On the evening of October 27, Ping An of China released its first quarter 2021 financial report. Here's the specific analysis:
1. Revenue analysis
As shown in the figure above:
From January to September, the operating income decreased by 12.441 billion yuan year-on-year, down 1.36% year-on-year. Through the analysis of detailed data, it can be seen that the decline in operating income is mainly due to the decline in earned premiums and investment income;
From January to September, operating expenses increased by 11.435 billion yuan year-on-year, an increase of 1.47% year-on-year. It can be seen from the detailed data analysis that the decline in operating expenses is mainly affected by factors such as surrender payments, insurance contract compensation expenses and asset impairments;
According to the financial report, the profit in the first three quarters fell by more than 20% year-on-year, mainly due to adjustments such as the impairment of Huaxia Happiness assets; the profit in the third quarter fell by 31.2%, mainly due to the fluctuations in the capital market, and there was no re-accrual of Huaxia Happiness assets.
2. Operating profit analysis
Analysis: As shown in the figure above, the net profit of the group's consolidated scale increased by 9.24% year-on-year, and the net profit decreased by 20.77% year-on-year.
By business:
Life insurance and health insurance: Attributable operating profit decreased by 2.76% year-on-year, and net profit attributable to parent decreased by 35.77% year-on-year, which was the main reason for the decline in group profit, and the performance was not good;
Property insurance: attributable operating profit increased by 20.16% year-on-year, and net profit attributable to the mother increased by 20.16% year-on-year, with good performance;
Banks: Operating profit attributable to the mother increased by 30.09% year-on-year, and net profit attributable to the mother increased by 30.09% year-on-year, with good performance;
Other business: Operating profit attributable to the mother increased by 60.18% year-on-year, and net profit attributable to the mother decreased by 28.24% year-on-year;
Comments: The group's business is still good from the perspective of operating profit, but the performance of life insurance and health insurance is not good, and the profit has declined too much, resulting in a lot of decline in the impact of the entire group.
3. Customer operation analysis:
3.1 Individual Customer Profiling
Analysis: The total number of individual customers exceeded 225 million, an increase of 5.14% year-on-year. Among them, 39% of individual customers hold multiple subsidiary contracts at the same time; the average number of customer contracts is 2.78.
The number of Internet users exceeded 634 million, an increase of 9.58% over the same period last year; the annual active users exceeded 345 million, an increase of 9.52% year-on-year.
The number of new customers was 25.25 million, down 3.28 million from the same period last year, a decrease of 11.5% year-on-year; of which the proportion of new Internet increases decreased by 0.5% year-on-year.
Comments: The number of individual customers, Internet users and annual active users have maintained a year-on-year increase, especially individual customers holding a number of contracts increased by nearly 10% year-on-year; but the new customers fell significantly, a decline of more than 11%, and the development of new customers is facing challenges!
3.2 Group Customer Analysis
Analysis: The scale of comprehensive financial premiums for group business reached 13.857 billion yuan, an increase of 8.3% year-on-year, of which the public channel increased by 17.89% year-on-year; the scale of comprehensive financial financing reached 532.492 billion yuan, an increase of 29.46% year-on-year.
Comments: By improving customer service levels, group customers have achieved year-on-year growth.
3. Life insurance and health insurance
3.1 Analysis of life insurance and health insurance indicators
Analysis: As shown in the figure above,
Operating profit: decreased by 1.782 billion yuan year-on-year, down 2.36% year-on-year;
First-year premiums used to calculate the value of new business: a year-on-year decrease of $5.403 billion, a year-on-year decrease of 4.5%;
New business value: decreased by 7.607 billion yuan year-on-year, down 17.76% year-on-year;
New business value ratio: down 5 percentage points year-on-year;
It can be seen that the decline in the value of new business is very obvious, combined with the previous customer analysis, mainly because of the obvious year-on-year decline in new customers.
3.2 Analysis of the number of life insurance sales agents
Analysis: Compared with last year, the number of agents decreased by 342,300, down 32.65% year-on-year.
It can be seen that the decrease in new customers and the decline in the value of new business are mainly due to the significant decline in agents.
4. Property insurance analysis
Analysis: As shown in the image above
Operating profit: an increase of 2.228 billion yuan over the same period in 2020, an increase of 20.15% year-on-year;
Original premium income: 20.147 billion yuan less than the same period in 2020, down 9.18% year-on-year;
Consolidated cost ratio: 1.8% lower than the same period in 2020.
Comments: Affected by the reform, revenue declined, but the comprehensive cost fell significantly, and the operating profit rose sharply year-on-year.
5. Portfolio analysis
Net investment income: increased by 6.615 billion yuan over the same period in 2020, an increase of 5.71% year-on-year;
Total investment income: 32.305 billion yuan less than the same period in 2020, down 23.78% year-on-year;
Annualized net return on investment: 0.3% lower than the same period in 2020;
Annualized total investment yield: 1.5% lower than the same period in 2020;
Portfolio size: 3.9 trillion yuan, an increase of 10.17% year-on-year.
Comments: According to the financial report, due to the economic recovery is still unstable and unbalanced, the market interest rate is volatile, the stock industry sector is differentiated, and the index volatility is increasing. The investment yield of the company's insurance fund portfolio is under pressure due to factors such as capital market fluctuations and an increase in the impairment provision for investment assets. It is these reasons that make investment returns unsatisfactory.
6. Solvency analysis
Analysis: As shown in the figure above, ping an insurance and ping an property and casualty insurance have been improved in terms of both core and comprehensive solvency adequacy ratios, and the ability to resist risks has been further strengthened!
In summary, Ping An's 3rd quarter financial performance was not ideal. Mainly life insurance and health insurance performance is not good, through the analysis of the first is that the decline in agents obviously led to a decrease in new customers, further led to a significant decline in the value of new business, a sharp decline in profits; secondly, although there was no major change in Huaxia Happiness in the third quarter, the first two quarters were more accrued, which had a greater impact on profits; and then, the decline in investment income was very obvious.
Although the overall performance was not satisfactory, the profits of banking business and property insurance business increased significantly year-on-year, contributing to the Group's business. In addition, both the core solvency and the comprehensive solvency adequacy ratio have been improved, which is conducive to weighted anti-risk ability!
Looking to the future, life insurance reform is not short-term, and it faces many internal and external challenges, which is a long-term process. So, for me, keep track and observe the monthly premium income situation and keep a close eye on the changes. The current strategy, no fear of ups and downs, lie flat and wait for the opportunity!