CHINA TAIPING INSURANCE HOLDINGS COMPANY …HOLDINGS COMPANY LIMITED 2014 ANNUAL RESULTS PRESENTATION 26 March 2015 Forward-Looking Statements This presentation and subsequent discussions

CHINA TAIPING INSURANCE HOLDINGS COMPANY LIMITED

2014 ANNUAL RESULTSPRESENTATION

26 March 2015

Forward-Looking Statements

This presentation and subsequent discussions maycontain certain forward-looking statements with respectto the financial condition, results of operations andbusinesses of the CTIH Group. These forward-lookingstatements represent the CTIH Group’s expectations orbeliefs concerning future events and involve known andunknown risks and uncertainties that could cause actualresults, performance or events to differ materially fromthose expressed or implied in such statements

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Note (1)： Ageas owns the remaining 24.9%, 20% and 20% equity interests in TPL, TPeC and TPAM, respectivelyNote (2)： PT Megah Putra Manunggal owns the remaining 45% equity interest in TP IndonesiaNote (3)：TPSI and TPR (BJ) are wholly-owned subsidiaries of TPL. CTIH’s effective interest in TPSI and TPR (BJ) is 75.1%Note (4)：TPIH and TPL own 61% and 39% of the equity interests of TPR (SH), respectively. CTIH’s effective interest in TPR (SH) is 90.3%Note (5)：TPL, TPI and SZTPI own 60%, 20% and 20% of the equity interests in TPR (Suzhou), respectively. CTIH’s effective interest in

TPR (Suzhou) is 85.1% Note (6)：TPL and TPI own 80% and 20% of the equity interests in TPR (Nanning), respectively. CTIH’s effective interest in TPR (Nanning)

is 80.1%Note (7)：Sinopec Group Company owns the remaining 50% equity interests in TSFL

Ownership StructureAs of 31 December, 2014

TPG

100%

TPG (HK)The Public

68.96% 31.04%

CTIH

ReinsuranceBrokering andInsuranceAgency

LifeInsurance

Property andCasualtyInsurance

Reinsurance Pension E‐CommerceAsset

Management

GeneralManagement ofNon‐FinancialInvestments

Real EstateInvestment

FinancialSupportService

75.1% Note(1) 100% 100% 100% 80% Note(1) 80% Note(1) 100% 75.1% Note(3) 100%

TPL TPI TPRe TPP TPeC TPAM TPRB TPR (BJ) TPFSC

100% 100% 100% 100% 90.3% Note(4) 100%

TPIH

CTPI (HK) TPFH TP Japan SZTPI TPR (SH) TPFAS

100% 50% Note(7) 85.1% Note(5)

TP Macau TSFLTPR

(Suzhou)TPSI

75.1% Note(3)

100%

TP UK

55% Note(2)

TPIndonesia

100% 80.1% Note(6)

TPSingapore

TPR(Nanning)

100%

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Highlights and Consolidated Results of Operations

The Strategic Goal of "Building a New Taiping in Three Years" Has Been Comprehensively and Excellently Achieved The goal of doubling total premium, net profit, and total assets (three

important indicators) over 2011 has been achieved

All subsidiaries and business lines have obtained considerable developments

Synergetic development has been achieved in scale, quality, and efficiency in general

Overall strength continues to improve and industry influence has been enhanced substantially

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Highlights and Consolidated Results of Operations (Cont’d)

Significant Enhancements in Operational Efficiency Total premium was over HK$100 billion, increasing by 29.3% over the Last

Year Total assets was HK$443.5 billion, increasing by 39.2% over the end of Last

Year Profit attributable to shareholders was HK$4.04 billion, increasing by 1.4

times over the Last Year Return on shareholders' equity was 14.1%, reaching a new high in recent

years New business values was HK$4.33 billion, increasing by 37.4% over the Last

Year Group embedded value per share attributable to shareholders was HK$20.1,

increasing by 30.5% over the last year-end figure of HK$15.4 , while TPL’s embedded value increased by 44.4% over the Last Year

The combined ratio of property and casualty insurance and reinsurance business continued to be kept in a satisfactory range

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PRC Insurance Businesses Developed Rapidly, Quality of Business and Operating Efficiency Have Been Steadily Improved Gross premiums of life insurance increased by 27.9% over the Last Year, faster

than market average by 9.8 percentage points, with its market share reaching 5.4%

