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People's Insurance Company (Group) of China

DB:PIR
Snowflake Description

Very undervalued second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PIR
DB
HK$130B
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

The People’s Insurance Company (Group) of China Limited, an investment holding company, primarily engages in the insurance business in the People’s Republic of China. The last earnings update was 24 days ago. More info.


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  • People's Insurance Company (Group) of China has significant price volatility in the past 3 months.
PIR Share Price and Events
7 Day Returns
-2.1%
DB:PIR
3%
DE Insurance
-0.2%
DE Market
1 Year Returns
-
DB:PIR
9%
DE Insurance
-10.3%
DE Market
PIR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
People's Insurance Company (Group) of China (PIR) -2.1% -12.8% -8.9% - - -
DE Insurance 3% -2.9% 7.5% 9% 42.4% 59.7%
DE Market -0.2% -2.4% 4.2% -10.3% 11.2% 10.8%
1 Year Return vs Industry and Market
  • No trading data on PIR.
  • No trading data on PIR.
Price Volatility
PIR
Industry
5yr Volatility vs Market

Value

 Is People's Insurance Company (Group) of China undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of People's Insurance Company (Group) of China to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for People's Insurance Company (Group) of China.

DB:PIR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= CN¥4.31 * 10.9%
CN¥0.47
Book Value of Equity per Share Weighted future Book Value estimates from 12 analysts. CN¥4.31
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:PIR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.725 (1 + (1- 25%) (98.63%))
1.175
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.175 * 5.96%)
7.23%

Discounted Cash Flow Calculation for DB:PIR using Excess Returns Model Model

The calculations below outline how an intrinsic value for People's Insurance Company (Group) of China is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:PIR Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.9% – 7.23%) * CN¥4.31)
CN¥0.16
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥0.16 / (7.23% - 0.23%)
CN¥2.29
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥4.31 + CN¥2.29
CN¥6.6
DB:PIR Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1339)
1.135
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥6.6 x 1.135
HK$7.48
Non-primary Listing Adjustment Factor 1 share in DB:PIR represents 0.10887x of SEHK:1339
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.10887x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 7.48 x 0.10887
€0.81
Value per share (EUR) From above. €0.81
Current discount Discount to share price of €0.32
= -1 x (€0.32 - €0.81) / €0.81
60.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price People's Insurance Company (Group) of China is available for.
Intrinsic value
>50%
Share price is €0.319 vs Future cash flow value of €0.8148
Current Discount Checks
For People's Insurance Company (Group) of China to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • People's Insurance Company (Group) of China's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • People's Insurance Company (Group) of China's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for People's Insurance Company (Group) of China's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are People's Insurance Company (Group) of China's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:PIR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.30
SEHK:1339 Share Price ** SEHK (2019-05-17) in HKD HK$2.93
SEHK:1339 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥2.58
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.15x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 20.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of People's Insurance Company (Group) of China.

DB:PIR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1339 Share Price ÷ EPS (both in CNY)

= 2.58 ÷ 0.30

8.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • People's Insurance Company (Group) of China is good value based on earnings compared to the DE Insurance industry average.
  • People's Insurance Company (Group) of China is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does People's Insurance Company (Group) of China's expected growth come at a high price?
Raw Data
DB:PIR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
12.7%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.17x
Germany Market PEG Ratio Median Figure of 273 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

DB:PIR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.51x ÷ 12.7%

0.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • People's Insurance Company (Group) of China is good value based on expected growth next year.
Price based on value of assets
What value do investors place on People's Insurance Company (Group) of China's assets?
Raw Data
DB:PIR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥3.46
SEHK:1339 Share Price * SEHK (2019-05-17) in HKD HK$2.93
SEHK:1339 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥2.58
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.04x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.77x
DB:PIR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1339 Share Price ÷ Book Value per Share (both in CNY)

= 2.58 ÷ 3.46

0.75x

* Primary Listing of People's Insurance Company (Group) of China.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • People's Insurance Company (Group) of China is good value based on assets compared to the DE Insurance industry average.
X
Value checks
We assess People's Insurance Company (Group) of China's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. People's Insurance Company (Group) of China has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is People's Insurance Company (Group) of China expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is People's Insurance Company (Group) of China expected to grow at an attractive rate?
  • People's Insurance Company (Group) of China's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • People's Insurance Company (Group) of China's earnings growth is positive but not above the Germany market average.
  • People's Insurance Company (Group) of China's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:PIR Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:PIR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 12.7%
DB:PIR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 5.3%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.5%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:PIR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:PIR Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 607,856 4,627 20,429 8
2020-12-31 638,173 4,437 18,745 4
2019-12-31 566,742 -5,087 17,043 4
DB:PIR Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 497,308 -16,803 12,912
2018-09-30 494,137 -19,356 15,121
2018-06-30 490,966 -23,308 17,329
2018-03-31 486,916 -12,667 16,714
2017-12-31 482,865 -625 16,099
2017-09-30 468,253 -904 15,717
2017-06-30 453,641 -1,182 15,335
2017-03-31 448,207 11,325 14,790
2016-12-31 442,773 23,831 14,245
2016-09-30 436,231 27,088 14,346
2016-06-30 429,689 30,345 14,446
2016-03-31 417,976 25,393 16,994

