Core Insights - The five major insurance companies in A-shares reported a strong performance in the first half of 2025, with a total net profit attributable to shareholders of 178.19 billion yuan, representing a year-on-year growth of 3.7% [1][2] Group 1: Net Profit Performance - Among the five companies, Xinhua Insurance showed the highest growth rate with a year-on-year increase of over 30%, while China Ping An experienced a decline of 8.8% [2] - The net profit figures for the five companies in the first half of 2025 are as follows: China Ping An (68.05 billion yuan), China Life (40.93 billion yuan), China Pacific Insurance (27.88 billion yuan), China Reinsurance (26.53 billion yuan), and Xinhua Insurance (14.80 billion yuan) [2] Group 2: New Business Value Growth - The new business value, which reflects the expected future earnings from newly sold policies, saw significant growth across the board, with all companies achieving over 20% increases [3] - Xinhua Insurance achieved a new business value of 6.18 billion yuan, up 58.4% year-on-year, while China Ping An's new business value grew by 39.8% [3] Group 3: Cost Ratio Improvement - The comprehensive cost ratios for the "old three" property insurance companies (China Re, Ping An Property, and China Pacific Property) generally decreased, leading to improved underwriting profits [5] - China Re's comprehensive cost ratio was 95.3%, the best level in nearly a decade, while Ping An Property's ratio was 95.2%, down 2.6 percentage points year-on-year [5] Group 4: Investment Income - As of June 30, 2025, the total investment assets of the five major insurance companies reached 19.73 trillion yuan, a year-on-year increase of 7.52% [7] - The total investment return rates showed divergence, with China Pacific and China Life experiencing declines of 0.4 and 0.3 percentage points, respectively, while Xinhua Insurance and China Re saw increases of 1.1 and 1 percentage points [7] Group 5: Market Outlook - Looking ahead, companies are optimistic about the A-share market and plan to focus on sectors such as technology innovation, consumer manufacturing, and advanced manufacturing for investment opportunities [8] - The emphasis will be on high-dividend stocks to provide stable cash flow and enhance long-term returns [8]

Core Viewpoint - China Life Insurance (601628)(02628) reported a 20% year-on-year increase in new business value (VNB) for the first half of the year, meeting expectations, primarily driven by a 179% increase in bank channel sales and a 9.5% increase in agent channel sales [1] Group 1 - The new business contract service margin (CSM) decreased by 31% year-on-year due to interest rate fluctuations, but the CSM balance increased by 1.6% year-on-year due to operational improvements [1] - The company declared an interim dividend of RMB 0.238 per share, representing a 19% year-on-year increase, which is considered a positive surprise [1] - The bank maintains its profit forecast and target price of HKD 26 for China Life, reiterating a "Buy" rating [1]

Core Insights - China Ping An's new business value (NBV) increased by 39.8% year-on-year in the first half of the year [1] - The new business contract service margin (CSM) turned to positive year-on-year growth during the same period [1] - The pre-dividend book value rose by 4.8% year-on-year [1] Financial Performance - The proportion of equity in asset allocation increased, contributing to a comprehensive return rate of 3.1%, up by 0.3 percentage points [1] - The comprehensive cost ratio for property insurance improved to 95.2%, a decrease of 2.6 percentage points [1] - Operating profit from asset management and financial empowerment businesses accelerated, marking another highlight [1] Analyst Rating - The firm reiterated a "Buy" rating for China Ping An, maintaining a target price of HKD 69 [1]

Core Insights - The insurance companies listed in Shanghai and Hong Kong are shifting focus from premium growth to the contribution of new business value (NBV) in their performance reports [2][3] - Major insurance firms reported double-digit growth in new business value for the first half of the year, indicating strong market acceptance [2][3] Group 1: New Business Value Growth - China Ping An's new business value reached 22.335 billion yuan, a year-on-year increase of approximately 39.8% [2] - China Life's new business value was 28.546 billion yuan, up 20.3% year-on-year [2] - China Pacific Insurance reported a new business value of 9.544 billion yuan, reflecting a 32.3% increase [2] - China People's Insurance saw a significant rise in new business value to 4.978 billion yuan, up 71.7% [2] - New China Life achieved a new business value of 6.181 billion yuan, with a year-on-year growth of 22.8% [2] - AIA Group's new business value was 2.838 billion USD, marking a 14% increase [2] Group 2: Market Performance and Investor Sentiment - Despite limited growth in net profit for most insurance groups, insurance stocks have performed exceptionally well, with some doubling in value [3] - The strong performance of new business value has garnered market recognition, but the sustainability of this growth throughout the year remains a concern [3][9] - The shift from focusing on premium scale to new business value is seen as a necessary evolution in the domestic life insurance market [4] Group 3: Strategic Initiatives and Future Outlook - China Ping An emphasizes the importance of new business value, attributing its growth to multi-channel strategies, product-service integration, and AI empowerment [5] - AIA Group's growth is driven by proven business models, digital transformation, and structural improvements in new markets [5] - China Pacific Insurance's new business value growth is supported by enhanced management and a focus on dividend insurance sales [7] - New China Life is optimizing its business structure and improving operational efficiency to sustain new business value growth [8] Group 4: Challenges and Considerations - The insurance industry is transitioning from a focus on premium figures to the underlying value of new business, which reflects future profitability [10] - The ability of insurance companies to maintain double-digit growth in new business value and improve value rates in the second half of the year is under scrutiny [11]

