Investment Rating - The report maintains an "Accumulate" rating for the insurance sector [2]. Core Insights - The PCE-ROCE valuation system is introduced to better reflect the true value of insurance companies under new standards, addressing the limitations of the traditional P/EV system [6][47]. - The report identifies that companies like China Pacific Insurance and China Life Insurance are significantly undervalued in the A-share market, while in the H-share market, China Pacific, China Life, and Sunshine Insurance are also notably undervalued [6][6]. - The insurance sector is characterized by dual benefits: companies possess dividend advantages, and leading firms like Ping An have strategically invested in high-dividend assets, which positively impacts their performance [6]. Summary by Sections 1. Introduction - The P/EV valuation system is under scrutiny due to a prolonged low interest rate environment, leading to a decline in the valuation levels of listed insurance companies [16][16]. - As of July 23, 2025, major insurance companies are trading at historical low P/EV ratios, indicating a potential valuation trap [16][16]. 2. PCE-ROCE Valuation System - The PCE-ROCE system incorporates comprehensive equity (CE) and return on comprehensive equity (ROCE) to provide a more accurate valuation framework [47][48]. - The system aims to mitigate the volatility associated with traditional valuation methods by integrating net assets and contract service margins [6][47]. 3. Comparison with PIEV - The PCE-ROCE system is deemed more effective in reflecting the true value of insurance companies in a low interest rate environment compared to the PIEV system, which relies heavily on long-term investment return assumptions [8][8]. - The report highlights that the PCE-ROCE system offers a balanced valuation approach by considering both net assets and contract service margins [8][8]. 4. Profitability Analysis of Listed Insurance Companies - The report evaluates the profitability of insurance policies under the new standards, focusing on contract service margins (CSM) and new business contract service margins (NBCSM) [8][8]. - A scoring system is established to assess the performance of listed insurance companies based on various profitability indicators, with AIA, PICC, and CPIC scoring the highest [8][8]. 5. Main Conclusions and Investment Recommendations - The report concludes that the insurance sector presents significant investment opportunities, particularly in companies that are undervalued and have strong dividend policies [6][6]. - Recommended companies for investment include New China Life, Ping An, AIA, China Life, China Pacific, and China People’s Insurance [6][6].

Investment Rating - The report maintains an "Overweight" rating for the insurance sector [2]. Core Insights - The P/EV valuation system is facing challenges in a persistently low interest rate environment, leading to significant adjustments in risk discount rates and investment return assumptions, which have resulted in a decline in NBV and EV growth [5][9]. - The introduction of the PCE-ROCE valuation system aims to provide a more comprehensive reflection of the true value of insurance companies by incorporating comprehensive equity (CE) and return on comprehensive equity (ROCE) [31][43]. - The report identifies that A-share listed insurance companies, particularly China Pacific Insurance and China Life Insurance, are relatively undervalued according to the PCE-ROCE valuation system [5][29]. Summary by Sections 1. Introduction - The P/EV valuation system shows signs of "failure" as the valuation levels for A-share listed insurance companies continue to decline, with significant pressure on new business value growth due to macroeconomic factors [9][14]. 2. PCE-ROCE Valuation System Proposal - The PCE-ROCE system introduces comprehensive equity (CE) and ROCE to better reflect the value of insurance companies under new accounting standards [31][43]. - The system aims to address the limitations of the P/EV system by providing a more stable and predictable valuation framework [5][31]. 3. Comparison of Valuation Systems - The PCE-ROCE system is more effective in reflecting the true value of insurance companies in a low interest rate environment compared to the traditional P/EV system [5][31]. - The report highlights that the P/CE ratio provides a better fit and reflects the comprehensive value of insurance companies compared to P/B and P/EV ratios [5][31]. 4. Analysis of Insurance Companies' Policy Profitability - The report establishes a profitability evaluation system for listed insurance companies based on CSM and NBCSM, identifying key performance indicators to assess profitability [5][31]. - The scoring system ranks companies based on their CSM performance, with AIA, PICC, and CPIC scoring the highest [5][31]. 5. Main Conclusions and Investment Recommendations - The report concludes that several A-share and H-share listed insurance companies are undervalued, suggesting a focus on companies like New China Life, Ping An, AIA, China Life, CPIC, and PICC for potential investment opportunities [5][29].

