Jinwu Financial News | Insurance stocks generally rose. China Taibao (02601) rose 4.7%, China Ping An (02318), China Financial Insurance (02328), and China Taiping (00966) rose more than 2%, and Xinhua Insurance (01336) and China Life (02628) followed up%.
The Huaxi Securities Research Report pointed out that from the debt side, overall premium income continued to grow in the first quarter, mainly due to the continued recovery of supply-side insurance channels, and although new banking insurance channel orders were under pressure, the drop in customs pressure brought about an improvement in debt quality; in the context of strong demand for demand-side residents' savings demand compounded by continued reduction in deposit interest rates, the advantages of insurance products were highlighted. In terms of financial insurance, I am optimistic about the improvement of COR due to restructuring of non-auto insurance businesses for a long time. Looking at the asset side, the equity market is currently showing a steady recovery trend. It is expected that long-term interest rates will have limited room for decline, and the asset side is expected to usher in marginal improvements. Recently, the insurance sector has continued to decline, and the overall valuation is at a historically low level. The margin of safety is sufficient, maintaining the industry's “gain” rating.
Guojin Securities said that as April enters the earnings season, the overall market allocation style is pro-cyclical. Insurance stocks are at the bottom of the valuation, compounded by weak first-quarter statements (NBV is expected to grow rapidly and profit is expected to be relatively stable), which is expected to bring about a phased rebound in valuation.