Core view:
The insurance sector fell with the market
Last week (2022 / 04 / 11-04 / 15), the market fell, but the insurance sector fell with the market, and the overall performance was weaker than the market. The CSI 300 index closed at 418875, down 0.99%; Insurance (Shenwan) closed at 100977, down 1.83%, underperforming the CSI 300 index by 0.84pct. In terms of individual insurance stocks, all the five listed insurance companies fell, of which China Pacific Insurance (Group) Co.Ltd(601601) fell the most, down 2.09%, Ping An Insurance (Group) Company Of China Ltd(601318) fell 1.91%, The People’S Insurance Company (Group) Of China Limited(601319) fell 1.51%, and China Life Insurance Company Limited(601628) and New China Life Insurance Company Ltd(601336) both fell less than 1%.
Except for Guoshou, the growth rate of premium income fell in March
The cumulative growth rates of premium income of Ping An, Guoshou, CPIC, Xinhua and PICC from January to March were 1.11%, – 2.75%, 7.23%, 2.36% and 14.24% respectively. Compared with Guoshou, the PICC with the largest growth lags behind by 16.99 PCT. In terms of monthly income growth, the monthly income growth of Ping An, Guoshou, CPIC, Xinhua and PICC in March were 0.79%, 5.58%, 10.42%, – 4.12% and 8.59% respectively, all falling except Guoshou. Xinhua, with the lowest growth rate, is 14.54 PCT behind Taibao, with the highest growth rate. In terms of life insurance, the cumulative growth rate of life insurance income of the five companies from January to march was – 2.27%, – 2.75%, 4.23%, 2.36% and 17.94% respectively. The decline of Ping An was expanding and Guoshou was shrinking, but Ping An and Guoshou failed to become regular. Compared with Guoshou, the PICC with the largest growth lags behind by 20.69 PCT. In terms of monthly income growth, the monthly income growth of Ping An, Guoshou, CPIC, Xinhua and PICC in March were – 4.71%, 5.58%, 10.09%, – 4.12% and – 24.58% respectively. Ping An had negative monthly growth for 18 consecutive months. Guoshou became positive after nine consecutive months of negative growth. The PICC with the lowest growth rate is 34.67 PCT behind the CPIC with the highest growth rate. Guoshou gradually stabilized, Ping’an has not improved, and PICC still fluctuates greatly. In terms of PICC Life Insurance, long-term single insurance contributed most of the growth share. In terms of property insurance, the premium income of Ping An, CPIC and PICC all fell, but still maintained a growth rate of about 10%, and the accumulated growth rates of the three countries were 10.34%, 13.84% and 12.24% respectively. Month on month growth of 9.19%, 10.88% and 10.16% respectively. The growth of PICC Property insurance mainly comes from the growth of motor vehicle insurance, accidental injury and health insurance and agricultural insurance. Overall, affected by the epidemic and superimposed with the high base effect, the original premium income generally fell in March. The value of the new order is not optimistic.
Insurance salesperson hierarchical management and product hierarchical management to promote the reshuffle of agent pattern and channel transformation.
Recently, the measures for the management of life insurance sales behavior (Exposure Draft) was issued, requiring insurance salespeople to be managed at different levels and products to be managed at different levels, and new agents to meet the requirements by the end of 2023 and existing agents by the end of 2024. Strict supervision will straighten out the industry rules and promote the reshuffle of agent pattern and channel transformation.
It is suggested to pay attention to insurance companies that may take the lead in restoring high-speed growth, and these companies may take the lead in leading industries to get out of the bottleneck.
Risk tip: the negative impact of the epidemic on the insurance business is long-term, and the transformation speed and effect of channels and business models are less than expected.
