Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company demonstrated robust underwriting in auto insurance, with total premium income reaching 538.06 billion yuan, a year-on-year increase of 4.3% [4] - The net profit attributable to shareholders increased by 30.9% year-on-year to 32.17 billion yuan, driven by improved investment performance [8] - The combined ratio (COR) stood at 98.8%, reflecting a 1.0 percentage point increase year-on-year, primarily due to natural disaster impacts [6][7] Summary by Sections Insurance Service Revenue - The company achieved insurance service revenue of 485.22 billion yuan, up 6.1% year-on-year, with a quarterly growth trend showing improvement [5] - Auto insurance service revenue was 294.70 billion yuan, a 4.5% increase, with a market share in the new car segment rising to 38.8% [5] - Non-auto insurance service revenue reached 190.52 billion yuan, growing by 8.8%, with significant contributions from various segments including agricultural insurance and liability insurance [6] Profitability and Cost Management - The underwriting profit decreased by 43.9% year-on-year to 5.71 billion yuan, influenced by an increase in the combined loss ratio to 73.0% due to natural disasters [6][7] - The company implemented cost control measures, resulting in a decrease in the expense ratio for auto insurance to 24.2% [7] Investment Performance - Total investment income rose to 34.94 billion yuan, a substantial increase of 67.9% year-on-year, benefiting from a recovery in equity markets [8] - The total investment return rate was 5.5%, reflecting a 2.0 percentage point increase year-on-year [4][8] Future Outlook - The company is expected to maintain its leading position in the property insurance sector with a market share of 31.8% [8] - Profit forecasts for 2025 and 2026 have been adjusted to 37.4 billion yuan and 43.3 billion yuan respectively, with a new forecast for 2027 set at 50.4 billion yuan [9]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HK$16.59, corresponding to a PB of 1.2 times for 2025 [6]. Core Views - In 2024, the company achieved a net profit of CNY 32.161 billion, a year-on-year increase of 30.9%, while the underwriting profit decreased by 43.9% to CNY 5.713 billion. The comprehensive cost ratio (COR) rose to 98.8%, an increase of 1.0 percentage points year-on-year [1][3]. - The company’s investment income significantly increased by 67.9% year-on-year to CNY 34.937 billion, primarily due to the strategic allocation of secondary equity assets during market lows [5]. Summary by Sections Performance Overview - In 2024, the company reported a net profit of CNY 32.161 billion, up 30.9% year-on-year, with an underwriting profit of CNY 5.713 billion, down 43.9%. The COR was 98.8%, up 1.0 percentage points, and ROE was 13.0%, up 2.2 percentage points. The proposed final dividend per share is CNY 0.332, leading to a total annual dividend of CNY 0.54, an increase of 10.4% year-on-year [1]. Liability Side - The insurance service revenue for 2024 was CNY 485.223 billion, a year-on-year increase of 6.1%, with a market share of 31.8%, down 0.7 percentage points. The revenue from auto insurance was CNY 294.701 billion, up 4.5%, while non-auto insurance revenue was CNY 190.522 billion, up 8.8% [2][3]. Profitability - The COR increased by 1.0 percentage points to 98.8% in 2024, driven by a rise in the loss ratio, which increased by 2.4 percentage points to 73%. The increase in loss ratio was attributed to severe disaster impacts and rising liability costs due to declining interest rates. The company implemented cost reduction measures, reducing the expense ratio by 1.4 percentage points to 25.8% [3][4]. Investment Side - By the end of 2024, the total investment scale reached CNY 676.512 billion, a 12.6% increase from the previous year, with a total investment return rate of 5.5%, up 2 percentage points year-on-year [5]. Profit Forecast and Valuation - The company aims for steady growth, with projected net profit growth rates of 29.9%, 16.4%, and 20.5% for 2025-2027. The BPS is expected to be CNY 12.57, CNY 14.06, and CNY 15.82 for the respective years, with corresponding PB ratios of 1.04, 0.93, and 0.83 [6][13].