Huatai Insurance

From the incorporation of the Company to the end of 2006, an average annual growth of 25.97% has been achieved for property insurance premium, exceeding the average increase rate of property insurance in the country. In 2006, Huatai achieved an after-tax profit of RMB 167.67 million which represents a ROE of 10.50% and earning per share of RMB 0.1258. The Company’s total assets climbed from RMB 8.1 billion at the beginning of the year to RMB 19.290 billion, with net assets reaching RMB 1.827 billion. Its solvency was 10.4 times of the minimum set by regulatory authority.

In 2006, Huatai achieved a direct premium income increase of 25.58% to RMB 1.478 billion, loss and loss expenses ratio of 60.83%, and an underwriting profit of RMB 5.85 million after US GAAP adjustment (with expense deferred reasonably). The balance of investment-type insurance products was increased by 1.6 times from RMB 2.522 billion at the end of 2005 to RMB 6.656 billion at the end of 2006.

In 2006, Huatai achieved its best-ever investment performance since its establishment, with an investment income of RMB 303 million, representing a ROI of 11.52%, and a net value increase of RMB 635 million, representing an increase rate as high as 24.12%. Assets under management of Huatai Asset Management Company also grew at fast speed, leaping from over RMB 5 billion at the beginning of 2006 to near RMB 15 billion at the end of the year.

Huatai is one of the initiators of both the China Space Insurance Pool and the Nuclear Insurance Pool. For the ten years since its establishment, the Company has underwritten many satellite launch projects and nuclear power projects, which has fully displayed its strength.

Some of the influential key projects underwritten by Huatai and it’s major clients include: Beijing Light Rail, Shanxi-Beijing Gas Supply Pipeline, Sudan Merowe Dam, Beijing CBD Fortune Center, Guohua Power Project, China Resources Power (Changshu) Co., Ltd., China Resources Power (Changshu) Co. Ltd, Mansion of State Administration of Foreign Exchange, Mansion of State Tobacco Monopoly Administration, Shanghai Jinmao Tower, CNOOC - Bohai No.6 Oil Field, Shanghai Pudong Steel Group, Baosteel, CCTV live-broadcasting projects (for the celebration of the 50th anniversary of the founding of the People's Republic of China, the return of Macao, and the Sydney Olympic Games), Shanghai GM, 300,000-ton synthetic ammonia project of Nanjing Chemical Industry Group, CNOOC Oilfield Service Co., Ltd, Shanghai World Financial Center, Semiconductor Manufacturing International Corportation, Bank of Communications, Industrial and Commercial Bank of China, Yuxi Hongta Tobacco Co., Ltd, China National Tobacco Import & Export Group Corporation, Honeywell Group, General Electric, SINOPEC International Co., Ltd, Shanghai SECCO Petrochemical Co., Ltd, China Resources Snow Breweries Co., Ltd., Bright Dairy etc.

Huatai possesses unique technical advantages and products in the field of science and technology insurance, which provide protection to the development of high and new technology of China.

F1 in Shanghai	Omlypic Games	the ASIAN CUP logo	Shanghai ZhenHua Harbor Machinery
HangZhou BanShan Power Station	CCTV, a project underwritten by Huatai	Gloria Plaza Hotel, a project underwritten by Huatai	State Power Grid Company, a project underwritten by Huatai
Shanxi-Beijing natural gas supply pipeline, a project underwritten by Huatai	Beijing light rail, a project underwritten by Huatai	Shanghai General Motors Co. Ltd.	Bohai No. 6 Oilfield of the China National Offshore Corporation
Shanghai Pudong Steel Group	Jialing Electronic Power	Shaohuai High Way	CASA Combination