GTHT released a research report stating that PICC P&C (02328) has actively responded to the "reporting-compliance integration" policy for non-auto insurance and expanded into overseas markets, showing optimism about premium growth and COR improvement. The firm maintains its EPS forecasts for 2025-2027 at RMB 2.14, 2.40, and 2.55, respectively, and keeps the 2025 P/B ratio at 1.6x, with a target price of HK$22.82. GTHT expects further improvement in underwriting profitability driven by comprehensive governance in non-auto insurance. The company is anticipated to strictly implement regulatory requirements, deepen governance in non-auto insurance, and achieve better-than-industry underwriting profits, maintaining an "Overweight" rating.
Key points from GTHT are as follows:
**Event:** On November 7, PICC Group/PICC P&C held a 2025 Capital Markets Open Day, showcasing high-quality development in non-auto insurance and exploration of overseas business expansion plans.
**Non-Auto Insurance Offers Broad Growth Potential, Likely to Become a Second Growth Driver for Premiums and Profits** Currently, non-auto insurance is a major contributor to the property insurance industry's premiums. As of September 2025, non-auto insurance premiums reached RMB 687.6 billion, accounting for 50.1% of total property insurance premiums. Commercial non-auto insurance, personal non-auto insurance, health insurance, and agricultural insurance are expected to maintain strong growth potential during the "15th Five-Year Plan" period. However, past irrational competition and excessive internal rivalry in the non-auto insurance market have led to high expense ratios, insufficient premium adequacy, and sustained underwriting losses, indicating room for improvement. On October 10, 2025, the Financial Regulatory Authority issued the "Notice on Strengthening Supervision of Non-Auto Insurance Business," clarifying the "reporting-compliance integration" requirements, which will take effect in November. As an industry leader, PICC P&C has proactively implemented regulatory requirements, exploring ways to make non-auto insurance a key driver for premium and profit growth in the "15th Five-Year Plan" and beyond.
**Company’s Competitive Edge in Non-Auto Insurance and Active Expansion into Overseas Markets** PICC P&C has continuously improved its customer operations and business process management in non-auto insurance, building six competitive advantages: 1) Precise and rapid pricing capabilities based on multi-line actuarial models and intelligent pricing strategies. 2) Comprehensive channel development capabilities. 3) Rigorous underwriting operations through an independent underwriting team and a systematic expense management system. 4) Professional claims services. 5) Robust reinsurance support. 6) Cutting-edge risk mitigation services powered by the "Wanxiang" technology platform.
Additionally, the company actively responds to national policies and the risk protection needs of Chinese enterprises expanding overseas. It has established four pillars—centralized risk control, insurance solutions, sales and business collaboration, and a global service network—to deepen its overseas presence and create new premium growth opportunities.
**Risk Warnings:** Frequent natural disasters; declining long-term interest rates; volatility in equity markets.