September 13, 2012—A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of China Reinsurance (Group) Corporation (China Re) (China)and its subsidiaries, China Property & Casualty Reinsurance Company Ltd. (CPCR) (China)and China Life Reinsurance Company Ltd. (CLRC) (China).The outlook for all ratings is stable.

　　The ratings consider China Re’s consistently profitable operating performance and its leading position within the domestic reinsurance market. The rating affirmations reflect China Re’s solid risk-adjusted capitalization.

　　China Re’s active expansion in overseas business for portfolio diversification has led to the accumulation of worldwide catastrophe risk over the past few years. Since 2011, China Re has taken initiatives to enhance its pricing capability and catastrophe risk control on overseas business, reflecting the commitment to strengthen its overall risk management capability in the long run.

　　The rating affirmations for CPCR and CLRC reflect the companies’ continued profitable operating performance.

　　The favorable underwriting result of CPCR was mainly driven by the improved loss experience. A.M. Best anticipates the prospective underwriting profitability of CPCR will be challenged by the increasing market competition from both the onshore and offshore reinsurers, while investment income will increase its importance in supporting CPCR’s operating profitability as well as its organic shareholder’s equity growth over the next three years.

　　CLRC successfully developed cross-border Renminbi reinsurance business. This new opportunity allowed CLRC to accumulate experience for further expansion in other Asian regions. CLRC also will benefit from the interest rate differential between onshore and offshore Renminbi markets. For CLRC’s short-term life and accident and health business, the combined ratio was maintained at a profitable level and is expected to remain at a similar level in the near future.