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China Life Insurance (601628) 2019 First Quarterly Report Review: Underwriting, Investment Both Performed Brightly, Profits Grew Sharply

China Life Insurance (601628) 2019 First Quarterly Report Review: Underwriting, Investment Both Performed Brightly, Profits Grew Sharply

Matters: China Life announced the 2019 quarterly report.

2019Q1 China Life achieved a net profit of 260 attributable to mothers.

500 million, a big increase of 92 in ten years.

6%; net assets attributable to mother at the end of the quarter was 3,642.

600 million, an increase of 14 earlier.

4%; NBV previously surged 28.

3%; annualized total investment income for the first quarter was 6.

71%, ten years +2.

79 points; annualized net investment income increased by 4.

31%, a slight decrease of 0.

05pct.

Comment: The business structure has improved and NBV has grown significantly.

China Life’s total premium income in the first quarter was 2723 trillion, which was +11 in ten years.

9%, of which the new single premium is 94 billion yuan, +8 in ten years.

9%.

The value of new business in the first quarter increased significantly in ten years.

3%, the new business value rate is expected to increase.

The new business structure has been significantly optimized: the proportion of premiums paid for new single-term insurance accounts for 98.

97%, an increase of 12 over the same period last year.

23pct; the overall premium renewal ratio is stable, with a renewal ratio of 65.

5%, an increase of 0 compared with the same period last year.

95 points.

The surrender rate in the first quarter has dropped significantly. The concentrated surrender period for short-term products in the past few years has passed.

96%; surrender insurance 0.

62%, a decrease of 3 per year.

34 points.

Thanks to the significant upward trend in the stock market, the investment performance was dazzling.

China Life’s annualized total investment income in the first quarter was 6.

71%, ten years +2.

79 points; annualized net investment income increased by 4.

31%, a slight decrease of 0.

05pct.
Thanks to the substantial growth of the stock market year-to-date, the bid-ask spread and fair value of equity assets have increased significantly.

The substantial increase in net profit was mainly due to the significant increase in investment income.

Agent growth has also helped fiscal recovery.

At the end of the first quarter of China Life, the insurance salesman was 153.

70,000 people, an 深圳桑拿网 increase of 6 over the end of last year.

8%.Compared with last year’s ranking, the difficulty of increasing agents has eased and the quality has been significantly improved.

The average monthly effective sales manpower growth of individual insurance channels.

9%, the average monthly manpower sales of specific protection products has further increased 59.

At 8%, the average monthly manpower for long-term insurance performance of the bancassurance channel insurance planner continued to increase by 58.

7%.

Investment suggestion: From the new strategic starting point, China Life has achieved dazzling results in both assets and debt in the first quarter of this year.

With the overall positive external environment (economic performance is generally better than expected, and long-term government bond yields have stabilized and increased), China Life’s own business structure has also been significantly optimized.

It is expected that China Life will strengthen sales of guaranteed products in the second quarter and gradually transform value growth.

We expect EPS / BPS to be 0 in 2019-2021.

80/1.

46/2.

06 (previous average 1.

06/1.

46/2.

06); 12.

01/12.

97/12.

34 (previous average 12.

18/13.

14/12.

51), it is estimated that the EV growth rate in 2019 is 15% -20%, giving 1 times PEV, the corresponding price range is 32.

4-33.

8 yuan / share, maintain the “recommended” level.

Risk warning: The equity market is volatile, new orders are selling less than expected, and the downward pressure on the economy is increasing.