新华保险(01336) - 2023 Q3 - 季度业绩

Report Overview Important Notes This is the Q3 2023 report for New China Life Insurance, with unaudited financial data prepared under PRC GAAP, highlighting the restatement of comparative data due to new accounting standards - The financial information in the Q3 2023 report is prepared under PRC GAAP and is unaudited[2][3] - The company adopted new financial instrument and insurance contract standards from January 1, 2023, and comparative period data has been restated accordingly[3][5] Key Financial Data Key Accounting Data and Financial Indicators In Q3 2023, operating revenue and net profit attributable to parent company shareholders declined significantly year-over-year, while total assets and equity increased Key Accounting Data and Financial Indicators for Q3 2023 (Consolidated) | Indicator | Reporting Period (Jul-Sep) | Same Period Last Year (Restated) | YoY Change | YTD (Jan-Sep) | Same Period Last Year (Restated) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB in millions) | 12,912 | 24,639 | -47.6% | 61,855 | 76,017 | -18.6% | | Net Profit Attributable to Parent Company Shareholders (RMB in millions) | (436) | 2,102 | -120.7% | 9,542 | 11,292 | -15.5% | | Net Profit Attributable to Parent Company Shareholders (Non-recurring items deducted) (RMB in millions) | (428) | 2,117 | -120.2% | 9,561 | 11,300 | -15.4% | | Net Cash Flow from Operating Activities (RMB in millions) | N/A | N/A | N/A | 79,611 | 72,269 | 10.2% | | Basic Weighted Average Earnings Per Share (RMB) | (0.14) | 0.67 | -120.9% | 3.06 | 3.62 | -15.5% | | Weighted Average Return on Equity | -0.40% | 2.34% | -2.74pt | 8.53% | 12.48% | -3.95pt | Key Balance Sheet Indicators as of September 2023 (Consolidated) | Indicator | End of Reporting Period (2023.9.30) | End of Previous Year (Restated 2022.12.31) | Change | | :--- | :--- | :--- | :--- | | Total Assets (RMB in millions) | 1,364,374 | 1,214,936 | 12.3% | | Equity Attributable to Parent Company Shareholders (RMB in millions) | 108,312 | 97,975 | 10.6% | Non-recurring Profit and Loss Items and Amounts The company's non-recurring profit and loss totaled negative RMB 8 million for the reporting period and negative RMB 19 million year-to-date Non-recurring Profit and Loss Items and Amounts for Q3 2023 (Consolidated) | Non-recurring P&L Item | Amount for Reporting Period (RMB in millions) | Amount Year-to-Date (RMB in millions) | | :--- | :--- | :--- | | Trustee fee income from entrusted operations | 1 | 10 | | Other items defined as non-recurring P&L | (7) | (25) | | Less: Income tax effect | (2) | (3) | | Total | (8) | (19) | - As an insurance company, fair value changes and investment income from investment activities are considered recurring profit and loss[7] Other Key Indicators As of September 2023, insurance service revenue decreased by 5.5% YoY, while investment assets grew by 13.1% Other Key Indicators as of September 2023 (Consolidated) | Item | As of Sep 30, 2023 / For Jan-Sep 2023 (RMB in millions) | As of Dec 31, 2022 / For Jan-Sep 2022 (RMB in millions) | Change | | :--- | :--- | :--- | :--- | | Insurance service revenue | 39,726 | 42,040 | -5.5% | | Insurance service expenses | 26,254 | 26,795 | -2.0% | | Investment assets | 1,308,788 | 1,157,622 | 13.1% | - Under the new insurance contract standards, policyholder pledge loans are no longer treated as investment assets, and their interest is not included in investment income[9] Solvency Status As of September 2023, the company's core and comprehensive solvency adequacy ratios were 146.10% and 239.52% respectively, meeting regulatory requirements Solvency Status for Q3 2023 (Consolidated) | Indicator | Sep 30, 2023 (RMB in millions) | Jun 30, 2023 (RMB in millions) | | :--- | :--- | :--- | | Core capital | 151,207 | 153,029 | | Actual capital | 247,890 | 248,975 | | Minimum capital | 103,492 | 104,164 | | Core solvency adequacy ratio | 146.10% | 146.91% | | Comprehensive