SinaAccording to the financial news on January 21,China People's InsuranceFinancial Insurance issued an announcement stating that for the year ended December 31, 2019, according to the company's preliminary estimates, net profit for 2019 is expected to increase by about 35% to 60% compared to 2018.

The announcement stated that in 2019, the company's premium income increased steadily, and investment income increased year on year. Meanwhile, in May 2019, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Pre-tax Deduction Policies for Handling Fees and Commission Expenses of Insurance Companies” (Ministry of Finance and the State Administration of Taxation Notice No. 72 of 2019, hereinafter referred to as the “New Deal”), which stipulates that the pre-income tax deduction ratio for handling fees and commission expenses is raised to 18%, and that the excessive portion allows the carry-over of deductions for subsequent years. The new policy applies to 2018 income tax settlement. The company confirmed the impact of the New Deal on 2018 income tax expenses in 2019 at one time, and the net profit for this year increased accordingly.

Responsible editor: Zhang Yuancheng