Our reporter Su Xiangyi
Trainee journalist Yang Xiaohan
The near futureAdultvideoarcadesLife insurance companies have disclosed their solvency reports in the first quarter of this yearAdultvideoarcadesThe operation of banking and insurance companies in the first quarter, which attracted much attention from the industry, was also announced.
According to statistics from the Securities Daily, China Post Life, ICBC Axa Life, Agricultural Bank of China Life, Jianxin Life, China Merchants Cigna, Bank of China Samsung, BoCom Life, Sino-Dutch Life and Everbright Yongming Life achieved a total net profit of 7% in the first quarter of 2024.Adultvideoarcades0.06 billion yuan, "turning losses into profits" compared with the same period last year. Specifically, the net profits of the nine insurance companies were differentiated, and six of them made profits, with a total net profit of 30%.AdultvideoarcadesThe three insurance companies suffered losses of .49 billion yuan, with a total loss of 2.343 billion yuan.
Experts interviewed said that the differentiation of the net profit of banks is affected by, on the one hand, the implementation of the new accounting standards, and on the other hand, by factors such as fluctuations in the capital market and business transformation on the debt side. Under the influence of the policy of "integration of newspaper and bank" and the recent policy of abolishing the limit on the number of cooperation between bank outlets and insurance enterprises, in the future, banks and insurance enterprises need to rely on brands, products and services to build competitive advantage.
Rapid growth of insurance business income
In the first quarter of this year, the insurance business income of banking insurance enterprises increased rapidly. In total, the nine insurance companies achieved insurance business income of 178.036 billion yuan, up 25% from the same period last year. Specifically, China Post's life insurance business income ranked first with 73.658 billion yuan; ICBC Axa Life Insurance and Agricultural Bank of China Life Insurance ranked second and third with 19.622 billion yuan and 19.377 billion yuan respectively; Jianxin Life Insurance and China Merchants Cigna Life Insurance business income both exceeded 10 billion yuan.
In this regard, Li Wenzhong, former deputy director of the Insurance Department of the Capital University of Economics and Economics and deputy director of the Rural Insurance Research Institute, told the Securities Daily that judging from the data, the overall insurance premiums of banking insurance companies have increased by a large margin, which shows that the products of banking insurance companies are still popular in the market when market interest rates continue to decline.
In terms of net profit, China Post Life ranked first with a net profit of 2.754 billion yuan, while Bank of China Samsung Life and Agricultural Bank of China achieved net profits of 159 million yuan and 61 million yuan respectively. At the same time, there are three insurance companies losing money, of which Jianxin Life Insurance has the highest loss of 1.253 billion yuan.
From the perspective of the trend of year-on-year changes, among the nine bank insurance companies, four insurance companies, including China Post Life, Bank of China Samsung Life, China Merchants Cigna Life, and Sino-Dutch Life, turned from losses to losses, and the net profits of two insurance companies decreased by more than 90% compared with the same period last year. Among them, the most dramatic changes are China Post Life Insurance and Jianxin Life Insurance. China Post Life lost 2.504 billion yuan in the first quarter of last year and made a profit of 2.754 billion yuan in the first quarter of this year, turning losses into profits. Jianxin Life made a profit of 188 million yuan in the same period last year, compared with a loss of 1.253 billion yuan in the first quarter of this year.
The impact of the new policy has attracted much attention.
Recently, the State Administration of Financial Supervision and Administration issued a notice on matters related to the insurance business of commercial banks, abolishing the limit on the number of cooperation between bank outlets and insurance companies. As banking insurance companies generally rely on bancassurance channels, the impact of the new policy on banking insurance enterprises has also attracted much attention from the industry.
Li Wenzhong said that on the one hand, liberalizing the restrictions on the number of cooperation between bank outlets and insurance companies will make insurance companies compete more fiercely in the bancassurance channel, which may have a certain impact on banking insurance companies. On the other hand, for banking insurance companies, bancassurance channel is usually the most important sales channel of insurance products, although it is affected by the level of commission, but its equity relationship with banks has a greater impact. Under the rule of "integration of newspaper and bank", the influence of commission level will be weakened, while the influence of equity relationship on the cooperation between banks and insurers will be more prominent, and the sales cost of banking insurance enterprises will decrease when the commission is more regulated. Competitive advantage may be further strengthened rather than weakened.
Zhou Jin, a management consulting partner in PricewaterhouseCoopers' China financial industry, told the Securities Daily that most banks are deeply bound or interdependent with their parent banks, and the impact is not expected to be very significant. Liberalizing the restrictions on cooperation between bank outlets and insurance companies will have a greater impact on the market-oriented competitive relationship.
Zhou Jin further said that under the influence of the superposition of the policy of "integration of newspapers and banks" and the cancellation of quantitative restrictions on cooperation, insurance companies will not be able to compete on premium rates in the future, but will increasingly rely on brands, products and services to compete.
China Post Life has previously said that the deep integration of bancassurance channels is no longer a simple market choice, but will become a strategic consideration. In the original "shelf" marketing model, it is actually very difficult to empower banks and insurance companies in depth. In the future, banks and insurance companies will certainly have more coordination and integration in product development and customer co-operation, and "integration of newspaper and bank" will further accelerate the trend of deep integration of banking and insurance.