PICC P&C signs reinsurance agreements with PICC Reinsurance and PICC HK

PICC Property and Casualty Company Limited (PICC P&C) has finalised caller reinsurance model agreements with its affiliates PICC Reinsurance and PICC HK.

The agreements volition tally from 1 January 2026 to 31 December 2026.

PICC Reinsurance and PICC HK are PICC P&C’s sister entities nether eventual genitor PICC Group.

Under the arrangements, the 3 companies volition prosecute successful communal cession and presumption of pact and facultative business, with presumption determined successful enactment with prevailing marketplace conditions.

Cession and presumption ratios volition scope from 0.1% to 80–100%. Commission rates volition beryllium capped astatine 45% for ceded concern and 40% for assumed business.

PICC P&C said the presumption were reached done arm’s-length negotiations and comply with each applicable regulatory requirements.

As the deals represent continuing connected transactions nether the Hong Kong Listing Rules, they volition beryllium taxable to periodic reporting, yearly reappraisal and immoderate indispensable nationalist announcements. Independent shareholder support is not required.

To safeguard fairness, PICC P&C has enactment successful spot interior monitoring mechanisms to guarantee that the presumption stay comparable to those offered by autarkic 3rd parties.

The institution has acceptable yearly caps for premiums ceded to PICC Reinsurance astatine 6.5 cardinal yuan ($929m), and committee payments astatine 2.9 cardinal yuan ($414m). These limits were acceptable with notation to projected premium maturation and humanities transaction data.

PICC P&C said 1 rationale for entering into the agreements with PICC Reinsurance is to diversify its hazard vulnerability and enactment much unchangeable operations.

After reviewing the arrangements, the board, including autarkic directors, concluded that the transactions volition beryllium conducted connected mean commercialized presumption successful the mean and accustomed people of business.

The committee besides considers the presumption and yearly caps to beryllium just and reasonable, and believes the agreements are successful the champion interests of the institution and its shareholders arsenic a whole.

"PICC P&C signs reinsurance agreements with PICC Reinsurance and PICC HK" was primitively created and published by Life Insurance International, a GlobalData owned brand.

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