An overall review of life life insurance: a review of life life: the sales of new orders are growing steadily year-on-year, and the return on net investment is under pressure. In the first quarter of 2022, a comparison of the first quarter of 2022. In comparison, the China Life Insurance Company Limited(601628) 18.3%). The year-on-year growth rate of new order sales in the first quarter fell sharply, mainly because the old serious illness insurance was off the shelves in January 2021, resulting in a high sales base, while the year-on-year growth rate of new order sales in February and March is expected to be more stable.
In the same period, on the asset side, all life insurance companies were under significant pressure: Ping An Insurance (Group) Company Of China Ltd(601318) annualized total return on investment was 2.3%, a year-on-year decrease of 0.8 percentage points China Life Insurance Company Limited(601628) 39%, down 2.6 percentage points year on year China Pacific Insurance (Group) Co.Ltd(601601) 37%, down 0.9 percentage points year on year New China Life Insurance Company Ltd(601336) 40%, down 3.9 percentage points year-on-year.
General review of property insurance: the premium increased steadily and the investment allocation was more flexible. In the same period, the profit trend of property insurance was generally good. The auto insurance premium increased steadily in the first quarter, but fell year-on-year in March, mainly due to the impact of new car sales, rather than the improvement of auto insurance profit on schedule. From January to March, the year-on-year growth rate of auto insurance premium of China property insurance was 14.5%, 14.9% and 4.6% respectively, and the cumulative year-on-year growth rate was 10.9%, slightly higher than the industry’s 9.5%. In the same period, the cumulative year-on-year growth rate of auto insurance premium of Ping An property insurance was 10.4%, China Pacific Insurance (Group) Co.Ltd(601601) China Hainan Rubber Industry Group Co.Ltd(601118) %.
Meanwhile, the growth rate of non auto insurance premium of China property insurance was 13%, Ping An Property Insurance was 10%, and CPIC property insurance was 16%.
At the same time, with short-term insurance structure, stable asset allocation and stable asset return. The total investment income of China property insurance was 6.5 billion yuan (- 11.6%), the non annualized total investment income rate was 1.2%, a year-on-year decrease of 0.2 percentage points, the corresponding total investment assets were 545 billion yuan (+ 3.1%), and the corresponding investment leverage was 265%, a year-on-year decrease of 3 percentage points.
Investment advice in May: focus on the asset side of life insurance, continue to recommend property insurance, maintain the “over allocation” rating of the sector, and the share price of life insurance fell in April, mainly due to the pressure on the return on assets. Looking forward to may, considering that the scale of newly issued bonds may reach a new high, the asset side situation in May remains to be seen.
The rise of property insurance shares narrowed in April, which is expected to be mainly due to the pressure on the growth rate of new car premiums. Looking forward to may, the average vehicle premium may rise further, and the stock price may continue to grow. At the same time, we believe that the catastrophic risk will be reduced year-on-year, and the profit of non auto insurance will continue to improve, which can hedge the uncertainty to a certain extent.
At the same time, under the background of steady growth, we maintain the “over allocation” rating of the insurance sector.
Risk tips: macro, epidemic and other systemic risks, continued low interest rates, decline in auto insurance premiums, etc.
