Guoxin Securities·2024-03-28 16:00Investment Rating - The investment rating for China Pacific Insurance (601601.SH) is "Buy" [1][3]. Core Views - The report highlights significant improvements in value indicators, with insurance service revenue reaching 266.17 billion yuan in 2023, a year-on-year increase of 6.6%. The group's embedded value realized was 529.49 billion yuan, up 1.9% year-on-year. Despite a decline in net profit attributable to shareholders of 27.26 billion yuan, down 27.1% year-on-year, this decrease was less than the industry average [1][5]. - The "Long Voyage" Phase II transformation strategy is being steadily advanced, focusing on enhancing operational efficiency through better integration of internal and external sales forces. The individual insurance channel achieved premium income of 252.82 billion yuan, a 3.2% increase year-on-year, with improvements in policy retention rates [1][5]. - The property and casualty insurance segment continues to lead the industry with a premium income of 188.34 billion yuan, growing 11.4% year-on-year. The proportion of premiums from new energy vehicles increased from 8.3% to 12.0% [1][5]. Summary by Sections Financial Performance - In 2023, the company reported total investment income of 190.63 billion yuan, a decrease of 12.47% year-on-year, and an increase in asset impairment losses to 53 billion yuan, up 147.7% year-on-year. The total investment return rate and net investment return rate were 2.6% and 4.0%, respectively, both down year-on-year [1][5][12]. - The forecast for earnings per share (EPS) for 2024, 2025, and 2026 is 3.28, 3.52, and 3.65 yuan per share, respectively, with corresponding price-to-embedded value (P/EV) ratios of 0.39, 0.36, and 0.34 [1][4][12]. Asset Management - The company's asset management scale reached 2,922.31 billion yuan in 2023, a 10.1% increase year-on-year. The asset allocation strategy has been optimized to increase the proportion of bond assets while adjusting equity asset allocations [1][5][12].