Recently, PICC, China Life, Ping An, China Taibao, Xinhua Insurance five listed insurers have disclosed the first half of 2021 "report card". Looking at this report card, there are highlights and challenges, there are new growth points and reform pains. The data from the five major insurance companies reflect the development process of the industry, and the insurance industry is in the process of reform and innovation to explore the road of high-quality development.
The main performance indicators are rising steadily, and the net profit growth is mainly due to the increase in investment income
The half-yearly report shows that in the first half of the year, A-share A five listed insurers realized a total operating income of 1886,562,000,000 yuan, a year-on-year increase of 4.34%. Among them, Ping An of China topped the operating income, continue to maintain the leading edge; the fastest growth rate of Xinhua Insurance, continue to maintain double-digit growth.
Net profit, the first half of the five major listed insurers total net profit reached 143.714 billion yuan, up 7.03% year-on-year, an average of 787 million yuan of net income per day. From the total amount, Ping An of China realized net profit of 58.005 billion yuan in the first half of the year, ranking first among the five major insurers. From the growth rate, Ping An of China by the investment assets related to Huaxia Happiness impairment and valuation and other adjustments, the net attributable profit evaporated 20.8 billion yuan, resulting in the first half of the net attributable profit fell 15.5% year-on-year, the other four A-share listed insurers have shown a year-on-year more than 20% rise in net profit. Among them, China Life's net attributable profit growth rate is the fastest, up 34.19% year-on-year, PICC, NICC, PICC net attributable profit also realized substantial growth, year-on-year increase of 34%, 28.3%, 21.5%, respectively.
For the insurance industry's operations, we tend to look at two aspects. One is the liability side, and the other is the investment side, in which the liability side that the insurance company sells policies to obtain premiums, and the investment side that the insurance company uses the premiums to invest to obtain investment income.
In the first half of the year, the net profit increase is mainly due to the increase in investment income. Half-yearly report shows that the five major listed insurers together realized total investment income of 299.514 billion yuan. Among them, China Life has the highest total investment income, amounting to 117.638 billion yuan, an increase of 22.4% year-on-year; New China Insurance has the fastest growth rate in total investment income, up 48.1% year-on-year to 31.12 billion yuan, and the total investment return rate increased by 1.4 percentage points year-on-year.
Specifically, bond investment is still the major insurance "ballast", the first half of the allocation ratio is generally around 40%: PICC, China Life, Ping An, China Tai Insurance bond investment accounted for 40.2%, 44.23%, 49.6%, 39.3%. The proportion of equity investment allocations such as stocks and funds declined slightly.
Another factor that pushed up net profit was fee and commission expenses. As a result of business restructuring, the decline in scale premiums, and the combined effect of the comprehensive reform of auto insurance, the fee and commission expenses of the five insurance companies showed a downward trend.
Look at the liability side, insurance income increased steadily. In the first half of this year, five A-share listed insurers together realized insurance business income of 1,534,054,000,000 yuan, a year-on-year increase of 0.71%. China Life, Taipao Life Insurance, Xinhua Insurance earned premiums of 442.642 billion yuan, 133.700 billion yuan, 99.182 billion yuan, year-on-year growth rate of 3.6%, 2.46%, 4.6%.
Insurance and investment are the twin wheels that drive the development of insurance companies. For the first half of the investment side of the contribution to the profit of insurance companies than the business side, the industry said that insurance companies through insurance to obtain funds, and then through investment to obtain profits is a common phenomenon, but also the inevitable development of the industry.
Life insurance business is under pressure, the transformation is difficult but beginning to see results
There is no lack of challenges in the highlights, the business end of the A-share listed insurers, especially the life insurance business is under pressure, the value of new business of the insurer's new single sales capacity, the new business value of the life insurance are showing a decline in the new business. Five insurers*** realized new business value of 74.698 billion yuan, down 15.04%. China Taicao's new business value fell by 8.9% year-on-year, a relatively small drop; the other four showed double-digit drops.
The decline in VONB is affected by a number of factors, including the decline in new policy premiums, changes in premium structure, and the decline in the VONB rate. For example, China Life, which is listed as a life insurance company, reported new policy premiums of 133.914 billion yuan in the first half of the year, down 8.4% year-on-year.
Life insurance business is under pressure for a variety of reasons, industry insiders said, by the epidemic after the uncertainty of the domestic and international economic situation, the protection of the business slowdown in consumer spending, the beginning of the year, the old and new critical illnesses switch brought about by the sales of the high point of the customer demand for early consumption has also resulted in a decline in new single premiums, at the same time, the popularity of the popularity of universal insurance, such as Huimin insurance, there is a certain degree of crowding-out effect on commercial insurance products.
