china taiping insurance holdings company limited 2018 ...financial condition, results of operations...
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China Taiping Insurance Holdings Company Limited
2018 Annual Results Presentation
29 March, 2019
Forward-looking Statements
2
This presentation and subsequent discussions may contain
certain forward-looking statements with respect to the
financial condition, results of operations and businesses of
China Taiping Insurance Holdings Company Limited. These
forward-looking statements represent the Company’s
expectations or beliefs concerning future events and involve
known and unknown risks and uncertainties that could cause
actual results, performance or events to differ materially from
those expressed or implied in such statements
Simplified Company Structure
3
Summary
4
In 2018, faced with complicated internal and external environments, China
Taiping sticked firmly to value growth, adjusted strategy effectively, took
serious measures to management of business quality, deepened innovation
and breakthroughs in mechanism, products, technology, improved the level of
operating services comprehensively, strengthened the top-level design,
clarified strategic directions, with the system-wide effort, the main operating
indicators developed steadily, outperformed the market. Taiping Group, with
the Company as a core subsidiary, has made it onto the “Fortune Global 500”
with high quality
Summary (Cont’d)
5
Continued the good momentum of surpassing the market and competing at
an advanced level
Continued to sustain high quality, achieved the harmonious development
of quality, speed, and efficiency
Continued to enhance the ability of dealing with complex situations and
adverse factors
Continued to promote the ability of risk identification and control
Continued to keep strong growth momentum, and further strengthened
the foundation of agency force, products, and operating
Since the Parent Company Completed the Reorganization and Reformation in 2013, Business Scale of the Company Grown Rapidly, Operating Efficiency Enhanced Significantly
Summary (Cont’d)
6
863 1,116
1,384 1,493
1,787 1,996
2013 2014 2015 2016 2017 2018
Total Premium
（HK$ 100 million）
+18.3%
3,185
4,435 4,880 5,090
6,665 7,521
2013 2014 2015 2016 2017 2018
Total Assets
（HK$ 100 million）
+18.7%
17
40
63 48
61 69
2013 2014 2015 2016 2017 2018
Net Profit Attributable to Shareholders
（HK$ 100 million）
+33.0%
25 34 50
82
114 116
2013 2014 2015 2016 2017 2018
New Business Value
（RMB 100 million）
+36.2%
Note: this page shows the compound growth rate
Highlights and Consolidated Results of Operations
7
1,787
1,996
2017 2018
+11.7%
Total Premium
6,665
7,521
At 31 Dec 2017 At 31 Dec 2018
+12.8%
Total Assets
61
69
2017 2018
+12.2%
Net Profit Attributable to Shareholders
+12.7%
Basic Earnings Per Share
（HK$）
（HK$ 100 million） （HK$ 100 million）
（HK$ 100 million）
In 2018, Realised Steady Growth of Business Scale and Operating Efficiency
1.6
1.8
2017 2018
Highlights and Consolidated Results of Operations
(Cont’d)
8
Sticking to Value Growth, Returns on Owners Continued Improving
（RMB per share）
29.2
34.0
At 31 Dec 2017 At 31 Dec 2018
+16.6%
Group Embedded Value per Share Attributable to Shareholders
114
116
2017 2018
+1.7%
New Business Value
（RMB 100 million）
Highlights and Consolidated Results of Operations
(Cont’d)
9
Life Insurance Business Developed Steadily, with Business Quality Better Than the Industry, Market Influence Promoted Continuously
Direct premium of the PRC life insurance increased by 8.4% over the Last Year, outperformed the market
First year regular premium from individual insurance of the PRC life insurance, despite the weak market conditions, increased by 8.3% over the Last Year; high productivity (RMB300,000 FYP above) agents increased by 3.2% over the Last Year
Four persistency ratios of the individual agency and bancassurance channels of the PRC life insurance continued improving, stabilising the industry-leading position
Written premium income of the Overseas life insurance increased significantly, the layout of overseas branches achieved new breakthroughs, and the overall strength was further enhanced
P&C Insurance and Reinsurance Business Achieved Continual Underwriting Profit
Direct premium of the PRC P&C insurance increased by 9.8% over the Last Year, combined ratio outperformed the market, achieving continual underwriting profit
The overall combined ratio of the overseas P&C insurance business decreased by 2.3 percentage points to 96.9%, P&C branches of HK and Macau continued to maintain the market-leading position, overseas P&C insurance business realised rapid growth, with its premium increased by 30.3%*
