Xin Lang Cai Jing·2025-04-30 10:35Core Insights - The company reported Q1 2025 results with insurance service revenue of 69.6 billion yuan (YoY +3.9%) and net profit attributable to shareholders of 9.6 billion yuan (YoY -18.1%), primarily impacted by rising short-term interest rates and fluctuations in the equity market [1] - The life insurance segment generated insurance service revenue of 21 billion yuan (YoY +0.6%), while the property insurance segment achieved 47.7 billion yuan (YoY +4.8%) [1] - The company experienced significant growth in bancassurance, with new business value (NBV) increasing by 39% on a comparable basis [1] Financial Performance - The company’s total premium income from life insurance reached 118.4 billion yuan, a YoY increase of 11.8%, with NBV rising by 11.3% to 5.8 billion yuan [1] - Individual insurance new policies declined by 15.2% due to factors such as reduced preset interest rates, although the proportion of participating insurance new policy premium income increased by 16.1 percentage points to 18.2% [1] - The total workforce remained stable with 188,000 agents at the end of the quarter (YoY +1.1%), and the average monthly new policy premium per core agent was 83,000 yuan [1] Property Insurance Insights - The property insurance segment reported original premium income of 63.1 billion yuan (YoY +1.0%), with a combined cost ratio improving to 97.4% (YoY -0.6 percentage points) [2] - The premium income from auto insurance rose by 1.3% to 26.8 billion yuan, while non-auto insurance premium income increased by 0.7% to 36.3 billion yuan [2] Investment Performance - The company’s investment assets totaled 2,810.2 billion yuan (up 2.8% from the end of the previous year), but the total investment return rate for Q1 was 1.0% (YoY -0.3 percentage points), significantly affected by rising short-term interest rates and equity market volatility [2] - Fair value changes in investments saw a dramatic decline in returns, down 89% YoY [2] Future Outlook - The company is expected to continue improving its fundamentals through ongoing reforms and the implementation of the "North Star Plan" in 2025 [2] - Projected earnings per share (EPS) for 2025-2027 are estimated at 5.65 yuan, 6.34 yuan, and 7.19 yuan respectively, maintaining a buy rating with a target price of 37.65 yuan based on a 0.6x 2025 P/EV [2]