JPMorgan released a research report stating that the core solvency ratios of several Chinese insurers declined quarter-on-quarter in Q3, with an average drop of 9 percentage points. The rebound in domestic bond yields negatively impacted solvency, though strong earnings and reserve growth helped mitigate the effect. The firm favors CHINA LIFE (02628) due to its robust profitability and conservative solvency capital management. It also prefers PING AN (02318), citing its leading projected dividend yield of 6% for next year among peers.

The report noted that major Chinese life and non-life insurers saw Q3 core solvency ratios fall by 16 percentage points and rise by 3 percentage points quarter-on-quarter, respectively. Insurers have taken measures in response, including issuing perpetual bonds, reducing equity risk exposure, and broadly cutting non-standard asset holdings. Despite strong earnings growth in the first three quarters, solvency capital volatility may become a key offsetting factor for year-end dividend forecasts, particularly for small and mid-sized life insurers.