Bocom Intl said that looking at the growth rate of life insurance premiums, in the first half of 2024, Xinhua's year-on-year decrease was 8.4%, Taiping's year-on-year decrease was 1.2%, PICC remained flat, while China Life and Ping An increased by 4.1% and 5.1% respectively in year-on-year comparison. The total life insurance premiums of the five listed companies increased by 2.1% year-on-year, and the premium growth rate continued to rebound. In the first half of 2024, PICC, Ping An, and Taiping P&C insurance premiums increased by 3.7%, 4.1%, and 7.7% respectively. The premiums of PICC, Ping An, and Taiping motor insurance increased by 2.5%, 3.4%, and 2.8% respectively in year-on-year comparison, which slowed down compared to 2023 mainly due to a slowdown in new car sales.
The bank believes that for investment in insurance stocks, attention still needs to be paid to the asset side: the expectation of the Fed's interest rate cut is expected to provide a relatively favorable external environment for the Hong Kong and A-share markets; Long-term bond yields still have room for slight rebound from the current historical lows. Currently, the valuation of the life insurance industry is low, the dividend yield is attractive, and the buy ratings on Ping An (02318) and Taiping (02601) are maintained.