Changjiang Securities·2024-03-17 16:00Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The report highlights that China Life Insurance maintains a high dividend payout ratio, aligning well with high dividend strategies, making it an attractive investment in the current market environment [2][4] - The company benefits from a unique operating model characterized by "negative funding costs + investment," which is expected to enhance its market position and performance growth compared to the industry [4][11] - The report emphasizes the strong competitive advantage of China Life Insurance in the property insurance sector, driven by scale effects and a robust underwriting profit [19][25] Summary by Sections Property Insurance - The property insurance industry exhibits significant scale effects, with China Life Insurance leading the market with a 37.9% market share in 2023, significantly ahead of its competitors [19][31] - The company maintains a high solvency ratio, providing it with greater operational flexibility and ensuring its ability to continue paying dividends [50][44] - The integration of risk reduction services and technology enhances underwriting profitability, with proactive risk management strategies being implemented [44][19] Life Insurance - The life insurance segment is undergoing a transformation, with expectations for premium and value growth to improve due to changes in agent scale and productivity [56][59] - The company is focusing on health insurance in response to national strategies, anticipating growth in health insurance premiums [66][73] - The report notes that the proportion of regular premium payments is expected to rise, improving the overall premium structure [60][70] Investment Outlook - The report anticipates a dual benefit from both liabilities and assets, with stable premium growth in property insurance and improved underwriting profits [73] - The company is expected to maintain steady growth in auto insurance while increasing its market share in non-auto insurance segments [73][40] - The life insurance sector is projected to benefit from a recovering industry cycle, with improved premium and value growth expected [73][66]