China Life Insurance (601628) 2019 Interim Review: New Business Value High-Growth Agents Rise in Quality

Investment Highlights The average growth of the company’s operating income and net profit attributable to mothers in the first half of 2019 increased. The first is the release of profits from tax reduction policies and investment income increased compared to the same period last year.

The company’s total operating income in 2019H1 was 45.72 million yuan, a year-on-year increase of 12.

3%, the net profit 合肥夜网 attributable to the parent company is 376 ‰, an annual increase of 128.


The main reasons for the company’s outstanding growth include: 1.

The tax reduction policy will pay more than 51 years.

5 million US dollars of earnings are released as profits this year, and the tax reduction policy itself makes the company’s income required to pay this year significantly lower than last year; 2.

Investment income increased significantly compared with the same period last year.

The value of new business is constantly increasing, and the premium structure continues to be optimized.

In 2019H1, the company’s new single premium income reached 127.8 billion, an annual increase of 2%.

In the first quarter, the company’s sales volume reached the expected high level of open annuity products, and the sales rhythm was well grasped to achieve higher new single premium income. Therefore, in March and April last year, the high base due to sales strategy type annuity productsIn the background, the positive growth of new single premiums was still achieved in the first half of the year.

The company achieved total premium income of 378 billion in the first half of the year, an increase of 4 per year.

9%, the slowest growth rate is due to the higher base of new orders last year and the end of some 3-year product payment periods, leading to a decline in the growth rate of renewal premiums.

The company’s product structure continued to be optimized, and the bank guarantee was handed over to 86 of 2018H1.

4 megapixels are compressed to 0 in 2019H1.

12 ppm, the new single premium premium is 98%.

8%, an increase of 9 per year.

8 units.

At the same time, because the overall value of the company ‘s start-up products this year is higher than last year ‘s start-up products, combined with the optimization of the overall product structure, the company has gradually realized a new business value of 34.6 billion US dollars, with a growth rate of 22.


The quality of agents rose, which added a good foundation for future premium growth.

As of the end of the first half of 2019, the total sales force of the company was 190, an increase of 6.

7%, of which the insurance agent size is 157.

30,000 people, an increase of 9 from the end of last year.

3%, the growth rate is better than its peers. It is expected that the sales volume of economizing products will have a positive effect on agent income.

In terms of quality, the monthly effective sales manpower of individual insurance channels increased.

2%, of which the average monthly manpower sales of specific protection products expanded and increased52.

At 1%, the average monthly manpower for long-term insurance performance of the bancassurance channel insurance planner continued to increase 43.


On the investment side, the company mainly increased the allocation of stocks and funds in the first half of the year, and the total investment income increased significantly compared with the same period last year.

In terms of asset allocation, the company’s fixed income assets accounted for 75 at the end of 2019H1.

8%, a decrease of 1 from the end of last year.

7 shares; equity assets accounted for 15.

4%, an increase of 1 from the end of last year.

7 shares; long-term equity investment accounts for 6.

6%, rising by 0 every year.

1 unit.
With better secondary market conditions and a firm grasp of the market, the company achieved 5 in 2019H1.
The total return on investment was 77%, an increase of 1 over the same period last year.

99 units.

We slightly adjusted the company’s EVPS in 2019, 33 in 2020 and 2021.

06 yuan, 37.

20 yuan and 41.

66 yuan, EPS is 1.

66 yuan, 1.

83 yuan and 2.

14 yuan to 2019.


At 22 closing prices, the corresponding PEVs are 0.


78 and 0.

69, the corresponding PEs are 17, respectively.

42, 15

82 and 13.

52, we give a prudent overweight rating.

Risk warning: New single premiums are lower than expected, interest rates are down, and investment returns are down.