Guotai Junan Securities·2025-06-01 11:01Investment Rating - The report rates the insurance industry as "Overweight" [1] Core Insights - The property insurance sector is expected to maintain stable profitability, with a notable improvement in the combined operating ratio (COR) and a steady performance in underwriting profits anticipated for 2025 [2] - In a low interest rate environment, there is a need for better asset-liability matching, with recommendations to invest in pure life insurance companies with greater flexibility and high-dividend property insurance companies [3] - The life insurance sector is projected to see stable growth in new business value (NBV) and an increase in equity allocation, despite ongoing challenges in liability costs [4] Summary by Sections Property Insurance - The first quarter of 2025 saw a slowdown in auto insurance premium growth, while non-auto demand continues to be released, leading to a significant improvement in COR [2] Life Insurance - The life insurance sector is expected to experience stable growth in NBV, with a focus on enhancing equity allocation in the asset side [4] - The report highlights that the low interest rate environment increases the pressure on asset-liability matching for listed insurance companies, particularly affecting the profitability of VFA policies [4] Investment Recommendations - The report suggests investing in pure life insurance companies with greater investment flexibility and high-dividend leading property insurance companies, such as New China Life, China Life, China Pacific Insurance, and Ping An Insurance [4]