GTJA stated that since 2024, the decline in long-term interest rates has been quite evident, with the yield on 10-year government bonds further dropping to 1.7% on December 20. The decline in interest rates has caused insurance companies to need to set aside more reserves according to assessment standards, leading to increased fluctuations in profits and net assets, significantly pressuring the solvency adequacy ratio. In June 2024, Li Yunze, Director of the National Financial Regulatory Administration, mentioned at the Shanghai Lujiazui Finance & Trade Zone Development Forum that 'counter-cyclical regulation will be strengthened, solvency and reserve regulations will be improved, and capital replenishment channels will be broadened.' It is expected that extending the transition period for the second generation of solvency regulation, under the premise of controllable risks, will moderately optimize the implementation process of insurance company capital regulatory policies, improve the Global Strategy of insurance companies, and enhance the flexibility of insurance fund utilization, stabilizing profit and dividend expectations, which is Bullish for the valuation improvement of listed insurance companies.