Minsheng Securities·2025-04-27 04:47Investment Rating - The report maintains a "Recommended" rating for the industry, indicating an expected relative increase of over 15% compared to the benchmark index within the next 12 months [6]. Core Insights - The recent regulatory changes are expected to shift the focus of universal life insurance from scale expansion to value cultivation, which will help mitigate risks associated with interest rate differentials and ease asset-liability matching pressures [7]. - Short-term fluctuations in premium income for universal life insurance are anticipated due to the implementation of the new regulations, but long-term benefits for product sales are expected, particularly for leading insurers with stable operational and investment histories [7]. Summary by Sections Product Management - The new regulations clarify the definition of universal life insurance and standardize product design, which is expected to enhance consumer protection and reduce misleading product features [3]. - Only whole life insurance, endowment insurance, and annuity insurance can be designed as universal life insurance, with a minimum coverage period of 5 years [3]. - The maximum basic insurance premium per policyholder has been increased from 10,000 to 20,000 yuan, with a death benefit not less than 20 times the basic premium for individuals aged 18-60 [3]. - Insurers are allowed to adjust guaranteed interest rates, which will help alleviate potential "interest rate differential" pressures [3]. Account Management - The regulations emphasize transparency in earnings and prohibit artificially inflated returns, ensuring that investment returns are accurately reflected [4]. - Insurers must establish clear rules for surplus distribution and special reserves, which will contribute to more equitable profit sharing and smoother settlement rates for universal life insurance [4]. Asset-Liability Management - The new rules impose strict limits on aggressive investments and related party transactions, which may lead to a reduction in the number of smaller universal life insurance accounts due to increased investment allocation difficulties [5]. - Enhanced liquidity management and investment planning are expected to lead to more stable long-term investment returns for universal life insurance accounts [5]. Sales Management - The regulations introduce tiered training for sales personnel and a negative list for sales practices, aiming to reduce sales misguidance and ensure compliance for new products by May 1, 2025 [5]. - Existing products must be rectified by April 30, 2026, to align with the new regulations [5]. Investment Recommendations - The report suggests focusing on leading insurers such as China Pacific Insurance, Sunshine Insurance, New China Life, China Ping An, and China Life, as they are expected to benefit more from the regulatory changes [7].