Recently, the premium income of 7 A-share and H-share listed insurance companies in the first half of 2024 was released. According to the data, the total premium income of seven listed insurance companies, including Chinese Life, Ping An of China, Chinese Insurance Company, China Pacific Insurance, Xinhua Insurance, Sunshine Insurance and Zhongan Online, was 1.85 trillion yuan in the first half of this year, a year-on-year increase of 6.57%.
In contrast, in the first half of this year, the premium income of life insurance companies was under pressure compared with property insurance companies, and the premium income growth rate of 2 out of 6 life insurance companies was negative; The premium income of the five property and casualty insurance companies all increased year-on-year. Industry analysts pointed out that the growth of new life insurance orders in the first half of the year faced certain pressure, but it is expected that the improvement of the new business value ratio will drive the rapid growth of new business value.
In the first half of the year, the premiums of listed insurance companies "rose six times and fell once", and the growth rate of Xinhua Insurance was negative
According to the premium income announcement, in the first half of 2024, the total premium income of seven listed insurance companies, including Chinese Life, Ping An of China, Chinese People's Insurance Company, China Pacific Insurance, Xinhua Insurance, Sunshine Insurance and Zhongan Online, was 1.85 trillion yuan in the first half of this year, compared with 174 million yuan in the same period last year, a year-on-year increase of 6.57%.
In the first half of this year, Chinese Life ranked first with a premium income of 489.6 billion yuan, followed by Ping An of China and Chinese Insurance with a premium income of 481.268 billion yuan and 427.283 billion yuan respectively; and fourth was China Pacific Insurance with a premium income of 266.187 billion yuan. The premium income of Xinhua Insurance, Sunshine Insurance and Zhongan Online is relatively small among listed insurance companies, with 98.832 billion yuan, 76.407 billion yuan and 15.239 billion yuan respectively.
Premium income of 7 listed insurance companies in the first half of 2024, data source: company announcement. Drawing: Nandu · Bay Finance Society
In terms of growth rate, 7 listed insurance companies "rose six times and fell once". The fastest growing rates were Sunshine Insurance and Zhongan Online, which have relatively small premium scales, with year-on-year growth of 12.73% and 5.34% respectively. Ping An and Chinese Life also had a growth rate of more than 4%, a year-on-year increase of 4.72% and 4.13% respectively. Chinese People's Insurance and China Pacific Insurance increased by 2.98% and 2.37% year-on-year respectively. New China Insurance was the only listed insurance company with a negative growth rate, down 8.36% year-on-year.
However, judging from the monthly premium income in June 2024, 6 of the 7 listed insurance companies have a positive year-on-year growth. Some insurance companies have a rapid growth rate, and the premium income of Sunshine Insurance and Ping An of China in June 2024 will be 11.599 billion yuan and 81.513 billion yuan respectively, a year-on-year increase of 21.30% and 11.39% respectively. Only Zhongan Online's monthly premium income growth rate in June was negative, a sharp decrease of 12.55% year-on-year.
The life insurance business was under pressure, with CPIC Life Insurance and Xinhua Insurance both declining year-on-year
In terms of business segments, the premium income of six life insurance companies, including Chinese Life, Ping An Life, Taibao Life Insurance, Xinhua Insurance, PICC Life Insurance and Sunshine Life, totaled 1.17 trillion yuan, compared with 1.14 trillion yuan in the same period last year, a year-on-year increase of 2.55%.
From the perspective of premium scale, Chinese Life led with a premium income of 489.6 billion yuan, and Ping An Life's premium scale exceeded the 300 billion yuan mark, reaching 300.784 billion yuan, ranking second. CPIC Life followed with a premium income of 153.159 billion yuan. The premium income of New China Life, PICC Life Insurance and Sunshine Life Insurance was 98.832 billion yuan, 79.052 billion yuan and 51.756 billion yuan, all of which were less than 100 billion yuan.
Premium income of 6 life insurance companies in the first half of 2024, data source: company announcement. Drawing: Nandu · Bay Finance Society
However, the premium growth rate of the six life insurance companies was differentiated. Sunshine Life achieved double-digit premium growth of 12.89%; Ping An Life and Chinese Life achieved growth rates of 5.08% and 4.13% respectively; PICC Life Insurance reversed the negative growth in the first five months, with a slight increase of 0.31% year-on-year. Although the premium income of CPIC Life Insurance and New China Insurance in the first half of the year still fell year-on-year, the decline rate has narrowed compared with that from January to May.
