Huachuang Securities·2024-04-05 16:00Investment Rating - The report maintains a "Recommended" investment rating for the company with a target price of 7.10 CNY [2][8]. Core Views - The company achieved its target for property insurance combined ratio (COR) and reported an exceptional growth in new business value (NBV) for life insurance [2][8]. - In 2023, the company generated insurance service revenue of 503.9 billion CNY, a year-on-year increase of 7.5%, while the net profit attributable to shareholders was 22.773 billion CNY, down 10.2% year-on-year [2][8]. - The life insurance segment saw a remarkable NBV of 6.49 billion CNY, up 105.4% year-on-year, with the embedded value reaching 123.965 billion CNY, an increase of 5.6% from the previous year [2][8]. Summary by Sections Property Insurance - The company maintained a high growth rate in property insurance premiums, achieving a combined ratio of 97.6%, which met the initial target for the year [2][8]. - The property insurance service revenue reached 457.2 billion CNY, a 7.7% increase year-on-year, primarily driven by auto insurance, health insurance, and agricultural insurance [2][8]. - The original premium growth rate was 6.3%, placing the company in a leading position in the market with a 32.5% market share [2][8]. Auto Insurance - Auto insurance revenue was 282.2 billion CNY, reflecting a 5.3% year-on-year increase, accounting for 61.7% of total revenue [2][8]. - The combined ratio for auto insurance was 96.9%, slightly improved from the initial target, outperforming competitors [2][8]. - The loss ratio increased to 70.4% due to rising claims from natural disasters and increased accident rates [2][8]. Non-Auto Insurance - Non-auto insurance revenue totaled 175.1 billion CNY, up 11.9% year-on-year, with a growing share of 38.3% [2][8]. - Various non-auto insurance segments, including health and agricultural insurance, showed significant growth, with health insurance growing by 23.8% year-on-year [2][8]. Life Insurance - The life insurance segment reported an NBV of 3.664 billion CNY, a 69.6% increase year-on-year, with a new business value rate improvement [2][8]. - The health insurance segment achieved an NBV of 2.826 billion CNY, up 182.9% year-on-year, indicating strong market demand [2][8]. - The company is focusing on enhancing the quality of its sales force, with a notable increase in the average new policy premium per agent [2][8]. Investment Performance - The company reported a net investment return of 4.5% and a total investment return of 3.3%, both showing a decline compared to the previous year [2][8]. - The total investment assets reached 1.43 trillion CNY, reflecting an 11.4% year-on-year increase despite market volatility [2][8]. - Adjustments in investment return assumptions were made to align with market conditions, enhancing the company's asset-liability management [2][8].