Core Viewpoints - The non-bank financial industry is experiencing a positive trend in its fundamentals due to deepening capital market reforms, with a projected 30% profit growth over the next 25 years [5][10] - The average daily trading volume in the Shanghai and Shenzhen markets is 21.1 trillion CNY, reflecting a 4.5% decrease week-on-week [5] - The net profit of 150 securities companies is expected to reach 219.439 billion CNY in 2025, representing a year-on-year increase of 31.2% [5] Group 1: Industry Performance - As of March 28, 2026, the Shanghai Composite Index is at 3913.72 points, down 1.09%, while the Shenzhen Component Index is at 13760.37, down 0.76% [10] - The non-bank financial sector indices have seen declines of 3.55% and 5.72% for securities and insurance, respectively [10] Group 2: Insurance Sector Insights - The insurance sector's annual reports show a slowdown in growth due to changes in the market environment in Q4, but the long-term trend remains positive [16] - The net profit growth for insurance companies is expected to be in double digits for the year, despite a high base in 2024 [16] - Key stocks to watch in the insurance sector include China Pacific Insurance, Ping An Insurance, and China Life Insurance [16] Group 3: Securities Sector Developments - The introduction of a "light asset, high R&D" recognition standard has been expanded to the main board, enhancing the inclusivity of the capital market [17][18] - The new standards aim to improve the flexibility of refinancing rules and guide funds towards key technology sectors [18] - The adjustments to the standards include raising the R&D investment ratio for the ChiNext board from 3% to 5%, reinforcing the board's positioning [21] Group 4: Investment Recommendations - The report suggests focusing on companies with strong quarterly performance catalysts, including CITIC Securities, Huatai Securities, and China Merchants Securities [5] - In the insurance sector, recommended stocks include China Taiping, New China Life, and AIA Group [16] - For Hong Kong stocks, quality dividend stocks such as China Shipbuilding Leasing and Hong Kong Exchanges are highlighted [5]

Investment Rating - The insurance sector is rated as "Recommended," with expectations for the industry index to outperform the benchmark index by over 5% in the next 3-6 months [23]. Core Insights - The insurance sector showed overall profit growth in 2025, with a total net profit of 455.5 billion yuan from seven domestic listed insurance companies, marking a year-on-year increase of 26% [1]. - The fourth quarter was impacted by investment volatility, with only China Pacific Insurance achieving profit growth, while others faced declines [1]. - The dividend distribution varied among companies, with a total of 94.3 billion yuan in dividends, a 19% increase year-on-year, and most companies maintaining stable per-share dividends [2]. - New business value (NBV) for life insurance grew generally over 20%, driven by network expansion and improved value rates [3]. - The combined ratio (COR) for property insurance improved, although Sunshine Insurance was affected by credit insurance business [3]. - Net investment returns were influenced by declining interest rates, but equity assets positively impacted overall investment returns [4]. - The insurance sector is currently undervalued, with attractive dividend yields, and is recommended for continued attention [4]. Summary by Sections Annual Performance Overview - In 2025, the total net profit for seven listed insurance companies reached 455.5 billion yuan, with notable growth rates from China Taiping (+221%) and China Life (+44%) [1]. - The fourth quarter saw significant performance disparities, with only China Pacific Insurance reporting profit growth [1]. Dividend Distribution - Total dividends for the seven major insurance companies and China Property Insurance amounted to 94.3 billion yuan, reflecting a 19% year-on-year increase [2]. - Most companies achieved stable growth in per-share dividends, with varying dividend payout ratios [2]. New Business Value and Growth - The new business value for life insurance companies showed robust growth, with China Life at +35.7% and Ping An at +29.3% [3]. - The growth in new business value was supported by network expansion and the integration of individual insurance and health insurance [3]. Investment Returns - Net investment returns were affected by a downward trend in interest rates, but equity investments helped boost overall returns [4]. - The total investment return rates varied among companies, with China Life achieving a 6.09% return, an increase of 0.59 percentage points [4]. Market Outlook - The insurance sector is viewed as undervalued with attractive dividend yields, suggesting a favorable investment environment [4].

