2022年1月17日

That’s $24.6 billion! One out of every 10 people is an institutional client, with total assets of $1.77 trillion! The map of elderly care communities across the country has been steadily expanded

On the afternoon of March 28, China Pacific Insurance Co., Ltd. released its 2020 Annual Report, which is the first annual report since China Pacific Insurance Co., Ltd. completed the issuance of GPR and landed on the London Stock Exchange in June 2020.

Data show that in 2020, CPIC Group achieved operating income of 422.182 billion yuan, among which the insurance business income of 362.064 billion yuan, a year-on-year growth of 4.2%; Net profit attributable to the parent reached 24.584 billion yuan, down 11.4% year on year; The group’s operating profit was 31.14 billion yuan, up 11.7% year on year. Proposed dividend of 1.3 yuan per share, up 8.3% from 2019.

By the end of 2020, the total assets of the CPIC Group were 1.77 trillion yuan, an increase of 15.9% compared with the end of 2019. The number of customers of the Group is 147 million, an increase of 8.91 million compared with the end of last year. The equivalent of one in 10 Chinese is a CPO customer.

Net income fell 11.4 per cent and operating profit rose 11.7 per cent

In 2020, CPIC Group’s net profit attributable to its parent reached 24.584 billion yuan, a year-on-year decrease of 11.4%. Among them, the net profit of CPIC life insurance was 18.642 billion yuan, a year-on-year decrease of 9.2%; The net profit of CPIC property insurance was 5.209 billion yuan, down 11.9 percent year on year.

The change of accounting estimate is an important factor that leads to the decrease of net profit. According to the announcement, the company on December 31, according to the current information to the related assumptions have been adjusted (mainly the discount rate of the insurance contract liabilities to assess benchmark curve changes), the accounting estimate change after add cent gives business life insurance and health insurance liability reserve funds amounted to 11.733 billion yuan for a long time, reduce the company’s total profits of 2020 total about 11.733 billion yuan.

In addition, the impact of income tax expenditure is not small. In 2020, the income tax expenditure of CPIC was 3.886 billion yuan, with a year-on-year increase of 1101.5%. This change is mainly affected by the policy of insurance enterprises’ pretax deduction ratio of commission and commission expenses. For example, the income tax of CPIC Life Insurance is 1.657 billion yuan in 2020, and the income tax expense recognized in 2018 is adjusted in 2019, so the number of the same period in 2019 is relatively low, so the year-on-year growth is substantial. Excluding the above factors, the income tax expense in 2020 decreased by 24.1% year on year.

It is worth noting that in 2020, CPIC Group achieved operating profit of 31.14 billion yuan, an increase of 11.7% year on year. Operating profit from net profit minus short-term investment fluctuations, the impact of changes in assessment assumptions and one-time major item adjustment income, is considered to be more able to reflect the real profit situation of insurance enterprises.

Life insurance new business value growth under pressure

In terms of specific business performance, the revenue of CPIC life insurance business was 211.952 billion yuan, down 0.3% year on year. The insurance premium income of CPIC was 147.734 billion yuan, up 11.1% year on year. Based on the original premium income, CPIC life insurance company and CPIC property insurance company are respectively the third largest life insurance company and the third largest property insurance company in China.

However, affected by the COVID-19 epidemic, the value of new business growth of CPIC Life Insurance is under pressure. Data show that in 2020, the value of new business of CPIC life insurance reached 17.841 billion yuan, down 27.5% year on year. The value of new business was 38.9 percent, down 4.4 percentage points year-on-year. Indicates that new business value growth remains under pressure.

In 2020, the revenue from individual customers of CPIC Life Insurance was 201.992 billion yuan, down 1.2% year on year. Among them, the revenue from new insurance business of the agent channel was 29.035 billion yuan, a year-on-year decrease of 26.7%; The revenue of the renewed business was 162.256 billion yuan, up 4.3% year on year. The agent channel accounted for 90.3 percent of the total insurance revenue, down 1.5 percentage points year on year. In 2020, the average monthly performance rate of the agent team is 57.8%, down 1.0pt year on year, and the monthly per capita income of insurance business in the first year is 3259 yuan, down 22.6% year on year.

