Ladies and gentlemen, good afternoon. Welcome to attend New China Life's 2022 interim results announcement. I am Vice President, Chief Actuary and Board Secretary, Gong Xingfeng. I'm the host of today. First, I would like to introduce the management team of New China Life. They are CEO President Mr. Li Quan, Vice President Zhang Hong, Vice President CFO Yang Zheng, Vice President Yu Zhigang, Assistant President Zhongzhu Wang. We also invite three independent directors to attend online. They are Mr. Zheng Wei, Mr. Geng Jianxin, and Mr. Mario Tam. Today, we have two parts. The first is results announcement. The second is Q&A session. We will offer simultaneous interpreting for friends. For investors, analysts, and media from friends, if you want to raise questions, please press star and one to queue in line. Next is the results announcement. CEO Mr.
Li Quan will introduce the overview and insurance business. Mr. Yang Zheng introduce financials and investments. I will introduce embedded value. Now, let's welcome Mr. Li Quan.
Thank you. Ladies and gentlemen, good afternoon. Welcome to NCI 2022 interim results announcement. First, I will introduce the business in first half of 2022. The company maintaining its strategic determination continue to return to the essence of insurance, promotes business transformation, industrial synergy and the technology empowerment, enriched protection products, upgraded customer service, optimized the utilization of insurance funds, fulfilled corporate responsibilities, served the national strategy, and pushed forward the high-quality development. As of the end of June 2022, the company pursued progress by insurance stability. GWP were CNY 102.5 billion, up by 2% year-on-year. A steady growth. Renewable premiums reached CNY 70.2 billion, up by 4.8%.
Total assets were CNY 1.18 trillion, up by 5.4% compared to the end of 2021. Annualized net investment yield was 4.7%, up by 0.2 percentage points. Embedded value reached CNY 258.8 billion, up by 0.02% compared to the end of 2021. As for environmental and social responsibility, New China Life always adheres to low-carbon and environmentally friendly operation mode. Applies mobile platform and mobile terminals for customer and order management, reducing paper consumption in traditional marketing model. The company actively shoulders social responsibilities, serves the people's livelihoods. The policy-oriented health insurance covered 13.85 million customers in the first half of 2022, rising by 208.8% year-on-year.
The company allocated CNY 10.4 million and supported 11 assistance projects. The company purchased agricultural goods and products worth CNY 3.28 million to support rural revitalization. As at June 30, New China Life has carried out public welfare activity for sanitation workers in 158 cities. Donation to summer heat of CNY 333 million. Settled claims with a total payment of CNY 27.6 million. At present, the life insurance business is touching its bottom and undergoing a profound transformation. The development environment is complicated and severe. In the second half of 2022, in accordance with the business orientation of stabilizing volume and highlighting value, the company focuses on core business, innovate products, improve team quality, and take multiple measures to promote high-quality developments. First, launch diversified products.
Focusing on customers' needs, the company will strengthen product innovation in key areas, improve product system to offer protection for customers' whole life. Meanwhile, the company will integrate internal and external resources in healthcare and elderly care to expand the coverage of products and service. Second, improve team quality. The company will offer more support for high-performing team to improve team quality and productivity. Put in place the high-performing projects, building sales team future youth, profession, and urbanization, and explore the transformational sales team. Third, strengthen customer management. The company will push forward Run NCI activity, create more activities to accumulate customers, carry out classified customer management. The company will upgrade the functions, inspect customer protection gap, and improve the service efficiency of sales team. Fourth, strengthen risk control and compliance.
The company will continue to implement selective strategic themes and strengthen dynamic risk monitoring to prevent case risks, enhance the awareness of risk prevention, and firmly prevent case risk. In terms of insurance business, let's see the GWP. In the first half of 2022, under the guidance of stable growth by regulators with spread of COVID-19 and severe and complex markets, life insurance industry went through adjustments. The company constantly includes the transformation market models, launches diversified products, improves service and technology empowerment, and a focus on key transformation. Business was stable. Renewal premiums reached CNY 70.2 billion, up by 4.8% year-on-year, taking up 68.4% of GWP. A solid foundation for rapid premiums growth.
FYP from long-term insurance reached CNY 29.4 billion, down by 1.7%, accounting for 28.7% of GWP. Premiums for short-term insurance were CNY 2.8 billion, down by 20.2% year-on-year. GWP breakdown by channels. Individual insurance channel realized premiums of CNY 69.5 billion, down by 0.5% year-on-year, accounting for 67.8% of GWP. Bank insurance channel realized premiums of CNY 31.1 billion, up by 7.8% year-on-year, accounting for 30.4% of GWP. Group insurance channel realized premiums of CNY 1.8 billion, up by 2.4% year-on-year. In terms of individual insurance business, in the first half of 2022, individual insurance channel suffered from COVID-19, and the new business growth was under pressure.
With the support of renewable business, individual insurance channel maintained stable premium. FYP from long-term insurance amounted to CNY 10.8 billion, down by 23.5%. FYRP from long-term insurance business amounted to CNY 10.4 billion. Renewable premiums amounted to CNY 60.6 billion, up by 5.2%. Premiums from short-term insurance reached CNY 1.1 billion, down by 44.7%. In terms of pure team building, the company actively explored the transformation of sales team and continued to increase agent headcount to build high-quality sales team. As at June 13, agent headcount reached 318,000, down by 27.9% year-on-year. The monthly average number of qualified agents was 61,000, reduced by 41.9%. The monthly average qualified rate was 17.5%, decreased by 1 percentage point.
