<div id="readability-page-1"><div>CICC earlier published a report stating that Chinese insurers will begin announcing their 1Q26 results next Tue (28th). The broker expects industry net profit attributable to shareholders to decline 19% YoY, while life insurance new business value (NBV) will increase 13% YoY. For property and casualty insurers, the combined ratio (CoR) is projected to decline 0.4 ppts YoY.Single-quarter earnings are generally under pressure due to equity market volatility. CICC forecasts the YoY growth in 1Q26 net profit attributable to shareholders for individual companies as follows: China Taiping (00966.HK) +0.740 (+3.599%) Short selling $21.59M; Ratio 14.433% +3.0%, China Pacific Insurance (02601.HK) +0.360 (+1.117%) Short selling $12.27M; Ratio 12.837% -4.7%, Ping An Insurance (02318.HK) +0.350 (+0.577%) Short selling $125.46M; Ratio 23.943% -6.2%, Sunshine Insurance (06963.HK) -0.050 (-1.408%) Short selling $1.26M; Ratio 9.909% -12.0%, PICC Property and Casualty (02328.HK) +0.210 (+1.495%) Short selling $17.91M; Ratio 16.370% -19.8%, PICC Group (01339.HK) 0.000 (0.000%) Short selling $14.02M; Ratio 19.029% -32.8%, New China Life Insurance (01336.HK) +0.620 (+1.272%) Short selling $63.84M; Ratio 28.426% -37.1%, and China Life (02628.HK) +0.400 (+1.493%) Short selling $180.80M; Ratio 36.882% -42.1%.CICC noted that insurers or groups primarily engaged in life insurance are more affected by equity market volatility due to higher financial leverage. China Life recorded a high base in the same period last year due to reversals of loss-making policies driven by rising interest rates, resulting in a more pronounced YoY decline. In terms of net profit attributable to shareholders excluding one-off items, the broker expects Ping An Insurance and China Pacific Insurance to rise 7% and 6% YoY, respectively. As an indicator of insurers' core earnings, operating profit remains relatively resilient, mainly benefiting from stabilization and improvement on the liability side in recent years.The positive trend in NBV continues. CICC expects 1Q26 NBV YoY growth for individual companies as follows: China Life +30%, Ping An Insurance +18%, China Pacific Insurance +11%, Sunshine Insurance +9%, New China Life Insurance +6%, and China Taiping +3%. China Life and Ping An Insurance are mainly driven by strong bancassurance growth, while other companies have seen relatively slower growth in bancassurance. However, Ping An Insurance adjusted certain non-financial assumptions at end-2025, leading to negative impacts on value margins. In addition, China Pacific Insurance and Sunshine Insurance recorded faster growth in the individual agent channel, supporting steady overall value growth.Combined ratios broadly improved, while premium growth faces short-term pressure. CICC expects 1Q26 CoR and YoY changes for major property insurers as follows: PICC Property and Casualty 94.2% (-0.3 ppts), Ping An P&amp;C 96.1% (-0.5 ppts), and CPIC P&amp;C 97.1% (-0.3 ppts). (wl/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-24 12:25.)</div>This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.</div>

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CICC forecasts a 19% YoY decline in net profit for Chinese insurers in 1Q26 due to equity market volatility, while life insurance new business value (NBV) is expected to rise 13% YoY. The report highlights individual company projections, with China Life and Ping An Insurance showing strong growth in bancassurance. Combined ratios for major property insurers are improving, but premium growth faces short-term challenges. Overall, operating profit remains resilient, benefiting from recent stabilization in liabilities.

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CICC Expects CN Insurers' 1Q26 Net Profit to Fall 19% YoY on Equity Market Impact; New Business Value Trend Remains Solid