China Pacific Insurance : ANNOUNCEMENT IN RESPECT OF DISCLOSURE OF RELEVANT PRESENTATIONS ON 2020 INVESTOR DAY

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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)

ANNOUNCEMENT IN RESPECT OF DISCLOSURE OF RELEVANT PRESENTATIONS ON 2020 INVESTOR DAY

This announcement is made pursuant to the disclosure requirements under Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

China Pacific Insurance (Group) Co., Ltd. (the "Company") hereby announces that it will host an investor day for 2020 on Thursday, 24 September 2020 and the Company will focus on the initiatives, effectiveness and future prospects of CPIC P/C in transformation and development with the themes of "Pursue High-quality Development with Value-oriented Transformation".

For specific details of the abovementioned presentations, please refer to the appendix of this announcement.

By Order of the Board

China Pacific Insurance (Group) Co., Ltd.

KONG Qingwei

Chairman

Hong Kong, 24 September 2020

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

• Note: The appointment qualifications of Ms. LIANG Hong, Ms. LU Qiaoling, Mr. John Robert DACEY, Mr. ZHOU Donghui, Mr. CHEN Ran, Ms. LIU Xiaodan and Mr. WOO Ka Biu, Jackson are subject to approval by China Banking and Insurance Regulatory Commission.

Persist in the fundamental goal of high-quality development Persist in the core demand of customer-oriented operation Persist in the basic philosophy of operational compliance Persist in the key path of transformational innovation

The Best in customer experience

The Best in business quality

The Best in risk management

Becoming the leader in promoting healthy and steady

development of China's insurance industry

Fast growth of premium income, continuous improvement in combined ratio
99.2%		Premium
12.6%	12.9%	12.3% Growth
8.8%

	98.8%
1.7%	98.4%
98.3%	98.3% COR

2016

2017

2018

2019

1H2020

Note: References to CPIC P/C do not include Anxin Agricultural.

A widening lead in premium growth

CPIC The industry

14.0%	12.6%	12.9%	12.3%
12.0%
10.0%	8.8%

8.0%

6.0%

4.0% 1.7％

2.0%

0.0%	2017	2018	2019	1H2020
2016

Note: The industry data above is for reference only.

100.5%			Industry leader in combined ratio
				CPIC		The industry
100.0%	99.8%
99.5%		99.2%
99.0%			98.8%
98.5%						98.4%	98.3%	98.3%
98.0%
97.5%		2016	2017		2018	2019	1H2020
2015

Note: The industry data above is for reference only.

1.3%	25.3%	29.9%
14.5%	37.4%	Proportion of
	25.0%			non-auto business
14.6%	74.7%	70.1%
	62.6%	Proportion of
	22.8%	auto business
21.7%

Note: Agricultural insurance is included in non-auto insurance.

Drops in loss ratio with continuous improvement in business quality

68.0%
64.8%
61.2%	60.2%
59.9%	59.7%

	2			4
	•	Insurance Financial		中诚信	• Operation evaluation A (The Highest)
		Strength Rating A1		• Service evaluation AA (The Highest)
1	•	Since 2011	3		• Corporate governance evaluation
		•		Excellent (The Highest)
			Corporate Credit Rating AAA
	• Issuer Credit Rating and Financial
		•	Since 2014

Strength Rating A

• Since 2015

Lead the industry in multiple ratings

		• China Insurance Ark Award 2020
• 2020		• E-Agricultural Insurance won the 2020 China Insurance Ark Award for
China's Top 10 P&C Insurance Companies	Technology Progress
• 2018	China's Insurance Company with Outstanding	• E-Agricultural Insurance won the Potential Project Award of the 2019
Contribution in Service Quality Improvement	World Artificial Intelligence Innovation Competition
		• The Company entered the 2019 China Insurance Industry Technology

