Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (02328) with a target price based on the closing price of HKD 10.08 [1][4]. Core Insights - The report highlights that despite fluctuations in underwriting profits due to natural disasters, the company's leading position remains strong with ongoing optimization of its business structure [1][4]. - In 2023, the company achieved original premium income of CNY 515.807 billion, a year-on-year increase of 6.3%, and insurance service income of CNY 457.203 billion, up 7.7% year-on-year [3][4]. - The net profit attributable to shareholders for 2023 was CNY 24.585 billion, reflecting a decline of 15.7% year-on-year, while the first quarter of 2024 saw a net profit of CNY 5.871 billion, down 38.25% year-on-year [3][4]. Summary by Sections Financial Performance - In 2023, the company reported original premium income of CNY 515.807 billion, with a market share of 32.5% [3]. - The insurance service income for 2023 was CNY 457.203 billion, with a growth rate of 7.7% [5]. - The net profit for 2023 was CNY 24.585 billion, with a projected growth of 15.58% for 2024 [5]. Business Structure - The company has optimized its business structure, with non-auto insurance showing significant growth, achieving a service income of CNY 175.086 billion, up 11.9% year-on-year [3]. - The report indicates that the company is focusing on a balanced development across various insurance products, with notable growth in health and agricultural insurance [3][4]. Profitability and Cost Management - The underwriting profit for 2023 was CNY 10.189 billion, down 29.1% year-on-year, primarily due to increased claims from natural disasters [3]. - The comprehensive cost ratio for the company was 97.8%, with specific ratios for auto and non-auto insurance being 96.9% and 99.1%, respectively [3][4]. Investment Strategy - The total investment assets reached CNY 600.711 billion in 2023, with a total investment return of CNY 20.807 billion, reflecting a return rate of 3.5% [3]. - The company maintains a conservative investment approach, focusing on fixed-income products and optimizing its investment portfolio [3][4].
中国财险2023年年报&2024年一季报点评：自然灾害致承保利润波动，业务结构优化不改龙头本色