Core Viewpoint - China Reinsurance has experienced significant value recovery, with a more than 275% increase since its low point in January 2024, marking its tenth anniversary in the Hong Kong stock market [1][3]. Industry Growth and Profitability Turning Point - The Chinese insurance market has seen substantial growth, with original premium income rising from RMB 2.4 trillion in 2015 to RMB 5.7 trillion in 2024, achieving a compound annual growth rate (CAGR) of 9.9%, surpassing the global CAGR of 4.7% [5]. - The reinsurance market in China has also grown, with ceded premiums increasing from RMB 150.16 billion in 2015 to RMB 278.28 billion in 2022, reflecting a CAGR of 9.2% [5][6]. - China Reinsurance's total premium income has grown from RMB 80.43 billion in 2015 to RMB 178.48 billion in 2024, with a CAGR of 9.3% [6]. Competitive Advantages and Financial Performance - China Reinsurance has established itself as a leader in the reinsurance industry, with a return on equity (ROE) increasing from 2.09% in 2022 to 10.74% in 2024, marking the second-highest level in nearly a decade [8]. - The group's underwriting profitability has reached new highs, with a year-on-year growth of over 170% in 2024 [10]. Innovation and Internationalization - China Reinsurance has developed proprietary catastrophe models, enhancing its pricing power and risk management capabilities [14][15]. - The acquisition of the British Bridge Insurance Group in 2018 has significantly improved China Re's underwriting capabilities and international business presence, with Bridge's total premium income growing from RMB 9.614 billion in 2019 to RMB 22.269 billion in 2024, a CAGR of 18.3% [17][20]. Valuation and Market Position - China Reinsurance has historically traded at a low price-to-book (P/B) ratio, reaching as low as 0.2, and currently stands at 0.48, indicating a significant undervaluation compared to peers [22][24]. - The company is positioned to benefit from both domestic growth and international market opportunities, enhancing its long-term valuation prospects [30][31].