The monthly average qualified per-productivity was over 3,000. In terms of bank insurance, in the first half of 2022, bank insurance channel deepened cooperation with important partners, and it boosted the growth of regular premiums. FYP from long-term insurance amounted to CNY 21.6 billion, up by 10.5%. The FYRP from long-term insurance amounted to CNY 4.7 billion, up by 1.1% year-on-year. Renewal premiums totaled CNY 9.5 billion, up by 2.5% year-on-year. For premiums from major products, FYP from participation insurance was CNY 16.8 billion, up by 12.2% year-on-year. FYP from health insurance reached CNY 2.8 billion, down by 38.2%. FYP from traditional insurance amounted to CNY 9.7 billion, down by 5.8% year-on-year. Next is business quality.
For business quality, 13-month and a 25-month persistence ratio of individual life insurance were 84.3% and 82.7%, down by 4.5 percentage points and 3.1 percentage points, respectively. That's all for the insurance business. Now, let's welcome Mr. Yang Zheng to introduce the financials and investment part.
Thank you, Mr. Li Quan. Next, I will introduce the financials and investment of the company. First, I'd like to introduce the major financial indicators. The total revenues of the company has a slight decrease, down by 4.8%. There are four parts. First is the insurance business. New China Life Insurance has elaborated, and in the difficult environment, the company has about 2% increase of the net premiums and policy fees, while the investment income decreased by 26.8%. Those two indicators has contributed to the 4.8% decrease of the total revenues. For the expenses, the commission and brokerage expenses has obvious decrease, about 30% decrease.
The administrative expenses have a slight decrease of 3.0%, which shows that the company has conducted effective measures to control the costs, especially in the difficult environment, and to take full advantage of the financial resources. For the net profit to the equity holders decreased by 50.8% on basic earnings and weighted average ROE attributable to shareholders of the company also see a decrease. The next slide, we introduce the investment performance. For the investment assets, we can see that the investment assets of the company have surpassed CNY 1 trillion to CNY 1.14 trillion, up by 5.3% compared with the end of last year. Annualized return on investment yields was 4.2%, down by 2.3 PT.
Annualized net investment yields reached 4.7%, up by 0.2 PT. Next, let's go to the investment portfolios. As the insurance company has over CNY 1 trillion assets in one half of a year, the changes are slight, and we have increased the allocation to term deposits and equity investments. Cash and cash equivalents was increased and other classes remains flat, which shows the company's allocation in the first half of the year. For the next end, the assets. The company will elaborate those investment category for the past several years.
Analysts who are familiar with the company will know that the alternative investments has a higher percentage in our total investment assets, and we have been telling the market that with the growth of the capital market and our allocation of assets, alternative investments will have a decreasing proportion in the total investment asset. In the first half of the year, we can see the alternative investment of the company is flat compared with the proportion in the end of last year. The major changes are that the alternative debt investment come to maturity, and there are not a lot alternative debt investment in the market, so we have a higher percentage of alternative equity investment. Alternative investment of the company hold has good credit, and the credit ratings is high, and the asset are secure with, and with high quality.
Next, I'd like to introduce the solvency. You might know that in the first half of the year, the company has applied the C-ROSS II, which have a major impact on the core solvency margin ratio, which decreased about 97.1 PT to 146%. The comprehensive solvency margin ratio was relatively flat. It's decreased by 11 PT to 240%. Those changes are mainly because of the increase of our business and the change of regulation policies. Next, let's invite Miss Gong to introduce the embedded value of the company. Thank you, Mr. Yang. Next, I'd like to introduce the embedded value. By the end of June 30, the embedded value of the company is CNY 258 billion, which is flat compared with the end of last year.
The value of new business is CNY 97 billion, up by 1.7%, and adjusted net was decreased 1% to CNY 461 billion. For the analysis of change for embedded value, the major contributor is the expected return and value of new business, which contributed 0.8% and 3.9% to EV growth. For the negative factors, we can see it's evident we have the shareholder dividend payment and because of the economic external variance, we have an adverse impact on the EV. This is closely related to the capital market in the first half of the year. I believe that you can understand this. For the value of new business, the VNB of the company reached CNY 2.1 billion, down by 48.4%.
The VNB margin based on the FYP was 6.6% and the VNB margin based on AP was 12.8%. This is all for the embedded value. Thank you. This is the end of the presentation. Let's go to the Q&A session to answer the questions of the analysts, media, friends, and investors.
Thank you. In the Q&A session, because of time limits, everyone has two questions. Please tell us your name and the company before raising question. Now let's welcome the first question. Ladies and gentlemen, if you want to raise questions, please press star and one to queue in line. If you want to cancel your question, please press star and two to cancel. Now let's welcome Miss Li Xin to raise first question.
Thank you for this opportunity. I'm Li Xin. I have two questions. The first is about the proportion of single premium in bank insurance channel. We can see the FYP in bank insurance channel is double the FYP in individual insurance. Now the value is behind, how to solve this problem. The second question is about the real estate investment risk.
The proportion of real estate in the total investment.
