Investment Rating - The investment rating for China Pacific Insurance (02328.HK) is "Buy" (maintained) [1] Core Views - The report highlights that the significant narrowing of profit decline is commendable, with underwriting profitability in auto insurance improving against the trend [1] - The company reported a comprehensive cost ratio (COR) of 96.2% for 1H24, an increase of 0.4 percentage points year-on-year, with underwriting profit at 8.999 billion yuan, down 5.0% year-on-year [2][6] - The net profit for 1H24 was 18.491 billion yuan, a decrease of 8.7% year-on-year, attributed mainly to fluctuations in the equity market affecting investment income and high natural disaster occurrences impacting non-auto insurance profitability [2][6] Financial Performance Summary - Insurance Service Revenue: - 2022A: 424.355 billion yuan - 2023A: 457.203 billion yuan - 2024E: 494.002 billion yuan (growth of 8.0% year-on-year) [2][8] - Net Profit: - 2022A: 29.163 billion yuan - 2023A: 24.585 billion yuan - 2024E: 29.641 billion yuan (growth of 20.6% year-on-year) [2][8] - Return on Equity (ROE): - 2022A: 13.4% - 2023A: 10.8% - 2024E: 12.1% [2][8] - Comprehensive Cost Ratio (COR): - 1H24: 96.2% - 1H23: 95.8% [6][7] - Auto Insurance Performance: - COR for auto insurance improved to 96.4%, with a combined loss ratio of 71.2%, up 1.5 percentage points year-on-year [6][7] - Auto insurance service revenue reached 145.157 billion yuan, a year-on-year increase of 5.3% [6][7] - Non-Auto Insurance Performance: - COR for non-auto insurance rose to 95.8%, impacted by high natural disaster occurrences [6][7] - Investment Performance: - Total investment income decreased by 7.8% year-on-year, with a total investment return rate of 2.2% [2][6]
中国财险：2024年中报点评：利润降幅大幅收窄实属不易，车险承保盈利逆势改善