solvency adequacy ratio | 239.52% | 239.02% | - Insurance companies in mainland China must maintain solvency adequacy ratios that meet the standards set by the National Administration of Financial Regulation[10] Analysis of Changes in Key Financial Indicators In Q3 2023, operating revenue and net profit attributable to parent company shareholders fell sharply due to new accounting standards and reduced investment income Changes and Reasons for Key Financial Indicators in Q3 2023 | Key Item | Jul-Sep 2023 (RMB in millions) | Jul-Sep 2022 (RMB in millions) | YoY Change | Primary Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 12,912 | 24,639 | -47.6% | Impacted by the implementation of new financial instrument standards and capital market volatility | | Net Profit Attributable to Parent Company Shareholders | (436) | 2,102 | -120.7% | Year-over-year decrease in investment income in Q3 | | Net Profit Attributable to Parent Company Shareholders (Non-recurring items deducted) | (428) | 2,117 | -120.2% | Year-over-year decrease in investment income in Q3 | | Basic Weighted Average Earnings Per Share (RMB) | (0.14) | 0.67 | -120.9% | Decrease in net profit attributable to parent company shareholders | | Weighted Average Return on Equity | -0.40% | 2.34% | -2.74pt | Decrease in net profit attributable to parent company shareholders | Shareholder Information Top 10 Shareholders As of the reporting period end, the company had 78,010 shareholders, with Central Huijin and China Baowu Group being major stakeholders - At the end of the reporting period, the total number of shareholders was 78,010, comprising 77,723 A-share holders and 287 H-share holders[13] Top 10 Shareholders as of September 2023 | Shareholder Name | Shareholder Type | Number of Shares | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | | Central Huijin Investment Ltd. | State | 977,530,534 | 31.34 | | HKSCC Nominees Limited | Overseas Legal Person | 972,719,277 | 31.18 | | China Baowu Steel Group Corporation Limited | State-owned Legal Person | 377,162,581 | 12.09 | | China Securities Finance Corporation Limited | State-owned Legal Person | 93,339,003 | 2.99 | | Huabao Investment Co., Ltd. | State-owned Legal Person | 60,503,300 | 1.94 | - Central Huijin Asset Management is a wholly-owned subsidiary of Central Huijin Investment, and Huabao Investment is a wholly-owned subsidiary of China Baowu Steel Group[13] Quarterly Business Analysis Insurance Business Overview Gross written premiums grew 3.7% YoY in the first three quarters of 2023, driven by a 40.2% increase in first-year regular premiums for long-term insurance Gross Written Premiums for the First Three Quarters of 2023 | Item | 9 Months Ended Sep 30, 2023 (RMB in millions) | 9 Months Ended Sep 30, 2022 (RMB in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Gross Written Premiums | 142,911 | 137,792 | 3.7% | | First-Year Premiums for Long-Term Insurance | 39,126 | 34,952 | 11.9% | | Of which: Regular Premiums | 22,031 | 15,715 | 40.2% | | Renewal Premiums | 100,425 | 98,989 | 1.5% | | Short-Term Insurance Premiums | 3,360 | 3,851 | -12.7% | - In the first three quarters of 2023, the company's surrender rate was 1.5%, consistent with the same period last year[15] Individual Insurance Channel - The individual insurance channel focuses on value, optimizing product offerings and promoting agent transformation[17] Premiums from Individual Channel for the First Three Quarters of 2023 | Item | 9 Months Ended Sep 30, 2023 (RMB in millions) | 9 Months Ended Sep 30, 2022 (RMB in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Total Premiums from Individual Channel | 96,556 | 96,876 | -0.3% | | First-Year Regular Premiums for Long-Term Insurance | 10,085 | 9,175 | 9.9% | | Renewal Premiums | 84,757 | 85,631 | -1.0% | Bancassurance Channel - The bancassurance channel seized market opportunities to vigorously promote the development of regular premium business[17] Premiums