UBS Group has released a report on the mainland insurance industry, indicating that the market seems to have given up on critical illness insurance. The compound annual growth rate of new business value of critical illness insurance from 2018 to 2023 is -29%. The bank predicts that under the driving force of higher protection needs and expanding coverage, the compound annual growth rate of new business value of critical illness insurance from 2026 to 2033 will be 8%, exceeding GDP growth. The bank believes that AIA (01299.HK) and Ping An (02318.HK) have prepared themselves to seize the opportunity of critical illness insurance.

UBS Group pointed out that AIA's business in China has a unique positioning, such as focusing on affluent groups. Despite weak consumer sentiment, AIA China recorded double-digit growth in new business value in the first half of the year in terms of protection products, and raised the target price from 90 yuan to 93 yuan. Rated as "buy".

UBS Group also bullish on Ping An's long-term protection business and comprehensive medical care ecosystem. In addition, its agency productivity is also ahead of its peers, and the target price has been raised from 56 yuan to 59 yuan. Rated as "buy".