Guangfa Securities: The trend of residents transferring their deposits remains unchanged. Both personal insurance and bancassurance are expected to continue to perform well.

Guangfa Securities research report stated that Ping An Life continues to increase its holdings of China Life's H shares, expressing optimism about the long-term business development of insurance companies. It is expected that the first quarter financial reports of the insurance sector are likely to exceed expectations, and it is recommended to actively pay attention to the insurance sector. Prior to this, the market was relatively pessimistic about the growth rate of first quarter net profits of the insurance sector, with a generally expected decline in the high double-digit range. However, we predict that the overall first quarter financial reports of insurance companies are likely to outperform market expectations. Firstly, we expect that the growth rate of net profits attributable to shareholders of insurance companies is expected to be around single-digit negative growth, with some companies expected to achieve growth, reflecting the strong resilience of insurance companies' asset side in market fluctuations, rather than just following the market. Secondly, there is new growth in new policies due to the high willingness of residents to save. The trend of residents moving their savings remains unchanged, highlighting the advantages of floating returns on dividend-linked policies. Individual insurance and bancassurance are expected to continue to perform well, and the liability side is expected to continue to show good growth trends by 2026.