On the afternoon of April 29, Shenzhen Ping An financial management college. Based on the consideration of epidemic prevention, except for some staff, the first three rows of the site of Ping An Insurance (Group) Company Of China Ltd(601318) shareholders' meeting this year are not open. There are still many investors from all over the country, most of whom are old shareholders who have held the company's share price for many years.
Is the company's share price undervalued? The stock market has fluctuated greatly recently. How should the company respond to its investment strategy? Is the life insurance reform smooth and can it be completed as scheduled? Will individual pensions actively participate? The management of Ping An group responded one by one to the questions of investors at the shareholders' meeting.
After the shareholders' meeting, Ping An Insurance (Group) Company Of China Ltd(601318) disclosed the first financial report of this year. In the first quarter of this year, affected by the fluctuation of the capital market, we failed to be alone in the indicator of net profit attributable to the parent, and suffered a year-on-year decline like all listed insurance companies; However, the operating profit of the parent company, another core indicator linked to the dividend level, still increased by 10.0% year-on-year. In terms of specific business, the effect of life insurance reform from Qizhi to zhongpan has not been fully reflected in the data, but the business of property insurance, banking and comprehensive financial business has a smooth start and there are many highlightsP align = "center" talking about stock price: "it is divorced from the real value at present, and I believe it will return in the end"
Affected by internal and external factors, the share price of Ping An Insurance (Group) Company Of China Ltd(601318) has been corrected since last year. On the investor interaction platform, investors frequently send "soul torture" to the management of Ping An Group - is the share price undervalued? When will it rise?
At today's shareholders' meeting, Yao Bo, CO CEO and CFO of Ping An Insurance (Group) Company Of China Ltd(601318) said frankly that the company's management believes that at present, the company's stock price has indeed deviated from the real value, and the stock price valuation is relatively low. It is believed that the stock price will eventually return to the real value of the company
Yao Bo also said that from the perspective of the external environment, the company's share price has been affected to a certain extent since last year due to repeated epidemics, market fluctuations, geopolitics and other factors. "However, from the internal perspective of the company, the company has clear strategy, stable finance, advancing reform and excellent management team. Therefore, we are full of confidence in the long-term and stable development of the company."
"We are also actively managing the market value. On the one hand, we maintain a stable dividend policy; on the other hand, we buy back shares." He said that the repurchase plan of 5-10 billion yuan launched by the company last year has repurchased about 3.9 billion yuan. In the future, the remaining repurchase amount will be completed according to the market and relevant regulations.
According to Yao Bo, at present, the internal and external environment is complex and changeable, but the company is still firmly optimistic about the fundamentals of China's long-term economic growth. "Our business will benefit from the development of our traditional business and health insurance."
He stressed that considering the impact of the epidemic and other external environment on the economy and industry, the company will do a good job in short-term risk prevention. "On the whole, in 2022, the company will unswervingly adhere to the 16 character policy of 'focusing on finance, reform and innovation, increasing revenue and reducing expenditure, and compliant operation'."P align = "center" talking about investment: "looking for deterministic opportunities in an uncertain environment"
Since the beginning of this year, the A-share equity market has fluctuated sharply due to the repeated epidemic, the conflict between Russia and Ukraine and other foreign factors. Some on-site investors are concerned that the capital market fluctuated greatly in the first quarter of this year. What should Ping An Insurance (Group) Company Of China Ltd(601318) do in terms of asset allocation?
Yao Bo said that the company's overall investment strategy and asset allocation will not change greatly. The investment still focuses on shortening the duration gap of assets and liabilities, further optimizing the asset liability matching of insurance funds, and trying to find the certainty of investment in the current uncertain market environment.
"At present, our strategic asset allocation is still to invest heavily in fixed income, rental real estate and other assets, because these assets can provide long-term and stable returns." He said.
In Yao Bo's view, the stock market has fluctuated since this year, but there will be some fluctuations in the stock market every year. Insurance funds pursue long-term investment, which should be invested according to the established investment philosophy. "We have always adhered to the investment philosophy of 'sticking to the bottom line, seizing opportunities and crossing the cycle'."
He also said that after the epidemic stabilizes, China's economy will gradually recover, and I believe the market will also tend to be stable. "The company will actively look for investment opportunities and strive to make the investment more stable this year."P align = "center" talking about pensions: "comprehensive financial group has unique advantages"
The general office of the State Council recently issued the opinions on promoting the development of individual pension, which attracted the attention of all parties. In the process of promoting the third pillar of China's endowment insurance system, how Ping An Insurance (Group) Company Of China Ltd(601318) will be arranged as an insurance giant has also become the focus of attention.
Ping An Insurance (Group) Company Of China Ltd(601318) general manager and co CEO Xie Yonglin said that Ping An Group is actively participating in the construction of the third pillar system of endowment insurance. "We are a comprehensive financial group and have unique advantages in participating in personal pension business."
He further said that there are three main advantages:
First, account advantages Ping An Bank Co.Ltd(000001) three years ago, we cooperated with relevant departments in building the account platform system. If this platform is put into use, Ping An Bank Co.Ltd(000001) will also be expected to become the first batch of participants.
