Xin Lang Cai Jing·2025-11-10 00:29Core Viewpoint - Xinhua Insurance reported a significant increase in net profit and new business value for the first three quarters of 2025, driven by strong investment performance and business growth [1][2]. Financial Performance - The company achieved a net profit attributable to shareholders of 32.86 billion yuan, representing a year-on-year growth of 58.9% [1][2]. - The annualized total investment return rate reached 8.6%, continuing to improve from the mid-year report and ranking among the industry leaders [2]. - The comprehensive investment return rate was 6.7%, also at a high level, although it includes unrealized gains from allocated debt instruments, making direct comparisons with other listed insurance companies challenging [2]. New Business Value - New business value increased by 50.8% year-on-year, indicating strong growth in business quality [1][2]. - Premium income for the company was 172.71 billion yuan, up 18.6% year-on-year, with long-term insurance new single premium increasing by 59.8% [2]. - The policy retention rate improved, with a decrease in the surrender rate to 1.2%, down 0.1 percentage points from the previous year [2]. Channel Performance - Individual insurance and bancassurance channels showed strong performance, with individual insurance new single premium increasing by 49.2% year-on-year and bancassurance new single premium growing by 32.9% [3]. - The company is actively promoting channel integration and the strategic implementation of the "XIN Generation" plan, enhancing the professionalism and productivity of its sales team [3]. - The average performance of the sales team improved, with productivity per person increasing by 50% year-on-year, contributing to significant income growth [3]. Investment Recommendation - Xinhua Insurance is recommended as a high-elasticity investment option within the insurance sector, benefiting from improved profitability and strong performance in equity markets [3][4]. - The current PEV valuation for Xinhua Insurance is 0.76 times, maintaining a buy recommendation [4].