Caixin reported on November 22nd (by Xia Shuyuan) that A-share listed insurance companies are actively carrying out the "dividend payout" work. On November 22nd, with the release of the 2024 interim equity distribution implementation announcement by New China Life Insurance, 3 out of the top 5 listed insurance companies in A-share have already implemented their mid-term dividends.

Among them, Ping An Insurance, China Life Insurance, and New China Life Insurance distributed cash dividends of 9.914 billion yuan, 5.653 billion yuan, and 1.685 billion yuan respectively, totaling 17.252 billion yuan.

In terms of interim dividends, Ping An Insurance distributed a cash dividend of 0.93 yuan per share (tax included, the same below); China Life Insurance distributed a cash dividend of 0.2 yuan per share; New China Life Insurance intends to distribute a cash dividend of 0.54 yuan per share. In terms of dividend percentage, New China Life Insurance has the highest at 15.2%, while China Life Insurance and Ping An Insurance are at 14.77% and 13.29% respectively.

It is reported that New China Life Insurance and China Life Insurance will implement the distribution of mid-term equity for the first time in 2024, while Ping An Insurance has been distributing mid-term dividends for many years. Industry experts state that listed insurance companies have always been major dividend players in the capital markets, and increasing dividend frequency is not only a response to policy calls but also demonstrates a stable financial condition and profit-making ability, bolstering investor confidence and returns. It is expected to become an industry trend in the future, with the dividend yield of listed insurance companies also likely to increase further.

The total interim dividend of the 3 listed insurance companies amounts to 17.252 billion yuan, with Ping An Insurance's dividend accounting for 57.47%.

Since the issuance of the new "Guidelines for a National Plan" (Guo Jiu Tiao), several A-share listed insurance companies have actively responded to the call for multiple dividend payouts within a year.

As of now, New China Life Insurance, China Life Insurance, and Ping An Insurance, 3 listed insurance companies, have already released announcements on the implementation of equity dividends, continuously optimizing shareholder return mechanisms.

Specifically, on November 22nd, New China Life Insurance issued an announcement on the implementation of the 2024 interim equity distribution, and the insurer will distribute the 2024 interim cash dividend on November 29th.

It is reported that this profit distribution is based on the total share capital of 3,119,546,600 shares before the implementation of the plan, with a cash dividend of 0.54 yuan per share, totaling 1.684555164 billion yuan in cash dividends, accounting for 15.2% of the mid-term net income attributable to shareholders (11.083 billion yuan).

Looking at China Life Insurance, the company has already distributed the 2024 interim cash dividend on November 13th. The profit distribution is based on the total share capital of 28,264,705,000 shares before the implementation of the plan, with a cash dividend of 0.2 yuan per share, totaling 5.653 billion yuan in cash dividends, accounting for 14.77% of the mid-term net income attributable to shareholders (38.278 billion yuan).

According to the announcement of Ping An Insurance, the company's cash dividend distribution date was October 18th. The actual number of A shares participating in the distribution this time was 10,660,065,083 shares, with a cash dividend of 0.93 yuan per share, totaling 9.914 billion yuan in cash dividends, accounting for 13.29% of the mid-term net income attributable to shareholders (74.619 billion yuan).

Overall, Ping An Insurance, China Life Insurance, and New China Life Insurance distributed a total of 17.252 billion yuan in mid-term cash dividends.

In the view of Xu Yuchen, a founding member of the China Actuarial Association, midterm dividends are a way for listed companies to give back a portion of their half-year profits to investors in cash or other forms. Being able to distribute dividends at mid-year indicates that insurance companies have strong capital strength and are confident in the future business development prospects.

Xu Yuchen stated that overall, the distribution rate of mid-term dividends for listed insurers is around 15%, which can provide feedback to investors and also reserve a certain amount of capital for the future development of listed insurers, which is overall quite reasonable.

In fact, even before increasing mid-term dividends, listed insurers have always been classified by the market as major dividend payers.

In 2023, the five major listed insurance companies plan to distribute cash dividends totaling up to 75.5 billion yuan, accounting for approximately 45.6% of the total net income attributable to the parent company. Data from the Listed Companies Association shows that in 2023, 3,859 listed companies announced special cash dividend plans, with an average dividend ratio of 36.91% for dividend-paying companies. It can be seen that the dividend level of listed insurance companies far exceeds the average level of A-share listed companies.

Listed insurance companies' dividend yield is expected to further increase. Future midterm dividends will be tailored based on profitability and other circumstances.

In the current trend of high-quality development in the capital markets, continuously stable dividend distribution is a stringent requirement for listed companies. How will listed insurance companies stabilize investor dividend expectations?

Regarding the sustainability of future midterm dividends and annual dividend plans, New China Life Insurance stated in response to investor questions that the company will comprehensively consider the realization of profits, shareholder expectations, financial conditions, and risk control indicators. Specific dividend plans will be formulated based on the company's operational and business development needs.

President Li Mingguang of China Life Insurance once stated that in order to further reward investors, China Life Insurance has added midterm dividends in 2024. In the future, it will continue to adhere to the basic rules it has followed for a long time and determine the annual dividend level by comprehensively considering the company's annual operating situation, shareholder returns, and business development needs, while meeting regulatory requirements.

According to Fangzheng Securities' research report, midterm dividends in listed insurance companies will become an industry trend, with specific reasons as follows:

Firstly, midterm dividends align with national policies and regulatory guidelines such as the 'Nine New Measures for the New Country' and the 'Cash Dividend Guidelines for Listed Companies'. Secondly, the midterm dividend policy, amid increased profit fluctuations in insurance companies, is beneficial for improving dividend stability, sustainability, and predictability. Lastly, midterm dividends help smooth out investors' cash flows and enhance investors' sense of achievement.

"Midterm dividends not only demonstrate the company's emphasis on shareholder returns but also reflect the management's confidence in the company's short-term operational stability and long-term development certainty," said non-banking analyst from Fangzheng Securities.

It is worth noting that, in the industry's view, when measuring insurance companies, not only when the dividend frequency is increased and the amount of dividends in silver is increased, but also when considering the whole year as a whole.

Xu Yuchen stated that dividends will reduce the idle net assets of insurance companies, to a certain extent, reducing the solvency adequacy ratio of insurance companies. In the future, listed insurance companies need to consider business development and capital structure, cautiously determining the scale of dividends while ensuring stable long-term solvency.

It can be expected that as the cash dividend ecosystem of listed companies continues to be optimized, it will further enhance investors' sense of gain, attract more medium and long-term fund inflows, enhance market liquidity and activity. It is expected in the industry that the dividend yield of each insurance company is expected to further increase in the future.