China Life (601628) Annual Report 2018 Review: A Series of Factors Gradually Cleared to Reinvigorate China Life to Continue
Investment Highlights The company’s 2018 performance was affected by the underwriting and investment sides, and the magnitude of the change in the scope of the initiative. Actively reducing the burden on the company will help the company’s goal of “rejuvenating China Life”.
The company realized a total operating income of 64.31 million yuan in 2018, a year-on-year decrease of 1.
5%, the net profit attributable to mothers was 1.14 million yuan, a decrease of 64.
The main change in the company’s performance is due to the negative growth in new single premiums and shifts in the change in investment income. In addition to passive factors such as regulatory policies and poor secondary market conditions, the company’s active behavior has interacted, including lowThe value of the bancassurance brokerage business was reduced from nearly 60 billion pounds in 2017 to 8.6 billion dollars in 2018, as well as the active sale of reorganized floating loss stocks, with an investment asset sale difference of -215 trillion.
The company took the initiative to reduce the burden of bread and go light, which is conducive to the company’s goal of “rejuvenating China Life”.
Affected by regulatory policies and the company’s initiative, the value of new premiums and new business improved, and the renewal led to a positive increase in total premiums and a slight increase in market share.
Affected by the impact of Circular 134 on annuity insurance sales and the company’s active reduction of bank and insurance transactions, the company’s new single premium and new business value in 2018 have been replaced.
The company initially realized a new single premium of 1711 million, down 23 a year.
5%, new business value of 4.95 million yuan, a year-on-year decrease of 17.
Driven by renewal premiums, the company realized total premiums of US $ 535.8 billion in 2018, an increase of 4 per year.
7%, higher than the industry average, with a market share of 20.
4%, an increase of 0 from the end of 2017.
The premium structure was significantly optimized and the quality of business was gradually improved.
Based on the implementation of Circular 134 in 2018, the company significantly optimized the premium structure.
Among the new single premiums in 2018, the proportion of premiums paid in the first year reached 90.
2%, an increase of 26 from 2017.
2 samples; of the total premiums, renewal premiums accounted for 68%, an increase of 11 from 2017.
The company’s business quality has also gradually improved, with 14-month and 26-month policy 南京桑拿网 continuance rates being 91.
1% and 86%, which increased by 0 respectively before 2017.
2 digits and 0.
In terms of asset allocation, the company mainly increased the proportion of fixed income assets such as time deposits. The total investment yield was affected by poor secondary market conditions and the company’s initiative to sell a large number of floating loss stocks, which was lower than the same period last year.
In 2018, the company substantially increased the proportion of fixed income assets such as time deposits, among which time deposits accounted for 16% in 2017.
3% rose to 18% in 2018. At the same time, due to poor secondary market conditions, the proportion of equity assets such as stocks and funds declined.
In terms of investment yield, the company’s net investment yield and total investment 杭州夜网论坛 yield in 2018 were 4 respectively.
64% and 3.
28%, a decrease of 0 from 2017.
27 digits and 1.
88 shares per share. From the data point of view, the company’s 2018 investment asset bid-ask spread income was -215 trillion, and the fair value gain or loss was -54 trillion. The above two parts of revenue were reduced by 359 trillion compared with 2017.The decline led to an increase in the rate of return on investment.
We slightly adjusted the company’s EVPS in 2019, 32 in 2020 and 2021.
58 yuan, 37.
33 yuan and 42.
43 yuan, the EPS is 1.
02 yuan, 1.24 yuan and 1.
47 yuan to 2019.
At the closing price of 27, the corresponding PEV is 0.
72 and 0.
64, corresponding PE is 26 respectively.
79 and 18.
31. We give a prudent overweight rating.
Risk warning: New single premiums are lower than expected, interest rates are down, and investment returns are down.