born in September 1963, holds a master's degree and has been serving as Supervisor of the Company since September 2019 (approval document CBIRC Shanghai [2019] No. 803). He was appointed as Chairman of Board of Supervisors of the Company in October 2019. Mr. SUN currently serves as Chief Risk Officer of CPIC Group, Chairman of Board of Supervisors of CPIC Life and Director of CPIC Capital Company Limited. Previously, Mr. SUN served as Assistant General Manager, Deputy General Manager of Reinsurance Department of CPIC, Deputy General Manager, General Manager of Reinsurance Department of CPIC Group, Assistant General Manager, Deputy General Manager, Compliance Responsible Person, Compliance Director, and Vice President of CPIC Group, Directors of CPIC P/C, CPIC Life and CPIC AMC respectively, and Chairman and General Manager of CPIC Health.

Ms. LI Shuhui, born in July 1972, holds a master's degree, and has been serving as Supervisor of the Company since April 2018 (approval document: CBIRC [2018] No. 125). Ms. LI currently serves as General Manager of Finance Department/Asset Department of the Company, Supervisor of CPIC Online, Deputy General Manager and Finance Responsible Person of Anxin Agricultural Insurance. Previously, she served as General Manager of Audit Center/Audit Technology Division of CPIC Group, Supervisor of CPIC Health, Internal Auditing Responsible Person of Changjiang Pension, Supervisor of Pacific Insurance Elderly Caring Investment Management Co., Ltd., and Supervisor of CPIC Anxin Agricultural.

Mr. LU Ning, born in September 1968, has a bachelor's degree. He has been serving as Supervisor of the Company since March 2018 (approval document: CBIRC [2018] No. 5). Mr. LU currently serves as Head of Financial Assets Department of Yunnan Hehe (Group) Co., Ltd. Previously, he served as Sales Director of Shibo Xingyun Real Estate Development Co., Ltd. of Yunnan Tobacco Xingyun Investment Co., Ltd., Sales Director of Shenzhen Xingyunxin Investment Development Co., Ltd., Deputy Head, Head of Investment and Planning Department of Yingyun Company, Manager of Shibo Xingyun Real Estate Development Co., Ltd., Deputy General Manager of Yingyun Company, General Manager of Kunming Wanxing Real Estate Development Company., and Head of the Hotel Property Department of Yunnan Hehe Group.

3. Senior management

Mr. GU Yue, born in June 1965, holds master's degree. He has been serving as Chairman of the Company since March 2015 (approval document: CIRC [2015] No. 228).Mr. GU Yue was appointed as temporary

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Head of the Company by the second interim board meeting of 2021 of the 6th Board of Directors on March 2, 2021. Mr. GU also serves as Chairman of CPIC HK and Director of CPIC AMC. Previously, Mr. GU served as Director and General Manager of the Company, Chairman of Board of Supervisors and Director of CPIC Life, Chairman of Board of Supervisors of CPIC AMC, Director of CPIC Health, and Board Secretary, Internal Audit Director, Internal Auditing Responsible Person, Vice President and Finance Responsible Person, and Executive Vice President of CPIC Group.

Mr. SONG Jianguo, born in December 1966, holds a master's degree. He has been serving as Deputy General Manager (agricultural insurance) of the Company since August 2012 (approval document: CIRC P/C Insurance [2011] No. 380). Mr. SONG also serves as Chairman of CPIC Anxin Agricultural, he served as General Manager of CPIC P/C Hainan Branch, General Manager of Property and Liability Insurance Department of CPIC P/C, General Manager of CPIC P/C Shandong Branch, Sales Director of CPIC P/C, and Party Secretary of Marine Insurance Business Operation Center of CPIC P/C.

Mr. ZHANG Dong, born in October 1963, holds a master's degree. He has been serving as Deputy General Manager (general management) and Compliance Responsible Person (approval documents: CIRC [2014] No. 750 and CIRC [2014] No. 753 respectively), Chief Risk Officer, and Transformation Promotion Director of the Company since September 2014. Previously, Mr. ZHANG served as Sales Director and General Manager of Group Business Department of CPIC Life, Party Secretary and General Manager of CPIC Life Jiangsu Branch, Member of Party Committee of CPIC AMC, Secretary of Discipline Inspection Committee of Party Committee of CPIC AMC, Supervisor of CPIC AMC, Chairman of Labor Union of CPIC AMC, Member of Discipline Inspection Committee of Party Committee of CPIC Group, Vice Chairman of Labor Union of CPIC Group, and Supervisor of CPIC AMC.

Mr. ZENG Yi, born in June 1965, holds a master's degree, and has been serving as Deputy General Manager (operations) of the Company since March 2017 (approval document: CIRC [2015] No. 543). Previously, Mr. ZHENG served as Chief Operating Officer of CPIC P/C, Director of Auto Insurance Business of CPIC P/C, Party Secretary and General Manager of CPIC P/C Chongqing Branch.

Mr. SUN Haiyang, born in October 1961, holds a master's degree, and has been serving as Assistant General Manager (non-auto insurance) of the Company since September 2014 (approval document: CIRC [2014] No. 753). Previously, Mr. SUN served as Sales Director of CPIC P/C and Party Secretary and General Managers of CPIC P/C Jiangsu Branch and CPIC P/C Suzhou Branch respectively.

