KAIYUAN SECURITIES·2026-03-05 01:11Core Views - The report highlights the dual drivers of liabilities and assets in the insurance sector, with significant elasticity in equity performance [2][3] - The brokerage sector is expected to maintain its favorable conditions, with low valuations presenting strategic allocation opportunities [4][10] Insurance: Dual Drivers of Liabilities and Assets - The insurance sector is benefiting from the migration of household deposits, with a notable increase in new individual insurance policies at the beginning of 2026, supported by low baselines and the appeal of dividend insurance in a bullish market [6][20] - The insurance sector's total premium income is projected to grow by 9.1% year-on-year in 2025, with significant contributions from both individual and bank insurance channels [21][25] - The average price-to-earnings value (PEV) for listed insurance companies has dropped to 0.78 times, indicating a favorable risk-reward ratio for investors [6][69] Brokerage: Sustained Prosperity and Low Valuations - The brokerage sector is expected to see a 52.3% and 29.6% year-on-year increase in net profit for 2025 and 2026, respectively, with a projected weighted return on equity (ROE) of 10% in 2026 [6][10] - The report recommends focusing on brokerage firms with low valuations and high contributions from wealth management, such as Huatai Securities and GF Securities, as well as leading firms like Guotai Junan and CITIC Securities [6][10] - The market's active trading environment is anticipated to continue benefiting brokerage firms, with significant growth in retail brokerage and wealth management services [75][82]