中国太保(02601) - 2019 - 年度财报

Annual Report Preamble: CPIC's Full Efforts in Fighting the Epidemic This section details China Pacific Insurance's comprehensive response to the COVID-19 pandemic, highlighting its social responsibility and support for frontline efforts and economic stability Overview of Anti-Epidemic Actions The company swiftly activated its emergency response, providing comprehensive support through donations, expanded insurance, innovative products, and upgraded online services - The company immediately activated its emergency plan and established an emergency command center to fully support epidemic prevention and control efforts[3][7] - Leveraging technology, the company innovatively launched online services such as "Video Doctor," "Cloud Counter," and "Mutual Trust Claims," ensuring uninterrupted service. During the epidemic, "Video Doctor" was used over 100,000 times, remote consultations exceeded 3.56 million cases, and online auto insurance claims under 10,000 yuan were completed 166,000 times[15] - To support enterprises in resuming work and production, the company introduced special protection plans, providing over 500 million yuan in risk coverage for 45 key material enterprises under the Ministry of Industry and Information Technology, and tailored products like the "Hainan Model" and "Ningbo Plan" to assist thousands of enterprises in resuming operations[17] - For small and medium-sized enterprises, the company opened green channels, offering policy loans, extending engineering insurance terms, and reducing premiums for certain industries, enhancing their sense of gain[18][19] - In the agricultural sector, the company utilized its e-agriculture digital system to provide online insurance applications and remote surveys, and launched the "Agricultural Supply Protection" comprehensive solution to ensure stable spring farming and agricultural product supply chains[20] Operating Overview This section highlights China Pacific Insurance's robust operating performance and steady growth in 2019, with increases in group operating revenue, net profit, and operating profit, alongside significant embedded value enhancement Operating Performance Highlights In 2019, the company achieved robust growth in revenue, net profit, and embedded value, with stable performance across its life, property, and asset management segments 2019 Key Operating Indicators | Indicator | 2019 | Year-on-Year Change | | :--- | :--- | :--- | | Group Operating Revenue | 385.489 billion yuan | +8.0% (Insurance Business Revenue) | | Group Net Profit Attributable to Parent | 27.741 billion yuan | +54.0% | | Group Operating Profit Attributable to Parent | 27.878 billion yuan | +13.1% | | Group Embedded Value | 395.987 billion yuan | +17.8% | | Life Insurance New Business Value | 24.597 billion yuan | -9.3% | | Life Insurance New Business Value Ratio | 43.3% | -0.4 percentage points | | Property Insurance Combined Ratio | 98.4% | Flat year-on-year | | Group Investment Assets Total Investment Yield | 5.4% | +0.8 percentage points | | Group Comprehensive Solvency Adequacy Ratio | 295% | -6 percentage points | - As of the end of 2019, the Group's customer base reached 139 million, an increase of 12.14 million from the beginning of the year[38] - The company was ranked among the Fortune Global 500 for the ninth consecutive year, rising to 199th place[42] Chairman's Statement This section presents Chairman Kong Qingwei's address, reflecting on the company's achievements under the "Transformation 2.0" strategy and outlining future strategic priorities for sustained high-quality development Core Content of Chairman's Statement Chairman Kong Qingwei reviewed the company's "Transformation 2.0" achievements, highlighting steady growth and strategic progress, and outlined future priorities for high-quality development and industry leadership - Over the past three years, the company's operating performance has grown steadily, with total assets achieving a compound annual growth rate of 14.4%, net profit doubling, and embedded value per share increasing from 27.14 yuan to 43.70 yuan[45] - The company has made key strides in the "product + service" model, accelerating the layout of high-end elderly care communities like "CPIC Home" and gradually improving the "CPIC Blueprint" health service system[45] - Technology empowerment has enhanced service capabilities, with the "CPIC Cloud" core system improving response capabilities for hundreds of millions of users, and the "Pacific Insurance" APP user binding exceeding 30 million[45] - Looking ahead, the company will combine "adhering to fundamentals" with "advancing to secure stability," focusing on key areas to achieve further breakthroughs in transformation, including reshaping life insurance value growth drivers, enhancing property insurance underwriting profitability, optimizing investment allocation, and