Second, product advantages. The above opinions clearly pointed out that banks' financial management, savings deposits, commercial endowment insurance and public funds are encouraged to participate in the construction of individual pension system. Relying on the advantages of the group, Ping An will develop different products to meet the needs of many types of customers through multi-party cooperation such as pension insurance, life insurance and bank financial management.
Third, channel advantages. At present, Ping An Group has more than 200 million individual customers, more than 600 million Internet users and a huge offline sales team. As long as the product is launched, it can launch all kinds of channels to let the products reach customers directlyP align = "center" talk about life insurance reform: "the management is satisfied with the effectiveness of phased reform"
As one of the core businesses of Ping An Group, the reform of Ping An Life Insurance, which began at the end of 2019, is the most concerned by peers and investors. An on-site investor asked: how is the reform progress of Ping An Life Insurance? Can the reform objectives be completed on schedule?
In this regard, Ping An Insurance (Group) Company Of China Ltd(601318) co CEO Chen Xinying said that Ping An Group took the lead in opening the life insurance reform. At present, it has entered its third year, and the management is satisfied with the phased reform results. "Through three years of in-depth reform, Ping An Life Insurance can usher in better life insurance development in the next five to ten years.
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According to Chen Xinying, the reform of life insurance is mainly reflected in two aspects: one is the channel side and the other is the product side.
In terms of channel side reform, it mainly focuses on four channels: agent channel, bancassurance channel, community grid channel and part-time agent channel. "Although the number of our agents has decreased, the income and production capacity of agents are growing. This year, we will complete three-year in-depth reform as planned. We hope that agents and channels will develop steadily together."
In terms of product side reform, three "product +" concepts are proposed, namely health care, home-based elderly care and health care. "Through these three products, we can better serve customers, and customer stickiness and loyalty are also improving."
"We are still optimistic about the development prospect of China's life insurance industry." Chen Xinying said that China is currently the second largest insurance market in the world. Many mainstream institutions expect that China will become the world's largest insurance market by 2030.
For the above contents, Ma Mingzhe, chairman of Ping An Insurance (Group) Company Of China Ltd(601318) board of directors, also made a large supplement, which shows the importance attached to Ping An medical strategy. He said that in the past, finance and insurance were "cold", and the viscosity with customers was relatively weak. Customers would think of looking for companies only when they settled claims; However, after medical treatment, health and pension, there is temperature. This "new finance" model can increase customer viscosity, customer frequency and customer loyaltyP align = "center" first quarter performance: the net profit index is not alone, and there are many highlights in other indicators
After the general meeting of shareholders, Ping An Insurance (Group) Company Of China Ltd(601318) disclosed the report of the first quarter of 2022: like other listed insurance companies, due to the fluctuation of capital market, the net profit attributable to the parent company of the group also decreased significantly in the first quarter - RMB 20.658 billion, a year-on-year decrease of 24.1%.
However, excluding the impact of short-term investment fluctuations, the operating profit attributable to the parent company in the first quarter reached 43.047 billion yuan, a year-on-year increase of 10.0%. Operating profit is usually the base for insurance companies to determine the dividend level. Therefore, compared with accounting profit, it can more clearly and objectively reflect the actual operation, long-term operation characteristics and company fundamentals of insurance companies, especially life insurance companies.
In terms of comprehensive financial and other indicators, the start was stable and there were many highlights.
Ping An Insurance (Group) Company Of China Ltd(601318) the first quarterly report shows that the business performance of its customers has increased steadily. As of March 31, 2022, the number of individual customers of the group has exceeded 223 million, an increase of 0.7% over the beginning of the year; The average number of customer contracts was 2.94, an increase of 1.0% over the beginning of the year. As of March 31, 2022, the group had more than 657 million Internet users, an increase of 1.6% over the beginning of the year; The annual number of active users exceeds 345 million. In the first quarter of 2022, the scale of comprehensive financial premiums for corporate channels of group business increased by 28.2% year-on-year; The scale of comprehensive financial financing reached 192969 billion yuan, a year-on-year increase of 9.0%.
In terms of life insurance business, Ping An Life Insurance is still firmly promoting reform and transformation and continuously iteratively upgrading products and services. Although the effectiveness of the reform has not been fully reflected in the performance, there are also some clues. In the first quarter of 2022, the operating profit of life insurance and health insurance business was 29.678 billion yuan, a year-on-year increase of 16.0%. Affected by the adjustment of agent team, the optimization of product structure, the spread of the epidemic and the high base in the same period last year, the new business value of life insurance and health insurance business was 12.589 billion yuan in the first quarter of 2022, a year-on-year decrease of 33.7%, but the decline in March has been significantly narrowed.
The quality of property insurance business continued to improve. In the first quarter of 2022, the premium income of Ping An Property Insurance's original insurance reached 73.018 billion yuan, a year-on-year increase of 10.3%. Due to the elimination of the cyclical impact of the comprehensive reform of automobile insurance, the growth performance of premium returned to normal; The overall comprehensive cost ratio was 96.8%, with a year-on-year increase of 1.6 percentage points, which was mainly affected by covid-19 pneumonia, and the compensation expenditure of insurance business increased.
Ping An Insurance (Group) Company Of China Ltd(601318) has accelerated the implementation of the medical and health ecosystem strategy, and the effectiveness of empowering the main business and improving the customer experience has gradually emerged.
