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of consolidating and expanding its existing property insurance and investment business, Huatai is energetically preparing for the establishment of a life insurance pany and an insurance asset management pany, in a bid to move in the direction of building itself into a financial and insurance group.III. Operational PerformanceSince its establishment Huatai has expanded its insurance business steadily, achieved sound development, reported remar kable operational performance in investment business and bee a leader in the insurance industry. It has maintained a stable profit rate and dividend rate, and provided satisfactory investment returns for its shareholders.s Jinrong Street. It established a fund to assist poor students in six universities, set up the Huatai Insurance Greening Center and donated insurance to the Lei Feng Tower in Hangzhou, and provided liability insurance to 285 primary schools in Chongqing and to university students in poverty. It also participated in public welfare activities such as the charity show for the fight against SARS. The Huatai CPC Committee, Huatai Communist Youth League Committee, and Huatai trade union organization are all active in organizing exercise activities for staff, such as mountain climbing, tree planting and soccer matches.。s financial report for 2003, the ROI hit %, and aftertax return on capital of % in 2003. At the end of December 2003, its total assets were worth RMB 5,649 million.IV. Insurance BusinessThe year 2003 is the year in which Huatai forged ahead in the course of adjustment. Huatai did not waver in pursuing the strategic principle of persisting in specialized operation and development focusing on quality and profitability. It set the scientific development concept of integrating the growth rate, structure, quality, and profitability. In an everchanging market, it always maintained a sober mind and steadily pushed forward a strategic shift in operation, achieving marked results and high operating performance.In personal insurance business, Huatai, based on actuarial results, promptly adjusted its insurance verification policy to bring under control the risks in automobile insurance and other lines of business. In mercial insurance, it tightened the examination, verification and check of underwriting targets, and became even stricter in choosing business. It improved its overall insurance product mix and achieved a 50% increase in its nonautomobile insurance business in 2003, which begun the year witnessing the fastest growth since the founding of Huatai. The ratio of nonautomobile business jumped from 37% in 2002 to 41% in 2003. Huatai also carried