In the first week of construction, the State Administration of the Monetary Authority announced 2816 trillion insurance funds report card.
The return on financial investment in 2023 is 223%, with a comprehensive return on investment of 322%。
The annualized financial rate of return, which has a direct impact on profits, continued to decline, in 2021, 2022, and 2023, respectively. 23%。
In fact, from the third quarter of 2023, the annualized financial return has fallen to 292%。
This is the first time since the 2008 global financial crisis that it has fallen below 3%.
The main reasons for the continuous decline in the capital market and interest rates, coupled with the risks of real estate and urban investment bonds, and the increasingly "sinister" investment environment.
In 2023, 50 of the 75 non-listed property and casualty insurance companies will make a profit, with a total profit of 90600 million. 25 companies lost money, with a total loss of 43800 million. Combined, the profit is 45800 million. That's about 2.6 billion less than in 2022.
The situation is even more serious for life insurance companies.
Of the 60 life insurance companies that disclosed profit data, 25 were profitable, with a total profit of 1847.6 billion. 35 life insurance companies lost money, with a total loss of 3271.3 billion. Added up, a loss of 1423.7 billion. If Taikang's 13.7 billion profit is excluded, the rest of the non-listed life insurance companies have a total loss of about 28 billion.
As a product with the attribute of "just redeeming", it is extremely rare for the industry to have an overall loss. If the situation worsens, it means systemic risk.
Of course, the regulator is very clear about this situation.
The predetermined interest rate for 2020 is 4025% of annuity insurance is off the shelves;
The scheduled interest rate for 2023 is 35% of insurance is taken off the shelves;
Starting in 2024, the settlement interest rate of universal insurance of insurance companies will be lowered to below 4%, falling into the "3%" era;
After June this year, the settlement rate of universal insurance will be further reduced to 38% or less.
Starting in 2024, it will require "the integration of newspapers and banks".
In order to further prevent the risk of interest rate loss, the above can be regarded as a flood of power.
But insurers still seem to be stuck on the track of "size is king".
Before the high-interest rate products were taken off the shelves, the scale of the surge was more prominent, especially for small and medium-sized insurance companies and problem insurance companies.
Last year for the whole of 51 trillion premium income, to achieve 91% growth.
Property insurance premium income159 trillion yuan, an increase of 673%, and life insurance premium income 354 trillion yuan, a year-on-year increase of 1025%。Among life insurance companies, the fastest growing business is the life insurance business, with premium income reaching 276 trillion, a year-on-year increase of 1275%。
One of the main reasons for this is the predetermined interest rate of 35% of the product is discontinued stimulus.
It is precisely because of the rapid growth of the life insurance business that life insurance companies have achieved double-digit premium growth.
However, Ping An Life grew by 62%, Chinese life increased by 43% and Pacific Life grew by 49%, Xinhua Insurance increased by 172%。
None of the four listed insurers saw a 10% increase in their life insurance business.
Non-listed life insurers saw a 16% increase in premiums06%, much higher than that of listed insurance companies.
Small and medium-sized insurance companies rely on high-yield products to fight the best war.
For most small and medium-sized insurers, even if the premium income grows rapidly in 2023, it will still be difficult to make a profit. Coupled with the high cost of debt, a decline in investment income can lead to high losses.
In 2023, there will be 3 non-listed insurance companies with losses of more than 3 billion yuan (one loss of more than 10 billion yuan) and 6 losses of more than 1 billion yuan. In 2022, only 3 will lose more than 1 billion, and the largest loss will be less than 2 billion.
In 2023, there will be 14 C-rated companies and 12 D-rated companies, bringing a total of 26 companies to solvency standards. And that's not even counting the fact that many problematic insurers are exempt from disclosing solvency reports.
The hard days of the insurance industry have just begun.
Those who don't make money are not happy;
Those who make money do not dare to be happy, because they don't know when, the money will be gone.
After more than 20 years, the 69-year-old Ma Mingzhe returned to the front line of "fighting" again and once again served as the director of the Strategic Development Center of Ping An Group.
The current capital market, Treasury yields, and real estate and urban investment bonds, which are constantly at risk, still want to expand the scale, and then suddenly there is a big bull market to save the performance.
Moreover, the supervision is becoming more and more stringent, the popularity of insurance licenses has long declined, and relying on external capital injection, it is estimated that many insurance companies are also powerless.
Insurance companies can only reduce the cost of liabilities and make money to support themselves in a down-to-earth manner.
For insurers, especially those who sell coolies at the grassroots level, the future will be even more difficult. Whether the rice bowl can be firmly held in your hands is a big question mark.