China Pacific Insurance Group Co Ltd Q3 2023 Earnings Call (Chinese, English) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Qingqing Mao - China International Capital Corporation Limited, Research Division - Analyst : I'm Mao Qingqing from CICC. I have 2 questions. Number one, about agency team. You mentioned -- well, your agency sales force is stabilizing with improving KPIs. No, that's good news for us. So the question is, how do you view this trend? Is it because of your Changhang action plan or is it because of the improving market situation? Now how's your prediction about next year? Secondly is about PMC. Now of course, CPIC we had REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2023 / 8:30AM, 601601.SS - Q3 2023 China Pacific Insurance Group Co Ltd Earnings Call (Chinese, English) another flooding and the natural disaster but your performance is quite stable in Q3. So if we exclude this natural catastrophe impact, how will it be for your PC business? Unidentified Company Representative Let me answer your first question about the trend for these agency team. In terms of the total number of agents, it was down -- it's starting, but it's slowing down. The case is slowing down. We believe the total number of our agents will go down further. We will remove some of those poor performing or fake agents, so it will be still ongoing, I mean, going forward. So the team will become more stronger and stronger. So compared to the total industry, the whole institute will see further drop on total number of agents. But this is not necessarily a bad thing. Actually, we believe the quality of the sales force is improving. If you look at the activity is improving, we believe, especially the conductivity of our core agents will improve steadily. And now this is because thanks to the activity management and also improving product mix. Because now they are not selling product one policy at a time, it's more like new based (inaudible). Families would need not only health but also in life, but also CI, the retirement, et cetera. So our agents, they will sell multiple policies. And thirdly, our agents, they have better skills. For example, they are now better at a selling CI products, selling long-term product 23 products, 33 products and also, as we can see better recruitments will produce momentum, better recruitment, better trend, you can see our number of new agents grew double digits and the 30th month retention also improved quite a lot. The health next year, well, first of all, on one hand, improve the quality of our new agents and also improve the total number of our new agents and the hope, I'm very optimistic. Now second question may be Mr. Zhang wants to answer it.