New China Life Insurance Co., Ltd. Class A · SSE:601336
New China Life Insurance Co., Ltd. Class A — FY2013 Earnings Presentation
26 slides from New China Life Insurance Co., Ltd. Class A's earnings presentation, March 2014
Slide 1: 2013 Annual Results Announcement
新华人寿保险股份有限公司 New China Life Insurance Company Ltd. 2013 Annual Results Announcement March 20140 This document is for specific use only, the ”Disclaimer“ is an integral part of this document
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: Agenda
Agenda 1 Overview 2 Insurance business 3 Investment performance 4 Embedded value 5 Strategy & outlook This document is for specific use only, the ”Disclaimer“ is an integral part of this document 2
Slide 4: Overview
Overview The year 2013 was the connecting year under the “Twelfth Five-Year Plan” of China during which the overall domestic economy was running steadily along with continuous adjustment to the economic structure. Due to the new impulse from regulatory policies, such as widening of insurance fund in
Slide 5: Key financial & business indicators
Key financial & business indicators Unit: RMB million 2013 2012 Change (%) Gross written premiums 103,640 97,719 6.1% Market share 9.6% 9.8% 0.2ppts Net profit attributable to 4,422 2,933 50.8% shareholders of the Company Total assets 565,849 493,693 14.6% Shareholders' equity 39,312 35,870 9.6% att
Slide 6: Key financial & business indicators (cont'd)
Key financial & business indicators (cont'd) Unit: RMB million 2013 2012 Change (%) Investment assets 549,596 479,189 14.7% Total investment income1 24,734 13,540 82.7% Total investment yield 4.8% 3.2% 1.6ppts Net investment yield 4.6% 4.7% 0.1ppts Embedded value 64,407 56,870 13.3% Value of one yea
Slide 7: Agenda: Insurance business
Agenda 1 Overview 2 保险业务 Insurance business 3 Investment performance 4 Embedded value 5 Strategy & outlook This document is for specific use only, the ”Disclaimer“ is an integral part of this document 6
Slide 8: Full year overview of insurance business
Full year overview of insurance business Gross written premiums First year premiums (FYP) Renewal premiums (RMB million) (RMB million) (RMB million) NCI ranking1： 3 3 Market share1： 9.8% 9.6% 103,640 33,693 70,511 97,719 33,129 64,026 57.3% 65.5% 54.9% 69.0% 42.7% 45.1% 34.5% 31.0% 2012 2013 2012 20
Slide 9: Full year overview of insurance business (cont'd)
Full year overview of insurance business(cont'd) 1Q2013 2Q2013 3Q2013 4Q2013 Adaptability of the team is Sales force and channels Sales of high-value Sales skyrocketed towards challenged by the newly gradually stabilized after products such as health the year-end, when first introduced value-driven
Slide 10: Insurance business - Agency channel
Insurance business - Agency channel Individual insurance agent renewal Individual insurance agent GWP Individual insurance agent FYP premiums (RMB million) (RMB million) (RMB million) 55.3% 45.8% 30.1% 44.0% 51.3% 25.6% 47,489 39,001 42,993 10,131 32,862 11.7% 8,488 16.5% 88.3% 83.5% 2012 2013 2012
Slide 11: Insurance business - Agency channel (cont'd)
Insurance business - Agency channel (cont'd) 10 years or above regular premiums as FYP contributed by health and Number of individual insurance a proportion of total FYP traditional insurance agents2 (RMB million) 30.9% 69.7% 17.3% 203,651 201,000 61.3% 2,273 1,499 254 351 24,121 24,390 2012 2013 20
Slide 12: Insurance business - Bancassurance channel
Insurance business - Bancassurance channel Bancassurance channel GWP Bancassurance channel FYP (RMB million) (RMB million) 68.4% 53.4% 51.5% 64.0% 21,569 22,669 52,163 53,395 76.5% 87.2% 23.5% 12.8% 2012 2013 2012 2013 Bancassurance GWP Percentage of total GWP Regular Single Percentage of FYP FYP fr
Slide 13: Insurance business - Group insurance and wealth management channel
