CICC released a research report indicating that under comparable metrics, the NBV (New Business Value) growth rates of Chinese life insurers in the first nine months of 2025 were as follows: PICC Life (+76.6%) > Ping An (+46.2%) > China Life (+41.8%) > CPIC (+31.2%). Considering the "deposit migration" trend amid a low-interest-rate environment and industry-wide high-quality development driven by measures like "unified reporting," CICC maintains an optimistic outlook on the liability-side trends of leading insurers.

For property insurers, the combined ratios (CoR) of PICC P&C, Ping An P&C, and CPIC P&C improved by -2.1, -0.8, and -1.1 percentage points year-on-year to 96.1%, 97.0%, and 97.6%, respectively. With regulatory measures such as comprehensive non-auto insurance governance now in place, leading P&C insurers still have room for further profitability improvements.

Key takeaways from CICC: 1. **NBV Sustains High Growth; Optimistic Liability-Side Outlook** The strong NBV growth reflects robust performance, with Ping An and CPIC also seeing new business value margins rise by +7.6ppt and +1.7ppt year-on-year to 25.2% and 18.0%, respectively, under first-year premium metrics.

2. **P&C CoR Continues to Improve; Non-Auto Insurance Reforms Bring Positive Changes** The CoR improvements highlight operational efficiency gains, and further enhancements are expected as regulatory reforms take effect.

3. **High Net Profit Growth and Rising Net Assets** Strong equity markets boosted investment returns, with China Life and New China Life posting annualized total investment yields of 6.4% (+1.0ppt YoY) and 8.6% (+1.8ppt YoY), respectively. CPIC and PICC saw non-annualized total investment yields rise by +0.5ppt and +0.8ppt to 5.2% and 5.4%, while Ping An’s non-annualized comprehensive investment yield increased by +1.0ppt to 5.4%. This drove significant net profit growth and quarter-on-quarter net asset expansion.

4. **Liability-Side Impact on Stock Prices May Strengthen** CICC suggests that the investment return-driven rally may be nearing its end, with weaker asset-side elasticity likely due to high comparables. The liability side’s influence on insurance stock prices could grow, making insurers with optimized product structures, lower costs, and strong growth trends more attractive. Top picks remain Ping An Insurance (601318.SH), China Taiping (00966), CPIC (601601.SH), China Life (02628), and PICC Group (01339).

**Risk Factors**: Lower-than-expected new premium growth; significant interest rate and capital market volatility; policy uncertainty; natural disasters.