Guotai Junan Research Report analyzed the premiums of five A-share listed insurance companies in the first half of the year, pointing out that the premium growth of Chinese Life and Ping An Life continued to boom, which is expected to be mainly due to the rapid growth of renewal business brought about by strong sales in 2023; CPIC Life, PICC Life and New China Insurance are expected to be under pressure on premium growth due to the initiative to optimize their business structure and reduce single payment business.
Nandu · Bay Finance reporter statistics found that the growth rate of premium income in June 2024 of 6 life insurance companies is positive, and the growth rate of 3 companies is double digits. Among them, Sunshine Life, PICC Life Insurance and Ping An Life increased by 36.49%, 30.08% and 16.20% year-on-year respectively.
"In terms of life insurance companies, although the growth of new orders in the first half of the year is under certain pressure, under the influence of the reduction of product pricing interest rates, the reduction of the expense ratio of bancassurance and the active adjustment of business structure by insurance companies, the new business value rate has stabilized and rebounded, which is expected to promote the rapid growth of new business value." Guotai Junan said in the research report.
Property insurance premiums are growing positively, and only Zhongan Online has a negative monthly growth rate in June
Compared with life insurance, which is under pressure, the property insurance business has shown a steady development trend. In the first half of 2024, the premium income of five property insurance companies, including Ping An Property Insurance, CPIC Property Insurance, PICC Property Insurance, Sunshine Property Insurance and Zhongan Online, totaled 625.311 billion yuan, a year-on-year increase of 4.85%, and the premium income of the five property insurance companies increased year-on-year.
The premium income of the "old three" property insurance companies is still at the top. PICC Property Insurance, Ping An Property Insurance, and CPIC Property Insurance achieved premium income of 311.996 billion yuan, 160.397 billion yuan, and 113.028 billion yuan respectively. The premium income of Sunshine Property Insurance and Zhongan Online was 24.652 billion yuan and 15.239 billion yuan respectively.
The premium income of 5 property insurance companies in the first half of 2024, data source: company announcement. Drawing: Nandu · Bay Finance Society
The premium income of the five property insurance companies in the first half of the year increased year-on-year, but the growth rate was different. Sunshine Property Insurance grew by more than double digits, reaching 12.41%; CPIC's property insurance ranked second in terms of growth, reaching 7.7%. The growth rates of Zhongan Online, Ping An Property Insurance, and PICC Property Insurance were 5.34%, 4.10%, and 3.70% respectively. In addition, Zhongan Online is the only property insurance company with a negative monthly premium growth rate in June 2024, a year-on-year decrease of 12.55%, and the company's premium growth rate in the first five months exceeded 10%, but the growth rate turned negative in June.
Ping An Property & Casualty, CPIC Property & Casualty and PICC Property & Casualty disclosed in detail the premium income of different types of insurance. In terms of motor insurance, according to the scale of premium income, PICC Property Insurance, Ping An Property Insurance and CPIC Property Insurance achieved premium income of 139.364 billion yuan, 104.824 billion yuan and 52.167 billion yuan respectively, accounting for 44.67%, 65.35% and 46.15% of the total premium income respectively, a year-on-year increase of 2.55%, 3.43% and 2.76% respectively.
As for the reasons for the differentiation of the premium growth performance of property insurance companies, Guotai Junan analyzed in the research report that it is expected to be mainly affected by the fluctuation of new car sales growth (3.2% year-on-year) and the reduction of the average car premium of high-quality car owners by some companies. Huafu Securities Research Report pointed out that it is expected that in the second half of the year, the effect of the "car trade-in" policy will gradually appear, and car insurance premiums will continue to increase.
In terms of non-motor insurance, PICC Property Insurance, CPIC Property Insurance and Ping An Property Insurance achieved premium income of 172.632 billion yuan, 60.861 billion yuan and 55.573 billion yuan respectively, all of which increased year-on-year. Among them, CPIC property insurance increased the most, reaching 12.32%, while Ping An property insurance and PICC property insurance increased by 5.27% and 4.61% respectively.
According to the data disclosed by the Ministry of Emergency Management, in the first half of 2024, a total of 32.381 million people across the country were affected by various natural disasters, and the direct economic loss was 93.16 billion yuan, a significant year-on-year increase (38.23 billion yuan in the first half of 2023). Huaxi Securities analyzed in the research report that it is expected that in the first half of this year, the comprehensive cost ratio of various insurance companies will increase due to the increase in claims.
Written by: Nandu · Bay Finance Agency reporter Peng Leyi intern He Yunyi