| 5 | SEGMENT INFORMATION |
| 5.1 | Operating segments |
The Group operates in four operating segments:
(i) Life insurance business (Life)
Life insurance business relates primarily to the sale of life insurance policies, including those life insurance policies without significant insurance risk transferred.
(ii) Health insurance business (Health)
Health insurance business relates primarily to the sale of health insurance policies, including those health insurance policies without significant insurance risk transferred.
(iii) Accident insurance business (Accident)
Accident insurance business relates primarily to the sale of accident insurance policies.
(iv) Other businesses (Others)
Other businesses relate primarily to income and cost of the agency business in respect of transactions with CLIC, etc., as described in Note 32, net share of profit of associates and joint ventures, income and expenses of subsidiaries, and unallocated income and expenditure of the Group.
| 5.2 | Allocation basis of income and expenses |
Investment income, net realised gains on financial assets, net fair value gains through profit or loss and foreign exchange gains/(losses) within other expenses are allocated among segments in proportion to the respective segments’ average liabilities of insurance contracts and investment contracts at the beginning and end of the year. Administrative expenses are allocated among segments in proportion to the unit cost of respective products in the different segments. Unallocated other income and other expenses are presented in the “Others” segment directly. Income tax is not allocated.
| 5.3 | Allocation basis of assets and liabilities |
Financial assets and securities sold under agreements to repurchase are allocated among segments in proportion to the respective segments’ average liabilities of insurance contracts and investment contracts at the beginning and end of the year. Insurance and investment contract liabilities are presented under the respective segments. The remaining assets and liabilities are not allocated.
| For the year ended 31 December 2017 | ||||||||||||||||||||||||
| Life | Health | Accident | Others | Elimination | Total | |||||||||||||||||||
| RMB million | ||||||||||||||||||||||||
|
Revenues |
||||||||||||||||||||||||
|
Gross written premiums |
429,822 | 67,708 | 14,436 | — | — | 511,966 | ||||||||||||||||||
|
- Term life |
4,110 | — | — | — | — | |||||||||||||||||||
|
- Whole life |
36,496 | — | — | — | — | |||||||||||||||||||
|
- Endowment |
198,418 | — | — | — | — | |||||||||||||||||||
|
- Annuity |
190,798 | — | — | — | — | |||||||||||||||||||
|
Net premiums earned |
429,267 | 63,323 | 14,320 | — | — | 506,910 | ||||||||||||||||||
|
Investment income |
115,316 | 5,454 | 456 | 1,501 | — | 122,727 | ||||||||||||||||||
|
Net realised gains on financial assets |
41 | 2 | — | (1 | ) | — | 42 | |||||||||||||||||
|
Net fair value gains through profit or loss |
5,690 | 269 | 23 | 201 | — | 6,183 | ||||||||||||||||||
|
Other income |
1,276 | 75 | — | 7,268 | (1,126 | ) | 7,493 | |||||||||||||||||
|
Including: inter-segment revenue |
— | — | — | 1,126 | (1,126 | ) | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment revenues |
551,590 | 69,123 | 14,799 | 8,969 | (1,126 | ) | 643,355 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Benefits, claims and expenses |
||||||||||||||||||||||||
|
Insurance benefits and claims expenses |
||||||||||||||||||||||||
|
Life insurance death and other benefits |
(257,300 | ) | (2,383 | ) | (25 | ) | — | — | (259,708 | ) | ||||||||||||||
|
Accident and health claims and claim adjustment expenses |
— | (27,992 | ) | (5,826 | ) | — | — | (33,818 | ) | |||||||||||||||
|
Increase in insurance contract liabilities |
(152,110 | ) | (20,249 | ) | (158 | ) | — | — | (172,517 | ) | ||||||||||||||
|
Investment contract benefits |
(7,798 | ) | (278 | ) | — | — | — | (8,076 | ) | |||||||||||||||
|
Policyholder dividends resulting from participation in profits |
(21,748 | ) | (123 | ) | — | — | — | (21,871 | ) | |||||||||||||||
|
Underwriting and policy acquisition costs |
