Ping An Insurance (Group) Company Of China Ltd(601318) insurance (Group) Co., Ltd. board of supervisors
Special notes on changes in accounting estimates
In accordance with the relevant requirements of self regulatory guidelines for listed companies on Shanghai Stock Exchange No. 2 - business handling, the board of supervisors of Ping An Insurance (Group) Company Of China Ltd(601318) insurance (Group) Co., Ltd. (hereinafter referred to as "the company") reviewed the relevant contents of the changes in the accounting estimates of insurance contract reserves involved in the 2021 annual report of the company due to the implementation of the relevant provisions of the interpretation of accounting standards for Business Enterprises No. 2 issued by the Ministry of finance of the people's Republic of China, The following are the specific reasons: the company must make a major judgement on the economic assumptions and the non economic assumptions such as the discount rate / return on investment, the mortality rate, the incidence rate, the surrender rate, the insurance dividends and the cost, etc. These measurement assumptions shall be determined based on the current information available on the balance sheet date. On December 31, 2021, the Company re determined the above relevant assumptions based on the current information (mainly the change of the benchmark curve of the discount rate for the evaluation of insurance contract liabilities, and adjusted the non economic assumptions according to the latest experience and trend), updated the estimation of future cash flow, and included the changes of relevant insurance contract reserves in the profit statement of the current year. This change increases the liability reserve for life insurance and long-term health insurance by RMB 22566 million as of December 31, 2021, and decreases the pre tax profit of 2021 by RMB 22566 million.
The board of supervisors of the company believes that the above changes in accounting estimates made by the company in accordance with the interpretation of accounting standards for Business Enterprises No. 2 and based on the information available on the balance sheet date are reasonable. The impact of the above changes in accounting estimates on the pre tax profit in 2021 is to reduce the pre tax profit by a total of RMB 22566 million.
Ping An Insurance (Group) Company Of China Ltd(601318) insurance (Group) Co., Ltd. board of supervisors March 17, 2022
