realized a net profit attributable to the parent company of 21.6 billion yuan, a year-on-year increase of 7.8%
auto insurance underwriting profit continues to be better than the industry, with a comprehensive cost rate of 97.3%
annual total investment income was 63.1 billion yuan, with a year-on-year increase of 11.2% and a total investment return of 5.8%
2021 annual total dividend per share was 0.164 yuan, with a year-on-year increase of 5.1%, and the dividend proportion was 33.5%
In 2021, facing the complex market environment such as epidemic situation and the impact of the comprehensive reform of automobile insurance, the development of property insurance industry is facing severe challenges. In this context, it is not easy for The People’S Insurance Company (Group) Of China Limited(601319) to achieve such gratifying performance.
Since the beginning of this year, under the influence of internal and external factors, the development situation of the insurance industry is still grim, and the capital market fluctuates constantly.
The People’S Insurance Company (Group) Of China Limited(601319) how to grasp the development opportunities this year? What do the company’s management think of the concerned A-share aftermarket? How will the company respond to the long-term low share price of the company?
At the performance conference of The People’S Insurance Company (Group) Of China Limited(601319) 2021 held today, the company’s management announced the answer.
equity market is at the bottom stage in the short term
medium and long term configuration value has been highlighted
The People’S Insurance Company (Group) Of China Limited(601319) said in the annual report that in 2021, facing the adverse impact of the low interest rate environment and the downward shock of the equity market, the company strengthened the study and judgment of market trends, made dynamic adjustments to asset allocation, built an asset allocation framework system with effective connection between strategy and tactics, actively prevented investment risks and achieved good investment performance. 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.
By the end of 2021, various funds and stock investments measured by the fair value of the company accounted for 17.8%, an increase of 3.5 percentage points over the end of the previous year.
The People’S Insurance Company (Group) Of China Limited(601319) vice president and Secretary of the board of directors Li Zhuyong said that since the beginning of 2022, major global capital markets have experienced significant fluctuations. China’s economic development faces triple pressures of “shrinking demand, supply shock and weakening expectation”. In such an internal and external environment, China’s capital market inevitably suffered great pressure in the first quarter.
\u3000\u3000 “Looking ahead, we believe that equity market is at the bottom stage in the short term, but the medium and long-term allocation value has been highlighted . In the short term, the meeting of the financial committee studied the current economic situation and capital market, gave a clear response to major issues affecting the capital market, and released positive signals. The extremely pessimistic expectations of the market are gradually reversing, and market confidence is gradually recovering. In the medium and long term, the equity market The market has strategic allocation value. ” Li Zhu expressed with.
Li Zhuyi further explained that first of all, the macroeconomic environment of steady growth in 2022 has laid a good foundation for the development of the equity market, and the medium and long-term trend of China’s economy has not changed. Secondly, the continuous improvement of the capital market system has created a good environment for investors to share the fruits of China’s economic growth. Thirdly, the current market valuation is relatively low. Finally, looking back on history, the short-term impact of major events such as conflicts and epidemics will eventually subside and will not change the long-term trend of the capital market.
“As an insurance investment institution, the company will adhere to the concept of long-term investment, value investment and prudent investment, actively support the national strategy, serve the real economy and fully maintain the smooth operation of the capital market.” Li Zhuyong said.
first, within the scope of risk tolerance, around the strategic asset allocation center, equity investment actively increased the allocation proportion at a relatively low valuation and actively carried out rebalancing operation
second, in terms of specific equity varieties, the company should actively grasp the phased investment opportunities brought by the steady growth policy, the traditional economy and the return of the average value of industry valuation; We should also focus on grasping the structural investment opportunities brought by the rapid growth of emerging strategic industries such as consumption upgrading, scientific and technological innovation, healthy elderly care and green low-carbon, and build an investment portfolio in line with the direction of economic development and through the cycle
For the impairment of credit investment assets, Li Zhuyong said that the company has continuously strengthened credit risk management in the use of insurance funds and always adhered to the bottom line of risk prevention. At present, the credit rating of bonds and non-standard fixed income products invested by the company is AAA, accounting for more than 98%, and the overall credit risk is controllable. The fixed income assets held by the company, including bonds, deposits and alternative financial products, did not have credit default last year. In 2022, the company will further improve its credit risk management ability, strengthen credit risk management, and continuously optimize the qualification and structure of credit positions. It is expected that there will be little pressure on credit impairment.
company’s share price is at the bottom of history
worth long-term holding by investors
Since last year, there has been a substantial correction in the share price of insurance stocks in the A-share market, and there has been an overall net break in insurance stocks this year. As of today’s close, The People’S Insurance Company (Group) Of China Limited(601319) reported 4.51 yuan / share, up 1.12%.
Li Zhuyong believes that the stock price is determined by the market. In the long run, it mainly depends on the fundamentals, while in the short term, it is affected by multiple factors. The poor performance of the share price of the insurance sector in 2021 is mainly due to the switching of the kinetic energy of the life insurance industry. The past business mode has been unsustainable. Most companies choose to adjust the “human sea tactics” mode through in-depth channel and product reform to slow down the existing growth in order to achieve higher quality growth in the future. Therefore, major life insurance companies have experienced a temporary decline in business growth. In addition, some investors are worried that the comprehensive reform of automobile insurance and major natural disasters will affect the future profitability of the property insurance industry. The short-term factors of these industries combined with macroeconomic pressure led to certain difficulties in the operation and development of the insurance industry last year, and the stock price performance was not satisfactory.
“The company’s share price has shown strong resilience in the environment of the general decline of the industry’s share price. The People’S Insurance Company (Group) Of China Limited(601319) is a listed company with property insurance as the main industry, which is different from the investment value of life insurance companies, especially in H shares. The company’s H shares have not been affected by the reduction of holdings by major shareholders of a shares, and the share price performed better than the peers in 2021, and has increased to a certain extent under the condition of the general decline of the index and peers.” Li Zhu expressed with.
Li Zhuyong stressed that from the perspective of valuation, the company’s share price is undervalued. At present, the dividend yield corresponding to the shares of A-Shares and H shares of the company is 3.7% and 8.0% respectively. The company’s shares are worth long-term holding by investors. Investors can share the company’s long-term development achievements while obtaining higher cash dividends.
Li Zhuyong revealed that he would stabilize and boost the company’s share price in a variety of ways.
First, further promote the implementation of the “excellent insurance strategy”, continuously improve the company’s performance, create sustainable growth value for investors, and support the company’s share price with good performance.
Second, continuously improve the return to investors. Since its listing in 2012, the company’s cash dividend per share has always maintained an increasing trend, and will maintain the growth trend as much as possible in the future, so that investors can obtain stable dividend income.
Third, vigorously strengthen communication with investors, so that the market can have an in-depth understanding of the company’s operation and management, business characteristics dominated by property insurance, unique competitive advantages and good investment value.
“In short, we are optimistic and confident about the long-term development of the insurance industry and the company. From the perspective of valuation and dividend yield, the company’s share price is at the bottom of history, and we are confident that the company’s share price will improve in the long term in the future.” Li Zhu expressed with.
