With yesterday’s New China Life Insurance Company Ltd(601336) 2021 performance conference, the performance disclosure and management interpretation of the five major A-share listed insurance companies in 2021 were released. Under the influence of adverse factors such as the epidemic, most of the five listed insurance companies maintained positive performance growth in 2021. Among them, China Life Insurance Company Limited(601628) , The People’S Insurance Company (Group) Of China Limited(601319) , China Pacific Insurance (Group) Co.Ltd(601601) , New China Life Insurance Company Ltd(601336) respectively realized net profit attributable to parent company of 50.921 billion yuan, 21.638 billion yuan, 26.834 billion yuan and 14.9 billion yuan, with year-on-year growth rates of 1.3%, 7.8%, 9.2% and 4.6% respectively. Among the five listed insurance companies, the highest net profit attributable to the parent company was Ping An Insurance (Group) Company Of China Ltd(601318) , reaching 101618 billion yuan, but the growth rate decreased by 29.0% year-on-year.
According to the information disclosed by the management of each company at the performance press conference, listed insurance companies have achieved some results in the reform of individual insurance channels and the optimization of property insurance business structure in 2021. Listed insurance companies will focus on the fields of endowment insurance and non auto insurance in 2022.
In terms of insurance business, the premium income of listed insurance companies generally increased slightly, and some companies declined. However, with the deepening of industry transformation, some positive signals have also been released.
In terms of personal insurance, how to reform personal insurance channels has always been the focus of the industry Zhongtai Securities Co.Ltd(600918) recently said in the research report that by the end of 2021, China Life Insurance Company Limited(601628) personal insurance agents had 820000 people, with a year-on-year decrease of 40.5%. However, the average monthly production capacity of individual insurance manpower increased by 12.43% year-on-year to 6237 yuan, and the agent income increased; At the same time, the proportion of the company’s average star manpower and average star membership in 2021 has increased slightly, the seven-month retention rate of the agent team began to rise, and the quality of the company’s agent team is better than that of other Chinese funded peers.
New China Life Insurance Company Ltd(601336) said that the company’s monthly average comprehensive production capacity of individual insurance also increased, reaching 2725 yuan, an increase of 4.1% year-on-year New China Life Insurance Company Ltd(601336) vice president Li Yuan revealed that the company will launch an excellent plan in the second quarter to further increase the number of outstanding talents.
In terms of property insurance, affected by the implementation of the comprehensive reform of automobile insurance, the premium growth rate of property insurance companies was generally not high last year. However, it is gratifying that the head property insurance company used this year’s adjustment period to optimize its business structure. Taking The People’S Insurance Company (Group) Of China Limited(601319) property insurance as an example, the company took the initiative to adjust its business structure. On the one hand, it vigorously developed its own car business, which increased its market share by 1.4 percentage points year-on-year, and the business structure and quality of motor vehicle insurance continued to improve; On the other hand, we consolidated and expanded the advantages of policy business and actively expanded the development space of commercial non auto insurance business. The total premium income of non auto insurance business increased by 16.0% year-on-year.
At the end of last year, China Insurance Industry Association launched new energy exclusive vehicle insurance. As the risk of new energy vehicles is higher than that of traditional vehicles, the market is generally worried that the exclusive new energy vehicle insurance will drag down the underwriting profit of property insurance companies The People’S Insurance Company (Group) Of China Limited(601319) vice president and President of PICC Property Insurance Yu Ze said at the company’s performance conference recently that the company started to reserve big data application technology as early as the development of new energy demonstration clauses in the industry. Through cooperation with battery suppliers, new energy vehicle enterprises and other parties, the company strengthened the cross-border integration of data resources, realized the accurate identification of vehicle behaviors such as the use nature of new energy customers, and formulated a clearer pricing strategy. From the data currently available, we are confident that the company’s new energy auto insurance operation will remain profitable and keep up with the overall auto insurance.
The management of listed insurance companies also revealed the main development direction in 2022 at the performance conference.
New China Life Insurance Company Ltd(601336) CEO Li Quan said that the company has made a very good start in terms of exclusive endowment insurance. At present, it is running well and has reached the preliminary expectation Ping An Insurance (Group) Company Of China Ltd(601318) has a unique approach in the layout of elderly care. By providing all-round services for the elderly at home, it realizes the inclusive elderly care services and reduces the cost of institution construction and operation.
In terms of property insurance, non auto insurance business is the main direction of listed property insurance companies this year.
In 2021, CPIC property insurance and non auto insurance achieved underwriting profit, and emerging business areas such as health insurance, liability insurance and agricultural insurance maintained rapid growth. Gu Yue, chairman of CPIC property insurance, said at the performance conference that the rapid growth of these three businesses is because these insurance types are in important areas of national strategy. At the same time, these three businesses are also the weakest areas in the development of China’s insurance industry, with great growth space.
