Huachuang Securities released a research report saying that the 2026H1 listed insurers generally saw a high increase in net profit, China Life Insurance's performance was outstanding, and the sector resonated with the equity market. However, the first half of the year was affected by capital and the “siphon” of the technology market, and the insurance sector continued to decline; since the second half of the year, it has moved from a “K-type” to a “rebalance”, and the insurance sector has already rebounded. Currently, most insurers' valuations are below the ten-year 50% quartile. Pessimistic expectations may have been fully reflected, and the bottom value is prominent. In the short term, the Q3 performance base of the overall sector is under relatively high pressure; in the long run, although the return on net investment is still on a downward channel, debt cost optimization hedges the pressure on interest spreads. The risk of “spread loss” is expected to converge, and the ability to manage capital and load linkage is expected to continue to improve, driving PEV valuation repair. In terms of financial insurance, risk reduction management service systems reduce payout rates, strict industry supervision promotes cost rate optimization, and COR improvements drive a steady rise in ROE and drive up PB.

Huachuang Securities released a research report saying that the 2026H1 listed insurers generally saw a high increase in net profit, China Life Insurance's performance was outstanding, and the sector resonated with the equity market. However, the first half of the year was affected by capital and the “siphon” of the technology market, and the insurance sector continued to decline; since the second half of the year, it has moved from a “K-type” to a “rebalance”, and the insurance sector has already rebounded. Currently, most insurers' valuations are below the ten-year 50% quartile. Pessimistic expectations may have been fully reflected, and the bottom value is prominent. In the short term, the Q3 performance base of the overall sector is under relatively high pressure; in the long run, although the return on net investment is still on a downward channel, debt cost optimization hedges the pressure on interest spreads. The risk of “interest spread loss” is expected to converge, and the ability to manage capital and load linkage is expected to continue to improve, driving PEV valuation repair. In terms of financial insurance, risk reduction management service systems reduce payout rates, strict industry supervision promotes cost rate optimization, and COR improvements drive a steady rise in ROE and drive up PB.