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Mr. XI Yulin, born in November 1962, has a bachelor's degree, and has been serving as Assistant General Manager (auto insurance) of the Company since June 2015 (approval document: CIRC [2015] No. 543). He has also been serving as Executive Director, and General Manager of CPIC Online (approval document: CPIC P/C [2017] No. 245) since August 2017. Previously, Mr. XI served as Party Secretary and General Manager of CPIC P/C Suzhou Branch.

Mr. CHEN Sen, born in October 1970, holds a master's degree. He has been serving as Chief Actuary of the Company since October 2015 (approval document: CIRC [2015] No. 949), and Finance Responsible Person of the Company since June 2017 (approval document: CIRC [2017] No. 520). Currently, Mr. CHEN also serves as Director of CPIC Anxin Agricultural. Previously, he served as Deputy General Manager, Finance Responsible Person and Chief Actuary of China Property & Casualty Reinsurance Company Limited. Prior to that, Mr. CHEN worked at the New York headquarters of Guy Carpenter & Company, and the North American headquarters of Swiss Re.

Mr. CHEN Hui, born in February 1969, holds a master's degree. He has been serving as HR Director of the Company since August 2018 (approval document: CBIRC [2018] No. 780). Previously, Mr. CHEN served as Member of Party Committee and Deputy General Manager of CPIC P/C Beijing Branch, and Party Secretary and General Manager of CPIC P/C Hebei Branch.

Mr. ZHANG Yu, born in April 1965, holds a bachelor's degree. He has been serving as Assistant General Manager (non-auto insurance) of the Company (approval document: CBIRC Shanghai [2019] No. 826) since October 2019. Previously, he served as Deputy General Manager of CPIC P/C Suzhou Central Sub-branch, General Manager of CPIC P/C Suzhou Branch, Deputy General Manager of CPIC P/C Shanghai Branch, General Manager of CPIC P/C Ningbo Branch, and General Manager of CPIC P/C Shanghai Branch.

Mr. SU Zhanwei, born in June 1966, holds a master's degree. He has been serving as Assistant General Manager (non-auto insurance) of the Company since October 2019 (approval document: CBIRC Shanghai [2019] No. 841). Prior to that, Mr. SU served as Assistant General Manager, Deputy General Manager, and General Manager of CPIC P/C Henan Branch, Head of General Office of CPIC P/C and Head of Office of Board of Directors and Head of Office of Board of Supervisors of CPIC P/C, and General Manager of Corporate Customer Department/Bancassurance Department of CPIC P/C.

Mr. XU Zhichun, born in October 1962, holds a master's degree. He has been serving as Internal Auditing

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Responsible Person of the Company (approval document: CBIRC Shanghai [2019] No. 956) since November 2019. Previously, Mr. XU served as Deputy General Manager, General Manager of CPIC P/C Wuxi Branch, General Manager of Claims Department and Auto Insurance Claims Department of CPIC P/C respectively, General Manager of CPIC P/C Guangdong Branch, General Manager of Operations Center of CPIC P/C, and General Manager of Shanghai Sub-Center of Operations Center of CPIC P/C.

Mr. WANG Mingchao, born in October 1976, holds a master's degree. He has been serving as Board Secretary of the Company since May 2019 (approval document: CBIRC Shanghai [2019] No. 367). Mr. WANG also serves as Head of Board Office of CPIC Group, and Director of CPIC Health. Previously, Mr. WANG served as Assistant General Manager of Human Resources Department of CPIC Life, Senior Deputy General Manager of CPIC Life Shanghai Branch, General Manager of Cross-selling Business Department of CPIC Health, General Manager of Shanghai Sales Center of CPIC Health, and Sales Director and General Manager of CPIC Health Shanghai Branch.

(VIII) Contacts for solvency information disclosure

Contact person：CHEN Mo

Tel. number：[phone]

E-mail: [e-mail]

II. Main indicators

Item	As at the end of this	As at the	end	of last
quarter/during this quarter	quarter/during	last	quarter
Core solvency margin ratio	234%			225%
Core solvency margin (10K RMB)	2,626,192		2,453,582
Comprehensive solvency margin ratio	285%			276%
Comprehensive solvency margin (10K RMB)	3,626,192		3,453,582
Latest IRR result	-			B
Premium income (10K RMB)	4,344,147		3,329,359
Net profit (10K RMB)	209,742		145,660
Net assets (10K RMB)	4,674,362		4,534,572

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III. Actual capital

Item	As at the end of this quarter	As at the end of last quarter
Admitted assets (10K RMB)	20,327,402	18,289,560
Admitted liabilities (10K RMB)	14,746,110	12,868,770
Actual capital (10K RMB)	5,581,292	5,420,790
Tier 1 core capital (10K RMB)	4,581,292	4,420,790
Tier 2 core capital (10K RMB)	-	-
Tier 1 supplement capital (10K RMB)	1,000,000	1,000,000
Tier 2 supplement capital (10K RMB)	-	-

