业内人士表示，2024年上半年，受保险责任准备金计提力度加大、赔付支出及资产减值损失增加等因素影响，中信保诚人寿出现净亏损，未来仍需关注资本市场波动等因素对其投资资产质量及收益实现的不利影响。① In the first half of the year, CITIC Prudential Life achieved insurance revenue of 16.932 billion yuan, a year-on-year decrease of 0.61%; ② The company recorded a net loss of 3.4 billion yuan in the first half of the year, a further increase over the full year of 2023 -0.827 billion yuan; ③ Currently, the position of the company's chairman is still vacant.
Financial Services Association, August 1 (Reporter Xia Shuyuan) With the gradual disclosure of solvency reports for the second quarter of 2024, the results of insurance companies' operations in the first half of the year also surfaced.
According to statistics from the Financial Services Association reporter, as of July 31, 60 unlisted personal insurance companies achieved insurance business revenue of 736 billion yuan in the first half of the year, an increase of 14.01% over the previous year, and a total net profit of 9.414 billion yuan. Among them, 31 insurers achieved profits and 29 insurers lost money. It is worth noting that among the 29 loss-making life insurance companies, CITIC Prudential Life recorded a net profit of 3.441 billion yuan, ranking “first” in the loss list.
Industry insiders said that in the first half of 2024, CITIC Prudential Life experienced a net loss due to factors such as increased accumulation of insurance liability reserves, increased compensation expenses, and asset impairment losses. In the future, we still need to pay attention to the adverse effects of factors such as capital market fluctuations on the quality of its investment assets and the achievement of returns.
In the first half of 2024, CITIC Prudential Life had a net loss of 3.441 billion yuan, and the return on net assets fell to -28.28%
On October 13, 2000, the Sino-British joint venture life insurance company Xincheng Life settled in Guangzhou. In 2017, CITIC Prudential Life changed its name to CITIC Prudential Life. Currently, CITIC Financial Holdings and Prudential UK each hold 50% of the shares.
Since its establishment in 2000, CITIC Prudential Life has been an “excellent student” among joint venture insurers. However, in recent years, the life insurance industry has been under pressure from both sides. Following a drastic change in performance in 2023, CITIC Prudential Life experienced a sharp change in both revenue and net profit in the first half of 2024.
The second-quarter solvency report shows that in the first half of 2024, CITIC Prudential Life achieved income of 16.932 billion yuan, a year-on-year decrease of 0.61%, and recorded a net loss of 3.441 billion yuan. This was a further increase over the loss of -0.827 billion yuan for the full year of 2023, and the return on net assets fell to -28.28%.
Apart from the decline in both revenue and net profit, CITIC Prudential Life's core solvency was further strained.
By the end of June 2024, the company's core solvency ratio was 86.58%, down 18.95 percentage points from 105.53% at the end of the previous quarter; the comprehensive solvency ratio was 173.15%, down 28.3 percentage points from 201.45% at the end of the previous quarter.
It is worth noting that on February 2 of this year, CITIC Prudential Life's capital increase was approved, and Chinese and foreign shareholders CITIC Financial Holdings and Prudential Group increased their capital by 2.5 billion yuan. However, in the context of the capital increase, CITIC Prudential predicts that the company's core and comprehensive solvency ratio will drop further to 82.83% and 165.67% in the next quarter.
Industry insiders said that due to factors such as the company's active adjustment of the product structure and pressure reduction in the share of large-scale businesses, CITIC Prudential Life's premium revenue growth rate has slowed down, and its market share has declined. Although the investment strategy is relatively steady, it is still necessary to pay attention to the adverse effects of factors such as capital market fluctuations on the quality of investment assets and the achievement of returns.
Since 2023, there have been frequent executive changes, and the chairman of CITIC Prudential Life still needs to be filled
Behind pressure on performance, since 2023, CITIC Prudential Life has made frequent moves to change executives.
In June 2023, CITIC Prudential Life issued an announcement stating that Nicolaos Andreas Nicandrou (Nicolaos Andreas Nicandrou) resigned as chairman due to personal reasons. Currently, the position of chairman of the company is still vacant.
In April 2024, CITIC Prudential Life's general manager Zhao Xiaofan retired. The company's board of directors approved Chang Ge as the temporary head of CITIC Prudential Life.
In June 2024, CITIC Prudential Life announced that with approval from the 5th on-site board meeting of the company's 8th session and approved by the State Financial Supervisory and Administration, Chang Ge will be the general manager of CITIC Prudential Life, effective June 12, 2024.
In addition to the changes in both the chairman and general manager, CITIC Prudential Life's board of directors and executive members all changed in the first half of 2024.
In addition to Zhang Liguo and Zhang Jian as new directors, there are also two changes in the CITIC Prudential Life leadership team. On May 6, 2024, Ouyang Jiahao became the head of finance at CITIC Prudential Life. Since June 27, 2024, Jiang Yansong will no longer be the company's deputy general manager.
CITIC Prudential Life said that in an environment of low interest rates, high capital market volatility, and scarce high-quality assets, the regulation actively guides the industry to reduce debt costs, implement new regulations such as lowering scheduled interest rates and “integration of reporting and banking” in the banking insurance market to promote high-quality development of the industry.
Facing a complex and changing external environment, under the premise of capital constraints, CITIC Prudential Life will strictly abide by the bottom line of liquidity risk, seek increases based on stock, optimize inventory incrementally, optimize product portfolio structure, strengthen balance and liability linkage, focus on controlling long-term interest rate risks, reduce the risk of fee differences, and strive to achieve long-term steady management.
At the same time, CITIC Prudential Life revealed that in order to implement the “integrated reporting and banking” policy, the company strictly controls expenses and maintains a tight balance of regular expenses in order to eliminate fee differences in the short term, achieve fee differences in the medium to long term, and at the same time continue to steadily advance capital replenishment plans under the dual challenges of continued decline in market interest rates and capital pressure.