According to CPIC, due to the COVID-19 epidemic, the traditional agent offline exhibition, recruitment and basic management model has been blocked. Next, China Pacific life insurance will uphold the socialist idea for a long time, grasping the main line of the high quality development, driven by the transformation of innovation, promoting “long-endurance action”, maintain the stable growth of new business value, maintain market position, promote the development of diversified channels, accelerate the construction of digital ability and raise the ecological sport, activate organization, activate the talent team, stick to the bottom line, the compliance risk build service experience the best life insurance companies, to do the life insurance industry for a long time.

However, in 2020, CPIC Life Insurance realized operating profit of 25.875 billion yuan, a year-on-year growth of 16.7%; The remaining marginal balance was 351.077 billion yuan, an increase of 6.5% over the end of the previous year. Residual margin reflects future profitability, which will be released year by year as a part of accounting reserve. Residual margin of long-term guarantee business is relatively large.

Not long ago, CPIC announced the appointment of Cai Qiang as the General Manager (CEO) of CPIC Life Insurance. Cai Qiang, the former regional CEO of AIA Group and CEO of AIA China, has management experience of both international and local insurance organizations. His successful joining is a great positive for the enhancement of channel operation strength of CPIC Life.

Data show that after several years of transformation and adjustment, this year the life insurance of CPIC shows a good momentum of development, the first month of the standard insurance increased by double digits compared with the same period last year, and the new insurance delivery scale is in the leading position among the six peers. How will the Taibao life insurance after Cai Qiang joins go, have imagination space very much.

In addition, from the perspective of health insurance business, in 2020, CPIC’s health insurance business and health management fee income will reach 6.818 billion yuan, an increase of 44.5% year on year, and net profit will reach 116 million yuan.

The proportion of non-auto insurance increased to 35.24%

From the performance of property insurance business, in 2020, CPIC property insurance business income of 147.734 billion yuan, a year-on-year growth of 11.1%; The comprehensive cost rate was 99.0%, up 0.7 percentage points year on year, in which the comprehensive loss rate was 61.4%, up 1.2 percentage points year on year, and the comprehensive expense ratio was 37.6%, down 0.5 percentage points year on year.

In 2020, the revenue of non-auto insurance business reached 52.064 billion yuan, with a year-on-year growth of 30.9%; The comprehensive cost rate was 101.9%, up 2.0 percentage points year on year. Among the major types of insurance, health insurance, liability insurance and agricultural insurance maintained rapid development, with year-on-year growth of 72.7%, 44.1% and 44.8%, respectively. Agricultural insurance market share rapid promotion.

From the perspective of premium structure, the proportion of auto insurance decreased from 70.1% at the end of 2019 to 64.76% at the end of 2020, and the proportion of non-auto insurance increased from 29.9% at the end of 2019 to 35.24% at the end of 2020.

CPIC said that in the next step, the property insurance will continue to innovate product supply, optimize service supporting, focus on emerging areas of business development, enhance the digital management level, comprehensively strengthen customer management ability; At the same time, we will continue to promote the construction of risk management and control system, strengthen the application of science and technology, further strengthen business quality control, and comprehensively promote the healthy and rapid development of non-auto insurance business.

The group has assets under management of RMB 2.44 trillion

By the end of December last year, CPIC Group’s assets under management were 2.44 trillion yuan, up 19.2 percent from the end of the previous year. Group investment assets 1.65 trillion yuan, an increase of 16.1% compared with the end of the previous year; Third party assets under management reached 788.073 billion yuan, up 26.3% from the end of the previous year; In 2020, the revenue from third-party management fees reached 2.385 billion yuan, up 46.8% year on year.

By the end of December 2020, CPIC bond investment accounted for 39.3% of its investment assets, down 3.3 percentage points compared with the end of the previous year. Among them, Treasury bonds, local government bonds and policy-related financial bonds accounted for 17.5% of the investment assets, up 1.3 percentage points from the end of the previous year, with an average duration of 16.4 years, up 1.2 years from the end of the previous year.

Equity assets accounted for 18.8% of the investment assets, up 3.1 percentage points compared with the end of the previous year, among which stocks and equity funds accounted for 10.2% of the investment assets, up 1.9 percentage points compared with the end of the previous year.

