HK Stock Market Move | PICC P&C (02328) rises nearly 5% against the market trend, with a year-on-year net profit growth of over 30%. Institutions point out that its profit performance meets expectations.

PICC P&C (02328) rose nearly 5% against the market, rising 4.72% as of the release, to 15.08 Hong Kong dollars, with a turnover of 1.47 billion Hong Kong dollars. On the news front, recently, PICC P&C released its annual performance for the year ended December 31, 2024. The group achieved an original insurance premium income of RMB 538.055 billion, a year-on-year increase of 4.3%; underwriting profit of RMB 5.713 billion, a year-on-year decrease of 43.9%; net profit of RMB 32.161 billion, a year-on-year increase of 30.9%; basic earnings per share of RMB 1.446, with a proposed final dividend of RMB 0.332 per share. The announcement stated that in 2024, the company actively seized the opportunity of China's economic recovery and positive insurance market structural adjustments, adhered to being the best and strongest, steadily advanced business development, and achieved an original insurance premium income of RMB 538.055 billion, a year-on-year increase of 4.3%, maintaining the industry's leading market share. Operating efficiency steadily improved, with a combined ratio of 98.8%, underwriting profit of RMB 57.13 billion, total investment income of RMB 349.37 billion, net profit of RMB 32.161 billion, and a net asset return rate of 13.0%; the capital strength steadily increased, successfully issuing RMB 12 billion in capital replenishment bonds, maintaining sufficient and stable solvency; actively and steadily returning to shareholders, distributing a mid-term dividend of RMB 0.208 per share to shareholders, with the board of directors recommending a final dividend of RMB 0.332 per share. CICC released a research report stating that the company's premium income in 2024 increased by +4.3% year-on-year; the combined ratio (CoR) increased by +1.0ppt to 98.8% year-on-year, higher than expected, mainly due to natural disaster losses exceeding the bank's previous expectations. Net profit increased by +30.9% year-on-year to RMB 32 billion, in line with the bank's expectations; annual dividend per share increased by +10.4% year-on-year to RMB 0.54, slightly lower than the bank's expectations. The company's net profit increased by +30.9% to RMB 32 billion in 2024, mainly driven by the improvement in the stock market; total investment assets increased by 4.3% year-on-year, with a total investment yield of +2.0ppt to 5.5% year-on-year, showing a more stable investment compared to the life insurance industry in volatile markets and highlighting the advantages of the business model.