On June 18, New China Life Insurance fell 3.17% in regular trading, trading at 50.65 HKD/share, with turnover of 117 million HKD. The broader insurance sector came under significant selling pressure.
On the news front, the market has growing concerns over the quality of insurers' first-quarter earnings. While New China Life reported a 10% year-over-year increase in attributable net profit for Q1, its total investment income plunged 57% year-over-year. Profit growth was primarily driven by reduced insurance service costs and a sharp contraction in underwriting financial gains and losses, rather than any improvement on the investment side. With the equity market remaining broadly weak in Q2, the investment income outlook for insurance companies faces continued headwinds, prompting a reassessment of sector valuations.
Within the Life and Health Insurance sector, declines were widespread. Among peers, China Life fell 4.27%, Ping An fell 2.94%, China Taiping fell 2.82%, Sunshine Insurance fell 2.78%, and AIA fell 1.53%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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