On January 19, China Pacific Insurance (Group) Co.Ltd(601601) released the premium income of original insurance in 2021 (hereinafter referred to as “premium income”). So far, the premium income of the five major A-share listed insurance companies last year has been released.
In 2021, the five listed insurance companies achieved a total premium income of 2487523 billion yuan, a slight increase of 0.03% year-on-year. Among them, Ping An Insurance (Group) Company Of China Ltd(601318) obtained a premium income of 760.333 billion yuan, a year-on-year decrease of 4.64%; China Life Insurance Company Limited(601628) obtained a premium income of 620 billion yuan, a year-on-year increase of 1.16%; The People’S Insurance Company (Group) Of China Limited(601319) the annual premium income was 581.047 billion yuan, a year-on-year increase of 3.67%; China Pacific Insurance (Group) Co.Ltd(601601) obtained premium income of 362.673 billion yuan, a year-on-year increase of 1.72%; New China Life Insurance Company Ltd(601336) obtained a premium income of 163.47 billion yuan, a year-on-year increase of 2.48%.
From the perspective of life insurance business, the performance differentiation of listed insurance companies was obvious last year. Industry insiders generally believe that it will take time for the industry to recover. From the perspective of property insurance business, the auto insurance premium income of listed insurance companies showed negative growth last year, but the year-on-year data of single month premium of auto insurance is gradually improving; Non auto insurance business also ushered in greater development opportunities.
life insurance business was significantly differentiated at the end of the year
In terms of life insurance business, the overall performance of listed insurance companies in 2021 is not bright. Among them, China Life Insurance Company Limited(601628) obtained a premium of 620 billion yuan, a year-on-year increase of 1.16%; Ping An Life Insurance obtained a premium income of 457.035 billion yuan, a year-on-year decrease of 4%; CPIC life insurance obtained a premium income of 209.610 billion yuan, a year-on-year increase of 0.55%; New China Life Insurance Company Ltd(601336) obtained a premium income of 163.47 billion yuan, a year-on-year increase of 2.48%; PICC Life Insurance obtained a premium income of 96.847 billion yuan, a year-on-year increase of 0.69%.
From the closing battle in December last year, the performance of listed insurance companies was significantly differentiated. Among them, in December, New China Life Insurance Company Ltd(601336) premium increased by 20.4% year-on-year, China Life Insurance Company Limited(601628) premium decreased by 0.4%, Ping An Life Insurance Premium decreased by 4.5% year-on-year, and PICC Life Insurance Premium decreased by 22.7% year-on-year.
The life insurance premium consists of renewal premium and new policy premium. The new single premium reflects the current business development of insurance enterprises, which is also an important indicator to observe the changes in the operation of insurance enterprises. From the growth rate of new single premium, in 2021, the premium income of Ping An Life’s new business was 115.41 billion yuan, a year-on-year decrease of 2.84%, but the decline was narrowed.
China Securities Co.Ltd(601066) analyst Zhao ran believes that the decline in the growth rate of new single premium is mainly related to the low base in December 2020. In addition, the number of marketing personnel of Ping An Life Insurance decreased by about 35% last year, and the decline of new single premium was less than that of marketing personnel. Moreover, its “good start” business in 2022 met market expectations, and the results of channel reform gradually appeared. Zhao ran expects that the growth rate of new orders of Ping An Life Insurance will probably increase restoratively.
Sun Ting, an analyst at Haitong Securities Company Limited(600837) , said that New China Life Insurance Company Ltd(601336) led the industry in terms of annual premium and single month premium in December, but it is expected that the growth rate of new single term premium in the fourth quarter is still under great pressure.
Insiders are still cautious about the recovery of the life insurance market. Zhou Jin, a management consulting partner of PWC China’s financial industry, once analyzed that the core problem faced by life insurance companies is that the extensive development model that has lasted for many years is unsustainable. These problems have gone through the process from quantitative change to qualitative change. It is difficult to solve these problems overnight.
auto insurance business gathered to head insurance enterprises
In terms of property insurance, listed insurance companies had a great differentiation in 2021, and the premiums of auto insurance business decreased year-on-year. Among them, the premium income of PICC Property Insurance was 448.384 billion yuan, a year-on-year increase of 3.79%; The premium income of Ping An Property Insurance was 270.043 billion yuan, a year-on-year decrease of 5.53%; The premium income of CPIC property insurance was 153.063 billion yuan, a year-on-year increase of 3.35%.
The auto insurance business will be the most affected in 2021. According to the relevant person in charge of the cbcirc, as of the end of October last year, the average vehicle premium was 2762 yuan, 21% lower than that before the comprehensive reform of vehicle insurance, and 87% of consumers’ vehicle insurance premium expenditure decreased. It is estimated that since the comprehensive reform of auto insurance, by the end of October last year, it has reduced the expenditure of auto insurance consumers by more than 200 billion yuan.
In 2021, PICC Property Insurance realized a premium income of 255.275 billion yuan for auto insurance, a year-on-year decrease of 3.9%; The auto insurance premium income of Ping An Property Insurance was 188.838 billion yuan, a year-on-year decrease of 3.7%; The auto insurance premium income of CPIC property insurance was 91.8 billion yuan, a year-on-year decrease of 4.05%.
Although the auto insurance premiums of the three listed property insurance companies decreased year-on-year, they still showed obvious scale advantages compared with the auto insurance premium data of the whole industry. According to the latest data from the China Banking and Insurance Regulatory Commission, in the first 11 months of last year, the overall auto insurance premium income of the property insurance industry decreased by 7.07% year-on-year.
“Since the comprehensive reform of auto insurance, the concentration of auto insurance business has indeed gathered to head insurance enterprises.” Li Xiaozhen, chief actuary of China Re property insurance, said.
The first anniversary of the comprehensive reform of auto insurance has passed, and the monthly auto insurance premiums of some insurance enterprises have gradually rebounded since October 2021. Among them, the premium of PICC Property Insurance and auto insurance rebounded from “a year-on-year decrease of 5.9% in September to” a year-on-year increase of 10.3% in December “. Orient Securities Company Limited(600958) the non bank financial analysis team believes that the scale and quality of auto insurance are expected to be improved simultaneously in the future.
From the perspective of non auto insurance business, except that the premium income of credit guarantee insurance is still declining year-on-year, the premium income of other types of insurance has increased in an all-round way. Among them, the premium income of freight insurance was 4.814 billion yuan, a year-on-year increase of 26.5%; The premium income of accidental injury and health insurance was 80.691 billion yuan, a year-on-year increase of 21.9%; The premium income of agricultural insurance was 42.654 billion yuan, a year-on-year increase of 19.3%; The premium of liability insurance was 33.132 billion yuan, a year-on-year increase of 16.4%. At present, balancing the business structure, reducing the high dependence on auto insurance business and vigorously developing non auto insurance business have become the work actively promoted by many property insurance companies.
