The 2021 annual performance presentation of the five A-share listed insurance companies, China Ping An, China life, China Pacific Insurance, PICC and Xinhua insurance, has ended. The reporter of China Securities Journal noted that at the performance briefing, the five major insurance companies predicted the equity market and generally believed that the current equity market has strategic allocation value. Insurance funds are one of the largest long-term institutional investors in the capital market. In 2021, the return on investment of the five major insurance companies will remain around 5%. Looking forward to the future allocation of equity assets, industry insiders believe that "double carbon + technology", "great health + consumption" track, undervalued sector and steady growth theme investment will continue to be favored by insurance funds. Exposure of investment transcripts of five major insurance enterprises In 2021, the five listed insurance companies realized a total net profit attributable to the parent company of 215.958 billion yuan. Among them, China Ping An, China life, China Pacific Insurance, PICC and Xinhua Insurance realized a net profit attributable to the parent company of 101.618 billion yuan, 50.921 billion yuan, 26.834 billion yuan, 21.638 billion yuan and 14.947 billion yuan respectively. Affected by the fluctuation of the capital market, the decline of market interest rates and other factors, the return on investment of the five major insurance companies will remain around 5% in 2021. Among them, the total investment return rate of Xinhua insurance is the highest, which is 5.90%; PICC's net return on investment was the highest, at 4.80%. Specifically, the total investment return rates of PICC, Ping An, CPIC, China Life and Xinhua Insurance in 2021 were 5.80%, 4.00%, 5.70%, 4.98% and 5.90% respectively; The net return on investment was 4.80%, 4.60%, 4.50%, 4.38% and 4.30% respectively. The A-share market fluctuated in 2021, and the downward trend of interest rate was obvious. The secret for the five insurance companies to deliver satisfactory investment transcripts lies in the dumbbell strategy (i.e. selecting two types of investment products with different styles for combination). Take PICC with the highest net investment return in 2021 as an example. In 2021, the company's bond investment will seize the opportunity of long-term debt allocation; Equity investment selects tracks, actively grasp structural investment opportunities, strengthen performance benchmarking and strategy benchmarking, actively explore new income growth poles, and more diversified sources of investment income. Medium and long-term allocation value in the market In the first quarter of this year, a shares continued to fluctuate and adjust, and the trend of insurance capital, as a wind vane of the capital market, attracted much attention. Facing the current market, some insurance companies believe that the equity market has strategic allocation value. Zhang Di, assistant president and chief investment officer of China Life Insurance, pointed out that after early adjustment, the valuation of equity assets has fallen below the long-term center, and the allocation value is slowly emerging. For long-term investment, the conditions for adding positions on the left have been met from the perspective of valuation. Fu fan, President of CPIC, said: "we believe that the current market adjustment brings more risk release and the manifestation of long-term investment value. As long-term investors, we see opportunities and how to grasp them in time. At present, the proportion of equity asset allocation of CPIC has a certain room for improvement." "The market is at the bottom stage in the short term, and the medium and long-term allocation value has appeared." Li Zhuyong, executive director, vice president and Secretary of the board of directors of PICC, said that in the medium and long term, the equity market has the value of strategic allocation. First, the macroeconomic environment of steady growth in 2022 has laid a good foundation for the equity market, and the medium and long-term trend of domestic economy has not changed. Secondly, the capital market system has been continuously improved and perfected, creating a good legal and institutional environment for investors to share the fruits of China's economic growth. Third, the current market valuation is relatively low. The dynamic valuations of Shanghai stock index, Shanghai Shenzhen 300 index and gem index are all below the 30% quantile of the past 10 years. Grasp structural investment opportunities Deng bin, chief investment officer of China Ping An, believes that this year the market will enter a state of value investment and value stocks, which is a good market cycle for long-term investors such as insurance capital. Deng Bin said that the scale of China's Ping An insurance funds is huge, and it is difficult to say that nearly 4 trillion yuan of funds "will win in a certain sector in a certain year". At present, Ping An of China is most concerned about how to choose sectors consistent with the direction of national policies, such as carbon neutralization, digital economy, pension health, medical treatment, etc. Li Zhuyong believes that in terms of specific equity varieties, PICC will actively grasp the phased opportunities brought by the return of valuation of traditional industries benefiting from the steady growth policy. It should also focus on the structural investment opportunities brought by emerging strategic industries such as consumption upgrading, scientific and technological innovation, healthy elderly care, green and low-carbon, and build an asset portfolio in line with the direction of economic development and through the cycle. "In the future, the allocation direction of equity assets will focus on the track of 'double carbon + technology', 'great health + consumption', pay attention to the investment opportunities of undervalued sectors and the theme of steady growth, pay attention to the investment opportunities in the Hong Kong market, and continue to explore various forms of equity investment." Duan Guosheng, general manager and CEO of Taikang assets, disclosed. (Xinhua News Agency)