Di Yi Cai Jing·2025-07-24 12:58Core 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].