"Investor's Network" Cui Yuechen
In 2023, the insurance industry will recover significantly.
Specifically, seven A-share and H-share listed insurance companies Chinese Life, Ping An of China, Chinese People's Insurance Company, China Pacific Insurance, Xinhua Insurance, Zhongan Online, and Guohua Life Insurance under Tianmao Group achieved a total premium income of 2.76 trillion yuan, an increase of 5.41% from 2.62 trillion yuan in 2022.
Among them, Ping An of China leads the industry with an annual premium scale of 800.695 billion yuan, followed by Chinese Insurance and Chinese Life, with premium income of 661.649 billion yuan and 641.5 billion yuan in 2023, an increase of 6.86% and 4.28% respectively.
It is worth mentioning that the performance of non-listed insurance companies is also outstanding, with a total of 1.04 trillion yuan of insurance business income in 2023, a year-on-year increase of 14.29%. However, due to factors such as falling interest rates and continued capital market shocks, the overall profits of non-listed insurance companies showed signs of decline, with a total net profit loss of 14.2 billion yuan in 2023, a decrease of 18.4 billion yuan from last year.
Life insurance business out of the "cold winter"
As the core business of listed insurance companies, the premium income of life insurance business will achieve positive growth in 2023, coming out of the "cold winter" of declining premium income in 2022.
Specific to each company, Chinese Life, Ping An Life, Taibao Life, Xinhua Insurance, Life Insurance and Guohua Life achieved a total premium income of 1.72 trillion yuan in 2023, a year-on-year increase of 4.99%.
Among them, Chinese Life achieved premium income of 641.5 billion yuan, a year-on-year increase of 4.3%, maintaining the status of "first brother" in life insurance business. Ping An Life Insurance and CPIC Life Insurance followed closely behind, achieving premium income of 498.534 billion yuan and 233.141 billion yuan respectively, a year-on-year increase of 5.82% and 4.86%. The income of Xinhua Insurance was 165.903 billion yuan, a year-on-year increase of 1.72%.
The reduction in deposit interest rates in the banking sector is the main reason for the recovery in the performance of life insurance business. In 2023, the era of low interest rates has arrived as the six major banks and commercial banks have lowered their deposit rates.
In June 2023, the six major banks announced that they would cut the interest rates of various deposits, including the listed interest rates of Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank, all of which were reduced to below 2.5%, bidding farewell to the "3 era" with interest rates. Subsequently, a number of national joint-stock banks successively lowered some RMB deposit rates, ranging from 5 to 15 basis points.
Against this backdrop, some investors have begun to "divert their savings" and turn their attention to insurance products, especially savings insurance such as increased whole life insurance with a fixed interest rate of 3.0%. In the stage of interest rate decline, the long-term protection characteristics of insurance products have been highlighted, which can attract the attention of investors.
For life insurance companies, this is undoubtedly a benefit. According to data from the State Administration of Financial Supervision and Administration, the premium income of life insurance companies bid farewell to negative growth in November 2023, and the premium income reached 119.406 billion yuan, reversing from a year-on-year decline of 7.51% in October to a year-on-year increase of 0.36% in November.
Looking ahead to 2024, the life insurance business of insurance companies is expected to continue to maintain a steady and growing trend.
P&C insurance income is clearly differentiated
In terms of property insurance business, the property insurance business revenue of listed insurance companies will increase in 2023, but the growth rate will be significantly differentiated.
Specifically, among the four property insurance companies, PICC property insurance continued to maintain its leading position, achieving premium income of 515.807 billion yuan in 2023, a year-on-year increase of 6.26%. Ping An Property & Casualty and CPIC Property & Casualty achieved premium income of 302.16 billion yuan and 190.327 billion yuan respectively, a year-on-year increase of 1.38% and 11.42%. Zhongan Online achieved premium income of 29.478 billion yuan, a year-on-year increase of 24.65%.
In terms of insurance types, the growth rate of motor insurance business slowed down throughout the year, while the non-motor insurance business maintained a high growth trend, which became an important driving force for the growth of property insurance premiums. For example, PICC P&C will see a 5.3% increase in motor insurance premiums and a 7.4% increase in non-motor insurance business in 2023, of which agricultural insurance, freight insurance and other insurance types will perform well, increasing by 11.9%, 11.4% and 30.2% respectively. CPIC's motor insurance premiums increased by 5.6% in 2023, while the premium income from non-motor insurance business increased by 19.2%.
Overall, the property and casualty insurance business will maintain steady growth in 2023, and its consumption attributes will make it have better premium income elasticity during the economic recovery period.
Bank-based insurance companies "increase revenue but not profits"
In 2023, the performance of non-listed insurers is also worth watching. Judging from the 62 non-listed insurance companies that have disclosed solvency reports, a total of 1.04 trillion yuan of insurance business revenue will be achieved in 2023, a year-on-year increase of 14.29%.
Among them, Taikang Life Insurance achieved an insurance business income of 203.188 billion yuan, ranking first. China Post Life Insurance is second, entering the "100 billion club" for the first time in 2023, achieving insurance business income of 109.866 billion yuan, ranking second. Xintai Life Insurance business revenue was 53.59 billion yuan, ranking third.