Monthly per capita production of life insurance agents was RMB16,331, resulting in a total premium of over RMB10 billion from new policies which ranked 4th in the industry

Persistency ratios of the individual agents and bancassurance lines continued to be stable at the forefront of the industry; loss ratio of short-term group insurance was kept in a satisfactory range

Premium of PRC property and casualty insurance increased by 22.9% over the Last Year, faster than market average by 6.5 percentage points, continuing to making underwriting profit

Balance of pension assets under management was over RMB80 billion

6Note: The above figures were measured in RMB


Overseas Insurance Businesses Recorded Steady Growth, Continued to Increase in Profit Contribution The premium of CTPI (HK) increased by 10.6% over the Last Year, ranking

No.4 in the market, and the underwriting profit increased by 39.6% over the Last Year

TP Macau continued to be No.1 in the market and the underwriting profit increased by 63.8% over the Last Year

The premium of TP UK increased by 60.4% over the Last Year

Property and Casualty Reinsurance business of TPRe continued to rank No.1 in the Hong Kong Market and that of long-term life insurance had breakthroughs, leading to an increase by 63.4% in total premium over the Last Year; underwriting profit of non-life-insurance businesses increased by 2.2 times

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Investment Income Increased Significantly with All Kinds of Investments Outperformed The total investment return of the Group was 5.8% overall, reaching a new

high in recent years

The investment assets within the Group amounted to HK$357.3 billion. Besides, the third-party entrusted investment assets also increased rapidly to HK$168.2 billion at the year end

Allocation scale of alternative investment has developed steadily with a return of 7.75%

Rental income from real estate properties increased substantially and the "Wutong Renjia" senior housing community commenced operation

Taiping & Sinopec Financial Leasing Co., Ltd. was officially put into operation, achieving profitability in the first year

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Successful Implementation of Strategic Cooperation and Cross-selling Initiatives with Large Clients In 2014, China Taiping signed Group Strategic Cooperation Agreements with

13 large clients, including China Tobacco, China Mobile, China Datang and China Merchants Bank. As at the end of 2014, China Taiping had established strategic cooperation relationships with 48 large clients

Our cross-selling initiatives achieved HK$2.43 billion of insurance sales, including HK$1.96 billion of property insurance sales through TPL, HK$320 million of pension sales through TPL, and HK$80 million of property insurance sales through TPP

The Sinopec gas station pilot project realized significant breakthroughs. By the end of 2014, over a thousand of outlets had been stationed, with insurance sales of nearly HK$90 million

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Brand Influence and Brand Value have been Significantly Improved In 2014, the ranking of China Taiping in the "Fortune" China 500 list

increased substantially After it was included in the list of the Best China Brands 2014 and the

2014 Hurun Most Valuable Chinese Brands List, China Taiping was awarded by Xinhua News Agency the "Most Trustworthy Insurance Institution" in the 5th Brand and Lifestyle Ranking 2015

A total of 9 companies of the Group received an A grade rating by international credit-rating agencies, which made the Group rank top among its domestic counterparts

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Status of Restructuring

All target assets have already been transferred to CTIH in

2014, with all settlement procedures completed. The 2014

financial results of CTIH have consolidated all target assets.

The restructuring process has been completed successfully

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Net Profit by Business Segment

HK$ million 2014 2013(Restated)

Change

Life Insurance 3,409 1,294 +1.6 times

PRC Property and Casualty Insurance 491 342 +43.6%Overseas Property and Casualty Insurance and Reinsurance 890 854 +4.2%

Pension and Group Life Insurance 56 2 +22.0 timesOthers 1 28 (152) -

Profit from operations 4,874 2,340 +1.1 timesNon-controlling interests (832) (687) +21.1%

Net profit attributable to the shareholders 4,042 1,653 +1.4 times

1 Others mainly include the operating results of the holding company, asset management, TPeC, TPIH, TPFH and consolidation adjustments

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The following figures are the results of TPL from its operations, before intra-group eliminations.

• TPL

Life Insurance Business Review

Note: In November 2013, the equity interest at TPL owned by the Group increased to 75.1% from 50.05%.