Reinsurance business maintained rapid growth. Though being affected by catastrophes for two consecutive years, reinsurance business maintained underwriting profitability
* Caculated in HK$, and other data on this page are calcuted in RMB
Steady Growth of Investment Asset Scale with Investment Style Remains Prudent
The investment asset scale grew steadily and the contribution of net investment income was outstanding. At the end of 2018, the total investment assets of the Group was HK$595.9 billion, increased by 10.4%; the total investment income was HK$22.6 billion, increased by 4.3%, in which the net investment income was HK$25.3 billion, increased by 21.1%
The investment opportunities were better grasped and asset allocation was adjusted in a timely and effective manner. At the beginning of 2018, bonds and term deposits were allocated at the interest rate peak with good returns; during the Year, the equity position was effectively controlled below the industry average level, reduced the adverse impact of market fluctuations; at the end of the Year, more equities were allocated at lower market prices to raise the investment strategy of equites with low volatility, which is conducive to improving future returns
Continued optimising the position structure, and the relative returns outperformed the market. In 2018, the Group’s PRC stock and fund investment yield outperformed CSI 300 by 3.3 percentage points; PRC bond portfolio measured at fair value outperformed CSI Bond Fund Index by 2.1 percentage point
Further improved the real estate planning. Firstly, completed the layout of office buildings in first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen and formed the brand of “Taiping Finance Tower”; secondly, the Company won the land bidding in Sanya, which further improved the layout of the elderly-care communities
The risk management mechanism was comprehensive, and screening showed sound risk management results. In 2018, the Group’s overall bonds investment maintained high credit ratings, the risk control mechanism such as post-investment management continued strengthening, and risk screening showed sound results
Highlights and Consolidated Results of Operations
(Cont’d)
10
Net Profit by Business Segment
11
HK$ million
2018
2017
Change
Life insurance 6,176.64 6,081.76 +1.6%
Pension and group life insurance 67.12 95.27 -29.5%
PRC property and casualty insurance 340.39 362.72 -6.2%
Overseas property and casualty insurance
453.03 465.23 -2.6%
Reinsurance 539.26 743.76 -27.5%
Asset management business 457.65 484.02 -5.4%
Others* 785.89 (268.51) +392.7%
Net profit from operations 8,819.98 7,964.25 +10.7%
Non-controlling interests (1,936.41) (1,828.06) +5.9%
Net profit attributable to the owners 6,883.57 6,136.19 +12.2%
* Others mainly include the operating results of the holding company, TPIH (HK), TPFH and consolidation adjustments
Life Insurance Business Review
PRC
• TPL
12
Note1: The Group holds 75.1% of the equity interest in TPL, and 100% in TPL (HK) and TP Singapore
Note2: As overseas life insurance business is at the early stage, the results under the Group's life insurance business in 2018 were mainly contributed by TPL, the figures below were the results of TPL from its operations, before intra-group eliminations
Overseas
•TPL (HK)
•TP Singapore
13
New Business Value of PRC Life Insurance Maintained
Good Momentum, with Positive Growth for the Whole Year,
New Business Value Margin Kept Improving Steadily
NBV NBV Margin NBV in 1H
（RMB million）
2017 2018
11,599
11,401
1.7%
Individual 96.9%
Individual 95.2%
1.7pp
2017 2018
36.0%
35.5%
0.5pp
NBV in 2H
1H2017 1H2018
7,044 6,377
-9.5%
4,357
5,222 19.9%
2H2017 2H2018
Embedded Value of PRC Life Insurance
Sustained Rapid Growth
14
Embedded Value
119,541
98,109
At 31 Dec 2018 At 31 Dec 2017
（RMB million）
58,189
39,920
In-force Business Value
Adjusted Net Worth
71,490
48,051
+22.9%
+21.8%
Movement Analysis of Embedded Value of PRC
Life Insurance
15
Embedded Value as at the
end of 2017
119,541
New Business Value
98,109
Embedded Value as at the
end of 2018
11,599
Expected Return on Embedded
Value
8,094
2,517
Experience Variance and
Others*
Capital Injection or Dividend to
Owners
Minimum Capital
Dispersion Effect
Assumption and Model
Change
Note: Including differences between the actual experience and expected experience in terms of investment return, dividend,
mortality, morbidity, lapses, expenses, etc.
