Investment Rating - The investment rating for the company is "Outperform the Market" [3][9]. Core Views - The company is experiencing asset valuation recovery and profit improvement, with a 5.5% year-on-year increase in insurance service revenue for the first three quarters of 2024, totaling 364.31 billion yuan [1]. - The underwriting profitability remains healthy, with a reported underwriting profit of 6.44 billion yuan and a combined ratio (COR) of 98.2% [1]. - The net profit for the first half of the year reached 26.75 billion yuan, reflecting a 38.0% year-on-year increase, driven by a recovery in the capital market and stable interest rates [1]. - The auto insurance segment shows steady growth, with a 4.7% increase in insurance service revenue, amounting to 219.51 billion yuan [1]. - Non-auto insurance business has also maintained good growth, achieving 144.80 billion yuan in insurance service revenue, but faced underwriting losses of 0.68 billion yuan due to frequent natural disasters [1]. - The company is enhancing its asset allocation strategy, increasing the proportion of FVOCI equity assets by 10.8% year-on-year, leading to a significant improvement in investment income [1]. Financial Forecasts - The projected operating revenue for 2024 is 504.48 billion yuan, with a growth rate of 6.59% [2][7]. - The expected net profit for 2024 is 29.52 billion yuan, representing a 20.08% increase compared to 2023 [2][7]. - The diluted earnings per share (EPS) for 2024 is forecasted to be 1.33 yuan [2][7]. - The price-to-book (PB) ratio is expected to be 1.04 for 2024, decreasing to 0.90 by 2026 [2][7].
中国财险：资产估值修复，利润同比改善