Over 75 billion yuan, five major listed insurance companies are giving out red envelopes
2024-07-22
The amount of dividend income given to investors by listed companies has become a hot topic of the year. On July 21st, Beijing Business Daily reporters found that the five major A-share listed insurance companies plan to distribute dividends totaling over 75 billion yuan in 2023, an increase of over 20% compared to 2022. From the perspective of the amount to be distributed per share and the total dividend amount, Ping An China's expected total dividend distribution for 2023 is 27.161 billion yuan, with a planned distribution of 1.5 yuan per share (including tax), ranking first. In the eyes of industry insiders, the implementation of the 2023 dividend plan for the top five A-share listed insurance companies not only demonstrates their profitability and commitment to shareholder returns, but also sends a positive signal for the continuous improvement of future dividend levels. This will help optimize the capital structure of insurance companies, increase shareholder investment returns, and may further promote the healthy development of the insurance industry and the improvement of market valuation. The dividend ratio remains above 30%, and the 2023 dividend plan of the five major A-share listed insurance companies has been unveiled. On July 21st, Beijing Business Daily reporters found that the five major listed insurance companies will distribute dividends totaling over 75 billion yuan in 2023, an increase of over 20% compared to 2022. As of now, both China Life Insurance and China Taiping Insurance have issued cash dividends for the year 2023. As recently announced by China Life Insurance, the profit distribution this time is based on the company's total share capital of 28.265 billion shares before the implementation of the plan, with a cash dividend of 0.43 yuan (including tax) per share, totaling 12.154 billion yuan (including tax) in cash dividends distributed. The distribution date is July 11th. China Taiping Insurance recently announced that the profit distribution will be based on the company's total share capital of 9.62 billion shares before the implementation of the plan, with a cash dividend of 1.02 yuan (including tax) per share, totaling 9.813 billion yuan. The distribution date is July 12th. Based on the per share distribution amount and total dividend amount, Ping An China will distribute a cash dividend of 1.5 yuan per share (including tax) on July 26, 2024. According to previous announcements, the total expected dividend payout for Ping An in 2023 is 27.161 billion yuan. Including the mid-term cash dividend to be issued in October 2023, Ping An China distributed a total dividend of 2.43 yuan per share in cash for the year, exceeding 44 billion yuan. In addition, based on 44.224 billion issued shares, PICC plans to distribute cash dividends of RMB 1.56 per 10 shares (including tax) to all shareholders, totaling RMB 6.899 billion. Xinhua Insurance plans to distribute a cash dividend of 0.85 yuan per share to all shareholders for the year 2023, totaling 2.652 billion yuan, accounting for 30.4% of the net profit attributable to shareholders. The increase in annual dividend levels reflects not only the enhancement of the profitability of insurance companies, but also their emphasis on shareholder returns Zhi Peiyuan, a master's student enterprise mentor at the School of Management of China University of Mining and Technology (Beijing), said. For the five major listed insurance companies, there will be a significant increase in the total dividends distributed in 2023 compared to the previous year. Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, also stated that for insurance companies, increasing dividends can to some extent boost investor confidence, attract incremental funds into the insurance stock sector, and help improve their performance in the capital market. Meanwhile, a stable dividend policy is beneficial for insurance companies to manage market value and indirectly promote the replenishment of solvency adequacy ratio through the capital market. For investors, increasing dividends can provide more stable cash flow, enhance their sense of gain, and may attract those who prefer stable returns. From the proportion of total cash dividends to net profit in 2023, the five major listed insurance companies have all exceeded 30%, with an average dividend ratio of over 45%. Among them, China Life Insurance has the highest cash dividend ratio, reaching 57.6%, and China Ping An has also exceeded 50%, at 51.37%. Bai Wenxi stated that listed insurance companies will consider multiple factors when setting dividend ratios, including but not limited to the company's operating performance, financial situation, risk control indicators, market environment, and regulatory requirements. Insurance companies need to optimize their dividend policies to balance the relationship between returns to investors and achieving their own development. Mid term dividend follow-up: In April of this year, the State Council issued the new "National Nine Measures" which explicitly proposed to strengthen the supervision of cash dividends of listed companies. Intensify incentives for high-quality dividend companies and take multiple measures to promote the increase of dividend yields. It is reported that on the basis of annual dividends, several listed insurance companies have launched mid-term dividend plans for 2024. Specifically, since the release of the new "National Nine Measures" on April 12th, Xinhua Insurance has become the first listed insurance company to follow up on "multiple dividends per year". In May, Xinhua Insurance decided to implement the 2024 interim dividend distribution, with the total dividend amount accounting for no more than 30% of the half year net profit attributable to the parent company. In June, PICC revealed that it plans to implement mid-term dividends in 2024. Subsequently, a specific mid-term dividend plan will be formulated based on relevant provisions of the company's articles of association and the performance of the first half of 2024, taking into account factors such as profit level, shareholder returns, and solvency, and submitted to the board of directors and shareholders' meeting for review. According to the announcement released by China Life Insurance in June, under the condition that the company has distributable profits for the first half of 2024, cash dividends will be distributed to all shareholders. The total amount of mid-term cash dividends shall not exceed 30% of the net profit attributable to the parent company shareholders for the first half of 2024. Previously, Xinhua Insurance had already fired the first shot for insurance companies to respond to the new policy of the 'National Nine point Plan' and planned to implement the 2024 mid-term dividend distribution, which may indicate a new trend in the frequency and proportion of cash dividends for listed insurance companies Bai Wenxi stated that considering the policy orientation of the new "National Nine Measures" and the market environment, it is expected that the annual dividend frequency of listed insurance companies may show an increasing trend in the future, and dividend policies will also pay more attention to stability, sustainability, and predictability. For insurance stocks themselves, increasing the frequency of dividends can enhance shareholder returns and investment returns, boost market confidence, and further increase the company's market value. Zhi Peiyuan stated that several listed insurance companies have announced their mid-term dividend plans for 2024, demonstrating their sustained and stable willingness to distribute dividends. This positive dividend behavior not only helps to boost market confidence in the insurance sector, but also has the potential to further drive up stock prices, thereby increasing the market valuation of the entire insurance industry. The dividend policy of insurance companies has a direct impact on their stock prices. Positive dividend performance can enhance investors' confidence in the insurance sector, which may increase the sector's valuation and drive insurance stocks to continue rising Bai Wenxi stated that cash dividends, as a way of giving back to shareholders, can increase investors' confidence and have a positive impact on the company's long-term development in terms of stability and sustainability. The opening up of financial markets and the development of the insurance industry have enhanced the profitability of listed insurance companies. However, it may also face certain pressure in terms of dividend policies. In the view of Zhi Peiyuan, with the further opening up of China's financial market and the continuous development of the insurance industry, the profitability of listed insurance companies is expected to continue to improve. This will provide more financial support for insurance companies to support business expansion and innovative development. Meanwhile, as investors' attention to dividend returns continues to increase, listed insurance companies will face greater pressure in formulating dividend policies and need to pay more attention to balancing profit growth and shareholder returns. (New Society)
Edit：NingChangRun Responsible editor：LiaoXin
Source：Beijing Business Daily
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