China's PICC Group nine-month net profit drops 32% on weaker investment returns

Overview

• China insurance group's nine-month insurance revenue rose 2.8% yr/yr

• Net profit attributable to owners fell 32% yr/yr on weaker investment performance

• Company says stable underwriting offset by lower investment returns amid market volatility

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• INVESTMENT RETURNS - Co said net profit fell due to weaker investment performance amid capital market volatility

• UNDERWRITING PROFITS - PICC P&C reported higher underwriting profits and a lower combined ratio

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for People's Insurance Company Group of China Ltd is HK$7.00, about 37.9% above its October 30 closing price of HK$5.08

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Reuters Recommended Reads

• Oct 28 - China's Ping An Insurance nine-month revenue falls 12.6%, profit drops 27.3%

• Oct 30 - Bank of China nine-month operating income rises 7%

• Oct 28 - China's Bank of Qingdao nine-month net profit rises 15.7%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)