Kunpeng Plan In the insurance industry, bank-based insurance companies are attracting attention due to their natural channels and customer advantages with large commercial banks. Among them, China Post Life Insurance Co., Ltd. (hereinafter referred to as "China Post Life") has long occupied the top 10 positions in the premium scale of life insurance companies with its strong background and remarkable performance, and it is the leader among "bank-based" insurance companies.
However, the recently disclosed solvency report for the fourth quarter of 2023 reveals another side of China Post Life:Although the premium income exceeded the 100 billion mark for the first time, reaching 10986.6 billion yuan, a year-on-year increase of 2016%, and the total assets also reached 482 billion yuan, an increase of 8% year-on-year, but what is shocking is that its net profit has a loss of 11.4 billion yuan. This huge contrast has attracted widespread attention and discussion in the industry.
The contradiction between premium growth and net profit loss
The business growth of China Post Life Insurance is undoubtedly significant, especially in the context of the downturn in the individual insurance channel, and the importance of the bancassurance channel is becoming increasingly prominent. Relying on China Post's strong channels and customer resources, China Post Life Insurance has achieved rapid growth in premium income. However, the loss of tens of billions of dollars has also exposed its deficiencies in investment management and risk control.
According to the information provided by China Post Life, the loss in 2023 was mainly affected by the adjustment of the discount rate of reserves and the lower-than-expected investment income. The adjustment of the reserve discount rate directly reduced the profit of China Post Life.112100 million yuan, and the volatility of the capital market also led to lower than expected investment returns, further exacerbating the extent of losses.
The ability to manage investments is questioned
Since its establishment in 2009, China Post Life Insurance Co., Ltd., as a life insurance company under China Post, has grown steadily in business scale, and its premium income exceeded the 50 billion mark for the first time in 2018, demonstrating its strong market competitiveness. However, the huge losses in 2023 have made the outside world question its investment management capabilities. Although China Post Life has made a series of adjustments in asset allocation, such as establishing an insurance asset management company and accelerating direct investment in real estate business, the fluctuation of investment income in the short term still has a significant impact on profit performance.
The challenge of diversifying the construction of channels
Over-reliance on bancassurance channels is another major challenge faced by China Post Life. Although the bancassurance channel has brought rapid business growth to China Post Life, its reliance on a single channel has also limited the diversification of its business. In order to break this situation, China Post Life Insurance began to try to build diversified sales channels, including increasing the expansion of individual insurance channels. In 2022, AIA's investment in China Post Life has brought new resources and experience, which is expected to help it achieve breakthroughs in individual insurance channels.
Conclusion
In the face of huge losses and challenges brought about by market changes, the future development of China Post Life is full of uncertainties. How to optimize the investment management strategy, improve the efficiency and income stability of asset allocation, how to diversify channels and products, and enhance market competitiveness are issues that China Post Life needs to seriously consider. At the same time, AIA's shareholding also provides new opportunities for China Post Life to transform and upgrade, and how to leverage AIA's experience and resources to achieve its own rapid development is also a major issue in front of China Post Life.
Shanghai Rafting believes that the experience of China Post Life Insurance is not only a case of an enterprise, but also reflects the common challenges faced by bank-based insurance companies in the current market environment. In the insurance market, where risks and opportunities coexist, how China Post Life adjusts its strategy and responds to challenges will be the focus of the industry.
How will the future development trend of China Post Life Insurance affect the competitive landscape of bank-based insurance companies? Everyone is welcome to leave your views in the comment area.