Domestic insurance stocks continued their recent gains. As of press release, Ping An of China (02318) rose 4.73% to HK$37.65; Xinhua Insurance (01336) rose 4.5% to HK$15.8; Zhongan Online (06060) rose 4.22% to HK$13.82; and China Taibao (02601) rose 3.94% to HK$17.96.
The Zhitong Finance App learned that domestic insurance stocks continued their recent gains. As of press release, Ping An of China (02318) rose 4.73% to HK$37.65; Xinhua Insurance (01336) rose 4.5% to HK$15.8; Zhongan Online (06060) rose 4.22% to HK$13.82; and China Taibao (02601) rose 3.94% to HK$17.96.
Cinda Securities pointed out that quarterly insurance reports have been released one after another, and core debt-side indicators have performed well. It is recommended that emphasis be placed on the valuation boost brought about by the current asset-side recovery. Ping An, China Life Insurance, and Taibao all achieved impressive results under the higher base for the same period last year, and the results of the debt-side reforms of major insurers have gradually become apparent. As a sector that is expected to fully benefit the “pro-cyclical” sector, current valuations are still low in recent years. We believe it is necessary to pay attention to the current economic recovery and acceleration of capital market reforms to simultaneously boost insurers' capital and negative sides.
Great Wall Securities, on the other hand, pointed out that insurance stock valuations have been repaired, and attention is being paid to life insurance reform and fundamental restoration. The yield on ten-year treasury bonds fell below 2.40% and reached around 2.25% this week. Insurance sector valuations continue to be under pressure. The next trend requires close attention to life insurance reform and fundamental restoration. We believe that insurance debt-side fundamentals continued their weak recovery trend. The premiums of the top five listed insurers of 1.07 trillion yuan increased by 0.96% year-on-year in the first quarter of 2024, while Xinhua Insurance's premium growth rate was in the back position. New orders are expected to be under pressure in the second quarter, but the renewal business remains optimistic.