Core Viewpoint - The insurance market is undergoing a significant structural transformation, with dividend insurance emerging as a new focal point due to the decline in market interest rates and the shift to a "1 era" in life insurance preset rates [1][3]. Market Trends - The acceptance of dividend insurance has notably increased in recent years, driven by the continuous decline in market interest rates, with the ten-year government bond yield recently falling below 1.8% [3][4]. - In 2024, the premium income from dividend life insurance is projected to reach 765.874 billion yuan, reflecting a year-on-year growth of 4.12%, marking a 23.25 percentage point increase from the previous year [1][3]. Product Characteristics - Dividend insurance combines guaranteed benefits with the potential for variable dividends, making it an essential choice for customers in a low-interest-rate environment [3][4]. - The design of dividend insurance, which includes guaranteed benefits and non-guaranteed dividends, helps to mitigate the liability pressure on insurance companies and reduce long-term interest rate risk [4][5]. Regulatory Environment - The new regulatory guidelines issued in June 2025 aim to reshape the market structure by emphasizing the alignment of dividend levels with actual asset-liability management and investment returns [9][10]. - The implementation of these guidelines is expected to accelerate differentiation within the industry, prompting companies to adjust their business strategies and increase their focus on dividend insurance [9][10]. Investment Strategy - The investment capability of insurance companies is crucial for the competitiveness of dividend insurance, with companies like Ping An Life establishing a robust investment framework to achieve competitive returns [7]. - Ping An Life has developed a unique investment strategy that includes tactical, scenario, and strategic management to address various market conditions and enhance the dividend levels of its products [7]. Consumer Guidance - Consumers are advised to conduct self-assessments before purchasing dividend insurance, ensuring that their needs align with the product's characteristics, particularly regarding the long-term commitment required [8]. - It is essential for consumers to evaluate the insurance company's investment capabilities, historical dividend performance, and overall financial stability before making a decision [8].

Core Viewpoint - The continuous reduction of the predetermined interest rate for life insurance over the past three years has led to dividend insurance becoming a key focus for many insurance companies, as it offers both guaranteed and floating returns, making it an attractive product in a low-interest-rate environment [1][3]. Product Structure Transformation - Dividend insurance has a smaller reduction in predetermined interest rates compared to ordinary products, enhancing its yield advantage [3]. - The design of dividend insurance, which includes guaranteed benefits and non-guaranteed dividends, helps to mitigate the liability pressure on insurance companies and reduces long-term interest rate risk [3][4]. Investment Strategy and Management - The investment team at the company has established a combination management framework called "tactical, scenario, and strategic warehouses" to balance short, medium, and long-term investment goals [1][8]. - The company aims to enhance the competitiveness of dividend insurance through a robust investment system that includes good teams, strategies, projects, performance, and dividends [9]. Dividend Characteristics and Distribution - The source of dividends in dividend insurance comes from surplus generated when actual operating conditions exceed pricing assumptions, primarily from interest margin, mortality margin, and expense margin [6]. - The company is committed to distributing at least 70% of the distributable surplus to policyholders, ensuring a fair share of the operating results [6][10]. Stability and Fairness Mechanism - The smoothing mechanism, referred to as the special reserve for dividend insurance, is designed to protect the long-term interests of policyholders by stabilizing dividend levels across different economic cycles [11][17]. - The mechanism allows for the accumulation of excess returns in good years and draws from reserves in poor years, ensuring a balanced approach to dividend distribution [11][12]. Governance and Transparency - The management of dividend insurance funds is conducted independently, with strict internal controls and annual audits by third parties to prevent misuse of the smoothing mechanism [14][15][16]. - The company adheres to regulatory requirements and its own dividend policies to ensure sustainable and stable returns for customers [12][13].