According to the Securities Times APP, mainland insurance companies collectively rose, as of the deadline for submission,$PING AN (02318.HK)$up 5.65%, at 51.4 Hong Kong dollars;$CHINA LIFE (02628.HK)$up 5.49%, at 17.3 Hong Kong dollars;$NCI (01336.HK)$up 4.98%, at 28.45 Hong Kong dollars; $PICC GROUP (01339.HK)$Rise by 3.92%, at 4.24 Hong Kong dollars.

Sinolink pointed out that the net income of listed insurance companies in the first three quarters of 2024 increased significantly year-on-year: China Life Insurance +174%, New China Life Insurance +117%, People's Insurance +77%, China Pacific Insurance +66%, Ping An Insurance +36%. With the rebound of the equity market and the increase in equity flexibility under the new rules, investment services drive high performance growth beyond expectations. Looking ahead, bullish policies continue to be introduced to support high-quality development of the insurance industry. The "New National Ten Measures" for insurance outline the development direction, guiding opinions on long-term funds entering the market + relaxation of SFISF tools on the asset side, supporting vigorous development of commercial insurance and pension products. It is expected that the liability side will continue to grow with high quality, continuously lowering the cost of liabilities to alleviate the risk of interest rate differentials, and the valuation center of the insurance sector will rise.

Sinolink stated that profits of insurance companies in Q4 are expected to continue growing rapidly. In terms of life insurance, recent state-owned banks further lowered the RMB deposit listing interest rate after July, with 2.5% scheduled rate, traditional insurance still has a relative advantage, and the enhanced market confidence under the combined policies is also conducive to the sales of dividend insurance. In addition, the increase in the scheduled interest rate is expected to raise the value rate, and the opening new single premium in 2025 may come under pressure, but NBV is expected to achieve positive growth. Looking at the medium to long term, economic expectations are improving, benefitting from the positive shift in real estate policies and the expected economic recovery, the cyclical logic of life insurance may begin to emerge. On the property insurance side, overall better-than-expected performance in the third quarter with highlighted high dividend characteristics, recommended to focus on property insurance listed in Hong Kong related symbols.

Editor/ping