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • People's Insurance Company (Group) of China's earnings are expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).
  • People's Insurance Company (Group) of China's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:PIR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from People's Insurance Company (Group) of China Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:PIR Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.47 0.52 0.37 12.00
2020-12-31 0.42 0.49 0.34 16.00
2019-12-31 0.37 0.42 0.32 14.00
DB:PIR Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.30
2018-09-30 0.36
2018-06-30 0.41
2018-03-31 0.39
2017-12-31 0.38
2017-09-30 0.37
2017-06-30 0.36
2017-03-31 0.35
2016-12-31 0.34
2016-09-30 0.34
2016-06-30 0.34
2016-03-31 0.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • People's Insurance Company (Group) of China is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess People's Insurance Company (Group) of China's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
People's Insurance Company (Group) of China has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has People's Insurance Company (Group) of China performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare People's Insurance Company (Group) of China's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • People's Insurance Company (Group) of China's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • People's Insurance Company (Group) of China's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • People's Insurance Company (Group) of China's 1-year earnings growth is negative, it can't be compared to the DE Insurance industry average.
Earnings and Revenue History
People's Insurance Company (Group) of China's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from People's Insurance Company (Group) of China Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:PIR Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 497,308.00 12,912.00 74,692.00
2018-09-30 494,137.00 15,120.50 71,430.00
2018-06-30 490,966.00 17,329.00 68,168.00
2018-03-31 486,915.50 16,714.00 68,806.50
2017-12-31 482,865.00 16,099.00 69,445.00
2017-09-30 468,253.00 15,717.00 68,194.00
2017-06-30 453,641.00 15,335.00 66,943.00
2017-03-31 448,207.00 14,790.00 64,741.50
2016-12-31 442,773.00 14,245.00 62,540.00
2016-09-30 436,231.00 14,345.50 60,893.50
2016-06-30 429,689.00 14,446.00 59,247.00
2016-03-31 417,975.50 16,994.00 58,475.00
2015-12-31 406,262.00 19,542.00 57,703.00
2015-09-30 397,728.00 19,429.00 56,551.00
2015-06-30 389,194.00 19,316.00 55,399.00
2015-03-31 370,230.50 16,212.50 53,189.00
2014-12-31 351,267.00 13,109.00 50,979.00
2014-09-30 348,091.00 10,151.00 45,825.00
2014-06-30 344,915.00 7,193.00 40,671.00
2014-03-31 324,587.50 7,657.00 42,693.50
2013-12-31 304,260.00 8,121.00 44,716.00
2013-09-30 286,768.00 8,786.00 49,003.00
2013-06-30 269,276.00 9,451.00 53,290.00
2013-03-31 262,612.00 8,141.50 51,171.50
2012-12-31 255,948.00 6,832.00 49,053.00
2012-09-30 250,075.50 6,450.50 47,395.50
2012-06-30 244,203.00 6,069.00 45,738.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • People's Insurance Company (Group) of China has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • People's Insurance Company (Group) of China used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.
  • People's Insurance Company (Group) of China's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess People's Insurance Company (Group) of China's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
People's Insurance Company (Group) of China has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is People's Insurance Company (Group) of China's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up People's Insurance Company (Group) of China's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • People's Insurance Company (Group) of China's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • People's Insurance Company (Group) of China's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of People's Insurance Company (Group) of China's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from People's Insurance Company (Group) of China Company Filings, last reported 4 months ago.

