Jefferies Financial has released a research report stating that the performance of mainland insurance companies in the second quarter of this year seems to be moving in the right direction, paving the way for further recovery in the second half of the year. Mid-term dividend and EPS growth will be key, and market weakness and individual company news have dragged down stock performance, which hasn't fully reflected favorable factors. The performance of China Pacific Insurance may surprise the market. The bank expects the after-tax operating surplus of Ping An Insurance for the second quarter and the first half of the year to increase by 4% to 5% year-on-year, and the investment income of China Life Insurance for the first half of the year to increase year-on-year. The new business value growth rate of China Life may slow down to 26% year-on-year in the first half of the year from the first quarter, but it is still expected to maintain a double-digit growth rate, while the new business value of China Pacific Insurance in the first half of the year should lead the industry.

The bank has adjusted target prices and ratings for some mainland insurance companies. China Life Insurance's target price has been raised from HKD 11 to HKD 12, with a 'hold' rating; China Pacific Insurance's target price has been raised from HKD 24 to HKD 25, with a 'buy' rating; and New China Life Insurance's target price has been raised from HKD 13 to HKD 16.5, with a rating upgraded from 'underperform' to 'hold'.