The first question is answered by Mr. Gong Xingfeng.
Thank you for your question. The first is about bank insurance channel. Bank insurance channel has some disuse in the market. New China Life emphasize on the role of bank insurance channel. We hope the bank insurance channel, we can contact our customers and market our products to our customers. As you can see, the premium growth in the premiums in bank insurance channel grow rapidly, but they contribute little to the business value. This is because of the features of bank insurance channel. There is fierce competition in bank insurance channel. The products are mainly short-term saving products. New China Life have some competition advantages in bank insurance channel.
In terms of business growth, we ranked fourth in the industry in the first half of 2022, and the bank insurance channel grew rapidly, especially regular premiums. Compared to our industry peers, we have some advantages in compensation. How to obtain business value is our concern, and we also put much efforts to improve value. Bank insurance channel is an important support. We also hope to analyze the banks. We will take multiple measures to decrease our cost. We also take multiple measures. First is to attract customers and offer the protection for customers. The second is to follow our customers and tap customers' potential and offer the protection and diversified products for the customers their whole life. We hope the wealth management team can complete this job.
We emphasize on single premium and regular premium, new customers and old customers, as well as business volume and business value. This is my answer for bank insurance channel.
The second question is asked by Mr. Yang Zheng.
Thank you for your question. The company emphasized on liquidity and risk in investment. In fact, if you follow our results, you may know that.
Government bonds. In the past one or three years, our term deposits, we have seldom property or real estate projects. Because of economic cycle or some risk exposures. From the short-term fluctuation and long-term investment, the property takes a little part in our investment portfolio. We control the proportion of the real estate projects. The indirect real estate is little. It won't shake our investment return. I don't know your definition of exposure, but there is little risk for the company. In terms of investment portfolio, we have very little risk.
Thank you.
Let's welcome the next question. Next question comes from Liu Jingyuan from Bloomberg News.
Thank you for the opportunity. I'm Liu Jingyuan. I have two questions. First is about the capital market and your investment strategy. In the first half, the capital market is fluctuating around your unrealized gains and losses.
How do you comment on the second half of the year, and can you elaborate your investment strategy? The second question I want to ask about the individual insurance channel. We can see in the transformation period of the industry, the insurance companies pay attention to the elite agents, and I want to know your strategy and how to retain the elite agents.
Let's welcome Miss Liang to answer the first question.
Thank you, Miss Liu Jingyuan. You can see elaborating our interim report in the first half of the year because of the fluctuation in the capital market and economy. We can see the company has less unrealized gains, which is showing in the interim reports.
Along with that, we can see that the company has cleared some inefficient equity investment to lay foundation and opportunities for the future value appreciation opportunities. For the second half, it's hard to tell. To synthesize your question with the short-term cycles coming to an end, we can see the economy in the last several years. We might see the short-term cycle come to an end. Also because of the pandemic economy and international environment in the second half, we will have good events in our company and in the country and the State Council has introduced a lot of measures to grow the economy. We think there are opportunities in the capital market and to provide the yield opportunities for the company in the equity investment.
For the debt asset, the macroeconomic policies as well as internal and external environment has impact on the debt allocation, and we will grasp diversified and different opportunities with different yield and risks, and we will allocate the viable and good assets. Just now mentioned, we have allocated a lot of treasury funding in the first half, and also the bond that has the tax benefits. We will lay the foundation for our future adjustment of the portfolio and positions. We have over CNY 1 trillion assets, and the total risk and the medium- and long-term yield is guaranteed. In the past several years, we have followed those philosophy. In the second half, maybe there are different types of market opportunities.
We have accumulated capabilities in trading and responding to different market environment and with a company that we can provide long-term and stable yield for the company. Second question is about the team building, and that's when Mr. Wang Zhongzhu wants to answer this question. Thank you.
Just now, Miss Liu has asked the question about elite team. Yes, the insurance market, insurance companies has to pay attention to the elite agents. The team development has put pressures on the sustainable development of insurance companies is because a lot of agents cannot maintain their business results and the performance. There are three major words. First is quality, the second is predictable, the third is sustainable. Only good quality can be sustained. The five-star hotels have a better quality than two-star hotels.
High-performing agents can bring more business than ordinary agents, and that's common sense. Only highly qualified agents can survive in the market. The second is the sustainability of the market. Life insurance provides service to cover the whole life of the customers, and we have to serve the customers in a sustained way. Only the insurance companies with sustained team can provide sustained service and products to meet the demand of customers, and which is trustworthy. For the productivity, either for customers and for teams, as well as the company development, we have to count on the elite team and high-quality business to support the development. NCI emphasize the team development of elites. Now we can see the industry is transforming, and the country and the industry is experiencing a fiscal bottom.
It's hard to stabilize in this bottom. Like the equity market, it has to go up or go down. If you want to stabilize in one exact number, it's hard. It has to go up or go down. To stabilize the team, development is the only way. Now, NCI wants to build three high team or with mass elite team. We want to take three major steps. First, we hope to improve the productivity. Second is optimize the structure. The third is to stabilize the growth. Specifically for the first step to improve the productivity, this agent team is not stable. The potential factor is the income of the agents is low. The average income of the team, it's higher than. If it's higher than other industries, we'll attract agents.
