KAIYUAN SECURITIES·2025-09-22 07:42Investment Rating - Investment rating: Positive (maintained) [1] Core Viewpoints - The insurance industry is experiencing overall growth in both performance and embedded value (EV), driven primarily by property insurance and investment services [15][34] - The performance of listed insurance companies shows a divergence, with property insurance and equity investment returns being the main contributors to profit growth [15][34] - Future outlook indicates a continuation of high-quality growth in liabilities and an ongoing trend of increasing equity asset allocation [8][34] Summary by Sections Overall Situation - The overall performance of listed insurance companies improved in 2025H1, with a notable contribution from property insurance and investment returns [15][34] - The net profit of listed insurance companies for 2025H1 was as follows: China Ping An at 68 billion, China Life at 40.9 billion, China Pacific at 27.9 billion, China Re at 26.5 billion, and New China Life at 14.8 billion, showing a year-on-year increase for all except Ping An [15][17] Business Situation - Life insurance channels and product transformations are progressing, with significant growth in the bancassurance channel while the individual insurance channel faces challenges [6][34] - Property insurance companies have improved their combined operating ratio (COR), leading to substantial increases in underwriting profits [6][34] - Investment assets of insurance companies increased year-on-year, with a shift towards equity assets due to market conditions [6][34] Future Outlook - Regulatory bodies are continuously optimizing the insurance industry's development through various measures, which is expected to benefit leading insurance companies [8][34] - The demand for retirement products is strong, and the transformation of participating insurance products is anticipated to enhance the attractiveness of these offerings [8][34] Investment Recommendations - The report recommends focusing on leading insurance companies with strong liability-side advantages and undervalued valuations, specifically China Pacific and China Ping An [8][34]