(48,781 | ) | (8,494 | ) | (4,565 | ) | (2,949 | ) | — | (64,789 | ) | |||||||||||||
|
Finance costs |
(3,967 | ) | (187 | ) | (16 | ) | (431 | ) | — | (4,601 | ) | |||||||||||||
|
Administrative expenses |
(24,286 | ) | (5,615 | ) | (3,423 | ) | (2,629 | ) | — | (35,953 | ) | |||||||||||||
|
Other expenses |
(5,508 | ) | (376 | ) | (147 | ) | (1,521 | ) | 1,126 | (6,426 | ) | |||||||||||||
|
Including: inter-segment expenses |
(1,071 | ) | (51 | ) | (4 | ) | — | 1,126 | — | |||||||||||||||
|
Statutory insurance fund contribution |
(777 | ) | (180 | ) | (111 | ) | — | — | (1,068 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
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|
|
|
|
|||||||||||||
|
Segment benefits, claims and expenses |
(522,275 | ) | (65,877 | ) | (14,271 | ) | (7,530 | ) | 1,126 | (608,827 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Share of profit of associates and joint ventures, net |
— | — | — | 7,143 | — | 7,143 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment results |
29,315 | 3,246 | 528 | 8,582 | — | 41,671 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Income tax |
(8,919 | ) | ||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Net profit |
32,752 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Attributable to |
||||||||||||||||||||||||
|
- Equity holders of the Company |
32,253 | |||||||||||||||||||||||
|
- Non-controlling interests |
499 | |||||||||||||||||||||||
|
Other comprehensive income attributable to equity holders of the Company |
(7,838 | ) | (370 | ) | (31 | ) | 327 | — | (7,912 | ) | ||||||||||||||
|
Depreciation and amortisation |
1,513 | 351 | 216 | 160 | — | 2,240 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| As at 31 December 2017 | ||||||||||||||||||||||||
| Life | Health | Accident | Others | Elimination | Total | |||||||||||||||||||
| RMB million | ||||||||||||||||||||||||
|
Assets |
||||||||||||||||||||||||
|
Financial assets (including cash and cash equivalents) |
2,478,739 | 114,045 | 9,390 | 38,422 | — | 2,640,596 | ||||||||||||||||||
|
Others |
8,402 | 8,149 | 552 | 161,472 | — | 178,575 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment assets |
2,487,141 | 122,194 | 9,942 | 199,894 | — | 2,819,171 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Unallocated |
||||||||||||||||||||||||
|
Property, plant and equipment |
42,707 | |||||||||||||||||||||||
|
Others |
35,713 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Total |
2,897,591 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Liabilities |
||||||||||||||||||||||||
|
Insurance contracts |
1,914,597 | 102,190 | 8,346 | — | — | 2,025,133 | ||||||||||||||||||
|
Investment contracts |
218,436 | 14,064 | — | — | — | 232,500 | ||||||||||||||||||
|
Securities sold under agreements to repurchase |
81,163 | 3,832 | 321 | 1,993 | — | 87,309 | ||||||||||||||||||
|
Others |
41,888 | 3,123 | 224 | 21,323 | — | 66,558 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment liabilities |
2,256,084 | 123,209 | 8,891 | 23,316 | — | 2,411,500 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Unallocated |
||||||||||||||||||||||||
|
Others |
160,781 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Total |
2,572,281 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| For the year ended 31 December 2016 | ||||||||||||||||||||||||
| Life | Health | Accident | Others | Elimination | Total | |||||||||||||||||||
| RMB million | ||||||||||||||||||||||||
|
Revenues |
||||||||||||||||||||||||
|
Gross written premiums |
361,905 | 54,010 | 14,583 | — | — | 430,498 | ||||||||||||||||||
|
- Term life |
3,871 | — | — | — | — | |||||||||||||||||||
|
- Whole life |
29,524 | — | — | — | — | |||||||||||||||||||
|
- Endowment |
188,415 | — | — | — | — | |||||||||||||||||||
|
- Annuity |
140,095 | — | — | — | — | |||||||||||||||||||
|
Net premiums earned |
361,649 | 50,590 | 13,991 | — | — | 426,230 | ||||||||||||||||||
|
Investment income |
103,723 | 4,122 | 403 | 899 | — | 109,147 | ||||||||||||||||||
|
Net realised gains on financial assets |
5,823 | 231 | 23 | (39 | ) | — | 6,038 | |||||||||||||||||
