PICC(601319) Changjiang Securities·2024-03-27 16:00Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - In 2023, the company faced slight pressure on underwriting performance due to frequent natural disasters, and profit declined due to market volatility. However, these short-term factors do not affect the company's solid fundamentals and profitability. The long-term concentration of the industry is expected to continue rising due to increased regulatory oversight [2][6] - The company achieved a net profit of 22.77 billion yuan in 2023, a year-on-year decrease of 10.2%. The comprehensive cost ratio for property insurance rose to 97.6%, an increase of 0.9 percentage points year-on-year. The new business value for life insurance reached 3.66 billion yuan, a year-on-year increase of 69.6% [6][7] Summary by Sections Financial Performance - The company reported a net profit of 22.77 billion yuan in 2023, down 10.2% year-on-year. The decline was primarily due to lower investment returns, with the total investment return rate dropping from 4.6% in 2022 to 3.3% in 2023. The underwriting profit decreased by 22.1% to 11.07 billion yuan [6][7] - The property insurance segment generated insurance service revenue of 457.2 billion yuan, a year-on-year increase of 7.7%. The comprehensive cost ratio increased to 97.6%, with the auto insurance cost ratio rising by 2.4 percentage points to 96.9% [6][7] Business Segments - The life and health insurance segments experienced rapid growth. The life insurance segment saw a premium income increase of 8.6% year-on-year, with the new business value growing by 69.6%. The health insurance segment also reported a premium increase of 10.2% and a new business value growth of 182.9% [6][7] Investment Performance - The company's total investment income was 44.12 billion yuan, a year-on-year decrease of 19.7%. The net investment income was 58.43 billion yuan, down 2.7%. The investment return rates also declined, with total investment return rate falling to 3.3% and net investment return rate to 4.5% [7]