港股2019春季海外保险行业投资策略：基本面改善，板块投资价值提升.docxVIP

Overweight（Maintained Overweight （Maintained） Finance Spring Strategy of Investment in Insurance Industry in 2019： Improved Fundamentals, Higher Investment Value 4/22/2019 Analyst Analyst Zhang Yidong Deputy Head of Research at Industrial Securities Co. Ltd. General Manager of Overseas Market Research Center HYPERLINK mailto:zhangyd@ zhangyd@ SAC: S0190510110012 SFC: BIS749 In 2018, FYP growth rate of China Life, Ping An, CPIC (angents’ channel), China TAI PING, and PICC was -23.5%,+2.2%,-5.6%,-17.0%,-28.6% and -33.7%, respectively. Recovery of 2019 FYP growth rate stems from a low base. Commercial insurance and personal spending constituted 3.6% and 35.0% of national health expenditure in 2015, compared to 39.6% and 11.1% of USA of the same period. Proportion of personal Spending in national health expenditure is lower than 15.0% in welfare states. Fueled with increasing demands and supporting policies, health insurance will continue to be critical in the growth of FYP. Struactural change of FYP will lead to higher NBV margin in 2019. Contact Bo Zhang HYPERLINK mailto:zhangboyjs@ zhangboyjs@ SAC: S0190117050055 Contact Bo Zhang HYPERLINK mailto:zhangboyjs@ zhangboyjs@ SAC: S0190117050055 SFC: BMM189 PC Insurance: Regulators issued more strict regulation to push forward “Consistency in Reporting and Executing”, a self-regulatory policy. Net income of leading companies is likely to bottom out in the second half of 2019. Investment: Broadening Investment Categories, Stable Yield Expected in the Long-Run In Jananury 2019, CBIRC permit that insurance companies may invest in secondary capital bond and open-ended capital bond issusd by banks. In Feburary 2019, CBIRC speeded up its policy making in canceling industry restriction in financial equity investment and uniforming execution of strategic equity investment. New policies grant wider investment channels to Chinese insurance companies whose investment yield is expected to be stable. Our Perspective: