Strictly adhere to the bottom line of safe development Guohua Life Insurance continues to develop steadily

On the evening of April 29, Tianmao Group, the controlling shareholder of Guohua Life, released its 2023 annual report. Relevant financial data show that as of December 31, 2023, Guohua Life Insurance achieved original insurance premium income of 40.026 billion yuan, a year-on-year increase of 6.88%.

In 2023, Guohua Life's operating income will be 49.800 billion yuan, and its net profit will decline, but from the perspective of long-term and steady development, its business structure optimization will be steadily advanced, its value business will develop well, and it will continue to move towards a mature insurance company.

The operation continued to be stable and the structural optimization was steadily advanced

On the one hand, with the steady progress of the economy, the continuous improvement of residents' disposable income and health awareness, and the intensification of aging, the life insurance industry has ushered in new development opportunities. At the same time, the demographic dividend is decreasing, the capital market is volatile, and interest rates are falling, and the development and profitability of the life insurance industry are facing certain uncertainties. How to find the right strategic positioning, seize market opportunities, and seek transformation and innovation is the key for life insurance companies to achieve long-term value growth.

From the data of the annual report, it can be seen that Guohua Life Insurance has firmly established the overall business development idea of transformation and development, highlighting value growth, comprehensively improving capabilities, moving towards a mature insurance company, and helping common prosperity, and has achieved results in the context of coordinating development and security. In 2023, Guohua Life's total total premiums will be RMB47.831 billion, including RMB27.540 billion for new policies and RMB20.291 billion for renewals, with RMB18.870 billion in single premiums and RMB8.670 billion in term premiums according to the payment structure.

Judging from the data, Guohua Life's operation has remained stable, the optimization of its business structure has been steadily promoted, and it has maintained a good strategic focus:

First, the value business has developed well. In 2023, Guohua Life Insurance actively controlled the scale of its single payment business and actively promoted the development of its value business, with the medium and long-term value business of new single premiums in the bancassurance channel, the main channel, reaching RMB7 billion, showing year-on-year growth under the influence of lower pricing rates and product switching.

Second, the business structure continues to be optimized. In 2023, Guohua Life's renewal premiums will be RMB20.291 billion, up 27% year-on-year, accounting for 42% of the total premiums, up from 35% last year, and the new single premiums paid by the main bancassurance channel will be RMB8.2 billion, up 31% year-on-year.

Third, the value of new services has been effectively enhanced. In 2023, Guohua Life Insurance will firmly implement the "integration of newspaper and bank", prudently formulate product strategies, and strengthen cost control. Through continuous optimization of business structure, expense control, and continuous optimization of debt costs, the new business value ratio has been significantly improved.

Fourth, continue to make efforts in pension finance. Guohua Life Insurance has developed selected pension insurance products, created a comprehensive pension ecosystem of "protection + service", launched the first "Heyuejia" pension brand, opened the first flagship health care community experience center, and continued to make efforts in pension finance.

Five core competitiveness Long-term sustainable development

It is understood that since its establishment, Guohua Life Insurance has scientifically grasped the rules of life insurance operation, operated in compliance with regulations, developed steadily, and explored a healthy development path in line with its own characteristics. After years of professional development and accumulation, it has completed the layout of the institutional network covering the main markets of the country. By the end of 2023, Guohua Life will have a total of 111 branches, including 18 branches, covering the central and eastern regions of China and major provinces with major premiums.

Earlier, Guohua Life Insurance put forward the "13210 Development Strategy", which includes adhering to the guidance of party building, strengthening safe development, comprehensively improving capabilities, and continuing to promote high-quality development. From the latest annual report information, it can be seen that in addition to the steady development foundation created for it by long-term operation, Guohua Life Insurance also has five core competitiveness.

First, the governance structure is sound and the management team is stable. In 2019, Guohua Life Insurance introduced three state-owned shareholders to become a mixed-ownership company led by private ownership, controlled by listed companies and participated by state-owned assets, which further optimized the corporate governance structure and enhanced the company's capital strength and market brand. Guohua Life has a professional and stable senior management team, which has laid a good foundation for maintaining strategic focus and long-term sustainable and healthy development.

Second, the operation is sustained and steady, focusing on value development. After years of development, Guohua Life Insurance has established a stable business platform, continued to develop steadily, actively controlled the single-payment scale business, continued to optimize the business structure, deeply cultivated the development of value business, achieved effective improvement of the value rate of new business, and firmly followed the path of high-quality and sustainable development.

The third is the deepening of channel cooperation and the upgrading of customer service. Guohua Life's bancassurance channel adheres to value transformation, firmly implements various regulatory policies, deepens channel cooperation, and comprehensively empowers Guohua Bancassurance to enhance its professional competitiveness. The Internet channel continued to deepen customer service and effectively strengthened sales and channel management. Deepen cooperation with differentiated products, optimize business quality, and build a diversified channel layout. At the same time, Guohua Life has accelerated the application of science and technology, continuously upgraded the existing processes, strengthened the protection of consumer rights and interests, and continued to improve customer service capabilities.

The fourth is to return to the origin of insurance and create an ecosystem of "insurance + health care". Guohua Life Insurance has always adhered to the origin of life insurance, adhered to the concept of "insurance surname protection, insurance for the people", and played its role as an economic shock absorber and social stabilizer. We will continue to improve the layout of the health care industry, promote the coordinated development of the insurance and pension industries, and create an "insurance + health care" ecosystem. Guohua's health care brand "Heyuejia" will be officially released to the public in 2023, and its first flagship health care community experience center will be officially opened.

Fifth, the digital strategy continues to improve. Guohua Life Insurance has further enhanced the company's digital construction and security capabilities by strengthening the top-level design and establishing a long-term management mechanism, and refined and improved the digital strategy, that is, under the premise of autonomy and controllability, it gives priority to information and innovation, strengthens the digital leading strategy, and implements the digital strategic goal of "Digital Guohua";

It is reported that in accordance with the "14th Five-Year Plan" and the outline of the long-term goals for 2035, Guohua Life will base itself on the new stage of development, implement the new development concept, build a new development pattern, adhere to the guidance of party building, follow the premise of risk orientation, compliance bottom line and safe development, and take liability optimization and asset enhancement as the focus and main direction of work in the new stage, so as to comprehensively improve its capabilities. We will continue to strengthen the application of new technologies and talent reserves, improve the company's operation and management system, comprehensively enhance the company's operating capabilities, and promote the company to move forward into a mature life insurance company with moderate scale, reasonable structure, excellent quality, outstanding efficiency, modern management, continuous innovation and outstanding brand.