In 2020, the net investment income of CPIC reached 67.159 billion yuan, an increase of 9.6% year on year, mainly due to the growth of interest income from fixed interest investment. The net investment yield was 4.7%, down 0.2 percentage points from the same period last year. The total investment income was 83.997 billion yuan, up 25.4% year on year, mainly due to the increase in income from securities trading and interest income from fixed interest investment; The total investment yield was 5.9%, up 0.5 percentage points year on year.

It is also understood that in terms of long-term performance, from 2012 to 2020, the cumulative return rate of nine years of equity portfolio is 334%, and the annual net value growth rate is 17.7%. Compared with 365 funds in the same period, it is ranked in the top 30%, making an important contribution to the overall value improvement and sound management of China Pacific Insurance.

The layout of pension communities across the country was accelerated

In July 2018, China Pacific Insurance released the development plan for the medium and long term pension industry, which made clear that it would make full efforts in the pension investment field from the three aspects of investment development, operation service and insurance cooperation.

Pacific said, after three years of continuous efforts, China Pacific fell to the ground in chengdu, Dali, hangzhou, xiamen, nanjing, Shanghai dongtan, Shanghai putuo, wuhan and other eight endowment community projects, set up the remaining, kang, le “trinity, covering all age” of product system, put forward by the first three years of planning “south-north, hand in hand, national chain, covering all age” basic implementation of strategic tasks. At present, CPIC Home has invested in the community planning construction area of 938,000 square meters, 7,500 reserved rooms and more than 11,000 reserved beds, ranking the second in the insurance industry.

The continuous advancement of the national territory of “Taibao Home” old-age community also has an obvious promotion effect on the insurance industry. Through the comprehensive solution of “insurance products + pension community + professional services”, by the end of 2020, the CPIC has issued more than 10,000 letters of eligibility for residence in pension community.

It is reported that in the just held board of directors, around the new development concept, China Pacific started the relevant top-level design. On the basis of the original board of directors, the “strategic and investment decision-making and ESG committee” was reorganized. The company will reference international and domestic excellent practices, fully integrate the concept of sustainable development into business links, from the environment, society, governance and other fields, to help the company to achieve high-quality development.

On the afternoon of March 28, China Pacific Insurance Co., Ltd. released its 2020 Annual Report, which is the first annual report since China Pacific Insurance Co., Ltd. completed the issuance of GPR and landed on the London Stock Exchange in June 2020.

Data show that in 2020, CPIC Group achieved operating income of 422.182 billion yuan, among which the insurance business income of 362.064 billion yuan, a year-on-year growth of 4.2%; Net profit attributable to the parent reached 24.584 billion yuan, down 11.4% year on year; The group’s operating profit was 31.14 billion yuan, up 11.7% year on year. Proposed dividend of 1.3 yuan per share, up 8.3% from 2019.

By the end of 2020, the total assets of the CPIC Group were 1.77 trillion yuan, an increase of 15.9% compared with the end of 2019. The number of customers of the Group is 147 million, an increase of 8.91 million compared with the end of last year. The equivalent of one in 10 Chinese is a CPO customer.

Net income fell 11.4 per cent and operating profit rose 11.7 per cent

In 2020, CPIC Group’s net profit attributable to its parent reached 24.584 billion yuan, a year-on-year decrease of 11.4%. Among them, the net profit of CPIC life insurance was 18.642 billion yuan, a year-on-year decrease of 9.2%; The net profit of CPIC property insurance was 5.209 billion yuan, down 11.9 percent year on year.

The change of accounting estimate is an important factor that leads to the decrease of net profit. According to the announcement, the company on December 31, according to the current information to the related assumptions have been adjusted (mainly the discount rate of the insurance contract liabilities to assess benchmark curve changes), the accounting estimate change after add cent gives business life insurance and health insurance liability reserve funds amounted to 11.733 billion yuan for a long time, reduce the company’s total profits of 2020 total about 11.733 billion yuan.