On the contrary, it is less than other countries, other industries. The agents will go to other industries. Behind the income is the productivity. The high-productivity agents stays in the company and is confident about the development of the industry. For the agents who leave, they are not confident and less patient about the company and the growth of the industry. To improve the productivity is the priority. Only improve the productivity and training their capability, we can improve the productivity of the agent team to further develop the agent team. The second step is to optimize the structure. In order to optimize the structure, some might say we can decrease the total agent headcounts. I think it's not viable. I want to give you an example.
If you want to decrease the total agent headcounts to optimize the business structure and agent structure, it will result in a transforming status. For the agent, if we lose the existing agents, it cannot. We have to grow the elite agents to support the team. For the company, we have to grow the number of director agents and elite agents, only in this way can we improve the structure of agent team. We are growing our high-performing agents. The premiums with payment period of 10 years or more has decreased, which will lead to the third step of the measures. That is, we have quality development of financial resources, the team and the business growth. We have a philosophy that one person can go long distance, but only a group of people can go far.
Life insurance is different from other insurance, from other industries. Only with good management, good training, can we grow an ordinary force. There are a lot of successful examples in the life insurance industry. To create and build high- quality agents, we have to create and build efficient sales team. In the middle school, we know that the volleyball team of China, maybe the individuals is less compatible than other countries. As a team, a lot of team members has been collaborated and they cooperate, and they defeat the elite volleyball players of other countries. That shows that how to build high efficient sales team, we need to unite and to sacrifice. The second philosophy is we have to go on the right track and then speed up.
We cannot be too worried, and to build the high- quality team, we have to be clear about the team and team development road we have choose. Only on the right road with confidence and patience, and with our team training, and, we can grow the agent team. The third philosophy is we have to be practical. For NCI, the biggest competitive strength is in the first step, our model, which is we need to compete and strive for stable business performance. In the past several years, we have overcome a lot of difficulties and create a lot of victories. Based on this philosophy, I believe to build a high productivity team or elite team, we have to have the following five factors. The first is have the atmosphere for team development.
Only on the good soil a seed can grow a lot of fruits. On a bad soil, it may perish or die. A good soil or atmosphere for team development is the foundation for the team growth and to build elite team. The second factor is we have to build a harmonious people-to-people relationship. We know that a relationship is important. Only with harmonious relation can the team grow stronger. If the relationship is bad, it will harm the whole team's productivity. We may know some people may have good morale, and we will have good productivity and atmosphere. On the contrary, it will have a bad atmosphere for the team development. The third factor is to build a culture that benefiting others. Insurance is to contribute and benefit people's livelihood.
Only with this philosophy we can grow the business and grow the culture of benefiting others. The fifth is the management of activities. God will pay those who strive for themselves. If agents who are not diligent and will not reach good business performance. Efficient business and agent management is a major factor for the team as a high need. The fifth is the managers of the team. Only strong manager can grow a strong team. In the future, in building a lead team, the company will constantly pay attention to the training of the managers of the team. That's all for my answer. Thank you.
Thank you. Let's welcome next question. Next is from Dongwu Securities.
Thank you for this opportunity. I'm [Gavisia] from Dongwu Securities. I have two questions. The first is about embedded value. We see the embedded value growth. The adjusted net worth decreased a lot. What's the reason behind this? What is the expectation of the EV in whole year? The second question is about team. We have seen the qualified rate decreased a little, the productivity improved. How can we understand this?
The first question, let's welcome Mr. Gong Xingfeng to answer.
About the net adjusted net worth decline. We hardly see in the past few years, the adjusted net worth declined a little around over CNY 1 billion. The reason is simple. In the first half of this year, the capital market fluctuated. The equity investment fluctuated. We can see the decline in the capital market. The adjusted net worth declined mainly because of the fluctuating capital market. In addition to the comprehensive income, and we can see the improvement in profit, but the profit also suffered impact. The internal-external environment cannot support the great increase of net assets, the embedded value will remain low throughout the year. That's the difference from our past. The in-force business growth for New China Life, that means our existing business maintained good momentum and value contribution. The in-force business is a foundation for the growth of embedded value.
The second question, let's welcome Mr. Wang Zhongzhu.
You mentioned about qualified rate decreased by 1.7% year-on-year. Qualified rate equals qualified member, total member. We can see the decline of qualified agent. Qualified agents declined rapidly than total member. We can see strict regulatory requirements, and we clean agent headcounts. In fact, the agent with effective policy is less. So we can see the qualified agent drop quickly than the total number of agents. You mentioned the increase of productivity over 20%. Productivity is total premiums as a percentage of the agent. There are two factors. The first is about team. The second is about customer. From the perspective of team, a high-performing agent is more sustainable than qualified agent. The high-performing agent can do more than five or 10 qualified agents. The high-performing agents contribute more premiums than qualified agents. The second thing is about customer.
We have differentiated customers during the past three years in COVID-19. We can see the ordinary customers, they spent less. They are reluctant to buy, to purchase. Their purchase power drops. The middle and higher customers have more purchase power and a purchase willingness. We can see some luxuries or excellent goods. They are clearly increased over 100%. For example, some excellent brands in Beijing, Shanghai, and Shenzhen, their selling increased a lot. For some small stores, they are even closed. The insurance market is the same. The bigger customers buy much more higher policy than ordinary customers. In the first half of this year, because of the fluctuated capital markets, fluctuated stock markets and the funds, the people's savings increased a lot. Savings increased and insurance products because of the security, liquidity.
