China Pacific Insurance (Group) Co., Ltd. Class A · SSE:601601
China Pacific Insurance (Group) Co., Ltd. Class A — H1 2019 Earnings Presentation
25 slides from China Pacific Insurance (Group) Co., Ltd. Class A's earnings presentation, Aug 25, 2019
Slide 1: Overseas Regulatory Announcement
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in relia
Slide 2: 2019 Interim Results Presentation
2019 Interim Results Presentation China Pacific Insurance (Group) Co., Ltd. August 27, 2019
Slide 3: Disclaimer
Disclaimer These materials are for information purposes only and do not constitute or form part of an offer or invitation to sell or issue or the solicitation of an offer or invitation to buy or subscribe for securities of China Pacific Insurance (Group) Co., Ltd. (the “Company”) or any holding co
Slide 4: In the first half of 2019, on the one hand, we pursued steady development
In the first half of 2019, on the one hand, we pursued steady development in the new economic cycle, and delivered solid business results. On the other hand, we pressed ahead with Transformation 2.0 in a bid to enhance capabilities for long-term growth. 3
Slide 5: Solid business performance
Solid business performance (unit: RMB yuan) Group Gross Group Net Profit Group Asset under Written Premiums Management 207.809bn 16.183bn 1,873.028bn +7.9% +96.1% +12.5% Group EV Group Total Number Group Comprehensive of Customers Solvency Margin Ratio 365.116bn 133.52mn 296% +8.6% +7.10mn Note: The
Slide 6: Supported national strategies and fulfilled corporate responsibility
Supported national strategies and fulfilled corporate responsibility As a long-term institutional investor, we vigorously supported infrastructural projects in transport and energy in central Supported the Yangtze River Delta Region Integration Initiative, and western China. and particularly the
Slide 7: "Insurance products + service" showing initial success
“Insurance products + service” showing initial success CPIC Home Taibao Lanben Launched an experience center and a retirement Provides integrated solutions spanning community in Hangzhou, after substantial progress in the whole process of hospital visits, Chengdu and Dali, with deployment in eld
Slide 8: Increased collaboration to drive value growth
Increased collaboration to drive value growth Governments & Companies Individual Customers The number of customers which have entered into Auto Premium Cross-sold by Life Agents strategic partnership with us increased by 25% from the (unit: RMB million) end of 2018. So far we have formed strategic
Slide 9: Digital empowerment continuously improved operational efficiency
Digital empowerment continuously improved operational efficiency Fast-growing On-line Users Empowerment by Agency Channel App Upgrade of E-agricultural System (unit: million visits) Supports a variety of functions, like China’s first brand for agricultural customer relationships management, insu
Slide 10: Outlook
Outlook 2019 is a year for Transformation to overcome difficulties Push forward in an all-around way the development model of insurance products + services, making service our differentiating competitiveness. Accelerate the establishment of a new model for the agency channel, focusing on agent p
Slide 11: Performance Analysis
Performance Analysis
Slide 12: Group customers continued to grow, with steady increase in level of protection
Group customers continued to grow, with steady increase in level of protection Number of Customers with 2 Insurance Number of Group Customers Policies or above (unit: million) +7.10 23.45mn +15.7% 115.53 126.42 133.52 31 Dec. 2017 31 Dec. 2018 30 Jun. 2019 Average SA on Critical Illness per Customer
Slide 13: Group OPAT RMB13.606bn, an increase of 14.7%
