Core Viewpoint - The report from Shenwan Hongyuan maintains a "buy" rating for China Pacific Insurance (023238) and raises profit forecasts due to better-than-expected performance in both assets and liabilities in the first three quarters of the year [1] Group 1: Profit Performance - The company's net profit for the first three quarters of 2025 increased by 50.5% year-on-year to 40.268 billion yuan, slightly above the expected range of 40%-60% [2] - In Q3 alone, net profit surged by 91.5% year-on-year to 15.813 billion yuan, driven by improved loss ratios and strong investment returns [2] - The comprehensive cost ratio improved by 2.1 percentage points year-on-year to 96.1%, outperforming expectations [2] Group 2: Underwriting Profit - The company's underwriting profit for the first three quarters increased by 130.7% year-on-year to 14.865 billion yuan, supported by a rise in both volume and price [2] - The combined ratio for auto insurance improved by 2.0 percentage points year-on-year to 94.8%, with underwriting profit rising by 64.8% to 11.729 billion yuan [3] - Non-auto insurance saw a turnaround with underwriting profit reaching 3.136 billion yuan, compared to a loss of 0.676 billion yuan in the same period last year [4] Group 3: Investment Performance - The company effectively capitalized on equity market opportunities, achieving an annualized total investment return of 5.4%, up by 0.8 percentage points year-on-year [5] - As of the end of September, the company's financial assets classified as AC/FVOCI/FVTPL totaled 1,478.84 billion yuan, 2,756.55 billion yuan, and 1,412.37 billion yuan, representing 26.2%, 48.8%, and 25.0% of the total assets, respectively [5]