(141) (1,971)
（RMB million）
1,334
PRC Life Insurance Kept Focusing on High-Value
Individual Insurance Channel
16
2017 2018
2,989 4,008
43,697 30,175
84,648 112,158
2017 2018
64.5%
33.3%
2.3%
76.6%
20.6%
2.7%
Individual Agency
Group and other channels
Bancassurance
Note: 1. Other channels is mainly telemarketing
2. Figures may not match totals due to rounding
（HK$ million，%）
Further Increase in Proportion of Individual Agency Business
First Year Regular Premium from Individual Insurance Increased, Despite the
Poor Market Conditions, the Proportion of Long-term Protection Business
Increased Substantially, and Business Structure Optimised Significantly
FYRP from Individual Insurance
In 2018, first year regular premiun amounted to HK$31.36 billion, increased by 11.2% over the Last Year
In 2018, individual insurance continued to focus on the needs of our customers for health protection. The
proportion of long-term protection products increased by 8.3% over the Last Year, reached 46.1%, while the
proportion of long-term saving products decreased by 15.2% over the Last Year
In 2018, among the top five selling products, we had three long-term protection products for critical illnesses
17
+11.2%
313.6
282.1
2018 2017
FYRP Products Structure from Individual Insurance
46.1%
40.5%
13.4% Long-term Protection Products
Long-term Saving Products
Others
（HK$ 100million）
Note: Long-term protection products refer to the products of illness insurance, accident insurance, term life insurance and whole life insurance with an insurance period of more than one year
The Growth Rate of Agency Force Led Peers, High
Productivity Agents Continued to Grow
18
Number of Agents
（person）
513,015
384,169
At 31 Dec 2018 At 31 Dec 2017
13,779
13,357
At 31 Dec 2017
Number of High Productivity Agents*
（person）
At 31 Dec 2018
* High productivity agent refers to agent with RMB300,000 FYRP and above
+33.5%
+3.2%
Average Age 37
Average Age 37
Healthy Agency Retention, Business Organizations
Grew Steadily
2017 2018
Group 44,824 45,988
Agency Force per Group
8.3 11.1
Department 7,700 7,812
Agency Force per Department
48.6 65.7
Indicators of Agency Retention Rate
Indicators of Agency Force per Group and Agency Force per Department
(person)
19
81.0%
51.1%
20.6%
82.9%
48.6%
28.6%
6th Month Retention Rate 13th Month Retention Rate 24th Month Retention Rate
2017 2018
9,855
33,912
121,101
10,406
36,260
123,785 2017 2018
20
Income of Individual Insurance Supervisors
Increased Year-on-Year
Monthly Average Income of All Levels of
Individual Insurance Supervisors （RMB）
Note: the income on this page is the average monthly pretax amount payable each year
Business Manager Senior Manager Regional Director (including general manager)
Activity Ratio of Agency Force Remained Stable,
Productivity of Health Insurance Increased
21
2017 2018
Monthly Combined Activity Ratio
50.9% 49.1%
Probation Passing Ratio in Three
Months 40.8% 39.4%
Agents with Monthly RMB 10K
Sales of Regular Premium (Person)
45,497 57,864
2017 2018
Policy Per Month Per Capita
(Per) 0.7 0.8
Productivity Per Month Per Capita
(Regular, RMB) 7,761 9,394
Key Indicators of All Insurance Types
Key Indicators of Health Insurance
21 Note: calculated in RMB
Deepening Bancassurance Transformation to
Regular Premium, Promoting Long-term
Protection Business
67.9%
89.7%
2017 2018
14 years andbelow
15-19 years
20-29 years
30 years andabove
Protection Period Structure
Health Insurance Premium
0.01 0.09 0.20
1.14 1.04 0.88
3.99
2012 2013 2014 2015 2016 2017 2018
Bancassurance FYRP Payment Period Structure
