On April 29, insurance stocks continued to strengthen in early trading. As of press release,$AIA (01299.HK)$Up 9.07% to HK$58.9;$CPIC (02601.HK)$Up 5.72% to HK$18.12;$CHINA LIFE (02628.HK)$) rose 4.85% to HK$10.8;$NCI (01336.HK)$Up 4.61% to HK$15.44;$PING AN (02318.HK)$Up 4.33% to HK$37.35.

According to the news, judging from the quarterly reports of listed insurers currently disclosed, the overall year-on-year growth rate of insurers NBV exceeded expectations. Among them, China Ping An increased 20.7% year on year; China Taibao increased 30.7% year on year; and China Life Insurance increased 26.3% year on year. Open Source Securities said that under multiple influences such as lower scheduled interest rates, improvements in product payment and term structures, and the integration of reporting and banking to drive cost reduction and efficiency, the value rate of new business of listed insurers increased markedly year-on-year in the first quarter, continuing the high-quality growth trend. Furthermore, the cost of debt in the industry is expected to drop significantly in 2024, the market share of leading insurers is expected to continue to increase, and the debt side will continue to grow at a high quality.

Guojin Securities pointed out that the overall performance on the debt side was good, and the insurance stock valuation repair market due to marginal improvements in asset-side expectations is expected to continue. In the short term, the upward rebound in the stock market is compounded by weak first-quarter results (NBV is growing rapidly, and the profit performance of some companies slightly exceeds expectations), and the phased valuation rebound of insurance stocks will continue. In the medium term, we await opportunities for a phased rise in long-term interest rates as economic expectations improve, as well as progress in debt-side product transformation, that is, the cost of rigid debt falls and sales stabilizes after the decline.