Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance relative to the market [5]. Core Views - The company's net profit for 1H24 was 18.491 billion RMB, showing a year-on-year decline of 8.7%, but the decline narrowed significantly compared to 1Q24 [4][5]. - The insurance service revenue for 1H24 increased by 5.1% year-on-year to 235.841 billion RMB, with a combined ratio (COR) improvement of 0.4 percentage points to 96.2% [4]. - The company is focusing on cost reduction and efficiency improvements, which have shown significant results, particularly in the auto insurance segment [4]. Summary by Sections Financial Performance - 1H24 net profit was 18.491 billion RMB, down 8.7% year-on-year, with a notable recovery in 2Q24, where net profit increased by 17.4% to 12.620 billion RMB [3][4]. - The company plans to distribute an interim dividend of 0.208 RMB per share, with a payout ratio of 25.02% [3]. Insurance Service Revenue - Insurance service revenue for 2023 is projected at 457.203 billion RMB, with a year-on-year growth rate of 7.7% [3]. - The company reported a 5.3% increase in auto insurance revenue to 145.157 billion RMB in 1H24, with a combined ratio of 96.4% [4]. Cost Management - The combined ratio for 1H24 improved to 96.2%, with a decrease in the expense ratio to 26.1% [4]. - The company has effectively managed costs, with a 1.8 percentage point reduction in the expense ratio despite pressures from claims [4]. Investment Strategy - The company has adjusted its asset allocation, increasing its holdings in government bonds and reducing exposure to funds and corporate bonds [5]. - The total investment assets as of June increased by 6.8% year-on-year to 641.834 billion RMB [5].
中国财险：COR优于预期，净利润降幅环比显著收窄