2023 Interim Results Highlights:
-- The Gross Written Premiums (GWPs) reached RMB67.81 billion, representing a YoY increase of 7.7%;
-- The insurance revenue reached RMB30.16 billion, representing a YoY increase of 7.3%;
-- Net profit attributable to equity owners of the parent reached RMB2.90 billion, representing a YoY increase of 9.0%;
-- The embedded value was RMB104.98 billion, up 3.7% from the end of last year;
-- The value of the life insurance's new business was RMB 2.68 billion, representing a year-on year increase of 37.1%;
-- The annualized total investment yield was 4.9%;
-- As of June 30, 2023, the Group had approximately 31.92 million active customers.
In the first half of 2023, despite a complex and challenging external environment, China's economy continued its recovery and showed remarkable resilience. This presented significant opportunities for the Group as the country's economic revival sustained, driving increased demand from residents and accelerating industry transformation. Taking advantage of these favorable conditions, the Group has seized the favorable circumstances and risen to the occasion, with fully embracing the new development philosophy and model, a focus on the core insurance business and enhancing enterprise value and leveraging innovation to provide the necessary impetus for business growth. As a result of these strategic efforts, the Group successfully achieved its operational targets for the first half of the year.
In the Reporting Period, the overall operating performance of the Company grew steadily, and its ability to create value had been continuously enhanced, maintaining a sound growth momentum. The Gross Written Premiums (GWPs) of the Group were RMB 67.81 billion, representing a year-on-year increase of 7.7%; and the insurance revenue reached RMB 30.16 billion, representing a year-on-year increase of 7.3%. The net profit attributable to equity owners of the parent increased by 9.0% YoY to RMB 2.90 billion. The embedded value was RMB104.98 billion, up 3.7% from the end of last year. The annualized total investment yield was 4.9%. As of June 30, 2023, the Group had approximately 31.92 million active customers.
Adhering to the high-quality development of the core insurance business and the net profit attributable to equity owners of the parent increased by 9.0%
In the first half of the year, China's national economy recovered and kept improving, building an important foundation for the strong recovery of the insurance industry. As a leading insurance company in China, the Group kept focusing on the insurance business which is the main business, with life insurance and property and casualty insurance businesses progressing in tandem and developing in a balanced manner. In the first half of the year, the Group further consolidated the business model of diversified and synergistic development of sales channels in its life insurance business, and the value of new business continued to increase; For the property and casualty insurance business, the Group continued to deepen the project of the intelligent life table for automobile insurance and the non-automobile data insurance life tables, and its profitability continued to improve.
As for the life insurance business, the "contracyclical" nature of insurance products combining "protection" and "savings" continuously continued to drive the demand to increase, making recovery the main theme of the industry. Sunshine Life Insurance seized the development opportunity, achieved a new breakthrough in its development insisted on value-based development unswervingly and strengthened its own resilience and stability for development, also advanced its customer strategy of "Matrix Plan" in a solid manner by centering around on the entire life cycle of customers' families. The Group had continued to promote its steady development through customer demand identification, product system improvement, service system upgrading, team transformation and development, and data intelligence innovation. During the Reporting Period, the structure of our life insurance business continued to be optimized and the value of new business achieved relatively fast growth. The GWPs of the life insurance were RMB 45.85 billion, representing a year-on-year increase of 9.0%; The single premiums were RMB 13.95 billion, representing a year-on-year increase of 53.4%; The value of half year's new business was RMB 2.68 billion, representing a year-on-year increase of 37.1%.
