It is the earnings season. As most listed companies hand over their FY2023 responses one after another, “double high” report cards with both high quality and high growth attributes will receive special attention from the market.

On March 25, Sunshine Insurance (06963) handed over a “robust and dynamic” 2023 report card. It performed well in intuitive data such as premium size, value growth, and core business quality and efficiency. It more solidly promoted the implementation of customer ideas, and firmly locked in the digital and intelligent transformation trend of fintech, keeping up with the development context of the era of insurers' transformation.

As the only traditional insurance company listed among the 205 insurance companies established in this century, Sunshine Insurance has always maintained its original intention and strength. In order to build “a respected century-old enterprise”, it has gone through a difficult and unique complete entrepreneurial process, found shareholders with consistent values, built a scientific and reasonable corporate governance structure, and internalized the original intention into strength over many years of operation: stick to the main business, operate steadily, and develop value, and continue to set a high-quality benchmark for the growth of the insurance industry. And it is through this financial report that we can have a clearer understanding of its future development and growth potential.

Performance is steady and progressive, and “value sunshine” creates a model for high-quality growth

2023 is an important year for Sunshine's development. Sunshine welcomed the 18th anniversary of its establishment. It has steadily gone through its first complete business year since listing, and has achieved good business results and remarkable development results.

Financial reports show that as of December 31, 2023, the Group's total annual premium revenue was 118.91 billion yuan, up 9.3% year on year; achieved insurance service revenue of 59.90 billion yuan, up 7.5% year on year; net profit attributable to shareholders of the parent company was 3.74 billion yuan; included value of 104.06 billion yuan, up 6.4% from the end of the previous year; and total assets of 513.69 billion yuan, up 13.3% year on year.

In order to adapt to the constantly recovering industry and the new market environment, Sunshine Insurance has also made new adjustments in strategic guidance to seek breakthroughs in long-term value on the premise of ensuring the quality of development. In response, the company's management also further proposed a new sunshine strategy of “technological sunshine, value sunshine, and smart sunshine”, which is more conducive to long-term development, and has already seen initial results in the process of continuous implementation:

In terms of implementing the “Value Sunshine” strategy, in 2023, Sunshine Insurance continued to maintain steady business growth, and its ability to create value continued to increase, which is reflected in the company's financial indicators and operating data.

In the life insurance business, Sunshine Insurance adheres to value development as the core, continuously strengthens basic management such as asset liability matching and sufficient solvency, continuously optimizes the business structure and improves business quality. Under the strategy of diversified sales channels, it further strengthens the core capabilities of customer management and value development through measures such as product service system construction, strategic channel layout, and team capacity improvement, and promotes the initial realization of the “Five Highs” of high quality, high productivity, high value, high income and high quality companies.

Benefiting from the results of value engineering, Sunshine Life achieved a total premium income of 74.60 billion yuan in 2023, an increase of 9.2% over the previous year; of this, new single-instalment premium income was 18.10 billion yuan, an increase of 22.7% over the previous year; the value of the new business was 3.60 billion yuan, with a comparable increase of 44.2% over the previous year. According to a summary, among listed insurers that have published annual reports, Sunshine Life's new business value growth rate is in a leading position among peers, showing the attributes of high value and high growth.

In terms of financial insurance, the “Auto Insurance Smart Life Table”, “Non-Vehicle Data Life Table” and the “Credit Insurance Life Table” are the basic starting points to comprehensively create core capabilities for risk pricing and resource allocation, making car insurance truly the foundation for stable profits in financial insurance, and at the same time achieving balanced development of the non-vehicle business. In 2023, the company achieved original insurance premium income of 44.24 billion yuan, a year-on-year increase of 9.6%; a comprehensive underwriting cost ratio of 98.7%, an year-on-year optimization of 0.7 percentage points; and underwriting profit of 572 million yuan, an increase of 340 million yuan over the previous year.

Among them, the original insurance premium income of car insurance was 26.14 billion yuan, up 6.1% year on year, the comprehensive underwriting cost ratio was 98.9%, and the underwritten profit was 290 million yuan; the original insurance premium income of non-car insurance was 18.1 billion yuan, up 14.9% year on year, the comprehensive underwriting cost ratio was 98.6%, and the underwriting profit was 290 million yuan.

Moreover, on the investment side, the company adheres to a long-term investment strategy and achieved steady investment performance. The investment business also made great progress in 2023. The total investment assets were 479.75 billion yuan, an increase of 15.5% over the end of the previous year; achieved a total investment income of 14.62 billion yuan; and the comprehensive return on investment was 4.8%, an increase of 2 percentage points over the previous year.

Overall, the life insurance business is developing steadily, profits in the financial insurance business have increased, and the investment business has been stable for a long time. In this 2023 performance data, Sunshine Insurance's growth effectively reflects its long-term value development business philosophy and has built the Group's core competitiveness.

“Technological sunshine” creates a flywheel for development, and a rapid growth path is gradually taking shape

In 2023, Sunshine Insurance will adapt to the general trend of fintech, establish “Tech Sunshine” as the top of Sunshine Insurance's new strategy, and continue to develop new quality productivity in the insurance industry through intelligent data innovation and layout to empower diverse scenarios.

During the year, the company fully upgraded the new “Technology Sunshine 3.0” strategy centered on data intelligence. Empowered by innovative research and development, the company uses sales robots, service robots, and management robots as breakthroughs to build a customer-centered intelligent technology platform. Leading the development of the Sunshine Zhengyan GPT model with independent intellectual property rights, which is fully applied in customer service, sales support, and intelligent claims processing scenarios.

