Core Viewpoint - The annual disclosure season for participating insurance policies has revealed that leading insurance companies have achieved dividend realization rates exceeding 100%, with China Pacific Life Insurance (CPIC) leading the way [1][5]. Group 1: Performance of Participating Insurance Products - CPIC's two main whole life insurance products, "Manhao Life (Heritage Version)" and "Supreme Version," have achieved dividend realization rates of 145% and 127%, respectively, while its main annuity product, "Xinxin Yearly Annuity," has a realization rate of 124% [1][5]. - The high dividend realization rates of these products indicate strong actual returns for consumers, which are critical factors in their purchasing decisions [1][2]. Group 2: Comparison with Market Rates - The dividend realization rates of CPIC's products translate to customer yields of 3.5225% for the 145% realization rate, 3.33% for the 127% rate, and 3.302% for the 124% rate, all of which are significantly higher than current bank deposit rates and many wealth management products [2][6]. - The relative attractiveness of participating insurance products is expected to increase as traditional insurance and bank product rates decline [3][6]. Group 3: Underlying Strengths of CPIC - CPIC's ability to maintain high dividend realization rates is attributed to its solid fundamentals, including its strong market position as a publicly listed company in multiple locations and a 24-year history of consistent dividend payouts [2][7]. - The company has demonstrated superior investment performance, with an average investment return rate of 5.19% over the past decade, which supports its ability to deliver on customer promises [8][9]. Group 4: Industry Trends and Future Outlook - The competition in the participating insurance sector is shifting towards value creation, with CPIC's approach serving as a model for focusing on customer needs, stable investments, and transparent information disclosure [9].

Core Viewpoint - The insurance industry is currently in the annual disclosure season for participating insurance performance, with leading companies showing a general trend of dividend realization rates exceeding 100%, particularly highlighted by China Pacific Life Insurance's strong performance [1][6]. Group 1: Dividend Realization Rates - China Pacific Life Insurance's main participating insurance products, "Manhao Life (Heritage Version)" and "Manhao Life (Supreme Version)", achieved dividend realization rates of 145% and 127% respectively, while the annuity product "Xinxin Year" reached 124%, leading the industry [1][6][7]. - The dividend realization rate reflects the actual dividends distributed to policyholders compared to the projected dividends in product brochures, making it a crucial factor for consumers when selecting participating insurance products [7][8]. Group 2: Actual Returns and Market Position - Under the same predetermined and illustrated interest rates, a higher dividend realization rate translates to higher actual returns for consumers. China Pacific Life's products, with a 145% realization rate, correspond to a customer return rate of 3.5225% [2][8]. - In a low-interest-rate environment, the relative attractiveness of participating insurance products is increasing, especially as traditional insurance and bank products see further rate reductions [4][8]. Group 3: Company Fundamentals and Long-term Stability - China Pacific Life's ability to maintain high dividend realization rates is supported by its strong fundamentals, including its robust company background, superior investment management, and transparent information disclosure [11][13]. - The company has a long history of consistent dividend payouts, dating back to its first participating insurance product launched in 2001, which positions it as a pioneer in the industry [11][12]. Group 4: Investment Performance and Strategic Positioning - China Pacific Life has demonstrated strong investment performance, with an average investment return rate of 5.19% from 2015 to 2024, outperforming its listed peers [13]. - The company engages in various national key projects, which provide stable returns and align with the long-term nature of insurance funds, enhancing its competitive edge in the participating insurance market [13][14].

Core Viewpoint - The dividend realization rate for participating insurance products in 2024 has improved, with all 90 disclosed products achieving rates above 100%, indicating better performance compared to 2023 [1][2] Group 1: Reasons for Improvement - The average comprehensive investment return rate in the industry has rebounded, supporting higher dividend realization rates [2] - Regulatory changes in June 2023 relaxed constraints on dividend fluctuations, releasing surplus space for companies [2] - The upper limit for the preset interest rate of newly filed participating insurance products was lowered to 2.0% since October 2022, making it easier for products to meet demonstration rates [2] Group 2: Market Dynamics - Participating insurance products, with their "guaranteed + floating" return mechanism, have become the main products promoted by insurance companies in a low-interest-rate environment [2] - Increased competition in the participating insurance market has led some companies to adopt aggressive dividend strategies, potentially exaggerating the dividend levels [2] - Regulatory guidance requires companies to prudently determine dividend levels for 2024, emphasizing stable operations and long-term principles [2] Group 3: Long-term Considerations - Long-term evaluation of dividend realization rates is crucial for assessing the operational and investment capabilities of insurance companies [3] - Future expectations indicate an optimization of the revenue structure in the participating insurance market, with a predicted decline in preset interest rates and an increase in the proportion of floating returns [3] - The ongoing industry transformation may position participating insurance products as the dominant offerings, with a continuous decrease in liability costs [3]

Core Viewpoint - The article discusses the recent trends in the dividend insurance market, highlighting the advantages of "fixed income + floating dividends" structures that benefit both insurance companies and consumers [1][2]. Group 1: Dividend Insurance Overview - Dividend insurance is a type of life insurance where the insurer distributes a portion of its surplus earnings to policyholders in the form of cash or increased coverage [1]. - The surplus earnings that fund these dividends come from mortality gains, expense savings, and investment income exceeding expectations [1]. Group 2: Market Trends and Advantages - In the current low-interest-rate environment, insurance companies are accelerating the launch and sale of dividend insurance products, which are seen as a robust and flexible long-term wealth management tool [2]. - The "fixed income + floating dividends" mechanism of dividend insurance provides a safety net while also allowing for potential gains when market conditions improve [2]. Group 3: Comparison with Bank Deposits - Dividend insurance differs from bank deposits in that it offers both insurance coverage and long-term savings, while bank deposits are purely low-risk savings products without any insurance benefits [3]. - The liquidity of bank deposits allows for immediate access, albeit with potential interest loss, whereas dividend insurance typically has a longer commitment period, which may result in losses if cashed out early [3]. Group 4: Considerations for Purchasing - Dividend insurance is more suitable for individuals with long-term financial planning needs, as short-term withdrawals can lead to significant losses [4]. - When selecting a dividend insurance product, the dividend realization rate is crucial, as it indicates the insurer's ability to deliver on promised dividends [4].

