Ping is in the early stages of strategy development
?Ping is in the early stages of strategic development
?Weng Comments: China&#39;s insurance industry, demand continues to
determine the long-term high growth is a very large probability of the event!
?China&#39;s insurance industry, demand continues to determine the long-term
high growth is very large probability of the event!
Demand from the insurance risk, no risk no insurance, risk insurance demand is the
foundation of the economic conditions permitting, the more the insurance risk more,
and how much risk and how much the people&#39;s social activities, social and
more development of faster pace of life, the greater the risk, such as economic
development and upgrading of social, people have cars, on the one hand alert traffic
convenience, on the other hand the introduction of the traffic risk, resulting in the car
insurance, bring more aircraft fast traffic, but also introduced new risks, so there
aviation insurance. Social progress, the faster pace of life of people exposed to the
risk of more in this sense, with the increased risk of human and social development
will expand the basis of the insurance, insurance, the level of demand and the
economy. A country&#39;s income level has been the impact of the insurance
needs of the most important factor. Insurance needs with the rising income levels and
history of the development in accordance with international information security: per
capita GDP from 2000 to 10,000 U.S. dollars in between, the premium growth rate
can reach 15% to 20%.
In 1999, premium income of 139.322 billion yuan nationwide, up 10.17% over
In 2000, premium income of 159.59 billion yuan, up 14.5%.
In 2001, premium income reached 210.94 billion yuan, an increase of 32.19%
In 2002, China&#39;s premium income reached 305.31 billion yuan, up
44.7% over 2001
In 2003, premium income reached 388.04 billion yuan, up 27.1%
In 2004, premium income reached 431.81 billion yuan, up 11.3%
In 2005, the annual premium income of 492.73 billion yuan, up 14%.
Domestic premium income in 2006 reached 564.14 billion yuan, up 14.4%
2007 premium income of 703.5 billion nationwide by 25%
From January to August this year, premium income reached 713.399 billion yuan
nationwide, up 52.24%. (Insurance industry is able to counter-cyclical industries, even
in the macro-control year, so do not need to worry about the future of the insurance?)
Data show that the national premium income in 1980 was 4.6 billion premium
income in 2007 has increased to 703.576 billion yuan, an average annual growth of
Worldwide premium income in 2003 was 2.94067 trillion U.S. dollars. Among
industrialized countries, accounting for 89.32 percent market share worldwide, of
which the United States accounting for 35.89%, Japan accounted for 16.28%;
emerging market countries and regions accounted for 10.68%. China in 88 countries
and territories, ranked 11th, accounting for 1.6%. Premium income in 2002 was the
largest the United States, to 1.055498 trillion U.S. dollars; followed by Japan, to
478.865 billion U.S. dollars; followed by the United Kingdom (246.733 billion U.S.
dollars), Germany (107.811 billion U.S. dollars), France (163.679 billion U.S. dollars),
Italy (111.761 billion U.S. dollars), Korea (59.758 billion U.S. dollars), Canada
(59.144 billion U.S. dollars), the Netherlands (50.266 billion U.S. dollars) and Spain
(47.014 billion U.S. dollars). China&#39;s premium income in 2003 compared
to previous years more than the income of South Korea.
While China&#39;s premium revenue is increasing at a rate of 30%, but
China&#39;s insurance penetration is only 3% currently.
Depth refers to the insurance premium income accounted for a gross domestic
product of the land (GDP) ratio, reflecting the way the insurance industry&#39;s
position in the national economy. Insurance depth depends on a country&#39;s
overall economic development level and pace of development in the insurance
industry. Insurance density is defined as the local population&#39;s per capita
amount of the premium. Insurance density reflects the way people participate in the
degree of insurance, the insurance industry of a country&#39;s national economy
and the level of development.
Insurance in 2003 the global average depth of 8.06%, ranking the
world&#39;s top 10 countries or areas were: South Africa (15.88%), United
Kingdom (13.37%), Switzerland (12.74%), Japan (10.81%), Belgium ( 11.61%),
China Taiwan region (11.31%), Barbados (11.29%), Netherlands (9.77%), Korea
(9.63%), United States (9.61%). China is in 88 countries and regions for the first 44,
the insurance depth is 3.33%.