IV. Required capital

Item	As at the end of this quarter	As at the end of last quarter
Required capital (10K RMB)	1,955,100	1,967,208
Required capital for quantitative risks (10K RMB)	1,983,664	1,995,950
1）Required capital for insurance risk (10K RMB)	1,414,343	1,410,671
2）Required capital for market risk (10K RMB)	489,920	575,245
3）Required capital for credit risk (10K RMB)	754,861	689,334
Required capital for control risk (10K RMB)	-28,565	-28,742
Supplement capital (10K RMB)	-	-
1）Counter-cyclical supplement capital (10K RMB)	-	-
2）Supplement capital of D-SIIs (10K RMB)	-	-
3）Supplement capital of G-SIIs (10K RMB)	-	-
4）Other supplement capital (10K RMB)	-	-

V. Integrated risk rating (IRR)

The Company was rated B in IRR for both Q3 and Q4 of 2020.

VI. Risk management status

1. The latest CBIRC Solvency Aligned Risk Management Requirements and Assessment (SARMRA) of the Company
   In 2018, the former CIRC conducted Solvency Aligned Risk Management Requirements and Assessment (SARMRA) of the Company, and the result was 82.88 points: 16.73 points for risk management infrastructure and environment, 7.55 for risk management objectives and tools, 8.60 for insurance risk management, 8.32 for market risk management, 8.38 for credit risk management, 7.66 for operational risk management, 8.68 for strategic risk management, 8.28 for reputation risk management, and 8.68 for liquidity risk management.

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1. Measures taken to improve solvency risk management and the latest results in the reporting period
   During the quarter, the Company issued the 2021 Work Programme of Compliance and Risk Management which calls for close adherence to high-quality development of the Group. The document puts forward the principle of "pro-active, precise, root-cause- oriented and sustainable" and sets out priorities in 2021, such as optimization of the Tianyan Intelligent Risk Control Platform, improvement of on-line risk control guidelines, effective enhancement of integrated, pre-cautionary and holistic risk management, increased team-work and coordination with and empowerment of frontline units so as to achieve industry leadership in regulatory penalties and anti-money laundering evaluations, marked improvement in the building of internal control system, cost reduction & efficiency improvement via "Intelligent Compliance", laying a solid foundation for high-quality development of the Company.
   In the quarter, the Company mainly took the following steps to enhance prevention of material risks and management of major risk categories.
   First, it drafted Provisional Regulations on Major Litigation Cases to enhance the prevention of legal risks.
   Second, it stepped up insurance risk management: as per latest regulatory requirements, and in light of its own needs for insurance risk management, the Company improved a series of management regulations on guarantee insurance relating to agriculture and farmers, "Insurance + Futures" innovative business, Internet business, brokerage and agency business.
   Third, it enhanced the emergency response system: amended and added to the Framework Emergency Response Contingency Plan & Specific Component Plans as per latest regulatory requirements and Group policies, and in light of its own management needs, so as to ensure an orderly and well-coordinated response to emergencies.

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VII. Liquidity risk

1. Liquidity risk management indicators
   (1) Net cash flow

Item	During/as at the end of this quarter
Net cash flow (10K RMB)	403,724

(2) Comprehensive current ratio

Item	Within 3 months	Within 1 year	Above 1 year
Comprehensive current ratio	70.1%	50.0%	261.6%

(3) Liquidity coverage ratio

Item	Stress scenario 1	Stress scenario 2
Liquidity coverage ratio-Company level	476.9%	287.2%

1. Liquidity risk analysis and mitigation
   (1) Cash flows
   In this quarter, net cash outflow from the business activities of the Company was RMB350 million, a decrease of RMB4.51 billion from the previous quarter. Of this, cash inflow from primary insurance premiums reached RMB34.04 billion, down by 18.2%; cash outflows from claims payout fell by 10.3% to RMB20.77 billion.
   Net cash outflow from the Company's investment activities was RMB4.33 billion. Of this, cash inflow from recovery of investment and payment of investment income reached RMB8.56 billion, up by 45.7% from the previous quarter; outflow from investment allocation was RMB12.85 billion, up by 259.6%. The substantial increase of cash paid for investment in this quarter is the result of normal asset allocation under the current investment strategy of the company.
   Net cash inflow from financing activities was RMB8.72 billion, mainly for the purpose of Increase sales of financial assets under repurchase.
   (2) Liquidity indicator analysis
   The Company has allocated a certain proportion of highly liquid assets in its SAA to meet liquidity requirements. Therefore, its liquidity coverage ratio is 476.9% and 287.2% under stress scenario 1 and 2 respectively in the next quarter, enough to meet short- term cash flow requirements arising from business volatility.

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To mitigate liquidity risk, the Company attaches importance to daily cash flow management, coordinates cash flows from business, investment and financing activities to ensure sufficient liquidity to meet needs of surrenders, claims and other benefits payments. It will continue to monitor changes to its liquidity status and enhance risk management capabilities.

VIII. Regulatory measures taken against the Company

(I) Regulatory measures taken against the company by CBIRC

The Company received no penalties from CBIRC during the reporting quarter.

1. Corrective measures taken by the Company None.

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