Core Viewpoint - The low interest rate environment is prompting a new paradigm in wealth management for households, with a focus on "risk resistance, stable returns, and medium to long-term" investment strategies [1] Summary by Sections Dividend Insurance Products - As of late August, life insurance products will see a reduction in preset interest rates, leading to dividend insurance becoming the mainstream product type in September. These products offer a combination of "personal protection + guaranteed benefits + floating returns," attracting increasing attention due to their defensive and offensive characteristics [2] - When selecting dividend insurance products, past dividend realization rates and the investment capabilities of insurance companies are crucial reference indicators. Given the long-term nature of these products, the brand strength, service quality, and operational capabilities of state-owned large insurance companies are significant advantages [2] Importance of Dividend Realization Rate - Dividend insurance refers to life insurance products where the insurance company distributes a portion of its surplus earnings to policyholders. By regulation, insurance companies must allocate at least 70% of the distributable surplus to policyholders annually [4] - The yield from dividend insurance consists of "guaranteed + dividends," where guaranteed returns are fixed and specified in the contract, while the dividend portion is variable and depends on the company's performance. The floating dividend is key to the competitiveness of these products, with the realization rate being a critical metric [4] - The dividend realization rate is defined as "actual distributed dividend amount / projected dividend amount," indicating the extent to which projected benefits are realized. A realization rate above 100% means actual dividends exceed projections. For instance, Xinhua Insurance reported that over 60 products had a realization rate exceeding 100% for 2024, with an average of 152% for guaranteed dividend products [4] Investment Capability - The dividends from these products are derived from the management of the insurance company, making investment and operational management critical. Consumers should consider the insurance company's strength and professionalism, particularly its long-term stable operations and investment performance [6] - Xinhua Insurance has maintained a steady average total investment return of 5.13% from 2014 to 2024, with a comprehensive investment return of 8.5% in 2024. The company emphasizes enhancing investment capabilities and aligning with national strategies for long-term returns [7] Active Investment Strategies - In 2024, Xinhua Insurance has taken a leading role in investing insurance funds, participating in the establishment of the Honghu Fund to promote value investment. The company has actively invested in the elderly care and health industries, acquiring stakes in quality listed companies [8] - Xinhua Insurance focuses on balancing risk and returns in its asset allocation for dividend insurance, continuously optimizing its diversified strategies to create stable long-term investment returns for policyholders [8] Service Capability and Comprehensive Strength - Since 2025, Xinhua Insurance has enhanced its dividend insurance product offerings, introducing competitive products that emphasize wealth management and retirement functions. The company has also integrated various high-value products to meet diverse customer needs [10] - The company's comprehensive service capabilities, centered on customer needs, enhance product value. Xinhua Insurance provides a full-cycle service system covering institutional and home-based elderly care, integrating various services for a one-stop solution [10] - In the first seven months of 2025, Xinhua Insurance achieved a premium income of 137.8 billion yuan, a 23% year-on-year increase, and processed 2.41 million claims totaling 7.3 billion yuan [10] Future Outlook - With robust operational performance and growth momentum, Xinhua Insurance has been listed in the 2025 Fortune Global 500. The company aims to achieve higher levels of development, focusing on insurance, asset management, and service ecosystems to contribute to the well-being of the public [11]

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].