Core Viewpoint - The insurance companies listed in Hong Kong and Shanghai are shifting focus from premium growth to the contribution of new business value (NBV), which has shown significant double-digit growth in the first half of the year [1][2][3]. Group 1: New Business Value Growth - Major listed insurance companies reported substantial growth in new business value, with China Ping An's NBV reaching 22.335 billion yuan, up 39.8% year-on-year; China Life's NBV at 28.546 billion yuan, up 20.3%; China Pacific's NBV at 9.544 billion yuan, up 32.3%; and China Insurance's NBV at 4.978 billion yuan, up 71.7% [1]. - AIA Group reported a new business value of 2.838 billion USD, reflecting a 14% increase year-on-year [1]. - The growth in NBV is seen as a key indicator of the companies' performance and has garnered market recognition, although the sustainability of this growth throughout the year remains a concern [2][8]. Group 2: Market Performance and Investor Sentiment - Despite limited growth in net profit for most insurance groups, insurance stocks have performed exceptionally well, with some doubling in value since the market downturn in September [2][8]. - The market is increasingly valuing new business value as a more reliable indicator of a company's operational capability and future profitability, moving away from traditional metrics like premium size [9][10]. Group 3: Strategic Initiatives and Future Outlook - Companies are focusing on enhancing their business models, including digital transformation and AI integration, to drive new business value growth [4][5]. - China Pacific emphasized strengthening its management and sales capabilities, particularly in dividend insurance, which saw a significant increase in new premium income [5]. - New business value rates are critical for assessing the underlying value of insurance companies, and the ability to maintain double-digit growth in NBV will be crucial for future stock performance [10].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][7] Core Views - The significant improvement in investment spread has driven net profit growth beyond expectations [7] - The company reported a substantial year-on-year increase in net profit of 33.5% for 1H25, with a quarterly growth rate of 45.2% in 2Q25 [3][4] - The company's total investment income increased by 43.3% year-on-year, with a notable rise in equity investments [4][6] Summary by Sections Financial Performance - The company achieved a net profit attributable to shareholders of 14.799 billion yuan in 1H25, with a year-on-year growth of 33.5% [3] - The net asset attributable to shareholders at the end of the period was 83.407 billion yuan, a decrease of 13.3% compared to the beginning of the year but an increase of 4.5% from 1Q25 [3][4] - The annualized net investment return was 3.0%, with total and comprehensive investment returns at 5.9% and 6.3%, respectively [4] Business Growth - The company reported a 5.7% increase in insurance service revenue year-on-year for 1H25, with a 3.1% growth in insurance service performance [4] - New business value (NBV) reached 6.182 billion yuan, reflecting a year-on-year growth of 58.4% [6] - The company’s individual insurance and bancassurance new business saw year-on-year growth rates of 65.2% and 150.2%, respectively [5] Valuation and Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 20.178 billion, 21.404 billion, and 23.379 billion yuan, with year-on-year growth rates of -23.1%, 6.1%, and 9.2% respectively [2][7] - The price-to-earnings (P/E) ratio is projected to be 10.0 for 2025, while the price-to-book (P/B) ratio is expected to be 1.9 [2][7] - The company’s static corresponding PEV at the end of 1H25 is 0.72X, indicating potential for further valuation recovery [6]

Core Viewpoint - China Life's (02628) performance in the first half of the year is generally in line with expectations, with a net profit increase of 6.9% year-on-year, although there was a 31.2% decline in the second quarter, which was slightly better than expected [1] Financial Performance - The pre-tax profit decreased by 11.5% year-on-year, which aligns with expectations [1] - The new business value (NBV) on a comparable basis increased by 20.3%, while the actual disclosed NBV fell by 11.5% [1] - The comparable NBV for the next insurance segment rose by 9.5%, indicating better performance than anticipated [1] Business Strategy - The company is actively promoting the transformation towards dividend insurance, with over 50% of the first-year premium income from individual insurance coming from dividend insurance as of the end of June [1] Contractual Service Margin (CSM) - The CSM increased by 1.6% to 754.7 billion RMB from the beginning of the year, primarily driven by new business inflows and interest rate changes [1] - However, the new business CSM decreased by 31% year-on-year to 26.2 billion RMB, attributed to the impact of spot interest rate assessments under the Variable Fee Approach (VFA) and declining interest rates [1] Target Price Adjustment - The target price for H-shares has been raised by 24.1% to 24.33 HKD, considering the improvement in liquidity in the Hong Kong stock market, which may help narrow the company's discount [1]