It is worth mentioning that due to factors such as falling interest rates and continuous fluctuations in the capital market, the overall profits of non-listed insurance companies have declined. The overall net profit in 2023 will total a loss of 14.2 billion yuan, a decrease of 18.4 billion yuan from last year.
Among them, Minsheng Life Insurance, China Merchants Cigna, Zhonghong Life Insurance, Sino-US Luen Thai, ICBC AXA, Allianz Life Insurance, National Pension and ABC Life Insurance achieved net profits of 460 million yuan, 460 million yuan, 400 million yuan, 400 million yuan, 400 million yuan, 360 million yuan, 330 million yuan, 320 million yuan and 180 million yuan respectively, occupying the top ten in the profit list.
In the context of the "integration of newspapers and banks", bank-based insurance companies have become the focus of attention of investors and the market.
Previously, 10 bank-affiliated insurance companies, including China Post Life Insurance, CCB Life Insurance, ICBC AXA, ABC Life Insurance, CITIC Prudential, China Merchants Cigna, BOCOM Life Insurance, BOC Samsung Life Insurance, Sun Life Everbright Life Insurance Company and Sino-Dutch Life Insurance, have all disclosed their 2023 annual results.
According to the data, in 2023, these 10 bank-based insurance companies will achieve a total premium income of 364.293 billion yuan, an increase of 6.19% over the same period last year. China Post Life Insurance ranked first with a premium income of 109.866 billion yuan.
Despite being backed by banks with strong financial resources, 10 bank-based insurance companies generally "increase revenue but not profits". In 2023, 10 bank-affiliated insurance companies will achieve a total net profit of -16.142 billion yuan.
Among them, China Post Life Insurance topped the list with a loss of 11.468 billion yuan. However, in the first quarter of 2024, China Post Life turned losses into profits, achieving a net profit of 2.754 billion yuan and insurance business income of 73.658 billion yuan, a year-on-year increase of 26.2%.
On August 22, 2023, the State Administration of Financial Supervision and Administration issued the Notice on Regulating Insurance Products through Bank Agency Channels, emphasizing that the commission fees of bancassurance channels should be strictly "integrated with reporting and banking".
The so-called "integration of reporting and banking" refers to the assumptions of product pricing used in the product approval or filing materials submitted by the insurance company to the regulatory authorities, which should be consistent with the situation of the insurance company in the actual business process, and cannot "say one thing and do another".
On the whole, for the stable development of the industry, avoiding business risks, and protecting the interests of consumers, the integration of newspapers and banks is also a general trend.
However, it is worth noting that due to the impact of the "integration of newspapers and banks", the premium scale of the bancassurance channel, which is soaring in the first half of 2023, has entered a state of slow growth. The bancassurance channel size of the insurance industry declined at the end of 2023 and early 2024, while the net income from bank fees and commissions also declined due to factors such as the decline in agency insurance business income.
Intensive "blood exchange" of management
Since the second half of 2023, a number of insurance companies have undergone changes.
In June 2023, Li Kangzhong, chairman of CITIC Prudential Life Insurance, resigned; In September, Lin Shunhui was approved as the chairman of CCB Life; In November, Xiao Bin, the former chairman of ABC Life, was transferred, and Xue Yaqin, president of ABC Credit Card Center, was appointed as chairman of ABC Life, and his qualifications were approved in April this year.
In addition, since March this year, 14 insurance companies, including CPIC Life Insurance, Hengqin Life Insurance, Happy Life Insurance, Sun Life Everbright Life, Huahai Property Insurance, Huaan Insurance, etc., have disclosed announcements related to the change of general manager and chairman.
Some of the top management personnel adjustments of insurance companies are due to senior executives retiring or reaching the end of their tenure, such as Cai Qiang, the former general manager of CPIC Life. Some insurance companies "change their leadership" due to factors such as the transfer, adjustment and resignation of the original management personnel, such as Xia Han, the former general manager of Guolian Life. In addition, some insurance companies have taken the initiative to adjust their management in order to achieve breakthroughs in business and performance.
At present, the insurance industry is facing dual pressures on the investment side and the liability side, and the adjustment of personnel changes reflects the pressure on the development of the industry to a certain extent.
Changes in core management such as chairman of the board of directors and general manager often have an impact on a company's development philosophy, corporate culture and development strategy. Many insurance companies, especially small and medium-sized insurers, are making rapid personnel changes for business reasons, and as the insurance market continues to grow, competition is becoming increasingly fierce.
To remain competitive, insurers may need to adjust their executive teams more frequently to adapt to market changes and business development needs. At the same time, the insurance industry is undergoing a business transformation with technological advancements and changing consumer needs. This transformation is often accompanied by personnel changes, as companies need leaders with new skills and vision to drive change.
In the future, it is worth waiting to see what the trend of management changes in the insurance industry will be, and "Investor.com" will continue to pay attention. (Produced by Thinking Finance)■