Core Viewpoint - The scheduled interest rates for insurance products will be lowered starting in September, leading to increased premiums for critical illness insurance and reduced returns for annuity insurance. Customers are encouraged to purchase insurance before the end of August to lock in current rates [1][2]. Product Changes - Insurance companies are preparing to switch products, with several existing products exceeding the new maximum scheduled interest rates being discontinued by August 31. Some products, including critical illness and annuity insurance, will be discontinued as early as July 31 [1][2]. - Major insurance companies like China Life, Ping An Life, and Pacific Life have announced adjustments to the maximum scheduled interest rates for new insurance products, with ordinary insurance products set to a maximum of 2.0%, participating insurance products to 1.75%, and universal insurance products to 1.0% [2][3]. Market Dynamics - The adjustment of scheduled interest rates marks the first instance of a decrease since the establishment of a mechanism linking scheduled interest rates to market rates. The current research value for ordinary life insurance products is reported at 1.99%, down from 2.34% and 2.13% earlier this year [3][4]. - The decline in scheduled interest rates is seen as a necessary response to the downward trend in market interest rates, which will help reduce the cost of liabilities for insurance companies and alleviate pressure from interest rate differentials [4]. Focus on Participating Insurance - The asymmetric reduction in scheduled interest rates, with participating insurance rates only decreasing by 25 basis points compared to other products, is expected to enhance the competitiveness of participating insurance products, making them a focal point for insurance companies moving forward [4][5]. - The expectation is that participating insurance products, which offer both guaranteed and floating returns, will attract more customers, especially as traditional fixed-income products face competition from these offerings [5][6]. Performance of Participating Insurance - Over 50 insurance companies have disclosed their dividend realization rates for participating insurance products for 2024, with approximately 20% of these products achieving or exceeding a 100% realization rate, indicating an improvement compared to 2023 [6]. - Analysts suggest that participating insurance products will play a significant role in attracting deposits as traditional fixed deposits mature, positioning them as a key product for driving deposit migration [6].

Core Viewpoint - The recent adjustment of the predetermined interest rate for life insurance products to 1.99% marks the first downward revision since the implementation of the dynamic adjustment mechanism, which helps the industry mitigate long-term interest spread loss risks in a low-interest-rate environment [1][2][5]. Group 1: Interest Rate Adjustments - The China Insurance Industry Association announced a new predetermined interest rate of 1.99%, down from 2.34% and 2.13% in the previous two quarters, triggering the dynamic adjustment mechanism for the first time [2][3]. - Major insurers such as China Life, Ping An, and Taikang have announced that starting in September, the maximum predetermined interest rates for ordinary life insurance products will be reduced from 2.5% to 2.0%, and for participating insurance from 2.0% to 1.75% [1][3]. Group 2: Competitive Landscape - The gap between the maximum predetermined interest rates for participating insurance and ordinary insurance has narrowed to 25 basis points (BP), enhancing the competitive advantage of insurance products [3][5]. - The adjustment of the maximum predetermined interest rates for various insurance products reflects a clear shift towards floating yield products, indicating a strategic transformation by leading insurers [5]. Group 3: Market Impact and Product Transition - The adjustment is expected to stabilize market expectations and industry development, reducing the impact on insurers' daily operations, especially during the year-end sales peak [4]. - The transition to new products is anticipated to be swift, with a one-month timeframe for switching, which may lessen the short-term impact of product suspensions on premium growth compared to previous years [4].

商报讯（记者 叶晓珺）本周第一个交易日，保险板块AH股齐齐飞涨。A股方面，截至昨日上午收盘， 新华保险上涨4%，盘中股价创历史新高，最新市值突破2000亿元，中国太保、中国平安、中国人寿、 中国人保涨幅皆超2%；港股方面，香港保险板块大涨超4%，中国人寿大涨近6%，平安摩通五八购、平 安瑞银五八购双双实现单日翻倍，友邦保险放购证亦集体飙涨。 消息面上，7月25日，中国保险行业协会公布，当前普通型人身保险产品预定利率研究值为1.99%，较 此前下调14个基点。此次研究值调降触发人身险业预定利率动态调整机制，这是预定利率动态调整机制 建立以来的首次触发，保险产品预定利率最高值将迎来集中调降。分析人士认为，这对于保险股来说是 重大利好，有望提升新单盈利性和销售积极性。 新华保险创新高点燃板块，AH股齐飞 一则"预定利率下调"的消息，使保险板块大幅活跃，板块内的大市值龙头股成为资金首选。 昨日上午，A股保险板块走强，新华保险涨近5%，中国太保涨超4%，中国人寿涨超3%，中国人保、中 国平安涨超2%。 港股市场亦相当疯狂，涨幅居前的认购证全部来自保险，3只中国平安的认购证实现翻倍，保险板块大 涨超4%，个股方面，中国人 ...

