--- title: "UBS expects Ping An Insurance's new business value in the first quarter to grow by 20% year-on-year, with attractive valuation" type: "News" locale: "en" url: "https://longbridge.com/en/news/282657333.md" description: "UBS expects Ping An Insurance's new business value in the first quarter to grow by 20% year-on-year and believes its valuation is attractive. The company anticipates that the results to be announced on April 28 will show a 5% increase in after-tax operating profit, mainly driven by life insurance, asset management, and banking operations. Despite the weak stock market affecting profits, Ping An's after-tax earnings remain resilient. The outlook is optimistic, with an expected acceleration in after-tax operating profit growth by 2026. In terms of property and casualty insurance, the combined cost ratio is expected to decline" datetime: "2026-04-14T07:42:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282657333.md) - [en](https://longbridge.com/en/news/282657333.md) - [zh-HK](https://longbridge.com/zh-HK/news/282657333.md) --- # UBS expects Ping An Insurance's new business value in the first quarter to grow by 20% year-on-year, with attractive valuation Ping An Insurance (02318.HK) rose in the afternoon, currently reported at HKD 63.2, up 2.5%. UBS published a report stating that Ping An Insurance (02318.HK) will announce its first-quarter results for this year on April 28, estimating that the group's after-tax operating profit will grow by 5% year-on-year, mainly driven by life insurance, asset management, and banking businesses. The after-tax operating profit from life insurance shows an improving trend compared to previous years, because (1) the new business contract service margin (CSM) benefits from more stable interest rates, and (2) the scale of insurance asset management continues to expand. According to CITIC Securities (06030.HK), the preliminary after-tax profit for the first quarter increased by 55% year-on-year, providing a positive reference for Ping An Securities (asset management subsidiary). Ping An Bank (000001.SZ) seems to be recovering its profit growth according to guidance. The group's after-tax profit is expected to decline in the mid-to-high single digits year-on-year, mainly dragged down by a weak stock market (e.g., the CSI 300 index fell by 3.9%; compared to a 1.2% decline in the first quarter of 2025). Due to a high proportion of FVOCI (financial assets measured at fair value with changes recognized in other comprehensive income) in stock holdings (57% in 2025; major peers range from 19% to 37%), and a low base, Ping An's after-tax profit is relatively more resilient. Looking ahead, the bank expects Ping An's after-tax operating profit growth rate to accelerate year-on-year, predicting a 10% increase in 2026. The bank estimates that the new business value of Ping An in the first quarter of 2026 will grow by 20% year-on-year, with exceptionally strong growth driven by the following factors: (1) deposit migration trends, (2) multi-channel strategies, and (3) "jumpstart sales." Meanwhile, the company's profit is expected to decline year-on-year, reflecting: (1) a shift in product mix to meet evolving customer demands (e.g., participating products/short-term savings), and (2) adverse changes in actuarial assumptions at the end of 2025 (e.g., higher capital costs for equity allocation, medical inflation, policy lapses). In the property and casualty insurance business, the bank expects the combined cost ratio to decrease by 0.5 percentage points year-on-year to 96.1%, mainly benefiting from: (1) improvements in cost and operational efficiency, and (2) potentially reduced losses from natural disasters. The bank believes that Ping An's valuation is quite attractive, with a price-to-book ratio of 0.87 times, an operating profit multiple of 6.2 times, and a dividend yield of 5.3% in 2026, expecting a compound annual growth rate of 10% for its operating profit from 2025 to 2030. The dividend yield for 2026 (H shares) is 5.3%, with a clear dividend policy. The bank maintains its target price at HKD 88, with a rating of "Buy." ### Related Stocks - [PNGAY.US](https://longbridge.com/en/quote/PNGAY.US.md) - [02318.HK](https://longbridge.com/en/quote/02318.HK.md) - [601318.CN](https://longbridge.com/en/quote/601318.CN.md) ## Related News & Research - [China's Ping An Insurance Shifts to AI Agent-Centric Services, CTO Says](https://longbridge.com/en/news/282647272.md) - [Ping An Sets Detailed Mandate for Nomination and Remuneration Committee](https://longbridge.com/en/news/280617852.md) - [Ping An Sets April Board Meeting to Approve First-Quarter 2026 Results](https://longbridge.com/en/news/280623853.md) - [What would happen if all personal wealth over $100 million was invested in infrastructure instead?](https://longbridge.com/en/news/282424163.md) - [Ping An Publishes Audited 2025 Results and Full Annual Report](https://longbridge.com/en/news/280602777.md)