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Life Insurance: Premiums Grew Faster than Industry Averages, Market Share Increased, Sufficient Solvency Margin

Gross Premiums Written Market Share

Regulatory Solvency Margin Ratio

64,908 82,209

2013 2014

HK$ million

4.8%

5.1%

At 31 Dec 2013 At 31 Dec 2014

166%275%

At 31 Dec 2013 At 31 Dec 2014

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Life Insurance: Structure of Gross Premiums – By Distribution Channels

2013 201454 125

1,429 1,83128,524 38,81334,901 41,440

Rising Proportion of Individual Agency Business

* Other Channels comprise mainly telemarketing products15

53.8% 50.4%

43.9% 47.2%

2.2% 2.2%0.1% 0.2%

2013 2014

HK$ million

GroupOther Channels *IndividualBancassurance

64,908 82,209

Life Insurance: Individual Premium - First Year Regular Premium Increased Significantly, New Business Value Margin Remains StableFirst Year Regular Premium Profit Margin

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7,942

12,745

2013 2014

HK$ million

34% 33%

2013 2014

Life Insurance: Individual First Year Regular Premium

By Payment Term

Middle/Long Duration Products Over 80%

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20132014

69.0% 83.9%

31.0% 16.1%

Below 10 Years

10 Years and above

Life Insurance: Bancassurance First Year Regular Premium Grew Faster than Industry Averages, New Business Profit Margin Increased Significantly

First Year Regular Premium Profit Margin

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2,038

3,003

2013 2014

HK$ million

29%33%

2013 2014

10,600 16,331

At 31 Dec 2013 At 31 Dec 2014

RMB

Life Insurance : Individual Agent Size Target Achieved, Per Capita Productivity Significantly Improved, Increasing Numbers of High Producing Agents

Monthly Productivity Per Agent

Number of Outstanding Agents – Standardized Premium

Number of Individual Agents

112,796 133,734

At 31 Dec 2013 At 31 Dec 2014

More than 130,000

More than 130,000

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523 1,148 2,472

1,257 2,894

6,070

RMB1 Million Elite RMB500,000 Elite RMB300,000 Elite

At 31 Dec 2013 At 31 Dec 2014

Life Insurance: Persistency Ratios at the Forefrontof the Industry

Individual Bancassurance

92.3% 92.9% 92.6%

88.5% 88.4% 88.7%

At 31 Dec 2012 At 31 Dec 2013 At 31 Dec 2014

Persistency ratio ‐ 13th month


92.9% 92.3% 91.1%

90.2% 89.6% 88.5%

At 31 Dec 2012 At 31 Dec 2013 At 31 Dec 2014



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TPL Embedded Value

Embedded Value Key Components

1 Adjusted net worth is mainly the shareholders’ net assets of TPL as calculated on a PRC statutory basis

2 Fair value adjustments to HTM assets and its impact on profit/loss sharing with policyholders for participating business

45,390

65,553

At 31 Dec 2013 At 31 Dec 2014

HK$ million

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24,819

40,194

540

65,553

Adjusted Net Worth Value of In‐ForceBusiness

Fair valueadjustments to HTM

assets

Embedded Value

HK$ millionAt 31 Dec 2014

1

2

TPL Embedded Value– Movement Analysis of Embedded Value

* mainly include investment return, dividend, mortality, morbidity, lapses, expenses, income tax and business taxes, as well as the effect from reinsurance contracts

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45,390 4,326

4,215 4,262

7,360 65,553

Embedded Value asat 1 Jan 2014

New BusinessValue

Expected Return onEmbedded Value

HTM Fair ValueAdjustment

Investment Return,Other Experience

Variance and Others

Embedded Value asat 31 December

2014

HK$ million

*

TPL New Business Value Tendency

New Business Value Grow Faster Than Peers

2013

2014

3,148 4,326

HK$ million

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The following figures are the results of TPI from its operations, before intra-group eliminations.

• TPI

PRC Property and Casualty Insurance Business Review

Note: In November 2013, the equity interest at TPI owned by the Group increased to 100% from 61.21%.

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PRC P&C Insurance: Premiums Grew Faster than Industry Averages

Gross Premiums Written Regulatory Solvency Margin Ratio

20132014

13,519

16,750

HK$ million

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At 31 Dec 2013 At 31 Dec 2014

166%174%

PRC P&C Insurance

Combined Ratio Trend of Combined Ratio102.1%

99.9% 99.8% 99.8% 99.8%

2010 2011 2012 2013 2014

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52.8% 54.4%

47.0% 45.4%

2013 2014

Loss ratio Expense ratio

99.8% 99.8%

The following figures are the results of the respective companies from their respective operations, before intra-group eliminations.

