PING AN OF CHINA(HK:02318) 2 1 Shi Ji Jing Ji Bao Dao·2025-11-10 06:24Core Viewpoint - The insurance market is undergoing a significant structural transformation, with dividend insurance emerging as a new focal point due to the decline in market interest rates and the shift to a "1 era" in life insurance preset rates [1][3]. Market Trends - The acceptance of dividend insurance has notably increased in recent years, driven by the continuous decline in market interest rates, with the ten-year government bond yield recently falling below 1.8% [3][4]. - In 2024, the premium income from dividend life insurance is projected to reach 765.874 billion yuan, reflecting a year-on-year growth of 4.12%, marking a 23.25 percentage point increase from the previous year [1][3]. Product Characteristics - Dividend insurance combines guaranteed benefits with the potential for variable dividends, making it an essential choice for customers in a low-interest-rate environment [3][4]. - The design of dividend insurance, which includes guaranteed benefits and non-guaranteed dividends, helps to mitigate the liability pressure on insurance companies and reduce long-term interest rate risk [4][5]. Regulatory Environment - The new regulatory guidelines issued in June 2025 aim to reshape the market structure by emphasizing the alignment of dividend levels with actual asset-liability management and investment returns [9][10]. - The implementation of these guidelines is expected to accelerate differentiation within the industry, prompting companies to adjust their business strategies and increase their focus on dividend insurance [9][10]. Investment Strategy - The investment capability of insurance companies is crucial for the competitiveness of dividend insurance, with companies like Ping An Life establishing a robust investment framework to achieve competitive returns [7]. - Ping An Life has developed a unique investment strategy that includes tactical, scenario, and strategic management to address various market conditions and enhance the dividend levels of its products [7]. Consumer Guidance - Consumers are advised to conduct self-assessments before purchasing dividend insurance, ensuring that their needs align with the product's characteristics, particularly regarding the long-term commitment required [8]. - It is essential for consumers to evaluate the insurance company's investment capabilities, historical dividend performance, and overall financial stability before making a decision [8].