Date
21 July 2017
PICC chairman Wu Yan said the impact of the blasts on the company's net profit this year is likely to be insignificant. Photo: HKEJ
PICC chairman Wu Yan said the impact of the blasts on the company's net profit this year is likely to be insignificant. Photo: HKEJ

China insurers still gauging losses from Tianjin blasts

PICC Property & Casualty Co. Ltd. (PICC, 02328.HK), China Pacific Insurance (Group) Co. Ltd. (CPIC, 02601.HK) and other mainland insurers are still assessing potential losses from the Aug. 12 blasts in the northern coastal city of Tianjin, the Hong Kong Economic Journal reported Tuesday.

PICC chairman Wu Yan (吳焰) said the impact of the blasts on the company’s net profit this year is expected to be insignificant, although he refused to disclose the amount the company is likely to pay to claimants. The powerful blasts killed at least 139 people and devastated the port area.

Vice chairman and president Guo Shengchen (郭生臣) acknowledged that there is a large number of insurance policies covering storage facilities, homes and corporate assets that were destroyed or affected by the explosions, not to mention the co-insurance, mutual insurance and reinsurance deals involved.

PICC, however, had reinsured many of the deals and foresees no material impact on its financial results this year, Guo said.

CPIC property and casualty insurance chairman and general manager Gu Yue (顧越) said it is difficult to measure the potential losses at the moment, given that authorities have cordoned off the blast site.

The company is also confident that losses from the incident would be minimal as it had reinsured most of the related insurance policies with international peers, Gu said.

[Chinese version中文版]

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