Core Viewpoint - Zhongtai Securities maintains a "buy" rating for China Pacific Insurance (02328), with unchanged profit forecasts, expecting net profit for 2025-2027 to be CNY 33.09 billion, CNY 35.39 billion, and CNY 36.94 billion, representing year-on-year growth rates of 2.8%, 6.9%, and 4.4% respectively, indicating potential for further valuation release due to high dividend yield and improving market conditions [1] Group 1 - The company is actively promoting the "reporting and operation integration" for non-auto insurance, having initiated key work ahead of schedule, including a meeting in Xiamen with ten insurance companies to discuss industry self-regulation and explore integration in key areas [2] - The company has participated in the development of demonstration products for new insurance and liability insurance, and has fully launched non-auto insurance cost governance [2] - In the first half of 2025, the non-auto insurance combined ratio (COR) was impacted by major disasters, decreasing by 0.1 percentage points year-on-year to 95.7%, with most non-auto insurance types achieving underwriting profitability except for health insurance and liability insurance [2] Group 2 - The company updated its guidance for commercial non-auto insurance underwriting profitability, adjusting the target for auto insurance COR from around 97% to below 96%, and aiming for a target of below 99% for commercial non-auto insurance [3] - Assuming the implementation of the new regulations, the company expects to reduce the combined expense ratio for non-auto insurance business by 1 percentage point, potentially increasing underwriting profit by approximately CNY 1.35 billion, accounting for about 3.6% of pre-tax profit [3] - Continuous attention is required on the sustainability of improvements in underwriting performance based on subsequent premium rates and actual expense ratios [3]