Domestic insurance stocks continued their recent decline. As of press release, Xinhua Insurance (01336) fell 2.71% to HK$17.2; China Life (02628) fell 2.42% to HK$12.12; and China Taibao (02601) fell 0.93% to HK$21.3.
The Zhitong Finance App learned that domestic insurance stocks continued their recent decline. As of press release, Xinhua Insurance (01336) fell 2.71% to HK$17.2; China Life (02628) fell 2.42% to HK$12.12; and China Taibao (02601) fell 0.93% to HK$21.3.
According to the news, Dongwu Securities pointed out that in April 2024, life insurance's original premium growth rate for the month was as follows: Sunshine Life (14%), Taibao Life Insurance (12%), China Life Insurance (12%), Life Insurance and Health (10%), Ping An Life Insurance and Health Insurance (6%), and Xinhua Insurance (-12%). The premiums for the first year of Human Insurance Life Insurance's monthly payment in April decreased by 16.6% year on year, but the transaction business increased sharply by 41.3% year over year. The Financial Services Regulatory Authority recently announced the cancellation of one-on-three restrictions on banking insurance channels, which is beneficial for small and medium-sized life insurance companies to sign contracts with banks. The decline in new banking insurance channel orders is expected to narrow, but competition is also facing a fierce test.
The bank believes that although individual insurance channels have faced pressure from a high business base since the beginning of the year, the new order showed resilience against the backdrop of poor competitive financial management performance during the same period. Furthermore, real estate constraints are open, and the bottom of interest rates is clear. Current sector valuations outweigh the impact on performance, and long-term interest rates are the core of winners and losers. The 1Q24 quarterly report exceeds expectations and 2H24 will greatly catalyze the valuation of the current insurance sector, especially life insurance stocks, if the new “Ten National Rules” of insurance are implemented. Continue to recommend pure life insurance targets that fully benefit from the reversal of asset-side expectations from the bottom.