Dedicated to value creation, we are a fast-growing, privately owned insurance group in the PRC that provides comprehensive solutions focusing on professional risk protection and diverse service offerings to our customers.
We carry out our life and health insurance business mainly through Sunshine Life, offering approximately 140 products covering life insurance, health insurance and accident insurance. We carry out our property and casualty insurance business mainly through Sunshine P&C, offering over 4,000 property and casualty insurance products covering automobile insurance, accident and short-term health insurance, guarantee insurance, liability insurance, agriculture insurance and commercial property insurance. We primarily manage our insurance funds through Sunshine AMC.
‧ According to data published by the China Banking and Insurance Regulatory Commission (“CBIRC”) and the Insurance Association of China, Sunshine Life ranked 12th among 91 PRC life insurance companies with a market share of 1.7% in terms of Original Premiums Income (“OPI”) in 2020.
‧ According to data published by the CBIRC and the Insurance Association of China, Sunshine P&C ranked seventh among 87 PRC property and casualty insurance companies with a market share of 2.7% in terms of OPI in 2020.
‧ As of June 30, 2022, our Group’s total investment assets amounted to RMB416,267 million. Our total investment yield was 5.8%, 6.5%, 5.4% and 4.2% (annualized) in 2019, 2020, 2021 and the six months ended June 30, 2022, respectively.
We have achieved growth and development during the Track Record Period. Our GWPs increased from RMB87,907 million in 2019 to RMB101,759 million in 2021. Our net profit attributable to equity owners of the parent increased from RMB5,086 million in 2019 to RMB5,883 million in 2021. Our total assets increased from RMB332,558 million as of December 31, 2019 to RMB441,623 million as of December 31, 2021. In the six months ended June 30, 2022, our GWPs and net profit attributable to equity owners of the parent was RMB62,952 million and RMB1,727 million, respectively. As of June 30, 2022, our total assets amounted to RMB473,637 million. In 2019, 2020, 2021 and the six months ended June 30, 2022, our return on average equity was 11.0%, 10.6%, 10.3% and 6.1% (annualized), respectively.
We have a balanced business structure consisting primarily of life and health insurance business and property and casualty insurance business.
We provide individual and institutional customers with diversified insurance products and services through our nationwide sales and service network. As of June 30, 2022, Sunshine Life and Sunshine P&C had 2,855 branches, including 68 provincial-level branches and 2,787 city-level sub-branches, county-level sub-branches and sales and service outlets, covering all provinces, municipalities and autonomous regions across the PRC, 94.3% of the prefecture- level cities, and 63.0% of the districts and counties. In addition, we have 2,083 exclusive agency (“EA”) outlets, which further expand our business network. As of June 30, 2022, Sunshine Life had approximately 62,000 individual insurance agents and over 5,400 bancassurance salespeople, providing life and health insurance products through its 27,628 bancassurance branches and outlets. As of June 30, 2022, Sunshine P&C had approximately 44,000 individual insurance agents and approximately 15,000 in-house salespeople. As of June 30, 2022, we had a large customer base consisting of approximately 31.5 million individual customers and approximately 800,000 institutional customers.
The combined ratio of Sunshine P&C exceeded 100% in 2020, primarily because the combined ratio of Sunshine P&C’s non-automobile insurance exceeded 100% in 2020. The combined ratio of Sunshine P&C exceeded 100% in 2021, primarily because the combined ratio of Sunshine P&C’s automobile insurance exceeded 100% in 2021.
In 2020, the increase in the loss ratio of Sunshine P&C’s insurance business was caused by the increase in the loss ratio of both automobile insurance products and non-automobile insurance products. Specifically, the increase in the loss ratio of automobile insurance products was primarily due to the nationwide implementation of the unified personal injury compensation standard for urban and rural residents, resulting in a significant increase in claim payments for in-force insurance policies. The increase in the loss ratio of non-automobile insurance products was primarily due to the impact of the COVID-19 pandemic, which affected the short-term repayment capacity of Sunshine P&C’s customers of guarantee insurance, resulting in a year-on-year increase in net claim payments.
In 2021, the increase in the loss ratio of Sunshine P&C’s insurance business was mainly caused by the increase in the loss ratio of automobile insurance products. The increase in automobile insurance products’ loss ratio was primarily due to (i) the impact of the comprehensive reform of automobile insurance industry launched by the CBIRC in September 2020, which led to lower premium per unit, but contributed to a significant improvement on the degree and scope of risk protection for automobile insurance customers; and (ii) the enlarged losses and claims caused by the catastrophic floods in Henan Province in 2021.
In the six months ended June 30, 2022, the loss ratio of Sunshine P&C’s insurance business was improved, primarily due to the decrease in the loss ratio of automobile insurance products, liability insurance products and commercial property insurance products. In terms of automobile insurance products, we continuously optimized the “intelligent life table for automobile insurance (車險智能生命表)” through big data and AI algorithms to continuously improve our pricing capabilities and to enhance our capability of responding to the comprehensive reform of the automobile insurance industry and streamlining business opportunities. Specifically, based on traditional actuarial pricing system, we enhanced risk assessment in relation to automobile insurance products with the help of big data analysis of automobile-related information, such as the brand and price of the automobiles and the number of claims made in recent three years. With improved risk assessment, we enhanced capabilities of pricing and streamlining business opportunities as we adopted relatively competitive pricing strategies for automobile insurance products with relatively low risks while we strictly controlled the pricing for products with relatively high risks. In terms of non-automobile insurance products, we strive to enhance our capabilities in relation to risk identification and pricing. We set detailed rules for evaluating and adjusting ultimate loss ratios and enhance precise pricing for different products, industries and regions. Specifically, we have internal policies and rules such as the Rule for Adjusting Ultimate Loss Ratios (終極賠付率調整規則) that set mechanisms to evaluate ultimate loss ratios based on the risk assessment of different products, industries and regions, taking into consideration risk factors such as the claim settlement history and significant claims in relation to different products, industries and regions. Also, seasonality contributed to the improvement of loss ratio in the six months ended June 30, 2022, as severe natural disasters occurred in 2020 and 2021 while none in the six months ended June 30, 2022.
Source: Sunshine Insurance (06963) Prospectus (IPO Date : 2022/11/30) |