Sources:
1 PovcalNet, citing World Bank Data. There is no standard statistical definition of “middle class”, to facilitate cross-country comparisons, the World Bank uses
a dollar-per-day amount expressed in purchasing-power-parity (PPP) dollars. Pew Research Center, in a study, defines middle class people are those who live on USD10
or more a day. Data as at 31 December 2015 (latest data available).
2World Bank Data, from 1986 to 2016 (latest data available), data extracted as at 25 January
2019.
3 Swiss Re, sigma, No. 3/2018. https://www.swissre.com/institute/research/sigma-research/sigma-2018-03.html
4A World At Risk: Closing The Insurance Gap,
citing EM-DAT, CEBR (Centre for Economics and Business Research) analysis. The insurance purchased to cover risks and actual cost.
5Swiss Re Institute, from 2008 to
2017.
6 The China Banking and Insurance Regulatory Commission (CBIRC), as at 31 December 2018. Personal insurance include life, medical and accidents. http://bxjg.
circ.gov.cn/web/site0/tab5201/info4132169.htm
7 Platform insurers tend to use the insurance business merely as a financing platform and generate profits primarily
through investments rather than mortality gains. In other words, they are like an investment holding company that funds its purchases by selling insurance products.
8 In April 2017, China Insurance Regulatory Commission (CIRC) was merged with China Banking Regulatory Commission. https://www.reuters.com/article/us-chinaparliament/
china-to-merge-regulators-create-new-ministries-in-biggest-overhaul-in-years-idUSKCN1GP003
9 Eastspring Investments, generic numbers based on listed
companies’ annual reports, for illustrative purpose only.
10 New business margin applies to policies with premium payment terms longer than one year.
11 Moody’s, as at May 2018. Solvency ratio is a key indicator of an insurance company’s ability to replay long-term liabilities and debts.
12 Credit Suisse, 22 March 2019;
citing data from China Banking Insurance Regulatory Commission (CBIRC), December 2013 to December 2018. Traditional insurers include China Life, Ping An, China
Pacific Insurance (CPIC), Taiping Life, New China Life, People’s Insurance Company of China (PICC). Platform insurers include Anbang Life, Huaxia Life, Hexie Health,
Foresea Life, Tian An Life, Sunshine Life and Evergrande Life. The rest of market shares from other much smaller players.
13 H-shares of six key Chinese insurers have
their shares listed and traded in Hong Kong. Also known as “H-shares” and denominated in Hong Kong dollars. H-shares are reminiscent of American Depository
Receipts (ADR).
14 Bloomberg. Total returns in US dollars with dividend reinvested, net of tax. From 31 December 2017 to 31 December 2018.
15 The embedded value
(EV) represents the sum of present value of all future profits (premium income) from the existing business. In other words, EV represents the value generated from the
business sold by the insurer, if it were to stop writing any more new business.
16 Eastspring Investments, 25 March 2019, citing Credit Suisse’s report, with data from
Reuters, IBES (12 Month Forward), Credit Suisse Estimates, from 31 December 2013 to 25 March 2019. Shares prices and embedded value of China Life, Ping An,
China Pacific Insurance (CPIC), Taiping Life, New China Life, People’s Insurance Company of China (PICC).
17 Company data, Credit Suisse Estimates, as at 18 February
2019. Average of RoEV of Hong Kong-listed China Life, Ping An, China Pacific, New China Life, China Taiping, and PICC Group (H-shares).
18 Value of new business
(VNB) indicates the value of an insurance company on the basis of the new business it wrote in the previous year. VNB is also termed as embedded value of new
business measured at the point of sale.
19 China urges banks to boost small business financing. https://www.ft.com/content/73325fc0-0fe0-11e9-a3aa-118c761d2745
20 MSCI, IBES, Datastream, Bloomberg, JP Morgan estimates, as at 7 February 2019. Consensus EPS growth for 2019.