SINOLINK SECURITIES·2025-09-01 11:51Investment Rating - The report indicates a positive outlook for the insurance sector, recommending strong beta stocks and companies with good business quality, particularly focusing on leading life insurance companies and those with favorable dividend policies [4]. Core Insights - The combined net profit of five A-share listed insurance companies increased by 3.7% in H1 2025, with Q2 showing a year-on-year growth of 5.9%, primarily driven by improvements in the asset side [1][11]. - The growth rates of net profit for major companies in H1 2025 were as follows: Xinhua 33.5%, China Property & Casualty 32.3%, PICC 16.9%, Taiping 12.2%, Taikang 11.0%, Sunshine 7.8%, China Life 6.9%, Ping An -8.8%, and AIA -23.1% [1][11]. - The operating profit for Ping An and Taiping grew by 3.7% and 7.1% respectively, with all listed insurance companies achieving positive growth in operating profit [2][16]. Financial Performance - Net Profit: The net profit of five listed insurance companies increased by 3.7% in H1 2025, with Q2 showing a 5.9% increase [1][11]. - Contract Service Margin: The contract service margin showed positive growth across the board, with the highest growth rates seen in PICC (+12.0%) and Sunshine (+10.3%) [19]. - Net Assets: The growth rates of net assets varied, with PICC leading at +6.1%, while Sunshine and Xinhua experienced declines of -10.1% and -13.3% respectively [1][23]. Revenue Analysis - Insurance Service Performance: The insurance service performance showed overall growth, with notable increases in companies like Sunshine (+13.3%) and PICC (+1.7%) [25]. - Investment Performance: Investment performance varied significantly, with Ping An and Taiping showing declines, while companies like Xinhua and PICC reported positive investment results [26]. Life Insurance - New Business Value (NBV): The NBV growth rates for listed insurance companies in H1 2025 were led by PICC (+62.7%), Sunshine (+47.2%), and Ping An (+39.8%) [29][30]. - Margin Improvement: The margin for new business improved due to strong demand for savings products and a reduction in the preset interest rate [29]. Non-Life Insurance - Premium Growth: The non-auto insurance premium growth was mixed, with overall low growth in the property and casualty insurance sector [4]. - Combined Operating Ratio (COR): The COR improved year-on-year, with China Property & Casualty showing the best performance at 94.8% [4]. Investment Recommendations - The report recommends focusing on leading life insurance companies with good business quality, strong beta stocks like Xinhua Insurance, and companies with favorable dividend policies such as China Taiping [4].