Ping An of China (601318): Profit releases a lot of conservative life insurance reform is the winner of 2020 performance

Ping An of China (601318): Profit releases a lot of conservative life insurance reform is the winner of 2020 performance

Key Investment Events: Ping An announced its 2019 annual report. The Group’s net profit attributable to mothers and net profit attributable to mothers increased by 39% and 18% to 1,494 trillion and 1,330 trillion, respectively, and the net assets attributable to mothers increased by 21% to 6,732 trillion.twenty four.

3%, the value of life insurance and the internal value of the group increased by 23 respectively.

5% and 19.

8%, the value of new life insurance business increased by 5.

1%, a hexadecimal increase of 19.

2%, slightly faster than the increase in operating profit after tax, and the comprehensive cost ratio of property and casualty insurance was stable at 96.

4%, the total investment income of insurance funds injected 6.

9%, the data is basically consistent with the group’s performance indicators.

  Agents and the entire ecosystem have the fastest growth in drainage. The Group creates 上海夜网论坛 a group customer 1 + N service model1. Ping An’s current integrated financial model relies on agents and five ecological “flows + frequencies”. The number of group personal customers in 2019 will increase by 11.

2% to 200 million people, but the number of customers increased by 3.

2% to 36.57 million, of which, due to the excessive number of agents, the addition of customers from traditional channels decreased.

From 5% to 21.67 million, the number of new customers from the five major ecosystems accounted for 40% of the total number of new customers.


  2. The Group still promotes the migration project of “one customer, multiple accounts”.

At the end of 2019, the number of customers holding multiple subsidiary accounts within the Group increased by 15 year-on-year.

8% to 73.71 million, the proportion of total customers increased by 2.

5 points to 36.

8%, the number of per capita contracts increased by 3.

9% to 2.

The growth rate of 64, 13% per capita operating profit was mainly due to the improvement of product profitability.

  The insurance sector contributed more than 80% of the Group’s profits. The technology sector suffered a decline in profit growth1 due to the base and investment. The life insurance sector’s scale and net profit were 102.7 billion.

The 3% growth rate was 100 earlier than Q3.

The 6% reserve is mainly due to the Group’s initiative to reduce the liquidity premium, thereby accruing approximately 15.5 billion more reserves, adjusting the actuarial assumptions (about 3.2 billion US dollars), and weakening the impact; 2. Trust and other asset managementThe highest net profit dropped by 13.

8% and 43.

4%, the former continues to adjust its performance due to the decline in the average monthly management scale and the impact of investment income. In 2019, the credit and asset impairment losses in each year will increase from last year.

9 ppm to 56.

600 billion US dollars, increasing the impact of the project investment exit rhythm is weak; 3, the technology sector’s substantial net profit fell sharply by 75.

1% to 34.

USD 900 million, partly because the company had Lufax in 201772.

The profit base of US $ 400 million is also partly due to increased investment in new technology business, and the replacement of companies with good expenditures such as good doctors has tended to narrow. The agent data is not satisfactory. The 2020 life insurance reform is the group’s performanceSuccess or failure1, the value of Ping An Life’s new scale business in 2019 increased by 5.

1%, the main growth rate of value growth, the long-term guarantee margin from 94 in 18 years.

7% rose to the current 104.

9% is expected to be related to the reduction in commission rates for new products such as Fuxing. Considering the increase in the surrender rate and the worsening of serious diseases, the future value rate will continue to decrease.

  2. At the end of the period, the number of Ping An Life insurance agents decreased by 17% to 1.17 million, and the activity rate decreased by 2pt to 60.

9%, the average monthly income of agents was flat at 6,309 yuan, lower than the social average 7% -8% growth rate, weak performance, which is also the long-term protection of new orders fell7.

The core factor of 8%, but benefited from the rapid iteration of the company’s products in 2019, the per capita new order increased to 1.

38 pieces.

  3. The growth rate of pre-tax operating profit of life insurance is limited.6%, because the dividend risk in 2018 is to maintain the competitiveness of the rate of return, the corresponding assets of the over-reserve reserve have fallen sharply, so the interest margin has fallen by 21.

8%, this part will be restored in 2020, included due to surrender (13-month continuation rate dropped by 2).

8 points to 87.

8%), the reduction in fee differentials (decreasing premiums due to the reduction in scale effect), the increase in technology expenses, and the base in 2018, the operating deviation has been reduced by 52%; the remaining marginal growth rate of new business value contribution is 12%.

The 3% is mainly due to the shortening of the duration of the opening products in 2019, which shortens the duration to the remaining margin of 4% -5% and the discount rate difference between nbv11% becomes smaller.

  4. We expect that the company’s short-term life insurance reform method is mainly to expand agent entrances by means of cost pulling, increase talent quotas, etc., and choose to promote the launch of mid-to-high-end products and high value-added long-term savings on the product, while increasing the number of agents andInternal service incentive plan and investment advice on the other side: We believe that Ping An’s life insurance agent capacity is still the best in the industry. The core of the Group’s performance in 2020 lies in the reform of life insurance. The short-term success of the life insurance reform lies in the increase in staffing after the epidemic. We judge that we are affected.The starter performance is general and the impact of the epidemic situation. In the first quarter of 2020, Ping An Life Insurance is expected to be -15%, and 0% is expected. We expect the Group to predict an ev growth rate of 15.

8%, corresponding to an embedded value of 76.

06 yuan, the current sustainable corresponding pev is 1.

09 times, continue to give a buy evaluation risk reminder: the equity market has fallen sharply, the long-term risk-free rate of return has continued to fall sharply, the rate of agent recruitment has continued to decline, and agents affected by the epidemic have been unable to interview customers for a long time;