该行指，国寿上半年可比口径/实际披露口径新业务价值分别同比升20.3%及跌11.5%，可比口径下个险 NBV同比升9.5%，新业务价值好于该行预期。公司积极推动分红险转型，截至6月末分红险保费占个险 首年期交保费比重超50%。上半年国寿CSM(合同服务边际)较年初升1.6%至7,547亿人民币，主要来自于 新业务流入和利率变化;但新业务创造CSM同比跌31%至262亿人民币，该行预计公司VFA(在IFRS17会 计准则下的"变动收费法"(Variable Fee Approach))合同受到即期利率评估影响、以及利率下行导致新业 务CSM同比下滑。 中金发布研报称，中国人寿（601628）(02628)上半年业绩基本符合预期，纯利同比增6.9%，对应次季 同比跌31.2%，略优于预期;税前利润同比降11.5%，符合预期。中金维持国寿今明两年盈测，续予"跑赢 行业"评级。考虑到港股流动性改善有助于公司折价收窄，将H股目标价上调24.1%至24.33港元。 ...

Core Viewpoint - China Life Insurance reported its 1H25 performance, meeting expectations with a net profit of 26.53 billion, reflecting a year-on-year increase of 16.9% [1] Group 1: Financial Performance - The company's net profit attributable to shareholders reached 26.53 billion, up 16.9% year-on-year, driven primarily by the property and health insurance segments [1] - The combined ratio (COR) improved to 95.3%, a decrease of 1.5 percentage points year-on-year, with underwriting profit at 11.7 billion, up 53.5% year-on-year [1][2] - The company declared a dividend per share (DPS) of 0.075 yuan, an increase of 19% year-on-year, indicating a focus on shareholder returns [1] Group 2: Insurance Segment Performance - The property insurance segment's net profit was 25.05 billion, up 39% year-on-year, while life and health insurance profits were 6.86 billion and 5.13 billion, showing a year-on-year change of -30.9% and +49.6% respectively [1] - The COR for the property insurance segment improved due to reduced disaster risks and effective cost management, with total premiums reaching 323.3 billion, a 3.6% increase year-on-year [2] Group 3: New Business Value (NBV) Growth - The NBV for life and health insurance was 4.98 billion and 3.84 billion, reflecting year-on-year growth of 71.7% and 51% respectively, with significant contributions from both channels [3] - The NBV margin (NBVM) improved, supporting the growth of NBV, driven by ongoing demand for health insurance and effective sales strategies [3] Group 4: Investment Performance - The annualized net and total investment returns were 3.7% and 5.1%, with total investment returns benefiting from increased allocations to government bonds and market appreciation [3] - The stock investment scale reached 94.6 billion, a 57% increase from the beginning of the year, with a balanced equity allocation [3] Group 5: Investment Outlook - The company maintains a strong buy rating, anticipating accelerated profit growth in 2H25 due to further improvements in COR and investment returns [4] - Projected net profits for 2025-2027 are 50.2 billion, 54.9 billion, and 59.2 billion, with year-on-year growth rates of 17.2%, 9.3%, and 7.8% respectively [4]

Core Viewpoint - China Pacific Insurance (CPIC) reported strong performance in 1H25, with significant growth in new business value and improved underwriting profitability, indicating a positive outlook for the company's long-term earnings and dividend growth potential [1][4]. Financial Performance - New Business Value (NBV) increased by 32.2% year-on-year on a comparable basis and by 5.6% on a disclosed basis [1]. - Group net profit rose by 11% to 27.9 billion yuan, while operating profit attributable to shareholders increased by 7.1% to 19.9 billion yuan, exceeding expectations primarily due to better-than-expected combined ratio in property insurance [1][3]. Development Trends - The company experienced a 22.8% year-on-year increase in NBV, with a comparable growth rate of 29.5% after adjusting for assumptions [2]. - The number of insurance agents grew to 186,000, a 1.6% increase year-on-year, with 39,000 new agents added, representing a 19.8% growth [2]. - The new premium income from bancassurance reached 8.84 billion yuan, up 58.6% year-on-year, with the total number of bancassurance outlets increasing by 28.9% to 13,000 [2]. Underwriting and Investment Performance - Overall premium income for property insurance increased by 0.9%, with auto insurance up by 2.8% and non-auto insurance down by 0.8% [3]. - The combined ratio (CoR) improved by 0.8 percentage points to 96.3%, with auto insurance CoR at 95.3% and non-auto insurance at 94.8% [3]. - Investment performance remained stable, with non-annualized net investment yield at 1.7%, total investment yield at 2.3%, and comprehensive investment yield at 2.4% [3]. Long-term Outlook - The company is expected to achieve steady growth in earnings and dividends due to its improving long-term operational capabilities in the context of high-quality industry development [4]. - The current trading multiples for CPIC are at 0.6x and 0.5x for A/H shares based on 2025 estimated P/EV, with target prices set at 52.60 yuan and 45.20 HKD, indicating potential upside of 31.7% and 26.3% respectively [5].