Innovation List

• Entitled as Quality Service Organisation by China Insurance Service Innovation Summit 2020
• 2019 China Inclusive Finance Product Innovation Typical Case Award
• 2019 China Insurance Industry Technology Innovation List, Outstanding Customer Service Insurance Company
• 2017 Innovative Insurance Product Excellence Award

Honors and awards in 5 areas

• National Poverty Alleviation Award, Organisational Innovation Award
• Annual Award for Excellent Social Responsibility Case

Constructing
systematic
transformation to
ensure value-oriented	Promoting	Deepening integrated
development	transformation to	transformation to
	foster new growth	accelerate
	engines	development capacity
		building

1. Transformation design: objective-driving, system designing, content focusing

Weaknesses

& Future trend

Key business operation

sectors

Concretisation

Institutionsand	organisations	Market and products
Platforms and customers
		Operation and service

Evaluation

Performance

Talent	Digitalisation Collaboration	Governance	Emerging Business
Expansion

2. Transformation construction: carry out systematic transformation to generate more value

Customer	Product	Sales platform	Risk	Underwriting		Organisational	Human	Data and	Compliance and
Claims service	financial	risk
management	innovation and	and	management	and		model	resources	management	management
	management	management		Reinsurance

Individual Customers

Corporate Customers

Individual &

Corporate

Customers

Individual

Technology-

Online sales

Risk management

Underwriting risk

Auto claim operation

Online rate indicators

customer

enpowered new

assessment for

resource

terminal tools

platform for individual

platform

and promotion mode

auto insurance

customers

individual customers

management

system

Standardization

Underwriting

Digital sales

of Individual

operation platform for

Auto customer service

Sales team building

customer

support platform

system

resources

individual customers

New sales management

Individual

E-agricultural

model of individual

customer

business

insurance

account

Corporate

New products in

Sales terminal tools

Underwriting risk

New claims settlement

Risk radar

customer

overseas

for corporate

assessment for

model of commercial

management

markets

business

corporate customers

vehicle

and insight

Sales support

CPIC

New commercial

Integration mechanism for

Service platform for

insurance

platform for

DriverCare

corporate business

agricultural reinsurance

corporate customers

vehicle

products

New management

Integrated

model for sales of

development model

corporate business

for agricultural

insurance products

Smart		Party building and		Dynamic HR
	team building system		management plan
stores		construction
				Comprehensive
		Customer segemented
		business model		implementation plan

for incentives and

constraints

Improve basic administrative management capabilities

Basic capacity building for business analysis and decision-making

Basic data capacity

building

CPIC Sky Monitor

Risk management

solutions at grassroots

levels

Improve basic risk

management

capabilities

Improve the capacity of 3rd level branches

Covers 10 key sectors in the	Showcases the transformation
operation of CPIC P/C
achievements from user's
	perspective

Rebuilds the business model	Multiple techonological
of CPIC P/C	achievement portfolios

Promoting transformation

to foster new growth

engines

Constructing systematic transformation to ensure value-oriented development

Deepening integrated

transformation to

accelerate development

capacity building

1. Improve operation of high-quality customers and refine resource allocation to reinforce auto insurance as the foundation of the overall business operation in the process of marketization

• Management: Establish renewal business management mechanism
• Channels: Set up digital direct sales channel
• Products: Set up "Auto+Non-auto"customer-segmented sales mode

Retain high-

• Differentiated pricing in regions

• Enriched pricing parameters and data

• Offer policy-life cycle customer care
• Differentiated value-added services

• Explore the combination of "Products + Services"

• Develop and apply CPIC Credit
• Establish the proactive risk management system- CPIC DriverCare
• Establish the resource allocation mechanism based on the correlation of sales expenses and claim costs
• Technological empowerment in sales, claims settlement and operation to reduce cost and improve efficiency

quality customers

Refine resource

allocation

1. Improve operation of high-quality customers and refine resource allocation to reinforce auto insurance as the foundation of the overall business operation in the process of marketization

