China Merchants Securities believes that as asset-side stock markets, real estate, and interest rates usher in triple catalysis, the constraints that suppress profit performance and stock price valuation in the life insurance sector are expected to be fully opened up.
As of May 20, the premium data of the top five A-share listed insurers for the first 4 months of 2024 have all been released.
According to the reporter's analysis, in the first four months of this year, China Life Insurance, China Peace Insurance, China Taibao, and Xinhua Insurance achieved a total of 1.25 trillion yuan in premium income, an increase of 1.5% over the previous year, and maintained positive overall growth.
Among them, personal insurance premiums under the five major insurance companies increased by 0.4% year on year; property insurance premiums increased by 3.8% year on year.
On the debt side, the General Administration of Financial Supervision recently issued the “Notice Concerning Matters Relating to Commercial Banks' Agency Insurance Business”, and the “one-on-three” sales restrictions implemented by banking insurance channels for many years have been officially abolished. This move will help banks broaden the scope of cooperation with insurance institutions and enrich the categories of banking insurance products and services. For large insurers, they can actively explore long-term in-depth cooperation with banks.
The Open Source Securities Research Report points out that from the demand side, demand for pension savings is strong, and insurance benefits and yield advantages are still there; on the supply side, the per capita production capacity of individual insurers continues to increase, integration of reporting and product structure optimization drive a sharp increase in the value ratio of banking insurance business, and the policy side actively cares to reduce insurers' debt costs. It is expected that new business value will continue to grow at a good rate throughout the year.
China Merchants Securities believes that as asset-side stock markets, real estate, and interest rates usher in triple catalysis, the constraints that suppress profit performance and stock price valuation in the life insurance sector are expected to be fully opened up.
Looking back, the life insurance sector, which has undervaluation, low holdings, and low expectations, is still an excellent choice reflecting the equity market, real estate expectations, and interest rate environment.
Insurance-related companies:
China Taiping (00966), China Taibao (02601), China Life Insurance (02628), Xinhua Insurance (01336), Ping An China (02318)