increasing technological innovation supply[45] Operating Performance This section provides a comprehensive review of the Group's operating performance in 2019, detailing key financial and business metrics, and analyzing the performance of its life, property, and asset management segments Summary of Accounting and Business Data This chapter summarizes the company's key accounting data and financial indicators from 2015 to 2019, demonstrating continuous growth in assets, equity, revenue, and net profit, with significant increases in 2019 Main Accounting Data (2018-2019) | Main Accounting Data (million yuan) | 2019 | 2018 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 382,682 | 353,103 | 8.4 | | Net Profit (Attributable to Parent) | 27,741 | 18,019 | 54.0 | | Net Cash Flow from Operating Activities | 111,795 | 89,449 | 25.0 | | Total Assets (End of Year) | 1,528,333 | 1,335,959 | 14.4 | | Shareholder Equity (Attributable to Parent, End of Year) | 178,427 | 149,576 | 19.3 | Main Financial Indicators (2018-2019) | Main Financial Indicators | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan) | 3.06 | 1.99 | +54.0% | | Weighted Average Return on Net Assets (%) | 16.9 | 12.6 | +4.3 percentage points | | Net Assets Per Share (yuan, End of Year) | 19.69 | 16.51 | +19.3% | Operating Performance Review and Analysis The Group achieved steady operating performance in 2019 with significant revenue and net profit growth, alongside stable property insurance and strong asset management results, despite a decline in life insurance new business value Company Business Overview As a leading comprehensive insurance group, the company offers diverse services across life, property, health, pension, and asset management, underpinned by its focus on core business, prudent operations, and customer-centric transformation - The company holds full insurance licenses covering life insurance, property insurance, pension insurance, health insurance, agricultural insurance, and asset management, with balanced development across multiple business segments[57] - Core competencies include: focus on main business, prudent operation, transformation vitality, and social responsibility[57] Life Insurance Business In 2019, CPIC Life's new business value declined, but its value ratio remained stable, driven by renewal premiums, while CPIC Allianz Health achieved rapid growth and first-time profitability CPIC Life Business Key Indicators | Indicator | 2019 | Year-on-Year Change | | :--- | :--- | :--- | | Insurance Business Revenue | 212.514 billion yuan | +5.0% | | New Business Value | 24.597 billion yuan | -9.3% | | New Business Value Ratio | 43.3% | -0.4 percentage points | | Agent Channel New Premium Business | 39.594 billion yuan | -15.2% | | Agent Channel Renewal Business | 155.572 billion yuan | +14.4% | - The average monthly number of agents was 790,000, a year-on-year decrease of 6.7%, as the company actively promotes team transformation and upgrading[70][71] - CPIC Allianz Health achieved premium and health management fee income of 4.717 billion yuan for the full year, a year-on-year increase of 71.9%, and achieved profitability for the first time with 7 million yuan in profit[83] Property Insurance Business CPIC P&C maintained fast growth in 2019 with stable combined ratio, driven by strong non-motor insurance performance, despite slower motor insurance growth CPIC P&C Business Key Indicators | Indicator | 2019 | Year-on-Year Change | | :--- | :--- | :--- | | Insurance Business Revenue | 132.979 billion yuan | +12.9% | | Combined Ratio | 98.3% | -0.1 percentage points | | - Combined Loss Ratio | 60.2% | +4.0 percentage points | | - Combined Expense Ratio | 38.1% | -4.1 percentage points | | Motor Insurance Premium Income | 93.218 billion yuan | +6.0% | | Non-Motor Insurance Premium Income | 39.761 billion yuan | +33.3% | - Non-motor insurance emerging areas developed rapidly, with agricultural insurance income increasing by 40.8% year-on-year and guarantee insurance income increasing by 60.0% year-on-year[91][93] - Anxin Agricultural Insurance achieved premium income of 1.431 billion yuan, a year-on-year increase of 14.6%, but its combined ratio rose to 99.8% due to typhoons and African swine fever[96] Asset Management Business Adhering to a prudent investment philosophy, the company achieved excellent investment performance in 2019, with managed assets growing significantly and strong total and net investment yields Group Managed Assets (million yuan) | Asset Category | End of 2019 | End of 2018 | Year-on-Year Change (%) | | :--- | :--- | :--- | | Group Managed Assets | 2,043,078 | 1,665,641 | 22.7 | | - Group Investment Assets | 1,419,263 | 1,233,222 | 15.1 | | - Third-Party Managed Assets | 623,815 | 432,419 | 44.3 | Group Investment Asset Allocation | Asset Category | Proportion at End of 2019 (%) | Change from End of Previous