Core Insights - The report emphasizes that investment remains the main logic for performance differentiation in the insurance industry, with a focus on the transformation of dividend insurance and changes in liability costs expected to gain importance over time [8][9][10] Group 1: Performance Overview - In H1 2025, the net profit growth rates for major listed insurance companies varied significantly, with China Life at 6.9%, China Pacific at -8.8%, and New China Life at 33.5% [14] - The average new business value (NBV) for major life insurance companies showed a strong growth trend, with China Life at 20.3% and New China Life at 58.4% [14] - The overall premium growth for property insurance was 5.1%, with notable differences in growth rates among companies, particularly in non-auto insurance [10][14] Group 2: Investment Strategies - Listed insurance companies have increased their allocation to equities, with a notable rise in stock proportions across most firms, while bond allocations have shown a mixed trend [19][20] - The net investment yield for major insurers has declined year-on-year, primarily due to the downward trend in long-term interest rates, with China Life at 2.8% and China Pacific at 1.7% [15][16] - The total investment yield for New China Life reached 5.9%, reflecting a 1.1 percentage point increase year-on-year, while China Life's total investment yield decreased by 0.3 percentage points to 3.3% [16] Group 3: Liability and Cost Management - The average new business cost for life insurance companies decreased by 65 basis points year-on-year, indicating improved cost efficiency [10][9] - The transformation of dividend insurance is beginning to show results, with a significant increase in the proportion of dividend insurance in new business for several major insurers [9][10] - The report suggests that the liability cost is expected to continue declining due to regulatory benefits and dynamic adjustments in preset interest rates [9][10] Group 4: Company Recommendations - The report recommends focusing on China Pacific, China Life, and China Insurance for investment, with specific suggestions for New China Life if the equity market continues to outperform expectations [2][3] - The report highlights that the performance of listed insurance companies is closely tied to the trends in the equity market, with a significant impact on net profits from fluctuations in equity asset values [9][10]