Changjiang Securities·2025-11-09 23:30Investment Rating - The report maintains a "Buy" rating for Xinhua Insurance [2][8]. Core Insights - Xinhua Insurance demonstrates high elasticity in its asset side and good growth on the liability side, making it a recommended investment in the insurance sector [2][6]. - The insurance industry's long-term logic is centered on improving profitability, while the short-term focus is on market beta [2]. - Xinhua Insurance's performance indicates strong elasticity and profit release capability when the equity market performs well, positioning it as a quality beta asset for investment [2]. Financial Performance - For the first three quarters, Xinhua Insurance achieved a net profit attributable to shareholders of 32.86 billion yuan, a year-on-year increase of 58.9% [6][13]. - The company reported a total premium income of 172.71 billion yuan, reflecting a year-on-year growth of 18.6%, with long-term insurance new single premium increasing by 59.8% [13]. - The annualized total investment return rate for the first three quarters was 8.6%, continuing to improve and ranking among the industry leaders [13]. Business Development - New business value (NBV) grew by 50.8% year-on-year, indicating a strong performance in business quality [13]. - The individual insurance channel saw a 49.2% increase in new single premium, while the bancassurance channel grew by 32.9% [13]. - The company is actively promoting channel integration and enhancing the professionalism of its sales team, leading to significant improvements in productivity [13]. Valuation - Xinhua Insurance is currently valued at 0.76 times its projected embedded value (PEV) for 2025, reinforcing its status as a recommended buy [2][8].