【招银国际】4Q24 insurance funds: industry financial rate of return extended rally in a five-quarter streak-250225（5页）.pdf

1、 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG:RESP CMBR OR http:/.hk 1 25 Feb 2025 CMB International Global Markets|Equity Research|Sector Update China Insurance 4Q24 insurance funds:industry financial rate of return extended rally in a fiv

2、e-quarter streak Total insurance funds amounted to RMB 33.26tn in 4Q24,up 15.1%YoY,fuelled by the surge of insurance premium growth(+11.2%in FY24)over the year.The growth of insurance fund returns accelerated from 3Q24,given industry financial rate of return(FRR)and comprehensive rate of return(CRR)

3、at 3.43%/7.21%in 4Q24,+1.2pct/+4.0pct YoY(vs 3Q:+0.2pct/+3.9pct).In 4Q24,FRR and CRR rose 0.31pct/0.05pct QoQ,on top of a sharp upturn driven by 3Q equity market.Life FRR extended the third-quarter rally to 3.48%(+1.2pct YoY/+0.4pct QoQ),and CRR has been above 7%for four consecutive quarters to 7.45

4、%in 4Q24.We see the uptrend of life investment yields as a combined effect of increased allocations to bonds and stocks,which were up 26.3%/28.3%YoY to RMB15.1tn/RMB 2.3tn,making up 50.3%/7.6%of total funds in 4Q24.For 2025,we expect the widely-concerned spread loss risk of life insurers due to the

5、downtrend of interest rate could be offset by equity gains.Beyond that,we see three trends on insurance funds incl.1)increased allocations to high dividend yield stocks(HDY)under OCI;2)build-up of gold portfolios among top players;and 3)establishment of private securities investment funds to be cate

6、gorized into long-term equity(LTE).Maintain sector OUTPERFORM.Life/P&C insurance portfolio mix:In 4Q24,we see notable increases in bond and stock investments for both life and P&C portfolios.For life funds,bonds and stocks rose 26.3%/28.3%YoY to RMB 15.1tn/2.3tn by end-FY24,accelerating from 3Q24 at