Domestic insurance stocks continued their recent gains. As of press release, China's Taiping (00966) rose 5.13% to HK$8.82; China Life (02628) rose 3.78% to HK$12.08; China Taibao (02601) rose 3.74% to HK$20.2; and Ping An of China (02318) rose 3.49% to HK$41.55.
The Zhitong Finance App learned that domestic insurance stocks continued their recent gains. As of press release, China Taiping (00966) rose 5.13% to HK$8.82; China Life (02628) rose 3.78% to HK$12.08; China Taibao (02601) rose 3.74% to HK$20.2; and Ping An (02318) rose 3.49% to HK$41.55.
According to the news, the life insurance business of many listed insurance companies showed a marked recovery in April. The premiums of Taibao Life Insurance and China Life Insurance increased 12.29% and 11.63% year on year; the Huaxi Securities non-bank team pointed out that the recovery in life insurance business was mainly due to the continued recovery of supply-side insurance channels. Although new banking insurance channel orders were under pressure, the drop in pressure brought about an improvement in debt quality; the advantages of insurance products were highlighted against the backdrop of strong demand for savings from demand-side residents and the continuous decline in deposit interest rates.
Furthermore, the “one-to-three” restrictions on banking insurance channels have been lifted. Huafu Securities pointed out that the release of one-to-three restrictions in this notice will marginally benefit small and medium-sized insurers to sign contracts, and it is expected that the large negative growth trend in the early period will be mitigated. However, due to the impact of the general contract agreement and offline service regulations in the notice, leading insurers are expected to further expand the scale of contracts with more outlets and cooperative advantages. At the same time, leading insurers are benefiting from many channels of cooperation, better training service support, and generally higher value rates brought about by significant improvements in the superposition period structure. It is expected that the scope of contracts will be further expanded under the new regulations, and the long-term contract scale growth rate is expected to improve.