China Life Insurance (601628) 2018 Annual Report Review: Channel Structure Optimization 2019

China Life Insurance (601628) 2018 Annual Report Review: Channel Structure Optimization 2019

Event company’s 2018 revenue was 6431.

01 billion, down 1 year.

5%; net profit attributable to shareholders of the parent company.

95 trillion, a year of -64.

7%, mainly due to a substantial decline in investment income to 951.

4.8 billion.

New business value 495.

11 trillion, down 17 a year.

64%; embedded value 7950.

5.2 billion, an annual increase of 8.

29%; basic profit return is 0.

39 yuan, down 65 each year.


Investment Points 1.

Premium income grows every year, and business structure improves. In 2018, China Life’s total premium income was 5,358.

26 ppm, a ten-year increase4.

66%, the new single premium income was 1711.

48 ppm, a decrease of 23 per year.


China Life’s new business value in 2018 was 495.

1.1 billion, a decrease of 17 per year.

64%, worse than peers.

In 2018, the company significantly reduced its premiums from bank and insurance channels.

The first year’s premium is 1044.

1.9 billion, accounting for 90% of the first year of long-term insurance premiums.

16%, an increase of 26 per year.

17, including premiums of 416 for ten years and above.

35 trillion, down -36 a year.

92%, accounting for 24% of new policy premiums.

33%, a decrease of 5 from the beginning of the year.

16pct; I pay a premium of 113.

99 ‰, a decrease of 82 per year.

1%, accounting for 36% of insurance premiums in the first year from 2017.

01% dropped to 9.


Renewal premiums amounted to 3646.

780,000 yuan, an increase of 26 in ten years.

6%, accounting for 68% of total premiums.06%, an increase of 11 a year.

79 units.

The company continued to promote product diversification, and the premium income of the top five products in the first year of long-term insurance decreased by 17%.

86 single; protection-type business developed rapidly, and premiums for specific protection-type products accounted for an increase in the proportion of premiums paid in the first year6.


73 units.


The improvement in the new business value rate pushed the NBV decline in the second half of the year to narrow, and the company’s embedded value was 7950.

52 ppm, a ten-year increase of 8.

3%, effective business value is 4089.

98 ppm, an increase of 12 in ten years.

46% of companies have a NBV of 495.

RMB 110,000, a decrease of 17 from 2017.

6%, mainly due to the long-term insurance premiums of long-term insurance in a personal insurance channel, which fell sharply.

For individual insurance channels, the company pays 795 for the first year of long-term insurance in 2018.

1.3 billion, down 12 a year.

19%, accounting for 19 of the individual insurance channels.

41%, a decline of 6 per year.

11 points.

The company’s NBV growth rate in the second half of the year was -8.

08%, an increase of -23 from the first half of 2018.

66% effective narrowing.

The main reason is that the company vigorously develops the payment and renewal business, and the NBV deposits of various insurance channels have increased significantly by 15 in the second half of the year.

27pct, the bancassurance channel has also improved.


The channel structure was optimized, and the agent team improved the total premiums of a insurance channel to reach 4082.

78 ppm, an increase of 15 in ten years.

44%, accounting for 76 of insurance business income.


The first year premium of this insurance is 792.

US $ 4.1 billion, accounting for 99% of long-term insurance business.

66%, an increase of 0 every year.

09 averages.

Among them, the proportion of premiums paid for the first year of five years and above and ten years and above accounted for 61% of the premium paid for the first year.

65% and 46.

35%; renewal premiums reached 3169.

30 ppm, an increase of 25 in ten years.


Banking and insurance channel sales staff reached 24.

50,000, a decrease of 27 from the end of 2017.
73%, the number of individual insurance channel teams reached 143.
90,000 people, down 8 every year.


Short-term average monthly effective sales staff increased by 2.


The company has accelerated the systematic operation of new personnel training and supervisor training, continued to improve management efficiency, actively promoted the development of support-oriented businesses, and the average monthly increase in the scale of manpower sales of specific support-oriented products has increased gradually.



The investment income dropped sharply, dragging down the performance in 2018, and the company’s total investment return was 3.

28% (Ping An of China, PICC, Xinhua Insurance, respectively, CPIC is 3.

7%, 4.

9%, 4.

6%, 4.

6%), falling by 1 every year.

88pct, total net investment yield 4.

64% (Ping An of China, PICC, and CPIC are 5 respectively.

2%, 5.

5%, 4.

9%), which decreases by 0 every year.

27 points.

By the end of the year, the company’s equity investment assets accounted for 13.

67%, a decrease of 1 from the previous year.

2pct, the proportion of fixed income investment is 77.

51%, an increase of 1 over the previous year.

49 points.

Affected by fluctuations in the capital market, the company’s investment income in 2018 was 951.

48 ppm, a decrease of 30 per year.



Continue to give full play to the advantages of science and technology, advance the technology of China National Life Strategy Co., Ltd. to deeply implement the development strategy of “China National Life”, actively promote the deep integration of new technology and business management, and apply the Internet of Things technology to the digital construction of offline service places by creating a digital platformAdd a firewall internet line 1.

570,000, the digitalization rate of physical outlets exceeds 80%; integrated integrated hybrid cloud, providing services for more than 500 million customers, more than 1.7 million sales staff and more than 100,000 employees; promoting the full process of paperless increase of staff and the construction of workplace online operationsTo build an online workplace3.

80,000, online team 9.

40,000; connected partners through the platform to jointly build a digital ecology, has aggregated more than 3,000 categories of services; “job” smart robots in 13 key cities, to achieve automatic counter questioning and intelligent guidance.

6.Estimates 杭州桑拿网 and investment recommendations In 2018, due to factors such as the capital market and other factors, the company’s investment income in 2018 was under pressure. In 2019, the company’s new ambassador proposed the strategic development slogan of “reorganizing China Life, and then set off.” This year’s start has shown a good momentum.

In 2019, the company will establish a customer-centric and market-oriented organizational structure system, promote the reform of the investment system, and at the same time strengthen the hard power of the sales team, focus on the revitalization of large and medium-sized cities, and issue a scale of RMB 350 in the national interbank bond market.The billion-dollar capital replenishment bond provides the necessary capital support for the company’s strategic execution.

We are optimistic 四川耍耍网 about the company’s development prospects, and it is expected that the EPS for 2019-2021 will be 0.



45 yuan, the corresponding PEV is 0.


62 times, maintaining the “recommended” level.

Risk reminders: China-US trade friction fluctuation risk; market system decline risk; performance is less than expected risk; long-term interest rate downside risk; regulatory risk