CPIC (601601) 2018 Annual Report Comments: New Business Value Realizes Positive Growth Property Insurance Fees Expected to Continue to Decrease
Investment Highlights CPIC’s 2018 performance was slightly better than expected, and operating income and net profit maintained high growth.
The scale of the company achieved 3,544 trillion operating income, an increase of 10 per year.
9%, the net profit attributable to the parent company is 180 ‰, with an annual increase of 22.
The increase in the proportion of life insurance long-term protection business promoted the increase in the value of new business, and the value of new business achieved positive growth, which was better than expected.
The company’s new premium income from life insurance agent channels in 2018 was US $ 46.7 billion, which gradually declined5.
6%, basically Document No. 134, had a contradictory impact on the sales volume of the first-open red annuity products in the first quarter, but the margins gradually improved in the third quarter.
Driven by long-term protection business, the company’s new business value rate was 39 in 2017.
4% to 43 in 2018.
7%, thus realizing new business value1.
A positive 5% increase is better than the Air Force expected.
In addition, renewal 杭州夜网 premiums led to a total premium of 15.
With a high growth rate of 3%, the premium structure is also relatively stable.
The core team of the company’s life insurance agents continued to grow, and the average monthly healthy manpower and outstanding performance increased respectively.
8% and 14.
6%, the transformation proposed for the company2.
0 cationic sill.
The income side of the property and casualty insurance business has grown steadily under the leadership of non-auto insurance. The comprehensive cost ratio has dropped slightly, and the profit side is expected to pick up in 2019.
The company’s property insurance business’s premium income in 2018 was 117.8 billion U.S. dollars, an annual increase of 12.
6%, the growth rate is slightly higher than the industry average, non-auto insurance premium growth rate is much higher than the vehicle insurance, consistent with the trend of the entire industry.
We believe that under the background of the price competition caused by the commercial car fee reform and the decline in the growth rate of new car sales, the growth rate of auto insurance premiums will be relatively short-term.
The company’s comprehensive cost of property and casualty insurance business in 2018 replaced 98.
4%, a decrease of 0 from 2017.
4 averages, of which the expense ratio has increased and the payout ratio has decreased.
The profit of the company’s property insurance business appeared 6.
Negative growth of 9% was initially due to increased expenses due to rising program fees, but the situation has improved in the fourth quarter.
Looking at the data, in 2018, CPIC Property Insurance’s program fee expenditure accounted for the premiums earned and the effective tax rate were 23 respectively.
7% and 46.
3%, an increase of 2.
3 digits and 8.
In 2019, under the industry association’s “report and bank integration” self-discipline convention and the expansion of regulatory authorities, the proportion of disposal fees will continue to decline. We believe that the profit of property insurance companies will pick up.
Asset allocation remained relatively conservative, and total investment yield was slightly skewed by the poor performance of the secondary market.
In 2018, the company mainly increased the allocation of fixed income assets such as time deposits and government bonds, and reduced the allocation of stocks and funds. The proportion of fixed income assets reached 83.
1%, higher than peers, asset allocation remains relatively conservative.
The company’s investment yield in 2018 was slightly tilted by the poor performance of the secondary market, with a net investment yield and a total investment yield of 4 respectively.
9% and 4.
6%, slightly before 2017.
We slightly adjusted the company’s EVPS in 2019, 43 in 2020 and 2021.
29 yuan, 50.
58 yuan and 58.
70 yuan, EPS is 2 respectively.
45 yuan, 2.
96 yuan and 3.
61 yuan to 2019.
At 22 closing prices, the corresponding PEVs are 0.
66 and 0.
56, the corresponding PE is 13.
19 and 9.
18. We give a prudent overweight rating.
Risk warning: interest rates fall, premium income is less than expected, and investment income declines.