Insurance & Reinsurance 02 (Oct 14 - Dec 25)

[winston]

These Stocks Could Jump 12%

by Sean Michael Cummings

Insurance stocks have been “steady Eddies” for the past 52 years. On average, they have returned 3% a year.

But buying after an oversold bounce can quadruple that gain… Similar instances have led to 4% gains over three months, 7% gains over six months, and 12% gains over the following year.

Source: Daily Wealth

https://dailytradealert.com/2023/04/07/ ... d-jump-12/

[winston]

New business growth underestimated -China Insurance Sector

Market continues to underestimate lifers’ VNB growth potential, despite previous upgrades

Concern over cuts in assumed interest rates is overdone, as product remains competitive in the lower interest rate environment

Positive one-time impact to insurers’ book value seen from the adoption of IFRS 9/17

Recent share price pullback offers a good buying opportunity. BUY Ping An (2318 HK), AIA (1299 HK), and China Life (2628 HK)

Source: DBS

https://www.dbs.com/insightsdirect/scre ... rtid=40168

[winston]

Chinese rush to buy Hong Kong insurance, dollars as confidence cracks, yuan weakens

Chinese investors are rushing offshore to make dollar deposits and buy Hong Kong insurance in a signal domestic confidence is languishing and that the ailing yuan faces more pressure.

Consumer spending is flagging, the property market and stock markets are in the doldrums and cash is piling up in savings.

Investment in Hong Kong and Macau wealth products have more than doubled since the end of last year to 814 million yuan (US$110 million).

New premiums collected on Hong Kong insurance policies leapt a staggering 2,686 per cent to US$9.6 billion in the first quarter of 2023.

Source: CNA

https://www.channelnewsasia.com/busines ... ns-3609301

[winston]

Hong Kong insurance industry’s new capital rules will lift risk management standards as uncertainty grips capital markets

Hong Kong lawmakers earlier this month enacted new legislation that will introduce a risk-based capital regime for insurers next year

by Enoch Yiu

Source: SCMP

https://www.scmp.com/business/article/3 ... gn=3227737

[winston]

Natural disasters cost the world US$194b

Natural disasters are estimated to have cost US$194 billion (HK$1.51 trillion) in economic losses in the first half of the year, a 12-year-high.

Aon puts insured losses at US$53 billion, the fourth highest on record, citing storms in the US, earthquakes in Turkey, floods in New Zealand and the US, and wildfires in Canada.

Earthquakes in Turkey and Syria accounted for almost half of the total, with a recorded economic cost of US$91 billion.

"Severe impacts" are being anticipated from the upcoming El Nino weather system as he predicted warmer and drier conditions for Australia in the forthcoming months.

Source: The Standard

https://www.thestandard.com.hk/section- ... ld-US$194b

[winston]

Insurance – China / Hong Kong
Outstanding 1H23 Results From PICC P&C, Ping An And Prudential

PICC P&C, Ping An and Prudential, delivered impressive interim results, as reflected by
strong growth in their premium income and new business value.

In particular, the robust demand for saving products from China customers boosted the life insurers’ NBV with double-digit growth.

Meanwhile, PICC P&C’s underwriting profit benefitted from the economic reopening and better combined ratio.

Maintain OVERWEIGHT. Top picks: Ping An and Prudential.

Source: UOBKH

https://research.uobkayhian.com/content ... e639c7f1cb

[winston]

US 4Q Earnings

The yearly change in the motor vehicle insurance component of CPI (for November) was up 19.2%. From pre-covid levels, it was up 35%.

Guess which industry is expected to be the largest contributor of positive earnings growth in Q4? Insurance.

Insurance companies are expected to have grown earnings by 26% over the past year.

Source: Forbes

[winston]

Mainland Chinese customers spent US$7.6 billion on Hong Kong insurance policies last year, but sales to fall as ‘pent-up’ demand fades: watchdog

Sales to mainland visitors last year were particularly strong due to pent-up demand, the IA’s CEO says

Demand will return to the average level seen during the years before the pandemic, unlikely to go back to the high seen in 2016: Cheung

by Enoch Yiu

Source: SCMP

https://www.scmp.com/business/banking-f ... 6c82f670c0

[winston]

HK: Addressing MCV ‘pent-up demand’ concerns

We think investor concerns about exhaustion of MCV insurance ‘pent-upndemand’ are overdone and expect consensus VONB upgrades in 2024F.

We remain confident in the ‘green shoots’ emerging from the HK agent channel and see higher MCV VONB margins in HK for 2024F.

An imminent expansion of the Individual Visit Scheme is a positive, as MCV arriving under this scheme are more likely to buy HK insurance, in our view.

Reiterate Sector Overweight rating. Our top picks are AIA (TP HK$91) and Prudential.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... F6EF78AD28

[behappyalways]

Insurers Spy On Houses Via Aerial Imagery, Seeking Reasons To Cancel Coverage
https://www.zerohedge.com/personal-fina ... l-coverage