As of March 29, the annual reports of the five listed insurance companies in 2021 have been disclosed. Overall, the five listed insurance companies achieved a total net profit of 215958 billion yuan last year, a year-on-year decrease of 14.4%.
In terms of share price performance, the share prices of relevant individual stocks continued to decline in 2021, and there is still no obvious reversal so far. Last year, the insurance sector (Shenwan secondary industry classification) index fell 39%, ranking second in the decline list, second only to the education sector. This year, as of yesterday’s close, the insurance sector index continued to fall by 8.28% compared with the beginning of the year.
As for the stock price performance of the company, at present, the management of The People’S Insurance Company (Group) Of China Limited(601319) , China Life Insurance Company Limited(601628) , Ping An Insurance (Group) Company Of China Ltd(601318) and China Pacific Insurance (Group) Co.Ltd(601601) 6014 listed insurance companies shouted at the performance conference that the current stock price of the company is undervalued, which will stabilize and boost the stock price in various ways. Among them, the most important thing is to strive to improve the company’s operating fundamentals. I believe that the company’s share price will eventually reflect the company’s value.
“From the perspective of valuation, the company’s share price is undervalued. At present, the dividend rates corresponding to the share prices of A-Shares and H shares are 3.7% and 8.0% respectively, which are worthy of long-term holding. Investors can share the company’s long-term development achievements while obtaining higher cash dividends.” The People’S Insurance Company (Group) Of China Limited(601319) executive director and vice president Li Zhuyong said at a recent performance conference.
Ping An Insurance (Group) Company Of China Ltd(601318) co CEO and CFO Yao Bo said at the performance conference that the current stock price of the company is at a historical low and is indeed undervalued. The company will actively manage the market value and believe that the market will eventually recognize the value of Ping An.
“The current share price does not reflect the value of the company, which is much lower than the embedded value of the company.” Li Mingguang, vice president of China Life Insurance Company Limited(601628) said at the performance conference that China Life Insurance Company Limited(601628) fundamentals continue to improve. I believe that over time, the company’s share price will eventually reflect the company’s value.
Su Shaojun, Secretary of China Pacific Insurance (Group) Co.Ltd(601601) board of directors, said that the overall performance of the insurance sector in the past year was poor, but from the historical data, China Pacific Insurance (Group) Co.Ltd(601601) current stock price is indeed at a significantly undervalued level.
Faced with the current situation of undervalued stock prices, listed insurance companies have taken a number of measures to improve the company’s operating fundamentals, convey confidence to the market through repurchase and increase dividends, and strengthen communication with investors.
“The management mainly focuses on the operation of the company and stabilizes the fundamentals of the company.” Yao Bo said that at present, the reform of Ping An Life Insurance is being actively promoted, and the results need to continue to show. I hope the market will give patience and time. At the same time, it has full confidence in the development of the company and is firmly optimistic about it. Since April last year, Ping An Insurance (Group) Company Of China Ltd(601318) has invested 13.785 billion yuan to buy its own shares through three ways: core personnel shareholding plan, long-term service plan and company repurchase. At the same time, in order to better give back to shareholders, its total cash dividends have achieved a compound annual growth rate of 25.8% in the past five years.
Li Zhuyong said that The People’S Insurance Company (Group) Of China Limited(601319) will further promote the implementation of the “excellent insurance strategy”, continuously improve the company’s performance and support the company’s share price with good performance; At the same time, we will promote the continuous growth of cash dividends per share, maintain it as far as possible in the future, and continuously improve the return to investors. In addition, the company will 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.
Li Mingguang said that in recent years, China Life Insurance Company Limited(601628) ‘s performance has been good. Even under the difficult macro environment last year, it has achieved a double harvest of value scale. After a long period of polishing, it has made remarkable progress in asset liability management and serving the overall situation of the country. In the future, no matter from the perspective of macro environment, industry development or insurance demand, the life insurance industry has huge development space. In addition, China Life Insurance Company Limited(601628) has the development ability, long-distance running ability and service ability basically. Therefore, the company can continue to create value for shareholders in the future.
“What is most closely related to the performance of the stock price is the fundamentals of the company. The company will work in a down-to-earth manner, maintain strategic concentration, always grasp the main line of high-quality development, focus on the main business of insurance and become a fine insurance major.” Su Shaojun said that last year, China Pacific Insurance (Group) Co.Ltd(601601) operating profit, net profit and other major financial data maintained steady growth, with solid fundamentals. In the long run, the company adheres to the transformation and is actively making layout in terms of scientific and technological governance and actively building the second growth curve of healthy elderly care, which will lay a good foundation for the future value growth of the company.
