NCI(SH:601336) Xinda Securities·2024-03-27 16:00Investment Rating - The report suggests a positive outlook for the company, indicating that the channel reform effects are becoming evident and core indicators are showing significant improvement [12]. Core Viewpoints - The company achieved a premium income of 165.903 billion yuan in 2023, a year-on-year increase of 1.7%, while the net profit attributable to shareholders was 8.712 billion yuan, a decrease of 11.3% [11]. - The business quality is continuously improving, with a substantial increase in new business value. The proportion of first-year premium income from long-term insurance increased by 11.6 percentage points to 57.6%, and the first-year premium income from long-term insurance increased by 31.8% year-on-year [11]. - The individual insurance channel maintained stable premium income, while the bank insurance channel saw a significant increase of 60.5% in first-year premium income for long-term insurance, reaching a historical high [11]. Summary by Sections Business Performance - In 2023, the company focused on optimizing its business structure, particularly in high-value periodic premium business, leading to a notable increase in new business value. The new business value (NBV) was 3.024 billion yuan based on revised assumptions, and 3.999 billion yuan based on original assumptions, reflecting a year-on-year increase of 65.1% [11]. Channel Development - The individual insurance channel generated premium income of 115.576 billion yuan, remaining stable year-on-year, with a 9.8% increase in first-year premium income for long-term insurance. The agency workforce was streamlined to enhance quality, resulting in a monthly average productivity increase of 94.4% [11]. - The bank insurance channel capitalized on market opportunities, achieving premium income of 47.824 billion yuan, an increase of 8.9% year-on-year, with a focus on deepening periodic and long-term transformation [11]. Investment Performance - The total investment return rate for 2023 was 1.8%, a decrease of 2.5 percentage points year-on-year, primarily due to fluctuations in investment asset trading and fair value changes. The net investment return rate was 3.4%, down 1.2 percentage points [12]. - By the end of 2023, the proportion of stocks in the investment portfolio was 7.9%, an increase of 0.8 percentage points, while bonds and debt assets accounted for 50.4%, a significant increase of 8.8 percentage points [12]. Investment Recommendations - The report indicates that the effects of channel reform are becoming increasingly evident, with core indicators such as new business value showing significant improvement. The quality of the channel workforce is expected to continue to enhance, leading to potential growth in new business value and improved contributions from both individual and bank insurance channels [12].