Securities code: China Pacific Insurance (Group) Co.Ltd(601601) securities abbreviation: China Pacific Insurance (Group) Co.Ltd(601601) Announcement No.: 2022009 important tips
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd
Announcement on changes in accounting estimates
Important note: this accounting estimate change increases the total liability reserve of life insurance and long-term health insurance after considering the separation of business on December 31, 2021 by about RMB 14.621 billion, and reduces the total profit of the company in 2021 by about RMB 14.621 billion.
1、 Overview
Based on the current information available on the balance sheet date, China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd. (hereinafter referred to as “the company”) determines actuarial assumptions including discount rate, mortality and disease incidence rate, surrender rate, expenses, policy dividends and other actuarial assumptions to measure the reserves of various insurance contracts on the balance sheet date. The company adjusted the above assumptions according to the current information on December 31, 2021.
On March 25, 2022, the board of directors of the company reviewed and approved the proposal on the change of accounting estimates of China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd. in 2021.
2、 Specific situation and impact on the company
1. Contents and reasons for changes in accounting estimates.
Based on the current information available on the balance sheet date, the company determines actuarial assumptions, including discount rate, mortality and disease incidence rate, surrender rate, expenses and policy dividends, to measure the reserves for various insurance contracts on the balance sheet date.
On December 31, 2021, the company adjusted the above assumptions according to the current information (mainly the change of the benchmark curve of discount rate for the evaluation of insurance contract liabilities). The change of life insurance and long-term health insurance contract reserves caused by the change of the above assumptions is included in the profit statement of this year. This change in accounting estimates increases the total liability reserve for life insurance and long-term health insurance after considering the separation of business on December 31, 2021 by about RMB 14.621 billion, and decreases the total profit in 2021 by about RMB 14.621 billion.
2. The company adopts the future applicable method to deal with this change in accounting estimates.
3、 Opinions of independent directors on changes in accounting estimates
1. This accounting estimate change is a reasonable adjustment made by the company in accordance with the relevant provisions of the Ministry of finance of China (hereinafter referred to as “the Ministry of finance”) and the former China Insurance Regulatory Commission (hereinafter referred to as “the former CIRC”) and based on relevant assumptions;
2. The review procedure of this accounting estimate change complies with the provisions of the articles of association and relevant laws and regulations, and we agree to this accounting estimate change.
4、 Opinions of the board of supervisors on changes in accounting estimates
The board of supervisors of the company believes that the above accounting estimate change is a reasonable adjustment made by the company in accordance with the relevant provisions of the Ministry of Finance and the original CIRC and based on relevant assumptions, and agrees to the accounting treatment of this accounting estimate change.
5、 Opinions of accounting firms on changes in accounting estimates
PricewaterhouseCoopers Zhongtian Certified Public Accountants (special general partnership) issued the special report on the change of accounting estimates of China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd. in 2021 with respect to the above changes in accounting estimates.
6、 Online announcement attachment
1. Special instructions and independent opinions of independent directors on changes in accounting estimates in 2021; 2. Special instructions of the board of directors of China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd. on changes in accounting estimates in 2021;
3. Special instructions of the board of supervisors of China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd. on changes in accounting estimates in 2021;
4. Special report on changes in accounting estimates of China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd. in 2021 issued by the accounting firm;
5. Audit report.
It is hereby announced.
Board of directors of China The Pacific Securities Co.Ltd(601099) insurance (Group) Co., Ltd. March 28, 2022
