EBSCN·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of China Pacific Insurance (601601.SH, 2601.HK) with current prices at 23.72 RMB and 13.70 HKD respectively [1]. Core Views - The transformation of China Pacific Insurance is showing positive results, with a focus on both scale and value. The company is advancing its "Long Voyage" transformation strategy, enhancing its core capabilities and channel development to achieve balanced growth and stable value increase [8]. Summary by Sections Financial Performance - In 2023, China Pacific Insurance reported operating revenue of 323.95 billion RMB, a decrease of 2.5% year-on-year. The net profit attributable to shareholders was 27.26 billion RMB, down 27.1% year-on-year. The operating profit attributable to shareholders was 35.52 billion RMB, a slight decrease of 0.4% year-on-year. The weighted average ROE was 11.4%, down 7.8 percentage points year-on-year. The new business value (NBV) reached 10.96 billion RMB, an increase of 19.1% year-on-year (30.8% on a comparable basis) [5][6]. Business Segments - Life Insurance: The company is seeing a steady improvement in its sales force, with a monthly average of 210,000 insurance agents, down 24.7% year-on-year. The average monthly first-year premium per core agent increased by 26.6% year-on-year to 44,000 RMB. The NBV for 2023 grew by 30.8% on a comparable basis, driven by both volume and price increases [6][7]. - Property Insurance: The company achieved a property insurance premium income of 188.34 billion RMB, up 11.4% year-on-year. The non-auto insurance premium increased by 19.3%, indicating a positive shift in business structure [8]. Investment Returns - The net investment yield was 4.0%, down 0.3 percentage points year-on-year, while the total investment return was 2.6%, down 1.5 percentage points year-on-year. The decline in investment returns contributed to the significant drop in net profit [5][8]. Future Outlook - The report anticipates that the company will maintain a good growth trend in NBV in 2024, supported by ongoing improvements in core human productivity and the value contribution from the bancassurance channel. The projected net profit for 2024 is expected to be 34.3 billion RMB, with a steady increase in subsequent years [8][9].