China's Insurance Industry Outlook: BofA Securities predicts that China's insurance industry may face net profit pressures this year, but sees potential for improved product structure and sales performance, particularly in dividend-paying critical illness products.
Sales and Profit Margin Expectations: Following interest rate cuts in September 2025, BofA expects sales of dividend products to rise, leading to increased profit margins and positive growth in first-year premiums.
Top Stock Picks: BofA Securities has identified CHINA LIFE and PICC P&C as top stock picks, maintaining a Buy rating for both, while adjusting target prices based on expected investment income.
Revised Target Prices: The target price for CHINA LIFE was raised from $29.3 to $33.1, while PICC P&C's target price remains at $20.9; other insurers like CPIC and PING AN also received target price increases with Buy ratings.
Wall Street analysts forecast 01339 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01339 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 01339 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01339 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 6.980
Low
Averages
High
Current: 6.980
Low
Averages
High
BofA Securities
BofA Securities
upgrade
Al Analysis
2026-01-06
Reason
BofA Securities
BofA Securities
Price Target
Al Analysis
2026-01-06
upgrade
Reason
The analyst rating from BofA Securities is based on the expectation that, despite current pressures on China's insurance industry net profit, there is potential for improvement in product structure and sales performance, particularly for dividend-paying critical illness products. The report anticipates that after interest rate cuts in September 2025, sales of these dividend products will improve, leading to increased profit margins and positive growth in first-year premiums. This optimistic outlook for future sales and profitability has led BofA Securities to rate several insurers, including CHINA LIFE and PICC P&C, as "Buy."
Citi
maintain
$21.2
2025-12-02
Reason
Citi
Price Target
$21.2
2025-12-02
maintain
Reason
Citi's analyst rating for PICC P&C is based on the belief that the investigation into Yu Ze will not impact the company's insurance business operations. They emphasize that PICC P&C, being a central state-owned enterprise, has a robust operational system in place. Additionally, Citi notes that the company's business outlook remains unchanged and will continue to benefit from favorable conditions due to strengthened regulatory underwriting. As a result, they have given PICC P&C a Buy rating with a target price of HKD21.2.
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BofA Securities
BofA Securities
Buy
maintain
2025-10-31
Reason
BofA Securities
BofA Securities
Price Target
2025-10-31
maintain
Buy
Reason
The analyst rating from BofA Securities for PICC GROUP is based on several positive financial indicators. The company reported a 29% year-over-year increase in net profit for the first nine months of 2025, driven by strong contributions from its Property and Casualty (P&C) business, which saw a 25% growth in underwriting profit for the third quarter. Additionally, investment income exceeded expectations, with a 42% year-over-year increase in the third quarter and a 60% increase for the first nine months. As a result, BofA raised its earnings forecasts for 2025-2027 and increased target prices for both H- and A-shares, leading to a reiterated "Buy" rating for the H-shares. However, the A-shares were rated as "Underperform" due to a higher projected price-to-book (PB) ratio.
BofA Securities
BofA Securities
Neutral
maintain
$7
2025-08-28
Reason
BofA Securities
BofA Securities
Price Target
$7
2025-08-28
maintain
Neutral
Reason
The analyst rating for PICC GROUP was reiterated as Neutral by BofA Securities due to a 14% year-over-year increase in net profit, steady growth in premiums, a 4% rise in the property and casualty insurance business, a decrease in the combined expense ratio to 94.8%, and a significant 27% increase in the value of new business in life insurance. Additionally, BofA Securities raised its target price for the company by 7%, reflecting a positive outlook while maintaining a Neutral stance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