The choices of some middle and higher classes in the first half of 2022. That's the main reason for the increased productivity. From the stable, high-performing agent or the contribution of high and middle customers. That's why we can see declined qualified rates and increased productivity. Qualifying the agent is unsustainable, so we need to increase sustainable, high-performing agents. That's why public companies emphasize on the high-performing agents. That's all. Thank you.
Next, let's invite Mr. Chen Jiayi from Twenty First Century to ask questions.
I have two questions. First is, this is the first year for the implementation of the 14th Five-Year Plan. You have three projects including the enhancement of marketing capabilities, the technology empowerment, and aged care and health care. I want to know your progress and your future steps.
Second, I want to ask about the aged care and health care industry. In last year, you've issued over 4,000 qualification letters for the residential apartment of senior. I want to know your progress here.
Let's invite Mr. Mi Shengkang to answer the first question.
Thank you for the question. The 14th Five-Year Plan is important for the company. The fifth session of the 19th meeting of the CPC has introduced the future perspective of the country and its important timing and document for the country to grow to a better place. The first 14th Five-Year Plan of the company is a document that guide the company to high quality and sustainable development.
The company has formulated the 14th Five-Year Plan last year, which has elaborate the roadmap of the company in the next five years. The big picture is that we will follow the vision of the company when we got listed. We will grow our life insurance main business and grow risk management and age and health care industries. Apart from the plan itself, we focuses more on the implementation of the plan. We introduced 10 sub-plans, including the distribution channels, the actuarial department, the financial department as well as the products to support the implementation of the 14th Five-Year Plan. Within those four style plans, the company has formulated three major areas. Namely, the marketing capabilities, the aged care and healthcare, as well as technology department.
Those two, three projects are vital to the future development of the company. We will further implement the projects. The board, as well as the management team, has constantly followed and promote those three projects. We have established the leadership team with the management members as the leader. In the first half of the year, we have established the goals, the strategy, and the roadmap for the three projects. At the same time, in the first half of the year, combining with the business performance, we have promoted the three projects. Here, I like to share the specific progress first for the enhancement of the marketing capabilities. First, we hope to build high- quality team featuring youth organization and professional, and then Mr. Wang will elaborate.
The second is about the training of the team. The third is about the customer management capability, which is related to the team development. The fourth is capability of product innovation. The fifth is about the innovation and service. We have specific and detailed plans and then for those major capabilities. For the aged care and healthcare industry, we have formulated the 14th Five-Year Plan in this regard and promote the industrial layout. We have formulated the high- level design of aged care and healthcare business to guide the development of the business. Second, we have formulated a coordinated and a collaborative plan for the synergy development of those two industries. Third is we hope to increase the collaboration synergy of for the aged care and healthcare with our life insurance business.
Thirdly, for the technology improvement, there are four aspects. First, we have to agents technology. The second is we emphasize technology to customers. The third, we emphasize the two core business management system, including the system for innovative insurance and the banks insurance as well as corporate insurance. We have introduced those two systems. The fourth is we want to strengthen the data governance and the data security, and this for the technology improvement. For the system to customers and to agents, we have introduced several platforms and coordinate the functions, and the registration rate has increased. Over 90% of the premiums comes from our online platform, which has the obvious and evident results.
Here, I want to say that those three major projects is a major part and grew along with our whole 14th Five-Year Plan. It's a constant work, and we will have an ongoing assessment as the project. In the first half of the year, we have formulated the model roadmap and start the different detailed projects. In the second half, we will further implement the 14th Five-Year Plan. That's all for the answer.
The second question, let's invite Mr. Zhang Hong. Mr. Zhang Hong will answer the second question.
First, I want to thank you for your question. Just now you've mentioned the performance of our company in two years ago.
First, I'd like to briefly introduce the business performance of the aged care and the healthcare of the industry, because the 14th Five-Year Plan has been gained the approval of the board and our directors. Under the guidance of the board and management team, the company has further implement the 14th Five-Year Plan. The total goal of the aged care and healthcare industry is to focus on the individual customer, especially the customer with high individual net worth. We hope to provide the demand that they needed, and we hope to expand our customer layout. We hope to provide insurance as well as customers for the customers to provide ecosystem for the customers to improve the life insurance in the end.
We might say that since 2021, we have promoted the aged and healthcare projects. Just now you've mentioned, we have issued over 4,000 residence qualification letters to the customer center, which has brought over CNY 6 billion premiums. I want to share that in the first half of the year, even though impacted by the pandemic, the team is promoting and taking several efforts to promote the synergy of aged care, health care, and the life insurance industry. In the first half of the year, we have issued altogether 353 residence qualification letters, which has brought over CNY 50 million premiums. In the last two months, we have seen a large increase.
I want to say that in the first half, the residence community in Yanqing District of Beijing has accomplished the building, and we have launched the experimental marketing, which has attracted a lot of agents and customers, and especially a lot of VIP customers come and visit. We have received the visits of over 7,000 customers. We also have received the premiums of over CNY 30 million. We can see that in our customers, the individual customer with high individual net worth has a large potential and demand for insurance products. The second is for the aged care and the healthcare. In the first half of the year, we have made efforts in promoting the healthcare.
