Changjiang Securities·2025-05-04 08:30Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The insurance industry faces challenges primarily on the asset side, with the company being a pure life insurance provider and having the highest equity allocation, leading to superior sensitivity and elasticity compared to the life insurance sector. It is recommended as a quality beta asset allocation. The liability side shows potential for better premium and value performance due to its base and growth space [2][12]. - As of April 29, the company's PEV valuation stands at 0.51 times, indicating a favorable cost-performance ratio [2][12]. Financial Performance - The company reported a net profit attributable to shareholders of 5.88 billion yuan for Q1 2025, reflecting a year-on-year growth of 19%. The new business value increased by 67.9% year-on-year [6][12]. - The total investment return rate for the company improved to 5.7% year-on-year [12]. - Premium income reached 73.22 billion yuan, marking a 28% year-on-year increase, with first-year premium income for long-term insurance rising by 117.3% [12]. Business Quality and Growth - The company has shown continuous improvement in business quality, with a stable surrender rate of 0.5% compared to the same period last year, and an increase in the 13 and 25-month continuation rates [12]. - Individual insurance and bancassurance new policies maintained high growth, with individual insurance first-year premium income increasing by 133.4% and bancassurance new policies growing by 94.5% [12]. - The company is actively promoting the transformation of its agent team and has initiated the "XIN Generation" project to enhance recruitment, training, and customer cultivation, aiming for stable and growing scale [12]. Market Positioning - The company is highlighted as having high elasticity, making it a recommended choice in the insurance sector, particularly given the current asset-side challenges in the industry [12].