Overseas Property and Casualty Insurance and Reinsurance Businesses Review

HK & Macau• CTPI (HK)• TP Macau

Overseas• TP Singapore• TP UK• TP Indonesia

Reinsurance• TPRe

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Overseas P&C Insurance and Reinsurance: Premium Income Steadily Increased

ReinsuranceOverseas P&C Insurance

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1,704

817

1,929

934

HK & Macau OverseasHK$ million 2013 2014

3,693 4,007 44

2,101

2013 2014HK$ million Non‐Life Life

3,737

6,108

3,737

6,108

Achieved Breakthroughs in Long Term Life Insurance Business

Overseas P&C Insurance and Reinsurance

Satisfactory Combined Ratios, Continued to Maintain Underwriting Profitability

* Non-Life

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95.7%87.8%

96.5%93.9% 91.3% 89.3%

HK & Macau Overseas Reinsurance*

2013 2014

The following figures are the results of TPP from its operations, before intra-group eliminations.

• TPP

Pension and Group Life Businesses Review

Note: In November 2013, the equity interest at TPP owned by the Group increased to 100% from 96%.

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Pension and Group Life BusinessesStrong Business Growth, Scale Expanding, Enterprise Annuities Continues to Grow

Annuity Invested Assets

Gross Premium Profit from Operation

Annuity Entrusted Assets

1,662

3,673

2013 2014

HK$ million

2

56

2013 2014

HK$ million

38,787 53,247

2013 2014

HK$ million

35,805 46,243

2013 2014

HK$ million

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Investments

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Group Invested Asset Allocation% 2013 2014

Fixed income 82.5% 78.6%Debt securities 49.0% 41.9%Term deposits 18.9% 15.6%Debt products 11.2% 16.9%Other fixed income investments 3.4% 4.2%

Equity investments 6.6% 10.1%Equity securities 2.2% 5.7%Investment funds 2.6% 1.5%Other equity investments 1.8% 2.9%

Investment properties 5.0% 4.5%Cash, cash equivalents and others 5.9% 6.8%

Total 100.0% 100.0%

Invested Asset

20132014

292,752

357,261

HK$ million

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Investment Income

Note 1 Including the income from the spread of investment securities, gain or loss on changes in fair value and impairment lossNote 2 Including the interest income from deposit, interest income from bonds, dividends from equity investments, rental income from investment properties and

deducting interest expense on securities sold under resale agreementsNote 3 In the calculation of total investment yield, as the denominator, the average investment assets takes into account the effect of securities purchase under

resale agreements and securities sold under repurchase agreements

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10,15213,927

1,128

3,539

2013 2014

HK$ million

Net realized and unrealizedinvestment gains

Net investment income

11,280

17,466

5.1% 5.8%Total investment yield Note 3

Note 2

Note 1

Debt Securities: Corporate Bonds and Bond Portfolio Have High Credit Ratings

93.9% of debt securities were domestic bonds, of which 95.5% weregovernment bonds, financial policy bonds with high credit ratings andcorporate government rated AAA. Investment grade bonds with BBBratings or higher reached 99.9%

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Foreign bonds accounted for the remaining 6.1%, of which 91.4% were investment grade with international ratings

22.2% 23.9%

49.4%

3.8% 0.6% 0.0% 0.1%

GovernmentBonds

FinancialPolicy Bonds

AAA AA A BB Non‐Rated

Credit Ratings forDomestic Bonds Portfolio

Alternative Investments:Further Reducing Risk Exposures of Alternative Investments

Under the same basis, alternative investment represents 19.1% of the total assets, a further decrease of 0.4 percentage point compared to 2014 1H

Among them, investment properties represents 3.6% of the total assets, a further decrease of 0.7 percentage point compared to 2014 1H

Continuous optimization in credit ratings of debt financial products, 86% were rated AAA, an increase of 4 percentage points from 2014 1H

Local Government Debt Financing Local government debt

investments of approximately HK$12 billion, represented 2.7% of the total assets

In 2015, with the replacement of local government debts to platform debts, the risk exposures of investment in local government debt reduced

93% of the projects were rated AAA, with the remaining 7% were rated AA+

67% of the projects had bank and central government-owned/large enterprises as guarantor

