Investment Rating - The report maintains a positive outlook on the insurance industry, highlighting strong profit growth driven by investment performance and manageable impacts from economic assumption adjustments [3][4]. Core Insights - The insurance industry is expected to see a significant increase in net profit, with A-share listed insurance companies projected to achieve a total net profit of CNY 347.6 billion in 2024, representing a year-on-year increase of 77.7% [3][5]. - Investment performance is the primary driver of profit growth, contributing 94.5% to the pre-tax profit increase, while total investment income is expected to grow by 110% year-on-year [3][10]. - Economic assumption adjustments have a controllable impact on core indicators, with the investment return rate lowered from 4.5% to 4.0%, and the net value of new business (NBV) expected to decline between 5.4% and 36.2% [3][20][23]. Summary by Sections 1. Investment-Driven Profit Growth - The capital market recovery has significantly boosted the investment performance of insurance companies, leading to a substantial increase in net profit [5][10]. - The total investment income for A-share listed insurance companies is projected to reach CNY 781.1 billion, with a year-on-year growth of 110% [13][10]. 2. Economic Assumption Adjustments - The report indicates a cautious adjustment of economic assumptions, with the investment return rate reduced by 50 basis points to 4.0% [20][22]. - The adjustments are expected to have a limited negative impact on core indicators, with most insurance companies maintaining positive growth in embedded value (EV) [27][30]. 3. Liability Side: NBVM Driving NBV Growth - The NBV growth for listed insurance companies is projected to range from 17.8% to 127% year-on-year, driven by improvements in the new business value margin (NBVM) [3][42]. - The report highlights a mixed performance in new business growth across different companies, influenced by the "reporting and operation integration" policy [47][48]. 4. Asset Side: Strong Investment Performance - The report notes a significant increase in investment assets, with a year-on-year growth of 20.8% to CNY 18.15 trillion by the end of 2024 [3][10]. - The allocation towards bonds and equities has increased, reflecting a positive investment strategy among listed insurance companies [3][10]. 5. Investment Analysis Recommendations - The report recommends continued investment in companies such as New China Life, China Pacific Insurance, China Ping An, AIA, and China Life, based on their strong performance and growth potential [3][10].