The five major listed insurance companies are "how many happy and more sorrows"?

【Supernova Finance/Original】

Recently, the premium income of the five major listed insurance companies in A-share in the first half of 2022 has been disclosed. Statistics show that the total revenue premiums in the five major listed insurance companies from January to June June to June, the year-on-year increase of 4%. In terms of life insurance, under the sprint of performance in some companies in June, the marginal performance has improved. %And 12%decline.

In addition, the five major listed insurance companies will distribute nearly 83 billion yuan in cash red envelopes. At the same time, various insurance companies have stabilized the stock price by repurchasing shares and executives to increase their holdings. However, the secondary market does not seem to buy it. Still sluggish. What is the insurance stock? What about "how many people are happy and more sorrowful" in the future?

01 Logic behind the dividend of insurance companies

On July 7, China Life issued the "Announcement on the Implementation of the 2021 Annual A -share Profit Distribution of China Life Insurance Co., Ltd." stating that the company issued a total of about 18.372 billion yuan (including tax).

Figure/Giant Chao Information Network

Earlier, China Tai Bao and Ping An of China had carried out cash dividends. In addition to China Life, Chinese PICC and Xinhua Insurance also reviewed and approved the 2021 profit distribution plan.

Public information shows that China Tai Insurance has distributed a total of 9.62 billion yuan in cash dividends, and Ping An of China distributed a total of 43.136 billion yuan in cash dividends. China Life, China PICC, and Xinhua Insurance were issued 18.372 billion yuan, 7.253 billion yuan, and 4.492 billion yuan. Listed insurance companies have scored 82.9 billion yuan.

There are divergent opinions on the market. A netizen named "Binbin 5958" said that a significant dividend indicates that the industry has no growth; netizens' "idle money stocks are interested" and "small cabbage 960" said that they have no principal and dividends after receiving the dividends, dividends, and dividends. Then I do n’t know how much it is to fall; while some industry professionals have expressed different views. It believes that the current stock price of the insurance sector is undervalued, and the market is expected to recover. This is to regain market confidence.

However, it is worth noting that the distribution of cash dividends has not had a greater impact on the insurance industry. Since the beginning of this year, the A -share insurance sector has fallen down, and many investors have developed a certain degree of floating loss.

To cure the standards, the insurance industry wants to repair the valuation, the market has stabilized and rebounded. So, what are the reasons for the downturn of insurance companies?

In the macro perspective, in the post -epidemic era, the national economic growth slowed down, the level of residents' income decreased, the idle assets became less, the investment in the insurance industry decreased, and investment was more cautious.

In terms of micro, Chen Li, chief economist of Chuancai Securities and director of the Institute, said that there are three reasons. One is the industry "strict supervision". As early as 2021, the China Banking Regulatory Commission proposed the "self -revolutionary revolution The way to prevent the incidence of financial crisis "" scrape the poisoning "and other expressions, to clear the chaos in the industry in all directions, and ensure the healthy development of the industry, but the reform is inevitable that the overall growth rate of the industry will slow down. For example, the "car insurance" is greatly affected; the third is that the influence of the insurance agent's team and the replacement of the replacement of the people in various places have constituted a certain impact on the performance of insurance companies.

Figure/Pexels

If it is necessary to observe insurance enterprises, the development of personal insurance and other businesses may be the main cause of the overall development of the insurance industry.

As of July 18, the five major A -share listed insurance companies China Life, Ping An, China Pass Insurance, China Pacific Insurance, and Xinhua Insurance's premium revenue in the first half of the year had been released, with a total of 1.59 trillion yuan, a year -on -year increase of 4%.

From the perspective of business, the life insurance business of listed insurance companies is still differentiated, and the premium growth rate is "three liters and two drops". Among them, the premiums of the Chinese Life Insurance Company and Ping'an Life Insurance are still under pressure. Fall 0.7%, 2.5%. However, in terms of property and insurance business, three property insurance companies have achieved higher growth rates.

