Citigroup released a research report stating a 'buy' rating for China Taiping (00966). The company disclosed the third-quarter solvency report of its mainland subsidiaries, with both net profit and net assets reported according to the new accounting standards. Taiping Property & Casualty Insurance and Taiping Pension Insurance turned profitable in the third quarter, with profits reaching 0.197 billion yuan and 36 million yuan, respectively, better than the third quarter of 2023.
The bank pointed out that the book value of the company's retirement, reinsurance, domestic property insurance, and life insurance businesses increased by 2%, 2%, 1%, and 1% respectively in the third quarter. By the end of the third quarter, the core solvency of the life insurance business decreased by 4 percentage points quarterly, still maintaining a good level of 150%, while the solvency of the reinsurance, domestic property insurance, and retirement subsidiaries increased by 11 percentage points, 8 percentage points, and 5 percentage points quarterly, reaching 134%, 165%, and 198% respectively.
