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中国财险(02328.HK):车险及非车险保费均回暖 新能源车险转型升级

China Financial Insurance (02328.HK): Auto insurance and non-car insurance premiums are recovering, and the transformation and upgrading of new energy vehicle insurance

China Merchants ·  Nov 18, 2024 16:00

The company disclosed premium data from January to October 2024. The growth rate of car insurance and non-car insurance premiums improved marginally, and is expected to achieve steady growth throughout the year.

Overall premiums are growing rapidly. From January to October, the company achieved cumulative premium income of 460.927 billion yuan, an increase of 4.8% over the previous year. Among them, the car insurance business achieved premiums of 237.773 billion yuan, an increase of 3.6% over the previous year, and the non-car insurance business achieved premiums of 223.154 billion yuan, an increase of 6.2% over the previous year. Looking at a single month, the company achieved premium revenue of 32.597 billion yuan in October, up 7.8% year on year. Among them, car insurance premiums increased 6.4% year on year, and non-car insurance premiums increased 12.3% year on year.

The growth rate of car insurance premiums has been improving for 4 consecutive months. In October, the company's car insurance premiums increased 6.4% year on year, and continued to improve +1.1 points over the previous month, mainly due to the overall strength of the national end-of-life renewal policy and local trade-in and replacement policies combined with the “Eleventh” Golden Week effect. The car market showed a rapid growth trend in October. Domestic passenger car retail sales in the narrow sense of the term were +11.3% year-on-year (previous value +4.5%).

Firmly promote the transformation of new energy vehicle insurance, and strengthen comprehensive upgrading of underwriting, claims, and risk reduction services. On November 8, China People's Insurance Group and China Financial Insurance jointly held an investor open day with the theme “Exploration and Practice of High-Quality Development of New Energy Vehicle Insurance” in Beijing to introduce the company's achievements in the high-quality development of new energy vehicle insurance. From 2021 to 2023, the compound annual growth rate of the company's NEV insurance premiums reached 86.4%. The overall comprehensive cost ratio is superior to the industry. In the future, it will build a “car+everything” automotive industry chain penetrating development strategy to push the industry to further strengthen risk identification capabilities and service innovation capabilities.

Non-car insurance premiums have returned to double-digit growth. In October, the company's non-car insurance premiums increased 12.3% year-on-year in a single month, +3.4pt compared to the previous month. Looking at the breakdown, Yijian Insurance (2.769 billion yuan, +25.6% year over year), liability insurance (1.889 billion yuan, +7.8% year over year), and freight insurance (0.468 billion yuan, +22.2% year over year) all continued to grow; agricultural insurance (1.165 billion yuan, -1.4% year over year) performance was sluggish, mainly affected by the pace of government business bidding in some regions and active structural optimization of commercial business, but the negative increase has continued to narrow. Looking at the whole year, the company's non-car insurance premiums are expected to maintain a relatively rapid growth rate under two-wheel drive with GDP growth and increased penetration

Investment advice: Maintain a “Highly Recommended” rating. The growth rate of the company's car insurance and non-car insurance premiums improved marginally in October. It is expected to achieve steady growth throughout the year, stable ROE dividend rate and high long-term investment value. The current valuation of the company corresponds to 1.0 times net assets at the end of 24, the target valuation is 1.2 times PB by the end of 24, and the target price is HK$14.8, and continues to be “highly recommended”.

Risk warning: increased market competition, changes in regulatory policies, natural disasters exceeding expectations, economic recovery falling short of expectations, weak automobile consumption.

The translation is provided by third-party software.


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