从严监管万能险，推动进一步回归保障本源

Investment Rating - The report maintains an "Accumulate" rating for the insurance sector [1] Core Viewpoints - The China Banking and Insurance Regulatory Commission (CBIRC) has issued new regulations on universal life insurance, effective May 1, 2025, which will enhance the focus on protection and risk management in the industry [4] - The new regulations allow for adjustable minimum guaranteed interest rates for universal life insurance, primarily affecting new business while having no impact on existing policies [4] - The report highlights a decline in new premiums for universal life insurance, with a 2.8% year-on-year decrease, amounting to 578.7 billion yuan, which represents 13.8% of total life insurance premiums [4] - The average settlement interest rate for universal life insurance in March 2025 was 2.79%, down 60 basis points from the end of 2023 and 5 basis points from the end of 2024 [4] - The report suggests that the market's savings demand remains strong, and with ongoing regulatory guidance, the cost of liabilities is expected to gradually decrease, alleviating pressure from interest rate spreads [4] - The insurance sector is currently undervalued, with PEV ratios ranging from 0.50 to 0.81 and PB ratios from 0.89 to 1.96, indicating a historical low valuation [4] Summary by Sections Regulatory Changes - The CBIRC has implemented stricter regulations on the design and management of universal life insurance products, including a prohibition on developing products with terms shorter than five years and encouraging the development of long-term universal life insurance [4] - New investment regulations for universal life insurance funds have been introduced, including concentration limits and caps on non-standard investments [4] Market Performance - The report notes that the insurance sector's valuation is at historical lows, with the insurance index expected to outperform the benchmark by more than 5% in the next six months [4] - The report provides a detailed valuation and profit forecast for major listed insurance companies, indicating potential growth in earnings per share (EPS) and book value per share (BVPS) over the next few years [15]