The influence of insurance industry and traditional industries

(4/ 1-4/30) The Shanghai and Shenzhen 300 index fell by 3.63%, and the CITIC Insurance II index fell by 6.5 1%, and the sector underperformed the broader market. In the financial sector, the performance of insurance is weaker than that of banks (-1.39%) and brokers (-1.57%). Economic data is relatively stable. In March and April of 20 18, the PMI was 5 1.5 and 5 1.4, respectively, and the performance continued to be higher than the threshold. Trading performance declined slightly. At the end of April, the balance between the two financial institutions was 984.044 billion yuan, down 1.69% from the beginning of the month, and the market turnover was 8.2 trillion yuan, down 20.3% from the previous month. In terms of liquidity, the central bank's market net investment in April was 900.

100 million yuan (net withdrawal of 360 billion yuan last month)

On the one hand, the core reason for the weak performance of the sector is the concern of the investment business about the weak market, on the other hand, the weak premium growth in the first quarter. It is expected that the premium will improve to a certain extent in the second quarter, showing an improvement trend of low before and high after the whole year.

Analysis of total assets of China insurance industry

According to the data of the Analysis Report on Market Foresight and Investment Planning of Insurance Industry released by Foresight Industry Research Institute, the total assets of insurance companies in March were 20 17.22 trillion yuan, up 2.0 1% from the previous month. The total assets of life insurance companies are 13.64.

One trillion yuan, up 1. 16% month-on-month, accounting for 79. 19% of total assets, accounting for a decrease of 0.67%.

Percentage points; The total assets of property insurance companies were 2.45 trillion yuan, up 65,438+0.12% from the previous month, accounting for 65,438+04.25% of the total assets; The total assets of reinsurance companies increased by 8.59% month on month, accounting for 0. 12.

Percentage points; The scale of asset management companies decreased by 5.37% month-on-month, accounting for 0.27% of total assets, and the proportion remained basically stable. In March, the industry's net assets 1.97 trillion, an increase of 4.44% over the beginning of the year.

Analysis on the Profit Trend of Insurance Industry

Benefiting from the adjustment of the traditional assumption of the discount rate of insurance reserves, the profits of insurance companies continued to be released in the first quarter of 20 18. By the end of 20 183, the yield of 10-year treasury bonds was 3.74%.

2.66% higher than the low point of 20 16 10 in late October 108BP. Although it has dropped from the high point in early February, the interest rate of insurance liability reserve assessment has maintained an upward trend as a whole, which has promoted the release of profits at the accounting level of insurance companies.

In the first quarter of 20 18, the four listed insurance companies achieved a net profit of 45.58 billion yuan, up 37.96% year-on-year. From the perspective of a single insurance company,

China Life performed well. China Life realized a net profit of1351800 million yuan in the first quarter of 20 18, up by1/9.84% year-on-year. The performance growth is mainly influenced by the adjustment of the traditional discount rate assumption of insurance reserves. In addition to China Life Insurance, the performance of the other three insurance companies has also increased to varying degrees. The net profit of China Ping An, China Pacific Insurance and Xinhua Life Insurance increased by 1 1.49%, 87.55% and 42.03% respectively.

The insurance market has changed from "extensive growth" to "qualitative improvement"

Agency channels contributed 90% of the premium, and life insurance salesmen accounted for half of the country. The sales methods of life insurance in China mainly include personal agents, postal agents and company direct sales, among which personal agents, postal agents and professional agents account for more than 90% of the premium.

In 20 16 years, the premium income of life insurance companies was RMB 21692810.00 million, of which the premium income of individual insurance channels was RMB 9914.48 million, accounting for 45.8%, which remained stable in recent five years. 20 16

In 2008, life insurance sales staff realized an average premium income of 6.5438+0.508 million yuan, and individual insurance channels have become an important starting point for premium growth.

The insurance market is large, the individual insurance pattern has been set, and the value advantage is prominent.

Individual insurance channels contribute more than 70% of the premium, and the pattern of large individual insurance has become. In 20 17, the premium income of Ping An, CPIC, Xinhua and China Life were 404.9 billion yuan,154.2 billion yuan, 87.4 billion yuan and 3537 yuan respectively.

100 million yuan, accounting for 85.65438 0%, 87.8% and 80.0% of the total premium income respectively.

69. 1%, generally speaking, the individual insurance channel contributes more than 70% of the premium and becomes the most important source of premium. Among them, the transformation of China Pacific Insurance has been completed, and efforts have been made to build high-quality individual insurance, taking the lead. Xinhua is still in transition, 20 17.

In the active adjustment of business structure, the proportion of individual insurance has increased significantly.

The insurance market has incremental two-wheel drive, and embedded value has a steady growth.

Embedded value is the sum of adjusted net assets and effective business value. The growth of embedded value mainly depends on the expected return of embedded value at the beginning of the year and the value of new business within one year. Factors that are greatly influenced by the market, such as differences in investment returns and operational experience, are regarded as disturbances. The contribution of embedded value's growth stocks is relatively stable.

In 20 17, the expected return contribution rate of embedded value, a listed insurance company, remained at 8%- 10%. With good investment ability, China Ping An achieved a total return on investment of 6.0% in 20 17, which was significantly better than the industry. The difference in return on investment contributed 8.4% to the growth of embedded value. China Pacific Insurance's dividend rate remains at a high level, and other factors such as shareholder dividends have a negative effect of 7%. Affected by market value and other adjustments, China Life had a negative impact of -4.7% on embedded value.

Market concentration increases, leading insurance companies usher in a golden opportunity.

Since 20 16, the regulatory policies of the CIRC on the liability side, investment side and equity governance of insurance companies have been tightened in an all-round way. Brand-new regulatory orientation promotes the industry to return to the source of protection, emphasizing stability, compliance and value management.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.