Year (pp) | | :--- | :--- | :--- | | Fixed Income | 80.4 | -2.7 | | Equity Investments | 15.7 | +3.2 | | Investment Properties | 0.6 | -0.1 | | Cash and Others | 3.3 | -0.4 | Group Consolidated Investment Yield | Yield Indicator (%) | 2019 | 2018 | Change (pt) | | :--- | :--- | :--- | :--- | | Net Investment Yield | 4.9 | 4.9 | 0.0 | | Total Investment Yield | 5.4 | 4.6 | +0.8 | | Net Value Growth Rate | 7.3 | 5.1 | +2.2 | Financial Analysis This chapter analyzes the Group's consolidated financial position, showing significant growth in total assets and liabilities, strong operating cash flow, and high solvency adequacy ratios at the end of 2019 Consolidated Financial Position Summary (million yuan) | Item | End of 2019 / 2019 | End of 2018 / 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,528,333 | 1,335,959 | 14.4 | | Total Liabilities | 1,345,013 | 1,181,911 | 13.8 | | Net Profit Attributable to Parent Shareholders | 27,741 | 18,019 | 54.0 | Consolidated Cash Flow Statement Summary (million yuan) | Item | 2019 | 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 111,795 | 89,449 | 25.0 | | Net Cash Flow Used in Investing Activities | (96,855) | (91,748) | 5.6 | | Net Cash Flow (Used in)/Generated from Financing Activities | (10,544) | 11,554 | (191.3) | Solvency Adequacy Ratio (%) | Entity | End of 2019 | End of 2018 | Change (pt) | | :--- | :--- | :--- | :--- | | CPIC Group (Comprehensive) | 295 | 301 | -6 | | CPIC Life (Comprehensive) | 257 | 261 | -4 | | CPIC P&C (Comprehensive) | 293 | 306 | -13 | Embedded Value As of 2019 year-end, the Group's embedded value significantly increased by 17.8%, with per-share value rising, despite a decline in life insurance new business value after capital cost deduction Group Embedded Value Composition (million yuan) | Item | December 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Group Adjusted Net Asset Value | 208,402 | 169,325 | | Group's Share of Value of In-Force Life Business after Deducting Cost of Required Capital | 187,585 | 166,816 | | Group Embedded Value | 395,987 | 336,141 | Life Insurance One-Year New Business Value (million yuan) | Item | 2019 | 2018 | | :--- | :--- | :--- | | One-Year New Business Value | 28,533 | 31,806 | | Cost of Required Capital | (3,936) | (4,686) | | One-Year New Business Value after Deducting Cost of Required Capital | 24,597 | 27,120 | - The main drivers of embedded value growth include new business value contribution (24.6 billion yuan), expected return on embedded value (23.9 billion yuan), and investment return variance (5 billion yuan)[164] - Sensitivity analysis shows that embedded value is most sensitive to investment yield assumptions. A change of +/-50 basis points in investment yield assumption would result in a change of approximately +/-30 billion yuan in the value of in-force business[166] Corporate Governance This section details the company's robust corporate governance framework, including the Board of Directors' report on performance, profit distribution, and social responsibility, alongside information on shareholding, management, and internal controls Board Report and Material Matters This chapter covers the Board's report on 2019 performance, profit distribution, auditor appointment, social responsibility, and material contracts, including the proposed dividend and plans for GDR issuance and London listing Recent Three-Year Dividend Distribution (million yuan) | Dividend Year | Cash Dividend Amount (Tax Inclusive) | Net Profit Attributable to Parent for the Dividend Year | Dividend Payout Ratio (%) | | :--- | :--- | :--- | :--- | | 2019 | 10,874 | 27,741 | 39.2 | | 2018 | 9,062 | 18,019 | 50.3 | | 2017 | 7,250 | 14,662 | 49.4 | - The company's Board of Directors approved the proposal to issue Global Depositary Receipts (GDRs) and list them on the London Stock Exchange, intending to issue no more than 628.67 million A-shares as underlying securities[186] - The company actively fulfilled its social responsibilities, with total charitable and other donations amounting to approximately 44.8259 million yuan in 2019[196] Share Changes and Shareholder Information As of 2019 year-end, the company's total share capital was 9.062 billion shares with a dispersed equity structure, and no controlling shareholder, comprising A-shares and H-shares Share Structure (As of End of 2019) | Share Class | Number of Shares | Proportion (%) | | :--- | :--- | :--- | | RMB Ordinary Shares (A-shares) | 6,286,700,000 | 69.37 | | Overseas Listed Foreign Shares (H-shares) | 2,775,300,000 | 30.63 | | Total Share Capital | 9,062,000,000 | 100.00 | Top Five Shareholders' Holdings | Shareholder Name | Holding Proportion (%) | Total Shares Held | | :--- | :--- | :--- | | HKSCC Nominees Limited | 30.60 | 2,772,704,635 | | Shenergy (Group) Co., Ltd. | 14.64 | 1,326,776,782 | | Huabao Investment Co., Ltd. | 14.17 | 1,284,277,846 | | Shanghai