In the first three quarters, CPIC's surrender payment increased sharply year-on-year, and the life insurance renewal business declined

On October 30, CPIC released its third quarterly report. According to the report, from January to September 2021, CPIC achieved a net profit of 22.686 billion yuan, an increase of 15.5% year-on-year. The revenue of insurance business was 301.460 billion yuan, down 0.3% year-on-year. The surrender payment was RMB16.907 billion, an increase of RMB7.821 billion over the same period last year, an increase of 86.07% year-on-year.

(Source: CPIC Announcement)

Specifically, in the first nine months, in the individual customer business of CPIC Life Insurance, the premium income achieved through the agent channel was 163.844 billion yuan, a year-on-year decrease of 2.3%. Among them, the new insurance business increased by 3.6% year-on-year to 26.302 billion yuan, but the renewal business decreased by 3.4% year-on-year to 137.542 billion yuan. For the decline in the renewal business, CPIC said in the report that it was affected by factors such as the growth of new orders in the previous period and the decline in the continuation rate of insurance policies. In other channels, namely, banking, insurance brokerage, corporate direct sales, telemarketing, online sales and other channels, CPIC life insurance business is under serious pressure, and the premium income decreased by 34.5% year-on-year to 6.048 billion yuan. In addition, the group customer business grew significantly, up 28.7% year-on-year.

In CPIC Property & Casualty Insurance, the insurance business income reached 118.994 billion yuan, an increase of 3.0% year-on-year. Among them, the revenue of automobile insurance business was 66.522 billion yuan, down 8% year-on-year, and the non-automobile business was 52.472 billion yuan, an increase of 21.4% year-on-year.

In terms of investment income, in the first three quarters of 2021, the annualized net investment yield of CPIC investment assets was 4.3%, down 0.3 percentage points year-on-year; the annualized total investment return rate was 5.3%, down 0.2 percentage points year-on-year. (text| AI Finance and Economics Ni Yuping, Editor| Lu Jia)