Investment Rating - The investment rating for China Pacific Insurance (02328.HK) is "Outperform the Market" [3][11]. Core Views - The report highlights that China Pacific Insurance achieved an insurance service revenue of 235.84 billion yuan in the first half of 2024, representing a year-on-year growth of 5.1%. However, the company's underwriting profit decreased by 5% to 9 billion yuan due to rising costs in non-auto insurance services. The net profit attributable to shareholders fell by 8.7% to 18.49 billion yuan, primarily due to pressure on investment income [1]. - The auto insurance segment showed a steady performance with a revenue of 145.16 billion yuan, up 5.3% year-on-year. The combined ratio for auto insurance was 96.4%, a slight improvement from the previous year. The report notes that the company is actively managing fees to benefit consumers [1]. - Non-auto insurance segments, including health, liability, and property insurance, also demonstrated good growth, with revenue increases of 7.5%, 8.4%, and 6.3%, respectively. However, the combined ratios for these segments increased due to structural adjustments and natural disasters [1]. - The report emphasizes the company's strategic shift towards optimizing asset allocation under the new IFRS 9 standards, increasing the proportion of FVOCI assets to 32.2% of total investment assets, while reducing FVTPL assets [1]. - The earnings forecast remains stable, with expected EPS of 1.28, 1.44, and 1.54 yuan per share for 2024 to 2026, corresponding to PB ratios of 0.92, 0.86, and 0.81 [1][2]. Financial Performance Summary - In 2024, the projected operating revenue is 504.4 billion yuan, reflecting a growth rate of 6.57% compared to 2023. The net profit attributable to shareholders is expected to be 28.42 billion yuan, a 15.59% increase from the previous year [2]. - The diluted EPS is forecasted to be 1.28 yuan in 2024, with a PE ratio of 8.02 and a PB ratio of 0.92 [2][9]. - The report provides a detailed financial outlook, indicating a steady growth trajectory in revenue and profitability over the next few years [2][9].
中国财险：保费增速稳健，投资拖累利润表现