New China Life Insurance Co., Ltd. Class A · SSE:601336
New China Life Insurance Co., Ltd. Class A — H1 2018 Earnings Presentation
28 slides from New China Life Insurance Co., Ltd. Class A's earnings presentation, Aug 29, 2018
Slide 1: 2018 Interim Results Announcement
Q NCI Rife GREG x RAS Be 2018 INTERIM RESULTS ANNOUNCEMENT Beijing - China August 29, 2018
Slide 2: 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 3: Contents
1 Overview 2 Insurance Business CONTENTS 3 Financials & Investment 4 Embedded Value 5 Outlook 2
Slide 4: Overview
Overview In the first half of 2018, the Company adhered to the principle of “making steady progress” and focused on the development of core business. Particularly in the second quarter, the Company accelerated the development of protection business with its core on health insurance, continued to opt
Slide 5: Key Business & Financial Indicators
Key Business & Financial Indicators Unit: RMB million1 1H2018/ 1H2017/ Indicators Change End of June 2018 End of 2017 Gross written premiums 67,870 61,239 10.8% First year regular premiums 11,217 16,654 -32.6% Regular premiums with payment 7,074 10,827 -34.7% periods of ten years or more Total asset
Slide 6: Contents
1 Overview 2 Insurance Business CONTENTS 3 Financials & Investment 4 Embedded Value 5 Outlook 5
Slide 7: Gross Written Premiums & Breakdown
Gross Written Premiums & Breakdown 10.8% 67,870 61,239 31.2% 14,122 68.8% 26.1% 19,101 1H2017 27.6% 53,748 20.8% 42,138 79.2% 1H2018 1H2017 1H2018 FYP Renewal This document is for specific use only; the "Disclaimer" is an integral part of this document. 6
Slide 8: First Year Premiums & Breakdown
First Year Premiums & Breakdown 12.8% 2,447 87.2% 18.7% 2,905 1H2017 16,654 32.6% 11,217 20.6% 79.4% 1H2018 1H2017 1H2018 Single Regular This document is for specific use only; the "Disclaimer" is an integral part of this document. 7
Slide 9: Term Structure & Product Structure
Term Structure & Product Structure FYRP with payment periods FYP from health insurance of 10 years or more % to total FYRP % to total FYP 55.5% 65.0% 63.1% 36.4% 10,827 12.8% 7,844 6,951 34.7% 7,074 1H2017 1H2018 1H2017 1H2018 This document is for specific use only; the "Disclaimer" is an integral p
Slide 10: GWP Breakdown by Channels
GWP Breakdown by Channels 12.2% 2.1% 19.1% 54,139 78.8% 48,265 1H2017 1.9% 6.3% 18.3% 79.8% 12,445 1.4% 11,706 1,286 1,268 1H2018 Individual Insurance Individual Bancassurance Group Bancassurance Insurance Insurance Group Insurance 1H2017 1H2018 This document is for specific use only; the "Disclaime
Slide 11: FYP Breakdown by Channels
FYP Breakdown by Channels 27.3% 6.5% 13,711 21.7% 71.8% 9,966 1H2017 30.4% 9.0% 4,146 2.1% 20.4% 70.6% 2,886 1,270 1,244 1H2018 Individual Bancassurance Group Individual Insurance Insurance Insurance Bancassurance Group Insurance 1H2017 1H2018 This document is for specific use only; the "Disclaimer"
Slide 12: Individual Insurance — FYRP & Renewal
Individual Insurance — FYRP & Renewal FYRP Renewal % to FYP from individual insurance 27.8% 91.4% 83.4% 44,173 34,554 12,537 33.7% 14.8% 8,308 22.5% 39.7% 85.2% 77.5% 1H2017 1H2018 1H2017 1H2018 Premiums with payment periods less than 10 years Premiums with payment periods of 10 years or more This d
Slide 13: Bancassurance — FYRP & Renewal
Bancassurance — FYRP & Renewal FYRP Renewal % to FYP from bancassurance 99.2% 99.2% 26.4% 9,559 7,561 4,114 30.4% 2,862 329.7% 1H2017 1H2018 1H2017 1H2018 Premiums with payment periods less than 10 years Premiums with payment periods of 10 years or more This document is for specific use only; the "D
Slide 14: Sales Force of Individual Insurance
Sales Force of Individual Insurance Total agents 334,000 0.3% Monthly performance rate1 53.6% 0.5pt Policies per performing agent 2.13 -8.8% Health insurance policies per agent 2.13 13.0% Premiums per policy ¥4,537 -19.8% Premiums per health insurance policy ¥ 3,465 -2.0% Notes： 1. Because the numbe
