At present, A-share listed insurance companies have successively released the annual premium data of 2021. The original insurance premium income of the four A-share listed insurance companies China Life Insurance Company Limited(601628) , Ping An Insurance (Group) Company Of China Ltd(601318) , The People’S Insurance Company (Group) Of China Limited(601319) , New China Life Insurance Company Ltd(601336) totaled 2124.85 billion yuan in 2021, a year-on-year decrease of 0.25%.
Even head insurance companies are still under obvious pressure, especially on the liability side. “In the past two years, the development speed and quality of life insurance and health insurance industry have encountered many challenges. At present, companies are re examining how to meet the needs of consumers through product innovation.” Zhang Yongqiang, head of life insurance and health insurance market business department of Swiss Re in China, said.
According to Zhang Yongqiang: “From 2013 to 2018, with the liberalization of the qualification of insurance agents, the marketization of life insurance rates, and the awakening of consumers’ awareness of health and medical insurance consumption, the concentration of these dividends has led to a doubling trend in the growth of the industry, but the growth has fallen rapidly in the past two years. The optimistic view is that the moderate growth of the industry from high growth to an average annual growth of 5% to 8% in the future will be the norm, but it may also be short-term China will continue to face the reality of weak growth. All companies are working hard, and the results are not obvious yet. However, from the perspective of the next 2-3 years, we will be more optimistic about the growth of the industry. “
China Life Insurance Company Limited(601628) : the strategic trend of rapid replacement of personnel has attracted attention
Wang Bin’s fall undoubtedly put China Life Insurance Company Limited(601628) on the cusp of the storm again.
On January 8, it was reported on the website of the Central Commission for Discipline Inspection and the state supervision commission that Wang Bin, Secretary of the Party committee and chairman of China Life Insurance Company Limited(601628) insurance (Group) company, was suspected of serious violation of discipline and law, and is currently undergoing discipline review, supervision and investigation by the Central Commission for Discipline Inspection and the State Supervision Commission.
Subsequently, the Party committee of China Life Insurance Company Limited(601628) insurance (Group) company held a meeting to convey the Central Committee’s decision on disciplinary review and supervision and investigation of Wang Bin at the first time. Yuan Changqing, deputy secretary of the Party committee, vice chairman and President of the insurance (Group) company, presided over the meeting.
China Life Insurance Company Limited(601628) is the listed entity of China Life Insurance Company Limited(601628) insurance (Group) company. On January 9, China Life Insurance Company Limited(601628) announced that the operation and management of the company was normal and that a meeting of the board of directors would be held in the near future to determine the candidates for the post of chairman.
On January 13, China Life Insurance Company Limited(601628) announced that the sixth meeting of the seventh board of directors held on the same day considered that in view of the fact that executive director Wang Bin was suspected of serious violation of discipline and law, he was currently undergoing disciplinary review and supervision investigation by the Central Commission for Discipline Inspection and the state Supervision Commission, and was unable to perform the post of chairman of the board of directors. According to the articles of association of China Life Insurance Company Limited(601628) , The meeting recommended non-executive director yuan Qingqing to perform the duties of chairman and legal representative from the date of adoption of the resolution of the board of directors to the effective date of the appointment of the new chairman.
Yuan Changqing, born in 1961, has served as a China Life Insurance Company Limited(601628) non-executive director since February 2018. He is currently the Deputy Secretary of the Party committee, vice chairman and President of China Life Insurance Company Limited(601628) insurance (Group) company, China Life Insurance Company Limited(601628) chairman of Asset Management Co., Ltd., China Life Insurance Company Limited(601628) chairman of Property Insurance Co., Ltd.
China Life Insurance Company Limited(601628) in 2021, the premium income of original insurance was 620 billion yuan, a year-on-year increase of 1.16%.
According to the third quarterly report of 2021, the company realized a net profit of RMB 48.502 billion in the first three quarters, a year-on-year increase of 3%. Due to the renewal of the discount rate assumption of traditional insurance reserves, the net profit attributable to the parent company in the third quarter decreased by 54.5% year-on-year to RMB 7.527 billion.
