2022 Annual Results Highlights:
-- Revenue increased by 7.2% YoY to RMB128.58 billion, in particular, total income increased by 6.9% YoY to RMB108.74 billion;
-- FYRPs of Sunshine Life increased by 9.3% YoY to RMB14.75 billion;
-- The value of one year's new business was RMB3.02 billion, realising positive YoY growth;
-- Premiums of Sunshine P&C reached RMB40.38 billion, realising underwriting profits;
-- Net profit attributable to equity owners of the parent reached RMB4.88 billion;
-- Embedded value increased by 8.0% to RMB101.27 billion.
The year 2022 was a very unusual and extraordinary year. Facing with the stormy international environment as well as the difficult and heavy task of stable reform and development in China, and under the times of coexistence of both opportunities and challenges, the Group responded to the times and the challenges, insisted on the development concept of "Prioritize Stability, Prioritize Good", cultivated new opportunities in the crisis and opened up new situation in the changes, focused on insurance as the core business and strove to value development, provided momentum for business development through innovation and successfully achieved all business targets.
Focus on Insurance as the Core Business to Write a New Chapter of High-quality Development
As a fast-growing insurance enterprise in China, the Group has never forgotten its original intention, and adhered to its mission of "bring more sunshine to people", assuming the role of economic "shock absorber" and social "stabilizer". In 2022, the Group focused on insurance as the core business, fully balanced insurance business, made steady growth in overall operating results and continuously enhanced its capability for value creation. The total income increased by 7.2% YoY to RMB128.58 billion, embedded value increased by 8.0% to RMB101.27 billion and net profit attributable to equity owners of the parent reached RMB4.88 billion.
For life insurance, in 2022, with the volatile global economic environment, the transformation of insurance industry was experiencing challenges. In this regard, Sunshine Life persisted in striving to create value and actively explored new ideas for development based on its profound understanding of the market environment and changes in customer demand. Through the insight of customer demand, team transformation and upgrading, product system improvement, service system construction, digital innovation and other measures, the Company continuously promoted the high-quality and healthy development. During the Reporting Period, our GWPs was RMB68.30 billion, increased by 12.3% year on year; The value of one year's new business was RMB3.02 billion, achieving a rare positive growth in the industry.
For property and casualty insurance, the Group mainly provided property and casualty insurance products and services through Sunshine P&C. During the year, Sunshine P&C enhanced profitability capacity, optimized business structure, and further consolidated the foundation of high-quality development. During the Reporting Period, Sunshine P&C achieved anet profit of approximately RMB1.6 Billion, with loss ratio of 65.0%, and expense ratio of 34.9% according to the data. In the whole year, the OPI was RMB 40.38 billion.
Practice Value Development to Demonstrate Long-term Investment Value
In addition to focusing on insurance as the main responsibility and core business, the Group has also persisted in practicing value development, focused on asset-liability management while improving customer operation capabilities, and built a solid development moat for consolidating its own industry position. According to the result report, in 2022, the Group achieved a total investment yield of RMB20.13 billion, increased by 5.4% year on year; The total investment yield was 5.0%. The Group has also continuously improved its comprehensive investment management capability and customer service level among multiple assets, strategies and customers, and the asset management scale of third party reached RMB414.98 billion, increasing by 21.4% year on year.
In terms of customer operation, Sunshine Life adopted a customer-oriented business model and implemented a "Two-Dimensional Plan" around the whole life cycle of customer's family, and constantly improved the construction of "Insurance plus Service" products and ecological service system. By the end of 2022, the number of effective customers of Sunshine Life had reached 14.95 million; Sunshine P&C continued to deepen the insight research of customer demand, steadily promoted the implementation of "Partner Action", and helped corporate customers achieve risk reduction and value improvement. In 2022, it provided scientific disaster mitigation and professional risk consulting services to more than 4,300 important corporate customers. By the end of 2022, the number of effective customers of Sunshine P&C reached 18.72 million.
Under the background of focusing on the main business of insurance, the market share of both life and health insurance and property and casualty insurance being at the top and adhering to value development, the Group's intrinsic value is expected to receive long-term attention from the market with the subsequent growth in performance, and its operational resilience and long-term investment value will fully emerge. Recently, securities dealers, such as CICC, Huatai and Soochow, have released in-depth analysis research reports on Sunshine Insurance (06963.HK), rating the Group as "Outperform" and "Buy", etc. It is expected that the Group's target stock price in 2023 still has more than 25% upside compared with the current price, and its long-term investment value is highly recognized by the industry.
Driven by "Entrepreneurship Gene + Culture Guidance" to Build Strong Comprehensive Strength
Sunshine Insurance has maintained a good growth momentum. The internal energy brought by the company's development focus of "sticking to the main business and pursuing value" comes from the company's unique, solid, systematic and complete Sunshine culture, and the source of Sunshine Insurance culture from its original entrepreneurial gene. As an entrepreneurship-driven company, Zhang Weigong, the founder of Sunshine Insurance, led his entrepreneurial team to visit 17 provinces and cities in China, visited and negotiated with 389 companies, and identified shareholders who shared the same vision and then founded Sunshine Insurance in a market-oriented way. The entrepreneurial spirit of "Challenge and Persevere" formed during the start-up period of Sunshine Insurance, laid the foundation for its continuous development and growth in the future. Meanwhile, Sunshine Insurance insists on "Cultural Governance". From the entrepreneurial spirit to the core culture of "Sunshine Way" formed before the company opened, to today's systematic and complete Sunshine cultural system, it has become the internal driving force for Sunshine's development. The company's core values have been established. Penetrating into all aspects of management, so that the company always has the core competitiveness in the fierce market competition.
It is worth mentioning that, with the support of the "Entrepreneurship Gene + Culture Guidance", Sunshine Insurance remained true to its social responsibility and commitment, served the real economy and practiced sustainable development through concrete actions. In 2022, Sunshine Insurance provided risk coverage of RMB44.5 trillion, RMB82.2 billion and over RMB170 billion for the real economy, the Belt and Road projects as well as 12,000 micro, small and medium-sized enterprises respectively. It helped small and medium-sized enterprises finance RMB14.5 billion. Additionally, the Group provided green insurance coverage of RMB60,000 billion for 16.35 million enterprises and individuals. By the end of 2022, sustainable investment balance amounted to RMB42.72 billion.
The year 2023 is the opening year for the full implementation of the spirit of the 20th National Congress of the Communist Party of China and the construction of Chinese modernization. In the future, Sunshine Insurance will adhere to its main business and focus on its main responsibilities, identify its own development direction while serving Chinese modernization, and realize the scale effect so as to obtain stable growth. At the same time, Sunshine Insurance will continue to follow the trend of digital transformation of the financial industry, seize the opportunities of empowering innovation in various fields, usher in broader development margin in the wave of insurance industry changes, and continue to advance towards the goal of building a high-value insurance group oriented to the needs of customers.
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 December 31, 2022, 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 11 consecutive years.
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