Core Viewpoint - The report from Pacific Securities maintains a "Buy" rating for China Pacific Insurance (02328), projecting significant revenue and profit growth from 2025 to 2027, driven by strong performance in underwriting and investment [1] Group 1: Revenue and Profit Performance - In the first half of 2025, the company achieved original insurance premium income of 323.28 billion yuan, a year-on-year increase of 3.6% [1] - The insurance service income reached 249.04 billion yuan, up 5.6% year-on-year, while the net profit attributable to shareholders was 24.45 billion yuan, reflecting a 32.3% increase [1] - The company plans to distribute an interim dividend of 0.24 yuan per share [1] Group 2: Premium Growth and Channel Optimization - The company maintained a market share of 33.5%, with original premium income growing by 3.6% [1] - The auto insurance premium income increased by 3.4% to 144.07 billion yuan, while non-auto insurance segments like health insurance and corporate property insurance saw growth rates of 7.9% and 5.7%, respectively [1] - Direct sales channels have become increasingly important, with premium income from this channel rising by 11.3%, accounting for 43.5% of total income [1] Group 3: Underwriting Profit and Cost Control - The company's combined ratio (COR) improved by 1.4 percentage points to 94.8%, marking the best mid-year performance in nearly a decade [2] - The improvement in COR was primarily driven by cost management, with the comprehensive expense ratio decreasing by 3.1 percentage points to 23.0% [2] - The underwriting profit from auto insurance reached 8.73 billion yuan, a year-on-year increase of 67.7% [2] Group 4: Investment Income and Asset Allocation - The total investment income for the first half of 2025 was 17.26 billion yuan, a 26.6% increase year-on-year, with an annualized total investment return of 2.6% [3] - The growth in investment income was attributed to effective management of equity investments and improved bond spread income [3] - As of the end of the reporting period, equity investments accounted for 26.1% of total investment assets, with stock allocations increasing to 65.32 billion yuan, representing 9.2% of the total [3]