As for the property and casualty insurance segment, with the economy continuing to recover, the industry as a whole maintaining a high level of prosperity, what is even more encouraging was that the optimization of the structure of the industry's automobile insurance business and non-automobile insurance business had been further strengthened, with significant diversification, which was a significant advantage for the industry to leapfrog the cyclical fluctuations in the future. Similarly, Sunshine P&C further strengthens the foundation for high-quality development, continued to be customer-centered and adhered to the development concept of prioritizing profitability while pursuing growth, continuously optimized its business structure and improved its profitability, consolidated a solid foundation for high-quality development. During the reporting period, The Original Premium Income (OPI) was RMB21.93 billion, representing a year-on-year increase of 5.1%; the value-oriented business and strategically-focused areas achieved rapid growth, of which the growth rate of personal vehicle premiums was 9.5%, of new energy vehicle premiums was 80.3%, of agricultural insurance premiums was 42.9% and of policy-supported health insurance premiums was 74.6%; with strengthened business management and risk screening, the underwriting combined ratio was 98.2%, representing a year-on-year increase of 0.7 percentage points.
As for its asset management business, the Group adhered to the concept of long-term value investment, continued to optimize its asset and liability management system, improved its investment management system, gave full play to its advantages in terms of all-round investment qualities and diversified investment capabilities, and adhered to strategic asset allocation that matches the characteristics of its insurance liabilities and traverses the macro-economic cycle, so as to build up an investment portfolio that was designed to realize long-term, stable and sustainable returns. As of June 30, 2023, the Group's total investment assets amounted to RMB 466.60 billion, representing an increase of 12.4% as compared with that of the end of the previous year. The total investment income amounted to RMB 7.69 billion, representing a year-on-year increase of 1.3%, with an annualized comprehensive investment yield of 4.9%. The Group gave the full play to professional advantages, with third-party assets under management of RMB 366.49 billion.
Adhering to Value Development and Continuously Improving Customer Service Capabilities
In addition to focusing on its insurance business, the Group also attached importance to the realising of value development and continues to promote its customer strategy to build a customer-driven development mode. Centering on building a customer-oriented diversified product and service system, the Group had continued to advance its "Matrix Plan" and "Partner Initiative", and its customer service capabilities had continuously been improved, thereby consolidating its position in the industry and laying a solid foundation for future development.
For individual customers, Sunshine Life Insurance continued to push froward the "Matrix Plan", for which, focusing on the core needs of customers at different stages of their family life cycle, we had launched a massive research on customer needs, to form a life protection guide map with Sunshine's characteristics, to enrich the "Insurance + Service" product supply system and to optimize customer service experience. As of June 30, 2023, Sunshine Life Insurance had approximately 13.51 million active customers.
In terms of institutional customers, we had continued to promote the implementation of the "Partner Action" mode in the form of "insurance + technology + service" and piloted the promotion of Internet of Things perception technology services, including infrared thermal imaging and wireless smoke sensors to create and form an industry-specific risk management solutions, and to assist customers in risk reduction. As of June 30, 2023, Sunshine P&G had 19.14 million active customers.
While focusing on the main business areas of insurance and maintaining a leading position in the life and property and casualty insurance markets, the Group had always adhered to the principle of value development and won a good reputation in the market through continuous improvement in customer management. With the continuous growth of the results and the accumulation of customer recognition, the Group had attracted long-term attention from the market for its intrinsic value, while its operating resilience and long-term investment value had also been fully demonstrated.
Accelerating the Overall Arrangement for Data Intelligence Innovation driven by proprietary development and external collaboration
During the Reporting Period, the Group established a data intelligence innovation layout driven by both internal autonomy and external collaboration. It built "three robots", namely sales robot, management robot and service robot. It also strengthened its core capabilities in customer management and content operation and continued to optimize the depth and breadth of customer services to enhance customer experience. The service robots provided 70% of intelligent business operations and over 90% of intelligent consultation services to voice call customers.
At the same time, the Group continued to promote digital intelligence transformation through the application of big data. The Group strengthened its integration of and insights into internal and external data, supported marketing with artificial intelligence technology, and improved customer conversion efficiency and capabilities. It also improved the "intelligent automobile insurance life table" system, established a non-automobile management system with non-automobile data life table as the core and strengthened risk pricing capabilities. The Group upgraded the construction of risk control platforms and continuously improved risk control capabilities.
