February 16, China life insurance (60 1628. SZ) announced 10 original premium income161200 million, a year-on-year increase of 30%. Behind the start of high premium growth, it is difficult to hide the downturn in performance, and its net profit has entered the most difficult period in history. China Life said in the performance forecast that it expects the net profit of 20 16 to drop by 40%-50% year-on-year. Under the double pressure of low interest rate environment and rapid premium growth, China Life is also looking for a breakthrough. Recently, it was announced that RMB 654.38+05 billion will participate in the increase of Shenwan Hongyuan, and its shareholding ratio will increase to nearly 654.38+00.8%, making it the actual second shareholder after central huijin.
1. Last year, China Life also spent 23.3 billion yuan to acquire shares of Guangfa Bank from Citigroup and others, and now it has a total shareholding of 43.69%, making it the largest shareholder. As a leader in the insurance industry, China Life has finally set up a financial map of "insurance+banking+securities". However, the reporter of China Times learned that China Life has a full financial license, but it doesn't want to do comprehensive finance. At present, these big investments are only for investment and layout. Premium deviates from performance. China's life insurance premium income maintained a growing trend, with the comprehensive income of 20 16 nearly 700 billion, and the comprehensive premium exceeded 500 billion for the first time. However, the net profit has fallen sharply. China Life expects the net profit attributable to shareholders of the parent company in 20 16 to be 34.699 billion yuan, down 40%-50% year-on-year. It said in the announcement that the main reasons are the decline in investment income and the renewal of the traditional assumption of the discount rate of insurance reserves.
2. A person from the investment department of an insurance company told the reporter of China Times that in the past year, the common difficulties faced by insurance funds were low interest rates and asset shortage, and it was difficult for insurance companies to achieve the benefits of catching up with the industry level. In 20 16 years, the profits of insurance companies were greatly impacted. Xinhua Life Insurance predicts that the net profit for 20 16 will drop by about 45% year-on-year. In addition, according to the forecast of CICC, the net profit of China Pacific Insurance, China PICC and China Taiping decreased by 44.9%, 39.4% and 39.0% respectively last year. However, China Ping An has become an "alternative" among listed insurance companies. Analysts generally expect that China Ping An's net profit will achieve double-digit positive growth in 20 16 years, because it adopts a comprehensive financial model, and the combination of banks and securities has become one of the reasons for its rapid growth.
On June 24th, 65438, Wang Junhui, chief investment officer of China Life Insurance Group, said at an internal meeting that efforts should be made to promote the transformation of asset allocation mode, from focusing on tactical operation to focusing on strategic allocation, focusing on allocation, focusing on fixed-rate products, focusing on asset-liability matching, and building an asset allocation model with multiple asset allocation as the core.
4. Obviously, the tens of billions of investments made by Guangfa Bank and Shen Wanhongyuan belong to a major strategic allocation. However, judging from China Life's accounting treatment of these investments, it does not want to take the road of comprehensive finance. In 20 16, an important event happened in the investment of China Life Insurance, which took over 23.69% of the shares held by Citigroup and IBM Credit at a cost of 233 12 billion yuan, thus holding 43.686% of the shares of Guangfa Bank and becoming the largest shareholder. It is reported that China Life has regarded its investment in Guangfa Bank as a long-term equity investment. However, the senior management of China Life said that after the delivery of Guangfa Bank, China Life did not consolidate Guangfa Bank, and Guangfa Bank was not a subsidiary of China Life, but an affiliated enterprise, which was accounted for according to the equity method.