Changjiang Securities·2024-05-09 00:01Investment Rating - The report maintains a "Buy" rating for Xinhua Insurance, highlighting it as a key recommendation for high elasticity assets [5]. Core Insights - The main industry contradiction is concentrated on the asset side, with Xinhua Insurance exhibiting the highest asset-side elasticity within the industry. The sales expectations for savings-type products are favorable, and the improvement in agent productivity is leading the industry, suggesting that the liability side is unlikely to become a drag on performance [5]. Summary by Relevant Sections Financial Performance - Xinhua Insurance reported a net profit attributable to shareholders of 4.94 billion yuan for Q1 2024, a year-on-year decline of 28.6%. The primary reason for this decline was the downward pressure on investment income, with the total investment return rate decreasing by 0.6 percentage points year-on-year due to falling interest rates and market volatility [5]. - The company achieved premium income of 57.19 billion yuan, a year-on-year decrease of 11.7%. However, the first-year premium income for long-term insurance was 8.961 billion yuan, down 4.2% year-on-year, while the premium income for policies with a payment term of over ten years increased by 83.9% to 999 million yuan, indicating a potential for ongoing structural optimization [5]. Business Quality and Growth - The new business value (NBV) saw a significant year-on-year increase of 51%, reflecting a high growth rate within the industry. This improvement is attributed to the ongoing optimization of business quality driven by changes in pricing rates and unified reporting requirements [5]. - Individual insurance new policies maintained high growth, with premium income from individual insurance and bank insurance reaching 50.91 billion yuan and 3.82 billion yuan, respectively, representing year-on-year increases of 23% and a decline of 26.5%. The payment structure continues to improve, with a focus on transforming the agent workforce to enhance recruitment, training, and customer cultivation [5].