Overall, the profitability of Laoqijia life insurance is still strong. According to the semi-annual report and the solvency report data disclosed by the life insurance companies, the total net profit of the old seven insurance companies in the first half of this year was 139.2 billion yuan. Overall, the total net profit of the old seven life insurance companies increased by more than 80%.
On May 29, the Ministry of Finance issued the Announcement on the Policy of Pre-tax Deduction of Processing Fees and Commission Expenditures for Insurance Enterprises. The new policy has made important changes. First, the upper limit of service fee deduction for property insurance companies and life insurance companies has been raised from 15% and 10% of premium income (after deduction of refund premium) to 18% respectively. Second, the new policy adds new provisions exceeding the ministry. Points are allowed to be deducted in the following year. Third, in 2018, the remittance and settlement shall be carried out in accordance with the provisions of this bulletin.
According to Tianfeng Securities Research and Report, the benefits of tax policy include two aspects: on the one hand, the tax burden in 2019 will be reduced by increasing the deductible proportion of the insurance companys handling fee rate before tax; on the other hand, some of the income tax overpaid due to commission overexpenditure in 2018 can be used to offset the income tax in 2019.
In addition to the above reasons, the old seven life insurance companies generally mention that, with the insurance company returning to security, the main products are transformed from low profit margin financial products to security products with high intrinsic value, and the overall profitability of life insurance is steadily improved.
While the old seven life insurance companies make big profits, 31 companies still suffer losses, accounting for 37% of the life insurance companies that have disclosed net profit data. This shows that nearly 40% of the life insurance companies have not yet made profits.
Earlier this year, McKinsey surveyed nearly 60 executives from more than 40 insurance companies. The survey results show that the industry is cautiously optimistic about the future development of small and medium-sized insurance companies. Many small and medium-sized insurance business staff said to the Securities Daily reporter that, with the intensification of competition in the industry, small and medium-sized insurance enterprises are facing many difficulties, how to break through the formation of a unique business model, testing the helm of each small and medium-sized insurance company.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425