Core Insights - The Hong Kong Stock Connect Non-Bank ETF (513750) has reached a record size of 10.364 billion yuan as of July 24, 2025, marking a year-to-date growth of 1213.56% [1] - The ETF has seen continuous net inflows over the past 17 days, with a total of 4.966 billion yuan in net inflows, and 5.897 billion yuan over the past month [1] - The ETF has achieved a 52.78% increase since its low point on April 10, 2025, and has a one-year net value increase of 90.63%, ranking in the top 1.36% among 2940 index stock funds [2] Fund Performance - The Hong Kong Stock Connect Non-Bank ETF recorded a trading volume of 2.158 billion yuan on July 24, 2025, with a turnover rate of 22.14%, indicating active market participation [2] - The ETF has a maximum monthly return of 31.47% since its inception, with the longest consecutive monthly gain being 4 months and an average monthly return of 7.04% [2] - The ETF closely tracks the CSI Hong Kong Stock Connect Non-Bank Financial Theme Index, which includes up to 50 listed companies that meet the non-bank financial theme criteria [2] Sector Analysis - The top ten weighted stocks in the CSI Hong Kong Stock Connect Non-Bank Financial Theme Index account for 77.92% of the index, with major holdings including China Ping An, AIA, and Hong Kong Exchanges and Clearing [3] - Market sentiment has improved in Q2 2025, leading to an increase in the non-bank sector's weight, with expectations for both fundamental and valuation improvements [3] - The insurance sector is expected to benefit from a stable interest rate environment and improved investment returns, which could enhance profitability [4]

Core Viewpoint - The strong performance of insurance stocks is driven by multiple factors, including improvements in fundamentals, supportive policies, and favorable funding conditions [1][3][9]. Group 1: Performance Metrics - As of July 23, the A-share insurance sector saw a 2.25% increase, with New China Life leading at 2.73% [2]. - From April 1 to the present, major A-share insurance stocks have experienced gains ranging from nearly 50% to over 120%, with New China Life doubling its stock price [1][3]. - Over the past year, New China Life's stock has risen by 116.15%, while China Life and China Pacific Insurance have also shown significant increases of 59.16% and 48.51%, respectively [3]. Group 2: Fundamental Drivers - The improvement in the insurance sector's fundamentals is supported by a recovery in liabilities and assets, alongside a series of policies aimed at reducing costs and enhancing market access for insurance funds [1][9]. - Analysts predict that the insurance sector is at the beginning of a long-term upward trend, with all listed insurance companies showing investment value [1][10]. Group 3: Valuation and Investment Trends - The insurance sector is characterized by low valuations and stable dividend yields, attracting attention from public funds [3][4]. - As of the end of Q2 2025, public funds increased their holdings in insurance stocks, with the sector's valuation ranging from 0.60 to 0.93 times P/EV, indicating it remains at historical lows [4][6]. - The total dividends from five listed insurance companies for 2024 are projected to reach 907.89 billion yuan, a year-on-year increase of 20.21% [4]. Group 4: Regulatory Impact - Recent regulatory measures have aimed to mitigate "interest spread loss" risks, which have historically pressured valuations in the insurance sector [6][7]. - The lowering of the maximum guaranteed interest rates for various insurance products is expected to alleviate investment pressures on insurance companies [7][8]. Group 5: Future Outlook - Analysts anticipate continued improvement in the insurance sector's fundamentals, driven by a combination of favorable policies and market conditions [9][12]. - The upcoming financial reports for listed insurance companies are expected to reflect sustained growth in new business value and improved profitability in various insurance segments [11][12].

