09:02 PICC P&C<02328> - Results Announcement (2) An analysis of turnover, interest and dividend income and net gains/( losses) on trading and non-trading securities is as follows: 7 July to 31 December Pro forma 2004 2003 2003 RMB million RMB million RMB million Turnover Direct premiums written 65,577 24,969 58,074 Reinsurance premiums assumed 6 7 11 ---------------------------------------- 65,583 24,976 58,085 Less: Government levies and surcharges (3,580) (1,333) (3,117) ---------------------------------------- 62,003 23,643 54,968 ======================================== Net premiums earned Turnover 62,003 23,643 54,968 Less: Reinsurance premiums ceded (9,283) (5,289) (11,116) ---------------------------------------- Net premiums written 52,720 18,354 43,852 Less: Changes in net unearned premium reserves (2,092) 1,569 (3,443) ---------------------------------------- Net premiums earned 50,628 19,923 40,409 ======================================== Interest and dividend income Interest income from trading and non-trading securities 436 35 164 Interest income from bank deposits 504 332 474 Interest income from held-to-maturity securities 68 - - ---------------------------------------- Dividend income from trading and non-trading securities 244 22 52 ---------------------------------------- 1,252 389 690 ---------------------------------------- Net gains/(losses) on trading and non-trading securities Realised gains on trading securities - Mutual funds (12) 3 11 Realised gains/(losses) on trading securities - Debts (14) (4) 3 Unrealised gains/(losses) on trading securities - Mutual funds (745) 22 192 Unrealised gains/(losses) on trading securities - Debts (67) (17) 10 Impairment loss on trading securities (89) - - Net gains/(losses) on disposal of non-trading securities: Realisation of revaluation reserve previously recognised (5) (5) - Recognised gain arising in the period/year 62 31 44 ---------------------------------------- Impairment loss on non-trading securities (78) - - ---------------------------------------- (948) 30 260 ======================================== 3. NET CLAIMS INCURRED 7 July to Pro forma 2004 31 December 2003 2003 RMB million RMB million RMB million Gross claims expenses 42,257 17,295 35,114 Less: Loss recovered from reinsurance (6,994) (4,067) (7,444) ------------------------------------------------ Net claims expenses 35,263 13,228 27,670 Add: Change in net loss and loss adjustment expense reserves 3,642 1,217 1,395 Add: Change in net provision for premium deficiency - (1) (2) ------------------------------------------------ Net claims incurred 38,905 14,444 29,063 ================================================