In addition, the impact of income tax expenditure is not small. In 2020, the income tax expenditure of CPIC was 3.886 billion yuan, with a year-on-year increase of 1101.5%. This change is mainly affected by the policy of insurance enterprises’ pretax deduction ratio of commission and commission expenses. For example, the income tax of CPIC Life Insurance is 1.657 billion yuan in 2020, and the income tax expense recognized in 2018 is adjusted in 2019, so the number of the same period in 2019 is relatively low, so the year-on-year growth is substantial. Excluding the above factors, the income tax expense in 2020 decreased by 24.1% year on year.

It is worth noting that in 2020, CPIC Group achieved operating profit of 31.14 billion yuan, an increase of 11.7% year on year. Operating profit from net profit minus short-term investment fluctuations, the impact of changes in assessment assumptions and one-time major item adjustment income, is considered to be more able to reflect the real profit situation of insurance enterprises.

Life insurance new business value growth under pressure

In terms of specific business performance, the revenue of CPIC life insurance business was 211.952 billion yuan, down 0.3% year on year. The insurance premium income of CPIC was 147.734 billion yuan, up 11.1% year on year. Based on the original premium income, CPIC life insurance company and CPIC property insurance company are respectively the third largest life insurance company and the third largest property insurance company in China.

However, affected by the COVID-19 epidemic, the value of new business growth of CPIC Life Insurance is under pressure. Data show that in 2020, the value of new business of CPIC life insurance reached 17.841 billion yuan, down 27.5% year on year. The value of new business was 38.9 percent, down 4.4 percentage points year-on-year. Indicates that new business value growth remains under pressure.

In 2020, the revenue from individual customers of CPIC Life Insurance was 201.992 billion yuan, down 1.2% year on year. Among them, the revenue from new insurance business of the agent channel was 29.035 billion yuan, a year-on-year decrease of 26.7%; The revenue of the renewed business was 162.256 billion yuan, up 4.3% year on year. The agent channel accounted for 90.3 percent of the total insurance revenue, down 1.5 percentage points year on year. In 2020, the average monthly performance rate of the agent team is 57.8%, down 1.0pt year on year, and the monthly per capita income of insurance business in the first year is 3259 yuan, down 22.6% year on year.

According to CPIC, due to the COVID-19 epidemic, the traditional agent offline exhibition, recruitment and basic management model has been blocked. Next, China Pacific life insurance will uphold the socialist idea for a long time, grasping the main line of the high quality development, driven by the transformation of innovation, promoting “long-endurance action”, maintain the stable growth of new business value, maintain market position, promote the development of diversified channels, accelerate the construction of digital ability and raise the ecological sport, activate organization, activate the talent team, stick to the bottom line, the compliance risk build service experience the best life insurance companies, to do the life insurance industry for a long time.

However, in 2020, CPIC Life Insurance realized operating profit of 25.875 billion yuan, a year-on-year growth of 16.7%; The remaining marginal balance was 351.077 billion yuan, an increase of 6.5% over the end of the previous year. Residual margin reflects future profitability, which will be released year by year as a part of accounting reserve. Residual margin of long-term guarantee business is relatively large.

Not long ago, CPIC announced the appointment of Cai Qiang as the General Manager (CEO) of CPIC Life Insurance. Cai Qiang, the former regional CEO of AIA Group and CEO of AIA China, has management experience of both international and local insurance organizations. His successful joining is a great positive for the enhancement of channel operation strength of CPIC Life.

Data show that after several years of transformation and adjustment, this year the life insurance of CPIC shows a good momentum of development, the first month of the standard insurance increased by double digits compared with the same period last year, and the new insurance delivery scale is in the leading position among the six peers. How will the Taibao life insurance after Cai Qiang joins go, have imagination space very much.

In addition, from the perspective of health insurance business, in 2020, CPIC’s health insurance business and health management fee income will reach 6.818 billion yuan, an increase of 44.5% year on year, and net profit will reach 116 million yuan.

The proportion of non-auto insurance increased to 35.24%

From the performance of property insurance business, in 2020, CPIC property insurance business income of 147.734 billion yuan, a year-on-year growth of 11.1%; The comprehensive cost rate was 99.0%, up 0.7 percentage points year on year, in which the comprehensive loss rate was 61.4%, up 1.2 percentage points year on year, and the comprehensive expense ratio was 37.6%, down 0.5 percentage points year on year.

