New China Life Insurance Co., Ltd. Class A · SSE:601336
New China Life Insurance Co., Ltd. Class A — FY2020 Earnings Presentation
29 slides from New China Life Insurance Co., Ltd. Class A's earnings presentation, Mar 24, 2021
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: 2020 Annual Results Announcement
NEW CHINA LIFE 2020 Annual Results Announcement 25 March 2021 Beijing, China This document is for specific use only; the "Disclaimer" is an integral part of this document.
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 New China Life Insurance Company Ltd. (the “Company”) or any of its holding
Slide 4: Contents
CONTENTS OVERVIEW & LI Quan INSURANCE BUSINESS CEO & President FINANCIALS & YANG Zheng INVESTMENT Vice President & CFO GONG Xingfeng EMBEDDED VALUE Vice President, Chief Actuary & Board Secretary This document is for specific use only; the "Disclaimer" is an integral part of this document. 2
Slide 5: Overview
INSURANCE FINANCIALS & EMBEDDED OVERVIEW BUSINESS INVESTMENT VALUE OVERVIEW LI Quan This document is for specific use only; the "Disclaimer" is an integral part of this document. 3
Slide 6: Overview Business Performance
OVERVIEW Business Performance Unit: RMB in millions 159,511 39,022 240,604 39,022 9,182 39,022 +15.5% +53.7% +17.3% -6.1% Gross written FYP from long-term Value of one year’s premiums insurance business Embedded value new business 14,294 1,004,376 5.5% 606,000 -1.8% +14.3% +0.6pt +19.5% Net profit a
Slide 7: Overview Insurance Business
OVERVIEW Insurance Business Facing multiple challenges brought by COVID-19 in 2020, the Company seized market opportunities, gave full play to the synergy advantages of both assets and liabilities and enhanced industrial coordination. Meanwhile, the Company promoted integrated development of online
Slide 8: Overview Social Responsibility
OVERVIEW Social Responsibility Fighting COVID-19 Volunteer league Money donated RMB6.435 million 35 branches nationwide Donated sum assured 44,705 volunteers RMB71.73 billion 2,469 voluntary service Supplies donated activities RMB1.13 million Sanitation workers Targeted poverty project a
Slide 9: Overview Strategy
OVERVIEW Strategy Our Vision To be China’s best financial service group with comprehensive life insurance business as its core “One body, two wings+ technology empowerment” WEALTH OLD-AGE CARE & MANAGEMENT LIFE INSURANCE HEALTHCARE Investment Comprehensive protection Old-age care Asset management an
Slide 10: Overview Future Prospect
OVERVIEW Future Prospect In 2021, the Company will further integrate into the new pattern of national development, provide insurance protection, pursue high- quality development and forestall risks. Strengthen Party Abide by laws and building and play its regulations and forestall leading role risks
Slide 11: Insurance Business
INSURANCE FINANCIALS & EMBEDDED OVERVIEW BUSINESS INVESTMENT VALUE INSURANCE BUSINESS LI Quan This document is for specific use only; the "Disclaimer" is an integral part of this document. 9
Slide 12: Gross Written Premiums & Breakdown
INSURANCE Gross Written Premiums BUSINESS & Breakdown Unit: RMB in millions 15.5% 159,511 138,131 24.5% 39,022 53.7% 25,396 8.8% 7,525 4.7% 6,914 70.8% 2020 6.8% 105,821 112,964 18.4% 5.0% 76.6% 2019 2019 2020 FYP from long-term Premiums from short- Renewal premiums insurance business term insurance
Slide 13: GWP Breakdown by Channels
INSURANCE GWP Breakdown by Channels BUSINESS 1.5% Unit: RMB in millions 8.3% 45.6% -0.5% 24.9% 117,399 108,450 73.6% 2020 1.7% 39,729 19.8% 27,286 2,395 2,383 78.5% Individual insurance Bancassurance Group insurance 2019 Individual Bancassurance Group insurance 2019 2020 insurance This document is f
Slide 14: Individual Insurance Premiums
INSURANCE Individual Insurance Premiums BUSINESS Unit: RMB in millions FYP from long-term FYRP from long-term Premiums from short- Renewal premiums insurance business insurance business term insurance business 4.8% 0.5% 8.5% 15.0% 15,919 15,252 15,196 15,175 96,330 88,775 5,150 4,479 2019 2020 This
Slide 15: Individual Insurance Sales Team
INSURANCE Individual Insurance Sales Team BUSINESS Total agent 606,000 headcounts 19.5% 507,000 Monthly average 128,000 -3.8% number of qualified 133,000 agents Monthly 23.8% -9.2pt average qualified rate 33.1% 2019 2020 Notes: 1. Monthly average number of qualified agents = (Σ number of qualified a