Slide 15: Business Quality
Business Quality Persistency ratio of individual Surrender rate life insurance business 90.7% 89.2% 4.0% 13-month 3.7% 84.7% 25-month 82.3% 1H2017 1H2018 1H2017 1H2018 This document is for specific use only; the "Disclaimer" is an integral part of this document. 14
Slide 16: Contents
1 Overview 2 Insurance Business CONTENTS 3 Financials & Investment 4 Embedded Value 5 Outlook 15
Slide 17: Key Financial Indicators
Key Financial Indicators 1H2018/ 1H2017/ Indicators Change End of June 2018 End of 2017 Total Revenues 82,967 76,263 8.8% －Net written premiums and policy fees 67,026 60,637 10.5% －Investment income 16,307 15,893 2.6% Benefits, claims and expenses (74,779) (70,543) 6.0% －Insurance benefits and claim
Slide 18: Investment Performance
Investment Performance Investment assets Total investment yield Net investment yield 5.7% 727,615 688,315 0.1pt 0.1pt 4.9% 4.9% 5.0% 4.8% 31/12/2017 30/6/2018 1H2017 1H2018 1H2017 1H2018 This document is for specific use only; the "Disclaimer" is an integral part of this document. 17
Slide 19: Investment Asset Allocation
Investment Asset Allocation As at Jun. 30 As at Dec. 31 Change 2018 (Proportion) 2017 (Proportion) Term deposits 7.8% 6.1% 1.7pts Debt financial assets 63.5% 67.3% -3.8pts －Bonds 37.3% 38.3% -1.0pt －Trust products 8.9% 9.3% -0.4pt －Debt plans 5.0% 5.8% -0.8pt －Asset funding plans 2.8% 2.9% -0.1pt －O
Slide 20: Non-standard Asset Portfolio
Non-standard Asset Portfolio As at Jun. Proportion Amount Proportion 30 2018 change1 change1 Non-standard debt 190,320 82.1% -0.8pt (9,366) investments －Trust product 64,694 27.9% 1.4pts 938 －Debt plan 36,290 15.7% -1.0pt (3,910) －Project asset support plan 20,000 8.6% 0.3pt - －Wealth management pro
Slide 21: Solvency Ratio
Solvency Ratio Comprehensive solvency Core solvency margin ratio1 margin ratio2 9.53pts 10.12pts 275.93% 266.40% 281.67% 271.55% 31/12/2017 30/6/2018 31/12/2017 30/6/2018 Indicators 30/6/2018 31/12/2017 Change Core Capital 206,913 192,528 14,385 Actual Capital 210,913 196,528 14,385 Minimum Capital
Slide 22: Contents
1 Overview 2 Insurance Business CONTENTS 3 Financials & Investment 4 Embedded Value 5 Outlook 21
Slide 23: Embedded Value—Composition Analysis
Embedded Value—Composition Analysis 7.9% 165,601 153,474 13.9% Value of In-force Business 60,264 4.0% Adjusted Net 96,966 Worth 93,210 31/12/2017 30/6/2018 Note: 1. Numbers may not be additive due to rounding. This document is for specific use only; the "Disclaimer" is an integral part of this docum
Slide 24: Embedded Value—Movement Analysis
Embedded Value—Movement Analysis Movement analysis from Dec. 31, 2017 to Jun. 30, 2018 6,935 2,186 313 55 165,601 153,474 6,451 (2,192) - - (1,622) EV at the Impact of Expected Operating Economic Operating Economic Capital Others Value Change EV at the end beginning of Value of New Return Experience
Slide 25: Value of New Business
Value of New Business 7,080 8.9% 6,451 50.6% 50.5% VNB Margin 41.4% (FYP) VNB Margin 39.3% (APE) 1H2017 1H2018 1H2017 1H2018 Notes: 1. The value of first half year’s new business as at 30 June 2017 was restated on a stand-alone basis using assumptions as at 31 December 2017. 2. NBV based on FYP = Ne
Slide 26: Contents
1 Overview 2 Insurance Business CONTENTS 3 Financials & Investment 4 Embedded Value 5 Outlook 25
Slide 27: Outlook
Outlook The Company will continue to carry out new development vision, adhering to the principle of making steady progress and striving to achieve targets made in the 13th Five Year Plan. Prioritize protection Improve sales business capabilities of team Enhance sales Optimize customer support servic
Slide 28: Q&A
Q&A
New China Life Insurance Company — H1 2018 Earnings Presentation on 6ix