Financial Performance - Total revenue for the first half of 2021 reached RMB 130,386 million, with a net profit attributable to shareholders of RMB 10,546 million, reflecting an annualized total investment return rate of 6.5%[10]. - Total revenue for the first half of 2021 reached 130,386 million RMB, representing a 12.3% increase compared to 116,076 million RMB in the same period of 2020[13]. - Net profit attributable to shareholders of the parent company was 10,546 million RMB, reflecting a growth of 28.3% from 8,218 million RMB in the previous year[13]. - Annualized total investment return rate improved to 6.5%, an increase of 1.4 percentage points from 5.1% in the same period last year[15]. - Total premium income and policy management fee income amounted to 100,641 million RMB, up 3.9% from 96,903 million RMB year-on-year[15]. - Investment income surged by 47.2% to 30,542 million RMB, driven by increased gains from asset trading[18]. - Total insurance business expenses for the six months ended June 30, 2021, amounted to RMB 118,178 million, an increase of 11.1% from RMB 106,304 million in the same period of 2020[124]. - The total comprehensive income for the six months ended June 30, 2021, was RMB 9,124 million, down from RMB 11,121 million in the same period of 2020[126]. Assets and Liabilities - The company's total assets amounted to RMB 1,022,175 million, and the embedded value was reported at RMB 250,766 million[10]. - The company managed assets exceeding 1 trillion RMB, with a total asset value of 1,022,175 million RMB, up 1.8% from 1,004,376 million RMB at the end of 2020[13]. - The total liabilities reached RMB 915,703 million, up from RMB 902,696 million, indicating an increase of about 1.2%[123]. - The long-term insurance contract liabilities rose to RMB 814,373 million from RMB 750,258 million, marking an increase of approximately 8.6%[123]. - The total insurance contract reserves as of June 30, 2021, were 818,729 million, reflecting an 8.5% increase from 754,409 million at the end of 2020[34]. Solvency and Capital - The comprehensive solvency adequacy ratio stood at 250.766%, demonstrating strong financial stability[10]. - The comprehensive solvency adequacy ratio decreased to 269.67% as of June 30, 2021, from 277.84% as of December 31, 2020[46]. - The core capital of Xinhua Life Insurance Co., Ltd. was CNY 285,025 million, an increase from CNY 280,817 million as of December 31, 2020[46]. - The actual capital as of June 30, 2021, was RMB 295,025 million, up from RMB 290,817 million at the end of 2020, indicating a growth of 1.42%[200]. - The minimum capital requirement increased to RMB 109,401 million as of June 30, 2021, compared to RMB 104,672 million at the end of 2020, representing a rise of 4.00%[200]. Business Operations - The company is committed to providing comprehensive life insurance products and services through a nationwide network and diversified sales channels[10]. - The company provided services to over 30 million individual clients and nearly 90,000 institutional clients, enhancing customer service efficiency[12]. - The company launched new community products in the health and elderly care sector, marking a significant expansion in its service offerings[12]. - The company plans to enhance team quality and optimize product supply to meet customer needs, focusing on health and retirement products[53]. - The company aims to strengthen risk management and compliance operations, emphasizing a preventive risk control philosophy[53]. Market and Economic Environment - The domestic economy is gradually recovering post-pandemic, showing a stable and long-term positive trend, but global economic recovery remains weak with low demand and commodity inflation[54]. - The company emphasizes macroeconomic and industry research to prudently forecast domestic and international market trends[55]. - The company has faced increased market, credit, and liquidity risks due to the complexity of the internal and external environment since the outbreak of COVID-19[54]. Employee and Governance - The company has a total of 35,438 employees under labor contracts as of June 30, 2021[94]. - The company held three shareholder meetings and six board meetings during the reporting period, ensuring compliance with governance standards[80]. - The board of directors confirmed the accuracy and completeness of the financial report, with all 12 attending directors present at the meeting[3]. - The company has appointed Zhang Hong as Vice President, with his appointment approved by the China Banking and Insurance Regulatory Commission on June 21, 2021[91]. Risk Management - The company faces significant insurance risks due to the randomness of insurance events and the uncertainty of claims exceeding the insurance liabilities[180]. - Financial risks include market risk, credit risk, and liquidity risk, with a focus on minimizing negative impacts on financial conditions[184]. - The group has a liquidity risk management strategy that matches investment assets with liabilities to mitigate liquidity risk[193]. - The company has established a diversified investment portfolio to mitigate financial risks associated with specific industries or issuers[184]. Regulatory and Compliance - The company has adopted new accounting standards effective from January 1, 2021, which may impact future financial reporting but had no significant effect on the current interim financial statements[134]. - The group has temporarily exempted the application of IFRS 9, continuing to use IAS 39 for financial assets and liabilities as of January 1, 2018[138]. - The company has established a reputation risk management system covering all lines and institutions to enhance consumer rights protection and risk prevention[55]. Community Engagement - The company allocated RMB 8 million to support the construction of Shibing County No. 1 Middle School in Guizhou[97]. - The company donated RMB 10 million to support flood relief and post-disaster reconstruction in Henan Province[98]. - As of July 31, 2021, the company’s insurance project for sanitation workers covered 142 cities, providing nearly 840,000 workers with accident insurance worth RMB 100,000 each, totaling over RMB 264.3 billion in donated coverage since 2017[98].
新华保险(01336) - 2021 - 中期财报