In the first half, we have the synergy revenues of over CNY 20 million. Those are the results that we have received. We are more confident to further implement our aged care and healthcare plan, and we will further take detailed and consolidated efforts to further bring forward those plan. Secondly, you mentioned about the advantage for NCI. We have take early steps in promoting the healthcare and aged care business. In early days, we have made many efforts and laid foundations for the development of aged care and healthcare industry. The first advantage that the offline business has seen a systematic layout. In Beijing, we have the Lianhuachi Aged Care Community, which has been launched. Puao Aged Care Community also has been opened for business.
Yanqing Community for Aged People has also been launched in the first half. Those three communities are targeting different types of customers. For Yanqing Community, we hope to provide cares for agents. Puao Community is targeting for the aged care demand of the agents. We have provided different layered service for customers. Second competitive strength is that we have advantage in our location. For example, the Lianhuachi Aged Care Community is in the core area of Beijing, which is convenient for their relatives to visit the attendees and customers. We provide 24-hour cares in Lianhuachi Aged Care Apartment, and they can have on-site service if they need at any time. We have our advantage in our layouts.
As for the wealth health management, we have NCI Rehabilitation Hospital, as well as the wealth health management companies. We have 19 health management centers in core cities in China, so we have a wide coverage nationwide. On the other hand, the rehabilitation hospital have gained the medical care qualification, which will lay a good foundation for future development. Those are the major competitive strength of our company. The second is we have a good team, sales team. Just now, Mr. Wang has introduced that we have over 310,000 sales team, so which has a good reputation in the market. This is our advantage.
The second is we have over 30 million customers, and the exploitation of existing customers will provide foundation for aged care and healthcare development. Thirdly is that we have the support of our major shareholders. First of all, we are a major subsidiary of Central Huijin Investment, and life insurance business of NCI is a major part of Central Huijin Investment. We have a good relationship with CICC and China Re, et cetera. Those subsidiaries of NCI can have cooperation in customers, which will lay a foundation for our future business growth. Next is the emphasis of the management team of the company. Just now, Mr. Yu has introduced that we have three major products in our 14th Five-Year Plan. One major product is the aged care and healthcare plan.
This has showed that the CPC committee of the company and the management team of the company has a consensus about the growth of the aged care and healthcare industry. We have a consolidated and a strong leadership of the management team, which I believe is a major competitive strength of our company. I believe there is another advantage of NCI is that NCI currently we have we might lag behind in the healthcare and aged care, as well as life insurance. Maybe we in some regard lag behind, but I think it's not real lagging behind. Once we take efforts, we believe it will grow up.
We will have the foundation and we can draw lessons from our peer companies and to grow our own business. With our asset access, we believe for life insurance plus healthcare and aged care business, we can have the opportunity and possibility to grow in our 14th Five-Year Plan period. Those are the major advantages of our company. Besides, I also want to share that in the future development, just now Mr. Yu Zhigang has introduced our several plans and for the aged care healthcare business. Next, in the future, we hope to, first of all, improve our high-level design to improve our professional management capabilities. Now we are speeding up our efforts and progress. We hope to grow a high-quality team to build a high-performing management team for the team growth.
The second is we want to explore our features and differentiate service. Just now mentioned, we have the CCRC community, and we have the Lianhuachi Aged Care Community. We want to build a standard operating system and management model for future. Thirdly, we hope to leverage the risk management and internal-external resources. We hope to grow that and grow this business. Inside the company, we have united efforts and resources, and we have built a specified team to grow the health management business. We have made research on that. With the foundation of life insurance, we can grow the healthcare and support the whole life process management and service for the agents and improve the service and their product competitiveness. We hope to build an aged care and healthcare ecosystem.
We have made our high- level plan, and we want to further elaborate it and promote it. The second is we want to speed up our layout in the industry. Now, we have a combined model of both light- assets and heavy- assets. In the 14th Five-Year Plan, we hope to build the industry in the north and southeast and the west and as well the middle. We hope to make exploration activities in the home aged care, and we hope this will be a direction of our company. The third is we want to promote the collaboration and the synergy of health insurance and life insurance as well as aged care. We have introduced the multiple products, and we will further innovate product.
Lastly, we hope to improve the brand and popularity as NCI and attract more customers. Those are the major business plans in the next steps of our company. Thank you.
Next question is from Haitong Securities. Thank you.
Thank you for this opportunity. I'm Sun Ting from Haitong Securities. I also have two questions. The first is the 13-month persistency ratio and a 25-month persistency ratio. The ratios declined. What's the reason behind this and how to solve this problem? The second is about premium structure. The insurance industry have a high proportion of savings products. But life insurance face much pressures in investments, and especially at low- interest rates. So what does the company think about the spread rate?
The first question. We welcome Mr. Gong Xingfeng to answer.
About the persistency ratio, the indicators are dropping in the first half of 2022. The persistency ratio is related to sales team and the product structure. That's also because the market, specifically the sales team, suffered the impact from COVID-19. They have less opportunity to contact customers. The service also decrease. The customers have less awareness of insurance, so we can see some surrender of policyholders. The second is about the quality of sales team. In the past two years, sales team decreased from the total number, and there is a great drop of the total number of agents. The insurance agents maintain close relations with customers, so the drop of the number of agents will lose some customers and which results in the decrease of persistency ratio. There is some self-insured policies or some misleading marketing behaviors.