（HK$ 100 million）
In 2018, the proportion of long-term protection business increased substantially, protection period over 30 years accounted for nearly 90.0%, mainly for whole life insurance, health insurance, long-term pension insurance. Among them, the FYP of health insurance reached HK$399 million, increased by 355.3% over the Last Year, business accounted for 7.4%
In 2018, the structure of regular premium products continued to optimise, among which 10 years and above account for 37.3%
22
62.7% 31.1%
6.2%
1-9 years
10 years and above
Others
23
95.0% 95.8% 96.0%
88.6%
92.0% 93.1%
13th month persistency ratio
25th month persistency ratio
94.0%
95.8% 96.2%
89.1%
91.7% 94.0%
13th month persistency ratio
25th month persistency ratio
Persistency Ratios of the Individual and
Bancassurance Channels Kept Leading the Industry
Individual Bancassurance
At 31 Dec 2016 At 31 Dec 2017 At 31 Dec 2018 At 31 Dec 2016 At 31 Dec 2017 At 31 Dec 2018
Note: According to communications with peers, TPL was No.1 in both Individual and Bancassurance Channels in terms of 13th month persistency ratio
PRC Life Insurance Premiums Maintained Steady
Growth, Solvency Remained Sufficient
24
（HK$ million）
Comprehensive Solvency Ratio
224% 246%
At 31 Dec 2018 At 31 Dec 2017
Direct Premiums Written
+11.4%
2017 2018
59.8% 73.6%
131,334
146,341
Renewal
Premium
FYP
107,679
78,495 +37.2%
P&C Insurance and Reinsurance Business Review
25
Note 1: The Group holds the 55% equity interest of TP Indonesia, and 100% equity interest of other companies above mentioned
Note 2: The figures below are the results of these companies from their operations, before intra-group eliminations
25
PRC
• TPI
Overseas
• TP UK
• TP Singapore
• TP Indonesia
Reinsurance
• TPRe
• TPRe (China)
HK & Macau
• CTPI (HK)
• TP Macau
Direct Premiums Written
（HK$ million）
Comprehensive Solvency Ratio
PRC P&C Insurance: Premium Income Achieved
Rapid Growth, Continued Making Underwriting
Profits, Solvency Remained Sufficient
25,441
28,684
2017 2018
216% 225%
2017 2018
26
+12.7%
Combined Ratio
52.2% 53.9%
47.3% 45.9%
2017 2018
Loss Ratio Expense Ratio
99.5% 99.8%
3,233
2,122
1,110
3,774
2,327
1,446
境外产险 港澳 海外
Overseas P&C Insurance and Reinsurance: P&C
Premiums Increased Steadily, Reinsurance
Developed Rapidlynce
Overseas P&C Direct Premiums Written
Reinsurance Premiums Written*
（HK$ million） （HK$ million）
* Including business of TPRe (China) and excluding universal insurance 27
4,290 4,732
6,768
8,820
2017年 2018年
+16.7%
+9.7%
+30.3%
+22.6%
Overseas P&C Other Overseas HK & Macau 2017 2018
2018 2017 Non-life Life
11,058
13,552
97.5%
99.2%
96.4%
98.1% 96.9%
98.6%
境外产再 境外产险 再保险*
Combined Ratio
28
Overseas P&C Insurance and Reinsurance: P&C
Insurance Combined Ratios Decreased, Affected by
Catastrophes, the Overall Ratio Increased Slightly
-2.3pp
* Non-life reinsurance business 28
+0.6pp
+2.2pp
Overseas P&C and Re Overseas P&C Reinsurance*
2018 2017
• TPP
Pension and Group Insurance Business Review
29
Note1：The Group holds 100% of the equity interest in TPP
Note2：The figures below are the results of TPP from its operations, before intra-group eliminations
Pension and Group Life Insurance Businesses:
Premium Income and Enterprise Annuity Kept
Rapid Growth
Enterprise Annuity Entrusted Assets
85,292
72,357
At 31 Dec 2018 At 31 Dec 2017
（HK$ million）
Enterprise Annuity Invested Assets
95,265
92,054
At 31 Dec 2018 At 31 Dec 2017
（HK$ million）
2018 2017
5,307
5,757
Premiums Written
（HK$ million）
+8.5%
+17.9%
+3.5%
30
Technology Empowerment
31
Technology Empowerment: Intelligent Operating
