China-Singapore Jingwei Client, March 29th (Feng Fang) On March 28th, China Pacific Insurance disclosed its 2020 annual report. So far, the 2020 "transcripts" of the five major A-share insurance companies have been released.
Five major insurance companies make 689 million a day
In 2020, the net profit of the five major A-share insurance companies totaled 252.314 billion yuan, with a daily profit of 689 million yuan, a year-on-year decrease of 7.63%.
In terms of scale, Ping An’s net profit reached 143.099 billion yuan, leading the five major insurance companies and exceeding the net profit of the remaining four companies.
Specifically, China Life, China Pacific Insurance, PICC, and Xinhua Insurance have net profits of 50.268 billion yuan, 24.584 billion yuan, 20.069 billion yuan, and 14.294 billion yuan respectively.
It is worth noting that due to factors such as the new crown pneumonia epidemic, the net profits of the five major insurance companies have declined to varying degrees in 2020, and the decline has gradually narrowed in quarters. For the whole year, the net profit growth of the five major insurance companies has not turned positive.
Xinhua Insurance’s net profit fell the least, at -1.8%; followed by Ping An of China, at -4.2%.
China Life, China Pacific Insurance, and PICC's net profits all fell by double digits, which were -13.8%, -11.4%, and -10.4%, respectively.
Talking about the reasons that affect net profit, factors such as the impact of the epidemic, the adjustment of the pre-tax deduction policy of insurance company handling fees and commission expenditures in 2019 have been mentioned many times.
The People's Insurance Company of China pointed out that the epidemic has brought multiple impacts to the insurance industry, coupled with the deviation of the climate and the year, credit risks have become prominent, financial market volatility has intensified, and industry premiums and profit growth have declined significantly.
Xinhua Insurance stated that under the influence of the epidemic, offline development through traditional channels has been hindered, and the development of products represented by long-term annuities and critical illness insurance is under pressure.
Regarding the change in net profit, China Life mentioned that it is mainly due to the combined effects of the update of the discount rate of traditional insurance reserves, the adjustment of the pre-tax deduction policy for implementation fees and commission expenses in 2019, and the changes in investment income.
Data map.
Photo by Xiong Siyi, Sino-Singapore Jingwei
Insurance premium income is nearly 2.5 trillion
However, in terms of revenue, the five major insurance companies have achieved steady growth.
Among them, Ping An of China ranked first in revenue, reaching 1,218.315 billion yuan; Xinhua Insurance had the highest growth rate, at 18.3%.
From the perspective of premium income, in 2020, the five major insurance companies' insurance business income totaled 2,495.326 billion yuan.
Among them, Ping An of China once again led the way, with 797.88 billion yuan.
In addition, China Life is 612.265 billion yuan, PICC is 563.606 billion yuan, China Pacific Insurance is 362.64 billion yuan, and Xinhua Insurance is 159.511 billion yuan.
In terms of property insurance, PICC Property & Casualty Insurance’s premium income was 433.187 billion yuan, which was almost the same as the previous year, with a market share of 31.8%, ranking first in the industry; Ping An Property & Casualty Insurance’s premium income was 285.854 billion yuan, a year-on-year increase of 5.5%; CPIC Property & Casualty Insurance premium income was 1477.34 Billion yuan, an increase of 11.1% year-on-year.
In terms of personal insurance, due to the epidemic, offline visits by agents have been blocked, and sales of some personal insurance products have been affected.
China Pacific Insurance mentioned in its 2020 annual report that the sudden epidemic has had a huge impact on the traditional business model.
To this end, major insurance companies have promoted the online transformation of operational services.
For example, Ping An provides its agents with online exhibition industry support such as VR meeting, real-time training, and real-time assistance. Xinhua Insurance uses online recruitment and online live broadcast to ease contact difficulties.
Throughout the year, the life insurance business of the five major insurance companies has grown steadily. For example, according to China Life’s financial report, the company’s premium income will exceed 600 billion yuan for the first time in 2020, and life insurance, health insurance and other businesses have increased to varying degrees; China Pacific Insurance’s financial report shows that life insurance companies The premium income was 3,167,364 million yuan, a year-on-year increase of 6.9%. Based on the original premium income, CPIC Life was the third largest life insurance company in China.
Data map.
Photo by Xiong Siyi, Sino-Singapore Jingwei
Focus on technology, elderly care and other fields in the future
A reporter from China-Singapore Jingwei noted that looking forward to the future, the five major insurance companies have repeatedly mentioned the aspects of technology, pension, digitalization, and rural revitalization.
China Life pointed out that the fields of health and elderly care will become important growth points for the next round of development of the industry. In addition, the integration of the insurance industry and technology will further accelerate. Cloud computing, big data, artificial intelligence and other technologies will be used in sales services, operation management, and wind
With the deep empowerment of value chain links such as risk prevention and control, the digital transformation of the industry will further accelerate.
Ping An of China stated that it will continue to promote the transformation of intelligent and data-based operations and maintain the steady growth of various businesses; seize the opportunities of technological innovation and continue to promote "technology-enabled finance, technology-enabled ecology, and ecologically-enabled finance".
PICC proposes to serve the revitalization of villages, develop local characteristic agricultural product insurance, continue to do a good job in fixed-point poverty alleviation and insurance poverty alleviation; serve the pension system, actively participate in the pilot of exclusive pension insurance products, and develop diversified and multi-level commercial pension insurance and pension products .
Xinhua Insurance stated that it will strengthen technology empowerment and data drive, promote the implementation of key projects, increase efforts to promote the integration of online and offline operations; take advantage of the long-term stability of life insurance funds, support major national development strategies and strategic emerging industries, and accelerate the promotion of the first Three-pillar personal pension business development.
China Pacific Insurance mentioned that it will promote long-term talent incentives, marketization of technological innovation, platformization of health services, professionalization of investment management and modernization of corporate governance, focusing on the construction of key areas such as large health, large regions, and big data, and accelerate the formation of new development momentum .
(Zhongxin Jingwei APP)
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