: Initiate coverage of New China Insurance with a "buy" rating, rapid development of the bancassurance channel in recent years.

Huayuan Securities research report pointed out that the first quarter of 25 years of Xinhua Insurance's net profit attributable to mothers increased by 19% to 58.8 billion yuan year-on-year, while the net assets attributable to mothers decreased by 17% to 79.85 billion yuan compared to the beginning of the year. The new business value increased by 67.9% year-on-year, with overall good performance. It is speculated that the increase in net profit attributable to mothers is mainly due to two reasons. On the one hand, the insurance service performance achieved a 5.2% increase driven by a 28% year-on-year increase in original premiums. On the other hand, in 25Q1, Xinhua Insurance's annualized total investment yield increased by 1.1 percentage points compared to the same period last year to 5.7%, corresponding to an 14.4% increase in insurance investment performance to 24.7 billion yuan. In recent years, Xinhua Insurance has developed rapidly in the banking and insurance channels. With multiple favorable factors such as the convergence of banking and insurance, the proportion of new business value contributed by the banking and insurance channels to the entire company has rapidly increased from 13.5% in 23 years to 40% in 24 years. In 25Q1, the good trend continued, with long-term insurance single premium growth of 94.5% year-on-year to 7.42 billion yuan. It is believed that the company may increase its capital strength through the issuance of perpetual bonds in the future. First coverage, with a "buy" rating.