China Pacific Insurance (Group) Co., Ltd. Class A · SSE:601601
China Pacific Insurance (Group) Co., Ltd. Class A — FY2018 Earnings Presentation
28 slides from China Pacific Insurance (Group) Co., Ltd. Class A's earnings presentation, Mar 25, 2019
Slide 1: Overseas Regulatory Announcement
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in relia
Slide 2: 2018 Annual Results Presentation
2018 Annual Results Presentation China Pacific Insurance (Group) Co., Ltd. March 26, 2019
Slide 3: 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 China Pacific Insurance (Group) Co., Ltd. (the “Company”) or any holding co
Slide 4: "Geared up"
2018 was a year when we prepared and “geared up” for Transformation 2.0. In the past year, we adhered to high-quality development, stayed focused on the core business of insurance, and achieved steady development on the back of bold steps in the implementation of transformation. 3
Slide 5: Solid business performance in the context of high-quality development
Solid business performance in the context of high-quality development Group Operating Revenue Life Insurance NBV Margin Group Comprehensive Solvency Margin Ratio 354.363 RMB billion 43.7% +4.3pt 301% +10.8% +17pt Group Net Profit Life Insurance One-year NBV 18.019 RMB billion 27.120 RMB billion CPIC
Slide 6: Shareholder dividend on steady increase since IPO
Shareholder dividend on steady increase since IPO Dividend per Share (unit: RMB yuan) 1.00 1.00 0.70 0.80 0.40 0.50 0.30 0.30 0.30 0.35 0.35 0.35 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Pay-out Ratio (unit: %) 89.9 Average Pay-out 62.5 Ratio 51.1 52.6 49.4 50.3 35.2 36.2 39.1 41.
Slide 7: "Geared up" for implementation of Transformation 2.0
“Geared up” for implementation of Transformation 2.0 Core New Business Organizational Business Segments Health Areas Successively started 13 projects, with Headquarters positioned definition of the targets, responsible Strengthening the person and quarterly milestones for to drive value growth v
Slide 8: Collaboration added greatly to our service capabilities
Collaboration added greatly to our service capabilities Cross-sell premiums Penetration ratio of Market share in Bidding success ratio Agreements of of auto insurance by individual customers pilot areas of tax- for occupational strategic co-operation life agents of our life operation deferred pensio
Slide 9: Investment in new business areas expanded our scope of service
Investment in new business areas expanded our scope of service A retirement community in Chengdu, the first of its kind in our history, has started its construction, marking a firm step forward in the building of “CPIC Home” series of retirement Dedicated insurance products communities, with proje
Slide 10: Digitalization empowered growth
Digitalization empowered growth Launched the CPIC APP, The Lingxi robot series Over 20mn the unified portal for A minimum of provides insurance service downloads customer access. 12 minutes under multiple scenarios, and reduces the claims turnaround considerably. AlphaInsurance, an AI Taihaobao,
Slide 11: Outlook
Outlook 2019 will be a year to overcome difficulties. We will concentrate resources to accelerate the shift of the development mode, and achieve breakthroughs in priorities on the transformation agenda. We will enhance CPIC branding, improve service capabilities and move firmly towards industry lead
Slide 12: Performance Analysis
Performance Analysis 6
Slide 13: Group customers grew by over 10 million annually for the past 3 consecutive years
Group customers grew by over 10 million annually for the past 3 consecutive years, with continued increase in the level of protection Group Number of Customers (Unit: million) +10.89 +11.09 Number of customers with 2 +10.08 insurance polices or above 104.44 115.53 126.42 94.36 20.26 million +28.1% 3
Slide 14: Life Business (1/4)
Life Business (1/4) NBV growth recovered in second half and turned positive for the whole year, with growth more balanced New Business Value (Unit: RMB million) 2017 2018 19,746 16,289 10,831 6,977 H1 H2 Share of Full Year NBV 26,723 27,120 2017 2018 73.9% 60.1% 39.9% 26.1% 2017 2018 H1 H2 13
Slide 15: Life Business (2/4)
