

Investment Rating - The industry investment rating is "Outperform the Market" [3] Core Viewpoints - The report highlights that Xinhua Insurance is expected to lead the industry in 2024 with a projected net profit of 26.2 billion yuan, representing a year-on-year increase of 201.1% [2] - The company has initiated mid-term dividends for the first time, proposing a cash dividend of 0.54 yuan (tax included) per share and a year-end cash dividend of 1.99 yuan (tax included), totaling 7.893 billion yuan for the year [2] - The life insurance segment focuses on premium income from regular payment business, with significant improvements in business structure, resulting in a doubling of NBVM and NBV [2] - The report suggests that the low interest rate environment will lead to increased competition for floating income products, making major insurance companies more competitive [2] Summary by Sections Financial Performance - In 2024, Xinhua's first-year premium for long-term insurance is projected to be 38.8 billion yuan, down 5.1% year-on-year, with significant growth in regular payment and long-term policies [2] - The company adjusted its economic assumptions, lowering the risk discount rate from 9.0% to 8.5% and the investment return rate for non-participating insurance from 4.5% to 4.0% [2] - The estimated EV for life insurance in 2024 is approximately 258.4 billion yuan, with NBVM at 14.6% (YoY +7.9 percentage points) and NBV at about 6.25 billion yuan (YoY +106.8%) [2] Distribution Channels - Individual insurance channels focus on value growth, with significant increases in new policies, NBVM, and NBV [2] - The number of individual insurance agents is 136,000, down 12.3% year-on-year, but productivity metrics show improvements [2] - The bancassurance channel emphasizes regular payments, with a notable increase in NBV [2] Investment Strategy - The report recommends increasing the allocation of equity assets to capture market opportunities, with total investment income expected to rise significantly [2] - In 2024, net and total investment income are projected to increase by 7.7% and 251.6% year-on-year, respectively [2] - The investment yield rates are projected at 3.2%, 5.8%, and 8.5%, with varying year-on-year changes [2]