Core Viewpoint - Guangdong Insurance Company is focusing on enhancing technology insurance services to support technological innovation and provide comprehensive risk protection for emerging industries in Guangdong [1][2]. Group 1: Technology Insurance Development - The company emphasizes the need for high professional capabilities in technology insurance due to the rapid technological updates and complex risks in the innovation sector [1]. - Guangdong Insurance has provided risk protection for multiple R&D projects in key laboratories and startups, covering nearly 16,000 technology companies with a total risk protection amount of 11.84 trillion yuan as of June 2025 [1]. Group 2: Strategic Focus Areas - The company will continue to focus on major technological breakthroughs in strategic emerging industries such as artificial intelligence, low-altitude economy, biomedicine, and integrated circuits [2]. - Plans include the establishment of specialized technology insurance centers in cities like Guangzhou, Foshan, and Dongguan, and the integration of external resources to enhance the "insurance + service + technology" model [2].

Group 1 - The insurance stocks in China have shown a significant increase, with China Life Insurance rising by 3% to HKD 22.3, China Pacific Insurance up by 2.79% to HKD 31.3, and China Ping An increasing by 1.84% to HKD 55.3 [1] - Since July, there have been four instances of insurance companies making significant investments in listed firms, indicating a notable acceleration in the pace of insurance capital entering the market [1] - As of July 22, insurance capital has made 21 significant investments this year, surpassing the total for the entire year of 2024, with investments covering various sectors including banking, public utilities, and transportation [1] Group 2 - According to招商证券, since Q2 2025, the A-share market has been recovering, leading to a systematic revaluation of the Hong Kong stock market, with increased risk appetite among investors benefiting the insurance sector [2] - The recent regulatory changes by the China Securities Regulatory Commission aimed at enhancing the performance benchmarks for public funds have led to increased capital allocation towards the underweighted insurance sector [2] - The insurance sector is experiencing a recovery in premium growth, supported by ongoing policy benefits and improvements in the industry fundamentals, with a notable rebound in valuations for both the sector and individual stocks [2]

当前，消费者购物习惯逐渐向线上转移，电销渠道获客成本攀升，人力、场地等运营开支居高不下。同 时，监管部门对电销的合规要求日益细化，企业合规成本增加。这些原因使得电销中心加速退场成为行 业调整的必然选择。 在保险销售的多元格局中，以电话为核心纽带连接险企与客户的电销渠道，如今正经历深刻变革。 近日，金融监管总局四川监管局批复同意撤销阳光人寿保险股份有限公司成都电话销售中心高新分中 心。这已不是今年第一家撤销电销中心的保险公司，据《金融时报》记者统计，今年以来已有10余家保 险电销中心或分部被撤销，较去年同期有所增长。 业内人士认为，保险公司电销中心加速离场，折射出传统电销渠道在行业发展中的式微态势，主要受到 互联网销售渠道冲击、获客成本加大以及监管趋严下销售误导问题无所遁形等原因的驱使。值得关注的 是，科技赋能"电销+线上"的保险精准获客模式已然开启。 保险电销缘何日渐式微？事实上，在保险销售群体中，电销座席职务几乎是处于行业末端地位，虽然大 量普通的传统个险代理人收入不高、流失率较高，但他们尚且有着一定的自由度、成长周期及较为宽松 的展业空间。而保险电销员则面临着严苛的考核压力，工作模式相对僵化。 以市场竞争 ...