for Higher Quality and Efficiency
Smart Customer Service Robot
Receipt & Payment Platform
Electronic Contract Platform
The industry's first AI customer service robot “Xiaohui”, featuring high personification, stable quality, quick response, smart operations and bypass in busy hours, has served over 1 million users, and was honored with Shanghai Financial Innovation Award
The platform supports receipt & payment operations from various channels (real-time payment collection within one minute)
The platform integrates new technical applications including electronic insurance, problematic items, policies, invoices and receipts and supports mobile and paperless insurance for agents
“Taiping Cloud” Platform
Upon expansion and installation of 100+ physical nodes, the platform supports rapid deployment of new system and resource allocation as needed, features fast & efficient response and business development and aims to promote the transition of the Group’s information construction to “stable state + changing state”
32
Technology Empowerment: Digital Customer
Experience
Kept active application of big data, AI and mobile technologies in business development, claim
settlement and other links, so as to improve experience, lower cost and increase sales
claim settlement in
seconds
Remote survey and loss
assessment for motor insurance
“Taiping Insurance Manager” provides front-end business personnel with convenient sales tools based on Taiping Cloud and effectively supports the “Good Start” business featuring high concurrency and large flows
Based on the technologies like mobile internet, face recognition and OCR, TPL launched the service “Claim settlement in seconds” that provides extremely fast compensation at “second level”
TPI is capable of remote survey and loss assessment under the support of mobile internet, image enhancement and remote video, which greatly improves the timeliness of claim settlement for motor insurance Taiping Pension, based on the mobile internet,
builds the “Taiping E-Home” as a one-stop service platform on insurance purchase, insurance service and health advisory “Smart Operator” aims to provide the support to
business operation, assist the agents in customer acquisition and enhancement of sales management efficiency online and offline, thereby constantly improving customer experience
“Taiping Assistant” is an e-commerce service platform integrating operation management, sales support and value-added services. It is now being used by 300,000+ users, and records a total number of 90,000+ customers acquired for agents
33
Investment
34
At 31 Dec 2017 At 31 Dec 2018
（HK$ million）
Insurance Funds Investment in Assets
539,930
595,925
Allocation of the Group’s Insurance Funds
Note: Excluding funds used in operations, which includes cash, demand deposits and term deposits, of HK$9.0 billion (2017 year-end: HK$7.3 billion), and the effect of consolidation adjustment 35
+10.4%
% of Total At 31 Dec 2017
At 31 Dec 2018
Fixed income 79.0% 80.4%
Debt securities 45.4% 45.5%
Term deposits 9.9% 10.1%
Debt products 16.6% 16.7%
Other fixed income investments 7.1% 8.1%
Equity investments 14.0% 15.8%
Equity securities 4.8% 4.6%
Investment funds 2.2% 3.3%
Other equity investments 7.0% 7.9%
Investment properties 3.7% 2.9%
Cash, cash equivalents and others 3.3% 0.9%
Cash, cash equivalents 5.3% 4.1%
Securities purchased under resale agreements/ securities sold under
repurchase agreements -2.0% -3.2%
Total 100.0% 100.0%
20,904
25,319
743
(2,736)
2017 2018
Investment Income of the Group’s Insurance Funds
+4.3%