DB:PIR Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 206,301.00 112,621.00 82,152.00
2018-09-30 206,301.00 112,621.00 82,152.00
2018-06-30 197,425.00 117,271.00 66,598.00
2018-03-31 197,425.00 117,271.00 66,598.00
2017-12-31 186,881.00 91,027.00 96,576.00
2017-09-30 186,881.00 91,027.00 96,576.00
2017-06-30 180,175.00 80,570.00 78,002.00
2017-03-31 180,175.00 80,570.00 78,002.00
2016-12-31 170,994.00 79,150.00 81,903.00
2016-09-30 170,994.00 79,150.00 81,903.00
2016-06-30 163,429.00 58,822.00 65,228.00
2016-03-31 163,429.00 58,822.00 65,228.00
2015-12-31 157,195.00 68,421.00 79,394.00
2015-09-30 157,195.00 68,421.00 79,394.00
2015-06-30 147,826.00 97,177.00 63,752.00
2015-03-31 147,826.00 97,177.00 63,752.00
2014-12-31 125,577.00 84,091.00 56,882.00
2014-09-30 125,577.00 84,091.00 56,882.00
2014-06-30 106,072.00 91,910.00 65,337.00
2014-03-31 106,072.00 91,910.00 65,337.00
2013-12-31 94,801.00 91,796.00 65,370.00
2013-09-30 94,801.00 91,796.00 65,370.00
2013-06-30 93,330.00 92,579.00 73,223.00
2013-03-31 93,330.00 92,579.00 73,223.00
2012-12-31 83,342.00 106,510.00 83,865.00
2012-09-30 83,342.00 106,510.00 83,865.00
2012-06-30 56,810.00 101,932.00 79,297.00
  • People's Insurance Company (Group) of China's level of debt (54.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (96.7% vs 54.6% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess People's Insurance Company (Group) of China's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. People's Insurance Company (Group) of China has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is People's Insurance Company (Group) of China's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.77%
Current annual income from People's Insurance Company (Group) of China dividends. Estimated to be 2.81% next year.
If you bought €2,000 of People's Insurance Company (Group) of China shares you are expected to receive €35 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • People's Insurance Company (Group) of China's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.45%).
  • People's Insurance Company (Group) of China's dividend is below the markets top 25% of dividend payers in Germany (3.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:PIR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:PIR Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.08 12.00
2020-12-31 0.07 17.00
2019-12-31 0.06 12.00
DB:PIR Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.046 1.698
2019-03-22 0.046 1.593
2018-04-19 0.039 1.332
2017-05-08 0.034 1.067
2016-04-25 0.023 0.832
2016-03-29 0.023 0.830
2015-04-28 0.009 0.296
2015-03-27 0.009 0.250
2014-05-09 0.008 0.304
2013-09-18 0.000 0.000
2013-08-26 0.000 0.000
2013-07-15 0.000 0.000
2013-06-21 0.214 7.845
2013-04-29 0.214 6.943
2013-03-26 0.214 6.796

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, People's Insurance Company (Group) of China has been paying a dividend for less than 10 years.
  • People's Insurance Company (Group) of China has only been paying a dividend for 6 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of People's Insurance Company (Group) of China's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.5x coverage).
X
Income/ dividend checks
We assess People's Insurance Company (Group) of China's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can People's Insurance Company (Group) of China afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. People's Insurance Company (Group) of China has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of People's Insurance Company (Group) of China's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tao Bai
COMPENSATION CN¥748,286
AGE 55
TENURE AS CEO 0.8 years
CEO Bio

Dr. Tao Bai, Ph. D., has been President of People's Insurance Company (Group) of China Ltd. since July 19, 2018 and its Vice Chairman and Executive Director since OCtober 23, 2018 and September 11, 2018 respectively. Dr. was a Vice Chairman, Executive Director of People's Insurance Company (Group) of China Ltd. From August 1984 to May 2014, he worked at Industrial and Commercial Bank of China Limited and successively served as an assistant to the president of Hainan Branch, deputy general manager of the project credit department of the Head Office, vice president of Jilin Branch, vice president (presiding) and president of Hunan Branch, general manager of asset risk management department, general manager of risk management department and president of internal audit bureau of the Head Office. From May 2014 to August 2016, he served as a vice president of China Life Insurance (Group) Company. From September 2016 to July 2018, he served as a deputy general manager of China Investment Corporation. He served as General Manager and Executive Director at Central Huijin Investment Ltd since October 2016 and its President. Dr. Bai is a Senior Economist. He holds a Ph.D. in Economics from Renmin University.

CEO Compensation
  • Insufficient data for Tao to compare compensation growth.
  • Tao's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the People's Insurance Company (Group) of China management team in years:

9.3
Average Tenure
53.5
Average Age
  • The average tenure for the People's Insurance Company (Group) of China management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jianmin Miao

TITLE
Chairman of the Board
COMPENSATION
CN¥845K
AGE
53

Tao Bai

TITLE
Vice Chairman & President
COMPENSATION
CN¥748K
AGE
55
TENURE
0.8 yrs

Houjie Zhou

TITLE
CFO & Financial Controller
COMPENSATION
CN¥2M
AGE
53
TENURE
9.3 yrs

Jun Zhao

TITLE
Chief Information Technology Officer & GM of the Information Technology Department
COMPENSATION
CN¥2M
AGE
57
TENURE
11.7 yrs