Core Insights - The central rural work leading group reported the effectiveness of the 2024 central unit targeted assistance evaluation, with three major insurance companies receiving the highest rating of "good" [1] Group 1: Company Contributions - China People's Insurance Group has supported over 100 industrial projects in five targeted assistance counties, donating more than 112 million yuan to boost local "one village, one product" initiatives [1] - China Life Insurance has invested 443 million yuan in assistance and attracted over 763 million yuan in investment, training 6,275 individuals and conducting nearly 98 million yuan in consumer assistance [3] - China Pacific Insurance has promoted "anti-poverty insurance" and large illness rescue insurance in targeted areas, serving 5,000 AAA-rated credit users and enhancing financial support for local industries [4] Group 2: Financial Impact - China People's Insurance has facilitated sales of over 4600 local specialty products, achieving cumulative sales exceeding 233 million yuan, thus converting production into sales for impoverished communities [2] - In 2024, China Life Insurance provided risk protection worth 678.4 billion yuan to 16.65 million farming households through agricultural insurance, ensuring financial safety nets for rural areas [3] - China Pacific Insurance's initiatives are aimed at expanding coverage and enhancing the financial foundation for rural revitalization, demonstrating the role of insurance in promoting common prosperity [4]

Core Viewpoint - The life insurance industry has experienced significant disparities in performance over the past 16 years, with only a small number of companies successfully distributing dividends while many others have struggled with capital increases and losses [1][2][3]. Summary by Sections Life Insurance Industry Dividend Situation - From 2009 to 2024, the life insurance industry has distributed a total of 850.6 billion yuan in dividends, with 180 instances of dividend distribution [7]. - The cumulative capital increase in the life insurance industry during the same period reached 587.7 billion yuan, with 366 instances of capital increase [9]. - The total profit accumulated by the industry over 16 years is 1,989.9 billion yuan, with a peak profit of 320.1 billion yuan in 2024 [10][13]. Company Performance Analysis - Out of 87 companies that have increased capital, only 27 have distributed dividends, indicating a significant divide in performance [14][15]. - The 27 companies that have distributed dividends have a cumulative profit of 2,046.4 billion yuan, while the remaining 62 companies have accumulated losses of 56.6 billion yuan [17]. - The 62 companies that have never distributed dividends accounted for 72% of the total capital increases, totaling 342.3 billion yuan [2][16]. Dividend Distribution Rankings - The top 10 companies in terms of cumulative dividends from 2009 to 2024 include Ping An Life, China Life, and Taiping Life, all of which have distributed dividends exceeding their cumulative shareholder investments [20]. - Notably, 11 companies, including the top three, have also surpassed their cumulative shareholder investments in terms of dividend payouts [20]. - In 2024, three companies made their first dividend distributions: Ping An Health, PICC Health, and Agricultural Bank Life [20].

Core Viewpoint - The Chinese insurance industry is expected to see a net profit growth rate of +7.4% year-on-year in 1H25, with significant divergence in profit growth among companies compared to Q1, influenced by interest rate changes and the timing of profit recognition for life insurance contracts [1] Group 1: Life Insurance Sector - The new business value (NBV) for Chinese life insurance is projected to show strong growth, with expected year-on-year increases of +48% for Xinhua, +45% for Sunshine, +40% for PICC, +38% for Ping An, +33% for Taiping, and +20% for Taikang in 1H25 [1] - The life insurance sector is experiencing high growth in bancassurance channels, while individual insurance faces pressure; attention is recommended on the recruitment of new agents and the transformation of participating insurance [1] Group 2: Property and Casualty Insurance Sector - The property and casualty (P&C) insurance sector is expected to perform well in underwriting, with improved comprehensive cost ratios: 94.8% for China P&C (down 1.4 percentage points year-on-year), 96.9% for Ping An P&C (down 0.9 percentage points), and 96.8% for Taiping P&C (down 0.3 percentage points) [2] - The overall profitability of P&C insurance companies is anticipated to be better than that of life insurance companies, with upward adjustments made to profit forecasts for the year [1][2] Group 3: Profit Growth Divergence - The expected year-on-year net profit growth rates for Chinese insurance companies in 1H25 are +33% for China P&C, +19% for PICC, +18% for Xinhua, +2% for Taiping (operating profit +4%), 0% for Sunshine, -4% for Taikang, and -7% for Ping An (operating profit +3%) [3] - The divergence in profit growth rates among companies has narrowed compared to Q1, with the lagging life insurance sector expected to show improved performance in the second half of the year due to lower profit baselines [3]