36
Note: 1. Including the income from the spread of investment securities, gain or loss on changes in fair value and impairment loss 2. Including the interest income from deposit, interest income from bonds, dividends from equity investments, rental income from investment properties
and deducting interest expense on securities sold under resale agreements 3. Including interest generated from funds for daily operations, but excluding income from insurance asset management products, funds, equity schemes that
has been classified as share of results from associates and joint ventures 4. In the calculation of total investment yield, as the denominator, the average investment assets takes into account the effect of securities purchased under
resale agreements and securities sold under repurchase agreements
Net realised and unrealised investment gains 1
Net investment income 2
Total investment yield 4
21,647
22,583
Net investment income increased by 21.1%, reached 25.3 billion, stabilised the growth foundation of investment income Due to recent stock market plunge in PRC and HK, equity investment recorded relatively high floating loss, with realised and unrealised investment loss of HK$2.7 billion Affected by the above factors, the total investment income increased by 4.3% from HK$21.6 billion in 2017 to HK$22.6 billion, and the total investment yield decreased from 4.48% in 2017 to 3.85% in 2018
3.85%
3
4.48%
Debt Investments: High Credit Ratings of
Debt Asset
PRC bonds investment represented 83.1% of the total debt investment. Within the PRC bonds, 99.7% were high rating bonds, such as government bonds, financial policy bonds, interbank deposits, bonds with AAA ratings and A-1 short-term financing bonds. Investment grade bonds with BBB ratings or higher reached 100%
29.0%
23.2%
0.5%
47.0%
0.3% 0.0%
Government Bonds Financial Policy Bonds Interbank Deposits AAA AA+ A-1
Foreign bonds investment constitutes 16.9% of the total debt investment, of which 70.1% were investment grade with international ratings, while the remaining were issued by government and large corporations, with adequate credit enhancements
37
Credit Ratings of PRC Bonds
Alternative Investments Credit Risk Profile
Regarding investment types, infrastructure creditor’s scheme and real estate creditor’s scheme accounted for 41.5%, trust plans accounted for 35.4%, asset management products and asset support scheme took a share of 12.3%, and the rest of 10.8% are overseas bond funds and convertible bonds
In terms of credit enhancement, quasi central government debts/bank guarantee and credit enhancement free products cover 21.9%, large-scale enterprise guarantee covers 13.4%, local state-owned enterprise and other guarantee products 48.1%, mortgage/pledge and priority inferior products 14.8%, the others 4.0%, and non-credit enhancement only 0.8%
Real Estate Financial Investment Debt Products
Real estate financial investment debt products of approximately HK$24.9 billion, represented only 3.3% of the total assets
The credit ratings of the real estate financial investment debt products were relative high, with major projects located in tier 1 or developed tier 2 cities
Purchased External Financial Products
Purchased external financial products of about HK$44.1 billion represented 5.9% of the total assets, the ratio increased by 1.1 percentage points over the 2017 year-end
Within the purchased external projects, 100% of them were with AAA ratings, mainly were from real estate, non-bank financial industry , transportation, commercial trade, etc.
