According to Morgan Stanley, the average dividend yield of mainland insurance companies listed in Hong Kong this year is 6.4%.
Zhongtong Finance App learned that Morgan Stanley published a research report stating that China Life Insurance (01339) and PICC Property and Casualty Insurance (02328) announced the distribution of midterm dividends this year. People's Insurance Company of China is a state-owned enterprise directly owned by the Chinese government, with the Ministry of Finance holding 60.84% and the National Council for Social Security Fund holding 12.68%. The bank believes that it is reasonable for China Life Insurance to take similar steps.
The report pointed out that the faster-than-expected recovery of life insurance business, strengthened capital management policy and recovering product profitability will offset the potential risk of falling bond interest rates, and is expected to be a short-term catalyst for the distribution of midterm dividends by mainland insurance companies. Ping An Insurance A shares and H shares (02318) and China Life Insurance (02628) are rated as "shareholding" by the bank, and are preferred among mainland insurance companies.
The bank estimates that the average dividend yield of mainland insurance companies listed in Hong Kong this year is 6.4%. However, except for Ping An Insurance, no other mainland insurance companies have given detailed guidelines on shareholder returns for the next three years. The bank believes that these guidelines are the potential upside risks for mainland insurance companies to publish mid-term performance.