Lowering

Price

• Management: Refine the renewal business management mechanism
• Channels: Build up channel integration mechanism
• Products: Improve the integration of "Auto+Non-auto" business model

Reform in both compulsory and commercial sectors

Simultaneously launched nationwide

Increasing protection

•	Customer-oriented pricing
•	Actuarial and marketized pricing
	mechanism

• Enhance the application of big data in

pricing

• Promote the proactive risk management system- CPIC DriverCare

Convert challenges into opportunities

Improving

quality

• Establish "4+N" value-

added service system,

broaden car owner value chain

• Upgrade the resource allocation mechanism based on the correlation of

sales expenses and claim costs

• Improve centralized operation with technological empowerment

2. Follow the economic trend, enhance risk management capability to give full play to the non-auto business as the "pillar" of transformation

Closely follow the economic trend

Emerging business areas

Domestic circulation

+

International circulation

• Travel, health care, consumption, education and other key sectors
• • • Government-sponsoredhealth insurance
    • Government-sponsoredliability insurance
  • Partners of "Belt and Road Initiative" business
  • China International Import Expo, China International Fair for Trade in Services

Optimize the structure of incremental business

2. Follow the trend of economic factors, enhance risk management capability to give full play to the non-auto business as the "pillar" of transformation

Enhance risk management capability

Establish a regular business quality monitoring mechanism

• Business quality review mechanism
• Classified development strategy

Promote two linkages and two

mechanisms

• two linkages
• two mechanisms

Comprehensive Risk Management System

Establish risk

management system

• Whole-processrisk investigation
• Rules + tools
• Data + System

Improve market competitiveness

3. Seize policy opportunities for agricultural insurance, continuously enhance innovation, and position agricultural insurance as the main growth engine in the new cycle

• "Guiding Opinions on Accelerating High-quality Development of Agricultural Insurance" by Ministry of Finance, Ministry of Agriculture and Rural Affairs, CBIRC, National Forestry and

Grassland Administration

Government platform	•	Establishment of Tai An
•	The state level		Institute of Agricultural
•	The provincial level	•	Insurance
Major Accounts platform	Agriculture industry
•	Strategic customer system		innovation projects
	research
•	Breakthrough in acquiring
•	Specialized program
	major accounts
		research

Seize external policy opportunities

3. Seize policy opportunities for agricultural insurance, continuously enhance innovation, and position agricultural insurance as the main growth engine in the new cycle

• Develop a complete suite of products
• Innovate "Insurance + Futures" and other "Agricultural insurance+" products

• Sales, development and research of products at the same time
• Upgraded E-agricultural insurance from Version 1.0 to 5.0，and released "CPIC E-Agricultural Insurance FAST"
• Full application of 5G, Internet of things, AI, blockchain and other technology

• Livestock insurance cost control −New technology application −Accurate underwriting −Self-assistant claim settlement
• Policy cost model application of agricultural insurance

Continuously enhance internal innovation capability

Constructing systematic transformation to ensure value-oriented development

Deepening integrated

transformation to

accelerate development

capacity building

Promoting transformation

to foster new growth

engines

1. Improve customer-oriented operation to stabilize business operation

Online + offline	One		Accurate renewal plans
integration		Integration of Auto and
customer -
		Non-auto business
	one account	Information
	Scene expansion
	system	analysis

1. Improve customer-orientedoperation to stabilize business operation

Adjust organisational structure to
build a customer-segmented	Regional breakthrough projects
business model

• Collection of corporate customer data
• Insights of corporate customer

2. Create new growth drivers with regional breakthroughs

Create the "1+3+N" pattern with three major regions as the centre

Establish an information and resource sharing

01 platform

Create the "1+1+N" pattern with provincial capitals as the centre

Establish a data and technical standard

system02

3. Improve operational efficiencywith technological empowerment

Service	Collaboration	Operating
efficiency	Efficiency	Returns

4. Create new momentum with innovative mechanism