PICC P&C (02328) experienced a sharp rebound after opening lower, surging over 6% in early trading on the Hong Kong Stock Exchange. As of the latest report, the stock was up 6.19% at HK$15.96, with a turnover of HK$324 million.

The rally comes as the company’s interim results approach, with several brokerages releasing ahead-of-earnings reports. Dongwu Securities noted that the company’s underwriting performance is expected to improve year-on-year, while investment returns are likely to see a significant boost, reinforcing their positive outlook on the insurer’s long-term growth momentum.

Guolian Minsheng Securities added that both the asset and liability sides of the company are anticipated to improve compared to the same period last year, potentially driving a solid increase in net profit.

According to a report from GF Securities, data from the Ministry of Emergency Management shows that cumulative natural disaster economic losses in China for the first half of the year totaled RMB 42.14 billion, down 22.1% year-on-year. This decline in overall natural disaster impacts is expected to help improve the company’s claims payout ratio in the first half, building on an already low base from the previous year. While the frequency of natural disasters such as typhoons, heavy rains, and floods has increased since the third quarter, raising market concerns about a potential rise in periodic claims, GF Securities believes the overall claims burden remains manageable.