Core Viewpoint - China Pacific Insurance has significantly increased its investment in the A-share market, exceeding the target of allocating 30% of new premiums to this market, with a net increase of over 40 billion yuan in 2025 [1][2]. Investment Performance - As of the end of 2025, China Pacific Insurance's investment assets reached 1.90 trillion yuan, a year-on-year increase of 15.8%. The total investment income for 2025 was 923.23 billion yuan, up 12.4% year-on-year, while net investment income was 587.47 billion yuan, growing by 2.5% [2][3]. - The total investment return rate was 5.7%, an increase of 0.1 percentage points year-on-year, while the net investment return rate was 3.6%, a decrease of 0.3 percentage points [2]. Asset Allocation - By the end of 2025, the proportion of stocks in the investment portfolio increased from 3.7% to 8.7%, a rise of 5 percentage points, with stock holdings amounting to 166.2 billion yuan, a year-on-year increase of 176% [5][6]. - The company has emphasized investing in high-dividend blue-chip stocks, with the average dividend yield of held stocks reaching 4.27% [5]. Financial Results - In 2025, China Pacific Insurance reported a net profit of 630.33 billion yuan, an increase of 9.0% year-on-year, and a parent net profit of 466.46 billion yuan, up 8.8% [6][9]. - The company plans to distribute a dividend of 0.22 yuan per share for 2025, a year-on-year increase of 22.2%, indicating a strong commitment to shareholder returns [9]. Underwriting Performance - The underwriting profit for China Pacific Insurance's property and casualty insurance segment was 124.43 billion yuan in 2025, a year-on-year increase of 75.6%, with a combined cost ratio of 97.6%, the best level since the company went public in 2018 [10]. - The company expects stable underwriting profits in 2026, with a focus on achieving profitability in non-auto insurance segments [10].

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company, with current prices at 7.47 RMB and 5.43 HKD respectively [1]. Core Insights - The company achieved an operating revenue of 669.04 billion RMB in 2025, representing a year-on-year increase of 7.6%. The net profit attributable to shareholders was 46.65 billion RMB, up 8.8% year-on-year [4]. - The weighted average return on equity was 16.1%, a decrease of 0.6 percentage points year-on-year. The comprehensive cost ratio for the property insurance segment improved to 97.6%, down 0.9 percentage points year-on-year [4]. - The new business value (NBV) for the life insurance segment reached 15.62 billion RMB, reflecting a significant year-on-year growth of 40.8% [4]. Summary by Sections Financial Performance - The company reported a comprehensive cost ratio of 97.6% for the property insurance segment, improving by 0.9 percentage points year-on-year. The property insurance premium income was 555.78 billion RMB, a 3.3% increase year-on-year [5]. - The life insurance segment saw a new single premium income of 97.94 billion RMB, up 19.8% year-on-year, with a notable increase in long-term insurance first-year premiums [7]. Investment and Profitability - The total investment assets reached 1.9 trillion RMB by the end of Q4 2025, a 15.8% increase from the beginning of the year. The stock asset scale increased significantly by 175.9% to 166.24 billion RMB [8]. - The net investment yield was 3.6%, with total investment yield at 5.7%, both showing slight declines year-on-year [8]. Profit Forecast and Valuation - The report projects the company's net profit attributable to shareholders for 2026 and 2027 to be 49.8 billion RMB and 55.1 billion RMB respectively, with an additional forecast for 2028 at 60.5 billion RMB [9]. - The A/H share prices correspond to a price-to-earnings value (PEV) of 0.81 for A-shares and 0.52 for H-shares in 2026 [9].

Group 1 - Southbound funds reduced their holdings in China People's Insurance Group (01339.HK) by 2.851 million shares on March 27 [1] - Over the past five trading days, there has been a cumulative net reduction of 27.8699 million shares, with southbound funds reducing their holdings for five consecutive days [1] - In the last twenty trading days, the total net reduction reached 155 million shares, with southbound funds reducing their holdings every day during this period [1] Group 2 - As of now, southbound funds hold 2.349 billion shares of China People's Insurance Group, accounting for 26.91% of the company's total issued ordinary shares [1] - China People's Insurance Group is a holding company primarily providing insurance products, including property insurance, health insurance, life insurance, reinsurance, Hong Kong insurance, and pension insurance [1] - The company's property insurance business includes products for both corporate and individual clients, such as motor vehicle insurance, agricultural insurance, property insurance, and liability insurance [1]

