2022年1月20日

Life insurance premiums top 10 new Xinhua insurance rose to the fourth

The combination of the epidemic and the differences in corporate strategy has repositioned life insurers. In 2020, five of the top ten positions of life insurance companies have changed under the original premium caliber.

China Life, Ping An and CPIC Life remained in the top three, although Xinhua Insurance rose two places from sixth to fourth, making it the fastest riser among the top 10 life insurers.

Looking beyond the past five years, the change in position is even more pronounced in the life insurance industry, with growth differentials visible even among large companies.

Five changed places

According to industry data obtained by Securities Times reporters, the top 10 life insurance companies before 2020 are in line with the previous year, but the ranking has changed.

The top three are China Life Insurance, Ping An Life Insurance and CPIC Life Insurance, with premiums of 612.9 billion yuan, 476.1 billion yuan and 208.5 billion yuan respectively, with market shares of 19.4%, 15.0% and 6.6%, respectively.

Ranked fourth was Xinhua Insurance, with a premium of 159.5 billion yuan, up 15.5 percent year on year, with a market share of 5.0 percent, an increase of about 0.37 percentage points. Compared with 2019, Xinhua Insurance moved up two places in the ranking, the most obvious improvement among the top 10 life insurance companies.

As the market premium once ranked the third company, Xinhua insurance is the life insurance industry two years the biggest momentum of the company. In the middle of 2019, the board of directors of the company changed, and the new management also put forward the goal of “second take-off”, and established the mode of “two-wheel driving of assets and liabilities, comprehensive development of scale and value”, indicating that the company would follow the development of the whole Chinese life insurance market, and defend the company’s first echelon market position. In 2020, the first full year of the implementation of the new strategy, the premium has increased significantly.

On the opening day of December last year, xinhua insurance also puts forward the wealth management strategy, said the next three to five years, will be relying on the insurance business, create wealth management platform, with pension, third-party funds as a breakthrough, further enrich the product system, the formation of two-wheel driven effect, liabilities business to a new level.

New China Insurance, Taiping Life Insurance and Taikang Life Insurance, ranked fifth to seventh after Xinhua Insurance, with premiums of more than 140 billion yuan. The top seven life insurance companies are also members of the insurance companies with premiums of over 100 billion in the market.

PICC life insurance ranked eighth with 96.2 billion yuan. Ranking ninth was China Post Life Insurance Co., up one place from a year earlier, with premiums of 82 billion yuan, up 21.4 percent year on year, the highest growth rate among the top 10 life insurers.

Foresea Life Insurance ranked 10th, down one place from the previous year, with a premium of 78.3 billion yuan in 2020, up 2.36 percent year-on-year.

Notably, the top 10 life insurance companies showed divergent business growth rates last year, with six increasing premiums and four declining premiums. China Post Life Insurance saw the highest growth of more than 20 per cent. Xinhua growth rate of 15.5%, Taikang growth rate also has 10%, belongs to the higher growth rate of the company; Among the decliners, China AMC saw the biggest drop in premiums, falling 19.5 percent, while the other three, Ping An, Pacific Insurance and PICC, all saw single-digit declines.

The total market share of the top 10 life insurance companies is 67.84%, 3.34 percentage points lower than the 71.18% in 2019. In other words, the concentration of life insurance market has decreased.

In addition, Fude Life Insurance and Evergrande Life Insurance also promoted quickly. Among them, the insurance premium of Fude Life reached 60.8 billion yuan, up 18.5% year on year, ranking 11th, up two places. Evergrande Life Insurance rose four places to 12th place with a premium of 60.3 billion yuan, up 43.6 percent year on year.

The past five years have seen different growth rates

Life insurance companies are the subjects that carry out long-term business. One year’s situation does not represent the long-term development trajectory of insurance companies. Stretch the line of sight and you may get a different impression.

From the life insurance industry, the good trend in recent years is remarkable. In the past five years, the number of life insurance players has increased by 16; The number of insurance premiums of 100 billion yuan will increase from four in 2015 to seven in 2020. In 2015, there were 24 insurance companies with premiums of 10 billion yuan. By 2020, there will be 40 life insurance companies with premiums of 10 billion yuan. The total premium of life insurance companies in 2020 was 3.17 trillion yuan, with an annualized growth rate of 14.84% in the past five years.

In 2020, the market share of the top 10 life insurance companies totaled 67.84 percent, down more than 8 percentage points from 75.85 percent in 2015. The market concentration CR10 of the top 10 in life insurance has declined, indicating that the degree of competition in the life insurance market has increased.

In terms of individual insurers, among the 75 insurers with comparable data, there are huge differences, reflecting the fierce competition, just from the top 10 companies in 2020.

In terms of companies with fast growth, the premiums of China AMC, Foreland Life Insurance and China Post Life Insurance increased by more than 2 times in five years, with an annual growth rate of over 27%. Ping An life insurance premiums also doubled, with an annual growth rate of more than 17%, with the highest growth rate among the “old seven” middle-aged.

Most of the top 10 companies in 2020 have experienced an annualized growth rate of around 12%-13% in the past five years, which is slightly lower than the growth rate of the industry as a whole.

On the other hand, some of the top 10 life insurance companies are also growing at a slower rate. For example, the insurance premium of PICC life insurance was 89.4 billion yuan in 2015 and 96.2 billion yuan in 2020. The annual growth rate of insurance premium in the five years was 1.47%, which was significantly lower than the overall growth rate of the industry.

Looking at the 11th to 20th companies in the industry, these companies as a whole have grown faster than the top 10 companies over the past five years. Among them, AIA Life Insurance, a foreign life insurance company that attracts more attention, has achieved steady growth. Its premium has increased from 12.6 billion yuan in 2015 to 38.8 billion yuan in 2020, with an annual growth rate of more than 25%, and its market ranking has risen from 22nd in 2015 to 19th in 2020.

At the same time, in the past five years, the ranking of life insurance has changed greatly, once appeared “old seven” was squeezed into the bottom of the top ten or even out of the top ten situation, but then there is a return. Compared to 2015, Anbang Life Insurance and other aggressive companies have already dropped out of the top 10, and the top 10 is still dominated by the “old seven”.

A person in charge of a small and medium-sized life insurance company believes that the rise and fall of the main body of the life insurance industry in the past few years is more obvious, especially since 2017 with the strong guidance of the regulatory industry to return to security, the transformation of the life insurance industry is the main keynote, which is beneficial to the long-term development of the industry, although it has returned to the relatively favorable situation of large companies and old companies.

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