That will affect a lot about persistency ratio. The decline of persistency ratio of the company is similar to our industry peers. Industry peers also saw decline of persistency ratio. In the first half of 2022, the 13-month persistency ratio is about 83%. 25-month persistency ratio is about 82.7%. This is a high persistency ratio, and the industry peers dropped by around 3-4 percentage points. We emphasize on this problem. We take multiple measures to improve our persistency ratio. The first is to strike on key guy. The indicator of persistency ratio is linked to our business assessment and the management assessment. We will monitor the persistency ratio and keep our eyes on the management team of our branches. The second is to strengthen team training.
We may see the third, from the early warning to the process, we will improve the business management measures. The fourth is to focus on the distribution channels and the products. We will take multiple measures to treat the symptoms and the roots. At present, this is because the distribution channels, the bank insurance channel maintain good persistency ratio. For the products, this is because of the critical illness products. Focusing on important channels, products, and the self-insured policies or the mutual insured policies, we will strengthen our management to improve our persistency ratio. That's all.
The second question is answered by Mr. Wang Zhongzhu.
For the saving products, the spread. As the capital market declines and this problem is important.
From the first half of 2022, the fluctuating investment markets, including the foreign markets, we can see a great fluctuation in interest rates and the impact of inflation. A great impact on the macroeconomic policies. Compared to other industries, life insurance industries will see the long-term, the future spread rate. First, we need to focus on the customer's needs. The insurance industry is closely related to the customer's demands and the wealth management products. How does life insurance industry unleash its advantage and offer the products for our customers? The customers' demands for long-term investment increase. The long-term savings products, pension products, and whole life insurance products saw great growth and development. In the face of these difficulties, how to support this market is important.
Focusing on savings products and long-term protection products, the company will emphasize and achieve good growth on the premiums of controllable risks. For the long-term risks, the interest rate risks are prominent. We have to build excellent risk management in terms of product development. We have to offer the pricing rates instead of extreme pricing for our products. In terms of marketing, we cannot attract our customers by the interest rates. We must avoid misleading marketing. We must avoid to increase our liability cost. The specific measures are as follows: the products we must have our line, and we have to control risks in terms of assets. From the past ten years, our investment return are good despite the decline of interest rates and the pressure from capital markets. Insurance fund risk of interest rates. The company carry out a study on asset- liability management.
We hope based on effective asset- liability management, we hope we can make a balance between assets and liabilities. We want to manage the interest- rate stress dynamically and sustainably. That's all for my answer for the saving products and interest- rate stress management.
Thank you. Next, let's welcome the next question. This is our last question because of time limit. Next, let's invite Mr. Chung Wong to raise question.
Thank you for the opportunity. I'm asking from the Mercantile Securities, and I have two questions. First is about the investments. We can see that the net annual investment yield is increased compared with last year. I want to know that with a low- interest environment, and what are the measures you've taken or your features, and how to comment on the future investment yield? The second is about the broad life demand. Just now you've mentioned the strategy of the company, and I want to ask about the life insurance demand, including the savings and protection. In the past three years, because of the pandemic, the decrease of the supply, the internal and external environment, as well as the economy.
I want to know your comment on the customer's demand and, what's your view on the catalyst for the customer's demand in the future? In the medium and short-term, it is unclear for the demand, especially in the past two years' environment. The third pillar, healthcare industry, has seen progress. Life insurance hasn't seen too much growth, and I want to know your comment on the customer demand, external development. Thank you.
I think I'll ask Mr. Yang to answer your first question.
I think the first question has a simple answer. The net investment yield is a result of our debt investment asset, and it's a long-term result. It's hard to change the number. It's the result and contribution from our existing business. For the life insurance with large- scale asset, it's hard to change the net investment yield. These indicators is relatively stable and can directly show the company's major asset portfolio and allocation. A slight increase of the net investment yield is based on the accumulation of the coming up after several years. Then we have allocated resources to long-term investment assets with satisfied yield. In the past two years, there might be fluctuation in the market.
We can see that the market in the last year is relatively good, and it has contributed larger to the yield of the company, including the dividend re-dividend and interest of the company. That's the major reason for the increase of the net investment yield. For the total asset of the company and the general trend, we think we might see a decreasing trend of the net investment yield, which is also in line with the greater economic cycle. That it will be in a low phase is because we have our large scale existing asset. I believe it is the general principle, and it's in line with the whole picture. I believe the decrease of the yield from dividend and interest will be lower than the decrease of some market assets.
As entities in the market, we will seize to grab opportunities in the capital market and to allocate the resources and assets with good yield and controllable risks. With those factors, we believe it will contribute the total investment yield and dividend. Including the dividend and interest. In the long- term, if the general economy of the future hasn't changed the world, it might have a downward trend. With our capability, the management efficiency, and the asset allocation of company, we will be lower than the general trend, downward trend of the market. Next time, you will answer this question. I think this is a challenging question, especially in the past two years.