Group OPAT RMB13.606bn, an increase of 14.7% (unit: RMB million) Life Insurance OPAT = Net Profits − Short-term Investment Movements − Others and Consolidation Cancelling-out Changes to Evaluation Assumptions − Material One-off Factors OPAT Attributable to Minority Shareholders 13,606 2,862 (4,881)
Slide 14: Life business (1/4)
Life business (1/4) NBV under pressure, with recovery in second quarter and growth more balanced New Business Value Quarterly Distribution of NBV (unit: RMB million) -8.4% -2.4pt -2.7% 36.2% 39.8% 16,289 14,927 39,307 41.4% 39.0% 38,238 63.8% 60.2% NBV NBV Margin Annualized New H1 2018 H1 2019 Busin
Slide 15: Life business (2/4)
Life business (2/4) Sustained growth of residual margin Residual Margin (unit: RMB million) 315,460 285,405 228,370 172,600 31 Dec. 2016 31 Dec. 2017 31 Dec. 2018 30 Jun. 2019 14
Slide 16: Life business (3/4)
Life business (3/4) Premiums driven by renewals, with business quality at healthy levels Gross Written Premiums Surrender Ratio (unit: RMB million) (unit: %) 138,428 131,037 -10.1% 26,305 3.1 29,247 100,674 88,730 1.2 0.8 0.9 0.5 13,060 11,449 H1 2018 H1 2019 H1 2015 H1 2016 H1 2017 H1 2018 H1 2019
Slide 17: Life business (4/4)
Life business (4/4) Core sales force maintained stability Agent Headcount (unit: thousand) Share of Total Headcount Number of Agents Active Agents 309,000 +0.6pt 894 796 High-performing Agents 168,000 +1.6pt H1 2018 H1 2019 First Year Premiums per Agent First Year Commission per Agent (unit: RMB yua
Slide 18: Property and casualty insurance (1/3)
Property and casualty insurance (1/3) Combined ratio stable, with rapid top-line growth Combined Ratio Gross Written Premiums (unit: %) (unit: RMB million) 98.7 98.6 68,247 60,685 40.7 39.4 22,114 16,830 58.0 59.2 46,133 43,855 H1 2018 H1 2019 H1 2018 H1 2019 Expense Ratio Loss Ratio Non-auto Insura
Slide 19: Property and casualty insurance (2/3)
Property and casualty insurance (2/3) Achieved underwriting profitability for both auto and non-auto business Combined Ratio of Auto Insurance Combined Ratio of Non-auto Insurance (unit: %) (unit: %) +0.4pt 98.0 98.4 101.7 99.5 H1 2018 H1 2019 H1 2018 H1 2019 18 Note: The property and casualty busin
Slide 20: Property and casualty insurance (3/3)
Property and casualty insurance (3/3) Auto insurance driven by renewal business and non-auto by emerging lines Auto Insurance Growth Attribution Agricultural Insurance (unit: RMB million) Innovated products, transitioning from cost indemnity to +2,287 income protection CPIC P/C and Anxin Agricul
Slide 21: Asset management (1/4)
Asset management (1/4) Steady increase in Group AuM, with improved market competitiveness Group Assets under Management (unit: RMB million) 1,873,028 Group AuM 1,665,641 Third-party 516,746 AuM 1,418,465 432,419 1,235,372 1,087,932 337,183 293,612 233,474 Group in- 1,356,282 house AuM 1,233,222 1,08
Slide 22: Asset management (2/4)
Asset management (2/4) Continued to optimize strategic asset allocation Group in-house investment portfolio 30 Jun. 2019 (%) Change (pt) Fixed income investments 82.6 (0.5) Bonds 43.8 (2.5) Term deposits 11.0 0.6 Debt investment schemes 11.1 0.2 Wealth management products 1) 9.9 1.5 Preferred shares
Slide 23: Asset management (3/4)
Asset management (3/4) Realized solid investment performance Comprehensive Investment Yield Total Investment Yield Net Investment Yield (unit: %) (unit: %) (unit: %) +1.1pt +0.3pt +0.1pt 5.9 4.8 4.8 4.5 4.6 4.5 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 22 Note: All on annualized basis.
Slide 24: Asset management (4/4)
Asset management (4/4) Credit risk of investment assets well under control External Credit Ratings of Corporate and Non- Mix and Distribution of Yields of government-sponsored Bank Financial Bonds Private Financing Instruments Average Average Share of Nominal Sectors Duration Remaining Share of Shar
Slide 25: HRTEA—iai7K A MERA ASE IE
HRTEA—iai7K A MERA ASE IE
China Pacific Insurance (Group) — H1 2019 Earnings Presentation on 6ix