Author | Xie Mei bath
Edit | Fu Ying
Source | Unicorn Finance
Cai Qiang, the "strongest external brain" who had high hopes, officially left China Pacific Life Insurance Co., Ltd. (hereinafter referred to as "CPIC Life Insurance").
Recently, CPIC Life Insurance announced that Cai Qiang no longer serves as the general manager (CEO) of the company. During the vacancy of the general manager of the company, Pan Yanhong, chairman of the board of directors, was designated as the temporary person in charge and acted as the general manager.
CPIC (601601. SH, 2601.HK) At the 2023 financial report conference, Fu Fan, chairman of the company, said that the selection and appointment of the company's new management will continue to uphold the principle of professionalism and marketization, and if there is further news, it will maintain communication with you in a timely manner.
According to the self-media "Guanchao Finance", industry insiders revealed that CPIC Life Insurance has determined the new general manager, and Cai Qiang's next stop may be to a foreign-funded insurance company.
The transformation has achieved initial results, but the "trader" Cai Qiang chose to leave. At this time, CPIC Life Insurance is also facing an investment loss of 4.445 billion yuan and a large fine, and the pressure on the road ahead is not small.
1
Optimize 539,000 marketers in four years,
The "strongest external brain" left office
The management of CPIC attaches great importance to the selection of the general manager of CPIC Life. According to the Shanghai Securities News, CPIC proposed to find industry leaders with an international vision to promote and fully implement CPIC Life's "Long Voyage Action".
On March 26, 2021, CPIC disclosed an announcement on the change of chairman and general manager of its holding subsidiary, and Cai Qiang was nominated as a director of CPIC Life and appointed as the general manager of CPIC Life. It is worth mentioning that in the month of Cai Qiang's appointment, the high point of CPIC's A-share share price reached 41.5 yuan per share, which is also the highest stock price of CPIC since its listing.
Source: Canned Gallery
So far, as the "strongest brain" of CPIC Life Insurance, Cai Qiang's three-year term has expired. The reason why Cai Qiang is pinned on high hopes is based on his rich experience in foreign insurance companies.
After graduating from university in 1991, Cai Qiang crossed the ocean and joined AXA Insurance Group (USA) in France, working his way up from individual insurance salesman to regional director. In 2003, Cai Qiang was appointed General Manager of Individual Insurance of AXA Insurance Group (Hong Kong) and was promoted to Chief Executive Officer in 2007.
CPIC's choice of Cai Qiang to promote the transformation of life insurance may be more due to the fact that he has led AIA China to a successful transformation.
In 2002, AIA set up a CEO in China for the first time, and the position changed frequently, five times in seven years, but Cai Qiang, as the fifth CEO of AIA China, reigned for 8 years. After taking office, Cai Qiang has formulated two five-year plans to actively promote the channel transformation of AIA China.
In the year when Cai Qiang took the helm of CPIC Life Insurance, the company also officially released the five-year "Long Voyage Action" transformation plan, clearly putting forward the future strategic goals of "one excellent, two stable, and four new". Cai Qiang once said: "The core of Changhang's transformation lies in shifting from being driven by 'human dividends' to 'talent dividends'. "This coincides with AIA China's transformation strategy.
Under the guidance of the "Long Voyage Action", CPIC Life began to build a team of agents with "three modernizations and five most". From the end of 2020 to 2023, the average monthly insurance marketers of CPIC Life Insurance were 749,000, 525,000, 279,000 and 210,000 respectively, an improvement of 539,000 in four years.
Source: Canned Gallery
In 2021, the average first-year insurance business income per capita of CPIC life insurance agents was RMB4,638, a year-on-year increase of 42.3%, in 2022, the average first-year insurance business income per capita was RMB6,844, an increase of 47.6% year-on-year, and in 2023, the average first-year premium per capita per capita of insurance marketers was RMB12,800, an increase of 51.8% year-on-year.
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The results of the three-year transformation have been revealed, and new business has been under pressure
According to CPIC's annual report, CPIC Life Insurance has gradually achieved results in its transformation: first, it has built a "core" model for individual business, and its core manpower capacity and income have increased year-on-year; second, it has effectively implemented a multi-channel strategy, and the new insurance revenue of the bancassurance channel has increased significantly; third, it has upgraded the Golden Triangle system and improved the supply capacity of "products + services" around the health, wealth and pension needs of customers.
Source: Canned Gallery
Cai Qiang, as the general manager of CPIC Life Insurance, once said in an interview with China Insurer: "From the perspective of competition in any industry, in the end, it is a competition of efficiency. For the insurance industry, efficiency competition is reflected in the value of new business. ”
However, CPIC Life's new business value growth continued to come under pressure. In 2021, CPIC Life's new business value was RMB13.412 billion, down 24.8% year-on-year, while the new business value ratio was 23.5%, down 15.4 percentage points year-on-year, and RMB9.205 billion in 2022, down 31.4% year-on-year. The new business value ratio was 11.6%, down 11.9 percentage points year-on-year.
By 2023, CPIC Life will achieve a new business value of RMB10.962 billion, a year-on-year increase of 19.1%, and a new business value ratio of 13.3%, an increase of 1.7 percentage points year-on-year. This is an increase from 2022, but it is still a decline compared to 2021.
CPIC has said that in the face of the sluggish growth of new business value of life insurance, it has established a multi-channel layout with agent channels as the core to grasp the development opportunities of bancassurance customers.
