Zhong Guo Jing Ji Wang·2025-08-29 01:58Core Viewpoint - China People's Insurance Group Co., Ltd. (China P&C) has experienced a significant rise in stock prices due to multiple factors, including the high-quality development of China's economy, improved industry environment, and strong fundamentals of the company [2] Group 1: Factors Driving Stock Price Increase - The high-quality development of China's economy presents historic opportunities for the insurance industry, supported by government policies that signal further growth potential [2] - The improving development environment enhances the stability and sustainability of the insurance sector, with regulatory bodies guiding the industry back to its core functions [2] - China P&C's fundamentals are continuously improving, with enhanced value creation capabilities, stable underwriting profits, and strong investment performance [2] Group 2: Measures to Mitigate Performance Volatility - The implementation of new accounting standards has increased quarterly performance volatility, prompting China P&C to adopt various measures to minimize this impact [3][4] - From the underwriting side, the company is focusing on risk pricing and enhancing service quality while optimizing product structures in the life insurance segment [3] - On the investment side, the company is committed to long-term, value-oriented investments, diversifying its equity assets, and optimizing asset allocation strategies [4] - Strengthening asset-liability management is crucial, with a focus on duration matching and detailed account management to ensure stable performance [4] Group 3: Future Dividend Policy Considerations - China P&C is considering the impact of new and old accounting standards on its future dividend policy, aiming for a balance between the two [5][6] - The volatility in net profits due to new standards necessitates careful consideration of dividend distribution to maintain subsidiary capital strength [6] - The company aims to reserve sufficient funds to enhance underwriting capacity and long-term sustainability, ensuring stable dividend growth for shareholders [6]