Ping An of China (601318) Company Quarterly Review: Outstanding Investment Performance New Business Value Rate Increases Significantly

Ping An of China (601318) Company Quarterly Review: Outstanding Investment Performance New Business Value Rate Increases Significantly

Investment Highlights: Ping An Life Insurance’s product structure has been optimized, although the premiums of its life and health insurance business in the first quarter fell by 10 per year.

8%, but the new business value still achieved 6% positive growth, and the new business value rate was 36.
.

8%, an increase of 5 per year.

9ppt.

We expect the growth rate of new business value in 2019 to reach more than 10%.

Ping An Property & Casualty’s life insurance business has grown steadily. Fintech has improved its efficiency and estimates. It is expected that it will continue to decipher in the future.

Ping An of China announces first quarter report for 2019: 1) Ping An of China achieved operating profit of USD 341 million in the first quarter of 2019, a year-on-year increase of 21%; net profit attributable to mothers of USD 45.5 billion, a gradual increase of 77%;USD 318 million, an increase of 4 per year.

2%, 2) Ping An’s net assets at the end of the first quarter of 2019 reached 599.1 billion, an increase of 7 from the end of 18 years later.

6%.

3) Ping An Life’s new business in the first quarter was worth 21.6 billion yuan, an annual increase of 6.

1%.

The high growth of net profit attributable to mothers is mainly due to the improvement in investment returns driven by the growth of the equity market.

1) Annual growth rate of net profit attributable to mothers: life insurance (123%), property insurance (77%), banks (13%), trusts (16%), securities (31%), other asset management (18%)Technology (-24%).

2) The size of the company’s insurance fund investment portfolio is nearly 2.

88 trillion, an increase of 3 from the beginning of the year.

2%.

Annualized net investment yield in the first quarter3.

9% (3 in the same period in 2018.

7%), with an annualized total investment yield of 5.

1% (3 in the same period in 2018.

7%).

Life insurance: Optimized product structure and significantly increased NBV margin.

1) In the first quarter, the company proactively adjusted its product structure and focused on the operation of high-value products. In the first year of life insurance and health insurance business, premiums decreased by 10 each year.

8%.

2) The new business value rate is 36.

8%, an increase of 5 per year.

9ppt.
The increase in the new business value rate was mainly due to the company’s reduction in the sales of short-term savings products, and more emphasis on the sale of long-term protection and mixed products of long-term protection savings.

3) Due to the rapid development of the size of agents in the past few years, in order to improve the quality of the team, the company strengthened its basic management actions and strict manpower assessment. The number of life insurance agents at the end of March was 131.

10,000, compared with 141 at the beginning of the year.

70,000 people fell 7.

5%.

4) In 2019, the company will pay more attention to high security and sales of high-value products. Through continuous optimization of its business structure, it will effectively increase the overall new business value rate.

We expect the growth rate of new business value in 2019 to reach more than 10%.

Property insurance: The high profit growth comes from the increase and decrease in investment income.

1) Ping An Property & Casualty Insurance’s original premium income in the first quarter was 69.2 billion yuan, an annual increase of 9.

5%, 杭州桑拿 of which auto insurance premiums increase by 8.

4%, non-auto insurance increased by 7 in three years.
4%, accident and health insurance increased 45 in ten years.

3%.

2) The comprehensive cost ratio of Ping An Property & Casualty Insurance reached 97.

0%, 95 earlier than the same period in 18 years.

9% rose by 1.

1ppt.

3) Benefiting from the improvement of the cost structure, the fee rate has decreased and the factor has continued to decline.

Ping An Property & Casualty’s first-quarter profit before tax rose 33.

8%, profit after tax increased 77.

3%.

The current consensus of Ping An of China corresponds to 1.

3x 2019 PEV, estimated to remain low.

At the end of the first quarter, the number of individual customers of Ping An Group was 1.

9.1 billion, an earlier increase of 3.

6%, of which 34.

6% of customers also hold joint venture subsidiary contracts.

Ping An Property & Life Insurance business grew steadily, and fintech improved efficiency and estimates.

Democracy is subject to downward economic and interest rate expectations, and insurance stocks are unlikely to increase significantly.

In March 2019, the PMI exceeded expectations, and the economy is expected to stabilize and recover.

At 4%, the narrowing of the spread allows for mitigation, and it is estimated that insurance stocks have room for improvement.

Give China Peace 1.

4-1.

5 times the 2019 PEV, corresponding to a reasonable estimate of 93.

25-99.

92 yuan, maintain the “primary market” rating.

Risk reminders: 1) the downward trend of interest rates; 2) the stock market plummeted; 3) the protection-type growth is less than expected.