In the first three quarters, the company achieved a premium income of 553.437 billion yuan, a year-on-year increase of 1.8%. Among them, the renewal premium was 392.201 billion yuan, a year-on-year increase of 6.4%. The short-term insurance premium was 67.945 billion yuan, a year-on-year increase of 1.6%. The growth of new single premium continues to be under pressure, but the decline is narrower than that in the first half of 2021. The first-year premium is 91.517 billion yuan, of which the first-year premium of 10 years and above is 36.899 billion yuan. In the first three quarters, the value of new business decreased by 19.6% year-on-year. The surrender rate was 0.93%, which remained basically stable compared with the same period in 2020.
Moreover, on January 14, China Life Insurance Company Limited(601628) insurance (Group) company announced that Bai Tao was appointed party secretary of China Life Insurance Company Limited(601628) insurance (Group) company.
Bai Tao joined Industrial And Commercial Bank Of China Limited(601398) in 1984 and served as deputy general manager of the project credit department of the head office, vice president of Jilin Branch, President of Hunan Branch, general manager of the asset risk management department of the head office and director of the internal audit bureau. From May 2014 to August 2016, he served as vice president of Guoshou group. From July 2018 to January 2020, he served as executive director, vice chairman and President of PICC group. In January 2020, Bai Tao was transferred to the post of chairman and party secretary of China Development and Investment Group Co., Ltd.
In addition to Bai Tao, the leading group members of China Life Insurance Company Limited(601628) insurance (Group) company also include yuan Changqing, deputy secretary of the Party committee, vice chairman and President, Guo Xinshuang, deputy secretary of the Party committee and chairman of the board of supervisors, Wu Shaohua and Sheng Hetai, members of the Party committee and vice presidents, Li Yanlu, leader of the discipline inspection and supervision team and member of the Party committee of the company, Su hengxuan, Wang Kai and Yang Liping, members of the Party committee and vice presidents.
China Life Insurance Company Limited(601628) the next strategic trend has become the focus of the market. At the meeting held by the Party committee of China Life Insurance Company Limited(601628) insurance (Group) company mentioned above, it was stressed that we should base ourselves on the main responsibility and main business, maintain strategic concentration and stability, adhere to seeking progress in stability, promote high-quality development, and firmly hold the bottom line of no systemic financial risk.
Ping An Insurance (Group) Company Of China Ltd(601318) : the reform is vigorous and the market effect is not satisfactory for the time being
The life insurance reform of Ping An Insurance (Group) Company Of China Ltd(601318) can be described as holding high, but the market effect is not satisfactory. Ping An Life’s original insurance premium income in 2021 was 457.035 billion yuan, a year-on-year decrease of 4%.
According to the third quarterly report of 2021, the company achieved an operating revenue of 904.629 billion yuan, a year-on-year decrease of 1.4%; The net profit attributable to the parent company was 81.638 billion yuan, a year-on-year decrease of 20.8%.
In the first three quarters, Ping An Insurance (Group) Company Of China Ltd(601318) life insurance and health insurance business realized an operating profit of 73.684 billion yuan, a year-on-year decrease of 2.3%; The value of new business was 35.237 billion yuan, a year-on-year decrease of 17.8%.
By the end of the third quarter, Ping An Insurance (Group) Company Of China Ltd(601318) agents had been further reduced, with a total of 706000 agents by the end of the third quarter, a decrease of 19.5% compared with the end of the second quarter.
The capital market also gave feedback. Since 2021, the insurance sector has continued to weaken, and the sector has almost halved since last year’s high, especially Ping An Insurance (Group) Company Of China Ltd(601318) share price.
Ping An Insurance (Group) Company Of China Ltd(601318) the reform of life insurance focuses on digitization. With the change of market environment and consumer demand, the traditional operation and management mode of life insurance is being reconstructed. As an important means to optimize experience, reduce cost and increase efficiency, digitization has become one of the breakthroughs in the transformation of life insurance industry to high-quality development.
