PICC Group Shares Surge Over 3% in Morning Session; Q1 Performance Impacted by Market Volatility, Institutions See Potential for Dual Improvement in Assets and Liabilities

Stock News05-12

PICC Group (01339) rose more than 3% in the morning session. As of writing, the stock was up 3.24% to HK$5.73, with a turnover of HK$224 million.

In terms of news, PICC Property and Casualty Company reported a first-quarter net profit attributable to shareholders of RMB 8.81 billion, a year-on-year decrease of 31.4%. This was primarily due to capital market volatility stemming from external geopolitical conflicts and other factors. PICC Group recently stated on an interactive platform that recent short-term market fluctuations do not alter the company's trend toward high-quality development. In response to changing market conditions, the company will proactively take effective measures to strive for stable growth in its full-year performance.

Changjiang Securities noted that it is optimistic about the potential for a dual improvement in assets and liabilities going forward. The company's property and casualty insurance business is a well-deserved market leader with solid competitive advantages. As the structure of auto and non-auto insurance businesses continues to optimize and cost control measures show results, underwriting profitability continues to be validated. On the life insurance side, efforts in the bancassurance channel and significant improvements in quality have driven strong growth in New Business Value (NBV). On the asset side, the company has actively seized opportunities in the equity market to enhance returns. The firm remains positive about the performance growth and valuation upside potential brought by improvements on both the asset and liability sides of PICC Group.

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