{"id":3985,"date":"2025-12-31T15:00:14","date_gmt":"2025-12-31T16:00:14","guid":{"rendered":"http:\/\/xinetica.com\/?p=3985"},"modified":"2026-01-01T14:28:27","modified_gmt":"2026-01-01T14:28:27","slug":"chinas-picc-pc-enters-into-reinsurance-agreements-with-picc-re-picc-hk","status":"publish","type":"post","link":"http:\/\/xinetica.com\/index.php\/2025\/12\/31\/chinas-picc-pc-enters-into-reinsurance-agreements-with-picc-re-picc-hk\/","title":{"rendered":"China\u2019s PICC P&C enters into reinsurance agreements with PICC Re & PICC HK"},"content":{"rendered":"

Chinese domestic insurer PICC Property and Casualty Company Limited (PICC P&C) has entered into reinsurance agreements with PICC Reinsurance and PICC HK, its sister entities under the ultimate parent PICC Group.<\/p>\n

\"picc-p&c-logo\"PICC P&C entered into separate one-year agreements with both entities, effective from 1 January to 31 December 2026.<\/p>\n

This framework regulates both outward reinsurance (ceding premiums) and inward reinsurance (assuming premiums).<\/p>\n

The agreement with PICC Reinsurance focused on maintaining operational stability and managing the company\u2019s overall risk profile.<\/p>\n

The company estimated the annual caps for premiums ceded to PICC Reinsurance at RMB 6,500 million, with commissions paid back to the company capped at RMB 2,925 million.<\/p>\n

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With PICC HK, PICC P&C focused on a significant expansion of cooperation with the business, in order to support the \u201cBelt and Road\u201d initiative and Chinese enterprises going global.<\/p>\n

According to the agreement, the annual cap for premiums assumed from PICC HK was set at RMB 3,500 million for 2026, an increase driven by an expected 15% growth in \u201cChina-overseas interest\u201d business.<\/p>\n

Moreover, PICC P&C intends to leverage PICC HK\u2019s geographical advantages alongside its own risk protection capabilities to provide solutions for Chinese enterprise investing overseas.<\/p>\n

In both deals, cession ratios range from 0.1% to 80% and commission rates were capped at 45%, all determined via actuarial models and arm\u2019s-length market-based negotiations and benchmarked against terms offered by at least three independent third parties.<\/p>\n

According to PICC P&C, outward reinsurance transactions qualify as continuing connected transactions under the Hong Kong Listing Rules, necessitating reporting, an annual review, and an announcement.<\/p>\n

However, these transactions are exempt from the requirement for independent shareholders’ approval. Conversely, inward reinsurance transactions are fully exempt due to their limited size.<\/p>\n

The company placed a strong emphasis on internal control and compliance, which aims to achieve through detailed policies for related-party transactions, early-warning mechanisms for annual caps, and yearly internal audits.<\/p>\n

Oversight is provided by both independent directors and external auditors. Furthermore, all transaction terms are disclosed via its reinsurance trading platform. This comprehensive approach demonstrates a commitment to leveraging collaboration while simultaneously protecting minority shareholders and adhering to regulatory requirements.<\/p>\n

The post China’s PICC P&C enters into reinsurance agreements with PICC Re & PICC HK<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Chinese domestic insurer PICC Property and Casualty Company Limited (PICC P&C) has entered into reinsurance agreements with PICC Reinsurance and […]<\/p>\n","protected":false},"author":1,"featured_media":3987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14],"tags":[],"_links":{"self":[{"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/3985"}],"collection":[{"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/comments?post=3985"}],"version-history":[{"count":3,"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/3985\/revisions"}],"predecessor-version":[{"id":3989,"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/3985\/revisions\/3989"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/media\/3987"}],"wp:attachment":[{"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/media?parent=3985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/categories?post=3985"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/xinetica.com\/index.php\/wp-json\/wp\/v2\/tags?post=3985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}