Investment Rating - The industry investment rating is "stronger than the market," indicating an expected performance that exceeds the market index by more than 5% over the next six months [5]. Core Viewpoints - The report highlights that China Pacific Insurance (CPIC) achieved a net profit of 9.627 billion yuan in Q1 2025, representing a year-on-year decline of 18.1%. The net assets decreased by 9.5% compared to the end of the previous year, totaling 263.61 billion yuan [2]. - In the life insurance sector, CPIC is focusing on high-quality development and deepening its transformation. The new insurance premium scale increased significantly, with a new premium scale of 42.354 billion yuan in Q1 2025, reflecting a year-on-year growth of 29.2% [4]. - The report notes that the non-life insurance segment also saw stable premium growth, with original premium income reaching 63.108 billion yuan, a year-on-year increase of 1.0% [4]. - Investment performance remained resilient despite market fluctuations, with an annualized net investment return rate of 0.8% in Q1 2025, unchanged from the previous year [4]. Summary by Sections Life Insurance - CPIC's new insurance premium scale reached 42.354 billion yuan, up 29.2% year-on-year. The new business value (NBV) was approximately 5.778 billion yuan, with a significant increase in comparable terms [4]. - The product structure was optimized, with the proportion of participating insurance premiums rising to 18.2%, an increase of 16.1 percentage points year-on-year [4]. - The individual insurance channel saw a decline in new premium scale, down 15.2% year-on-year, primarily due to a high base in the previous year [4]. Non-Life Insurance - CPIC's original premium income in the non-life insurance sector was 63.108 billion yuan, with a 1.0% year-on-year increase. The growth in auto and non-auto insurance premiums was 1.3% and 0.7%, respectively [4]. - The combined ratio improved to 97.4%, a decrease of 0.6 percentage points year-on-year, indicating better cost management and reduced disaster impacts [4]. Investment Performance - The report indicates that the capital market remains volatile, but CPIC's investment performance is resilient, with a total investment return rate of 1.0%, down 0.3 percentage points year-on-year [4]. - The yield on ten-year government bonds increased by 14 basis points compared to the end of 2024, impacting the fair value of bonds held by CPIC [4].

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company, with current prices at 30.82 RMB and 21.55 HKD respectively [1]. Core Insights - The company has experienced rapid growth in new business value (NBV), with a year-on-year increase of 39% to 57.8 billion RMB in Q1 2025, driven by the development of the bancassurance channel and an increase in the value rate [4][6]. - The overall operating income for Q1 2025 was 937.2 billion RMB, a slight decrease of 1.8% year-on-year, while the net profit attributable to shareholders was 96.3 billion RMB, down 18.1% year-on-year [4][5]. - The company is focusing on a multi-channel model upgrade and enhancing its core human resources to ensure balanced business development and stable value growth [6]. Financial Performance Summary - In Q1 2025, the company achieved a total premium income of 1,184.2 billion RMB, reflecting an 11.8% increase year-on-year, primarily driven by renewal business and new bancassurance policies [4]. - The property insurance segment reported a slight premium growth of 1.0% year-on-year, with a combined cost ratio improving by 0.6 percentage points to 97.4% [5]. - The net investment yield remained stable at 0.8%, while the total investment yield decreased slightly by 0.3 percentage points to 1.0% due to short-term interest rate increases [5]. Earnings Forecast and Valuation - The company forecasts net profits of 519 billion RMB, 591 billion RMB, and 624 billion RMB for the years 2025, 2026, and 2027 respectively, with a projected growth rate of 15.42% in 2025 [7]. - The report indicates that the A/H share prices correspond to a price-to-earnings value (PEV) of 0.46 for A-shares and 0.31 for H-shares in 2025 [6][7].

Core Viewpoint - Major listed insurance companies in China have reported strong performance for 2024, boosting confidence in the industry's transformation during a complex external environment [2] Financial Performance - China Pacific Insurance (CPIC) achieved operating revenue of 404.09 billion yuan in 2024, a year-on-year increase of 24.7% [2] - The net profit attributable to shareholders exceeded 40 billion yuan for the first time, reaching 44.96 billion yuan, a significant increase of 64.9% year-on-year [2] - The operating profit attributable to shareholders was 34.43 billion yuan, up 2.5% year-on-year, while the group's embedded value was 562.07 billion yuan, growing by 6.2% [2] Life Insurance Segment - CPIC's life insurance segment reported premium income of 261.08 billion yuan, a 3.3% increase year-on-year, with new business value rising by 57.7% to 17.28 billion yuan [3] - The new business value margin improved by 8.6 percentage points to 21.9% [3] - The net profit for the life insurance segment surged by 83.4% to 35.82 billion yuan [3] Non-Life Insurance Segment - CPIC's property insurance segment achieved premium income of 203.54 billion yuan, a 6.8% increase year-on-year, with non-auto insurance premiums growing by 10.7% [3] - The net profit for the property insurance segment increased by 12.2% to 7.38 billion yuan [3] Transformation and Strategy - CPIC's life insurance business is undergoing a "Long Voyage Transformation," focusing on multi-channel development and enhancing value contribution [4] - The 13-month policy continuation rate for individual life insurance customers reached 97.4%, up 1.7 percentage points year-on-year [4] - The company is implementing a six-strategy framework for 2025, focusing on customer, regional, product, channel, operational, and digital strategies [6] Innovation and Development - CPIC is exploring innovative areas such as new energy vehicle insurance, with 17% of auto insurance premiums coming from this segment [7][8] - The company is enhancing its risk management capabilities and optimizing its non-auto insurance structure [9] - CPIC has initiated three major strategies: "Great Health and Elderly Care," "AI+," and internationalization, to drive high-quality development [10][11]

