The Zhitong Finance App learned that domestic insurance stocks generally rose in early trading. As of press release, China Taibao (02601) rose 3.64% to HK$21.35; China Taiping (00966) rose 3.18% to HK$8.77; Xinhua Insurance (01336) rose 3.08% to HK$16.72; and Ping An of China (02318) rose 2.86% to HK$41.4.

Haitong International pointed out that the Financial Supervisory Authority disclosed the April premium data, life insurance premiums still achieved double-digit growth, and the growth rate of the industrial insurance business slowed; listed insurers disclosed April premiums, and the growth rate of total life insurance premiums continued to improve, and the human insurance non-car insurance business receded in the short term; the General Administration of Financial Supervision issued a “Notice on Matters Relating to Commercial Banks' Agency Insurance Business”, which is expected to achieve deepening cooperation and win-win progress. We believe that insurance operations have significant procyclical characteristics, and the debt side and investment side will improve significantly as the economy recovers in the future.

Guolian Securities pointed out that currently, the valuation of the insurance sector is still at a historically low level. As the asset-side environment continues to improve, we believe that the investment income of 2024Q2 insurance companies is expected to improve significantly, which in turn will drive a high increase in net profit. Insurance companies' valuations will also be repaired. Looking ahead to the whole year, we expect life insurance NBV to continue to improve, financial insurance COR to improve year-on-year, and a recovery in the capital market is expected to drive a positive increase in net profit. The safety margin of the current sector is still high, and there is plenty of room for upward restoration.