Depth-Company-Xinhua Insurance (601336): Agents scaled up but NBV performed poorly in Q2

Depth * Corporate * Xinhua Insurance (601336): Agents scale up but second quarter NBV performs poorly

The company released its 2019 Interim Report, achieving net profit of 105 attributable to mothers in the first half of the year.

5 ‰, +81 a year.

8%; realized premium income was 739.

9 trillion, +9 for ten years.

0%; new business value 58.

9 ‰, at least -8.

7%; embedded value 1,914.

0 billion, +10 from the previous 18 years.


The release of the investment end + the return of taxes and taxes drove high performance growth, and the new insurance individual orders fell by a margin: in 2019, the company’s net profit attributable to its mother was 105.

5 ‰, +81 a year.

8%, accruing the impact of AFS impairment, the company’s performance in the first half of the year was worse than its peers; excluding the new tax reduction policy18.

After £ 500 million, it is +49 per year.


2019H company realized premium income of 739.

9 trillion, +9 for ten years.

0%; health insurance premium income 283.

9 trillion, +25 for ten years.


Among them, one insurance channel has a long-term insurance premium of 90 in the first year.

6 ‰, at least -2.

4%, from a single quarter point of view Q1 / Q2 insurance channels in the first year of long-term insurance premiums are 55.


4 ‰, Q2 single season half a year -21.

8%, -35.


An insurance channel accepts the first year of premium growth rate of long-term insurance, which is mainly due to the time required for new agents to release capacity.

The number of agents has picked up, but NBV has performed poorly: 2019H Company realized an embedded value of 1,914.

0 billion, +10 from the previous 18 years.

5%; new business value 58.

9 ‰, at least -8.

7%; remaining margin of 2,083.

1ppm, +6 over 18 years.


The new business value rate dropped by 12.

6 averages to 38%, of which, the value of new business in one insurance channel / bank insurance channel is 57.


9 trillion, the annual growth rate is -3.1% /-64.

2%; new business value rate is 50.

7% / 7.

1%, which decreases by 3 each year.


6 units.

In addition short-term insurance premiums38.

8 ‰, +31 a year.

0% is also expected to dilute the new business value rate increase.

Although the number of agents grows by 15 per year.

5% to 38.

60,000 people, at least +15.

5%, but monthly per capita capacity fell by 13.

8% to 4,472 yuan, dragging down the performance of NBV in various insurance channels.

The investment side benefits from the secondary market conditions, but the provision of AFS impairment affects the performance of the investment side: 1) The total annualized / net investment return for 2019H is 4

7% / 5.

0%, the total investment return is half a year -0.

1 unit, the net investment return rate is the same as last year, the annualized total investment return rate is lower than the listed peers; 2) other comprehensive 武汉夜网论坛 income improved, compared with last year’s floating loss of 27.

9 trillion, twisted to floating profit 0.

9 ‰; 3) Impairment loss of invested assets 10.

2 trillion and bid-offer spread loss 5.

With an impact of 20,000 yuan, the company’s total investment income increased only slightly 2.

0% to 168.

800 million.

Investment suggestion Company Q2 was affected by the decline in per capita capacity and the change in premiums in the first year of long-term insurance, and the value of new business grew less than expected.

With the company’s new secretary-general in place, the company’s opening strategy in the second half of the year and next year still needs to be observed. Adding agents is expected to gradually release capacity.

We expect the company’s NBV growth rate to be -2 in 2019/2020/2021.

9% / 1.

twenty three.

0%, EV growth rate is 13 respectively.

9% / 13.

6% / 15.


The company’s overall 2019 PEV is 0.

81. Maintain the overweight rating.

Risk reminders: The growth rate of insurance premiums for protection-type insurance products is lower than expected; the dual impact of market fluctuations on industry performance and estimates; and the uncertainty of insurance company investment caused by downward interest rates.