Jinwu Financial News | Insurance stocks were collectively pressured. AIA (01299) fell 4.55%, China Taiping (00966) fell 4.1%, Ping An of China (02318) fell 4%, China Life Insurance (02628) fell 2.7%, and Xinhua Insurance (01336) fell 2.37%.
According to the news, Cathay Pacific Junan indicated that the 24Q1 equity market picked up in February-March after experiencing a correction in January, but the increase was still below the 23Q1 level. It is expected that insurance companies' equity investments included in FVTPL will still be under some pressure. Some companies are expected to have better investment performance than expected due to the market's ability to grasp the theme of high-dividend assets; on the other hand, ten-year treasury bond yields fell 26.29bp to 2.29% in the first quarter of '24. It is expected that bond assets included in the FVTPL will reap better returns, partly hedging the impact of reduced earnings in the equity market. Under a high base, the investment side is expected to be under slight pressure, and the net profit of 24Q1 listed insurers is expected to be slightly pressured.
Zheshang Securities said that looking ahead to 24Q1, life insurance NBV is expected to maintain a relatively rapid growth rate, and industrial insurance COR will increase. In terms of profit performance, it is expected that under the influence of declining interest rates and last year's high base, the profit growth rate of various insurers will still be under pressure, but there has been a marginal improvement.