Text|Sanzang edHalf comb
The stratification of the property insurance market and the survival plight of small and medium-sized property insurance companies have been topics in the industry for many years.
In particular, in the market-oriented reform of auto insurance, the largest property insurance type, the rise in the comprehensive cost ratio and the sluggish investment income in the past two years have exacerbated the difficulty of property insurance operation.
What about more small and medium-sized property insurance companies that are not optimistic? According to the statistics of the 2023 operating data of 71 non-listed property insurance companies:
71 companies achieved a total net profit of 56800 million yuan, of which 48 companies achieved positive profits, that is, more than two-thirds of non-listed insurance companies have achieved annual financial profits.
If we take into account the listed insurance companies that have already made a lot of money in underwriting profits, even if the net profit of the above 71 insurance companies fell by 17 year-on-year500 million yuan, property insurance operation is also quite interesting.
Even though there are still one-third of the losers, compared with the background of high profits of property insurance in 2022, the performance in 2023 is good.
Now that the Year of the Dragon has begun, can the property and casualty insurance industry maintain the trend of the past year and continue to "raise its head" in 2024? For more small and medium-sized insurers, can they learn from last year's experience? Is it to achieve a win-win situation between underwriting and investment, or to find an exclusive insurance strategy, or to achieve a counterattack of betting on investment? It's worth looking into.
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Small but beautiful is supported by data
20 small insurance companies achieved good net profits
In the property insurance market in 2023, 20 companies will rely on investment profits to achieve a win-win situation of underwriting profits and investment income while achieving positive underwriting profits. This number of companies accounts for about 30% of the number of non-listed insurance companies.
Among them, two property insurance companies with unique shareholder resources, Dinghe Property Insurance and Yingda Property Insurance, each recorded a net profit of more than 1 billion yuan, which can be described as the absolute winner among unlisted property insurance companies.
These two insurance companies not only boast of other non-listed property and casualty insurers in terms of underwriting profits, but also have good investment returns, with comprehensive investment returns and financial investment returns both above the industry average.
Although the return on investment of PetroChina Insurance and Huatai Property Insurance is less than 3%, they also recorded a net profit of more than 400 million yuan by relying on underwriting profits, which is more eye-catching among non-listed insurance companies.
Guoyuan Agriculture, on the other hand, has an investment yield of more than 5%, superimposed on the effect of underwriting profits, and its net profit ranking far exceeds its market ranking in terms of premium scale.
Although the investment ability of the remaining 15 companies is not eye-catching, they have achieved good net profit figures after superimposing the underwriting profit effect.
Looking at the above-mentioned insurance companies, it can be found that almost all of them have small premiums, but their profit margins are extremely good. For example, several foreign-funded property insurance companies represented by Meiya can be described as small but beautiful representatives.
This also means,Small and medium-sized companies have the opportunity to be supported by data to achieve specialization and beauty.
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The conditions of those who rely on investment to turn the market
The underwriting should not be too stretched, and the scale of the increase is the most effective
Among the 48 profitable non-listed property and casualty insurance companies, excluding the above-mentioned 20 companies that have achieved a win-win situation in underwriting and investment, there are still 28 companies that rely on the scale of investment income to pull up and turn around.
For example, China Life Property Insurance, which has the highest net profit among non-listed insurance companies, will have a net profit of 13 in 2023900 million yuan. However, its investment return rate is not high, but relies on the scale effect to form a pull on net profit in the amount of investment income.
The profit logic of China United is similar to that of China Life Wealth, and it is also the result of scale effect.
Taikang**, Yongan Property Insurance, Yuedian Self-Insurance, Huiyou Mutual, and Hengbang Property Insurance are driven by the improvement of the company's overall net profit with investment capabilities higher than the industry average.
The remaining 15 companies performed mediocre in terms of investment income, but as a result, they lost less money in terms of underwriting, which also achieved good net profit results.
However, in the final analysis, compared with the strength of the investment ability of insurance companies, as long as the investment does not fall behind, and the comprehensive cost ratio is controlled well and the loss is not too much, the scale effect is still the most obvious factor for the increase of net profit.
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Perspective turnaround
Pursuing underwriting improvements is king
It is also gratifying that while the total net profit of non-listed property insurance companies decreased year-on-year, there were still 38 companies that achieved a year-on-year increase in net profit, accounting for more than half.
Does this beautiful result of the financial operation of unlisted property insurance companies compared with the good years in the past mean that the operation and management level of the property insurance industry has improved?
Combined with the year-on-year change in net profit, it can be seen that 8 companies, including Zheshang Property Insurance, Zhonghui Mutual, Fude Property Insurance, Beibu Gulf Property Insurance, JD Allianz, CCB Property Insurance, Japan Xingya and Taiping Technology, have achieved a turnaround in net profit, accounting for 10% of the total number of companies.
What's more interesting is the reason why the above 8 insurance companies really turned around their lossesNot by the impact of investment income drivers, but by the result of improved underwriting margins.
If so, it can be seen that the property insurance industry has adhered to the logic of profitability for many yearsCompared with the fluctuation of the investment income cycle, the pursuit of underwriting profits is becoming the financial pillar of more enterprises.
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2 unfortunates: Huaan and Chengtai
Suffer from a double kill of underwriting losses and investment losses
In 2023, 5 property insurance companies will lose the capital market.
Among them, 2 companies suffered negative growth in underwriting profits and negative growth in investment income at the same time - Huaan Property Insurance and Chengtai Property Insurance.
Huaan ranks 11th in the industry in terms of market size due to its large size, and unfortunately has become the company with the largest net profit loss among non-listed insurance companies (excluding companies that have not yet released data), with a net profit value of -11700 million yuan.
This is the flip side of the scale effect, that is, once there is an underwriting loss or investment loss, the scale becomes a burden.
Chengtai Property Insurance is also "accidental" and loses at least more than 10% of its premium.
Compared with 2022, non-listed property and casualty insurance companies will be 17The net profit of 500 million yuan declined, and the net profit of the above two companies fell by a total of 15600 million yuan, accounting for 90% of the share.
However, these two companies may also be the property and casualty insurers with the best chance of turning around in 2024 - because whether it is adjusting the business structure or re-looking for good investment assets, it is possible to change its passive situation in 2023.
Postscript
Choices for 2024: Where are the opportunities?
The need for both scale and efficiency seems to have always been the eternal requirement of industry shareholders for management, and the balance and game between the two have also constantly tested the wisdom of operators.
How to make a decision is actually a test of grasping the rhythm of the insurance business cycle. In 2024, which type of insurance in the property and casualty insurance industry is more worth looking forward to?
Auto insurance has crossed the red line of 100% comprehensive cost ratio and is already a battlefield for large companies? Those who are already involved in the field of new energy vehicle insurance will be able to find new opportunities when some new ecological models and solutions are born in 2024?
Health insurance has achieved underwriting profits, will it be an opportunity to seize the main cycle of improving the scale and efficiency of commercial health insurance?
Those who have invested more energy in liability insurance and credit guarantee insurance in 2023 will have the opportunity to recover benefits in the pending processing of claims in 2024?
All of the above are worth looking forward to.
If the property insurance company steps on the rhythm of an insurance cycle, it is luck; Then the long-term business result is the accumulation of short-term trial and error
It is the grasp of the long-term stability of the insurance operation, and the "ultimate" embodiment of the company's core barriers and market competitiveness.
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