Bai Tao: China Life has reached a "uninhabited area"

Economic Observation Network Reporter Jiang Xin China Life (601628.SH) surrendered the first transcript after a series of high -level personnel changes.

The semi -annual report showed that during the reporting period, the total assets of China ’s life of life exceeded 5 trillion yuan, reaching 5173.524 billion yuan, an increase of 5.8%over the end of 2021; the net profit attributable to shareholders of the parent company was 25.416 billion yuan, a year -on -year decrease of 38.0%. Affected by the short -term fluctuations of the equity market, China Life achieved a total investment income of 98.542 billion yuan, a year -on -year decrease of 16.2%, and the total investment yield was 4.21%, a decrease of 148 basis points from the same period in 2021.

This is also a portrayal of the operating results of the insurance industry in the first half of the year. In the face of the complicated and severe international environment, the domestic epidemic is more out of emotion, the sudden factors exceed the expectations, the economic operation is facing more difficult challenges, and the insurance industry is in a period of in -depth adjustment. In particular, the personal insurance industry has been adjusted by the industry, the release of consumer demand has slowed down, and the sales of consumer demand have slowed down and sales are sold. Factors such as the decline in human scale, and the growth rate of premium income has slowed further.

On August 25, at the mid -term performance conference, the Chinese Life executives responded to hot issues such as danger channels and the US delisting.

Regarding how to go in the future, Bai Tao, chairman of China Life Life, said that China Life has reached a "uninhabited area" and has no experience to learn from us for reference. We need our Chinese life to actively innovate and explore.

The value of the new business is still declining the per capita capacity increase significantly

The semi -annual report shows that the premium income of China Life in the first half of the year was 43.9969 billion yuan, which was basically stable year -on -year. Among them, it contains 1250.877 billion yuan, an increase of 4.0%over the end of 2021; the value of the new business was 25.745 billion yuan, a year -on -year decrease of 13.8%.

In terms of business indicators, China Life's new single premiums were 139.358 billion yuan, an increase of 4.1%year -on -year. The first annual premium premium was 79.838 billion yuan, a year -on -year decrease of 1.0%. Among them, the first -year premium premiums of the decade and above were 30.226 billion yuan, an increase of 4.4%year -on -year. Affected by the renewal of some products, the renewal premium was 300.611 billion yuan, a year -on -year decrease of 2.5%. During the reporting period, the surrender rate was 0.51%, a year -on -year decrease of 0.16 percentage points.

As a header of life insurance, in the face of the industry's adjustment with deep water, China Life's thinking and actions are also worthy of industry attention.

Zhan Zhong, vice president of China Life, said that at present, the size of the industry agent is still in a downward channel, but the speed of decline is slowing and there are signs of stability. Judging from the data of Lao Qijia Life Insurance Company, the number of agents of the seven companies fell by 36%last year, and the decline rate was 14%in the first half of this year.

Data show that as of June 30, 2022, the insurance sales of insurance were 746,000, of which the marketing team was 476,000, and the scale of the score team was 270,000. This is the largest volume of the current life insurance company's agent team. Zhan Zhong introduced that while the scale of the agent tended to stabilize, the transformation effect was initially effective. In the first half of the year, the per capita production capacity increased by 60.6%. The focus of the next reform is to stabilize the solid volume and seek effectiveness.

While talking about the current development of the life insurance industry, Bai Tao said that China ’s life insurance industry is a re -industry in 1982. It has been 40 years so far. Among them, the double -digit increase is 32 years, and the number of digits has increased by 8 years. From the perspective of scale and market value, it has been ranked in the world's first formation. The current business area is very wide, the differences in the organization are relatively large, and management is becoming more and more complicated now. How to go in the future? Under the current circumstances, China Life has reached a "uninhabited area", and there is no experience that can be used for us to learn from. Simple replication experience is gone. Unlike we can simply copy it thirty or forty years ago. So how to go in the future requires our Chinese life to actively innovate and explore.

Bai Tao said that there are two keywords worth sharing in the past 40 years: the first is to "adhere to" and keep it. The second is to "seek change" and keep pace with the times. The so -called persistence is to adhere to the insurance of insurance surname insurance, the insurance of insurance, and the core development concept of insurance for the people. The second is to "seek change". The internal and external environment is constantly changing. If you can't keep pace with the times, it will definitely be eliminated for a long time. One thing.

Responsible for US stock delisting

On August 12, the 16th meeting of the seventh board of directors approved China Life to apply for voluntaryly to delists from the NYSE shares from the New York Stock Exchange, and revoke the US depository shares and its corresponding H shares under the securities trading law. register.

At the performance conference, Li Mingguang, Vice President of China Life Life, General Actuary, and Secretary of the Board of Directors, responded to the issue of U.S. stock delisting.

Li Mingguang said that the main consideration is two aspects: First, the transaction volume of the US deposit stocks listed on the NYSE trading on the NYSE is limited compared to the company's H -shares global transaction volume. Second, the US deposit stocks are listed on the NYSE, maintaining US depository stocks and corresponding H shares in the U.S. Securities Regulatory Commission Registration and the company's regular reporting requirements stipulated in US securities laws and regulations and the high administrative costs involved in related businesses. Essence

It is understood that at present, China Life has submitted Form 25 to the US Securities Regulatory Commission. September 1, 2022 will be the last date of the Chinese Life US depository stock trading in the NYSE. The subsequent deposit bank will be based on the deposit agreement Relevant notices to terminate US depository projects and explain subsequent arrangements to the majority of ADR investors. In other words, from September 2nd to the project ending, the company's US deposit stocks can continue to transaction on the market, and then they can transfer it back to H shares through the deposit bank within 6 months according to the deposit agreement investors within 6 months. Holding or selling, the company will timely submit form 15 forms in time in accordance with relevant regulations to apply for cancellation registration. This has a process. Regarding the relevant impact, Li Mingguang said that the company's deposit stocks are linked to H shares. After the US delisting, the company's H shares will continue to trade on the Hong Kong joint exchange. Investors can transfer the deposit stock H -shares continue to hold the company's stock. The refund of the New York Stock Exchange does not involve the repurchase of depository stocks, which will not change the company's equity structure, and it has no effect on the issuance of the company's H -shares. At the same time, delisting from the United States does not affect the company's normal production and operation, the level of corporate governance, the company's listing status at home and abroad, and customer rights. The company has established internal management systems such as corporate governance, information disclosure and internal control, and audit. In the future, we will continue to promote corporate governance and construction, implement the best practice of corporate governance, and continue to improve the company's governance level and governance efficiency.

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