Insurance business - Group insurance business and wealth management channel Group insurance business GWP Wealth management channel GWP （RMB million） （RMB million） 1,466 1,451 1,305 1,097 709 462 635 596 2012 2013 2012 2013 FYP Renewal premiums This document is for specific use only, the ”Disclaimer“
Slide 14: Insurance business - Product mix
Insurance business - Product mix 2013 premium breakdown by product Health insurance premiums as % of total GWP 77.55% 7.36% 5.91% 13.85% 0.04% 1.20% 7.36% Traditional Participating Universal Health Accident NCI's product mix is still primarily composed of participating insurance products, which co
Slide 15: Customer base
Customer base Number of customers Core customers as a percentage of new customers （People thousands） 27% 29,831 27,766 20% 2012 2013 2012 2013 This document is for specific use only, the ”Disclaimer“ is an integral part of this document 14
Slide 16: Agenda: Investment performance
Agenda 1 Overview 2 Insurance business 3 Investment performance 4 Embedded value 5 Strategy & outlook This document is for specific use only, the ”Disclaimer“ is an integral part of this document 15
Slide 17: Investment strategy and performance
Investment strategy and performance Investment assets Total investment yield Net investment yield (RMB millions) 549,596 4.8% 4.7% 4.6% 479,189 3.2% 2012 2013 2012 2013 2012 2013 This document is for specific use only, the ”Disclaimer“ is an integral part of this document 16
Slide 18: Investment strategy and performance (cont'd)
Investment strategy and performance (cont'd) Investment strategy Investment portfolio 1 Asset liability management as the foundation while preserving the security, liquidity and profitability of its managed funds Unit: RMB million 2013 2012 Change (%) 2 Maximize the investment portfolio returns on t
Slide 19: Agenda: Embedded value
Agenda 1 Overview 2 Insurance business 3 Investment performance 4 Embedded value 5 Strategy & outlook This document is for specific use only, the ”Disclaimer“ is an integral part of this document 18
Slide 20: Embedded value – composition analysis
Embedded value – composition analysis (RMB million) (10,990) 46,320 64,407 29,077 31 Dec 2013 Value of in-force business Cost of 31 Dec 2013 Adjusted NAV before deducting cost of required capital Embedded value required capital This document is for specific use only, the ”Disclaimer“ is an integral
Slide 21: Embedded value – analysis of change
Embedded value – analysis of change (RMB million) 5,740 (501) (217) (616) (558) - (387) (159) 64,408 4,236 56,870 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 experience assumption assumption
Slide 22: New business value
New business value Value of one year's new business New business margin (RMB million) 4,172 4,236 30.4% 25.6% 12.4% 10.6% 2012 2013 2012 2013 2012 2013 Based on first year premium1(FYP) Based on annual premium Note: equivalent2 (APE) 1. New business margin based on FYP = value of one year's new busi
Slide 23: Agenda: Strategy & outlook
Agenda 1 Overview 2 Insurance business 3 Investment performance 4 Embedded value 5 战略与展望 Strategy & outlook This document is for specific use only, the ”Disclaimer“ is an integral part of this document 22
Slide 24: Strategy and outlook
Strategy and outlook 2013 Strategic Transformation Progress Establishing and promoting NCI Executing policy enhancement, system Improving the value-driven full life-cycle service optimization, reform of innovation of product system mechanism driven by regional management, and customer needs manageme
Slide 25: Strategy and outlook (cont'd)
Strategy and outlook (cont'd) In 2014, China’s life insurance industry will usher in a series of new opportunities fordevelopment. Firstly, both the domestic and oversea economy is seen to be improved, which will provide economic basis for the sustainable growth of the life insurance industry.Meanwh
Slide 26: Q&A
Q&A This document is for specific use only, the ”Disclaimer“ is an integral part of this document 25
New China Life Insurance Company — FY2013 Earnings Presentation on 6ix