Investment Rating - The insurance industry is rated as "Recommended" [1] Core Viewpoints - The adjustment of the preset interest rates for life insurance products by major insurance companies is expected to stabilize market expectations and improve liability costs [2][3] - The current preset interest rate for ordinary life insurance products is set at 1.99%, with the maximum preset interest rate for ordinary products reduced from 2.5% to 2.0%, for participating products from 2.0% to 1.75%, and for universal products from 1.5% to 1.0% [1][2] Summary by Sections Event Overview - On July 25, the China Insurance Industry Association held a meeting where experts discussed the preset interest rates for life insurance products, leading to significant adjustments by major insurers [1] - The preset interest rate for ordinary life insurance products has been above the research value for two consecutive quarters, triggering the need for adjustments [2] Analysis and Judgment - The rapid and substantial reduction in preset interest rates by leading insurers is seen as a response to market trends, with the 5-year LPR and fixed deposit rates having decreased significantly since 2023 [3] - The adjustment is expected to reduce the frequency of product switches and stabilize market expectations, allowing insurers to prepare for future business plans more effectively [3] Short-term and Long-term Impacts - In the short term, the impact of "炒停售" (speculative buying and selling) is expected to weaken, while in the long term, the adjustments are likely to benefit the transformation towards participating insurance products and reduce liability costs [4] - The lower preset interest rates for participating products compared to ordinary products may enhance their competitive advantage, promoting further transformation in the insurance sector [4] Profit Forecast and Valuation - Key companies in the insurance sector are projected to have strong earnings growth, with specific EPS and P/E ratios provided for major insurers such as China Ping An, China Life, and China Pacific Insurance [6]

Core Points - The life insurance industry has officially triggered the dynamic adjustment mechanism for predetermined interest rates for the first time since its establishment [4] - The latest research value for ordinary life insurance products' predetermined interest rate is 1.99%, a decrease of 14 basis points from the previous quarter, marking the third consecutive decline [1][2] - Major insurance companies, including China Life, Ping An Life, and Taikang Life, have responded by lowering the maximum predetermined interest rates for new products [5][6] Group 1: Adjustment Mechanism - The dynamic adjustment mechanism links predetermined interest rates to market rates, requiring timely adjustments when the maximum rates exceed the research values by 25 basis points for two consecutive quarters [2][4] - The current maximum predetermined interest rates for ordinary life insurance products have been set at 2.0%, down from 2.5% [5][6] - The adjustment has led to a significant narrowing of the pricing gap between ordinary and participating insurance products from 0.5% to 0.25% [5][7] Group 2: Market Reactions - The adjustment is expected to trigger a "buy before stop" trend, where consumers rush to purchase existing high-rate products before the new lower rates take effect [8][9] - Analysts predict a short-term increase in premium income due to this buying behavior, although the effectiveness of this strategy may diminish over time [9][10] - The anticipated peak in life insurance purchases is likely to occur before the launch of new products in early 2026 [8][9] Group 3: Impact on Consumers - The reduction in predetermined interest rates will lead to higher insurance premiums, particularly for traditional life insurance products [11][12] - The average premium increase is estimated to be around 20%, with children's policies experiencing the highest sensitivity to rate changes [12][13] - Despite the rate decrease, the fundamental function of insurance as a protection tool remains, and consumer purchasing behavior may not be significantly affected [10][13] Group 4: Industry Implications - The adjustment will lower the overall liability costs for insurance companies but may negatively impact product sales [13] - Companies are encouraged to optimize product structures and enhance sales capabilities to adapt to the changing market environment [13] - The current low-interest-rate environment necessitates a focus on flexible investment strategies and improved asset structures to maintain profitability [13]