For example, the Sunshine Life Insurance sales robot is based on differentiated research on user groups, continuously refines the core functional experience, uses a virtual digital form to achieve full face-to-face voice interaction with customers, and initially achieves the “four meetings” ability to “introduce products, give opinions, answer questions, and impress customers”, providing strong support for the intelligent upgrading of first-line business scenarios.

Another example is on the service side, Sunshine continues to expand application channels and scenarios for service robots, upgrade personal assistant-style service guidance functions for business processing, respond to customer needs in a timely manner using the Lingxi Experience Plan, achieve a seamless connection between consultation and processing, greatly improve service timeliness and customer satisfaction, and continuously optimize the customer service completion rate.

As a representative of innovation and development in the insurance industry, Sunshine Insurance is committed to focusing on technological innovation, promoting the deep integration of digital technology with the insurance industry, exploring new models, new scenarios, and new ecosystems in the main financial sector, and building a new quality of productivity in traditional industries.

As a result, the company is also continuously strengthening digital customer insight, marketing, operation, risk control and product innovation, such as improving customer conversion rates through big data integration and customer portrait applications; in terms of marketing support, using big data, text mining and other means to promote sales and increase per capita production capacity; in terms of operation services, it provides customers with intelligent business processing such as intelligent consulting and intelligent loss determination; in terms of product innovation, the “new energy vehicle model based on mileage” applies data mining technology to greatly enhance NEV business capabilities.

In order to promote the improvement of the overall transformation capacity of the industry and accelerate the pace of transformation, Sunshine Insurance also took the lead in hosting the first Insurance Technology Digital Intelligence Conference, which brought together more than 150 organizations from inside and outside the industry, released the first white paper on the application of large-scale model technology in the insurance industry, initiated the establishment of the industry's first insurance technology digital intelligence innovation consortium, actively empowered the insurance industry's digital intelligence transformation pace, and comprehensively promoted the innovative breakthroughs of Technology Sunshine.

“Mindful Sunshine” is customer-centered, and practical actions explain social responsibility

For a large enterprise, “contraction” and “defense” are certainly beneficial to achieving the goal of maintaining success in a complex situation, but the so-called “long-term focus on style” is probably the best time to polish products and services and expand new volume for companies that are “aggressive and defensive”.

It is during the period of industry transformation and transformation that Sunshine Insurance is closely grasping the diverse and rich financial insurance needs of the people and finding new engines for development. In 2023, Sunshine Insurance will further implement the idea of “finance for the people” and further advance the “vertical and horizontal plan” with the goal of becoming a “close friend” for customers. Sunshine Life took the initiative to focus on the full life cycle needs of the customer's family and promote large-scale research on a group of over 20,000 people. Based on its deep understanding and understanding of the customer, Sunshine Life creatively launched the “three insurance policies for one lifetime, five insurance policies, colorful sunshine full red” (“three five seven”) product configuration concept to build a product system and supporting value-added service system that meets the needs of the customer's family.

For customers, the launch of “357” allows customers to clearly plan and allocate insurance for their own families at a glance. This means that Sunshine Insurance has taken the lead in completely transforming the insurance industry from a pure sales perspective to a customer perspective. It also makes Sunshine Insurance one of the few companies in the industry that explains customer protection needs clearly and easily to the public from the perspective of all customers.

At the same time, Sunshine Insurance also continues to promote the implementation of “partner action” risk management services in the financial insurance field. On the one hand, it has established a risk management team covering the whole country and directly under the overall management; on the other hand, it focuses on the innovation and practice of the “insurance+service+technology” model and uses technical means such as big data, cloud computing, artificial intelligence, and the Internet of Things to improve risk management and service efficiency. In 2023, a total of 14,000 enterprise customers were provided with technological disaster mitigation and professional risk consulting services.

On the customer service side, the company follows the principles of “three hearts” (love, care, caring) and “four sexes” (value, characteristics, practicality, and ease of use) to continuously strengthen the operational efficiency of basic insurance services, the ability to provide value-added services for customers, and the ability to directly connect to customers; upgrade Sunshine's unique team of “customer experience officers” to better “speak for customers”. The number of effective customers in the group reached 31.54 million.

At the same time, the insurance industry, as an important pillar of finance, plays a very important positive role in serving the country's regional development and national economic development. As a member of the insurance industry, Sunshine Insurance focuses on the development of the main insurance business while adhering to the purpose of serving the real economy and promoting the company's sustainable development. Meanwhile, the effective implementation of financial responsibilities and the implementation of social responsibility have also become a new highlight in the development of Sunshine Insurance's “Mindful Sunshine” strategy.

In 2023, Sunshine Insurance provided 61 trillion yuan of risk protection for the real economy; provided 12.2 trillion yuan of green insurance coverage, with a sustainable investment balance of over 50 billion yuan; provided risk protection of 30.02 billion yuan to about 26,000 micro, small and medium-sized enterprises, and helped about 68,200 micro, small and medium-sized enterprises to obtain financing of 11.3 billion yuan. By the end of the year, the company had helped build 73 philanthropy schools in 24 provinces across the country; trained 19,478 rural doctors; and paid parental support allowances to 40,716 employees.

It is easy to see that under the guidance of the new “Three Sunlights” strategy, Sunshine Insurance's profit margins are expected to be continuously optimized. By digging deeper into customer value, future business development and performance growth can be fully guaranteed. When winter comes to spring, the economy continues to pick up and improve. Companies that operate with remarkable integrity, such as Sunshine Insurance, will have a better chance of “accelerating growth.”