The YTD Chinese life insurer performance has belied JPMorgan's constructive view on the sector, as the broker initially expected a life sales revival after the pandemic. PING AN (02318.HK) was the sector top-pick for outperformance. The YTD price performance has reflected that all other Overweight calls (except PICC P&C (02328.HK)) have fallen behind the market, particularly Ping An Group A/H-shares.
After a tough year which has tested life insurers' floor valuation, the broker continued to prefer Ping An H-shares and PICC P&C. The broker may consider turning positive on other life insurers should further property-related data be disclosed in 3Q/4Q21 result release, but will not chase other shares now.