The 2021 annual performance presentation meeting of the five major A-share listed insurance companies has ended. Insurance companies generally believe that the equity market has strategic allocation value.
In the view of the five major insurance companies, the allocation direction of equity assets in the future includes “double carbon + technology”, “great health + consumption” track, undervalued steady growth sector and steady growth theme investment opportunities.
last year, the rate of return on investment remained around 5%
The financial reports of the five major A-share insurance companies in 2021 have been fully disclosed. In 2021, the five listed insurance companies realized a total net profit attributable to the parent company of 215958 billion yuan. Among them, Ping An Insurance (Group) Company Of China Ltd(601318) , 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) and New China Life Insurance Company Ltd(601336) realized net profit attributable to parent company of 101618 billion yuan, 50.921 billion yuan, 21.638 billion yuan, 26.834 billion yuan and 14.947 billion yuan respectively.
In terms of investment that has attracted much attention, due to the comprehensive impact of capital market fluctuations, downward market interest rates and other factors, the return on investment of the five insurance companies remained around 5% in 2021, of which New China Life Insurance Company Ltd(601336) total return on investment was the highest, at 5.90% The People’S Insurance Company (Group) Of China Limited(601319) net return on investment was the highest, 4.80%.
Specifically, The People’S Insurance Company (Group) Of China Limited(601319) , Ping An Insurance (Group) Company Of China Ltd(601318) , China Pacific Insurance (Group) Co.Ltd(601601) , China Life Insurance Company Limited(601628) , New China Life Insurance Company Ltd(601336) , New China Life Insurance Company Ltd(601336) the total return on investment in 2021 was 5.80%, 4.00%, 5.70%, 4.98% and 5.90% respectively; The net return on investment was 4.80%, 4.60%, 4.50%, 4.38% and 4.30% respectively.
In 2021, the stock market fluctuated and the downward trend of interest rate was obvious. The five insurance companies handed over a good report card. The “secret” is the dumbbell strategy (that is, select two types of investment products with different styles for combination).
New China Life Insurance Company Ltd(601336) said that in 2021, in terms of debt financial asset investment, the company continued to allocate interest rate bonds such as long-term local bonds and national bonds, while flexibly grasping the trading opportunities of bonds and carrying out band operation. In terms of equity financial asset investment, we actively grasp structural opportunities and layout high-quality tracks. In addition, in terms of Hong Kong stocks, adhere to the high dividend strategy, continue to tap the value depression of the Hong Kong stock market, and choose opportunities to increase allocation.
The People’S Insurance Company (Group) Of China Limited(601319) said that corporate bond investment should seize the opportunity of long-term debt allocation, lengthen the duration and continuously narrow the gap of asset liability duration; 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.
the current equity market has strategic allocation value
In the first quarter of this year, A-Shares continued to fluctuate and adjust, and the trend of insurance funds, as the “wind vane” of the capital market, attracted much attention. Facing the current market, insurance companies believe that the equity market has the value of strategic allocation.
“The market situation this year is very complex. We have certain ideological preparations and are optimistic about the future.” On March 30, New China Life Insurance Company Ltd(601336) CEO and President Li Quan said at the performance conference.
Fu fan, President of China Pacific Insurance (Group) Co.Ltd(601601) said: “market adjustment brings more risk release and long-term investment value. As a long-term venture capital, we see opportunities and how to grasp them in time. At present, there is still some room for improvement in the proportion of China Pacific Insurance (Group) Co.Ltd(601601) 601 equity asset allocation.”
China Life Insurance Company Limited(601628) president assistant and chief investment officer Zhang Di pointed out that after early adjustment, the valuation of equity assets has fallen below the long-term center, and the allocation value is slowly emerging. The long-term value of equity investment can also be found from the allocation value of shares and bonds. For long-term investment, from the perspective of valuation, the conditions for adding positions on the left have been met.
“The market is at the bottom stage in the short term, and the medium and long-term allocation value has appeared.” The People’S Insurance Company (Group) Of China Limited(601319) executive director, vice president and Secretary of the board of directors Li Zhuyong said that in the medium and long term, the equity market has the value of strategic allocation. First, 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 capital market system has been continuously improved and perfected, creating a good legal and institutional environment for investors to share the fruits of China’s economic growth. Third, the current market valuation is relatively low. The dynamic valuations of Shanghai stock index, CSI 300 and gem index are all below the quantile of 30% in the past 10 years.
focus on the track consistent with the policy direction
For a long time, for the stock market performance in 2022, Ping An Insurance (Group) Company Of China Ltd(601318) chief investment officer Deng bin believes that since 2022, the market has entered a state of value investment and value stocks are dominant. This is a good small market cycle for long-term investors such as insurance capital.
Deng Bin said, Ping An Insurance (Group) Company Of China Ltd(601318) insurance funds are huge, and it is difficult to say that nearly 4 trillion yuan of funds will win in a certain sector in a certain year. Nevertheless, the company will still have the choice of sector advantages and disadvantages. At present, Ping An Insurance (Group) Company Of China Ltd(601318) is most concerned about the sectors that are consistent with the national policy direction, such as carbon neutralization, digital economy, pension health, medical treatment, etc. Ping An Insurance (Group) Company Of China Ltd(601318) are actively layout.
Li Zhuyong also believes that in terms of specific equity varieties, The People’S Insurance Company (Group) Of China Limited(601319) will actively grasp the phased opportunities brought by benefiting from the steady growth policy and the return of valuation of traditional industries. It is also necessary to focus on the structural investment opportunities brought by emerging strategic industries such as consumption upgrading, scientific and technological innovation, healthy elderly care, green and low-carbon, and build an asset portfolio in line with the direction of economic development and through the cycle.
For the allocation direction of equity assets in the future, Duan Guosheng, general manager and CEO of Taikang assets, revealed that he would focus on the track of “double carbon + technology” and “great health + consumption”, pay attention to the investment opportunities of undervalued steady growth sector and steady growth theme, pay attention to the investment opportunities in the Hong Kong market, and continue to explore various forms of equity investment.
