Last year's profit tripled, NCI's annual report reallocates high-dividend assets

On the evening of March 27, NCI disclosed its annual report!

The annual report reveals that in 2024, the company's original insurance premium income reached 170.5 billion yuan, total assets amounted to 1.69 trillion yuan, and the net profit attributable to shareholders of the parent company was 26.229 billion yuan, with all three indicators hitting historical highs.

Reviewing this annual report, ZhiShiTang found that NCI showed remarkable changes in the increase of dividend amounts, the growth of premium income from participating insurance, and the changes in the proportion of equity asset allocation.

Net Profit Hits Historical High

In 2024, NCI achieved a net profit attributable to shareholders of the parent company of 26.229 billion yuan, an increase of 201.1% compared to the previous year, reaching a historical high.

The aforementioned annual net profit growth figure significantly surpassed that of China Life and China Pacific Insurance, with the former's net profit growth last year at 109% and the latter recording a growth of 65%.

Dividend Amount Increase Nearly 200%

The annual report disclosed that in 2024, NCI conducted its first mid-term dividend distribution, distributing a cash dividend of 0.54 yuan per share (including tax) to all shareholders, totaling 1.685 billion yuan; it plans to distribute a year-end cash dividend of 1.99 yuan per share (including tax) to all shareholders, totaling 6.208 billion yuan.

In 2024, NCI plans to distribute a total cash dividend of 7.893 billion yuan, an increase of 197.6% compared to last year's dividend amount.

It is worth noting that the total amount of dividends distributed in 2024 accounted for 30.1% of the company's net profit attributable to the parent company.

Remarkable Growth in Participating Insurance Income

NCI disclosed the details of last year's premium growth, as follows:

The total original insurance premium income for the year was 170.511 billion yuan, a year-on-year increase of 2.8%; the new business value for the year (the present value of expected future profits from new policies sold during the reporting period) was 6.253 billion yuan, a year-on-year increase of 106.8%; the new business value rate under the first-year premium standard was 14.6%, an increase of 7.9 percentage points compared to 6.7% in 2023.

NCI pointed out that in 2024, under the changes in economic environment, consumer demand, channel development, and other factors, the company's first-year premium income from traditional insurance and health insurance long-term policies decreased year-on-year; at the same time, the company actively seized the opportunity for industry recovery and development, resulting in a significant year-on-year increase in first-year premium income from participating insurance long-term policies.

(As shown in the above image) The company's first-year premium income from participating insurance long-term policies saw a staggering year-on-year increase of 10,100% in 2024.

Comprehensive Investment Yield at 8.5%

NCI disclosed that as of December 31, 2024, the company's investment scale was 1.63 trillion yuan, with a total investment yield of 5.8%, a comprehensive investment yield of 8.5%, and a net investment yield of 3.2%.

Regarding investment strategy, NCI revealed the following details:

In terms of fixed income, by allocating long-duration interest rate bonds, effectively accommodating large-scale capital allocation, alleviating capital allocation pressure, and moderately extending the duration of the asset side, thereby narrowing the duration gap between assets and liabilities; Actively seeking allocation opportunities for high-quality projects.

In terms of equity investment, there is a strategic shift towards high-dividend OCI-type holding equity assets, while also seizing phase-specific and structural opportunities, and taking effective measures to control market downside risks. (Editor's note: OCI stands for Other Comprehensive Income, and OCI-type assets are financial assets measured at fair value with changes recorded in other comprehensive income.)

High-Dividend Asset Allocation Increased by Nearly 500%

By the end of 2024, NCI's investment in high-dividend OCI-type equity instruments increased from CNY 5.37 billion at the beginning of the year to CNY 30.64 billion, a growth of 470.6%.

This annual report also mentions the Honghu Fund, a private securities investment fund jointly established by NCI and China Life, with an initial total scale of CNY 50 billion, focusing on investing in high-quality listed companies in the secondary market. This not only helps the company strengthen asset-liability management and address the "long money short allocation" issue but also strongly supports the long-term stable development of the capital market.

Mention of DeepSeek

NCI mentioned in the annual report: "We are the first in the industry to realize the application of the DeepSeek model."

The annual report also revealed: fully implementing the concept of digital finance, deepening the integration and mutual promotion of large models, big data, artificial intelligence, cloud computing, and business management