The more important reason is that the life insurance industry is experiencing transition pains.2021 In the first half of the year, the number of insurance agents across the industry fell by more than 20% year-on-year. With the acceleration of the regulatory standardization of insurance agents, the demographic dividend receding, customer demand changes, the traditional "sea of people" type of crude life insurance marketing model is unsustainable, streamlining the team, improve the quality of the agent and the output of the reform is imperative.
In the first half of the year, life insurance companies are also taking the initiative to adjust the team structure, accelerate the "virtual" quality. China Life has implemented the agent team construction 4.0 system to promote the sales team to specialization, professionalization and deep transformation; NWS insurance emphasizes team rejuvenation, specialization, urbanization, to provide customers with the whole process of service, and to strengthen the training; PICC life insurance to strengthen the construction of the sales team, improve the quality of the sales team, and grow the high-performance sales team.
Ping An life insurance, which began its reform in 2019, has entered the comprehensive promotion and implementation stage of the reform in the first half of this year. The reform measures include reconstructing the evaluation system, establishing evaluation standards covering multiple indicators, implementing differentiated team management, vigorously cultivating the diamond team, steadily improving the potential team, and developing quality newcomers. In addition to the agent channel, Ping An also innovatively promotes the three major channels of community grids, new bancassurance and part-time teams.2021 The interim report shows that the number of Ping An agents in China is 877,700, compared with the number of agents in 2019, a decline of 433,300 people.
"The reform of the entire life insurance agent channel is very difficult, and what needs to be changed is hundreds of thousands of people." Ping An of China co-CEO Chen Xinying said at the interim results conference that it will take at least three years for the agent force to shift from a large entry and exit to a high-quality, high-productivity, high-income in-depth reform.
However, some of the results of the reform have already been revealed in the half-year report. For example, the monthly per capita first-year insurance business income of 5,918 yuan per agent of China Taicao, up 41.5% year-on-year; monthly per capita first-year commission income of 986 yuan, up 15.1% year-on-year; Ping An of China's life insurance agents per capita first-year premiums increased by 23.8% year-on-year, reaching 9,350 yuan per month. Meanwhile, the per capita new business value of agents reached 25,200 RMB, up 0.7% year-on-year.
Digitalization helps transformation and upgrading, and technology drives the high-quality development of insurance enterprises
PICC has built an intelligent digital marketing platform of "intelligent outbound call + intelligent voice analysis + precision marketing", which empowers telemarketing, and the average underwriting success rate has increased by more than 40%;
Ping An life insurance agent per capita increased by 23.8% year-on-year, reaching RMB 93,000 per month.
PICC has upgraded its app, with a 27% year-on-year increase in the number of registered users, and its life insurance app has gained more than 100 million registered users;
PICC has formulated a unified data management policy, established a multilevel data governance organizational structure for the group and its subsidiaries, and set up the Institute of Digital and Intelligence to form professional teams in six major fields, such as big data, AI, security, internet operation, cloud computing, and blockchain. The company also established the Digital Intelligence Research Institute and set up professional teams in six major fields, including big data, AI, security, Internet operation, cloud computing and blockchain.
From the front-end sales to the middle and back-end underwriting claims, from the insurance business to financial services, half-yearly report, the major insurance companies have to show the new dynamics of science and technology to fully enable the development of the industry. And, technology has become an important engine of high-quality development of insurance companies in the first half of the year.
Technology promotes the transformation and upgrading of the industry. "Digital reform helps insurance agents to improve their income." Chen Xinying said that after 6-9 months of Ping An's digital reform, the per capita production capacity of agents will increase by 30%, and the number of visits and pieces will increase by 1.4-1.5 times.
Technology brings new profit growth. The fastest to achieve 1 second lending, micro-expression technology-enabled credit business to reduce credit losses by 33%, AI collection of overdue loans amounted to 96% year-on-year growth ...... "Behind this is the system approvals, modeling data play a key role." Xie Yonglin, general manager and co-CEO of Ping An of China, said at the interim results conference. The interim report shows that in the first half of 2021, Ping An of China's technology business total revenue of 48.809 billion yuan, an increase of 14.2% year-on-year, and the contribution of attributable operating profit reached 6.23 billion yuan, the technology business of the asset size is small, but the contribution of revenue and profit accounted for 7.7% and 8.5%, respectively.
Insurance companies have said that in the future, they will continue to increase investment in science and technology in terms of strategy, organization, management, operation, talent, service, etc., accelerate the pace of comprehensive digitalization, and achieve systematic changes in the mode of thinking and industrial practice.
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