On the evening of March 25, The People’S Insurance Company (Group) Of China Limited(601319) ( The People’S Insurance Company (Group) Of China Limited(601319) . SH) released its annual report for 2021, which showed that the net profit in 2021 was 30.602 billion yuan, an increase of 8.2% year-on-year; The net profit attributable to shareholders of the parent company was 21.638 billion yuan, a year-on-year increase of 7.8%. Earnings per share was 0.49 yuan, and the weighted average return on net assets (ROE) was 10.3%.
The board of directors of the group approved the profit distribution plan for 2021 and planned to distribute cash dividends of RMB 1.47 (including tax) for every 10 shares to all shareholders, totaling about RMB 6.501 billion. In addition to the interim dividend, a total cash dividend of 1.64 yuan per 10 shares was distributed to shareholders in 2021, with a year-on-year increase of 5.1%. Based on the net profit attributable to the parent company, the dividend rate reached 33.5%.
In 2021, The People’S Insurance Company (Group) Of China Limited(601319) group’s insurance business revenue was 585423 billion yuan, a year-on-year increase of 3.9%; The total assets at the end of the period were 1.38 trillion yuan, a year-on-year increase of 9.6%. The total return on investment was 5.8%, unchanged from the previous year and maintained a high level.
property insurance loss ratio increased by 7.4 percentage points
PICC Property Insurance is the core subsidiary of PICC group. It is the largest property insurance company in China and also the head property insurance in the world. According to the The People’S Insurance Company (Group) Of China Limited(601319) annual report, PICC P & C realized an insurance business revenue of 449533 billion in 2021, a year-on-year increase of 3.8%. The market share was 32.8%, ranking first in the industry. The business growth is mainly due to the growth of accidental injury and health insurance, agricultural insurance, liability insurance, freight insurance and other businesses. The net profit was 22.586 billion yuan, a year-on-year increase of 8.4%.
Among the underwriting efficiency indicators, the comprehensive cost rate of PICC Property insurance last year was 99.5%, up 0.6 percentage points year-on-year. This is the first time that the company’s comprehensive cost rate has exceeded 99% since 2010.
Taken apart, its comprehensive loss ratio increased by 7.4 percentage points to 73.6%, mainly due to the comprehensive reform of vehicle insurance and the impact of major disasters and accidents such as rainstorm and typhoon; Its expense rate decreased by 6.8 percentage points year-on-year to 25.9%. Its underwriting profit was 1.81 billion yuan, a year-on-year decrease of 56.4%.
Among the various businesses of PICC Property Insurance, auto insurance accounted for more than half, and the premium income was 255275 billion yuan, a year-on-year decrease of 3.9%. According to the annual report, the renewal rate of auto commercial insurance and traffic compulsory insurance and the number of insured cars have increased year-on-year. However, due to the decline of the rate, the average car premium has decreased year-on-year, affecting the overall premium. In terms of non auto insurance business, the total premium income was 193109 billion yuan, a year-on-year increase of 16.1%, accounting for 43.1%, an increase of 4.6 percentage points year-on-year.
PICC Property and casualty insurance and credit guarantee insurance have attracted attention before. In 2021, the premium income of this business was only 2.84 billion yuan, a significant year-on-year decrease of 46.2%. PICC said that the risk of financing credit guarantee insurance business has been effectively resolved, and the recovery income will reach 2.596 billion yuan in 2021. The financing credit guarantee insurance business turned losses into profits, and the non financing credit guarantee insurance business maintained a good underwriting profit. The overall comprehensive cost rate of credit guarantee insurance was 66.7%, a year-on-year decrease of 78.1 percentage points; The underwriting profit was 1.762 billion yuan, turning losses into profits.
PICC also has reinsurance business layout. In 2021, PICC Reinsurance played the role of the group’s professional reinsurance platform, achieving a reinsurance income of 6.811 billion yuan, a year-on-year increase of 31.2%, and the proportion of third-party business continued to increase; Its business scope extends to property insurance head companies; New steps have been taken in the international layout, with Moody’s A3 and S & P a-international ratings, becoming the first Chinese funded insurance institution registered in Argentina. In 2021, PICC’s reinsurance net profit increased by 53.0% year-on-year.
The life insurance business of PICC group had an embedded value of 127607 billion yuan at the end of 2021, with a year-on-year increase of 8.8%. This sector mainly has two subsidiaries, namely PICC Life Insurance and PICC Health Insurance. Among them, PICC Life Insurance realized a premium income of 96.847 billion yuan, a net profit of 4.145 billion yuan, and the embedded value increased steadily by 8.9% to 111431 billion yuan. PICC Health realized a net profit of 260 million yuan, a year-on-year increase of 622.2%; The value of new business was 765 million, a year-on-year increase of 8.8%.
total return on investment of 5.8%
On the investment side, The People’S Insurance Company (Group) Of China Limited(601319) group’s investment assets reached 1.20 trillion yuan at the end of 2021, an increase of 9.03% over the end of the previous year. In 2021, the net investment income will be 52.270 billion yuan, and the net investment income rate will be 4.8%; The total investment income was 63.068 billion yuan, a year-on-year increase of 11.2%; The total return on investment was 5.8%, basically the same as that of the previous year.
For the investment strategy, PICC said in its annual report that in 2021, in the face of the adverse impact of the low interest rate environment and the downward shock of the equity market, it will strengthen the study and judgment of market trends, make dynamic adjustment and adjustment of asset allocation, build an asset allocation framework system with effective connection between strategy and tactics, and actively prevent investment risks. Among them, bond investment seizes the opportunity of long-term debt allocation, lengthens the duration, and continuously reduces the duration gap of assets and liabilities; Equity investment selects tracks, actively grasp structural investment opportunities, strengthen performance benchmarking and strategy benchmarking, actively explore new income growth poles, and more diversified sources of investment income.
In terms of asset management business, at the end of 2021, the third-party asset management scale of PICC group was 621187 billion yuan, an increase of 33.6% over the end of the previous year. Among them, we seized the development opportunities in annuity and pension business, and the scale of assets under management increased by 54.6% over the beginning of the year.
The annual report of PICC also disclosed the financial technology sector. This year, the Group invested 400 million yuan to establish PICC technology company, which is responsible for the overall construction of the group’s basic technology platform; Start the construction of Langfang data center, speed up the expansion of Foshan data center, plan the construction of Shanghai Science and Technology Park, speed up the transformation of core business system and improve the ability of science and technology; The group’s strategic loss settlement platform is RMB 1.905 billion, and the business income of the whole insurance industry is RMB 1.905 billion.
