Huachuang Securities: The first performance report of the transformation of dividend insurance. The decrease in life insurance in January and February narrowed compared to the previous month.

Huachuang Securities released a research report stating that the New Year in 2025 faces multiple challenges, with the transformation of products towards variable income products such as dividend insurance as the representative, and the scheduled interest rate decreasing compared to the same period last year. At the same time, the agency channel is gradually implementing the convergence of reporting and banking. In the short term, overall sales performance appears flat, but there is differentiation within the industry, with some insurance companies adopting differential pricing strategies to balance volume and price growth. Regarding property insurance, the median prosperity remains the same, with the core focus still on the variables of insurance for new energy vehicles and changes in COR. It is expected that the construction of a top risk reduction service system can improve the ability to respond to major disasters, promoting stable profitability. The main views of Huachuang Securities are as follows: Industry Overview: Premiums have slightly decreased, and the growth rate of life insurance is affected by factors such as transformation In January-February 2025, the insurance industry achieved original premium income of 1.5154 trillion yuan, a year-on-year decrease of 1.2%. Among them, the total premium of life insurance (including health insurance and accident insurance of property insurance companies) was 1.2716 trillion yuan, a year-on-year decrease of 2.2%; and the premium of property insurance was 243.8 billion yuan, a year-on-year increase of 4.4%. Premium growth is under pressure, mainly in life insurance, with a premium of 102.09 billion yuan in January-February, a cumulative year-on-year decrease of 3.5%; health insurance and accident insurance both achieved growth, with health insurance at 234.6 billion yuan (up 3.6% year-on-year) and accident insurance at 16.1 billion yuan (up 5.2% year-on-year). In terms of claims, the cumulative claims expenditure in January-February was 599.8 billion yuan, accounting for 40% of the original premium income. The claims ratio of property insurance was 55%, and that of life insurance was 37%. Life Insurance Companies: The decline in life insurance narrowed compared to the previous month, health insurance achieved growth In January-February 2025, life insurance companies achieved original premium income of 1.1951 trillion yuan, a year-on-year decrease of 2.6%. Among them, life insurance decreased by 3.5% year-on-year, while health insurance increased by 3% year-on-year. Accident insurance decreased by 1.4% year-on-year. Life insurance premium decreased year-on-year, mainly due to factors such as the first year of transformation to dividend insurance, a decrease in scheduled interest rates, and the convergence of individual insurance channels. On a month-on-month basis, under the pressure of the base, the decline in the premium of life insurance in January-February narrowed compared to January, which may reflect the gradual adjustment of sales. The new premium of universal insurance and the independent account of investment-linked insurance both decreased year-on-year, with cumulative premiums in January-February down by 6.4% and 4.8% year-on-year, respectively. Property Insurance Companies: Stable growth in car insurance, non-car insurance growth mainly from health insurance In January-February 2025, property insurance companies achieved original premium income of 320.3 billion yuan, a year-on-year increase of 4.7%. Among them, car insurance accounted for 45%, health insurance 21%, liability insurance 8%, agricultural insurance 7%, and accident insurance 3%. Car insurance achieved stable growth, with cumulative premiums of 143.1 billion yuan in January-February, a year-on-year increase of 4.4%. The total sales of automobiles in January-February was 455 billion yuan, a year-on-year increase of 13.2%; among them, the sales of new energy vehicles was 184 billion yuan, a year-on-year increase of 52.2%, maintaining high growth and continuously contributing to the increase in the field of car insurance. The cumulative premium of non-car insurance increased by 5% year-on-year, with growth mainly coming from accident insurance and health insurance, up 11% and 5.1% year-on-year, respectively; in addition, agricultural insurance increased by 4.4% year-on-year, and liability insurance increased by 4.1% year-on-year. Asset changes As of the end of February 2025, the total assets of the insurance industry reached 36.88 trillion yuan, an increase of 2.7% from the end of the previous year, mainly from the increase in new premiums and the appreciation of equity investments. Among them, life insurance companies had 32.42 trillion yuan, an increase of 2.8% from the end of the previous year; property insurance companies had 2.99 trillion yuan, an increase of 3.2% from the end of the previous year; reinsurance companies had 815.4 billion yuan, a decrease of 1.5% from the end of the previous year; and insurance asset management was 130.6 billion yuan, an increase of 2.3% from the end of the previous year. As of the end of February 2025, the net assets of the insurance industry reached 3.35 trillion yuan, an increase of 0.7% from the end of the previous year. Risk warning: Regulatory changes, increased natural disasters, continued decline in long-term interest rates, and volatility in the equity market.