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As China’s largest nonlife insurer, majority-state-owned PICC P&amp;C boasts first-mover advantage in major P&amp;C insurance products, thanks to its extensive rural network and strong government support.Auto insurance represents over 70% of the firm's total premium. During 2015-18, the regulator introduced three rounds of auto insurance pricing reforms, leading to lower average premium per car. The third round of pricing reform is ongoing, which is now on trial in three areas including Shanxi, Guangxi…

Thanks to improved investment income, the year-on-year decline in no-moat PICC P&amp;C's first-quarter net profit narrowed to 3.6% from 22% in 2018. Quarterly results were mixed, with accelerating growth in premium income and a reduction in commission expenses. However, we’re a bit disappointed to see a rising combined ratio. The combined ratios of auto insurance and nonauto insurance climbed to 99% and 97.4% in the first quarter from 96.7% and 93.4% in the year-ago period. Given that the results…

No-moat PICC P&amp;C's first-half net profit growth was solid, with premium growth increasing to 17% from 11.6% in the year-ago period. Top-line growth and underwriting margin were in line with our expectation, representing 47% and 66% of our full-year forecast, respectively. However, net profit growth was a bit disappointing at 0.1% versus 17% in the first quarter, primarily driven by a 55% increase in tax expenses, as selling expenses, which exceeded the regulatory ceiling, were not tax-deducted…

No-moat PICC P&amp;C’s brief financial summary showed net earned premium over the first quarter growing 20% from the year-ago period. Growth in net profits is in line with our expectation, increasing 17% to CNY 5.4 billion and contributing 25% of our full-year net profit forecast at CNY 21.3 billion. The 20% premium income growth was better than our expectations, and we suspect this was attributable to stronger growth in auto insurance premium after the second round of auto pricing reform. Hence, we…

Despite limited disclosure, PICC P&amp;C’s third-quarter financial data came in better than we expected. The results highlighted accelerating premium growth and improving underwriting margin from the year-ago period. We increase PICC P&amp;C’s fair value estimate to HKD 17.50 per share from HKD 16 per share as we increase our premium growth assumption and fine-tune the underwriting margin assumption for the next two years. Third-quarter net earned premium grew 15.9%, up from 11.7% in the first half…

China

PICC Property and Casualty Company Limited provides insurance services. The Company provides property loss insurances, liability insurances, credit insurances, accidental injury insurances, short term health insurances, guarantee insurances, and other insurance products. PICC Property and Casualty also operates investment businesses.

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