People's Insurance Company of China Group Valuation and Performance

The People's Insurance Company of China Group (PICC Group) has consistently demonstrated strong financial performance, with a market value of over 500 billion yuan as of 2020.

Its revenue has grown steadily over the years, reaching 1.3 trillion yuan in 2020, a significant increase from 2015 when it was 644 billion yuan.

The group's net profit has also seen a remarkable surge, reaching 68 billion yuan in 2020, up from 24 billion yuan in 2015.

This impressive growth can be attributed to the group's diversified business operations, including insurance, asset management, and banking services.

People's Insurance Company of China has a strong financial foundation, with a market value of over $50 billion. The company's assets total over $100 billion, making it one of the largest insurance companies in the world.

The company's financial stability is reflected in its low debt-to-equity ratio, which is around 20%. This is a testament to the company's prudent financial management and ability to maintain a healthy balance sheet.

With a long history of operation, People's Insurance Company of China has established a solid track record of financial performance, with a net profit margin of over 10% in recent years.

Valuation is a crucial aspect of understanding a company's financial health. The People's Insurance Company (Group) of China Limited has seen its capitalization fluctuate significantly over the years, ranging from 37.28B to 5,827B.

Its market capitalization has been steadily increasing, with a notable jump from 30.58B to 53.71B. This could be a sign of investor confidence in the company.

Here are the capitalization values for The People's Insurance Company (Group) of China Limited over the years:

The P/E ratio for 2024 was 3.91x, indicating that investors are willing to pay a certain multiple of earnings for the company's stock. This ratio is expected to increase to 4.51x in 2025.

Nomura has been actively adjusting the price target for The People's Insurance Company (Group) of China Limited. In May, Nomura adjusted the price target to HK$3.75 from HK$3.41, while maintaining a "Buy" recommendation.

Nomura made another adjustment in May, this time setting the price target at HK$3.41 from HK$3.52, still keeping the "Buy" rating.

A month prior, Nomura adjusted the price target to HK$3.52 from HK$3.32, also keeping the "Buy" recommendation.

In October 2023, Nomura adjusted the price target to HK$3.32 from HK$3.28, maintaining the "Buy" rating.

The People's Insurance Company of China has had a busy few months. In November, they named a new chair, Ding Xiangqun, who was also appointed as an executive director.

They've also seen a significant increase in insurance premiums, with nearly 569 billion yuan in January-September premium income, and nearly 647 billion yuan in 11-month premium income.

Their quarterly profit ballooned 2,094% in Q3, and they expect up to 85% higher profit in the nine-month period.

Here's a breakdown of their premium income over the past few months:

In other news, their chairman resigned in September, and they've also proposed a change in auditor.

The People's Insurance Company of China (PICC) has a diverse shareholder base, with the Ministry of Finance of the People's Republic of China (MOF) holding a controlling 67.60% of the total shares as of 2018.

The MOF also owns significant stakes in other financial service companies, including the Industrial and Commercial Bank of China, the Agricultural Bank of China, and China Cinda Asset Management.

The National Social Security Fund (NSSF) owns 8.60% + 1.19% of the total shares of PICC, and the MOF transferred an additional 6.76% of shares to the NSSF in 2019.

The US-based multinational insurer American International Group (AIG) previously owned 2.52% of PICC's total shares, but sold all its stake in February 2019.

The H shares of PICC are part of the Hang Seng China Enterprises Index, while the A shares are constituents of various indexes, including the Hang Seng China 50 Index and the CSI 300 Index.

As part of PICC Group's long history, the company was founded on October 1, 1949, with the approval of Mao Zedong and other central leaders.

The People's Insurance Company of China, the precursor to PICC Group, was a pioneer in the insurance industry of new China, and after more than 70 years, the company has grown into a financial insurance conglomerate with over ten specialty subsidiaries.

PICC Group has a diverse range of business scope, including property insurance, casualty insurance, reinsurance, capital management, real estate, and alternative investment, finance, and technology.

The company completed its public listing in the Stock Exchange of Hong Kong on December 7th, 2012, and in Shanghai Stock Exchange on November 16th, 2018, becoming the fifth Chinese insurance company listed in both cities.

Here is a list of some of the key subsidiaries and investments made by PICC Group:

PICC Group has a strong track record of innovation and risk management, as seen in its participation in landmark projects such as the Hong Kong-Zhuhai-Macao Bridge, Nam Ou River Hydropower Plants in Laos, and Kamchay Hydropower Plants in Cambodia.

The company has also been awarded A- in terms of its financial strength and credit consecutively since 2014 by A.M. Best Co., a world-famous rating company.

PICC Asset Management plays a crucial role in managing the company's non-Renminbi assets.

This subsidiary is responsible for managing PICC's non-Renminbi assets, which is a key part of the company's overall investment strategy.

PICC Asset Management channels cross-border investments, allowing the company to expand its reach and grow its assets.

Handling overseas investment is another key responsibility of PICC Asset Management, ensuring that the company's investments are well-managed and profitable.

This expertise helps the company make informed investment decisions and maximize returns on its investments.

PICC issued two classes of ordinary shares: A share and H share, with the latter only traded outside Mainland China.

The Ministry of Finance of the People's Republic of China (MOF) is the controlling shareholder of the company, owning 67.60% of the total shares as of 31 December 2018.

As of 2018, the state pension fund: the National Social Security Fund (NSSF) owned 8.60% + 1.19% total shares of the company, having both A and H shares.

The MOF also owned fellow financial service companies such as the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of Communications, China Cinda Asset Management and China Re, etc.

The National Social Security Fund (NSSF) received an additional 6.76% total shares of PICC from the MOF in 2019.

The H shares of the company are the constituent of Hang Seng China Enterprises Index as of January 2020.

The A shares of the company are the constituents of Hang Seng China 50 Index, CSI 300 Index (and the subset the blue chip index CSI 100), SSE 180 Index (and the subset blue chip index SSE 50 since June 2019), etc., as of January 2020.

As of 2018, American International Group (AIG) owned 2.52% of the total shares (12.76% of the H shares) of PICC, but sold all their stake in February 2019.

The People's Insurance Company of China (PICC) is a major player in the property and casualty insurance market.

PICC's subsidiary, PICC Property and Casualty (PICC P&C), is China's largest issuer of property and casualty insurance, with a market share of 33.0% as of 2018.

PICC P&C is licensed to provide all major lines of insurance except life insurance, and it serves as the designated agent within Mainland China for most international insurance companies.

PICC Group's Q3 profit ballooned 2,094% in 2024, according to a report from the company.

PICC Group logs nearly 647 billion yuan in 11-month premium income as of December 2024.

Here is a summary of PICC's premium income for the first nine months of 2024:

PICC Group anticipates up to 95% higher attributable net profit for 2024.

PICC Property and Casualty is China's largest issuer of Property and Casualty insurance. Its market share in the sector is 33.0% as of 2018.

PICC Property and Casualty is licensed to provide all major lines of insurance except life insurance. It is the designated agent within Mainland China for most international insurance companies.

PICC Property and Casualty's market share in property and casualty insurance was 34.0% in the first half of 2017, ranking it first in the sector. The second largest player was Pingan Insurance with a 19.6% market share.

PICC Re is a reinsurance service provided by PICC Group to its listed subsidiary PICC P&C.

PICC Reinsurance, also known as PICC Re, is a joint venture between PICC Group and its subsidiary PICC P&C, with a 51:49 ownership ratio.

The partnership between PICC Group and PICC P&C allows for a unique reinsurance service to be offered to the listed subsidiary.