Guoxin Securities·2025-08-14 11:35Investment Rating - The report maintains an "Outperform the Market" rating for the insurance sector [2][5]. Core Insights - The report highlights that China Ping An's acquisition of China Pacific Insurance shares is primarily a financial investment, indicating a shift in insurance stocks towards high dividend asset allocation similar to bank stocks. This move is supported by improvements in the bancassurance channel and the strong beta characteristics of the industry [3][4]. - The report emphasizes the potential for valuation recovery in the insurance sector, with China Pacific Insurance's H shares having increased by 42.4% since 2025, and a current P/EV ratio of 0.73, suggesting that the long-term value is not fully reflected in current valuations [4]. - The report notes that the recent adjustments in preset interest rates will stimulate premium growth, particularly through "stop-selling" strategies, which are expected to enhance the liability side of the insurance companies [10][14]. Summary by Sections Investment Strategy - The report suggests that the insurance sector is experiencing multiple catalysts, including short-term premium income growth, narrowing interest spread risks, and improved investment return expectations. The clear reduction in preset interest rates is expected to support the continuous expansion of "stop-selling" premiums [3][14]. Liability Side Analysis - The report discusses the impact of the recent adjustments in preset interest rates, which will lower rates for various insurance products, thereby activating premium growth through the bancassurance channel. The new rates are as follows: ordinary products from 2.5% to 2.0%, participating insurance from 2.0% to 1.75%, and universal insurance from 1.5% to 1.0% [7][10]. Asset Side Analysis - The report indicates that long-term bond yields have started to recover, with the 30-year government bond yield rising from 1.84% to 1.98%. This improvement in fixed-income asset returns is expected to reduce interest spread risks and enhance the valuation of life insurance stocks [11][14].