Investment Rating - The report maintains a "Recommended" rating for China Pacific Insurance (601601.SH) [1] Core Views - The company achieved a revenue of 404.09 billion yuan in 2024, representing a year-on-year increase of 24.7%, and a net profit attributable to shareholders of 44.96 billion yuan, up 64.9% year-on-year [1] - The new business value (NBV) reached 13.26 billion yuan, with a year-on-year growth of 20.9%, and the new business value margin (NBVM) improved by 3.5 percentage points to 16.8% [1][2] - The company is advancing its "Long Voyage" transformation, leading to improved business quality and policy standards, which in turn supports steady growth in intrinsic value [1][4] Summary by Sections Revenue and Profitability - In 2024, the company reported total operating income of 404.09 billion yuan, a 24.7% increase year-on-year, and a net profit of 44.96 billion yuan, reflecting a 64.9% increase [1][19] - The operating profit was 34.43 billion yuan, with a slight increase of 2.5% year-on-year [1] Life Insurance Segment - The new business value (NBV) for 2024 was 13.26 billion yuan, up 20.9% year-on-year, with an NBVM of 16.8%, an increase of 3.5 percentage points [1][2] - The individual insurance channel achieved a premium income of 202.48 billion yuan, a 3.6% increase, while the new single premium income rose by 9.7% to 28.73 billion yuan [2] Property and Casualty Insurance Segment - The property and casualty insurance segment reported a premium income of 203.54 billion yuan, a 6.8% increase year-on-year, with non-auto insurance growing by 10.7% [3] - The combined ratio slightly increased by 0.9 percentage points to 98.6%, influenced by natural disasters [3] Investment Performance - Total investment income reached 120.39 billion yuan, a significant increase of 130.5% year-on-year, with a total investment yield of 5.6%, up 3.0 percentage points [3] - Net investment income rose by 6.5% to 82.80 billion yuan, with a net investment yield of 3.8% [3] Future Outlook - The company is expected to continue its "Long Voyage" transformation, with stable growth in operating performance and improvements in channel quality and operational efficiency [4] - EPS forecasts for 2025-2027 are projected at 4.57, 5.39, and 6.31 yuan, with corresponding P/E ratios of 7X, 6X, and 5X [4][19]

Investment Rating - The report maintains a "Recommended" rating for China Pacific Insurance (601601.SH) with a current price of 31.76 CNY [1] Core Views - The company achieved a revenue of 404.09 billion CNY in 2024, representing a year-on-year increase of 24.7%, and a net profit attributable to shareholders of 44.96 billion CNY, up 64.9% year-on-year [1] - The new business value (NBV) reached 13.26 billion CNY, reflecting a robust growth of 20.9% year-on-year, with a new business value margin (NBVM) of 16.8%, an increase of 3.5 percentage points [1][2] - The company is advancing its "Long Voyage" transformation, leading to improved business quality and policy standards, which in turn supports steady growth in intrinsic value [1][4] Summary by Sections Revenue and Profitability - In 2024, the company reported total operating revenue of 404.09 billion CNY, a 24.7% increase year-on-year, and a net profit of 44.96 billion CNY, which is a 64.9% increase [1][19] - The operating profit was 34.43 billion CNY, reflecting a modest growth of 2.5% year-on-year [1] Life Insurance Segment - The new business value (NBV) for 2024 was 13.26 billion CNY, up 20.9% year-on-year, with an NBVM of 16.8%, an increase of 3.5 percentage points [1][2] - The individual insurance channel achieved a premium income of 202.48 billion CNY, a 3.6% increase year-on-year, with new single premium income rising by 9.7% to 28.73 billion CNY [2] Property and Casualty Insurance Segment - The property and casualty insurance segment reported a premium income of 203.54 billion CNY, a 6.8% increase year-on-year, with non-auto insurance growing at 10.7% [3] - The combined ratio slightly increased by 0.9 percentage points to 98.6%, influenced by natural disaster claims [3] Investment Performance - Total investment income reached 120.39 billion CNY, a significant increase of 130.5% year-on-year, with an overall investment yield of 5.6%, up 3.0 percentage points [3] - Net investment income rose by 6.5% to 82.80 billion CNY, despite a slight decrease in net investment yield by 0.2 percentage points to 3.8% [3] Future Outlook - The company is expected to continue its "Long Voyage" transformation, enhancing operational efficiency and channel quality, with projected EPS of 4.57 CNY, 5.39 CNY, and 6.31 CNY for 2025, 2026, and 2027 respectively [4][19] - The report anticipates a stable growth trajectory for both life and property insurance segments, supported by macroeconomic recovery [4]