PICC(SH:601319) Huachuang Securities·2025-03-28 08:43Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [4][21]. Core Insights - In 2024, the company achieved a net profit attributable to shareholders of 42.9 billion yuan, representing a year-on-year increase of 88.2%. The property and casualty insurance premium income grew by 4.3% year-on-year, while the combined ratio (COR) increased by 0.9 percentage points to 98.5%. The life insurance new business value (NBV) reached 5 billion yuan, with a comparable year-on-year growth of 114.2% [1][9]. - The health insurance NBV was 6.5 billion yuan, with a comparable year-on-year growth of 143.6%. The total investment yield was 3.9%, down by 0.6 percentage points year-on-year, while the total investment return was 5.6%, up by 2.3 percentage points [1][9]. Summary by Sections Property and Casualty Insurance - The property and casualty insurance segment showed stable growth, with insurance service revenue increasing by 6.1% to 485.2 billion yuan. However, profitability slightly declined, with the COR rising by 0.9 percentage points to 98.5%, primarily due to increased liabilities and claims costs influenced by disasters and interest rates [2][3]. - In the auto insurance sector, service revenue grew by 4.5%, and the COR improved by 0.1 percentage points to 96.8%, benefiting from the "reporting and handling together" policy [2]. Life Insurance - The life insurance segment saw a significant increase in NBV, driven by improved value rates. The new business volume for long-term insurance decreased, but the proportion of regular premium business is expected to rise, contributing to value rate improvements [8][9]. - The health insurance segment's NBV growth was driven by both volume and price, with individual long-term insurance new business contributing significantly to the overall growth [8]. Financial Performance and Projections - The company is projected to achieve total revenue of 621.97 billion yuan in 2024, with a year-on-year growth rate of 12.5%. The net profit attributable to shareholders is expected to reach 44.66 billion yuan in 2025, reflecting a growth rate of 4.2% [9][10]. - The report adjusts the EPS forecast for 2025-2027 to 1.01, 1.08, and 1.20 yuan, respectively, indicating a positive outlook for the company's financial performance [8][9].