CHINA’S PICC POSTS 2BN YUAN IN NET PROFIT FOR 2006

The largest non-life insurer in China, Property and Casualty Company (PICC) has reported a 2.08bn yuan net profit for 2006, an increase of 121.49% on its 2005 results. The company was able to take advantage of its dominant position in the Chinese non-life insurance market, accounting for 45.1% of it. Premium income was boosted by the introduction of compulsory motor liability insurance and the positive performance of many of its subsidiaries, creating a total of 55.62bn yuan in net premium, an increase of 4.2% on 2005. A more significant increase occurred in PICC’s operating revenue which climbed by 8% to 71.35bn yuan.