Core Viewpoint - UBS reports that China Life Insurance (02628) has issued a positive profit alert, expecting a year-on-year increase of 50% to 70% in net profit after tax for the first three quarters of this year, reaching between 157 billion to 178 billion RMB, significantly exceeding market expectations [1] Financial Performance - The net profit after tax for the third quarter is expected to increase by 75% to 106% year-on-year, primarily driven by substantial growth in investment income and a recovery in insurance service operations [1] - UBS has raised its net profit forecasts for China Life for 2025 to 2027 by 79%, 23%, and 24% respectively, based on the positive profit alert, expanded asset management scale, and rising interest rates [1] Business Growth - The estimated new business value (VNB) for the first three quarters is projected to increase by 36% year-on-year, compared to a 20% growth rate in the first half of the year, indicating strong growth momentum in the third quarter [1] Dividend Outlook - Despite the strong expected performance in net profit after tax for the year, UBS believes that dividends will not increase at the same rate, as the group's target is for stable dividend growth [1] - Assuming a dividend increase of 10% to 30%, the H-share dividend yield is expected to reach between 3.4% to 4% [1]

Core Viewpoint - UBS reports that China Life Insurance expects a significant increase in after-tax net profit for the first three quarters of the year, projecting a year-on-year rise of 50% to 70%, reaching between 157 billion to 178 billion yuan, which is well above market expectations [1] Financial Performance - The after-tax net profit for the third quarter is anticipated to increase by 75% to 106% year-on-year, primarily driven by substantial growth in investment income and a recovery in insurance service operations [1] - The estimated new business value (VNB) for the first three quarters is expected to rise by 36% year-on-year, compared to a 20% increase in the first half of the year, indicating strong growth momentum in the third quarter [1] Dividend Expectations - Despite the strong anticipated performance in after-tax net profit for the year, it is believed that dividends will not increase at the same rate, as the group's goal is stable dividend growth [1] - Assuming a dividend increase of 10% to 30%, the H-share dividend yield is projected to reach between 3.4% to 4% [1] Target Price Adjustment - Based on the earnings forecast, expansion of asset management scale, and rising interest rates, the profit forecasts for after-tax net profit for 2025 to 2027 have been raised by 79%, 23%, and 24% respectively [1] - The target price for China Life Insurance has been adjusted from 27.4 HKD to 29 HKD, while maintaining a "Buy" rating [1]

Core Viewpoint - UBS reports that China Pacific Insurance (02328) outperformed market expectations in the first half of the year, driven by a 45% year-on-year surge in underwriting profit and a 27% increase in total investment income [1] Group 1: Financial Performance - The net profit after tax (NPAT) forecast for China Pacific Insurance has been raised by UBS by 4% for 2025, reflecting better-than-expected combined cost ratios and improved market sentiment [1] - Total premium income is projected to grow by 4.5%, with motor insurance and non-motor insurance premiums expected to increase by 3.5% and 5.8% respectively [1] Group 2: Valuation and Target Price - UBS has raised the target price for China Pacific Insurance from HKD 18.7 to HKD 20.7, maintaining a "Buy" rating due to favorable macro conditions and policy tailwinds [1] - The estimated combined cost ratios for motor and non-motor insurance are targeted to be below 96% and approximately 99% respectively [1] Group 3: Investment Income Outlook - UBS anticipates a slowdown in growth momentum for investment income in the third quarter, aligning with industry trends due to high equity return benchmarks and rising interest rates potentially lowering bond fair values [1] - Despite the anticipated slowdown, UBS believes that China Pacific Insurance will face less profit pressure compared to peers due to its smaller fair value exposure to equities and lower investment leverage [1]