Core Viewpoint - China Pacific Insurance reported a net profit of 24.46 billion yuan for the first half of 2025, representing a year-on-year increase of 32.3%, driven by strong investment returns and underwriting profits [1][2]. Financial Performance - The company achieved total investment income of 17.26 billion yuan, up 26.6% year-on-year, with an annualized total investment return rate of 2.6%, an increase of 0.2 percentage points [1][2]. - Underwriting profit significantly improved, reaching 13.02 billion yuan, a year-on-year growth of 44.6% [1]. - The comprehensive cost ratio stood at 94.8%, a decrease of 1.4 percentage points year-on-year, indicating strong underwriting profitability [1][2]. Market Position - The company maintained a market share of 33.5%, leading the industry, with original premium income of 323.28 billion yuan, a growth of 3.6% year-on-year [1][2]. - The insurance service income was 249.04 billion yuan, reflecting a year-on-year increase of 5.6% [1]. Underwriting Improvement - The underwriting profitability showed significant improvement, with the expense ratio decreasing by 3.1 percentage points to 23% [2]. - The loss ratio increased by 1.7 percentage points to 71.8%, but the overall comprehensive cost ratio remained strong [2]. - Key insurance segments such as agricultural insurance, auto insurance, and liability insurance continued to show profitability improvements [2]. Investment Strategy - The company increased its equity allocation, with total investment income reaching 17.26 billion yuan, reflecting a strong performance [2]. - The stock allocation rose from 1.9% at the beginning of the year to 9.2%, while fund allocation slightly decreased by 0.1% to 5.3% [2]. Solvency and Dividend Capacity - As of the mid-year report, the core solvency adequacy ratio was 213.2%, up 2.2 percentage points from 2024, significantly exceeding regulatory requirements [3]. - A high solvency ratio provides the company with greater operational autonomy and supports future dividend distributions [3]. Industry Outlook - The commercial model of the property insurance sector is not affected by interest rate spreads, and while natural disasters may temporarily pressure industry profits, the company's solid fundamentals and profitability remain intact [3]. - The expectation is for continued improvement in both asset and liability sides, with a positive outlook on valuation growth due to increasing industry concentration [3].
中国财险(2328HK)2025年中报点评：投资向好增配权益 负债承保盈利领先