The daily profit is 278 million yuan and the annual cash dividend is 43.174 billion yuan… On March 17, Ping An Insurance (Group) Company Of China Ltd(601318) disclosed the annual report of 2021.
According to the data, in 2021, Ping An Insurance (Group) Company Of China Ltd(601318) realized operating profit attributable to parent company of 147961 billion yuan, with a year-on-year increase of 6.1%; The net profit attributable to the parent company was 101618 billion yuan, a year-on-year decrease of 29.0%. The company plans to pay annual dividends to shareholders, with cash per share of 2.38 yuan, a year-on-year increase of 8.2%.
It is worth mentioning that as of the closing on March 17, Ping An Insurance (Group) Company Of China Ltd(601318) a shares closed up 2.73% to 45.5 yuan; H shares rose rapidly in the late trading and finally closed up 10.49% to HK $55.3.
steady growth in performance
By the end of December 2021, Ping An Insurance (Group) Company Of China Ltd(601318) individual customers exceeded 227 million; At the same time, the proportion of individual customers holding contracts with multiple subsidiaries increased to 39.3%. In 2021, the comprehensive financial financing scale of group business increased by 26.9% year-on-year.
In terms of life insurance and health insurance business, in 2021, Ping An Insurance (Group) Company Of China Ltd(601318) life insurance and health insurance business achieved an operating profit of 97.075 billion yuan, a year-on-year increase of 3.6%; In 2021, the scale of outstanding teams was stable, and the per capita new business value increased by more than 20%.
In terms of property insurance business, in 2021, the comprehensive cost rate of Ping An Property Insurance was optimized by 1.1 percentage points year-on-year to 98.0%; Underwriting profit increased by 145.7% year-on-year to 5.136 billion yuan. The premium income of original auto insurance increased by 8.7% year-on-year in the fourth quarter of last year.
In terms of technology business, in 2021, the total revenue of Ping An Insurance (Group) Company Of China Ltd(601318) technology business reached 99.272 billion yuan, a year-on-year increase of 9.8%; The operating profit attributable to the parent company was 7.948 billion yuan, a year-on-year increase of 19.5%. By the end of December 2021, Ping An Insurance (Group) Company Of China Ltd(601318) technology patent applications had increased by 7008 over the beginning of the year, reaching 38420 in total.
In terms of green finance that has attracted much attention, as of December 31, 2021, Ping An Insurance (Group) Company Of China Ltd(601318) green investment and financing scale is 224580 billion yuan, and green banking business scale is 89.813 billion yuan; In 2021, the premium income of original insurance of environmental sustainable insurance was 44.569 billion yuan.
annual total cash dividends of 43.174 billion yuan
Since last year, the A-share insurance sector has continued to fluctuate and adjust, and the Ping An Insurance (Group) Company Of China Ltd(601318) share price known as the “big blue chip” has also adjusted to a certain extent.
In this context, in August 2021, Ping An Insurance (Group) Company Of China Ltd(601318) convened the fourth meeting of the 12th board of directors to consider and adopt the proposal on reviewing and repurchasing the company’s shares, saying that the company plans to use its own funds of no less than 5 billion yuan and no more than 10 billion yuan (including this amount) to repurchase the company’s A-share shares at a price of no more than 82.56 yuan / share. The term of this repurchase shall not exceed 12 months from the date when the repurchase plan is considered and approved by the board of directors.
As of February 28, 2022, Ping An Insurance (Group) Company Of China Ltd(601318) this repurchase has totally repurchased 777651 million A-Shares through centralized bidding, accounting for 042541% of the total share capital of the company. The total amount of funds paid is 3.899 billion yuan (excluding transaction costs), the minimum transaction price is 48.18 yuan / share, and the maximum transaction price is 51.96 yuan / share.
While the repurchase demonstrates the confidence of the company, Ping An Insurance (Group) Company Of China Ltd(601318) will also carry out the “high dividend” to the end. High dividend means that individual investors can obtain “stable income” as long as they insist on holding shares. In fact, Ping An Insurance (Group) Company Of China Ltd(601318) has always been the “model” of high dividend in listed companies. Since 2017, the cash dividend paid by Ping An Insurance (Group) Company Of China Ltd(601318) per share has been continuously increased.
Source: company announcement
in the 2021 annual report, Ping An Insurance (Group) Company Of China Ltd(601318) announced that it planned to pay a final dividend of 1.50 yuan in cash per share in 2021 the annual dividend was RMB 2.38 per share in cash, an increase of 8.2% year-on-year, and the total cash dividend reached RMB 43.174 billion ; The cash dividend ratio (excluding repurchase) calculated based on the operating profit attributable to the parent company is 29.2%; The total cash dividends in the past five years have grown at a compound annual rate of 25.8%.
Ping An Insurance (Group) Company Of China Ltd(601318) said that the annual cash dividend level of the company in 2021 was slightly higher than the shareholder return plan formulated by the company, but maintained the continuity and stability of the profit distribution policy and enabled all shareholders to obtain sustained, stable and reasonable returns.
monthly average number of insurance agents fell below 800000
continue to promote the reform of life insurance
2021 is a difficult year for the life insurance industry. Ping An Insurance (Group) Company Of China Ltd(601318) continues to promote the reform of life insurance in the throes.
The annual report shows that in 2021, the new business value of Ping An Insurance (Group) Company Of China Ltd(601318) life insurance and health insurance business was 37.898 billion yuan, a year-on-year decrease of 23.6%; Without considering the impact of hypothetical adjustment, the value of new business decreased by 18.6% year-on-year, which was mainly affected by the decline in the value rate of new business caused by the increase in the proportion of savings products, as well as the decline in the number of agents during the transformation period due to the company’s adherence to high-quality human development.
Source: company announcement
The reporter noted that the average number of monthly agents of the company in 2021 was 796000, which decreased by 24.5% year-on-year compared with 1055000 in the previous year. By the end of 2021, the number of Ping An Insurance (Group) Company Of China Ltd(601318) personal life insurance sales agents had dropped to V V Food & Beverage Co.Ltd(600300) , while the number at the end of 2020 was 1023800, a year-on-year decrease of 41.4%.
In view of the current market environment, Ping An Insurance (Group) Company Of China Ltd(601318) said that the macroeconomic situation and the situation outside China are complex and changeable, the impact of covid-19 pneumonia continues, and the life insurance industry is facing challenges from the market, the development of agent team and other aspects. Transformation has become the consensus of the industry. Ping An Life Insurance first implemented the reform and promoted the optimization of agent team structure and the improvement of business quality through the “channel + product” two wheel drive strategy.
Ping An Insurance (Group) Company Of China Ltd(601318) said that although the decline in the number of agents had a certain impact on the business, in the long run, the team structure of the company will be gradually optimized to lay a solid foundation for long-term sustainable development in the future. In 2021, the annual per capita new business value of agent channel exceeded 39000 yuan, and the per capita first year premium increased by more than 22% year-on-year.