Investment Rating - The report maintains a "Buy" rating for China People's Insurance Group with a target price adjusted to HKD 8.20 per share, corresponding to a 2026 P/B of 1.0 times [7][11]. Core Insights - The company's net profit attributable to shareholders for 2025 is projected to be RMB 46.65 billion, reflecting an 8.8% year-on-year increase. The net asset value is expected to rise by 15% compared to the beginning of the year, with an annual dividend of RMB 0.22 per share, up 22.2% year-on-year [3][11]. - The report highlights significant improvements in the combined ratio (COR) for property and casualty insurance, driven by effective cost control, and strong growth in new business value (NBV) for life insurance, primarily fueled by the bancassurance channel [3][11]. Financial Summary - **Insurance Service Revenue**: Expected to grow from RMB 537.71 billion in 2025 to RMB 664.93 billion by 2028, with a CAGR of approximately 5.1% [5]. - **Net Profit**: Projected to increase from RMB 46.65 billion in 2025 to RMB 66.36 billion by 2028, with a CAGR of approximately 11.2% [5]. - **P/E Ratio**: Expected to decrease from 5.31 in 2024 to 3.43 in 2028, indicating a potential undervaluation [5]. - **P/B Ratio**: Expected to decline from 0.85 in 2024 to 0.67 in 2028, suggesting a favorable valuation trend [5]. Key Performance Drivers - **Property and Casualty Insurance**: Premium income is expected to grow by 3.3% year-on-year in 2025, with motor insurance premiums increasing by 2.8% and non-motor premiums by 3.9% [11]. - **Combined Ratio (COR)**: The COR for property and casualty insurance is expected to improve by 1.3 percentage points to 97.5% in 2025, driven by a reduction in the expense ratio and an increase in the claims ratio [11]. - **Life Insurance NBV**: Anticipated to grow by 64.5% year-on-year in 2025, with bancassurance channel NBV increasing by 99.6% [11]. Financial Forecasts - **Earnings Per Share (EPS)**: Expected to rise from RMB 1.05 in 2025 to RMB 1.50 in 2028 [5][11]. - **Book Value Per Share (BPS)**: Projected to increase from RMB 6.99 in 2025 to RMB 7.65 in 2028 [5][11]. - **Embedded Value Per Share (EVPS)**: Expected to grow from RMB 3.61 in 2025 to RMB 5.39 in 2028 [5][11].

Investment Rating - The investment rating for the company is "Buy" (maintained) for both A-shares and H-shares [6]. Core Views - The company reported a net profit of RMB 46.2 billion for 2025, representing a year-on-year growth of 9.6%, which is below previous expectations of RMB 53.8 billion. Both life insurance and property insurance segments underperformed [1]. - The new business value (NBV) for life insurance grew by 41% year-on-year, driven primarily by the strong performance of life insurance through bank channels. The company expects a 24% growth in NBV for 2026 [2]. - The combined ratio (COR) for property insurance improved to 97.5%, a year-on-year improvement of 1.3 percentage points, with underwriting profit soaring by 119.4% to RMB 12.535 billion [3]. - The net investment yield for 2025 was 3.5%, a decrease of 0.4 percentage points year-on-year, while the total investment return rate remained stable at 5.6% [4]. - The company has adjusted its earnings per share (EPS) forecasts for 2026, 2027, and 2028 to RMB 1.20, RMB 1.31, and RMB 1.45, respectively, and has lowered the target price based on DCF valuation to RMB 10.00 for A-shares and HKD 8.00 for H-shares [5]. Summary by Sections Life Insurance - The life insurance segment's NBV increased by 41% year-on-year, with individual life insurance and health insurance NBV growing by 65% and 23%, respectively. The company lowered the discount rate for participating and universal life insurance to 7.5% from 8.5% [2]. Property Insurance - The property insurance segment's COR improved to 97.5%, with a significant underwriting profit increase. The COR for auto insurance was 95.3%, reflecting a 1.5 percentage point improvement, primarily due to a substantial decrease in expense ratios [3]. Investment Performance - The company maintained a total investment return rate of 5.6% despite a decline in net investment yield. The net assets grew by 15% year-on-year, indicating strong capital strength [4]. Profit Forecast and Valuation - The company has revised its EPS forecasts downward for the next three years and adjusted the target price based on DCF valuation methods. The new target prices are RMB 10.00 for A-shares and HKD 8.00 for H-shares [5].

