Looking back on the development of the insurance industry in the first half of the year, a sudden outbreak disrupted many established plans, especially the offline agency business of personal insurance once fell into the ice pit. However, on the whole, insurance giants have made good achievements in premium income.
Specifically, in the first half of the year, the five listed insurance companies achieved a total of 1.52 trillion yuan of original premium income, a year-on-year increase of 6.3%, which is significantly improved from the 4.07% year-on-year growth rate in the first quarter. At the same time, from the perspective of the whole industry, according to the spokesperson of the CIRC, the premium income in the first half of the year was 2.7 trillion yuan, an increase of 6.4% year-on-year. It can be seen that despite the impact of the epidemic, the business of the insurance industry has maintained a growth momentum in the first half of the year. At the same time, since the second quarter, insurance companies are gradually getting rid of the impact of the epidemic and speeding up their own development. Compared with the first half of the year, the business development of the insurance industry in the second half of the year will further recover.
However, in terms of net profit in the first half of the year, analysts forecasts are less optimistic. At present, a number of securities companies have issued research reports to forecast the net profit of listed insurance companies in the first half of the year. Although the forecast values of the net profit of specific insurance companies vary greatly, they all hold the view of year-on-year decline. Among them, CICC believes that the net profit of listed insurance companies in the first half of the year is expected to drop by 22%; Shenwan Hongyuans forecast value is a year-on-year decrease of 24.7%; and that of Haitong Securities is a year-on-year decrease of 25%.
There are special reasons for the decline of net profit. In May 2019, the Ministry of Finance and the State Administration of Taxation issued the announcement on the pre Tax Deduction Policy for handling charges and commission expenses of insurance enterprises, and traced back to 2018. Shen wanhongyuan interprets that the income tax in the second quarter of 2019 reflects the effect of reducing the actual tax rate for six consecutive quarters from the first quarter of 2018 to the second quarter of 2019, which is reflected in the current non recurring profit and loss. Therefore, the year-on-year growth rate of net profit of insurance enterprises after deducting non recurring profit and loss in the first half of this year is more referential. From this perspective, the net profit of listed insurance enterprises is on a year-on-year basis Much better.
Multi measures to ensure annual target
At the mid year work meeting held yesterday, Wang tingke, vice chairman, President and Deputy Secretary of the Party committee of PICC, stressed that in the second half of the year, we should adhere to the set goals and tasks set at the beginning of the year, adhere to the general keynote of seeking progress while maintaining stability, adhere to the 3411 project of transformation to high-quality development, and seek new opportunities, open new situations, promote innovation and promote transformation in the development mode We will spare no effort to ensure that the annual targets and tasks are fulfilled with high quality. The key tasks include tackling difficulties to ensure that the annual goals and tasks are fully achieved; focusing on key projects to promote the implementation of the 3411 project; adhering to the priority of benefits, focusing on promoting cost reduction, efficiency improvement and fine management; keeping the bottom line of risks and doing a solid job in preventing and resolving major risks.
At the mid year working meeting held on July 21, Wang Bin, chairman of China Life Group, stressed that it was necessary to rely on reform and innovation to cultivate new opportunities and open a new situation. He pointed out that at present, revitalizing national longevity is facing an environment of increasing complexity and increasing variability, so we must rely on reform and innovation to cope with the changing situation and open up a new situation. We should focus on promoting the work in the second half of the year in accordance with the four aspects of comprehensively promoting the three major transformations, comprehensively improving the management efficiency, comprehensively accelerating the scientific and technological innovation, and comprehensively deepening the comprehensive business reform. The three major transformations refer to the transformation to equal emphasis on sales and service, to the dual drive of human science and technology, and to the organic unification of value scale. Wang Bin said that this is the fundamental move to revitalize national longevity and the only way to promote the companys high-quality development in the post epidemic era. The core axis is value creation.
At the same time, Yuan Changqing, President of China Life Group, put forward four overall plans for the work in the second half of the year: to make overall plans for epidemic prevention and control and business development, to give overall consideration to business scale and business value, to promote strategy implementation and management reform, and to handle business operation and risk prevention and control as a whole. Strive to achieve the annual business objectives. Yuan Changqing pointed out.
In addition, China Taiping Insurance Group recently firmly stated at the mid year work meeting that it would spare no effort to complete the annual business objectives and tasks, win the market, compete for advancement, stabilize growth and enhance value. In the mid year working meeting held on July 22, Taiping Life Insurance clearly defined the three musts, namely, the goal must be achieved, the reform must be profound, and the orientation must be accurate.