|
Net fair value gains through profit or loss |
(6,436 | ) | (255 | ) | (25 | ) | (378 | ) | — | (7,094 | ) | |||||||||||||
|
Other income |
1,345 | 86 | — | 5,919 | (890 | ) | 6,460 | |||||||||||||||||
|
Including: inter-segment revenue |
— | — | — | 890 | (890 | ) | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment revenues |
466,104 | 54,774 | 14,392 | 6,401 | (890 | ) | 540,781 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Benefits, claims and expenses |
||||||||||||||||||||||||
|
Insurance benefits and claims expenses |
||||||||||||||||||||||||
|
Life insurance death and other benefits |
(251,155 | ) | (1,977 | ) | (25 | ) | — | — | (253,157 | ) | ||||||||||||||
|
Accident and health claims and claim adjustment expenses |
— | (21,958 | ) | (5,311 | ) | — | — | (27,269 | ) | |||||||||||||||
|
Increase in insurance contract liabilities |
(109,767 | ) | (16,578 | ) | (274 | ) | — | — | (126,619 | ) | ||||||||||||||
|
Investment contract benefits |
(5,091 | ) | (225 | ) | — | — | — | (5,316 | ) | |||||||||||||||
|
Policyholder dividends resulting from participation in profits |
(15,787 | ) | (96 | ) | — | — | — | (15,883 | ) | |||||||||||||||
|
Underwriting and policy acquisition costs |
(38,459 | ) | (6,906 | ) | (4,441 | ) | (2,216 | ) | — | (52,022 | ) | |||||||||||||
|
Finance costs |
(4,395 | ) | (174 | ) | (17 | ) | (181 | ) | — | (4,767 | ) | |||||||||||||
|
Administrative expenses |
(22,248 | ) | (4,373 | ) | (2,899 | ) | (2,334 | ) | — | (31,854 | ) | |||||||||||||
|
Other expenses |
(3,666 | ) | (256 | ) | (467 | ) | (1,360 | ) | 890 | (4,859 | ) | |||||||||||||
|
Including: inter-segment expenses |
(853 | ) | (34 | ) | (3 | ) | — | 890 | — | |||||||||||||||
|
Statutory insurance fund contribution |
(804 | ) | (138 | ) | (106 | ) | — | — | (1,048 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment benefits, claims and expenses |
(451,372 | ) | (52,681 | ) | (13,540 | ) | (6,091 | ) | 890 | (522,794 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Share of profit of associates and joint ventures, net |
— | — | — | 5,855 | — | 5,855 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment results |
14,732 | 2,093 | 852 | 6,165 | — | 23,842 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Income tax |
(4,257 | ) | ||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Net profit |
19,585 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Attributable to |
||||||||||||||||||||||||
|
- Equity holders of the Company |
19,127 | |||||||||||||||||||||||
|
- Non-controlling interests |
458 | |||||||||||||||||||||||
|
Other comprehensive income attributable to equity holders of the Company |
(23,433 | ) | (930 | ) | (91 | ) | (1,320 | ) | — | (25,774 | ) | |||||||||||||
|
Depreciation and amortisation |
1,490 | 257 | 196 | 140 | — | 2,083 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| As at 31 December 2016 | ||||||||||||||||||||||||
| Life | Health | Accident | Others | Elimination | Total | |||||||||||||||||||
| RMB million | ||||||||||||||||||||||||
|
Assets |
||||||||||||||||||||||||
|
Financial assets (including cash and cash equivalents) |
2,379,782 | 92,220 | 8,906 | 27,392 | — | 2,508,300 | ||||||||||||||||||
|
Others |
8,165 | 6,776 | 491 | 119,766 | — | 135,198 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment assets |
2,387,947 | 98,996 | 9,397 | 147,158 | — | 2,643,498 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Unallocated |
||||||||||||||||||||||||
|
Property, plant and equipment |
30,389 | |||||||||||||||||||||||
|
Others |
23,064 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Total |
2,696,951 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Liabilities |
||||||||||||||||||||||||
|
Insurance contracts |
1,762,363 | 77,837 | 7,786 | — | — | 1,847,986 | ||||||||||||||||||
|
Investment contracts |
183,773 | 11,933 | — | — | — | 195,706 | ||||||||||||||||||
|
Securities sold under agreements to repurchase |
77,649 | 3,081 | 302 | 56 | — | 81,088 | ||||||||||||||||||
|
Others |
73,277 | 3,563 | 338 | 18,194 | — | 95,372 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment liabilities |
