罗兰贝格-亚洲市场前50保险公司的业绩状况（英文）-2020.10-39页_1mb

Summary of Financial Performance of the Top 50 Insurers in Asian Markets

Core Content

The report provides an in-depth analysis of the financial performance, market trends, and M&A activities of the Top 50 insurers in Asian markets based on data from 2010 to 2019, with additional insights on the impact of the pandemic and the growing interest in InsurTech.

Main Financial Performance Highlights

• Insurance Penetration Rate: Asian markets, excluding China for non-life, have seen a plateau in insurance penetration rates over the last 5 years. The penetration rate is defined as the sum of life and non-life premiums as a percentage of GDP.
• Premium Income: In 2019, the Top 50 insurers in Asia generated USD 1,225 billion in Gross Written Premiums (GWP). The Top 3 insurers by GWP were Ping An, China Life, and PICC.
• Operating Income: The total operating income for the Top 50 insurers rose by 5.8% in 2019, slightly above the 2016-19 CAGR of 5.4%.
• Pretax Profit: Ping An, AIA, and China Life had the highest pretax profits in 2019.
• ROE (Return on Equity): In 2019, 16 insurers among the Top 50 achieved ROE above 10%. The overall ROE for the Top 50 increased to 10.2% in 2019, up from an average of 8.5% in 2010-2018.
• Dividend Payout Ratio: The average dividend payout ratio for the Top 50 insurers was 45%, showing diversity in payout strategies.
• Solvency Ratios: Sony Financial, PICC, Samsung Life, and Cathay Life had the highest solvency ratios among their peers in their respective markets.

Key Performance by Business Type

• Life Insurers: Life predominant insurers outperformed others in terms of Premium Income Growth and ROE over the last decade. However, ROE for Life specialists slightly declined from 8.8% (2012-16) to 7.9% (2016-19).
• Non-Life Insurers: Non-life predominant insurers showed notable growth in ROE. Non-life insurers generally trade at lower Price to Book (P/B) ratios compared to life insurers.
• P/B Ratio: Life insurers trade at a wider range of P/B ratios (0.4x–2.2x) compared to non-life insurers (0.5x–1x). Ping An has the highest P/B and ROE among public companies.

M&A Trends

• Deal Size and Location: Asian insurers and brokers have been actively targeted for M&A activities, with a focus on life and non-life businesses. Life insurers were acquired at approximately 17x earnings, while non-life insurers at 24x earnings.
• Target Locations: China and India were the "hottest" markets for M&A investment in terms of deal volume and PE multiples.
• Post-Covid Impact: The SNL Asia Pacific Insurance Index suggests that valuations have fallen back to early 2017 levels due to the impact of the pandemic.
• InsurTech Investment: Incumbent insurers are increasing their investments in the developing Asian InsurTech network. Notable investments include:
  • Ping An: Acquired OneMed (USD 70 mn), StartUp Health (USD 31 mn), 掌上糖医 (USD 100 mn), CarDekho (USD 70 mn), H2O.ai (USD 73 mn), and PlusDental (USD 35 mn).
  • CPIC: Acquired MORE Health (USD 74 mn) and Lianren Digital Health (USD 71 mn).
  • MS&AD Insurance Groupe: Invested in B3i and AkinovA.
  • AIA: Acquired We Doctor (USD 500 mn).

Key Takeaways

• Market Trends: Insurance penetration rates have plateaued in most Asian markets over the last 5 years, with notable exceptions.
• Pandemic Impact: The first half of 2020 saw a significant decline in premiums across Asian insurance markets, with Hong Kong (-43.9%), Japan (-31.9%), and Indonesia (-23.9%) experiencing the sharpest drops in life new business.
• Top Insurers: The Top 3 insurers by GWP in 2019 remained Ping An, China Life, and PICC. The Top 10 included 5 Japanese, 4 Chinese, and 1 Indian insurer.
• Performance Drivers: Life predominant insurers have consistently outperformed in terms of ROE and Premium Income Growth over the past decade.
• M&A Activities: M&A activities continue to target Asian insurers, with China and India being the most active in terms of deal volume and multiples. The PE multiple for life and non-life insurers stood at ~17x and ~24x respectively before the pandemic.
• InsurTech Focus: Asian insurers are increasingly investing in InsurTech to enhance their offerings and stay competitive.

Methodology and Definitions

• Insurance Penetration Rate: Calculated as the total of life and non-life premiums as a percentage of GDP.
• Premium Income Growth: Based on Net Premiums Earned or Total Premium Related Income from the S&P database.
• ROE: Calculated as net profit after tax divided by total equity.
• Expense Ratio: Derived from Total Operating Expense (including distribution and commission costs) divided by Gross Premium Written.
• Dividend Payout Ratio: Defined as the amount of dividends paid to shareholders in relation to the total amount of net income generated by a company.
• P/B Ratio: Calculated based on the company's book value and market price.

Conclusion

The Top 50 insurers in Asia show a diverse financial landscape, with varying performance metrics across business types and regions. Life insurers continue to outperform in terms of profitability and ROE, while non-life insurers face different valuation dynamics. The insurance sector in Asia is evolving with increased M&A activity and a growing focus on InsurTech innovation.