Core Viewpoint - The non-bank financial sector in Hong Kong is experiencing significant growth, as evidenced by the strong performance of the CSI Hong Kong Stock Connect Non-Bank Financial Theme Index and its associated ETF, which have seen substantial increases in both value and trading volume [1][2]. Group 1: Market Performance - As of July 28, 2025, the CSI Hong Kong Stock Connect Non-Bank Financial Theme Index rose by 2.06%, with key stocks such as Guotai Junan International and China Life Insurance showing notable gains [1]. - The Hong Kong Stock Connect Non-Bank ETF achieved a 93.14% increase in net value over the past year, ranking in the top 1.06% among 2,938 index stock funds [2]. - The ETF's trading volume reached a record high of 1.95 billion yuan, with an average daily trading volume of 1.81 billion yuan over the past week [1][2]. Group 2: Fund Flows and Size - The Hong Kong Stock Connect Non-Bank ETF has seen continuous net inflows over the past 18 days, totaling 5.4 billion yuan, with a single-day peak inflow of 820 million yuan [1]. - The ETF's total size reached 10.753 billion yuan, marking a new high since its inception, with the number of shares also hitting a record of 6.477 billion [1]. Group 3: Index Composition and Changes - The top ten weighted stocks in the CSI Hong Kong Stock Connect Non-Bank Financial Theme Index account for 77.92% of the index, with major players including China Ping An and AIA Group [3]. - Recent adjustments to the life insurance industry's preset interest rates are expected to impact various insurance products, potentially leading to a shift in business structure towards participating insurance [3][4]. Group 4: Industry Outlook - The reduction in preset interest rates is anticipated to lower the cost of liabilities for life insurance companies, encouraging a transition towards participating insurance products, which are expected to become more attractive to customers [4]. - The non-bank financial sector, particularly insurance, is positioned to benefit from favorable market conditions, including stable long-term interest rates and a strong stock market [4].

Core Viewpoint - The article discusses the recent adjustments in the pricing interest rates for life insurance products, highlighting the implications for industry profitability, growth, and asset allocation [1][2][3][4]. Pricing Rate Adjustments - The predetermined interest rate for ordinary life insurance products is set to decrease from 2.5% to 2.0%, while the guaranteed interest rate for participating insurance will drop from 2% to 1.75%, and for universal insurance from 1.5% to 1.0% [2]. - Major companies like Ping An, China Life, and Taikang Life will switch to the new pricing rates after August 31 [2]. Impact on Industry Profitability - The reduction in predetermined interest rates is expected to lower the rigid repayment costs for new business, improving long-term interest rate risk for insurance companies [2]. - There are concerns that the short-term floating costs for participating insurance may increase, but the overall long-term profitability is anticipated to improve significantly [2]. Impact on Industry Growth - Short-term sales may experience a "stop-and-go" phenomenon due to channel dynamics, but the attractiveness of 2.5% priced products is diminishing [3]. - Long-term growth may face challenges for traditional insurance due to lower actual returns and liquidity, while participating insurance could see growth opportunities as floating returns may exceed those of traditional insurance [3]. Impact on Asset Allocation - Participating insurance has lower rigid cost liabilities and shorter effective durations compared to traditional insurance, allowing for more flexibility in asset allocation [3]. - Changes in asset allocation will likely occur gradually in response to shifts in liability structures [3]. Company-Specific Impacts - Companies that have already transitioned to participating insurance are expected to adapt more quickly to these changes, benefiting from established sales channels and lower liability bases [4]. - The proactive shift towards participating insurance reflects a long-term operational strategy that is crucial for creating sustained value in the life insurance sector [4].

Investment Rating - The report maintains an "Accumulate" rating for the non-bank financial sector [1] Core Insights - The scheduled interest rate for traditional insurance products has been adjusted down to 2.0%, while the maximum scheduled interest rate for dividend insurance products is set at 1.75% [2][4] - The scheduled interest rate research value has decreased by 14 basis points to 1.99%, indicating a downward trend in the insurance sector's interest rates [3] - The adjustment mechanism for scheduled interest rates is triggered when the maximum scheduled interest rate for insurance products exceeds the research value by more than 25 basis points for two consecutive quarters [4] Summary by Sections Event Overview - On July 25, the China Insurance Industry Association held a meeting to discuss the scheduled interest rates for life insurance products, concluding that the current research value is 1.99% [2] - Major insurance companies announced adjustments to their scheduled interest rates, with traditional insurance products set at a maximum of 2.0% and dividend insurance products at 1.75% [2] Rate Adjustments - The scheduled interest rates for traditional, dividend, and universal insurance products have been reduced to 2.0%, 1.75%, and 1.0% respectively [4] - The adjustment mechanism is activated due to the current scheduled interest rates being significantly higher than the research value, necessitating a reduction [4] Market Implications - The reduction in scheduled interest rates is expected to create a favorable environment for the development of dividend insurance products, as the previous higher rates had led to a significant increase in their market share [5] - The adjustment may cause short-term disruptions in new policy growth, but long-term benefits are anticipated as the proportion of floating income products increases [9] - The report suggests that companies with strong investment capabilities and higher dividend levels will gain a competitive advantage in the evolving market [5]

