Recently, the 2020 premium income of the seven listed insurance companies has all been released. On the whole, the growth rate of life insurance company premiums has diverged, and the growth rate of property insurance companies has declined across the board.
Specifically, Ping An of China, China Life, PICC, China Pacific Insurance, China Taiping, Xinhua Insurance, ZhongAn Online collected approximately 2.76 trillion yuan in premiums, a year-on-year increase of approximately 6.56%. Among them, Ping An’s premium income reached 797.3 billion yuan, ranking first in total premium income for four consecutive years. In terms of premium growth rate, Xinhua Insurance ranked first with a year-on-year growth rate of 15.48%.
Life insurance’s growth rate is differentiated. The”good start” battle started ahead of schedule
In March 2020, Deloitte released the”Insurance Industry Outlook 2020″ report. The report shows that China is expected to contribute nearly half of the growth rate of global life insurance premiums in the next two years. After a sharp contraction of 5.4%due to tightened regulatory policies in 2018, China’s life insurance business growth will rebound to 11%. Judging from the current situation, in the listed insurance companies, except for Xinhua Insurance, the growth rate of life insurance premiums of other insurance companies is less than 8%, or even negative growth, and the growth rate is diverging.
Since 2017, Ping An of China has ranked first in total premium income of listed insurance companies for four consecutive years. However, since 2020, Ping An Life has not met expectations in terms of Ping An’s premium contribution. Specifically, Ping An’s total premium income in 2020 is about 797.3 billion yuan, of which life insurance premium income is 511.5 billion yuan, a year-on-year increase of -2.33%.
On the other hand, China Life, relying on its advantage in 2020 to catch up all the way, the premium gap with Ping An has narrowed to within 100 billion yuan. In 2020, China Life’s total premium income was approximately 693.3 billion yuan, of which life insurance premium income was 612.9 billion yuan, a year-on-year increase of 7.83%. Ranked first in the life insurance premium income of the seven listed insurance companies, and second in growth rate.
Since Xinhua Insurance put forward the development goal of”second take-off”, it has repositioned its bank generation channel as the main channel of life insurance business, and leveraged its”period-bank linkage advantage” to become one of the top seven listed insurers with premium increase Fast first place, reaching 15.48%. However, the total premium income of Xinhua Insurance in 2020 still has a gap with Ping An and China Life, with premium income of 159.5 billion yuan.
As the first A+H+G listed insurance company in China, China Pacific Insurance’s total premium income was 356.6 billion yuan, of which life insurance premium income was 208.5 billion yuan, a year-on-year increase of -1.84%. The reason for the decline in premium income may be related to the contraction of new insurance business in the individual insurance channel.
In 2020, the value of new business of Taiping Life was strongly impacted by the new crown epidemic. In the first half of the year, the value of new business fell by 57%year-on-year. However, the value of new business has improved since the third quarter. Affected by this, China Taiping’s total premium income ranked fifth among the seven listed insurance companies, at 178.4 billion yuan, of which life insurance premium income was 150.3 billion yuan, an increase of 3.30%year-on-year.
In fact, Xinhua Insurance and China Life will maintain high growth rates throughout 2020. In the later period, due to preparations for a”good start” in 2021, the growth rate of life insurance business of various insurance companies has fallen. Affected by the epidemic, the”good start” of 2021 has been advanced to late September 2020.
In late September 2020, China Life launched the “first shot” of the industry’s start-up in 2021, launching Xinyao Oriental Annuity Insurance products. Subsequently, CPIC Life Insurance and Ping An Life Insurance successively launched their”good start” main products.
Guotai Junan’s non-bank financial industry research report shows that the current capital negative resonance, the treasury bond interest rate has stabilized and the start-up performance has exceeded expectations. With the important catalyst of the new and old critical illness definition switch, the insurance sector is expected to bottom out in 2021 Pick up.
The growth rate of property insurance has dropped across the board. The”Matthew Effect” is still prominent
For a long time, auto insurance has been the largest property insurance business. In 2020, due to the comprehensive reform of auto insurance, the growth rate of insurance premiums of property and casualty insurance companies will decline sharply.
As the”big brother” of property insurance, PICC Property & Casualty Insurance ranked first in the premium income of the seven listed insurance companies in the property insurance business in 2020, but the growth rate has been sluggish. Insurance premium income was 432.19 billion yuan, a year-on-year increase of 0.09%. Behind the poor growth rate of premiums, PICC P&C encountered Wuhan Jinhuang’s fake gold one after another in 2020. Credit Guarantee Insurance suffered huge losses and business The scale shrinkage and the reduction in the average insurance premiums after the comprehensive reform of auto insurance.
In contrast, CPIC P&C, one of the”old three” property insurance companies, benefited from its earlier deployment in non-auto insurance and auto insurance renewal management. Its premium growth rate rose against the trend, and its premium income was 148.095 billion yuan, a year-on-year increase of 10.85%. Among them, premium income from non-auto insurance business was 52.424 billion yuan, a year-on-year increase of 29.82%.
On the whole, Ping An Property & Casualty Insurance has contributed to reversing Ping An’s premium growth, but there is still a gap compared with CPIC Property & Casualty Insurance. In 2020, Ping An Property & Casualty Insurance’s premium income was 285.854 billion yuan, a year-on-year increase of 5.51%. The main reason why the premium growth rate is not as fast as that of CPIC P&C is related to the proportion of auto insurance in the total business. Ping An Property & Casualty Insurance’s auto insurance business premiums were 196.151 billion yuan, accounting for approximately 68.62%of the total premium income.
Zhongan Insurance’s auto insurance business accounts for a relatively low premium income of about 16.7 billion yuan in 2020, an increase of 14.13%year-on-year, and its growth rate ranks second among the seven listed insurance companies. In terms of property insurance companies got first place.
On the other hand, Taiping Property & Casualty Insurance’s overall performance is quite satisfactory. In 2020, its premium income will be approximately 28.1 billion yuan, a year-on-year increase of approximately 4.48%.
According to public data, after the comprehensive reform of auto insurance, about 90%of customers have reduced their annual premiums. Among them, 69%of customers have more than 30%of their premiums. The scale of auto insurance premiums has shrunk, and many property insurance companies have turned to non-auto insurance businesses. Among them, the health insurance business is highly sought after. Public information shows that China’s health insurance premium income in the first November of 2020 has exceeded 760 billion yuan. Among them, health insurance premium income of property insurance companies was 106 billion yuan, a year-on-year growth rate of 35.03%.
It is worth noting that the non-auto insurance business is not”a good sight.” Among them, credit guarantee insurance-related businesses have become the loss kings in non-auto insurance businesses due to economic growth pressure and credit default events. Both PICC P&C and Taiping P&C were pushed to the forefront of public opinion due to credit insurance business.
Analysts believe that although my country’s non-auto insurance business has grown rapidly in recent years, there is still a lot of room for improvement compared with mature European and American markets. With the advancement of the comprehensive reform of auto insurance, the reduction of credit insurance business and the development of health insurance and other businesses, the business structure of property insurance companies will be optimized in the future, which will further promote the huge domestic insurance demand.
Written by Beiqing-Beijing Headline Reporter Fan Hui and Li Ziman