Three main points of contention for senior shareholder of China longevity

Shareholders at the general meeting of shareholders that Chou's investment practices are a bit too conservative, not run to win the inflation level Guo Shou financial leaders believe that asset security is the main, equity investment should be within the controllable range yesterday, China Life held a general meeting of shareholders, and executives and shareholders on the investment of national life is "biased to conservative" or "value lies"　　The debate is the highlight of this meeting of shareholders.　　Shareholders questioned the country life investment too conservative at yesterday's shareholder meeting, the "conservative" investment concept of Guo Shou raised the question of individual shareholders.　　Some shareholders believe that Chou's investment practices are a bit too conservative, the overall return on investment is low, fixed income investment is too high, the overall income has not run to win inflation level. However, this view by the financial director of Liu Jiade's rebuttal. He believes that commercial insurance companies to raise funds to match the assets, asset security is the main, equity investment should be within the controllable range. As for the rate of return on investment is "too low", this question involves how to compare, and who to compare.　　Chou 2008 performance and shareholder expectations there is a gap, but in the eyes of management, the company in the prevailing market environment, the performance is satisfactory.　　According to the introduction, at the end of 2008, China Life fixed income investment accounted for about 85%, the end of the first quarter is also more than 80%; equity investment assets of 8%, the first quarter of this year accounted for a certain increase, at the end of April, equity investment is still in flux.　　Another reason for the shareholder to be too "conservative" is that Mr. Buffett bought shares sharply at the end of 2008, while Chou was selling shares to reduce its position. Liu Jia said that the commercial insurance companies are under comprehensive supervision, to invest in the H-Shares of CCB, for example, there are many policy restrictions on investment in single banks.　　In fact, how to grasp the opportunity to achieve the best investment income is Chou always strive to do. In the major investment decision-making mechanism, the above shareholders proposed whether to take relevant measures.　　He cited, for example, that Goldman Sachs had a veto over investment decisions, and that it was a "minority-majority" system in which the person in charge of the investment had voted only against a failed investment, but he was responsible for the failure.　　In this respect, the Chairman Chao outspoken, in the investment, can not because of the financial crisis and change the inherent investment style, Chou has formed a development strategy can not change because of the external environment changes, "active contact, serious negotiations, due diligence, prudent decision-making" for 16 words investment policy. He also said that Chou's investments are accountable to shareholders and that products are accountable to customers.　　Some investment opportunities management has found out, but in the decision-making mechanism finally was rejected, therefore also avoids some risks. However, unlike the "radical" of Ping An, one participant smiled and said that the value of Chinese longevity was "conservative".　　In his view, "conservative" has the meaning of steady ship.　　Recently, Guo Shou made a big fortune from Bank of America to take over 2.768 billion H-shares of CCB, also received attention. Liu Jia de said, through the bank to reduce the U.S.Shou has reached two types of purposes: first, the company has strongly supported the state-owned listed banks to stabilize the share price; In addition, seized the opportunity to reduce the cost of a larger share of the construction of the CCB H shares.　　The board was issued with an additional mandate but no distribution plan yesterday, the national life of the general meeting passed the authorized board of directors on the need to plan to issue a-share or H shares (not more than 20% of the existing total capital) of the bill.　　"We don't have any new IPO plans at the moment," Chao, chairman of the board, said on the "more sensitive issue".　　It is understood that this is the conventional practice of H-share companies, is the general mandate of the Board of Directors, Chou solvency level, sufficient capital, in principle, in a year will not implement new issue.　　Similar cases have been seen in other overseas listed companies. There is a reason for the decline of premium income in January-April this year, China life to achieve the total premium income of 126 billion yuan, compared with the same period of 128 billion yuan slightly reduced by 1.56%. Among them, the first quarter of this year's premium income of 104 billion yuan. Since March, the single month of national life insurance premiums have declined.　　The March single month premium was lowered from $42.5 billion last year to $13.41% to $36.8 billion, while the April monthly premium was as low as $22 billion. The slow growth in premium income is in fact expected in China.　　Chou President Wan Feng said the company adopted a "strategy of persuasion," although the total number of premiums in the previous April has fallen slightly, but the standard premiums, market share has increased, and the first-quarter rate of return is lower than the previous year, and the new single renewal rate on average 95%. For last year's high premium, a slowdown in the first quarter and a sharp deceleration in the two quarter, Wanfeng explained, "the first is that regulators have stepped up regulation of solvency and modified some products such as the solvency of universal insurance."　　In addition, Accounting Standard No. 2nd on the Life insurance market, investment-type, financial-type income will not be counted into the premium income, so that the market pattern to be reclassified, the original big do omnipotent, the risk of the company's market position will change greatly, and China life is estimated to be the smallest impact. It is understood that the risk of investment, universal insurance in the country life of the business proportion is very small, and adhere to the strategy of the main dividend risk so that the country life can be comfortable. According to the introduction, Chou last year to invest only 60 million yuan, and universal insurance is about 10 billion yuan, the total premium income is as high as 295.6 billion yuan.　　In addition, the 10-year premium for the country's longevity increased by 50%, and the 5-9-year growth rate was also fast, while the premium and short-term premiums fell. Industry restructuring since last year is also a reason for the decline in the country's premium income.　　August 19 last year, the CIRC explicitly asked the insurance company to pay attention to the premium structure and business structure.　　Wanfeng predicts that most insurance companies will have a slight increase in premiums this year, or negative growth, and that, according to regulatory policy, companies would adjust their premium structure for accounting standards. However, for the "Dudangyimian" of the National life dividend risk, there are shareholders puzzled, universal risk is not better than the profit-sharing risk, why the dividend risk?　　Does the company weigh accounting statements and light business profits? In this regard, Guo Shou Chairman Chao not agree, he thought the pointsRed Insurance profitability is better than the investment, the universal risk. Chao explains that the profits and risks of the two types of business are different. Insurance companies can earn up to 30% of their profits from dividend insurance. And the risk of investment, universal insurance is mainly to earn money. In addition, dividends insurance when there is a refund, generally speaking, customer surrender to bear the loss, and investment, universal insurance is the settlement, if a large number of settlement, the company will have a large cash flow impact.