CPIC Life's New Business Value Turned Positive on Stabilizing Agent Headcount

CPIC’s first three quarters of total revenue growth was 7.5% against the year-ago period while net profit declined 10.6% over the same period. Though nine-month new business value declined 38% against the year-ago period, third-quarter NBV grew 2.5%. This made CPIC the first company among peers to report positive growth in 2022, contrary to the 20% decline of Ping An. The stabilizing agent headcount in the past quarter was above our expectations, contrary to the single digit declines from June for peers. The agent headcount has stabilized at around 254,000 since June. We believe positive growth in third-quarter NBV was partly due to the relatively low base of the year-ago period and increasing sales contribution from productive premier agents, that expanded to 68,000, or 23% of total headcount. The development of first-year premiums per agent and average income per agent in the past quarter was encouraging, which increased more than 61% and 52% respectively against the year-ago period. Management noted average income improved to nearly CNY 10,000 per premier agent, or nearly 1.5 times of China’s social average wage.