Major projects were located in tier 1 or new tier 1 cities

Real Estate Financial Investment Debt Products Real estate financial investment

debt products of approximately HK$16.7 billion, represented 3.8% of the total assets

Continuous optimization in credit ratings of the real estate financial investment debt products

All projects had bank guarantees or large enterprises guarantees or various forms of mortgages/ pledges or hybrid credit enhancements

Purchased External Trust Products Trust products of HK$7.2 billion

represented about 1.6% of the total assets. Trust products related to real estate were approximately HK$4.9 billion, representing about 1.1% of the total assets

90% of the purchased external trust products had external ratings of AAA, while the remaining 10% had ratings of AA

Key Risk Exposures Represented a Low Percentage of the Total Assets

Note: Including exposures to each other, which is not directly in the total

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Outlook

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Outlook

Implementing The “Boutique Strategy” to Create The “Most Unique and High Potential Boutique Insurance Company” The “Three Year Rebuilding” strategic objectives have been fully completed, which

boosted the Group’s overall strength, brand influence, market position as well as operation and management capabilities. Basing on its actual situation and actively adapting to the new normal of the Chinese economic development, China Taiping will develop in a market-oriented, customer-focused and innovation-driven manner, and create the “most unique and high potential boutique insurance company” as its strategic objective in a future period

2015 is the first year of implementing the “Boutique Strategy”. China Taiping will adhere to the general principles of steady growth, innovation-driven, customer first, focusing on benefit, and operating in conformity, committing concrete efforts to promote the corporate scale, benefit, management and service to a new level and achieve fast, robust and sustainable growth of the overall business

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Outlook (Cont’d)

TPL To achieve concurrent growth of scale and value, continuously optimizing business

structure, and have individual regular premium and new business value to grow faster than peers

To innovate the development model of individual insurance agents to achieve sustainable growth of agents based on the consolidation and improvement of agent retention rate

To improve the bancassurance operation of outlets and clients to improve per capita productivity and outlet productivity

To continue to strengthen renewal management to lead the industry with quality business

To strengthen differentiated management of agencies and act according to the actual situation. To implement the operational strategy and resource allocation based on the agency’s development

To enhance cost controls, reduce fee deficit and improve business value

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Outlook (Cont’d)

TPI To develop innovative, differentiated and refined business

To pursue steady increase of market share, persistency ratio and underwriting profitability

To actively respond to the market reform of premium rate of commercial motor insurance

To expand and improve the development of third and fourth-tier agencies

To achieve new breakthroughs in insurances for agriculture, liability, credit, accident and health, and marine

TPP To expand cooperation projects with the government, and grow the business with

strategic clients

To grasp policies and opportunities to boost health and pension business

To further improve the asset management scale and profitability of pension

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Outlook (Cont’d)

Overseas Property & Casualty Insurance and Reinsurance CTPI (HK) will retain and grow its pool of large clients, achieve breakthroughs in major

projects, and have faster business development in accident and medical insurances, more cooperation with the mainland, a larger business market of self-insurance and continuously growing its market share

TP Macau will enhance product innovation, increase new business growth points, consolidate its leading market position and stabilize its profitability

TP Singapore will further explore potential business and pursue benefit-oriented business to achieve fast growth of premium

TP UK will achieve breakthroughs in expanding its business with Chinese-funded companies, pursue participation in the Lloyd’s business and maintain faster business growth

TP Indonesia will pursue steady growth of the business with Chinese-funded companies, further boost local business, and improve benefit and scale

TPRe will expedite the development of its PRC reinsurance market and life reinsurance business, improve the risk management against catastrophes, and achieve sustainable profit growth

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Outlook (Cont’d)

Investment In respect of investment business, the Group is committed to building

a leading platform for investment management Regarding the application of insurance funds investment, the Group

will adopt the international practice to further improve its system of investment management. In accordance with the requirement of solvency II issued by CIRC, the Group will optimize the investment structure of alternative assets and improve the stability and return of risk asset investment

In respect of third-party asset management business, the Group will improve its comprehensive financial presence, and leverage on its cross-border strength to continue to boost its third-party assets under management

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Questions & Answers

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Documents

CHINA TAIPING INSURANCE HOLDINGS COMPANY …HOLDINGS COMPANY LIMITED 2014 ANNUAL RESULTS PRESENTATION 26 March 2015 Forward-Looking Statements This presentation and subsequent discussions