In 2020, the revenue of non-auto insurance business reached 52.064 billion yuan, with a year-on-year growth of 30.9%; The comprehensive cost rate was 101.9%, up 2.0 percentage points year on year. Among the major types of insurance, health insurance, liability insurance and agricultural insurance maintained rapid development, with year-on-year growth of 72.7%, 44.1% and 44.8%, respectively. Agricultural insurance market share rapid promotion.

From the perspective of premium structure, the proportion of auto insurance decreased from 70.1% at the end of 2019 to 64.76% at the end of 2020, and the proportion of non-auto insurance increased from 29.9% at the end of 2019 to 35.24% at the end of 2020.

CPIC said that in the next step, the property insurance will continue to innovate product supply, optimize service supporting, focus on emerging areas of business development, enhance the digital management level, comprehensively strengthen customer management ability; At the same time, we will continue to promote the construction of risk management and control system, strengthen the application of science and technology, further strengthen business quality control, and comprehensively promote the healthy and rapid development of non-auto insurance business.

The group has assets under management of RMB 2.44 trillion

By the end of December last year, CPIC Group’s assets under management were 2.44 trillion yuan, up 19.2 percent from the end of the previous year. Group investment assets 1.65 trillion yuan, an increase of 16.1% compared with the end of the previous year; Third party assets under management reached 788.073 billion yuan, up 26.3% from the end of the previous year; In 2020, the revenue from third-party management fees reached 2.385 billion yuan, up 46.8% year on year.

By the end of December 2020, CPIC bond investment accounted for 39.3% of its investment assets, down 3.3 percentage points compared with the end of the previous year. Among them, Treasury bonds, local government bonds and policy-related financial bonds accounted for 17.5% of the investment assets, up 1.3 percentage points from the end of the previous year, with an average duration of 16.4 years, up 1.2 years from the end of the previous year.

Equity assets accounted for 18.8% of the investment assets, up 3.1 percentage points compared with the end of the previous year, among which stocks and equity funds accounted for 10.2% of the investment assets, up 1.9 percentage points compared with the end of the previous year.

In 2020, the net investment income of CPIC reached 67.159 billion yuan, an increase of 9.6% year on year, mainly due to the growth of interest income from fixed interest investment. The net investment yield was 4.7%, down 0.2 percentage points from the same period last year. The total investment income was 83.997 billion yuan, up 25.4% year on year, mainly due to the increase in income from securities trading and interest income from fixed interest investment; The total investment yield was 5.9%, up 0.5 percentage points year on year.

It is also understood that in terms of long-term performance, from 2012 to 2020, the cumulative return rate of nine years of equity portfolio is 334%, and the annual net value growth rate is 17.7%. Compared with 365 funds in the same period, it is ranked in the top 30%, making an important contribution to the overall value improvement and sound management of China Pacific Insurance.

The layout of pension communities across the country was accelerated

In July 2018, China Pacific Insurance released the development plan for the medium and long term pension industry, which made clear that it would make full efforts in the pension investment field from the three aspects of investment development, operation service and insurance cooperation.

Pacific said, after three years of continuous efforts, China Pacific fell to the ground in chengdu, Dali, hangzhou, xiamen, nanjing, Shanghai dongtan, Shanghai putuo, wuhan and other eight endowment community projects, set up the remaining, kang, le “trinity, covering all age” of product system, put forward by the first three years of planning “south-north, hand in hand, national chain, covering all age” basic implementation of strategic tasks. At present, CPIC Home has invested in the community planning construction area of 938,000 square meters, 7,500 reserved rooms and more than 11,000 reserved beds, ranking the second in the insurance industry.

The continuous advancement of the national territory of “Taibao Home” old-age community also has an obvious promotion effect on the insurance industry. Through the comprehensive solution of “insurance products + pension community + professional services”, by the end of 2020, the CPIC has issued more than 10,000 letters of eligibility for residence in pension community.

It is reported that in the just held board of directors, around the new development concept, China Pacific started the relevant top-level design. On the basis of the original board of directors, the “strategic and investment decision-making and ESG committee” was reorganized. The company will reference international and domestic excellent practices, fully integrate the concept of sustainable development into business links, from the environment, society, governance and other fields, to help the company to achieve high-quality development.

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll Up