There are a lot of forums and discussions and there are a lot of questions about the transformation of the industry and how long will it last, and are there enough customer demand in the future? The life insurance is still in the process of development. The company has research and discuss it well in formulating our 14th Five-Year Plan. First question is how to comment on the current market. We can see that life insurance industry in China is in a transformation period, and that's a common consensus. Some has changed and some are not. For the unchanged, the whole life insurance industry has great growth potential and space, and it hasn't changed. The pandemic hasn't changed that. Pre-pandemic, we have a large potential for life insurance business.
After the pandemic, we cannot say the potential and the space for life insurance has decreased. I think the penetration rate and width of the people of life insurance is not enough for people's demand for a better living. Secondly, the life insurance industry have an unchanged law and pattern. The industry has to meet a demand for aged care and healthcare. The industry is a industry with cycles. In the past 30 years, we can see there are peaks and bottom periods. If we benchmark the development trend of China with the international market, including the Asia-Pacific market, we can see that the agent team has experience of high- speed growth, the decrease, as well as the growth of productivity and high quality. I think this law and pattern hasn't changed.
There are changes. First is the cultural demand has changed. We might know that in 2021, the GDP growth of China per capita has over $12,000. The customers has been divided. The life insurance industry is using the agent strategy we use, undifferentiated agents to meet undifferentiated customers and to meet their different demand. In the past three years, maybe critical insurance business can build as high value, but maybe it cannot meet all the demand of the customers. The second change is the regulation environment. The regulation may maybe more tolerant in the past for the industry's development, but in the past two years, the regulation is becoming increasingly strict.
The third is, there's a reform of the financial system, and the supply of the insurance product has changed. We have a lot of insurance users product, including the short-term medical insurance. For example, the government of different cities has introduced minimum products to provide protection for customers. Just now you've mentioned about the third pillar of the aged care industry. The banks has also joined the competition. There are different demand, different supply, and those are the changes and the factors and challenges that we are facing. The second, how to comment on the future development. We believe that in the life insurance industry experiencing transformation and shifting of driving factors. We need time to build new driving factors. The agents and customers needs to have the people relations to grow the team.
There are three stages to the team development. The existing or the old driving factors hasn't changed, yet, so it's shifting of, different driving models that we're experiencing. High- quality development direction hasn't changed. Personally, I believe in the future, the customer's demand is great and, shifting to customer-oriented pattern and we will build three pillar pattern. First is, the potential and demand from the critical illness hasn't changed. When you upgrade our different critical illness product, we have to combine the insurance with the medical service. The second is, there is a hotspot as, a wealth management. Like the whole life insurance and aged care insurance is.
Business is a return to customer demand which has been accumulated in the past series, which the insurance company focus on more the critical illness. Certainly you mentioned about this pillar insurance of aged care. The aged care is a blue sea area and the regulations pay a lot attention and emphasize this group growth. It introduced the exclusive pension insurance. Some people may think insurance companies may have competitive edge compared with other entities. I don't believe that. We have flexible account management model. Other management styles may be closed for about five years, but we are more flexible. The second is we have a long-term process and duration. Thirdly, we have prudent and a stable investment yield, which can have guaranteed investment return.
For NCI, we in the future will emphasize aged care and health care, including the long-term savings product and whole life insurance product. This year, we have pilot programs in sales of exclusive and commercial pension insurance. Apart from that, we also have introduced the traditional insurance products with aged care features, including the pension insurance. We have monthly payment and receiving insurance product and also the whole life insurance products. Just as Mr. Wang has introduced, we need different and diversified customers to improve productivity. I believe the transformation of the insurance industry will need two more years apart from this year. This year, we might be at the bottom, and we are shifting the products.
In the future, we will shift senior products to the agent team growth and to different market demands and appreciations. We will shift it to diversified sales and marketing models. If we look at the experience of external and foreign market, we can see five years maybe as a cycle, and we have three years after the pandemic, and we may need two more years. Thank you for the introduction of and the answers of the questions from the analyst, media friends and the investors. Due to time limits, this is the end of the Q&A session. Results announcements are concern of small and medium investors. Through IR email and IR hotline, they raise their questions, and we choose two most concerned questions. The first question is about the progress in innovative pension insurance products.
Can the product meet the demands of population aging? This question is about aging population. This is a hot problem. The company emphasizes on the pension insurance product and product innovation. We have four measures. The first is to launch long-term pension insurance products collaborated with healthcare and senior care. Mr. Zhang Hong elaborated this question just now. The second is to launch exclusive pension insurance products for the young people and the customer working in their career. We have exclusive products and the monthly pension insurance products. The second is to serve national strategy.
We launch diversified products. New China Life is a pilot for the commercial pension insurance program. Through online and offline marketing, we launch and market our pension insurance products. Mr. Zhang Hong who elaborated just now. At last, we strengthen the liabilities, focusing on long-term and whole life pension in the senior care. We launch new products. The company will continue to launch more insurance, pension insurance products to meet customers' diversified demands for senior care and contribute our efforts to deal with population aging. The second question is to raise the proportion of dividend distribution. The dividend distribution emphasize on the investment returns. The dividend distribution gives consideration to the long-term interest of the company, of our shareholders, and the company's sustainable development. Since 2016, the company raised the dividend distribution to over 30%. This dividend distribution is in line with the company's operation, regulatory requirements.
The company has no plan to adjust our dividend distribution. At last, thank you for your support and concern for New China Life. If you have further questions, please contact our IR team. Because of time, the 2022 interim results announcement is over. Thank you.