Slide 16: Bancassurance Premiums
INSURANCE Bancassurance Premiums BUSINESS Unit: RMB in millions FYP from long-term FYRP from long-term Premiums from short- Renewal premiums insurance business insurance business term insurance business 125.9% 36.0% -2.4% 41.1% 23,027 17,036 16,623 5,667 10,194 4,166 56 79 2019 2020 This document is
Slide 17: Product Structure
INSURANCE Product Structure BUSINESS Unit: RMB in millions FYP from long-term Gross Written Premiums insurance business 17.2% 13.7% 16.8% 174.5% -11.1% 48.4% 60,381 60,039 17,963 51,538 52,790 11,638 36,909 10,350 10,709 31,602 6,544 7,214 Participating Health Traditional Participating Health Tradit
Slide 18: Business Quality
INSURANCE Business Quality BUSINESS Persistency ratio of individual life insurance business Surrender rate -0.3pt 90.3% 89.9% 1.8% 13-month 1.5 % 86.2% 25-month 84.9% 2019 2020 2019 2020 This document is for specific use only; the "Disclaimer" is an integral part of this document. 16
Slide 19: Financials & Investment
INSURANCE FINANCIALS & EMBEDDED OVERVIEW BUSINESS INVESTMENT VALUE FINANCIALS & INVESTMENT YANG Zheng This document is for specific use only; the "Disclaimer" is an integral part of this document. 17
Slide 20: Key Financial Indicators
FINANCIALS & Key Financial Indicators INVESTMENT Unit: RMB in millions Revenues Profits 18.5% 15.4% 29.5% Net profit 172,103 203,858 14,294 -1.8% 156,658 attributable to 135,744 35,842 46,400 shareholders of 14,559 the Company Total revenues Net written premiums and Investment income policy fees -1.
Slide 21: Investment Performance
FINANCIALS & Investment Performance INVESTMENT Unit: RMB in millions Investment assets Total investment yield Net investment yield 15.0% 0.6pt -0.2pt 965,653 5.5% 839,447 4.9% 4.8% 4.6% 31 Dec. 2019 31 Dec. 2020 2019 2020 2019 2020 This document is for specific use only; the "Disclaimer" is an integ
Slide 22: Investment Portfolio
FINANCIALS & Investment Portfolio INVESTMENT As at 31 December Change 2020 Proportion 2019 Proportion Investment assets （pt） Investment Portfolio as at 31 Dec. 2020 Term deposits 12.7% 7.6% 5.1 Debt financial assets 58.8% 65.6% -6.8 1.3% 0.5% 5.3% －Bonds 40.4% 42.7% -2.3 12.7% －Trust products 10.3%
Slide 23: Non-standard Investment Portfolio
FINANCIALS & Non-standard INVESTMENT Investment Portfolio As at 31 Dec. 2020 Proportion Unit: RMB in millions Amount Proportion Non-standard assets Change (pt) Non-standard Investment Portfolio Non-standard debt 175,061 75.1% -3.0 as at 31 Dec. 2020 investments －Trust product 99,831 42.8% 11.5 －Debt
Slide 24: Solvency
FINANCIALS & Solvency INVESTMENT Unit: RMB in millions Core solvency margin Comprehensive ratio solvency margin ratio Capital -15.36pt -5.8pt 283.64% 283.64% 277.84% 31/12/2020 31/12/2019 change 268.28% Core 280,817 261,164 19,653 capital Actual 290,817 261,164 29,653 capital Minimum 104,672 92,077
Slide 25: Embedded Value
INSURANCE FINANCIALS & EMBEDDED OVERVIEW BUSINESS INVESTMENT VALUE EMBEDDED VALUE GONG Xingfeng This document is for specific use only; the "Disclaimer" is an integral part of this document. 23
Slide 26: Embedded Value Composition Analysis
Embedded Composition Analysis Value Unit: RMB in millions 17.3% 240,604 205,043 93,313 13.6% Value of In-force 82,119 Business 19.8% Adjusted Net 147,291 Worth 122,924 31 Dec. 2019 31 Dec. 2020 Note: 1. The risk discount rate used for the measurement of value of in-force business was 11.0% as at 31
Slide 27: Embedded Value Analysis of Change
Embedded Analysis of Change Value Unit: RMB in millions Analysis of change in EV from Dec. 31, 2019 to Dec. 31, 2020 8,841 -3,494 -1,350 3,764 -4,399 240,604 3,847 146 950 18,074 205,043 9,182 EV at the Impact of Expected Operating Economic Operating Economic Change of Capital Others Value Change EV
Slide 28: Embedded Value of New Business
Embedded Value of New Business Value Unit: RMB in millions 36.5% VNB Margin(FYP) -6.1% 9,779 VNB Margin(APE) 9,182 30.4% 30.3% 19.7% 2019 2020 2019 2020 Notes: 1. The risk discount rate used for the measurement of value of new business was 11.0% in 2020. The risk discount rate used for the measureme
Slide 29: Thank you! Q&A
Thank you! Q&A This document is for specific use only; the "Disclaimer" is an integral part of this document.
New China Life Insurance Company — FY2020 Earnings Presentation on 6ix