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大行评级丨杰富瑞：预测中国寿险股次季业绩好坏参半 偏好中国平安

Big Bank Ratings丨Jefferies: Predicting mixed results for China's life insurance stocks in the next quarter, favoring Ping An of China

Gelonghui Finance ·  May 23 01:52

Jefferies released a report saying that China's life insurance stocks have risen 20% to 40% since this year, benefiting from stabilizing interest rates and improving market sentiment. However, the bank is wary of the remaining structural challenges in the industry and urges investors to remain selective. The industry's profit for the next quarter may improve year over year, but the value of the new business is facing a high base. The bank predicts that China's life insurance stocks will perform mixed in the next quarter. The low base of seasonal dividend income and stock profit will drive the quarterly and yearly recovery of investment income and profits, but the high base from May to July will drag down negative growth in the value of new businesses. The bank favors Ping An of China. Based on low valuations, stronger underwriting profitability and increased clarity of investment books, it also believes that Ping An of China provides more attractive relative value. The bank ended its “outperforming the market” rating of China Life Insurance, believing that long-term interest rates had stabilized and profits or improved in the second quarter. The bank maintained its ratings for “buying” financial insurance and “underperforming” for Xinhua Insurance.

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