The insurance industry has a high degree of concentration and the status of leading companies is stable, but the overall situation is still in a low level of involution, especially in life insurance. Breaking the situation requires supply-side reform.
On June 28, the report card of the insurance industry for the first May of 2022 was released!
Data show that from January to May this year, the original premium income of the whole industry was 2,418 billion yuan, a slight decrease of 0.63% year-on-year.Among them, the original premium income of life insurance companies was 1,770.8 billion yuan, a year-on-year decrease of 3.25%; the original premium income of property insurance companies was 647.2 billion yuan, a year-on-year increase of 7.31%.
It is worth noting that, according to iFinD data, in the first five months of this year, the six insurance stocks of A-shares all declined to varying degrees, but they rose collectively in June, among which China Life Insurance rose by more than 22%.
(Screenshot from iFinD of Straight Flush)
Changjiang Securities said that under the judgment that the debt side will maintain a weak repair in the second half of the year, the current industry opportunities mainly come from the valuation repair space brought by the improvement of the asset side.At present, the industry valuation level is still at the historical bottom, and the institutional position level is also at the bottom, with a high margin of safety.
The total premium is 2.42 trillion yuan
From January to May 2022, the insurance industry accumulated original premium income of 2,418 billion yuan, a slight decrease of 0.63% year-on-year, and the decline continued to narrow.Among them, the industry fell by 1% in the first quarter and 0.9% in the first four months.
From January to May, the property insurance business achieved a total of 518.8 billion yuan in original insurance premium income, a year-on-year increase of 5.79%.
The life insurance business achieved a total of 1,899.2 billion yuan in original insurance premium income, a year-on-year decrease of 2.25%.Among them, the premium income of life insurance business was 1,396.9 billion yuan, a year-on-year decrease of 3.5%; the premium income of health insurance business was 453 billion yuan, a year-on-year increase of 2.33%.
In terms of listed insurance companies, the five listed insurance companies in the first five months achieved a total premium income of 1.35 trillion yuan, a year-on-year increase of 3.76%.The growth rate of premiums showed "four rises and one fall": except for China Life's decline in premiums, the other four showed an upward trend.
Life insurance companies continue to experience negative growth
Let’s first look at the operating performance of life insurance companies.
From January to May this year, the original premium income of life insurance companies was 1,770.8 billion yuan, a year-on-year decrease of 3.25%, and the rate of decline narrowed.
From the perspective of specific types of insurance, the original premium income of life insurance was 1,396.9 billion yuan, a year-on-year decrease of 3.5%; health insurance was 350.6 billion yuan, a year-on-year decrease of 1.54%; accident insurance was 23.4 billion yuan, a decrease of 11.7%.
(Luo Gemei Watchmaking)
Judging from the performance of listed companies, the five life insurance companies achieved original premium income of 890.45 billion yuan in the first five months, a year-on-year increase of 1.08%.The margin of premium growth has improved. China Life, Ping An Life, CPIC Life, New China Insurance, and PICC Life have year-on-year growth rates of -1.86%, -2.5%, 5.1%, 4.97%, and 22.58%, respectively.
CITIC Securities pointed out that the insurance industry has a high degree of concentration and the status of leading companies is stable, but the overall situation is still in a low level of involution, especially life insurance, and supply-side reform is required to break the situation.The key point of life insurance reform is to put people first and build a sustainable and value-added insurance industry chain.At this stage, life insurance stocks have an upward chance of beta, which comes from low valuation + fundamental bottoming + stock value release ROE (return on equity).
Property and casualty insurance companies slow down
Let's look at the insurance company.
From January to May this year, the original premium income of property insurance companies was 647.2 billion yuan, a year-on-year increase of 7.31%, and the growth rate has narrowed.
From the perspective of specific types of insurance, non-auto insurance, liability insurance, agricultural insurance, and health insurance grew well.The original premium income of health insurance was 102.4 billion yuan, up 18.24% year-on-year; liability insurance was 52.4 billion yuan, up 9.62% year-on-year; agricultural insurance was 49.6 billion yuan, up 24.94% year-on-year.However, engineering insurance, accident insurance, and home property insurance all declined.Among them, the original premium income of engineering insurance was 6 billion yuan, a decline of 20%.
(Luo Gemei Watchmaking)
In terms of auto insurance, from January to May this year, the motor vehicle insurance of property and casualty insurance companies realized the original insurance premium income of 327.2 billion yuan, a year-on-year increase of 4.2%, and the growth rate has narrowed.
In terms of listed insurance companies, benefiting from the substantial mitigation of the negative impact of the effective control of the epidemic on auto insurance premiums, the growth rate of premiums of the three property insurance companies in the first five months was basically stable.PICC Property & Casualty achieved a premium income of 222.79 billion yuan, a year-on-year increase of 9.95%; Ping An Property & Casualty achieved a year-on-year premium of 118.28 billion yuan, an increase of 8.83% year-on-year; CPIC Property & Casualty achieved a premium of 74.08 billion yuan, a year-on-year increase of 9.57%.
CITIC Securities believes that the reform of auto insurance has basically met regulatory expectations, and it is expected that the industry will usher in a stable policy cycle; major national policies such as healthy China and "decentralization, regulation and service" will promote non-auto insurance to continue to release growth potential.
(Editor in charge: Cai Qing)
