Affected by the comprehensive reform of automobile insurance, rainstorm disaster and other factors, the property insurance industry is facing development challenges in 2021. With the release of the annual report of listed insurance companies, the performance of listed property insurance companies dominated by the "old three" deserves attention. From the perspective of profitability, listed property insurance companies walked out of an obvious differentiation pattern in 2021.
Specifically, the annual report shows that the net profit of PICC P & C in 2021 was 22.586 billion yuan, a year-on-year increase of 8.4%; Ping An Property Insurance realized a net profit of 16.192 billion yuan, a slight increase of 0.2% year-on-year; CPIC property insurance realized a net profit of 6.352 billion yuan, a year-on-year increase of 21.9%; Taiping property insurance changed from profit to loss. After tax and the operating loss attributable to shareholders in 2021 was HK $382 million, with a profit of HK $2.76 million in the same period in 2020; Zhong'an insurance realized a net profit attributable to its parent company of RMB 1.165 billion in 2021, with a year-on-year increase of 110.3%; The net profit of Dadi insurance was 59 million yuan, a year-on-year decrease of 90.1%.
It is noteworthy that the "old three" of property insurance, PICC Property Insurance, Ping An Property Insurance and CPIC property insurance realized a total net profit of 45.13 billion yuan, accounting for about 90% of the total profit of the industry. According to industry statistics, 74 unlisted property insurance companies that have disclosed data have accumulated a net profit of 4.305 billion yuan.
Auto insurance strong HENGQIANG "big brother" PICC market share increased by 0.6 percentage points
Under the comprehensive reform of auto insurance, the head property insurance company can not escape the decline of premium in 2021.
The annual report shows that the original premium income of PICC Property Insurance and motor vehicle insurance was 255275 billion yuan, a year-on-year decrease of 3.9%; The original premium income of Ping An Property Insurance and auto insurance was 188838 billion yuan, a year-on-year decrease of 3.7%; The insurance business income of CPIC property insurance and motor vehicle insurance was 91.799 billion yuan, a year-on-year decrease of 4%; The premium income of Taiping property insurance and automobile insurance was HK $21.064 billion, a year-on-year decrease of 4%; Zhongan automobile ecological insurance realized a premium of 946 million yuan, a year-on-year decrease of 28.8%; The premium of land insurance motor vehicle insurance was 22.432 billion yuan, a year-on-year decrease of 16.8%.
Despite the "cost reduction and efficiency increase" of property insurance companies, the overall increase of comprehensive cost ratio is directly caused by the high loss ratio. The annual report shows that in 2021, the comprehensive cost rates of PICC Property Insurance, Ping An Property Insurance and CPIC property insurance were 97.3%, 98.9% and 98.7% respectively, up 0.8%, 0.7% and 0.8% respectively compared with the same period of the previous year.
In terms of expense rate, the data of vehicle insurance expense rate of listed property insurance companies in 2021 generally decreased. The expense rates of PICC Property Insurance, Ping An Property Insurance and CPIC property insurance were 27.2%, 27.5% and 27.6% respectively, down 11.13%, 11.5% and 9.8% respectively over the same period of last year.
Although the auto insurance business is facing the operation pain in the post comprehensive reform period, the "old three" auto insurance market share of property insurance will not decline but rise in 2021, and the giants have prominent competitive advantages in the property insurance market.
According to the data of China Banking and Insurance Regulatory Commission, by the end of December 2021, the original premium income of auto insurance of property insurance companies had accumulated to 777.3 billion yuan. Based on this calculation, the auto insurance market share of PICC Property Insurance, Ping An Property Insurance and CPIC property insurance were 32.8%, 24.3% and 11.8% respectively, up 0.6%, 0.5% and 0.2% respectively compared with the same period of the previous year. "Big brother" has the highest market share of PICC, indicating that the strong in the auto insurance market is always strong.
