Zheng Quan Shi Bao Wang·2025-09-18 23:58Core Viewpoint - The report from Huatai Securities indicates that Contractual Service Margin (CSM) is a crucial component of life insurance contract liabilities, representing unrealized expected profits and acting as a profit reservoir. The annual release of CSM is vital for insurance service performance, which reflects the underwriting profit of life insurance alongside investment performance, forming a significant part of annual profits [1] Group 1: CSM and Insurance Service Performance - CSM has shown a slight decline across major listed insurance companies during the transition to new accounting standards from 2023 to mid-2025, despite a rebound in premium growth, which is unexpected [1] - The weak growth of CSM has negatively impacted insurance service performance, leading to pressure on the overall insurance service performance of listed companies during the same period [1] Group 2: Future Projections - Starting from 2024, investment performance is expected to improve significantly, contributing positively to net profits [1] - Driven by the growth of new business, Huatai Securities forecasts that the combined CSM of Chinese listed companies will grow by approximately 2% annually from 2025 to 2027, potentially reversing the current downward trend [1]