Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - Despite natural disasters in the first and third quarters affecting underwriting performance, these short-term factors do not impact the company's solid fundamentals and profitability. The long-term concentration in the industry is expected to continue rising due to enhanced market competition regulation, leading to improvements in both asset and liability sides and upward valuation potential [2][12]. - The company achieved a net profit of 42.87 billion yuan in 2024, representing a year-on-year increase of 88.2%. The comprehensive cost ratio for property insurance was 98.5%, up 0.9 percentage points year-on-year. The new business value for life insurance grew by 114.2% year-on-year, while health insurance new business value increased by 143.6% [6][12]. Summary by Sections Financial Performance - The company reported a total investment income of 82.16 billion yuan in 2024, an increase of 86.2% year-on-year, with a total investment return rate of 5.6%, up 2.3 percentage points year-on-year [12]. - The comprehensive cost ratio for auto insurance improved slightly to 96.8%, with original premium income of 297.39 billion yuan, a year-on-year growth of 4.1% [12]. - Non-auto insurance premium growth slowed, with agricultural insurance premiums declining by 5.7% year-on-year due to selection rhythm impacts, and the cost ratio for non-auto insurance rising to 97.3%, an increase of 3.3 percentage points year-on-year [12]. Business Segments - The life insurance segment saw a significant increase in new business value, with a year-on-year growth of 114.2%. The first-year premium income for life and health insurance grew by 1.6% and 50.2% respectively [12]. - Adjustments in economic assumptions for the value system did not hinder the high growth in new business value, with the new business value rate for life and health insurance increasing by 3.5 and 9.8 percentage points year-on-year respectively [12]. Market Outlook - The company is optimistic about the future potential for asset and liability improvements, with expectations of continued upward valuation space in the context of increasing market concentration and regulatory enhancements [2][12].

2025 年 3 月 29 日 公司研究 投资提振业绩，NBV 同比高增 ——中国人保（601319.SH）、中国人民保险集团（1339.HK）2024 年年报点评 A 股：买入（维持） 当前价：6.83 元人民币 分析师：王一峰 执业证书编号：S0930519050002 010-57378038 wangyf@ebscn.com 分析师：黄怡婷 执业证书编号：S0930524070003 010-57378023 huangyiting@ebscn.com | 市场数据（A 股） | | | --- | --- | | 总股本(亿股) | 442.24 | | 总市值(亿元)： | 3020.50 | | 一年最低/最高(元)： | 5.03/8.18 | | 近 3 月换手率： | 18.1% | | 收益表现 | | | | | --- | --- | --- | --- | | % | 1M | 3M | 1Y | | 相对 | -0.3 | -8.5 | 27.3 | | 绝对 | -1.4 | -10.2 | 38.5 | 资料来源：Wind 相关研报 H 股：买入（维持） 当前价：4.07 港 ...

Core Viewpoint - China Life Insurance reported a significant increase in net profit and maintained a strong dividend capacity, indicating robust financial health and growth potential in the insurance sector [1][4]. Financial Performance - The group’s net profit attributable to shareholders rose by 88.8% year-on-year to 42.2 billion RMB, aligning with expectations [1]. - The net assets attributable to shareholders increased by 11% to 268.9 billion RMB [1]. - The dividend per share grew by 14.7% year-on-year to 0.18 RMB, slightly below expectations [1][4]. Development Trends - The comprehensive cost ratio (CoR) increased due to significant disaster impacts, with a forecast for recovery in underwriting profitability by 2025 [2]. - In 2024, the property and casualty insurance premium income rose by 6.1% to 485.2 billion RMB, while the CoR increased by 1.0 percentage point to 98.8% [2]. - The net loss from major disasters exceeded the average of the past five years, impacting non-auto insurance profitability, although auto insurance CoR improved by 0.1 percentage point to 96.8% [2]. Life and Health Insurance Performance - Adjusted assumptions for life and health insurance still showed substantial growth, with life insurance contract service margin (CSM) increasing by 22% and health insurance CSM by 19% [3]. - The new business value (NBV) for life insurance, after assumption adjustments, remained 37% higher year-on-year at 5 billion RMB, while health insurance NBV was 131% higher at 6.5 billion RMB [3]. - The internal value of life and health insurance increased by 18% and 34% respectively from the beginning of the year [3]. Profitability Forecast and Valuation - The profitability forecast for 2025/2026 remains unchanged, with the company maintaining an outperform rating in the industry [5]. - The target price for the H-shares was raised by 27% to 6.2 HKD, reflecting a potential upside of 47.3% from the current price [5]. - The target price for the A-shares was increased by 10% to 7.6 RMB, indicating a 9% upside potential [5].

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 15.50 [8][9]. Core Views - The company's 2024 EPS is projected to be RMB 1.45, representing a 31% year-on-year increase, driven mainly by improved equity investments [1]. - The overall combined ratio (COR) for the company is expected to be 98.8%, reflecting a 1 percentage point increase year-on-year, primarily due to natural disaster impacts [1]. - The company is anticipated to maintain steady growth in its business, particularly in the auto insurance sector, which is expected to grow at a rate of 4.5% in 2024 [2]. Summary by Sections Auto Insurance Performance - The auto insurance COR for 2024 is projected at 96.8%, remaining stable compared to 96.9% in 2023. The loss ratio has increased by 2.2 percentage points to 72.6%, offset by a decrease in expense ratio [2]. - The auto insurance business revenue is expected to grow by 4.5% year-on-year, indicating a stable market outlook [2]. Non-Auto Insurance Performance - The non-auto insurance COR is estimated to rise by 2.8 percentage points to 101.9% in 2024, indicating underwriting losses. The loss ratio has increased by 2.7 percentage points, while the expense ratio remains stable [3]. - Revenue from property insurance is expected to grow by 4.7%, with a COR of 113.4%. Agricultural insurance revenue is projected to increase by 4.9%, with a COR of 99.7% [3]. Capital Returns - The return on equity (ROE) for the company is expected to rise by 2 percentage points to 13.1% in 2024, supported by favorable investment conditions. The total investment return rate is projected to increase to 5.5% [4]. - The company plans to distribute a dividend of RMB 0.54 per share for 2024, up from RMB 0.49 in 2023, with a payout ratio of 37% [4]. Earnings Forecast and Valuation - The EPS forecasts for 2025, 2026, and 2027 have been raised to RMB 1.62, RMB 1.69, and RMB 1.82 respectively, reflecting adjustments of 12.7% and 8.0% for the first two years [5]. - The target price based on DCF valuation has been increased to HKD 15.50 from HKD 13.60, maintaining the "Buy" rating [5].