Core Insights - The article highlights the innovative approach of Taikang Life in developing a new life insurance model that integrates payment, service, and investment to address the growing focus on pension finance amid an aging population [2][6] Group 1: Business Model and Strategy - Taikang Life has established a new life insurance model that emphasizes the integration of medical and elderly care services, creating a seamless service system throughout the entire life cycle [2][3] - The company has achieved a compound annual growth rate of over 10% in premiums over the past decade, indicating stable and rapid growth compared to its peers [3] - In 2024, Taikang Life reported a revenue of 271.1 billion yuan, a year-on-year increase of 15.3%, with insurance business income reaching 228.3 billion yuan, up 12.4% [3] Group 2: Product Innovation - The "Happiness Appointment" product has evolved over ten years into a comprehensive system that meets the pension and health wealth management needs of clients across their entire life cycle [4] - The dual solution of "Longevity Appointment + Health Appointment" combines annuity insurance with community living confirmations to create sustainable cash flow for retirement planning [4] Group 3: Market Position and Future Outlook - Taikang Life is actively participating in national pension policies, with 20 insurance products included in the personal pension insurance product catalog, serving over 51,000 personal pension clients [5] - The company aims to build a high-quality team of Health Wealth Planners (HWP) to enhance customer experience and service quality, with the HWP team exceeding 1,000 members, including many highly educated professionals [5][6] - The company is committed to deepening its focus on pension finance and expanding its product and service offerings to lead industry innovation [6]

Core Insights - Taikang Life is a leading non-listed insurance company in China, with insurance revenue exceeding 200 billion yuan and total assets surpassing 1.8 trillion yuan in 2024 [1][2] - The company is facing operational pressures due to declining interest rates in the financial market, leading to a reliance on short-term sales strategies [1][2] - Taikang Life is closing over 160 branch offices to reduce operational costs while simultaneously launching high-value "retirement" insurance products to prepare for future performance [2][5] Branch Network Reduction - Taikang Life has closed approximately 160 branch offices across various provinces, representing a 7% reduction in its network [2][5] - As of the end of 2024, the company has 2,135 branches, indicating a significant contraction in its physical presence [2] - The closure of branches raises concerns about customer trust and brand image, despite the availability of services at nearby locations [4][5] Industry Trends - The insurance industry is witnessing a trend of branch closures, with over 10,000 branches shut down from 2020 to 2024, including major players like China Life and Ping An [5] - Factors driving this trend include accelerated digital transformation, the rise of internet insurance, and declining efficiency in traditional sales models [5][6] - The number of individual insurance agents has decreased significantly, from 9.12 million in 2019 to 2.64 million in 2024 [6] Financial Performance - Taikang Life's revenue grew from 213.77 billion yuan in 2020 to 281.42 billion yuan in 2024, but net profit has shown volatility, with a peak of 230.73 billion yuan in 2021 and a decline to 143.21 billion yuan in 2024 [8][10] - The company has a strong solvency position, with a comprehensive solvency adequacy ratio of 335% in 2024 [8] - The company faces challenges with high policy surrender rates, particularly with its investment-linked products, indicating potential issues with product performance and sales practices [10][11] Retirement Product Strategy - Taikang Life is innovating by integrating traditional life insurance with physical retirement services, launching products like "Happiness Appointment" that require policyholders to secure retirement community access through insurance contracts [15][18] - The company has expanded its retirement community projects to 43 locations across 36 cities, with over 16,000 residents [19] - The "Happiness Appointment" product has seen significant growth, with sales increasing from 300 in its first year to nearly 50,000 in 2024, contributing over one-third to new value [19][20]

Core Viewpoint - Taikang Insurance is undergoing a transformation period after years of leading the non-listed insurance sector, facing challenges in its core life insurance business while attempting to innovate through a "new life insurance" model that integrates health and wellness services [1][3]. Group 1: Financial Performance - In 2024, Taikang recorded revenue and net profit of 327.06 billion yuan and 15.16 billion yuan, with growth rates of 17.23% and 20.63% respectively [2]. - Taikang Life's revenue and profit growth rates were 17.83% and 8.88%, with profit growth declining by 10 percentage points compared to the previous year [4][15]. - Taikang Pension reported a loss of 1.4 billion yuan, while Taikang Online's profit increased by nearly 60%, contributing only 0.077 billion yuan to the group [4]. Group 2: Organizational Changes - Since 2023, Taikang has undergone significant personnel changes, with founder Chen Dongsheng taking over as chairman of Taikang Pension and his son Chen Yilun leading the fund business [3]. - Taikang Life has closed 359 branches from 2024 to April 2025, with 144 branches closed in the first four months of 2025 alone, marking it as the fastest shrinking major life insurance institution [7][21]. Group 3: Strategic Adjustments - The shrinking of branches may indicate ongoing adjustments within Taikang, as the company aims to optimize its resource allocation and focus on high-net-worth clients [23][27]. - Taikang's "new life insurance" strategy aims to integrate health and wellness services into its traditional insurance offerings, with products like "Happiness Appointment" and the "Taikang Home" retirement community [10][12]. Group 4: Challenges in Pension Sector - Taikang Pension has faced significant challenges, with a revenue growth rate dropping over 20 percentage points to 0.5% in 2024, and a loss of 1.4 billion yuan [37][40]. - The company is focusing on its core pension business while gradually divesting from non-core short-term health insurance products [40]. Group 5: Future Outlook - The long-term success of Taikang's investment in health and wellness services, particularly in retirement communities, remains uncertain due to cultural preferences for home-based care and potential operational challenges [50][52].