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JPM Bullish on Core Earnings Growth Outlook for CN Insurers, Top Picks CHINA LIFE & PING AN
2026-05-05 11:55:46
JP Morgan said in a report that major Chinese life and non-life insurers posted robust core solvency in 1Q26, averaging 139% and 195%, respectively. Life insurers also resumed disclosure of the "residual margin", which had been suspended since December 2022 in light of its broad replacement by the "contractual service margin" (CSM) under IFRS 17.

The broker's analysis showed that, except for PING AN (02318.HK), the reserve balances of other major insurers demonstrated relative resilience compared with December 2022, suggesting a positive outlook for core earnings growth. Except for PICC GROUP (01339.HK), major life insurers only slightly increased their equity market risk exposure, indicating a less active allocation to the stock market compared with 4Q25.

The broker's sector top picks are CHINA LIFE (02628.HK) and PING AN.

JPM's latest investment ratings and target prices for H-share Chinese insurers are as follows:

Stock | Investment Rating | Target Price
CHINA LIFE (02628.HK) | Overweight | HKD40
PING AN (02318.HK) | Overweight | HKD90
CPIC (02601.HK) | Overweight | HKD43
NCI (01336.HK) | Neutral | HKD45
PICC GROUP (01339.HK) | Neutral | HKD5.8

PICC P&C (02328.HK) | Neutral | HKD14
ZA ONLINE (06060.HK) | Overweight | HKD24
CHINA RE (01508.HK) | Neutral | HKD1.6
CHINA TAIPING (00966.HK) | Overweight | HKD30
SUNSHINE INS (06963.HK) | Underweight | HKD3
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AASTOCKS Financial News
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