(3) Insurance density.
Insurance density is calculated according to the national population, the average
premium amount. It reflects a national average level by the insurance.
China&#39;s insurance market in 2006 the insurance density was 55.3 U.S.
dollars, while the world average level of insurance density was 512 U.S. dollars,
China&#39;s 9 percent.
China&#39;s insurance industry, demand continues to determine the long-term
high growth is very large probability of the event!
Supply and competition in the China Insurance
The following are the various life insurance companies in the original market share
of premium income, market share position to prevail in 2007.
National market share of life insurance (15 before 2007):
Rank Company Name 2007 2006 2005
1 China Life shares 45.3% 44.1% 39.7%
Ping An Life 2 16.1% 16.0% 17.0%
CPIC Life 3 9.3% 9.9% 10.2%
4 Tai 6.9% 5.1% 4.9%
Xinhua 6.6% 6.6% 5 5.8%
6 China Life Insurance 4.2% 6.0% survival of 6.9%
TPL 3.2% 7 2.8% 2.2%
8 AIA 1.7% 1.8% 1.8%
9 Life Life 1.3% 0.8% 0.9%
PICC Life Insurance 10 0.2% 0.0% 0.9%
Life in the United Kingdom 0.7% 11 0.3% 0.2%
12 0.7% 1.3% Italy 5.5%
Minsheng Life Insurance 13 0.7% 0.3% 0.2%
14 Union Life 0.6% 0.4% 0.2%
Prudential 0.6% 0.4% 15 0.3%
The top three market share: 66%
The top five market share: 80%
The top five market share: 90%
According to theory of competitive structure, market structure that is fully
competitive market structure of oligopoly. In such a structure, stability is the basic
characteristics of the industry, the industry is not prone to vicious competition, the
status of the industry&#39;s basic order and is not very easy to change
Property insurance company from January to August 2008, the original insurance
premium income table
Name of the original insurance premium income unit: million
PICC shares 6,613,243.23
Taibao financial 1,776,876.77
Ping Choi 1,648,508.09
Chinese joint 1,235,927.55
Sunshine Property 330,593.60
China Life Property 291,285.64
Taiping Insurance 254,126.50
National Total 17,266,534.10
The top three market share: 57%
The top five market share: 63%
The top five market share: 71%
Property insurance market concentration is essentially an oligopoly, but his
concentration lower than the life, the future status of property insurance market may
be minor changes! About why oligopoly market structure is relatively stable, the
reader can see the market structure determines corporate behavior, corporate behavior
determine corporate performance theory.
The whole insurance company has now formed the oligarchy of the competitive
structure, unless the policy to a large number of established insurance companies,
without which the industry leader, leading not fundamentally changed.
Ling Tung, according to statistics of China currently has more than 100 securities
firms, fewer than 100 fund companies, nearly 100 insurance companies, according to
leading financial institutions in general are the economic characteristics of 100 can be
speculated that China&#39;s insurance companies As a general limit is 100,
while the insurance company is now 100, so less likely to re-emergence of a new
Ling Tung, therefore that the supply of China&#39;s insurance industry will
not have a lot of influx of new companies, plus now has entered Zhuangtai Oligarchy,
Du major companies within the industry with a stable environment for the
development, the basic position within the industry will not easily change
Combined with the insurance industry both demand and supply, Ling Tong that in fact
the insurance industry of the future development has Henming Que, demand
continues at a high-growth industries 中 and supplies are You would not
substantially grown, and behaviors within the company Quyulixing of, in this industry
demand characteristics of the supply is extremely powerful in the industry&#39;s
leading enterprise growth, this industry leader to become the next great growth stock
Any of a growth stock, to the roots bar in a good industry, good Xingye unlimited
growth of the concept of yes Xu Qiu, Gong Ji relatively concentrated, You Zhege
features the industry&#39;s technical process is relatively simple, Xianzai the
insurance industry are conducive to growth on the comparison, Zhu Yu this situation.
