Investment Rating - The investment rating for the insurance industry is "Positive" (maintained) [3][7]. Core Insights - The report discusses the release of the draft "Insurance Company Asset-Liability Management Measures" by the National Financial Regulatory Administration on December 19, 2025, aimed at enhancing asset-liability management capabilities and regulatory oversight in the insurance sector [3]. - The draft sets multiple regulatory and monitoring indicators for life and property insurance companies, including effective duration gap, comprehensive investment income coverage ratio, and reserved funds coverage ratio, which are expected to help control interest spread and duration gap risks [3][6]. - The report anticipates that listed insurance companies will find it relatively easy to meet the requirements outlined in the draft due to their established asset-liability management systems and the leniency in the calculation of the indicators [5][6]. Summary by Sections Regulatory Framework - The draft is linked to the upcoming implementation of new accounting standards in 2026, which will significantly change the asset classification methods for insurance companies [6]. - The draft includes specific regulatory requirements, such as an effective duration gap within ±5 years and a comprehensive investment income coverage ratio of no less than 100% for life insurance companies [6]. Industry Outlook - The report expresses optimism about the insurance industry, citing recent fluctuations in interest rates that may alleviate interest spread risks and the potential for good growth in new business value (NBV) for major listed companies in 2026 [7]. - Recommendations include companies like China Life, which has a strong individual insurance team, China Ping An, which is expected to see high growth in its bancassurance channel, and China Pacific Insurance, which benefits from policy support in both auto and non-auto insurance sectors [7].