Death difference, that is, the difference between the assumed mortality rate and the actual mortality rate.
The difference between the estimated operating expenses and the actual operating expenses,
Spread, the difference between actual income and financing cost.
Death price difference and cost price difference are not profitable.
The profit of financial institutions mainly depends on spreads.
China Life manages more than $3 trillion in assets,
It's so big,
Do you think a quarterly profit of tens of billions is enough?
Many insurance companies make a lot of money, not only in China, but in most cases, except one or two, they may lose money because of poor management.
Let me start with a little knowledge: the insurance company's compensation is based on the law of large numbers, that is, the mortality rate is three thousandths. Every day, 1 000 people are insured, and usually only about 3 people will receive death compensation. The next day 1 000 people are insured, and so on, the principal of the insurance company is not easy to lose.
Of course, I didn't just say losing money. There are more ways for insurance companies to make money, especially vice-ministerial central enterprises such as China Life Insurance, which are rooted in Hong Miao, such as large-scale national infrastructure investment with high capital preservation income and large-capital venture investment such as trust.
Let's take a look at the 10 large-scale projects invested by China Life and their yields:
1, west-to-east gas transmission project: gas transmission began at the end of 2002, with a total investment of about 5.3 billion yuan. The annual yield is 8.5%.
2. Three Gorges Project: This project is entered by purchasing bonds for Three Gorges construction, with a total investment of over 654.38+09 billion yuan, which will be invested in eight years. Since 200 1, the annual interest rate of bonds is 1 1.5%.
3. Yellow River Xiaolangdi Water Conservancy Project: The project is currently under construction, and some projects have already started operation, with an investment of about 1 1 billion yuan. Annual yield 1 1.36%.
4. Daya Bay Nuclear Power Station: completed and put into operation in 200 1 year. The company invested about 900 million yuan, and the annual return from 2000 to 2020 was 12.8%.
5. East China and South China Power Grid Reconstruction Project: The company invested 3.7 billion yuan, with an annual yield of 65,438+04.05%.
6. China Life subscribed for 20% equity of Guangfa Bank with a total investment of 5,670,582.34 billion yuan. It is estimated that the income will be 8% this year and 15% in the next five years.
7. China Life * * * invested 35 billion yuan and held 65.438+092 billion shares of China Southern Power Grid, accounting for 365.438+0.94% of the total share capital of China Southern Power Grid, making it the second largest shareholder of China Southern Power Grid. It is estimated that the yield will be 5% this year and 8% in the future.
8. China Life subscribed for 788.42 million H shares of Bank of China, with a total amount of HK$ 2.35 billion.
9. China Life Investment and Construction Bank has 400 million H shares, accounting for 0. 19% of the total share capital of CCB.
10. China Life invested in China Bank twice, totaling over 500 million shares, accounting for 0.2 1% of the total share capital of China Bank.
Looking at this rate of return without looking at how much money is invested is something that many ordinary people dare not imagine. This rate of return is different from our usury, because it is a stable income ~ unlike usury ~
Is this too much? The top 10 insurance companies in China, the combined net profit of the second place and the tenth place is less than that of the first place. Second place in life. You calculate how much money the first place has. The net profit of Alibaba and Tencent is almost less than that of the first place.