The Proportion of Key Risk Exposure Accounting for Total Assets Remained at a Low Level
Note: Including exposures to each other, which is not directly in the total
Alternative investments held by the Group amounted to HK$164.1 billion, representing approximately
21.8% of the total assets, decreased by 0.3 percentage points over the Last Year-end, from which the
ratios of trust plans and special asset support plan financial products increased, investment portfolio
further diversified
The credit ratings of the PRC financial investment debt products remained relatively high, products
rated AAA accounted for 95.5%, products rated AA+ accounted for 4.5%
38
Alternative Investments: High Credit Ratings,
Risk Controllable
38
Outlook
39
Outlook: Promote the Development
Strategy in New Era
02. Technology Empowerment
01. Management Empowerment
03. Resource Empowerment
Improve the Group's overall
capacities
Overall transformation and
upgrading of the Group
04. Mechanism Empowerment
The goals of business operating: surpassing the market, competing at an advanced level, growing on steady basis and creating value
Implement the Empowerment Plan
Deepen the in-depth market-oriented reform, strengthen the construction of informatisation, promote the international strategic deployment
40
Outlook of Life Insurance Business
For PRC life insurance: Adhere to the philosophy of Customer First, to build an efficient and empowered team, implement international strategy, and be benchmarked against leading peers for enhancing competiveness and scale
For overseas life insurance: actively carry out the requirement of high-quality development, in the case of steady growth of business scale, optimise business structure continuously; achieve a steady start of life insurance in Macau and Singapore, continue to expand business scale
Outlook of P&C Insurance and Reinsurance Business
Seize the opportunities under the policies of Guangdong-Hong Kong-Macau Greater Bay Area, enhance customer service level and business expansion efforts which are led by innovation and driven by technological application, thus promote market influence continuously
PRC P&C insurance will accelerate the transformation and upgrading of operations of motor insurance while improving the scale and performance of non-motor insurances; Overseas P&C insurance firmly seize the opportunity of “The Belt and Road”, intensively develop the business of the local Chinese Enterprises, develop local profitable business. Reinsurance business will continue to lift professional and technical capabilities, risk management capabilities and international operation levels to achieve synergy between scale and efficiency
41
Outlook (Cont’d)
41
Investment In 2019, the momentum growth of global economy is weaker with slower growth. China's economy is
suffering from profound changes in the external environment and in the throes of internal structural adjustment, the economic downward pressure is greater, more determined in risks prevention, and macro-control policies need comprehensive consideration. Under this background, the Group will give full play to the long-term investment advantages of insurance funds, adhere to the concept of value investment, do a good job in strategic allocation, and flexibly carry out tactical adjustment according to changes in the situation
In respect of traditional investments, the emphasis will be placed on equity value investment and stable investment, the allocation of choosing the leading company with obvious competitive edges and the investment in the outstanding long-term equity by seizing the market opportunity of lower valuation for the overall equity market; continually enlarging the allocation proportion of bond investment with focus on asset quality and allocation structure improvement to achieve good selection of durations and varieties
In respect of alternative investment, the main investment strategy is to provide service for the real economy according to national strategies, with priorities to important investment opportunities such as “The Belt and Road”, Guangdong-Hong Kong-Macau Greater Bay Area, Hainan free port and national strategic industrial fund, and at the same time make use of the advantages of comprehensive financial layout and seek for elderly-care communities and medical health high-quality bids which can create synergistic effects to the main business of insurance. As for the real estate investment, on the one hand, we will optimise the allocation structure of existing office properties; on the other hand, we will enrich the financing model and construction model and strives for the best return
Following the spirits of the Central Economic Working Conference, we will proactively prevent and dissolve major risks, especially the credit default risk, continue to carry out checking and ruling out of stock assets, promote the infrastructure construction of risk control information, adhere to the principle of “Through to the End”, figure out the risk limit and prevent the systematic risks and material risks
42
Outlook (Cont’d)
42
Questions and Answers
43