Core Viewpoint - The report anticipates a significant acceleration in net profit growth for listed insurance companies in the first three quarters of 2025, driven by favorable investment returns and improved net assets, alongside strong growth in new business value (NBV) for life insurance and continued improvement in the combined operating ratio (COR) for property insurance [1][2][3] Group 1: Investment Returns and Profit Growth - Investment returns are expected to remain strong, with a notable increase in net profit for listed insurance companies in Q3 2025, building on high growth from the same period in 2024 and further accelerating from the growth seen in H1 2025 [2] - The overall positive performance of the equity market and the optimization of asset structures by insurance companies are projected to significantly boost investment returns [2] Group 2: Life Insurance Sector Performance - The life insurance sector is experiencing a favorable growth environment, with premium growth driven by the strategic timing of new policy sales before interest rate cuts, and the bancassurance channel becoming a key contributor to value growth [2][3] - The multi-channel approach is expected to continue driving strong growth in NBV for listed life insurance companies [3] Group 3: Property Insurance Sector Outlook - Property insurance premiums are anticipated to grow slowly, with the ongoing reform in auto insurance and the "reporting and operation in one" directive for non-auto insurance leading to a shift towards quality and efficiency over mere scale [2] - Despite pressures from natural disasters like typhoons in Q3 2025, the expected improvement in risk management is likely to limit the negative impact on the COR [2]

Core Viewpoint - The insurance industry is expected to see stable profit growth in H1 2025, with net assets under pressure, driven by a recovery in the stock and bond markets and improved asset-liability matching [1][2]. Group 1: Profit Growth and Asset-Liability Matching - The stock and bond markets are anticipated to recover in H1 2025, leading to an increase in investment yields from FVTPL fixed income and equity assets, which will support stable profit growth for listed insurance companies [1]. - Despite a downward trend in long-term interest rates, which may elevate insurance contract liabilities and negatively impact net assets, the reduction in liability costs and strong performance of OCI financial assets will enhance asset-liability matching [1]. - The net profit margin for life insurance is expected to continue growing on a comparable basis, although individual insurance new business may face pressure while bancassurance new business is projected to grow significantly [1]. Group 2: Property Insurance Premiums and Cost Ratio Improvement - Property insurance premiums are expected to grow slowly in H1 2025, influenced by fluctuations in new car sales and declining average premiums per vehicle, while non-auto insurance is benefiting from structural optimization by leading insurers [2]. - The combined ratio for property insurance is expected to improve due to three main factors: reduced catastrophic losses, ongoing structural optimization by leading insurance companies, and active cost control measures [2]. Group 3: Investment Recommendations - The life insurance sector is projected to see continued growth in net business value (NBV), while the combined ratio for property insurance is expected to improve significantly [2]. - With the recovery of the stock and bond markets, listed insurance companies are likely to continue optimizing their asset allocation, further enhancing asset-liability matching [2]. - Current market valuations of insurance stocks reflect pessimistic expectations; therefore, there is an opportunity for valuation recovery in undervalued and underrepresented insurance stocks, maintaining an "overweight" rating for the industry [2].