Mei Ri Jing Ji Xin Wen·2025-10-14 09:41Core Viewpoint - The insurance sector in A-shares has shown strong performance, with New China Life Insurance leading the gains, reflecting a positive market sentiment and potential for valuation and earnings growth in the sector [1][2]. Group 1: Stock Performance - On October 14, the A-share insurance sector rose significantly, with New China Life Insurance's stock price increasing by 5.34% to close at 65.5 yuan per share, resulting in a market capitalization of 204.33 billion yuan [1]. - Other major insurers also saw stock price increases, with China Pacific Insurance up 3.09% and China Life Insurance up 2.07% [1]. - The positive performance in A-shares also influenced Hong Kong-listed insurance stocks, with New China Life Insurance (HK) rising by 2.75% [1]. Group 2: Earnings Forecast - New China Life Insurance projected a net profit increase of 45% to 65% for the first three quarters of 2025, estimating a profit range of 29.986 billion to 34.122 billion yuan [2]. - The company expects its net profit excluding non-recurring items to grow by 40% to 60%, with an estimated range of 28.998 billion to 33.141 billion yuan [2]. - The growth is attributed to a focus on enhancing the value and quality of insurance business, optimizing asset allocation, and responding to the call for insurance capital to enter the market [2][3]. Group 3: Investment Strategy - The insurance sector has been encouraged to increase equity investments, with policies aiming for large state-owned insurance companies to allocate 30% of new premiums to A-shares starting in 2025 [4]. - As of mid-2023, the total investment balance of insurance companies exceeded 36 trillion yuan, with a notable increase in stock investments [4]. - The shift towards equities is driven by the need to improve investment yields in a low-interest-rate environment, with a focus on balancing risk and return through diversified investment strategies [5][6].