China Taiping Insurance maintains stability amidst pandemic: report

But ROE and ROA were lower in 2020 compared to 2019.

China Taiping Insurance’s financial performance has remained stable despite pitfalls in market conditions due to the pandemic, according to a Fitch Ratings report.

The insurer recorded a return on equity (ROE) and pretax return on assets (ROA) of 7.3% and 1.6% respectively in 2020, lower than figures posted in 2019.

The insurer's higher net profit in its life segment was counteracted by lower non-life and reinsurance earnings due to major claims.

Taiping Life Insurance's (TPL) robust profitability was evident in its 2020 pretax ROA of 2.2%. However, the insurer's new business value (NBV) declined 21.5% by end-2020 due to the pandemic's impact on sales activities, although it rose 35% in the second half of the year driven by better agency channels. 

TPL's ability to improve the productivity of its agency force and expand high-margin sales will drive sustainable margins, the report said.