Guotai Haitong has released a research report stating that, from the liability side, robust savings demand is expected to drive continued growth in the New Business Value (NBV) of listed insurers in 2026, while the underwriting profitability of property and casualty insurance continues to improve. On the investment side, insurers are anticipated to steadily increase their allocation to equity assets, improve the asset-liability duration gap, and promote stable profit growth. The firm maintains an "Overweight" rating on the sector and recommends stocks including PING AN (02318), CPIC (02601), NCI (01336), PICC P&C (02328), CHINA LIFE (02628), and PICC GROUP (01339). Key views from Guotai Haitong are as follows:
Short-term valuation pressure does not alter the expectation for profit improvement. From March 2 to March 13, the Shenwan Insurance Index (801194.SI) fell from 1401.76 to 1369.48, a decline of 2.30%. During the same period, the CSI 300 fell 1.26%, the Shanghai Composite Index dropped 2.08%, and the Hang Seng Index declined 2.28%. The institution believes that trading-related concerns—more likely apprehensions than actual trading pressures—are the core factor behind the divergence between improving corporate profits and stock prices. Assuming stable interest rates and a slow bull market in equities, the insurance sector's profit improvement appears highly certain, with low-valuation insurance stocks expected to see a valuation recovery.
Policy reports guide the insurance industry toward high-quality development. Bancassurance new business premiums are strong, and multiple insurers are advancing capital replenishment this year. 1) The 2026 Government Work Report mentioned insurance multiple times, covering key areas such as livelihood security, rural revitalization, and risk prevention, outlining goals for high-quality development focused on improving quality, expanding coverage, and mitigating risks. 2) According to Caixin reports, 79 life insurance companies collectively generated 69 billion yuan in new premium income through bancassurance channels in February 2026, a year-on-year increase of 6.9%. Cumulative new premiums for January-February reached 281.4 billion yuan, up 21.7% year-on-year. 3) The People's Bank of China released balance sheet data for financial institutions for the fourth quarter of 2025, showing total assets of insurance institutions at 41.31 trillion yuan, a 15.1% year-on-year increase. 4) Insurers including NCI, Zhonghui Life Insurance, and China Life Reinsurance have invested in the Beijing-Tianjin-Hebei Venture Capital Guidance Fund Partnership. 5) Six insurance institutions, including Ping An Life and Dajia Property & Casualty Insurance, have advanced capital increases this year, involving a total scale exceeding 5 billion yuan.
New management appointed at Taiping Life; ZhongAn Insurance launches "ZhongMinBao Mid-to-High End Medical Insurance 2026" product. 1) Taiping Life issued an interim information disclosure report stating that the National Financial Regulatory Administration has approved Wang Xuze as the company's General Manager. 2) ZhongAn Insurance launched the "ZhongMinBao Mid-to-High End Medical Insurance 2026," further enhancing the insurance protection system for mid-to-high-end customers with pre-existing conditions.
Risk warnings include a decline in long-term interest rates, volatility in the equity market, and slower-than-expected improvement in liability costs.
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