Soochow Securities·2025-12-27 07:19Investment Rating - The report maintains an "Overweight" rating for the insurance industry [1] Core Views - The insurance industry showed improvement in premium growth for both life and non-life insurance in November, with a positive outlook for the "New Year" performance in life insurance [1] - The report highlights a narrowing decline in life insurance premiums, with a year-to-date original premium of CNY 44,206 billion, up 9.2% year-on-year, and a scale premium of CNY 49,969 billion, up 8.4% year-on-year [6] - The health insurance sector also saw a year-on-year premium increase of 3.3% in November, indicating a long-term growth potential in the market [6] - Non-life insurance premiums increased by 2.3% year-on-year in November, with improvements in both auto and non-auto insurance segments [6] - The report anticipates continued strong market demand and an optimistic outlook for new premium growth and new business value (NBV) growth, supported by favorable product pricing compared to bank deposits [6] Summary by Sections Life Insurance - November saw a single-month original premium of CNY 1,548 billion, with a year-on-year decline of 2.4%, which is an improvement from the previous month [6] - The report expects strong demand for insurance products in 2026, with a continued increase in the proportion of participating insurance products, which will help optimize liability costs [6] Health Insurance - Health insurance premiums for the year-to-date increased by 2.4%, with November showing a 3.3% year-on-year growth, reflecting a positive trend [6] - The report suggests that regulatory policies may further stimulate growth in long-term health insurance products [6] Non-Life Insurance - Non-life insurance premiums reached CNY 16,157 billion year-to-date, up 3.9% year-on-year, with November premiums at CNY 1,248 billion, marking a 2.3% increase [6] - The report notes that the growth in auto insurance premiums has turned positive, with a year-to-date increase of 3.1% [6] - The report anticipates that the implementation of "reporting and operation integration" in non-auto insurance may create short-term pressure on premium growth but will improve overall profitability in the long term [6] Market Outlook - The report indicates that both liability and asset sides are improving, with significant upside potential in valuations [6] - The current valuation of the insurance sector is at historical lows, with expected PEV ratios between 0.67-1.0 and PB ratios between 1.31-2.17 [6]