2,097,062 | 96,414 | 8,426 | 18,250 | — | 2,220,152 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Unallocated |
||||||||||||||||||||||||
|
Others |
169,151 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Total |
2,389,303 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| For the year ended 31 December 2015 | ||||||||||||||||||||||||
| Life | Health | Accident | Others | Elimination | Total | |||||||||||||||||||
| RMB million | ||||||||||||||||||||||||
|
Revenues |
||||||||||||||||||||||||
|
Gross written premiums |
308,169 | 42,041 | 13,761 | — | — | 363,971 | ||||||||||||||||||
|
- Term life |
3,476 | — | — | — | — | |||||||||||||||||||
|
- Whole life |
28,119 | — | — | — | — | |||||||||||||||||||
|
- Endowment |
177,871 | — | — | — | — | |||||||||||||||||||
|
- Annuity |
98,703 | — | — | — | — | |||||||||||||||||||
|
Net premiums earned |
308,081 | 40,855 | 13,365 | — | — | 362,301 | ||||||||||||||||||
|
Investment income |
93,819 | 2,983 | 344 | 436 | — | 97,582 | ||||||||||||||||||
|
Net realised gains/(losses) on financial assets |
31,259 | 992 | 115 | (69 | ) | — | 32,297 | |||||||||||||||||
|
Net fair value gains/(losses) through profit or loss |
9,863 | 313 | 36 | (3 | ) | — | 10,209 | |||||||||||||||||
|
Other income |
1,074 | 61 | — | 5,006 | (1,081 | ) | 5,060 | |||||||||||||||||
|
Including: inter-segment revenue |
— | — | — | 1,081 | (1,081 | ) | — | |||||||||||||||||
|
Segment revenues |
444,096 | 45,204 | 13,860 | 5,370 | (1,081 | ) | 507,449 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Benefits, claims and expenses |
||||||||||||||||||||||||
|
Insurance benefits and claims expenses |
||||||||||||||||||||||||
|
Life insurance death and other benefits |
(219,944 | ) | (1,737 | ) | (20 | ) | — | — | (221,701 | ) | ||||||||||||||
|
Accident and health claims and claim adjustment expenses |
— | (16,858 | ) | (4,151 | ) | — | — | (21,009 | ) | |||||||||||||||
|
Increase in insurance contract liabilities |
(93,668 | ) | (15,803 | ) | (38 | ) | — | — | (109,509 | ) | ||||||||||||||
|
Investment contract benefits |
(2,076 | ) | (188 | ) | — | — | — | (2,264 | ) | |||||||||||||||
|
Policyholder dividends resulting from participation in profits |
(33,328 | ) | (163 | ) | — | — | — | (33,491 | ) | |||||||||||||||
|
Underwriting and policy acquisition costs |
(24,921 | ) | (5,528 | ) | (3,813 | ) | (1,307 | ) | — | (35,569 | ) | |||||||||||||
|
Finance costs |
(4,054 | ) | (129 | ) | (15 | ) | (122 | ) | — | (4,320 | ) | |||||||||||||
|
Administrative expenses |
(18,293 | ) | (3,811 | ) | (3,136 | ) | (2,218 | ) | — | (27,458 | ) | |||||||||||||
|
Other expenses |
(6,345 | ) | (327 | ) | (840 | ) | (997 | ) | 1,081 | (7,428 | ) | |||||||||||||
|
Including: inter-segment expenses |
(1,044 | ) | (33 | ) | (4 | ) | — | 1,081 | — | |||||||||||||||
|
Statutory insurance fund contribution |
(546 | ) | (103 | ) | (94 | ) | — | — | (743 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment benefits, claims and expenses |
(403,175 | ) | (44,647 | ) | (12,107 | ) | (4,644 | ) | 1,081 | (463,492 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Share of profit of associates and joint ventures, net |
— | — | — | 1,974 | — | 1,974 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment results |
40,921 | 557 | 1,753 | 2,700 | — | 45,931 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Income tax |
(10,744 | ) | ||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Net profit |
35,187 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Attributable to |
||||||||||||||||||||||||
|
- Equity holders of the Company |
34,699 | |||||||||||||||||||||||
|
- Non-controlling interests |
488 | |||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Other comprehensive income attributable to equity holders of the Company |
6,359 | 202 | 23 | 492 | — | 7,076 | ||||||||||||||||||
|
Depreciation and amortisation |
1,388 | 263 | 240 | 145 | — | 2,036 | ||||||||||||||||||
|
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|
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