Zheng Quan Shi Bao·2025-09-19 00:20Core Viewpoint - The report from Huatai Securities indicates that the Contractual Service Margin (CSM) is a crucial component of life insurance contract liabilities, representing unrealized expected profits and acting as a profit reservoir. The release of CSM annually is vital for insurance service performance, which reflects the underwriting profit of life insurance alongside investment performance, forming the main part of annual profits [1] Group 1: CSM and Insurance Service Performance - CSM has shown significant growth discrepancies among major listed insurance companies during the transition to new accounting standards from 2023 to mid-2025, with a slight overall decline in CSM despite a rebound in premium growth, which is unexpected [1] - The lack of growth in CSM has negatively impacted insurance service performance, leading to pressure on the combined 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]