Since 2017, the personal insurance market has entered a downward period, the premium growth is weak, the human scale shrinks, and the NBV growth has slowed down. In this regard, most of the life insurance seeks to transform. Until the first half of 2022, life insurance is still in the transitional pain period. In addition The downward trend of interest rates has increased, insurance contract assumptions change, and affected by the sharp increase in the risk of real estate assets in 2021, most of the new business value and performance of most insurance companies have declined. As for the value of new business alone, as of June 2022, the new business value of major insurance companies has fallen to the level of 2015-2016.

02 New business value declines

To carefully understand the cause of the insurance industry, it is necessary to study the leading enterprise -five major A -share listed insurance companies. Looking at it, in terms of business, the five major insurance companies have their own focus. Among them, China Life and Xinhua Insurance only operate personal insurance, while China Ping An, China Pacific Insurance, and Chinese People's Insurance take into account personal insurance and property and insurance business. However, Ping An of China Compared with China ’s Tai Insurance, it is more personal insurance, and Chinese people’ s insurance focuses more on property insurance.

Different business preferences have different development in the first quarter of 2022, which are specifically reflected in operating income and net profit.

Data comes from the first quarter report of insurance companies

Judging from the first quarter report, public information shows that in the first quarter of 2022, the five listed insurance companies achieved a total net profit of 51.361 billion yuan, a significant decrease of 36.4%year -on -year. Among them, China Life's operating income ranks first, reaching 343.777 billion yuan, while the net profit of Ping An's peace returns is 20.658 billion yuan. It is worth noting that in addition to the small growth of the operating income of Chinese people's insurance, it has been listed in 4 companies. Both insurance companies have the dilemma of double decline in revenue and net profit. Among them, China Life, with the number one operating income, explained the situation of its mother's net profit and landslide. Due to the fluctuations in the current equity market and the comprehensive influence of the same period in 2021, the investment income decreased year -on -year; and the decline in operating income was declined while the decline in operating income was declined. Due to the decline in insurance business income.

Public information shows that in the first quarter of 2022, China Life's investment income was 53.991 billion yuan, a year -on -year decrease of 26.53%; the premiums had earned 294.483 billion yuan, a year -on -year decrease of 3.37%.

In addition, in terms of Chinese life insurance premiums, due to the impact of the epidemic, the demand for insurance consumption is difficult to fully release. The company's new single business development continues to be under pressure. In the first quarter of 2022, the company's new business value decreased by 14.3%year -on -year.

The main business of China Life is life insurance business. Like many life insurance companies, its performance and new business value are affected by the transformation of life insurance, and the market has fluctuated slightly.

03 Valuation is still low?

In this context, listed insurance companies have made "combination boxing" of share repurchase plus executives to increase their holdings to convey confidence to the market and investors.

As of June 30, 2022, Ping An of China has accumulated a total of 103 million A shares through concentrated bidding transactions, accounting for 0.56,122%of the company's total share capital, and the total amount of funds paid by paying a total of RMB 5 billion (excluding included transaction fee). This year, China ’s Taibao A+H shares have been increased by 287,900 shares.

Tianfeng Securities pointed out that in terms of life insurance, with the improvement of the epidemic and the marginal stability of the agent, the restoration of life insurance liabilities may continue; the improvement of the market for equity and the gradual release of real estate risks can also bring improvement of investment income. The current insurance stock is at a low historical valuation.

Figure/Pexels

East Asia Qianhai Securities Research Institute stated that on the debt of the insurance industry, benefiting from the heating of the management of the phased wealth management and the stabilization of the team, the new single business expects to rise. The asset end, interest rate decline is expected to weaken, showing a trend of valuation repair.

Xingye Securities analysts Sun Yin and Xu Yizhou also believe that the current insurance sector valuation and market holding are in the historical bottom range, and the insurance stock market attention has increased significantly.

Looking at the follow -up, the new single business on the debt side is expected to be gradually repaired under the demand for savings business, stabilizing team scale, and driven by low bases; asset -side investment income or slow release of real estate risks, equity market recovery, and interest rate shocks have continued to improve. The value of low valuations and low -holding insurance stock allocation value is improved.

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