Core Viewpoint - The insurance industry is undergoing a significant adjustment in predetermined interest rates for various insurance products, with the maximum rates for ordinary life insurance set to decrease to 2%, dividend insurance to 1.75%, and universal insurance to 1.0%, reflecting a downward trend in market interest rates and regulatory requirements [1][10][13]. Summary by Sections Predetermined Interest Rate Adjustments - Major insurance companies have announced a reduction in the maximum predetermined interest rates for their products, with ordinary life insurance dropping to 2%, dividend insurance to 1.75%, and universal insurance to 1.0%, marking declines of 50, 25, and 50 basis points respectively [1][10][13]. - The current maximum predetermined interest rate for ordinary life insurance was previously 2.5%, which has now reached the threshold for adjustment due to being 25 basis points above the research value [5][12]. Market Trends and Regulatory Impact - The downward adjustment in predetermined interest rates is a response to the ongoing decline in long-term market interest rates, with the 5-year loan market quoted rate (LPR) at 3.5% and 10-year government bond yields around 1.7% [14]. - Regulatory changes, including the introduction of IFRS 17 and the second-generation solvency regulatory framework, have increased the transparency of product pricing and financial reporting, prompting insurance companies to adopt more prudent actuarial practices [14]. Sales Strategies and Market Dynamics - The reduction in predetermined interest rates is expected to impact the attractiveness of insurance products to consumers, potentially leading to increased sales challenges for insurance companies [19]. - Companies are shifting towards dividend insurance products, which have seen a smaller reduction in predetermined interest rates, making them more appealing in the current market environment [15][16]. - The industry is experiencing a transition towards dividend insurance as companies prepare for the new rate adjustments, with many already offering products with predetermined interest rates as low as 1.5% [18]. Consumer Behavior and Market Response - Historical patterns suggest that prior to rate adjustments, there is often a surge in sales driven by consumer perceptions of impending changes, although this trend may be less pronounced in the current environment due to increased consumer rationality and transparency in pricing [18]. - The overall sales environment for life insurance companies has been challenging, exacerbated by previous market demand being pulled forward due to speculative sales tactics [19].

Investment Rating - The investment rating for the industry is "Outperform the Market" (maintained) [1][4]. Core Viewpoints - The insurance industry is expected to experience short-term premium income growth, reduced interest spread risk, and improved investment return expectations due to multiple catalysts, including a rebound in market risk appetite [2][16]. - The recent adjustment of the predetermined interest rates for life insurance products is anticipated to initiate a new round of "buying before suspension," benefiting the rapid increase in premiums, particularly for dividend insurance [12][16]. - The dynamic adjustment of predetermined interest rates will significantly optimize the pricing rate regulatory mechanism for life insurance products, enhance the efficiency of rate adjustments, and reduce the rigid liability costs for insurance companies [2][16]. Summary by Sections Predetermined Interest Rate Adjustment - The current research value for the predetermined interest rate in the life insurance sector is 1.99%, leading to the first adjustment of the predetermined interest rates this year [2][7]. - The maximum predetermined interest rates for various insurance products have been adjusted: ordinary products to 2.0% (down 50 basis points), dividend insurance to 1.75% (down 25 basis points), and universal insurance to 1.0% (down 50 basis points) [8][11]. Market Conditions and Expectations - The long-end interest rates have recently rebounded, with the 30-year government bond yield increasing from 1.84% to 1.93%, which is expected to narrow the interest spread risk and support the valuation of insurance stocks [15][16]. - The anticipated further reduction in predetermined interest rates in the third quarter is expected to enhance the profitability of insurance companies, particularly in the context of improved equity market performance [15][16]. Competitive Landscape - Dividend insurance is expected to maintain strong competitiveness due to its "guaranteed + floating" yield characteristics, which provide a significant development potential in the current environment of declining returns on wealth management tools [13][16]. - The adjustment in predetermined interest rates is likely to lead to a sustained expansion of premium income, particularly for dividend insurance, as the market reacts to the new pricing dynamics [12][16].