Investment Rating - The report maintains a positive outlook on the insurance industry, recommending companies such as New China Life, China Life Insurance, China Property & Casualty, China Pacific Insurance, China Ping An, and China Reinsurance [4][64]. Core Insights - The insurance sector experienced a mixed performance in Q1 2025, with net profit growth of 1.4% year-on-year, falling short of expectations [4][6]. - The new business value (NBV) showed significant growth, with a range of 4.8% to 67.9% across listed insurers, indicating a continuation of growth trends [4][24]. - The investment performance was under pressure due to rising long-term interest rates and market volatility, leading to a year-on-year decline in total investment income of 11% [4][14]. Summary by Sections 1. Investment Performance - The net profit of listed insurers reached CNY 841.76 billion in Q1 2025, with a year-on-year increase of 1.4%, which was below the expected 7.9% [6][14]. - Investment income for the sector decreased by 11% year-on-year, totaling CNY 1,477.19 billion, with significant contributions from China Re and China Property & Casualty [14][62]. 2. Liability Side Performance - The NBV growth was robust, with new business premiums increasing by 2.9% year-on-year to CNY 2,468.44 billion, driven by various factors including product structure adjustments and commission changes [4][24]. - The insurance service performance improved significantly, with a year-on-year increase of 27.5% to CNY 802.49 billion, attributed to better claims performance and optimized service costs [4][11]. 3. Asset Side Performance - The yield rates varied among insurers, with New China Life achieving a total investment yield of 5.7% (up 1.1 percentage points year-on-year) [4][62]. - The proportion of FVOCI assets increased for most insurers, reflecting a strategic shift in asset allocation amidst market volatility [4][59]. 4. Investment Analysis - The report anticipates that the impact of rising long-term interest rates on profit performance will ease in Q2 2025, with expectations for marginal improvements in new business growth [4][64]. - The report highlights the potential for further policy support for leading insurers in diversifying asset allocations under the new regulatory framework [4][64].

Investment Rating - The report maintains an "Accumulate" rating for the non-bank financial industry [1] Core Views - The securities industry has seen significant profit growth, with a notable increase in trading volume and net profits for listed brokers in 2024 and Q1 2025 [4][15] - The insurance sector is experiencing a continuous increase in new business value (NBV) and a recovery in life insurance premiums as of March [4][29] - The multi-financial sector is transitioning into a stable phase, with trust assets showing growth but overall profits under pressure [4] Summary by Sections 1. Recent Performance of Non-Bank Financial Sub-Industries - All sub-industries in the non-bank financial sector underperformed compared to the CSI 300 index in the recent three trading days, with declines of 0.73% for securities, 1.06% for multi-financial, and 1.68% for insurance [9][10] 2. Non-Bank Financial Sub-Industry Insights 2.1 Securities - Trading volume has significantly increased, with April's average daily trading amount reaching 12,361 billion yuan, a 23% year-on-year increase [15] - Listed brokers reported a 7% increase in operating revenue and a 16% increase in net profit for 2024 [20] - In Q1 2025, operating revenue for listed brokers grew by 24% year-on-year, with net profit increasing by 80% [25] 2.2 Insurance - The insurance sector's net profit for Q1 2025 showed a 1.4% year-on-year increase, with significant growth in NBV for major companies [29] - Life insurance premiums showed signs of recovery, with a 0.2% year-on-year increase in original premiums for the first three months of 2025 [4] 2.3 Multi-Financial - The trust industry reported a total asset scale of 27 trillion yuan as of Q2 2024, a 24.5% year-on-year increase, although profits are under pressure [4] - The futures market saw a trading volume of 734 million contracts in March, with a 17.28% year-on-year increase [4] 3. Industry Ranking and Key Company Recommendations - The non-bank financial sector is currently valued at a low average, providing a safety margin [4] - The insurance industry is expected to benefit from economic recovery and rising interest rates, with a focus on health and pension insurance [4] - Recommended companies include China Life, China Pacific Insurance, China People’s Insurance, and leading securities firms like CITIC Securities and Huatai Securities [4][28]