Referring to the cost advantage, The People'S Insurance Company (Group) Of China Limited(601319) management said at the 2021 performance conference that the company's auto insurance market share ranks first in the industry and has the largest number of customers. First, it has the strongest bargaining power when purchasing four value-added services such as road rescue, safety monitoring, driving on behalf and inspection on behalf of third parties, and the cost of value-added services is at the lowest level in the industry; Second, it also has the strongest bargaining power when negotiating spare parts and man hour fees with automobile maintenance institutions, and the claim settlement cost has a strong comparative advantage over other subjects; Third, compared with other entities, the advantage of premium scale dilutes the fixed cost and brings the comparative advantage of fixed cost rate.
An insider pointed out that since the fourth quarter of 2021, the influence of the base effect has weakened, and the vehicle insurance premiums of listed insurance companies have been significantly corrected, driving the growth rate of property insurance premiums to rise. Head insurance companies have the advantages of channel, loss setting and pricing, and will still maintain excess underwriting profits.
New energy vehicles stand out, and new energy vehicle insurance will become the highland of vehicle insurance competition in the next few years
Xin Guobin, Vice Minister of the Ministry of industry and information technology, once introduced that in 2021, the production and sales of Shanxi Guoxin Energy Corporation Limited(600617) vehicles exceeded 3.5 million, reaching 3.545 million and 3.521 million respectively, with a year-on-year increase of 1.6 times, ranking first in the world for seven consecutive years, and the cumulative promotion volume has exceeded 9 million.
"The comprehensive reform of auto insurance promotes the reduction of auto insurance fees, increase compensation and return to the origin. The production and sales of new energy vehicles are booming, which will be the highland of auto insurance competition in the next few years..." The People'S Insurance Company (Group) Of China Limited(601319) said when looking forward to the future trend of the industry.
On December 14, 2021, the exclusive terms of new energy vehicle insurance came out - the China Insurance Industry Association issued the exclusive terms of new energy vehicle commercial insurance (Trial). Brokers predict that the premium scale of new energy auto insurance will reach 154.3 billion yuan in 2025, accounting for about 15.7% of the total premium of auto insurance; It is estimated that the premium scale of new energy vehicle insurance will reach 1279 billion yuan in 2030, accounting for about 31.3% of the total premium of vehicle insurance.
For listed property insurance companies, it is a consistent choice to seize this new opportunity in the auto insurance market.
Yu Ze, The People'S Insurance Company (Group) Of China Limited(601319) vice president and President of PICC Property Insurance, said at the 2021 performance conference: "The company attaches great importance to the strategic development opportunities of new energy vehicles. As early as the development of new energy demonstration clauses in the industry, the company began to reserve big data application technologies. 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."
Ping An Property Insurance said in its annual report that it will promote product and service innovation, actively explore exclusive products and services of new energy auto insurance, meet customers' diversified needs and promote the healthy development of auto insurance business.
CPIC property insurance is also optimistic about the growth space of new energy vehicle insurance. Gu Yue, chairman of CPIC property insurance, said that although the overall premium of auto insurance has rebounded significantly since this year, we should predict the situation of the whole year, first, we should look at the car market and second, we should look at new energy vehicles. At present, the overall auto market is still depressed, and new energy vehicles stand out. From the underwriting situation of CPIC in the past two years, new energy vehicle insurance has increased very fast. As of March 21, the growth rate has more than doubled, and the proportion in the business structure of new car auto insurance has increased significantly, exceeding double digits.
"In view of the development trend of new energy vehicles, we have innovated our business model, which has been highly recognized by new energy vehicle enterprises. At present, it is being promoted in an all-round way." Gu Yue said that although the comprehensive cost rate of new energy vehicles is high in the current period, from the vertical point of view, the business quality of new energy vehicles has been continuously optimized, and the cost of insurance policies continues to decline. As long as multi pronged and scientific management and control are carried out, the cost of new energy vehicles will tend to be stable, which will play a positive role in promoting future development.
Yu Ze also said: "from the current data, we are confident that the company's new energy auto insurance operation will remain profitable and keep up with the overall auto insurance.
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Vigorously develop non vehicle business
The premium of Italian health insurance has increased greatly, and the underwriting profit will take time
With the increasingly fierce competition in the auto insurance market, property insurance companies have vigorously developed non auto business in recent years and actively sought a breakthrough point for business growth.