State-owned Assets Operation Co., Ltd. | 5.58 | 505,642,439 | | Shanghai Haiyan Investment Management Co., Ltd. | 5.17 | 468,828,104 | Directors, Supervisors, Senior Management, and Employees This chapter details the company's directors, supervisors, senior management, and employee composition, including personnel changes, remuneration, and educational background, highlighting the workforce's qualifications - During the reporting period, Executive Director and President Mr. He Qing resigned due to work changes, and the Board of Directors appointed Mr. Fu Fan as the new President (his qualification was approved in March 2020)[235] Employee Professional Category Composition | Professional Category | Number of Persons | Proportion (%) | | :--- | :--- | :--- | | Management Personnel | 7,550 | 6.8 | | Professional Personnel | 39,004 | 35.1 | | Marketing Personnel | 64,693 | 58.1 | | Total | 111,247 | 100.0 | Employee Education Level Composition | Education Level | Number of Persons | Proportion (%) | | :--- | :--- | :--- | | Postgraduate | 4,696 | 4.2 | | Undergraduate | 60,625 | 54.5 | | Below Undergraduate | 45,926 | 41.3 | | Total | 111,247 | 100.0 | Corporate Governance Status The company maintains a robust corporate governance system, adhering to regulations with clear responsibilities for its Board, Supervisors, and management, supported by effective specialized committees and a comprehensive risk management framework - The company's governance structure is clear, with well-defined responsibilities and mutual checks and balances among the Shareholders' Meeting, Board of Directors, Board of Supervisors, and senior management[261] - The Board of Directors has four specialized committees: Strategy and Investment Decision Committee, Audit Committee, Nomination and Remuneration Committee, and Risk Management Committee, all of which held multiple meetings and effectively performed their duties during the reporting period[278] - The company has established a Group-wide risk management framework, implementing centralized risk control, with the Board of Directors bearing ultimate responsibility and a Chief Risk Officer appointed to strictly adhere to risk bottom lines[311][312] - The company has established a sound internal control system, with the Board of Directors responsible for its establishment, soundness, and effective implementation, and the internal audit department leading the annual effectiveness evaluation. No material weaknesses were found in financial and non-financial reporting internal controls for 2019[318][319] Financial Report This section presents the independent auditor's report and the Group's audited consolidated financial statements for the year ended December 31, 2019, providing a comprehensive view of the company's financial performance and position Independent Auditor's Report PricewaterhouseCoopers issued an unqualified audit opinion on the 2019 consolidated financial statements, highlighting key audit matters related to the measurement of life and non-life insurance contract liabilities and Level 3 investment asset valuation - The audit opinion is an unqualified opinion[332] - Key audit matters include: - Measurement of life insurance contract liabilities - Measurement of non-life insurance contract liabilities - Valuation of Level 3 investment assets[334] Audited Consolidated Financial Statements This section presents the Group's comprehensive audited consolidated financial statements for 2019, including income, comprehensive income, balance sheet, equity changes, and cash flow statements, with detailed notes 2019 Consolidated Income Statement Summary (million yuan) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Total Revenue | 382,682 | 353,103 | | Total Profit | 27,966 | 28,008 | | Net Profit | 28,354 | 18,434 | | Net Profit Attributable to Parent Company Shareholders | 27,741 | 18,019 | Consolidated Statement of Financial Position Summary (million yuan) | Item | December 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Assets | 1,528,333 | 1,335,959 | | Total Liabilities | 1,345,013 | 1,181,911 | | Total Equity Attributable to Parent Company Shareholders | 178,427 | 149,576 | Other Information This section provides essential background information for understanding the annual report, including the company's basic profile, listing details, contact information, and definitions of key terms used throughout the document Company Profile and Definitions This chapter provides essential company information, including legal details, listing codes, contact information, and definitions of key terms, to aid investor understanding of the annual report - The company's A-shares are listed on the Shanghai Stock Exchange, code 601601; H-shares are listed on the Hong Kong Stock Exchange, code 02601[328] - Provides definitions for key terms such as "CPIC Life," "CPIC P&C," and "C-ROSS Phase II"[329]