Huachuang Securities·2025-11-18 04:03Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index exceeding the benchmark index by more than 5% in the next 3-6 months [22]. Core Insights - The insurance index rose by 2.62%, outperforming the market by 3.71 percentage points, with significant individual stock performance variations [1]. - As of Q3 2025, the total balance of insurance funds reached 37.5 trillion, with life insurance companies holding 33.73 trillion and property insurance companies holding 2.39 trillion [2]. - The solvency adequacy ratio for insurance companies was reported at 186.3% for comprehensive and 134.3% for core solvency, with property insurance companies showing a strong solvency position [2]. - The report highlights a shift in asset allocation, with a decrease in bond allocation and an increase in equity and fund holdings, suggesting a more aggressive investment strategy in the current market environment [5]. Summary by Sections Market Performance - The insurance sector showed a positive performance with a 2.62% increase in the index, outperforming the broader market [1]. - Individual stock performances varied, with notable increases in stocks like Taiping (+10.96%) and PICC (+3.16%) [1]. Fund Allocation - As of Q3 2025, the allocation of insurance funds was as follows: bonds 50.3%, stocks 10%, and funds 5.5%, with a slight increase in stock and fund allocations [4]. - Life insurance companies had a bond allocation of 51% and a stock allocation of 10.1%, while property insurance companies had a bond allocation of 40.6% and a stock allocation of 8.7% [4]. Company Performance - New China Life reported a cumulative premium income of 181.973 billion, a 17% year-on-year increase [2]. - China Pacific Life's cumulative premium income was 241.322 billion, reflecting a 9.9% increase, while its property insurance segment saw a modest 0.4% growth [2][3]. - ZhongAn Online reported a cumulative premium income of 29.822 billion [3]. Investment Recommendations - The report suggests a strong beta attribute for the sector in the short term, with a focus on asset performance as a key driver [5]. - Long-term recommendations include companies like China Pacific, China Life, and New China Life based on fundamental performance and valuation [10].