Core Insights - China Life Insurance reported a strong performance in Q1 2025, with net profit attributable to shareholders reaching 28.8 billion yuan, a year-on-year increase of 39.5% [1] - The company's net assets at the end of Q1 2025 were 532.5 billion yuan, reflecting a quarter-on-quarter increase of 4.5% [1] - The new business value (NBV) grew by 4.8% year-on-year, despite a decline in new premium income [2] Financial Performance - The total premium income for Q1 2025 was 354.4 billion yuan, up 5% year-on-year, while new premium income was 107.4 billion yuan, down 4.5% [1][2] - The annualized net and total investment returns were 2.60% and 2.75%, respectively, both showing a decline compared to the previous year [1][2] - The decrease in insurance service fees by 32.8% year-on-year contributed to the net profit growth, alongside improved underwriting management and rising market interest rates [1] Product and Investment Strategy - The company optimized its product structure, with the proportion of floating income-type regular premium income reaching 51.7% in Q1 2025, which is expected to lower liability costs [2] - Despite market volatility impacting investment returns, the company maintained stable solvency ratios, with core and comprehensive solvency adequacy ratios at 146.1% and 199.3%, respectively [2] Investment Outlook - The company maintains a strong buy rating, with expectations for continued profit growth driven by a recovering equity market and dividend insurance sales [3] - Projected net profits for 2025-2027 are 107.4 billion yuan, 108.2 billion yuan, and 110.5 billion yuan, with year-on-year growth rates of 0.4%, 0.7%, and 2.1% respectively [3] - The projected NBV for the same period is 36.7 billion yuan, 38.9 billion yuan, and 40.9 billion yuan, with growth rates of 8.8%, 6.2%, and 4.9% respectively [3]

证券研究报告·行业月报·保险Ⅱ 保险Ⅱ行业月报 保险行业 3 月月报：寿险保费增速回暖，关 注后续预定利率调整落地情况 增持（维持） [Table_Tag] [Table_Summary] 投资要点 ◼ 负债端、资产端均有改善机会，低估值+低持仓，攻守兼备。1）我们认 为市场储蓄需求依然旺盛，同时在监管持续引导和险企主动性转型下， 负债成本有望逐步下降，利差损压力将有所缓解。2）近期十年期国债 收益率稳定在 1.66%左右，我们预计，未来伴随国内经济复苏，长端利 率若继续修复上行，则保险公司新增固收类投资收益率压力将有所缓 解。3）当前公募基金对保险股持仓仍处于低位，估值对负面因素反应 较为充分。2025 年 4 月 25 日保险板块估值 2025E 0.50-0.81 倍 PEV、 0.89-1.96 倍 PB，处于历史低位，行业维持"增持"评级。 ◼ 风险提示：长端利率趋势性下行；股市持续低迷；新单增长不及预期。 2025 年 04 月 27 日 证券分析师 孙婷 执业证书：S0600524120001 sunt@dwzq.com.cn 证券分析师 曹锟 执业证书：S0600524120004 caok@ ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights a dual growth in profit and value, with an increase in the dividend payout ratio [7] - The company's net profit for 2024 is projected to be 126.6 billion yuan, a year-on-year increase of 47.8% [7] - The report indicates a significant improvement in the operating profit of the property and casualty insurance business, while the asset management and technology sectors reported losses [7] Financial Performance Summary - Total revenue for 2023 was 913.79 billion yuan, with a projected increase to 1,028.93 billion yuan in 2024, reflecting a year-on-year growth of 12.6% [1] - The net profit attributable to shareholders for 2023 was 85.665 billion yuan, with a forecasted increase to 126.607 billion yuan in 2024, marking a 47.8% growth [1] - The company's earnings per share (EPS) is expected to rise from 4.70 yuan in 2023 to 6.95 yuan in 2024 [1] Business Segment Performance - The life insurance segment's new business value (NBV) increased by 28.8% year-on-year, with individual business new policies growing by 3.9% [7] - The property and casualty insurance segment achieved a turnaround with a profit of 5.46 billion yuan, compared to a loss of 2.08 billion yuan in 2023 [7] - The asset management segment reported a loss of 11.9 billion yuan, although the loss narrowed by 43% compared to the previous year [7] Investment Strategy - The company has adjusted its investment strategy, increasing allocations to bonds and stocks while reducing exposure to funds [7] - The total investment scale reached 5.7 trillion yuan by the end of 2024, a year-on-year increase of 21.4% [7] - The net investment yield is projected to be 3.8% in 2024, down from 4.2% in 2023, while total investment yield is expected to rise to 4.5% [7] Valuation Metrics - The current market capitalization corresponds to a 2025 estimated price-to-earnings value (PEV) of 0.65x, indicating that the stock is still undervalued [7] - The report projects a gradual increase in the company's intrinsic value per share, from 76.34 yuan in 2023 to 78.12 yuan in 2024 [1]