The insurance sector rebounded with the weakness of the market
Last week (2022 / 05 / 09-05 / 13), the market rebounded, and the insurance sector rebounded with the market, but the increase was far behind the market. Finally, the CSI 300 index closed at 39886002, up 2.0412%; Insurance (Shenwan) closed at 917.51, rebounding only 0.2842%, 1.76pct behind the Shanghai and Shenzhen 300 index. In terms of individual insurance stocks, the five listed insurance companies have obvious ups and downs. Except for China Pacific Insurance (Group) Co.Ltd(601601) rising by 5.6331%, the other four companies have weak performance, Ping An Insurance (Group) Company Of China Ltd(601318) or even fell by 0.2270%.
Affected by the epidemic, the income growth rate in April was poor, with only PICC exceeding 10%
At present, the five listed insurance companies have announced the original premium income in April. In total, the cumulative growth rates are PICC, CPIC, Xinhua, Ping An and Guoshou, with cumulative growth rates of 13.88%, 6.23%, 3.83%, 0.68% and – 2.69% respectively. The monthly growth rates are Xinhua, PICC, CPIC, Ping An and Guoshou, with growth rates of 12.87%, 11.96%, 0.58%, – 1.10% and – 2.06% respectively. In terms of life insurance, the cumulative growth rates from high to low are PICC, CPIC, Xinhua, Ping An and Guoshou, with growth rates of 17.18%, 3.96%, 3.83%, 2.42% and 2.69% respectively. The monthly growth rates were Xinhua, PICC, CPIC, Guoshou and Ping An, up 12.87%, 5.52%, 1.86%, 3.10% and 2.06% respectively. In terms of property insurance, the cumulative growth rates are: PICC, PICC and Ping An, with growth rates of 10.60%, 10.33% and 8.35% respectively. The monthly growth rates are: PICC, Ping An and PICC, with growth rates of 2.67%, 2.21% and – 0.64% respectively. Among them, PICC, with a relatively high growth rate, property insurance mainly benefited from the growth of 7.6% for vehicle insurance, 13.5% for accidental injury and health insurance, 24.7% for agricultural insurance, and 115.9% for long-term insurance in the first year.
The CBRC revised and issued the notice on investment of insurance funds in financial products to broaden the scope of investment and help stabilize investment income
At the end of 2021, the balance of insurance fund utilization was about 23.2 trillion, of which the investment in financial products accounted for 7.4%. Due to the continuous decline of the yield of 10-year Treasury bonds and the sharp decline of the capital market since the beginning of the year, the performance of listed insurance companies in the first quarter was lower than expected, the smallest decline was more than 10%, and the largest New China Life Insurance Company Ltd(601336) decline was more than 70%. Our task is to broaden the scope of investment, which will help insurance companies prevent investment risks, maintain the safety of insurance funds and stabilize investment returns.
It is suggested to pay attention to insurance companies that may take the lead in restoring rapid growth under pressure, 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.
