Investment Rating - The report maintains an "Outperform" rating for the insurance industry [5][6]. Core Insights - The insurance industry has shown resilience with a 4.9% year-on-year increase in net profit attributable to shareholders for listed insurance companies in the first half of 2025, driven by fluctuations in investment income and a diversified product structure [1][13]. - The industry is undergoing a transformation towards floating-type products, significantly boosting new business value (NBV) across major players [2][22]. - The property and casualty insurance sector has seen stable premium income and improved underwriting profits, with a 4.1% year-on-year growth in premium income [3][36]. Summary by Sections Investment Performance - Listed insurance companies reported varied investment income performance due to market fluctuations, with total investment returns for major companies ranging from 2.3% to 5.9% [4][49]. - The shift towards FVOCI equity assets has been notable, with significant increases in their proportion within financial assets for major insurers [4][53]. Life Insurance Sector - The life insurance sector has increased the proportion of floating-type products, leading to a substantial rise in NBV, with growth rates of 58.4% for New China Life and 39.8% for Ping An [2][22]. - The total insurance service income for five listed insurers reached 831.52 billion yuan, marking a 3.5% increase year-on-year [22][25]. Property and Casualty Insurance Sector - The property and casualty insurance sector achieved a total premium income of 607.90 billion yuan, reflecting a 4.1% increase year-on-year, with both auto and non-auto insurance segments showing growth [3][36]. - The combined ratio (COR) for major insurers improved, indicating better cost management and underwriting performance [3][46]. Investment Recommendations - The report suggests focusing on companies with strong business models and competitive advantages, such as China Pacific Insurance, and those with relatively low valuations like Ping An and China Taiping [4][59].

Core Viewpoint - The National Financial Regulatory Administration has issued a notice to adjust the regulatory ratio of insurance funds' equity assets, aiming to optimize the investment environment for insurance capital and enhance support for the capital market and the real economy [1][2]. Group 1: Policy Adjustments - The notice simplifies the tiered standards and raises the equity asset ratio corresponding to certain solvency adequacy ratios by 5%, thereby expanding the investment space for equity and providing more equity capital for the real economy [1][2]. - The policy change allows for the tax-deferred pension insurance ordinary accounts to no longer be calculated separately for investment ratios, supporting the high-quality development of the third pillar of pension insurance [1]. Group 2: Market Impact - The relaxation of regulatory policies on insurance funds' equity asset ratios is a significant move to optimize asset allocation, which is expected to enhance market confidence by injecting approximately 1.6 trillion yuan in additional funds into the capital market [2][3]. - The total amount of insurance company funds utilized is projected to reach 33.26 trillion yuan by the end of 2024, with equity assets accounting for about 20% of this total [1]. Group 3: Investment Strategy - The policy encourages insurance funds to increase investments in strategic emerging industries, advanced manufacturing, and new infrastructure, with a specific focus on technology, big data, and renewable energy sectors [3]. - The concentration ratio for venture capital fund investments by insurance funds is set at 30%, promoting a more targeted approach to equity investments in high-growth sectors [3]. Group 4: Operational Efficiency - The adjustment of equity asset allocation ratios and the simplification of tiered standards are expected to enhance the operational efficiency and matching of insurance funds, particularly in a low-interest-rate environment [3]. - Major insurance companies, including China Life and Ping An, have expressed confidence in the development prospects of the Chinese capital market and are committed to leveraging their long-term investment advantages [3].