In 2023, CPIC Life Insurance Agency achieved a scale premium of RMB195.478 billion, a year-on-year increase of 3.0%, of which the new premium of regular payment was RMB26.175 billion, a year-on-year increase of 32.3%.
The bancassurance channel achieved a year-on-year increase of 12.5% in premiums of RMB38.069 billion, of which the premiums of new insurance paid in the medium term amounted to RMB9.024 billion, a year-on-year increase of 170.2%, and the value of new business increased by 115.6% year-on-year.
The large-scale premium of the group administration channel was 18.096 billion yuan, of which the premium of the new insurance of the vocational group was 1.19 billion yuan, a year-on-year increase of 273.4%.
Source: CPIC Annual Report
In 2023, CPIC's life insurance premiums will be RMB252.817 billion, up 3.2% year-on-year, of which new insurance will increase by 3.7% year-on-year, life insurance operating profit will be RMB27.257 billion, up 0.4% year-on-year, and the marginal balance of contract services will be RMB323.974 billion, down 0.8% from the end of the previous year.
At the 2023 results briefing, Pan Yanhong, chairman of CPIC Life, said that in the second half of 2023, with the strong support of the group, life insurance companies implemented the largest and most extensive organizational changes in history.
After the first phase of the "Long Voyage Operation" ended in June last year, CPIC Life announced the start of the second phase of the project in July, Pan Yanhong said, "The core theme of the second phase is to focus on the transformation of the back office, take organizational change as the guide, build an enabling headquarters and operating organization, change the work mode and thinking mode of the back office, and continue to release the company's production efficiency and effectiveness." ”
3
The investment loss was 4.4 billion,
Is life insurance holding China Pacific back?
In 2023, CPIC's revenue and net profit both declined, achieving operating income of RMB323.945 billion, down 2.5% year-on-year, net profit of RMB27.257 billion, down 27.1% year-on-year, and total investment return from 4.1% to 2.6%.
As one of the cornerstones of CPIC's performance, CPIC Life Insurance's performance is also declining at a time of transformation. In 2023, CPIC Life Insurance contributed 85.461 billion yuan in insurance service revenue, down 3.5% year-on-year, and net profit attributable to the parent company decreased 33.7% year-on-year to 19.532 billion yuan.
Source: CPIC Annual Report
The decline in CPIC Life's insurance service revenue was mainly due to the decline in the scale of short-term insurance premiums, while the marginal amortization of contracted services in 2023 decreased due to the decrease in capital market volatility in 2022.
The decline in net profit was affected by the loss of the investment side. As of the end of 2023, the total investment income of CPIC Life Insurance was 36.708 billion yuan, a sharp decrease of 40.6% year-on-year, and the investment loss was 4.445 billion yuan, a year-on-year decrease of 185.9%, and the investment income of CPIC Life Insurance in 2022 was 5.176 billion yuan.
Source: Canned Gallery
At present, CPIC Life holds shares in 42 listed companies, including Emeishan A (000888.SZ), China Merchants Shipping (601872. SH), Jiuhua Tourism (603199. SH) has performed well, with its share price up more than 30% so far this year.
However, CPIC Life's holdings of Baili Technology (603959. SH), Central Hailu (301040. SZ), Fivoltai (688371. SH), Xinqianglian (300850. SZ), Mingyang Intelligent (601615. SH) shares fell more than 30%. According to the third quarter report of Baili Technology in the third quarter of 2023, CPIC Life Insurance is its third largest shareholder, with a shareholding ratio of 1.46%.
Source: Wind data
Baili Technology is a technical service provider dedicated to providing overall solutions for the construction of smart factories in the field of energy and materials, mainly serving the oil and gas, petrochemical, modern coal chemical and new energy materials industries. The company was listed on the Shanghai Stock Exchange in May 2016.
On January 6, the company's shares held by the controlling shareholder of Baili Technology were frozen by the Beijing No. 1 Intermediate People's Court, and 100% of the shares held by the company were frozen, accounting for 29.8% of the company's shares; on February 19, Wang Hairong, the actual controller, chairman and president of Baili Technology, needed to assist the relevant departments in the investigation due to personal reasons, and was temporarily unable to perform his duties normally.
In addition, according to Zhonghuan Hailu's 2023 annual report, CPIC Life Insurance is its sixth largest shareholder, with a shareholding ratio of 1.22%. Zhonghuan Hailu is mainly engaged in the research and development, production and sales of industrial metal forgings, which are mainly used in wind power, construction machinery, mining machinery, nuclear power and other industries. In 2023, Zhonghuan Hailu's revenue will be 625 million yuan, a year-on-year decrease of 40.04%, and the loss will be 32.1904 million yuan, a year-on-year decrease of 181.12%.
The stock market is impermanent, and the stocks invested by CPIC Life Insurance have risen and fallen this year, and it is difficult to predict profits and losses. On the other hand, CPIC Life Insurance has received at least two fines this year.
On February 20, CPIC Life Guizhou Branch was fined RMB 410,000 for imprudent operation of individual insurance channels, weak internal control, and misleading product promotion and sales, and in November 2023, CPIC Life Nanyang Branch was fined RMB 390,000.
As of the close of trading on April 24, the share price of CPIC A shares was 24.76 yuan per share, which was 40% lower than the high point of Cai Qiang's stock price in the month when he took office.
Do you think that after Cai Qiang's departure, will the transformation of CPIC Life Insurance be affected?