On January 20, insurance stocks strengthened across the board. As of the closing, the wind insurance index led A-Shares up by 3.27%, of which New China Life Insurance Company Ltd(601336) closed up by 4.51%, and Ping An Insurance (Group) Company Of China Ltd(601318) and China Pacific Insurance (Group) Co.Ltd(601601) also rose by more than 3%.
With the release of China Pacific Insurance (Group) Co.Ltd(601601) premium data, the premium “transcripts” of the five major A-share insurance companies in 2021 have been disclosed. According to the data, in 2021, Ping An Insurance (Group) Company Of China Ltd(601318) , China Life Insurance Company Limited(601628) , The People’S Insurance Company (Group) Of China Limited(601319) , China Pacific Insurance (Group) Co.Ltd(601601) , New China Life Insurance Company Ltd(601336) five listed insurance companies achieved a total premium income of 2487523 billion yuan, a year-on-year increase of 0.03%.
Insiders said that the “spring” of the insurance market will come. Looking forward to the new year, the impact of covid-19 pneumonia epidemic will gradually weaken. It is expected that the consumption growth rate will accelerate and pick up, and the insurance demand will gradually pick up.
the inflection point of life insurance liability data is asymptotic
Specifically, in terms of total premium, Ping An Insurance (Group) Company Of China Ltd(601318) is still in the “top position”. Last year, the premium income was 760333 billion yuan, China Life Insurance Company Limited(601628) (620 billion yuan) and The People’S Insurance Company (Group) Of China Limited(601319) (581.047 billion yuan) also exceeded 500 billion yuan, ranking second and third. The premium income of China Pacific Insurance (Group) Co.Ltd(601601) and New China Life Insurance Company Ltd(601336) in 2021 is 362.673 billion yuan and 163.47 billion yuan respectively.
In terms of year-on-year growth, except Ping An Insurance (Group) Company Of China Ltd(601318) , the other four listed insurance companies maintained positive growth, of which The People’S Insurance Company (Group) Of China Limited(601319) led the listed insurance companies with an increase of 3.67%, and New China Life Insurance Company Ltd(601336) ranked second, with a year-on-year increase of 2.48%.
Life insurance is the largest business of insurance companies. In 2021, the life insurance business of the top five A-share listed insurance companies increased except Ping An Life. Among them, New China Life Insurance Company Ltd(601336) , China Life Insurance Company Limited(601628) , PICC Life Insurance and CPIC life insurance increased by 2.5%, 1.2%, 0.7% and 0.6% respectively in 2021, showing a basically flat state.
Source: Haitong Securities Company Limited(600837)
Looking forward to the premium in the first quarter of 2022, Haitong Securities Company Limited(600837) analyst sun Ting said that the “good start” in 2022 was generally delayed. Under the high base, new life insurance orders may face negative growth in the first quarter. At present, the main products of the “good start” in 2022 are still savings products with high yield. Insurance companies have also further raised the upper limit of the insurance age and extended the insurance age. It is expected that on the basis of the high base in 2021, the “good start” growth rate of insurance enterprises in 2022 will face pressure. After March, due to the significant decline in the base in the same period of last year, it is expected that the premium growth rate may improve to a certain extent.
Looking forward to the whole year, Guotai Junan Securities Co.Ltd(601211) securities analysts Liu Xinqi and Xie Yusheng believe that under the influence of the breaking of the new asset management regulations and the intensification of the volatility of the equity market, customers’ demand for wealth management with stable income is increased, and the insurance companies’ supporting scarce elderly care community services are superimposed, which is expected to promote the rapid growth of savings products represented by lifelong life insurance, It will become the next growth point of life insurance companies.
auto insurance premium income of head insurance enterprises recovered
After the comprehensive reform of auto insurance for more than a year, China’s auto insurance premium income shows a warming trend.
According to the data, the premium income of PICC Property Insurance and auto insurance business was 255.275 billion yuan, a year-on-year decrease of 3.9%; The premium income of Ping An Property Insurance and auto insurance business was 188.838 billion yuan, a year-on-year decrease of 3.7%; CPIC’s auto insurance business income was 91.8 billion yuan, a year-on-year decrease of 4%.
Source: Haitong Securities Company Limited(600837)
Although the annual data is still declining year-on-year, the auto insurance premium income has stabilized only by looking at the data of December 2021 and the fourth quarter. In December 2021, the auto insurance premium of PICC Property Insurance increased by 10.3% year-on-year; In the fourth quarter of 2021, the premium income of Ping An Property Insurance and CPIC property insurance increased by 8.7% and 8.3% respectively year-on-year.
Sun Ting said that auto insurance premiums have returned to positive growth. On the one hand, the comprehensive reform of automobile insurance has been completed for one year, and the downward trend of average automobile premium has gradually stabilized. On the other hand, after the comprehensive reform of auto insurance, the base number will decline in the same period in 2021, and the future auto insurance premium is expected to usher in a trend upward.
Orient Securities Company Limited(600958) the research report also pointed out that the deterministic trend of auto insurance growth has been consolidated, and it is expected to usher in the synchronous improvement of scale and quality in the future.
It is worth mentioning that the health insurance business is also developing rapidly. From the disclosed data, the growth rate of premium income of the two health insurance professional companies still maintained high growth. Among them, PICC Health achieved a premium income of 35.816 billion yuan in 2021, a year-on-year increase of 11.03%; Ping An Health Insurance realized a premium income of RMB 11.233 billion in 2021, a year-on-year increase of 22.34%. In addition, Zhong’an insurance recently announced that the original premium income in 2021 was 20.36 billion yuan, a year-on-year increase of 22%.
northbound capital New Year Shopping
In 2021, the share prices of the five major A-share insurance companies were depressed, with a cumulative decline of double digits.
Since 2022, except for China Life Insurance Company Limited(601628) , the stock prices of the other four insurance companies have rebounded. The cumulative increase of Ping An Insurance (Group) Company Of China Ltd(601318) and China Pacific Insurance (Group) Co.Ltd(601601) exceeded 5%, and New China Life Insurance Company Ltd(601336) was 4.24% and The People’S Insurance Company (Group) Of China Limited(601319) was 1.91%.
At the same time, foreign capital is also “sweeping” insurance stocks at the beginning of the year. As of January 19, the shareholding of foreign capital in Ping An Insurance (Group) Company Of China Ltd(601318) , China Pacific Insurance (Group) Co.Ltd(601601) , The People’S Insurance Company (Group) Of China Limited(601319) , China Life Insurance Company Limited(601628) , New China Life Insurance Company Ltd(601336) increased by 2.72%, 4.03%, 21.17%, 5.46% and 7.41% respectively compared with the closing on December 31, 2021.
In addition, northbound funds bought a substantial net amount of RMB 12.576 billion on January 20, a new high since December 9, 2021. Among them, Ping An Insurance (Group) Company Of China Ltd(601318) received a net purchase of 1.353 billion yuan.
Institutional people believe that the current valuation and expectation of the insurance sector are at historical lows, with defensive attributes. The current valuation has fully reflected the pessimistic expectations on the liability side, and the positive superposition valuation switching on the short-term asset side is expected to drive the valuation repair.
