UBS has revised its report, announcing a 19% increase in the net profit forecast for PICC P&C (02328) for 2025. However, UBS is cautious regarding the dividend growth, believing it may not keep pace with earnings growth. The current forecast estimates a 20% year-on-year increase in dividends to RMB 0.65, resulting in a dividend yield of approximately 3.8%. The target price has been adjusted from HKD 21.8 to HKD 22.5, maintaining a "Buy" rating. PICC P&C has issued a profit alert, expecting a year-on-year net profit increase of 40% to 60% for the first nine months, which translates to a significant year-on-year rise of about 50% to 108% for the third quarter, reaching between RMB 14 billion and RMB 19 billion. This could mark the strongest third-quarter performance in history. UBS believes that the better-than-expected third-quarter performance in property insurance is driven by a turnaround in underwriting profits and robust investment income growth. The bank estimates an improvement of 1.7 percentage points in the combined loss ratio for the first nine months, now at 96.5%, and anticipates sustained year-on-year improvement in the fourth quarter’s combined loss ratio.