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(a joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 2328)

ANNOUNCEMENT IN RELATION TO FINANCIAL STATEMENTS
OF THE COMPULSORY THIRD PARTY MOTOR INSURANCE

This announcement is made in accordance with Rule 13.09 of the Rules Governing the
Listing of Securities on
PICC Property and Casualty Company Limited (the “Company”) was notified by China
Insurance Regulatory Commission (“CIRC”) that CIRC will publish on its official website
(www.circ.gov.cn) the financial statements of the compulsory third party motor insurance (the
“Compulsory Motor Insurance”) for the period from 1 July 2006 to 30 June 2007 (the
“Period”) submitted to CIRC by each of the insurance companies carrying on the Compulsory
Motor Insurance business in the PRC.

The financial statements of the Compulsory Motor Insurance of the Company for the Period
(the “Financial Statements”) submitted to CIRC by the Company have been prepared in
accordance with the PRC Accounting Standards for Business Enterprises, the related
regulations of CIRC and the Company’s expense allocation policies previously filed with
CIRC (the “Basis of Preparation”). The Financial Statements have been audited by the
domestic auditors of the Company and approved by the Board of Directors of the Company.
According to the Financial Statements, among other things, premium income was
RMB21,394.8 million, total premium earned was RMB9,803.5 million, total claims was
RMB6,166.7 million, total operating expenses was RMB5,156.0 million, investment income
allocated was RMB481.9 million, the operating losses and accumulated losses at the end of
the Period was RMB1,037.3 million in respect of the Compulsory Motor Insurance segment
of the Company for the Period.

The Financial Statements are not prepared in accordance with Hong Kong Financial
Reporting Standards and the accounting principles generally accepted in Hong Kong adopted
in the Company’s published financial statements. Under the requirements of the Basis of
Preparation, policy acquisition costs are not allowed to be deferred. According to the
accounting policies adopted in the Company’s published financial statements, policy
acquisition costs are required to be deferred. In the case of policy acquisition costs are
deferred, the total operating expenses of the Compulsory Motor Insurance segment of the
Company for the Period is reduced, underwriting results is at a breakeven level, and after
adding investment income, the Compulsory Motor Insurance segment records an operating
profit. For the operating results of the Company for 2006 and the first half of 2007, please
refer to the financial information included in the Company’s published 2006 annual report
and 2007 interim report.

The purpose of this announcement is to notify investors of the above matter and disclose the
aforementioned financial information in this announcement.


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Investors are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board
Liu Zhenghuan
Secretary of the Board
Beijing, the PRC, 29 November 2007

On the date of this announcement, the Chairman of the Board is Mr. Wu Yan (executive director), the Vice
Chairman is Mr. Wang Yi (executive director), Mr. Wang Yincheng and Md. Liu Zhenghuan are the executive
directors, the non-executive directors are Mr. Tse Sze-Wing, Edmund, Mr. Wu Gaolian, Mr. Zhou Shurui and Mr.
Li Tao, the independent non-executive directors are Mr. Cheng Wai Chee, Christopher, Mr. Lu Zhengfei, Mr. Luk
Kin Yu, Peter and Mr. Ding Ningning.