HTSC·2025-11-07 11:35Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 76.00 and HKD 75.00 [5][7]. Core Insights - The company expresses confidence in the growth prospects of its life insurance and property insurance businesses, highlighting a strong increase in new business value (NBV) for life insurance and improving combined operating ratio (COR) for property insurance [2][3]. - The life insurance NBV is expected to continue growing, with a year-on-year increase of 46.2% in the first three quarters of 2025, driven by an improvement in NBV margin and a slight increase in new premium [2]. - The property insurance COR improved to 97.0%, a decrease of 0.8 percentage points year-on-year, attributed to fewer disasters this year and cost reduction efforts [3]. Summary by Sections Life Insurance - The life insurance NBV is projected to maintain growth, with agent and bancassurance channels showing year-on-year increases of 23.3% and 170.9%, respectively [2]. - The number of agents reached 354,000 by the end of Q3 2025, indicating stabilization in the agent channel [2]. Property Insurance - The property insurance COR is expected to improve further, with the implementation of a unified reporting system for non-auto insurance starting November 1, 2025, which may help reduce expense ratios [3]. - If the unified reporting system leads to profitability in previously loss-making segments, the COR could decrease by an estimated 0.2 percentage points based on 2024 data [3]. Investment Performance - The company has seen strong performance in equity investments, with an increase in the proportion of equity investments compared to the first half of 2025 [3]. - Investment income grew rapidly in Q3, contributing to a 45% year-on-year increase in net profit attributable to shareholders [3]. Risk Management - The company has managed to reduce impairment risks, with non-loan impairment losses decreasing from RMB 28 billion in the previous year to RMB 13 billion in the first half of this year [4]. - The proportion of real estate investments in insurance funds is only 3.3%, indicating a controlled exposure to potential impairment losses [4]. Healthcare Strategy - The company is actively building a healthcare and elderly care ecosystem, which has positively impacted the sales of life insurance policies [4]. - Nearly 63% of the company's 250 million individual customers benefit from services provided by this ecosystem, contributing significantly to new business value in life insurance [4].