In addition, the Group firmly promoted the strategic project of Sunshine GPT. It focused on the R&D breakthrough of private large models in the insurance field, realized multiple intelligent support capabilities such as multi-application entrance, multi-modal service support, and multi-business scenario integration, and accelerated the application in core business scenarios such as customer service and sales support. Within 3 months after the launch of Sunshine GPT, it had been used 345,000 times.
With Dual Engine of "Entrepreneurial Gene" and "Sunshine Culture", Actively Fulfilling the Social Responsibility and Conveying the Warmth of Sunshine Insurance Group
The satisfactory growth trend was closely related to the good foundation laid during the founding period of the Group and the continuous promotion of its corporate culture. As an entrepreneurship-driven enterprise, the Group was one of the rare insurance companies that have sought shareholders in the form of entrepreneurship and obtained approval. Due to its uniqueness, the entrepreneurial spirit of the Group of "daring to face and overcome challenges with perseverance" was formed during the original founding period, which had injected the strong gene of "striving" into its future development, laid the foundation of the value proposition and entrepreneurial spirit of the Group, and had become a genetic force for the Group's continuous development and expansion.
In addition, the building of corporate culture was one of the important strategic resources for an enterprise to survive and develop, and it was a precious material and spiritual wealth that an enterprise should cherish, which could both enhance its competitiveness and was a key factor in the construction of a harmonious enterprise. The Sunshine culture of the Group had actively permeated into all aspects of the management, and accumulated and precipitated genetic culture at the time of its foundation, a basic core culture at the time of commencement of the business of the Group, a complete core culture after the commencement of its business, and gradually developing into itemized cultures and post cultures covering all areas of the Group, thus constructing a rich and perfect cultural system, forming a unique, solid, systematic and complete Sunshine culture, which was going to be integrated as the determination of adhering to the main business and pursuing values.
It was worth mentioning that, under the dual influence of "entrepreneurship gene + cultural blood", the Group, bearing in mind its social responsibility and mission, had taken practical actions to support the real economy, fulfil its social responsibility and practice sustainable development. In the first half of 2023, the Group provided risk protection of RMB 32.6 trillion for the real economy, RMB 66.98 billion for " Belt and Road" projects, RMB 126.90 billion for about 15,000 SMEs, and assisted SMEs in obtaining financing amounting to RMB 5.39 billion; provided assistance for the construction of 73 charity schools and the training of 17,733 rural doctors in 24 provinces across the country; provided green insurance protection of RMB 6.0 trillion to 754,000 enterprises and individuals, and provided compensation support amounting to RMB 1.74 billion; and, as of the first half of 2023, the balance of sustainable investment exceeded RMB 50 billion.
Looking ahead, the insurance market in China will continue to have great potential for growth, driven by factors such as the overall robustness of the economy, the accumulation of wealth among residents and an ageing population. With the mission of "bringing more sunshine to people" and the pursuit of "becoming the leading professional insurance service provider for families, as well as the trusted risk management partner for enterprises", the Group will continue to implement the development requirements of "striving for quality and seeking further progress based on quality" and solidly promote the "Matrix Plan" and the "Partnership Action", so as to accumulate the development strength unceasingly.
About Sunshine Insurance Group Company Limited
Sunshine Insurance Group Company Limited is a fast-growing private insurance service group in China. Since its establishment, the Group has focused on value creation and been committed to providing customers with professional risk coverage and integrated service solutions. The Group carries out life and health insurance business through Sunshine Life, property and casualty insurance business through Sunshine P&C and manages insurance funds through Sunshine AMC. As of 30 June 2023, the Group has been ranked among the top 500 Chinese enterprises by the China Enterprise Confederation for 12 consecutive years and has been entitled as one of the "Top 500 Valuable Brands in China" by the World Brand Lab for 12 consecutive years.
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