from Bancassurance Channel for the First Three Quarters of 2023 | Item | 9 Months Ended Sep 30, 2023 (RMB in millions) | 9 Months Ended Sep 30, 2022 (RMB in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Total Premiums from Bancassurance Channel | 44,014 | 38,576 | 14.1% | | First-Year Regular Premiums for Long-Term Insurance | 11,909 | 6,510 | 82.9% | | Renewal Premiums | 15,616 | 13,330 | 17.1% | Group Insurance Channel - The group insurance channel continuously adjusted its business structure to improve profitability[17] Premiums from Group Channel for the First Three Quarters of 2023 | Item | 9 Months Ended Sep 30, 2023 (RMB in millions) | 9 Months Ended Sep 30, 2022 (RMB in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Total Premiums from Group Insurance | 2,341 | 2,340 | – | | Short-Term Insurance Premiums | 2,192 | 2,254 | -2.8% | Asset Management Business As of September 2023, investment assets reached RMB 1,308.8 billion, with a relatively low annualized total investment yield of 2.3% for the first three quarters Key Asset Management Indicators as of September 2023 | Indicator | Amount/Ratio | | :--- | :--- | | Investment Assets (RMB in millions) | 1,308,788 | | Annualized Total Investment Yield (Jan-Sep) | 2.3% | Quarterly Financial Statements Consolidated and Company Balance Sheets As of September 30, 2023, consolidated total assets were RMB 1,364.4 billion, a 12.3% increase from year-end 2022, with new standards causing reclassification of financial investments Key Consolidated Balance Sheet Data as of September 30, 2023 | Item | Sep 30, 2023 (RMB in millions) | Dec 31, 2022 (RMB in millions) | | :--- | :--- | :--- | | Total Assets | 1,364,374 | 1,214,936 | | Total Liabilities | 1,256,039 | 1,116,940 | | Total Shareholders' Equity | 108,335 | 97,996 | | Insurance Contract Liabilities | 1,125,770 | 1,013,191 | - The adoption of new financial instrument standards led to significant reclassifications of financial investments, with items like trading financial assets and debt investments replacing previous categories[21] Consolidated and Company Income Statements For the nine months ended September 30, 2023, consolidated operating revenue fell 18.6% YoY to RMB 61.9 billion, primarily due to reduced investment income Key Consolidated Income Statement Data for the First Three Quarters of 2023 | Item | Jan-Sep 2023 (RMB in millions) | Jan-Sep 2022 (RMB in millions) | | :--- | :--- | :--- | | Operating Revenue | 61,855 | 76,017 | | Insurance service revenue | 39,726 | 42,040 | | Investment Income | 211 | 11,643 | | Gains/Losses from Fair Value Changes | (2,862) | (1,658) | | Operating Profit | 8,711 | 11,581 | | Net Profit | 9,544 | 11,294 | | Net Profit Attributable to Parent Company Shareholders | 9,542 | 11,292 | | Basic Earnings Per Share (RMB) | 3.06 | 3.62 | - Net other comprehensive income after tax was negative RMB 12,162 million, mainly affected by fair value changes in other debt investments and insurance contract financial changes[28] Consolidated and Company Cash Flow Statements For the nine months ended September 30, 2023, net cash flow from operating activities was RMB 79.6 billion, a 10.2% YoY increase Key Consolidated Cash Flow Statement Data for the First Three Quarters of 2023 | Item | Jan-Sep 2023 (RMB in millions) | Jan-Sep 2022 (RMB in millions) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 79,611 | 72,269 | | Net Cash Flow from Investing Activities | (123,824) | (58,453) | | Net Cash Flow from Financing Activities | 43,553 | (18,316) | | Net Increase in Cash and Cash Equivalents | (603) | (3,988) | | Cash and Cash Equivalents at End of Period | 16,983 | 11,471 | - Cash inflows from operating activities were mainly from premiums, while outflows were primarily for claims, commissions, and employee compensation[30] - The significant increase in cash outflows from investing activities was mainly due to higher cash payments for investments[31]