Core Viewpoint - The banking insurance companies in China have shown significant improvement in their financial performance for 2024, with a total net profit of 9.864 billion yuan, a substantial recovery from a loss of 16.142 billion yuan in the previous year [1][2]. Group 1: Financial Performance - Out of 10 banking insurance companies, 8 reported profits while 2 incurred losses totaling 3.369 billion yuan [2]. - China Post Life and CCB Life achieved a turnaround in their financial performance, with China Post Life reporting a net profit of 8.941 billion yuan, a year-on-year increase of 665.2% [2]. - CCB Life also reported a net profit of 0.324 billion yuan, a significant improvement from a loss of 2.399 billion yuan in 2023 [2]. Group 2: Accounting Standards Impact - The transition to new accounting standards (IFRS9/IFRS17) has led to increased volatility in net profit figures for banking insurance companies, as most equity investments are now measured at fair value [3]. - The new standards emphasize the disclosure of insurance service income rather than total premium income, resulting in differences in reported figures [3]. Group 3: Net Asset Changes - The net assets of several banking insurance companies, including ICBC-AXA Life and CCB Life, have seen significant declines, with double-digit decreases reported [4]. - The decline in net assets is attributed to the requirement to discount insurance contract liabilities using current interest rates, which has increased the measurement of insurance liabilities [4]. Group 4: Regulatory Changes - The "reporting and banking integration" policy has impacted the performance of banking insurance companies, with a 22% year-on-year decline in new single premium income from the bancassurance channel [4][5]. - Industry experts believe that the long-term effects of this policy will lead to a shift from scale-driven to value-driven contributions in the bancassurance channel, prompting insurance companies to enhance efficiency and reduce costs [5].