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the increase in investment income has driven net profit growth, with stable dividend returns [1] - The company is expected to maintain a leading underwriting profitability in the long term despite short-term fluctuations caused by catastrophic losses [3] - The report projects a slight upward adjustment in profit forecasts for 2024, with net profit estimates for 2025-2027 at 352 billion, 379 billion, and 419 billion respectively [4] Financial Performance Summary - Total revenue for 2023 is reported at 478.826 billion, with a year-on-year growth of 7.02%, and projected to reach 519.57 billion in 2024 [1] - The net profit attributable to shareholders for 2023 is 24.585 billion, reflecting a decrease of 15.70%, but is expected to rebound to 32.173 billion in 2024, a growth of 30.86% [1] - The book value per share (BVPS) is projected to increase from 10.40 in 2023 to 11.60 in 2024 [1] Cost and Profitability Metrics - The comprehensive cost ratio stands at 98.8%, an increase of 1.0 percentage points year-on-year, with underwriting profit reported at 5.7 billion, down 44% year-on-year [3] - The loss ratio has increased to 73.0%, up 2.4 percentage points, with significant impacts from natural disasters [3] - The expense ratio has decreased to 25.8%, primarily due to cost reduction initiatives [3] Investment Strategy - The company has increased its allocation to bonds and equity investments, with total investment assets rising by 12.6% to 676.5 billion [4] - The total investment return rate is reported at 5.5%, an increase of 2.0 percentage points year-on-year, attributed to strategic investments during market lows [4] Dividend Policy - The company plans to distribute a dividend of 0.54 per share for 2024, representing a 10% increase year-on-year, with a dividend payout ratio of 37% [10]

Core Points - The company reported a stable growth in operating performance for the year, achieving a revenue of 709.4 billion yuan, a year-on-year increase of 6.4%, and a net profit of 42.9 billion yuan, up 88.2% from the previous year [2] - The company aims to build a world-class insurance financial group by focusing on five key areas: excellent functionality, efficient operations, clear core business, modern governance, and international competitiveness [3] - In 2025, the company will implement its strategy by focusing on six reforms and four solid actions to enhance innovation and management efficiency [4][5] Financial Performance - The company achieved a return on equity (ROE) of 16.7%, an increase of 7.1 percentage points year-on-year [2] - The company handled nearly 500,000 claims daily, with a payout of 1.23 billion yuan [2] Strategic Development - The company emphasizes the importance of serving the public and contributing to social governance and economic development [3] - The strategic focus includes enhancing risk management, improving service quality, and optimizing product offerings [6][7] Reform Initiatives - The company plans to deepen governance reforms, enhance strategic management, and improve resource allocation to respond effectively to market competition [5] - The company will also focus on digital transformation and talent development to create a conducive working environment [5][6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][11] Core Insights - The company achieved a net profit of 32.17 billion yuan in 2024, representing a year-on-year increase of 30.9%, aligning with expectations. The underwriting profit was 5.71 billion yuan, down 43.9% year-on-year, while total investment income reached 34.94 billion yuan, up 67.9% year-on-year. The comprehensive cost ratio (COR) increased by 1.0 percentage points to 98.8% due to frequent natural disasters [4][5] - The company is a leader in the property and casualty insurance industry, with a competitive advantage in the market. The total dividend per share for the year was 0.54 yuan, an increase of 10.2% year-on-year, with a dividend payout ratio of 37.3% [4][6] - The company has adjusted its net profit forecasts for 2025-2026 to 34.91 billion yuan and 38.24 billion yuan, respectively, while introducing a new forecast for 2027 at 41.76 billion yuan, reflecting year-on-year growth rates of 8.5%, 9.5%, and 9.2% [4][7] Financial Summary and Valuation Metrics - Total premium income for 2024 was 538.1 billion yuan, a year-on-year increase of 4.3%, with service income at 485.2 billion yuan, up 6.1%. The breakdown includes 294.7 billion yuan from auto insurance and 190.5 billion yuan from non-auto insurance, with respective year-on-year growth rates of 4.5% and 8.8% [5][7] - The company's total investment income for 2024 was 34.9 billion yuan, with an annualized total investment return rate of 5.5%, up 2.0 percentage points year-on-year. Investment assets increased by 12.6% to 676.5 billion yuan [6][7] - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 1.6 yuan, 1.7 yuan, and 1.9 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 8.5, 7.8, and 7.1 [7]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 15.50 [8][9]. Core Views - The company's 2024 EPS is projected to be RMB 1.45, representing a 31% year-on-year increase, driven mainly by improved equity investments [1]. - The overall combined ratio (COR) for the company is expected to be 98.8%, reflecting a 1 percentage point increase year-on-year, primarily due to natural disaster impacts [1]. - The company is anticipated to maintain steady growth in its business, particularly in the auto insurance sector, which is expected to grow at a rate of 4.5% in 2024 [2]. Summary by Sections Auto Insurance Performance - The auto insurance COR for 2024 is projected at 96.8%, remaining stable compared to 96.9% in 2023. The loss ratio has increased by 2.2 percentage points to 72.6%, offset by a decrease in expense ratio [2]. - The auto insurance business revenue is expected to grow by 4.5% year-on-year, indicating a stable market outlook [2]. Non-Auto Insurance Performance - The non-auto insurance COR is estimated to rise by 2.8 percentage points to 101.9% in 2024, indicating underwriting losses. The loss ratio has increased by 2.7 percentage points, while the expense ratio remains stable [3]. - Revenue from property insurance is expected to grow by 4.7%, with a COR of 113.4%. Agricultural insurance revenue is projected to increase by 4.9%, with a COR of 99.7% [3]. Capital Returns - The return on equity (ROE) for the company is expected to rise by 2 percentage points to 13.1% in 2024, supported by favorable investment conditions. The total investment return rate is projected to increase to 5.5% [4]. - The company plans to distribute a dividend of RMB 0.54 per share for 2024, up from RMB 0.49 in 2023, with a payout ratio of 37% [4]. Earnings Forecast and Valuation - The EPS forecasts for 2025, 2026, and 2027 have been raised to RMB 1.62, RMB 1.69, and RMB 1.82 respectively, reflecting adjustments of 12.7% and 8.0% for the first two years [5]. - The target price based on DCF valuation has been increased to HKD 15.50 from HKD 13.60, maintaining the "Buy" rating [5].

Core Viewpoint - China Pacific Insurance (02328) maintains an "outperform" rating, with a target price increase of 17.6% to HKD 14.7, reflecting a positive outlook for 2025 despite challenges in 2024 due to natural disaster losses [1] Group 1: Financial Performance - In 2024, the company's premium income increased by 4.3% year-on-year to CNY 538.1 billion, while market share decreased by 0.7 percentage points to 31.8% [2] - Net profit rose by 30.9% to CNY 32.2 billion, aligning with expectations, driven by improved stock market conditions [3] - Total investment assets grew by 4.3% year-on-year, with total investment return increasing by 2.0 percentage points to 5.5% [3] Group 2: Underwriting and Cost Ratios - The combined ratio (CoR) for 2024 increased by 1.0 percentage point to 98.8%, primarily due to higher-than-expected natural disaster losses [2] - The combined loss ratio rose by 2.4 percentage points to 73%, with the net loss from major disasters exceeding the average of the past five years by 50.9% [2] - The CoR for auto insurance improved by 0.1 percentage point to 96.8%, while the non-auto insurance CoR decreased by 2.8 percentage points to 101.9% [2] Group 3: Dividend and Long-term Outlook - The annual dividend per share increased by 10.4% to CNY 0.54, slightly below expectations, but the long-term operational trend supports strong future dividend capacity [4] - The company is viewed as a long-term stable investment option, considering dividend growth and net asset increases [4]

Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company is expected to achieve a record net profit attributable to shareholders of 32.16 billion yuan in 2024, representing a year-on-year growth of 30.9% driven by significant investment income growth and business structure optimization [1] - The company's market share in the insurance sector remains strong at 31.8%, with premium income from original insurance reaching 538.06 billion yuan, a stable growth of 4.3% year-on-year [1] - The company is focusing on enhancing its risk models and expanding into the emerging home and self-car insurance sectors, with premium income from car insurance reaching 294.70 billion yuan, a year-on-year increase of 4.5% [2] - The non-auto insurance segment has shown impressive growth, with