From the operating data of various companies, accident and health insurance became the main force driving the growth of non vehicle business in 2021. Specifically, the original premium income of accident and health insurance of PICC Property Insurance in 2021 was 80.692 billion yuan, a year-on-year increase of 21.9%; The original premium income of accident and health insurance of Ping An Property Insurance was 22.615 billion yuan, a year-on-year increase of 32.6%; The health insurance business income of CPIC property insurance was 12.198 billion yuan, a year-on-year increase of 37.3%; The premium of accidental injury and short-term health insurance of Dadi insurance was 7.553 billion yuan, a year-on-year increase of 5.9%; Zhong'an insurance health insurance premium was 7.342 billion yuan, a year-on-year increase of 14.2%, and accident insurance premium was 2.019 billion yuan, a year-on-year increase of 7%.
Although the premium increased significantly, the operation of Italian health insurance still failed to get rid of the underwriting loss. According to the annual report, the underwriting loss of PICC Property Insurance Accident and health insurance in 2021 was 1.952 billion yuan, and the comprehensive cost rate was 102.6%, an increase of 1.3 percentage points year-on-year; The underwriting loss of health insurance business of CPIC property insurance was 199 million yuan, and the comprehensive cost rate was 101.9%, which was the only underwriting loss among the main types of insurance.
The management of CPIC property insurance said that the competition in the non auto insurance market is more intense: on the one hand, there is a lot of room for the development of non auto insurance, on the other hand, many insurance companies switch to non auto insurance after the comprehensive reform of auto insurance; At the same time, due to the upside down price of China's direct insurance policy and international re insurance policy, there are many risk exposures in non auto insurance business, so it is very important to do a good job in quality management and risk transfer.
In 2021, the liability insurance of the "old three" of property insurance also maintained double-digit growth. PICC Property Insurance realized a premium income of liability insurance of 33.132 billion yuan, a year-on-year increase of 16.4%; The original premium income of Ping An Property and liability insurance was 19.875 billion yuan, a year-on-year increase of 29.8%; CPIC property and liability insurance business income was 10.948 billion yuan, a year-on-year increase of 24.6%. In addition. The premium income of land insurance liability insurance was 2.871 billion yuan, a year-on-year increase of 18.5%.
Affected by the gradual unification of national standards for personal injury compensation in urban and rural areas, PICC Property Insurance and Ping An Property Insurance have underwriting losses in liability insurance business. PICC Property and casualty insurance said in its annual report that the compensation standard for personal injury increased with the average social income level, and the compensation cost of personal injury insurance increased, resulting in the compensation rate of liability insurance reaching 67.8%, an increase of 5.7 percentage points year-on-year; Due to the decline in the proportion of policy business, the liability insurance expense rate was 39.5%, up 4.3 percentage points year-on-year. In the same period, Ping An Property and liability insurance lost 820 million yuan, with a comprehensive cost rate of 105.1%.
Affected by the economic downturn and other factors, the underwriting risk of financing credit insurance business was exposed, and the previous loss was serious. As various insurance companies strengthen their risk control ability, the "old three" will ensure the continuous optimization of insurance profitability in 2021.
According to the annual report, the revenue of Ping An Property Insurance Guarantee insurance business was 18.098 billion yuan, a year-on-year increase of 29.8%, and the comprehensive cost rate was 91.2%; The business income of CPIC property insurance and guarantee insurance was 7.253 billion yuan, with a year-on-year increase of 8.5% and a comprehensive cost rate of 95.1%; The overall premium income of credit guarantee insurance of PICC Property Insurance was 2.84 billion yuan, a year-on-year decrease of 46.2%, the comprehensive cost rate was 66.7%, and the underwriting profit was 1.762 billion yuan. In addition, the guaranteed insurance premium income of Dadi insurance in 2021 was 5.423 billion yuan, a year-on-year decrease of 17.1%, and the annual cumulative bad debt rate was 6.98%, a decrease of 1.89 percentage points compared with the same period last year.