Core Viewpoint - Dividend insurance is becoming a significant driver for the transformation of the life insurance industry, with decreasing preset interest rates reshaping competitive logic and product value boundaries [2][12] Group 1: Dividend Insurance Performance - Many life insurance companies have disclosed their cash dividend realization rates for 2024, with over half of the 129 products from five companies achieving a realization rate of 100% or higher, the highest being 306% [3][5] - The dividend realization rate reflects the ratio of actual dividends paid to expected dividends, indicating how well companies convert distributable profits into consumer payouts [3][5] - For example, Xinhua Life reported that 7 out of 21 dividend insurance products had realization rates exceeding 100%, with the highest at 122%, while Sunshine Life's 90 products had an average realization rate of 52.58% [5][6] Group 2: Regulatory Environment - The China Banking and Insurance Regulatory Commission issued a document aimed at curbing vicious competition in the dividend insurance sector, emphasizing the need for sustainable and reasonable dividend levels [9][10] - The document outlines six strict constraints that insurance companies must adhere to when determining dividend levels, including historical performance and capital strength [10][11] - The introduction of dynamic management mechanisms for dividend levels is intended to ensure that dividend decisions are an ongoing process throughout the product lifecycle [11] Group 3: Market Adjustments - The life insurance industry is experiencing a structural reshuffle due to continuously declining interest rates, prompting companies to adjust product designs and sales strategies [12][14] - Recent adjustments in preset interest rates, such as the reduction from 2% to 1.5% by Tongfang Global Life, reflect a proactive market response to regulatory changes and economic conditions [12][13] - The overall trend indicates a shift towards a focus on core insurance functions and professional capabilities, marking a critical transition for the industry [14]

Core Viewpoint - The dividend insurance market is experiencing a resurgence, with many products showing an increase in dividend realization rates compared to the previous year, and some products exceeding 100% realization rates [1][2]. Group 1: Dividend Realization Rates - The overall dividend realization rates for dividend insurance products have increased, with many new products launched after October last year achieving rates of 100% or more [2][3]. - For instance, Xinhua Insurance reported that among its 71 dividend insurance products, 7 had realization rates exceeding 100%, and the average realization rate for products with historical performance was 57%, up from 19% in 2023 [2]. - Ping An Life announced that 11 out of 12 new dividend insurance products launched after September 2024 had realization rates of 100%, with one product reaching 114% [3]. Group 2: Impact on Returns - The realization rate directly affects the floating returns of dividend insurance and reflects the investment performance of insurance companies [4]. - The theoretical yield for products with a realization rate of 100% or higher is estimated to be between 3% and 3.2% [4]. - A specific product from a major insurance company is projected to have a realization rate of 114%, with combined fixed and dividend returns of 3.2% [4]. Group 3: Regulatory Environment - Recent regulatory guidance aims to enhance the sustainable operation of dividend insurance and protect consumer rights, introducing a tiered regulatory approach [6]. - Companies must justify proposed dividend levels based on their investment returns and past performance, particularly if they exceed certain thresholds [6]. - Analysts believe that this regulatory framework will lead to a differentiation in dividend realization rates among insurance companies, with stronger companies likely to offer higher rates [7].

Core Viewpoint - The article emphasizes the importance of long-termism and investment support in the management of participating insurance products, as mandated by the regulatory authority [1][17]. Summary by Sections Regulatory Requirements - The regulatory authority has issued guidelines requiring insurance companies to maintain stable operations and adhere to asset-liability management principles throughout the product lifecycle [1][17]. - Companies must not deviate from the actual asset-liability and investment income situations [1]. Dividend Realization Rate - The dividend realization rate reflects the actual benefits received by policyholders and enhances transparency in insurance company disclosures [1]. - Starting in 2023, insurance companies are required to disclose their dividend realization rates on their official websites [1]. Calculation of Dividend Realization Rate - The article provides a formula for calculating the customer yield, which includes both guaranteed and floating dividends [2]. - Factors influencing the dividend realization rate include the sales demonstration rate, which is based on long-term investment expectations [3][5]. Market Environment Impact - In the current low-interest-rate environment, major insurance companies have reduced their demonstration rates to 3.5% to reflect anticipated long-term returns [5]. - The article notes that lower demonstration rates can lead to higher dividend realization rates under certain conditions [5][6]. Long-term Perspective - A long-term view of the dividend realization rate is essential, as it better reflects an insurance company's ability to deliver on its promises over time [9]. - Many companies disclose multi-year dividend realization rates to provide a clearer picture of their long-term performance [9]. Customer Yield Analysis - The article discusses how to derive customer yield from the dividend realization rate, indicating that customer yield is expected to be between 3.0% and 3.2% for major insurers in 2024-2025 [15][16]. - The customer yield from participating insurance products has consistently outperformed bank wealth management products from 2020 to 2023 [16]. Future Outlook - The sustainability of dividend levels is tied to the long-term investment capabilities of insurance companies, which must be evaluated against their operational stability and risk ratings [19][20]. - The article concludes that the assessment of an insurance company's dividend strength should consider long-term yield, investment returns, solvency ratios, and overall operational health [19][20].