The five listed insurance companies made more than 210 billion yuan last
year or face greater investment pressure this year
Listed Company Watch
With the release of Xinhua Insurance's 2021 performance report, the performance report of A-share listed insurance companies last year has been fully disclosed.
The reporter noticed that the five listed insurance companies made a total of more than 210 billion yuan last year, with an average daily income of nearly 600 million yuan.
However, the annual reports of listed insurance companies reflect the general decline in the value of new business last year and the significant decline in the number of agents, and are expected to face greater investment pressure in 2022.
Text/Guangzhou Daily All Media Reporter Zhao Fangyuan
The top five listed insurance companies earned an average of 590 million yuan a day last year, and the value of new business fell in general
The reporter sorted out and found that as of now, the five A-share listed insurance companies, China Ping An, China Life, PICC, China Pacific Insurance, and Xinhua Insurance, have a combined net profit of 215.94 billion yuan, a year-on-year decrease of 14.4%; the average daily total net profit is 590 million yuan Yuan.
Except for China Ping An, the total operating income and net profit of other listed insurance companies have positive year-on-year growth to varying degrees, but the increase is within 10%.
Specifically, according to the 2021 performance report released by Xinhua Insurance on the evening of March 29, the operating income last year was 222.4 billion yuan, a year-on-year increase of 7.7%; the net profit attributable to the parent was 14.95 billion yuan, a year-on-year increase of 4.6%.
The operating income and net profit of Ping An were 1.18 trillion yuan and 101.618 billion yuan respectively, ranking first among the five A-share listed insurance companies; the total operating income of China Life, PICC, and China Pacific Insurance reached 858.5 billion yuan, 597.7 billion yuan, and 44.06 billion yuan respectively. The net profit was 50.92 billion yuan, 21.64 billion yuan and 26.83 billion yuan respectively.
Several listed insurers saw a decline in the value of new business last year.
As of the end of 2021, the embedded value of New China Insurance reached 258.824 billion yuan, an increase of 7.6% from the end of the previous year; the value of new business for one year was 5.98 billion yuan, a year-on-year decrease of 34.9%; the new business value of CPIC Life Insurance was 13.412 billion yuan, a year-on-year decrease of 24.8%; PICC Life's one-year new business value fell by 40.6% year-on-year.
Previously, the 2021 annual report released by Ping An showed that the new business value of life insurance and health insurance business last year was 37.898 billion yuan, a year-on-year decrease of 23.6%.
The number of agents has dropped significantly, and leading companies are struggling to transform
The number of agents of insurance companies such as China Life, Ping An Life, and PICC Life has declined significantly.
According to the annual report of PICC Life, as of December 31, 2021, there were 185,944 "big personal insurance" marketers, a year-on-year decrease of 55%.
China Life's annual report shows that as of the end of 2021, China Life's total sales force has dropped to about 890,000, a decrease of about 568,000 from 1.458 million at the end of 2020, a year-on-year decrease of nearly 39%.
In recent years, the loss of agents has attracted much attention in the industry.
In this regard, leading insurance companies are struggling to transform and build professional teams.
Zhan Zhong, vice president of China Life, said at the performance conference that the entire industry is still in a period of structural change, and it is expected that the industry will remain under pressure for some time.
In 2022, the development strategy of China Life's personal agent team is to improve the quality and quantity, continuously optimize the team structure, improve the quality of the team, and transform to specialization and professionalism.
Insurance companies did not see significant growth in investment income last year, and will face greater investment pressure in 2022
From the perspective of investment, the growth of investment income of major listed insurance companies last year was not obvious.
China Life achieved a total investment income of 214.057 billion yuan last year, a year-on-year increase of 7.8%.
The total investment yield was 4.98%, down 32 basis points from 2020.
PICC will achieve a total investment income of 63.068 billion yuan in 2021, a year-on-year increase of 11.2%; the total investment return rate will reach 5.8%, basically the same as the previous year.
New China Insurance will achieve a total investment income of 57.621 billion yuan in 2021, an increase of 10.957 billion yuan compared with 2020, a year-on-year increase of 23.5%.
For 2022, Li Quan, CEO and President of New China Insurance, said that the market situation this year is more complicated, and all investors are under "great pressure", but the company actively responded and made certain major asset adjustments.