Core Viewpoint - China People's Insurance Group has demonstrated significant achievements in high-quality development, with record-breaking figures in various financial metrics for 2025, including total assets exceeding 2 trillion yuan and net profit surpassing 600 billion yuan [2][3]. Business Performance Overview - The group reported total premium income of 738.3 billion yuan, a year-on-year increase of 6.5%. Property insurance premium income was 555.8 billion yuan (up 3.3%), while life insurance premium income reached 182.2 billion yuan (up 17.8%) [3]. - The comprehensive cost ratio for property insurance improved to 97.6%, marking the best level in recent years [2]. Investment and Profitability - Total investment income reached 92.3 billion yuan, with net profit at 63.0 billion yuan, both setting historical highs [2]. - The group achieved an underwriting profit of 12.4 billion yuan in property insurance, a significant increase of 75.6% year-on-year [5]. Capital Strength - The group's net assets grew to 420.2 billion yuan, reflecting a 14.4% increase from the beginning of the year. The core solvency ratio stood at 201%, indicating strong capital adequacy [6]. Technological Advancements - The group has accelerated its digital transformation, achieving a 21% increase in patent applications and implementing AI initiatives that improved service efficiency [7]. Risk Management - The group has enhanced its risk management framework, achieving an A-grade rating for all insurance subsidiaries and improving its risk monitoring mechanisms [8]. Social Responsibility and Market Position - In 2025, the group undertook insurance responsibilities amounting to 364.8 trillion yuan, leading the industry with a 14.9% year-on-year growth. It also provided extensive coverage for various sectors of the economy [9]. - The group has established a comprehensive insurance system for food production, covering nearly 20 trillion yuan in risk protection for farmers [10]. Future Outlook - The company aims to focus on high-quality development, enhance service capabilities, and deepen reforms while maintaining a strong emphasis on risk management [11][12].

Investment Rating - The industry investment rating is "Outperform the Market" [5] Core Insights - The report highlights that China Life Insurance's underwriting profitability has improved, and investment performance remains stable, with a proposed dividend increase for 2025 [1] - The report indicates that China Life's net profit attributable to shareholders for 2025 is CNY 46.6 billion, representing a year-on-year increase of 8.8%, with a weighted average ROE of approximately 16.1% [3] - The report emphasizes that the property and casualty insurance segment has seen stable premium growth, with original premium income reaching CNY 555.8 billion, a year-on-year increase of 3.3% [4] - The life and health insurance segment has optimized its business structure, with a comparable NBV growth of 64.5% year-on-year, reaching CNY 8.2 billion [4] - Investment management has focused on asset-liability matching, with a net investment yield of 3.6% and a total investment yield of 5.7% for 2025 [4] - The report suggests that the life insurance industry is expected to maintain strong demand on the liability side, with new business and NBV anticipated to grow steadily [4] Summary by Sections Property and Casualty Insurance - Original premium income for property insurance reached CNY 555.8 billion, with a combined ratio (COR) of 97.6%, leading to an underwriting profit of CNY 12.4 billion, a year-on-year increase of 75.6% [4] - The auto insurance segment maintained its advantage, with premiums increasing by 2.8%, and new energy vehicle premiums rising by 31.9% [4] Life and Health Insurance - The contract service margin for life insurance reached CNY 104.5 billion, with new business contract service margin at CNY 17.4 billion, reflecting a year-on-year increase of 22.8% [4] - The health insurance segment maintained a leading market position, with first-year premium income increasing by 56.0% year-on-year [4] Investment Performance - The investment strategy has improved, with government bonds accounting for 27.9% of the portfolio and stocks and funds at 13.3% [4] - The report indicates a stable investment environment, with potential for continued robust investment returns if geopolitical tensions ease [4]

Disclaimer This presentation has been prepared by the People's Insurance Company (Group) of China Limited (the "Company"). No representation or warranty, expressed or implied, is given as to the fairness, accuracy, completeness or correctness of any information contained herein and they should not be relied upon as such. The Company shall have no liability whatsoever (in negligence or otherwise) for any loss howsoever arising from this presentation or its contents or otherwise arising in connection with thi ...