Investment Rating - The investment rating for China Pacific Insurance (2328.HK) is "Buy" [1] Core Views - The report highlights that despite fluctuations in underwriting profits, the resilience of the leading property and casualty insurer remains intact, with expectations for continued improvement in business quality [3][4] - The company achieved a gross premium income of CNY 515.807 billion in 2023, representing a year-on-year increase of 6.3%, and insurance service income of CNY 457.203 billion, up 7.7% year-on-year [3][4] - Underwriting profit was CNY 10.189 billion, down 29.1% year-on-year, while net profit was CNY 24.566 billion, a decrease of 15.6% year-on-year [3][4] Summary by Sections Underwriting Performance - The company reported stable insurance service income, with natural disasters causing fluctuations in underwriting profits. The business structure has been optimized, achieving a balanced growth between motor and non-motor insurance [4] - In 2023, motor insurance service income was CNY 282.117 billion, up 5.3% year-on-year, while non-motor insurance service income reached CNY 175.086 billion, up 11.9% year-on-year [4] - The combined ratio (COR) for the company was 97.6%, an increase of 1.2 percentage points year-on-year, primarily due to increased claims from natural disasters and the recovery of travel [4] Investment Performance - The total investment income for 2023 was CNY 20.807 billion, with an investment yield of 3.5%. The investment balance at the end of 2023 was CNY 600.711 billion, a growth of 4.3% from the beginning of the year [5] - The company has optimized its investment portfolio, increasing allocations to non-standard debt products and reducing fixed-term deposits. The proportion of equity investments in the total investment portfolio was 26.4%, up 2.0 percentage points year-on-year [5] Dividend Policy - The company proposed a dividend of CNY 0.489 per share, with a payout ratio exceeding 40%. This reflects the company's resilience as a market leader despite fluctuations in underwriting profits [4] Future Outlook - The report anticipates continued stable growth in insurance service income, supported by precise pricing and cost management strategies. The projected net profits for 2024-2026 are CNY 27.623 billion, CNY 28.057 billion, and CNY 30.237 billion, respectively [6][7]
承保利润波动不改财险龙头韧性，业务质态有望持续提升