Core Insights - The report maintains a positive outlook on the insurance industry, projecting significant growth in new business value (NBV) and new premium income for life insurance by 2026 [1][4][7] - The report highlights the effective reduction of rigid costs in life insurance, anticipating a turning point in the service margin (CSM) by 2027 [5][30] Group 1: Insurance Channels - The bank insurance channel is expected to see a new premium income growth rate of over 30% in 2026, driven by the reallocation of low-risk funds from bank deposits into insurance products [7][15] - The individual insurance channel's new business value growth is projected to be between 0% and 10% in 2026, influenced by the introduction of "product + service" offerings and differentiated accounts [7][24] - The report notes that the number of new agents in the individual insurance channel has not yet reached a turning point, indicating potential for future growth [24] Group 2: Cost and Profitability - The report indicates a downward trend in the rigid liability costs for major life insurance companies, with new policy costs for China Life, Taiping, and Xinhua decreasing by 52, 52, and 94 basis points respectively [7][29] - The CSM balance for life insurance is expected to return to positive growth by 2027, driven by higher NBV growth and stabilization of risk-free interest rates [30][34] Group 3: Investment Strategies - Major insurance companies have increased their equity asset allocations, with China Life, Ping An, Taiping, and PICC raising their equity fund ratios by 1.4, 2.6, 0.5, and 1.7 percentage points respectively [35][40] - The long-term investment pilot program for insurance funds is anticipated to enhance profitability, with significant asset appreciation reported by Xinhua Insurance's fund [35][40] Group 4: Key Companies - China Life is noted for its strong individual insurance team and significant profit elasticity, with a notable increase in NBV growth from 4.8% to 41.8% year-on-year [41][42] - Ping An's bank insurance channel achieved a remarkable 170.9% NBV growth in the first three quarters of 2025, supported by strategic expansion and product offerings [44][45] - China Pacific Insurance is expected to benefit from policy support in both auto and non-auto insurance sectors, with a focus on improving underwriting profits [51][56]