Leading the industry in general good will be growth stocks, so a basic analysis of the
industry, the company&#39;s profitability depends mainly on two indicators, one
is ability to grow and the growth, profitability and the second is profitability,
following the three listed insurance companies we have the profitability and growth
data plan to do more, see next who will have more advantages.
Since there is no property insurance in China Life, the more so in property
insurance, the only two companies, we see two property insurance
company&#39;s revenue growth is sustainable and stable, and China Ping An in
2003 and 2007 has remained an stable growth rate, as the Pacific are at stable growth
in the insurance company.
Look at the growth of life insurance, life insurance income the three curves are
almost parallel, are in steady growth, this data confirms the life insurance industry as
a whole is already in stable growth period
Life insurance or property insurance, whether a few large companies in general in
revenue growth, this general growth of the industry in the growth stage of the reaction,
competition is more stable response.
Property insurance company rate changes, the two most recent years of property
insurance companies growth rate is always between 15% -30%, and there is a clear
message that property insurance company&#39;s revenue growth is accelerating
growth in recent years , which reflects the socio-economic development, people
following the increase in the size of property, the property insurance, a corresponding
increase in the scale of the future will increase people&#39;s income, property
insurance growth will continue. Growth in the property insurance plan, China Ping
An&#39;s growth in the longer period of time, more than China Pacific
Insurance. Ping An and China Pacific Insurance China&#39;s future status in the
industry may change.
Life insurance company&#39;s income growth rate, China Pacific Insurance
in the recent two years, rapid growth, this may reflect a small, growing company in
the industry is relatively easier to find, the larger the growth rate of China Life was
maintained at 10 % of Ping An&#39;s earnings growth rate between China Life
and China Pacific Insurance, between the growth rate of the comparison process, we
see more small companies, growth rate faster, so the future with the scale, growth line
In comparison to the growth data, Ling Tong that the growth target, all companies
are growing. The growth speed is relatively small companies faster, slower big
companies. But the company&#39;s growth is very stable and relatively low
volatility of growth, and some small companies with high growth potential, but the
volatility difference, from this perspective, the big insurance companies the certainty
of the future high.
Let&#39;s look at the profitability of major companies comparison
See more from the investment income, Ping An&#39;s investment income in
2006 and 2007 significantly higher than peers in the bull market, bear market is in line
with peers. In the bear market intermediary in the other two companies, we say that
the investment capacity of the major insurance companies refer to capital market
investment capacity, not a fixed interest rate and bond investment capacity. Ping can
be seen in the capital market improves significantly higher than the rate of investment
income counterparts, reflecting the company&#39;s ability to invest in capital
markets than peers, and capital market investment capacity than peers also means that
the overall investment capacity than Ping peer high.
Net profit margin of China&#39;s Ping An observation we see the continued
higher than counterparts in most of the time to maintain net profit margin of 6%,
China Life&#39;s net profit margin slightly lower than the safe, but Taibao both
numerical and stability in the net interest margin over both poor, reflecting the
volatility of a large company, the future uncertainty poor.
Return on net assets of the companies observed the same, generally maintain a 10%
- 15% return on equity. More time in safe lead.
We see by comparing the profitability, the peace was stronger than life, life is
stronger than Taibao. Taibao worst profitability.
We are the growth and profitability together and study the three companies, three
companies maintained the same growth, slightly stronger in the Pacific Insurance,
Ping An area in the profitability was stronger than the other two companies. And
supports the profitability of the investment capacity of insurance companies the
advantages of peace more visible. In this sense the future the ability to create
shareholder value peace more! Ping the greatest potential for growth in future value!
Through analysis of the insurance industry and financial data on the three more,
Ling views the, Youyubaoxian in China Zhengzai Chengchangchuqi, and the industry
has Chuyu oligarchic stage of monopoly coupled with peace in the profitability
Nenglishangyou Mingxian advantage is Jiao Ping Large established companies,
although the process would be very tortuous and complicated! Ling Tong also believe
that China Life&#39;s future comparison to determine, at a certain price level is
also a good investment value, the China Pacific Insurance Ling Tong that should be