premium income rising to 190.52 billion yuan, an increase of 8.8% year-on-year, contributing to 39.3% of total premium income [3] - The company has optimized its asset allocation, achieving an investment return of 15.12 billion yuan, a remarkable increase of 270.8% year-on-year, with a total investment return rate of 5.5% [3] Summary by Sections Financial Performance - In 2024, the company is projected to generate total revenue of 513.68 billion yuan, reflecting an 8.53% increase from 2023 [5] - The diluted earnings per share (EPS) for 2025, 2026, and 2027 are forecasted to be 1.55, 1.67, and 1.77 yuan respectively, with corresponding price-to-book ratios (P/B) of 1.15, 1.10, and 1.06 [4][5] Business Segments - The car insurance business has improved its market share to 38.8%, with a combined ratio (COR) of 96.8%, which is better than the industry average [2] - The non-auto insurance business has seen a significant increase in premium income, particularly in personal non-auto insurance, which grew by 18% year-on-year [3] Investment Strategy - The company is capitalizing on market opportunities by increasing its allocation to long-term bonds and high-dividend stocks, with a notable increase in government bond investment share by 9.9 percentage points year-on-year [3] - The company’s investment strategy has led to a robust investment income performance, significantly outperforming the CSI 800 index by 27.9% over the past three years [3]

Group 1: Financial Performance - The company reported original insurance premium income of RMB 538.055 billion, a year-on-year increase of 4.3% [1] - Underwriting profit decreased to RMB 5.713 billion, down 43.9% year-on-year [1] - Net profit increased to RMB 32.161 billion, reflecting a year-on-year growth of 30.9% [1] - Basic earnings per share were RMB 1.446, with a proposed final dividend of RMB 0.332 per share [1] Group 2: Strategic Initiatives - The company actively engaged in major national strategies and provided quality insurance services, covering insurance liabilities amounting to RMB 298.8 trillion [2] - Established various insurance initiatives, including the China Integrated Circuit Co-insurance Body and the Green Ship Insurance Community [2] - Launched the first comprehensive catastrophe insurance in Hebei and developed high-level insurance centers in Shanghai [2] Group 3: Social Responsibility and Innovation - The company participated in social security system construction, serving 840 million people through social insurance services [3] - Agricultural insurance provided risk coverage for 55.42 million farming households, amounting to RMB 2.1 trillion [3] - The company introduced innovative insurance products and enhanced digital transformation, including AI platform applications [3]

Financial Performance - The company's original insurance premium income for 2024 reached RMB 538.06 billion, representing a 4.3% increase from RMB 515.81 billion in 2023[9]. - Insurance service revenue increased by 6.1% to RMB 485.22 billion in 2024, up from RMB 457.20 billion in 2023[9]. - Underwriting profit decreased by 43.9% to RMB 57.13 billion in 2024, compared to RMB 101.89 billion in 2023[9]. - Net profit for 2024 was RMB 32.16 billion, reflecting a 30.9% increase from RMB 24.57 billion in 2023[9]. - The comprehensive cost ratio stood at 98.8%, with underwriting profit of CNY 5.713 billion and net profit of CNY 32.161 billion, resulting in a return on equity of 13.0%[21]. - The company reported a net profit of CNY 32.16 billion, marking a historical high, with a return on equity of 13.0%, up by 2.2 percentage points year-on-year[27]. - The company's pre-tax profit for 2024 was RMB 38.02 billion, a year-on-year increase of RMB 9.98 billion (or 35.6%)[61]. - Net profit rose to RMB 32.16 billion, up RMB 7.60 billion (or 30.9%) from RMB 24.57 billion in 2023, with basic earnings per share of RMB 1.446[63]. Assets and Liabilities - The company's total assets as of December 31, 2024, were RMB 778.24 billion, a 10.6% increase from RMB 703.62 billion in 2023[11]. - Total liabilities increased by 10.3% to RMB 517.62 billion in 2024, up from RMB 469.32 billion in 2023[11]. - The company's total investment assets amounted to RMB 676.51 billion, a 12.6% increase from the previous year[51]. - The company's cash and cash equivalents (excluding accrued interest) stood at RMB 19.36 billion as of December 31, 2024[66]. - The debt-to-asset ratio decreased to 63.9%, down 1.6 percentage points from 65.5% at the beginning of the year[67]. Dividends - The company proposed a final dividend of RMB 0.332 per share, with a total dividend payout including interim dividends amounting to RMB 0.54 per share[15]. - The company distributed an interim dividend of CNY 0.208 per share and proposed a final dividend of CNY 0.332 per share[21]. - The company plans to distribute a total dividend of RMB 0.54 per share for the fiscal year 2024, pending shareholder approval[79]. - The company plans to distribute a final dividend of HKD 0.332 per share for the year ending December 31, 2024, totaling approximately HKD 73.85 billion[131]. - The interim dividend of HKD 0.208 per share for the six months ending June 30, 2024, was approved by shareholders on October 29, 2024, amounting to about HKD 46.26 billion[131]. Market Presence and Share - The company achieved a market share of 31.8% in the insurance sector[15]. - The company achieved original insurance premium income of CNY 538.06 billion, a year-on-year increase of 4.3%, maintaining a market share of 31.8% in China's property insurance market[26]. - The total premium income from the agency sales channel was RMB 325,754 million, accounting for 60.5% of total premiums, with a 1.3% increase from 2023[34]. - The top ten regions contributed a total premium income of RMB 538,055 million, reflecting a 4.3% growth compared to RMB 515,807 million in 2023[35]. Claims and Insurance Services - The company processed over 180 million claims during the year, demonstrating its commitment to disaster response and customer service[23]. - Agricultural insurance provided risk protection for 55.42 million farming households, amounting to CNY 2.1 trillion in coverage[23]. - The company expanded its market presence by launching specialized products for small and micro enterprises, providing risk protection of CNY 45 billion to 97,000 businesses[29]. - The company processed over 180 million claims, a year-on-year increase of 32.0%[31]. - The company achieved an insurance service revenue of RMB 371.12 billion in liability insurance, representing a year-on-year growth of 12.8%[43]. Investment Performance - The total investment income for 2024 was RMB 34.94 billion, with an investment return rate of 5.5%[15]. - Total investment income reached RMB 349.37 billion, an increase of RMB 141.30 billion year-on-year, with a total investment return rate of 5.5%, up 2.0 percentage points[50]. - Fixed income investments reached RMB 407.03 billion, up RMB 57.28 billion (or 16.4%) from the beginning of the year, accounting for 60.2% of total investments[56]. - Equity investments totaled RMB 170.03 billion, an increase of RMB 11.61 billion (or 7.3%), with a decrease in proportion to 25.1%[56]. Risk Management and Compliance - The company has a strong focus on compliance and risk management, with a dedicated Chief Risk Officer overseeing these areas[115]. - The company is committed to strengthening internal controls and risk management in accordance with relevant laws and regulations[200]. - The company plans to enhance risk management through early identification and proactive measures, focusing on training and cultural development[123]. - The company maintains a good compliance status with no significant systemic compliance risks reported in 2024[128]. Innovation and Product Development - The company launched several innovative insurance products, including the "PICC China Earthquake Catastrophe Model" and "Cybersecurity Insurance Risk Pricing Model"[23]. - The company is committed to developing new products and technologies to meet market demands[111]. - The company is actively expanding its insurance coverage for high-tech and specialized enterprises, addressing diverse risk protection needs[45]. Corporate Governance - The supervisory board held 7 meetings this year, reviewing 53 proposals and reports, and focusing on risk management and financial oversight[193]. - The audit committee reviewed the audited performance of the company and its subsidiaries for the year[188]. - The supervisory board aims to enhance corporate governance capabilities and promote orderly reforms in 2025[199]. - The independent directors confirmed that the related party transactions were conducted under normal business terms and in the best interest of shareholders[184]. Employee Relations - The company paid a total of RMB 40.184 billion in employee compensation in 2024, which includes fixed salaries and performance bonuses[81]. - The company has a strong commitment to employee relations, which is considered a key factor for its success[129].