Ge Long Hui·2025-08-30 03:43Core Viewpoint - The company reported a 12.2% year-on-year increase in net profit for the first half of 2025, driven by a significant reduction in taxes and a notable growth in new business value (NBV) by 22.9%, establishing advantages in its dividend transformation strategy [1][2]. Financial Performance - The company's net profit attributable to shareholders reached HKD 6.76 billion, benefiting from a tax reduction of HKD 6.5 billion, despite a decline in total investment income by HKD 15.5 billion [1]. - The net profit from various segments showed mixed results: life insurance +5.5%, domestic property insurance +84.9%, overseas property insurance -15.1%, reinsurance +74.8%, and asset management -24.1% [1]. - The company's equity attributable to ordinary shareholders increased by 4.4% to HKD 74.2 billion, while the group’s embedded value (EV) rose by 8.9% compared to the end of the previous year [1]. Life Insurance Segment - The NBV for life insurance grew by 22.9%, although the growth rate was lower than industry expectations due to the impact of the dividend insurance transformation [2]. - The margin improved by 3.1 percentage points to 21.6%, primarily due to a reduction in the preset interest rate, with new single premium income increasing by 4.2% [2]. - The individual insurance channel saw a 22.5% increase in NBV, while new single premium income decreased by 2.3% [2]. - The bancassurance channel reported a 23.9% increase in NBV, with new single premium income rising by 15.2% [2]. Property Insurance Segment - The combined ratio (COR) improved by 1.5 percentage points to 95.5%, indicating strong performance, with original premium income increasing by 3.1% [2]. - Breakdown of original premium income showed growth in various segments: motor insurance +0.5%, water insurance +2.1%, and non-water insurance +6.6% [2]. Investment Performance - The annualized net investment yield was 3.11%, down by 0.36 percentage points year-on-year, while total investment income decreased by 41.6% [3]. - The total investment yield fell by 2.59 percentage points to 2.68% year-on-year, with an unannualized comprehensive investment yield of 1.86%, down by 3.72 percentage points [3]. - As of the end of June, the group’s FVOCI stocks and unlisted equity amounted to HKD 52.531 billion, reflecting a 2.2% increase from the end of the previous year [3].