Zhuyong Li

TITLE
VP, Compliance Officer & Chief Risk Officer
COMPENSATION
CN¥2M
AGE
45
TENURE
0.4 yrs

Zhigang Tang

TITLE
VP, Executive Director & Secretary of the Board
COMPENSATION
CN¥768K
AGE
54

Yiqun Xie

TITLE
VP & Executive Director
COMPENSATION
CN¥774K
AGE
57

Chaoying Zhuang

TITLE
Deputy Editor & Senior Enterprise Risk Manager
COMPENSATION
CN¥449K
AGE
59

Kesheng Han

TITLE
Assistant to the President
COMPENSATION
CN¥2M
AGE
52
TENURE
9.2 yrs

Tao Li

TITLE
GM - Secretariat of Board of Directors & Board of Supervisors and Secretary to Board of Directors
COMPENSATION
CN¥2M
AGE
52
TENURE
9.7 yrs
Board of Directors Tenure

Average tenure and age of the People's Insurance Company (Group) of China board of directors in years:

2.2
Average Tenure
54
Average Age
  • The average tenure for the People's Insurance Company (Group) of China board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jianmin Miao

TITLE
Chairman of the Board
COMPENSATION
CN¥845K
AGE
53
TENURE
1.3 yrs

Tao Bai

TITLE
Vice Chairman & President
COMPENSATION
CN¥748K
AGE
55
TENURE
0.6 yrs

Zhigang Tang

TITLE
VP, Executive Director & Secretary of the Board
COMPENSATION
CN¥768K
AGE
54
TENURE
1.5 yrs

Yiqun Xie

TITLE
VP & Executive Director
COMPENSATION
CN¥774K
AGE
57
TENURE
1.6 yrs

Dajun Wang

TITLE
GM of Risk Management Department & Employee Representative Supervisor
AGE
50
TENURE
3.2 yrs

Fan Lin

TITLE
Chairman of the Board of Supervisors
COMPENSATION
CN¥945K
AGE
58
TENURE
7.2 yrs

Yixiang Lin

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥300K
AGE
54
TENURE
3.7 yrs

Wuzhao Chen

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥283K
AGE
48
TENURE
2.2 yrs

Xin Jing

TITLE
Independent Supervisor
AGE
60
TENURE
2.2 yrs

Yongxian Xu

TITLE
Shareholder Representative Supervisor
COMPENSATION
CN¥790K
AGE
54
TENURE
9.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
06. Feb 19 Buy BlackRock, Inc. Company 01. Feb 19 01. Feb 19 2,804,000 €0.36 €1,014,684
07. Feb 19 Sell BlackRock, Inc. Company 04. Feb 19 04. Feb 19 -669,000 €0.36 €-242,432
27. Nov 18 Sell BlackRock, Inc. Company 22. Nov 18 22. Nov 18 -495,422 €0.38 €-189,199
X
Management checks
We assess People's Insurance Company (Group) of China's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. People's Insurance Company (Group) of China has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

The People’s Insurance Company (Group) of China Limited, an investment holding company, primarily engages in the insurance business in the People’s Republic of China. It operates through Non-Life Insurance, Life Insurance, Health Insurance, Asset Management, and Others segments. The company offers property and casualty insurance products, including motor vehicle, commercial property, liability, accidental injury and health, cargo, agricultural, and other insurance products. It also provides life insurance products comprising general life and health insurance, participating life insurance, universal life insurance, and accident insurance; and health insurance products, such as illness, medical, disability losses, nursing care, accidental injury, and participating endowment insurance products. In addition, the company engages in asset management, agent, reinsurance brokerage, claim handling agency, Internet finance, and property investment activities. The company was founded in 1949 and is based in Beijing, the People’s Republic of China.

Details
Name: The People's Insurance Company (Group) of China Limited
PIR
Exchange: DB
Founded: 1949
HK$14,790,306,710
44,223,990,583
Website: http://www.picc.com
Address: The People's Insurance Company (Group) of China Limited
PICC Building,
1st-13th Floors,
Beijing,
100031,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1339 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 07. Dec 2012
DB PIR Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 07. Dec 2012
SHSC 1339 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 07. Dec 2012
SZSC 1339 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 07. Dec 2012
SHSE 601319 A CNY1 Shanghai Stock Exchange CN CNY 16. Nov 2018
OTCPK PINX.Y UNSPONSORD ADR Pink Sheets LLC US USD 01. Mar 2013
XSSC 601319 A CNY1 Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 16. Nov 2018
Number of employees
Current staff
Staff numbers
198,457
People's Insurance Company (Group) of China employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/19 22:19
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/04/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.