Life Business (2/4) Business mix improved, with sustained increase in NBV margin and fast growth of residual margin Long-term Protection Business NBV Margin (Unit: RMB million) (Unit: %) 49.1% 39.4 43.7 41.7% 32.9 2016 2017 2018 Residual Margin 28,313 30,499 (Unit: RMB million) 2017 2018 285,405 228
Slide 16: Life Business (3/4)
Life Business (3/4) Fast growth of total premiums driven by renewal business, with business quality remained at high levels Gross Written Premiums 13-Month Policy Persistency Ratio (Unit: RMB million) (Unit: %) 92.3 93.4 92.9 202,414 90.3 175,628 46,704 -5.6% 2015 2016 2017 2018 49,484 Surrender Rat
Slide 17: Life Business (4/4)
Life Business (4/4) Core sales force maintained stability Monthly Average Number of High- Number of Agents performing Agents (Unit: thousand) (Unit: thousand) Monthly Average Number of Agents at Number of Agents Year End 130 149 2017 2018 Monthly Average First Year Commission (Unit: RMB yuan) 874 84
Slide 18: Property and Casualty Insurance (1/4)
Property and Casualty Insurance (1/4) Combined ratio continued to improve Combined Ratio (Unit: %) 103.8 99.8 99.2 98.8 98.4 35.8 35.0 38.0 38.9 42.2 68.0 64.8 61.2 59.9 56.2 2014 2015 2016 2017 2018 Expense Ratio Loss Ratio Note: The property and casualty business on this slide refers only to CPIC
Slide 19: Property and Casualty Insurance (2/4)
Property and Casualty Insurance (2/4) Top-line growth recovered considerably Gross Written Premiums (Unit: RMB million) 117,808 104,614 +1.7% +1.7% 96,195 93,026 94,615 29,832 22,806 19,851 19,654 20,018 81,808 87,976 73,175 74,961 76,177 2014 2015 2016 2017 2018 Non-auto Business Auto Business Note
Slide 20: Property and Casualty Insurance (3/4)
Property and Casualty Insurance (3/4) Achieved underwriting profitability for both auto and non-auto business, with combined ratio continuing to improve Combined Ratio of Auto Business Combined Ratio of Non-auto Business (Unit: %) (Unit: %) 98.7 98.3 99.6 99.2 2017 2018 2017 2018 Note: The property
Slide 21: Property and Casualty Insurance (4/4)
Property and Casualty Insurance (4/4) Emerging business such as agricultural insurance grew rapidly, with the share of non-auto business increasing considerably Non-auto Business as a Share of GWPs Primary Agricultural Insurance Premium (Unit: %) (Unit: RMB million) 4,998 3,405 2017 2018 GWPs of Lia
Slide 22: Asset Management (1/3)
Asset Management (1/3) Steady increase in Group asset under management, with improvement in market competitiveness (Unit: RMB million) 1,703,517 Group AuM 1,418,465 Third-party 470,295 1,235,372 AuM 1,087,932 337,183 293,612 911,286 233,474 149,400 Group in- 1,233,222 1,081,282 house AuM 854,458 941
Slide 23: Asset Management (2/3)
Asset Management (2/3) Persisted in asset liability management, and optimised strategic asset allocation Group in-house investment portfolio 31 Dec. 2018 (%) Change (pt) Fixed income investments 83.1 1.3 Bonds 46.3 (1.9) Term deposits 10.4 0.8 Debt investment schemes 10.9 2.3 Wealth management produ
Slide 24: Asset Management (3/3)
Asset Management (3/3) Effectively dealt with equity market volatility, with comprehensive investment yield steadily rising Comprehensive Investment Yield Total Investment Yield Net Investment Yield (Unit: %) (Unit: %) (Unit: %) +0.3pt -0.8pt -0.5pt 5.4 4.8 5.1 5.4 4.6 4.9 2017 2018 2017 2018 2017 2
Slide 25: Group Embedded Value (1/3)
Group Embedded Value(1/3) Group Embedded Value (Unit: RMB million) 336,141 286,169 245,939 205,624 171,294 31 Dec. 2014 31 Dec. 2015 31 Dec. 2016 31 Dec. 2017 31 Dec. 2018 Note: Figures for 2016-2018 are calculated according to the CROSS requirement, and figures for 2014-2015 have not been restated.
Slide 26: Group Embedded Value (2/3)
Group Embedded Value(2/3) Composition of EV as at 31 December 2018 (Unit: RMB million) 181,631 (11,917) (2,898) 336,141 169,325 Group Value of in-force Cost of Minority Group adjusted net business before required shareholders’ embedded worth cost of required capital share of life VIF value capital 2
Slide 27: Group Embedded Value (3/3)
Group Embedded Value(3/3) Movement of Embedded Value (Unit: RMB million) 27,120 231 (172) (1,085) 2,827 3,985 (7,474) 3,748 336,141 286,169 20,792 EV as of Expected NBV Investment Operating Change to Diversification Change to Profit Others EV as of the end return on experience experience methods, ef
Slide 28: Isl
Isl i+ FRE —ii7K A MERI AS
China Pacific Insurance (Group) — FY2018 Earnings Presentation on 6ix