UBS reports raising China Property Insurance (02328.HK) rating from “Neutral” to “Buy”, with the price target from $7.8 to $10.9, and an increase in the earnings test from 4% to 10% for 2023 to 2025 to reflect potential reserve release and product portfolio improvement; composite cost rate is expected to range from 97.7% to 97.9% for the period, better than raw materials ranging from 98.4% to 98.7%.

The report said P&C shares currently equal to 0.7 times the forecast market share rate this year, still below the five-year average and 2020 levels, believes the market has not yet fully considered its superior profitability, and remains concerned about any potential negative regulatory developments, but the bank believes it is unlikely to happen.

Taking into account that more than 90% of the profits of the Insurer Group comes from the property and accident business, UBS also upgraded its rating from Neutral to Buy, and the target price target for H shares from $2.8 to $3.3.