Huachuang Securities·2024-04-29 17:01Investment Rating - The report maintains a "Recommend" rating for the company with a target price of 7.1 yuan [2][3]. Core Insights - The company reported a 7.7% year-on-year increase in insurance service revenue for Q1 2024, totaling 126.2 billion yuan, while the net profit attributable to shareholders decreased by 23.5% year-on-year to 9 billion yuan [2][3]. - The weighted average ROE was 3.7%, down 1.3 percentage points year-on-year [2]. - The combined ratio (COR) for property insurance reached 97.9%, an increase of 2.2 percentage points year-on-year, but still better than peers [3]. - The new business value (NBV) for life insurance saw a remarkable increase of 81.6% year-on-year, despite a decline in original premiums by 8.2% to 54.5 billion yuan [3]. Financial Performance Summary - For Q1 2024, the property insurance segment generated 113.8 billion yuan in insurance service revenue, reflecting a 5.9% year-on-year growth [3]. - The market share for property insurance reached 35.5%, with a growth rate of 3.8% in original premiums, placing it in the middle among major listed insurers [3]. - The life insurance segment's original premiums decreased, with first-year long-term insurance premiums down 21.4% to 24.3 billion yuan, but the new business value significantly increased due to improved pricing rates and cost reductions [3]. - Investment income was adversely affected by market fluctuations, leading to a 69.1% year-on-year decrease in investment income, totaling a reduction of 5.6 billion yuan [3]. Future Outlook - The company is expected to maintain its leadership in property insurance, supported by a 1/3 market share and improved risk management, driving underwriting profitability [3]. - Despite regulatory pressures and high base effects from the previous year impacting life insurance growth, the new business value rate is anticipated to continue compensating for the slowdown in new policy growth [3]. - The health insurance segment is projected to perform well due to increasing demand in healthcare and elderly care, with a 40.6% year-on-year increase in insurance service revenue [3].