Recently, Yang Zheng, Party Secretary of Ping An Life, said: “The life insurance operation in the digital age is like a large civil aviation airliner, and the channels and products are the wings of the aircraft; the operation of the company is similar to the cabin service of the aircraft, and its purpose is to give customers a better experience; the common resources are more like the cockpit and dashboard of the aircraft, which can clearly grasp the dynamics of the aircraft; and digitization is a new engine to provide services for the whole aircraft Continuous power to drive the aircraft to the destination that customers really want to go.
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In the face of difficulties, Yang Zheng is still full of confidence in reform and transformation, “Digital reform is not superficial, but in-depth. It is a comprehensive and in-depth reform that connects the top and bottom. This is a firm step after we have comprehensively sorted out the pain points of the current supply-demand mismatch. We firmly believe that digital can help the company solve the pain points and difficulties in its current development, make the seamless integration of technology and business processes, and help the transformation and breakthrough of life insurance High quality development. “
Yang Zheng pointed out that to successfully promote the reform of life insurance, we need to reshape the operation and management mode of life insurance with the support of process driven, data-driven and digital sharing platform.
New China Life Insurance Company Ltd(601336) : regain market business quality and sustainability tested
New China Life Insurance Company Ltd(601336) has regained its market position in recent years, but the sustainability of business quality has become the focus of the market.
New China Life Insurance Company Ltd(601336) in 2021, the premium income of original insurance was 163.47 billion yuan, a year-on-year increase of 2.48%.
According to the third quarterly report of 2021, the net profit attributable to the parent company in the first three quarters was 11.954 billion yuan, an increase of 7.6% year-on-year, subject to the increase of surrender mentioned in the provision of 8.847 billion yuan; In the third quarter, the net profit attributable to the parent company in a single quarter was 1.408 billion yuan, a year-on-year decrease of 51.2%.
According to the Research Report of Guotai Junan Securities Co.Ltd(601211) non bank financial industry, New China Life Insurance Company Ltd(601336) the premium pressure in the first three quarters expanded across the board, and it is expected that the change of product structure will further put pressure on the value ratio of new business, which will further increase the negative growth pressure of new business value.
Specifically, first, the pressure on new orders in the first three quarters showed a further expansion trend compared with that in the Chinese newspaper. The premium on new orders was 39.966 billion yuan, a year-on-year decrease of 5.4% (a month on month decrease of 3.7 percentage points), of which the personal insurance channel decreased by 12.2% (a month on month decrease of 5.2 percentage points), and the bancassurance channel decreased by 2.4% (a month on month decrease of 2.6 percentage points).
Second, it is expected that the change in the structure of new single products will have a negative impact on the value rate of new business. In the first three quarters, the premiums paid in ten-year and above decreased by 35.1% year-on-year (down 11.9 percentage points month on month), and the negative growth pressure of long-term insurance policies with high value rate is greater. Based on the mismatch between supply and demand in the insurance industry caused by the improvement of customer cognition, the extensive human growth model is unsustainable. We focus on the implementation of measures to improve the quality of the channel end.
Previously, New China Life Insurance Company Ltd(601336) party secretary, CEO and President Li Quan said that when we jump out of difficulties and look at the market, the industry fundamentals have not been lost and the development space is still broad. The change of aging population structure has brought about the growth of demand in the field of elderly care and health, and residents’ bank deposits precipitate a large number of investable financial assets. The current challenge of the industry is to fall into the contradiction of “mismatch between supply and demand”. The mode, logic and idea of supply are backward and can not match the demand of the new era. Reform is the only way out.
Li Quan frankly said that reform and transformation are imperative. At present, the industry is facing three changes of the times: customer supply and demand, channel mode and regulatory ideas. The company must rethink the relationship with customers, products and teams, comply with the regulatory trend and closely follow the needs of the country and the context of the times. “The reform and transformation should focus on the core objectives and have the courage to try; it should be gradual and realistic. The overall goal of Xinhua’s reform and transformation is to achieve high-quality development and explore a future sustainable growth model, which requires trial and error.”
Li Quan pointed out that reform and transformation does not negate all. We should inherit past business achievements, adhere to the spiritual and cultural core of Xinhua, and respect the objective laws of industry development. At the same time, reform and transformation should focus on trade-offs, dare to abandon old ideas and be home. Both channels and institutions should go out of the comfort circle and explore new development models.
