Five major insurance companies proudly reward investors with a total proposed cash dividend of 78.4 billion yuan

Five major insurance companies proudly reward investors with a total proposed cash dividend of 78.4 billion yuan

Our reporter Leng Cuihua

When insurance funds choose investment objects, they often favor listed companies with stable performance and high dividend payout ratios. In contrast, the five major A-share listed insurance companies themselves have dividend payouts. Obviously, they have not disappointed investors.

Data show that in 2019, the five largest A-share insurers Ping An, China Life, China Pacific Insurance, PICC, and Xinhua Insurance totaled a net profit of 272.395 billion yuan, an increase of 72.2% year-on-year. At the same time, the total cash dividends of the top five insurance companies last year amounted to 78.392 billion yuan (nearly 78.4 billion yuan), accounting for 28.78% of the total net profit attributable to the parent company.

Specifically, Ping An's 2019 annual profit distribution plan is to pay a final dividend of 1.30 yuan in cash per share in 2019 (including tax, the same below), plus a paid interim dividend of 0.75 yuan in cash per share for 2019. The full year dividend was 2.05 yuan in cash per share, a year-on-year increase of 19.2%.

From the perspective of the total dividend payout, it is estimated that the total final dividend payout for 2019 will be 23.589 billion yuan, plus the mid-term distributed cash dividend of 13.667 billion yuan. The total dividend payment for the whole year is expected to be 37.356 billion yuan, a year-on-year increase of 19%. Including the use of cash as the consideration, the use of centralized bidding in the year of the share repurchased amount of 5.01 billion yuan, the total cash dividends in 2019 accounted for 28.4% of the company's net profit of 149.4 billion yuan in 2019. At the same time, from the past three years, Ping An's cash dividends have a compound annual growth rate of 39.7%.

Ping An said that last year its total cash dividends did not reach 30% of its net profit attributable to its mother, mainly based on three considerations.

First, the external macroeconomic situation is under pressure. Since 2019, the internal and external environment facing China's economic development has become increasingly complex and volatile. Economic growth has slowed down and downward pressure has continued to increase. Financial institutions continue to face challenges such as slowing business growth, shrinking profitability and declining asset quality.

Second, capital regulatory requirements are becoming increasingly stringent. With the implementation of the second phase of the "Compensation for the Second Generation", new regulations on capital supervision of banks, trusts, and securities have been introduced. Capital restrictions on regulated companies such as insurance, banking, and asset management have tightened, and requirements for capital adequacy and capital quality have been tightened. Will continue to improve.

Third, the strategic advancement continued to deepen. The company stated that it defined "finance + technology" as its core business more clearly. As the strategy continues to deepen, it is necessary to make capital planning and allocation arrangements in advance to ensure the capital requirements for business development and enhance the company's resistance. Ability to risk.

According to the PICC Group's profit distribution plan, it intends to distribute a cash dividend of 0.116 yuan to all shareholders, an increase of 154% over 2018. In total, it intends to distribute cash dividends of 5.130 billion yuan, with cash dividends accounting for 24.0 billion yuan of net profit attributable to the parent 22.9%, the profit distribution ratio in 2019 increased by 7.9 percentage points compared with the distribution ratio in 2018.

PICC stated that the retained profits of the company are mainly to enhance the retention of endogenous capital to meet the needs of capital replenishment and promote the sustainable development of the group, but it is not yet possible to determine the expected earnings.

At the 2019 annual results conference held on March 30, PICC Chairman Miao Jianmin stated that the dividend in 2019 has increased significantly on the one hand that investors do have expectations; on the other hand, the company's major shareholders have also requested it, so the dividend ratio has been increased. , And profitable in 2019. When looking at the dividends in 2020 and beyond, he said that even if the company's earnings fluctuated, the proportion of dividends would not decrease and would only increase gradually.

CPIC's board of directors decided that it would distribute an annual cash dividend of 1.2 yuan per share, totaling 10.874 billion yuan, accounting for 39.2% of the net profit attributable to the parent.

China Life intends to distribute a cash dividend of RMB 0.73 per share to all shareholders, and the proposed cash dividend will total approximately 20.633 billion yuan, accounting for 35% of the company's net profit attributable to its parent of 58.3 billion yuan.

Xinhua Insurance decided by the board of directors that the company intends to distribute a cash dividend of 1.41 yuan per share to all shareholders, totaling a proposed cash dividend of 4.399 billion yuan, accounting for 30.2% of the company's net profit of 14.559 billion yuan.

Insiders said that the dividend level of a listed company often reflects the profitability of a company and the generosity and sincerity of sharing growth with shareholders. From the perspective of the industry, the top dividend levels of listed companies in banks, non-bank finance and other industries also show that they have a stable operation, strong ability to resist risks, and bring rich returns to long-term investors. (Securities Daily)