Since January this year, China Pacific Insurance (Group) Co.Ltd(601601) H shares have been increased by the company’s executives for many times! What’s the signal behind it?
According to the website of the Shanghai Stock Exchange, recently, fu fan, President of China Pacific Insurance (Group) Co.Ltd(601601) and Yu Bin, vice president of China Pacific Insurance (Group) Co.Ltd(601601) have increased their holdings of H shares of the company. They jointly increased their holdings of 87600 shares, with a total increase of about HK $2.05 million.
In 2021, the insurance industry experienced a painful period of transformation, and the overall performance of the insurance sector was poor. After a sharp correction, the valuation of the sector has been at the bottom of history. In the recent market correction, the insurance sector rose against the trend, superimposed with the increase of executives’ holdings in the company’s share price, does it mean that the insurance sector seems to have a turning point?
the president of the company increased his holdings of for four consecutive times in the month
according to the data of Shanghai Stock Exchange, since this year, China Pacific Insurance (Group) Co.Ltd(601601) two executives have continued to increase their holdings of H shares of the company. Among them, fu fan, President of China Pacific Insurance (Group) Co.Ltd(601601) , increased his holdings for four consecutive times, with a cumulative increase of 48000 shares, with a cumulative increase of about HK $1096200.
not only fu fan, but also Yu Bin, another vice president of the company, was optimistic about China Pacific Insurance (Group) Co.Ltd(601601) H shares with practical actions. He increased his holdings of 39600 shares on January 17, with an increase of about HK $908800.
Why do China Pacific Insurance (Group) Co.Ltd(601601) executives frequently increase their holdings of H shares of the company? Industry analysts believe that this may be related to the current low price of China Pacific Insurance (Group) Co.Ltd(601601) H shares. According to wind data, as of January 21, China Pacific Insurance (Group) Co.Ltd(601601) H shares had a discount of 27.90% compared with a shares.
recently, the insurance sector bucked the trend and rose
In 2021, the insurance industry experienced a painful period of transformation. Factors such as the comprehensive reform of automobile insurance and the loss of life insurance agents have seriously dragged down the performance of insurance enterprises. Affected by this, there was a large correction in the insurance sector as a whole last year. According to the data, the insurance (Shenwan) index fell 39% in 2021.
In terms of individual stocks, 2021 Ping An Insurance (Group) Company Of China Ltd(601318) fell the most, with a cumulative decline of 40%. New China Life Insurance Company Ltd(601336) , The People’S Insurance Company (Group) Of China Limited(601319) , China Pacific Insurance (Group) Co.Ltd(601601) , China Life Insurance Company Limited(601628) followed, falling by 30.55%, 26.51%, 26.18% and 19.98% respectively.
It is worth noting that after a sharp correction last year, insurance stocks seem to have a trend of turning the corner in the near future. Since the beginning of 2022, with the correction of the three major stock indexes, the insurance sector has stepped out of the independent rising market.
Data show that as of January 21, the insurance (Shenwan) index has increased by 5.13% this year. Among them, Ping An Insurance (Group) Company Of China Ltd(601318) , China Pacific Insurance (Group) Co.Ltd(601601) , New China Life Insurance Company Ltd(601336) increased by 6.23%, 4.02% and 2.91% respectively. In contrast, the Shanghai stock index fell 3.22% and the CSI 300 index fell 3.26% in the same period.
The valuation of sector is at the bottom of history
Looking forward to 2022, with the weakening of the impact of the comprehensive reform of automobile insurance, the active change of the agent model, the acceleration of the construction of the third pillar endowment insurance and the implementation of the “second generation” phase II project, the anti risk ability of the insurance industry will be improved, and the insurance sector may usher in the valuation repair market.
At the end of 2021, the CBRC issued the notice on regulating and promoting the development of pension insurance institutions. According to the research report released by Ping An Securities, the space of the third pillar personal commercial endowment insurance continues to benefit the construction of the third pillar of endowment insurance, which further releases the growth space for insurance enterprises. The liability side transformation of life insurance continued to grind the bottom, and the valuation of the sector was at the bottom of history, with long-term allocation value.
Haitong Securities Company Limited(600837) said that the valuation of the insurance sector is at the bottom of history and the safety margin is high. The insurance industry has accelerated its return to the source of security, the liability side is under pressure in the short term, and is still optimistic about the development space of health insurance and endowment insurance in the long term.
According to the research report released by Guotai Junan Securities Co.Ltd(601211) , the life insurance industry is in the throes of transformation. It is expected that the “good start” performance in 2021 and 2022 will be under pressure, and it is difficult to see a recovery in profits before the first quarter of 2022; After the fourth quarter of 2021, the negative impact of the comprehensive reform of auto insurance on the premium side will be eliminated. It is expected that the growth momentum of the industry premium will be significantly improved, and the underwriting profit of large insurance enterprises will be more stable. At present, companies that accelerate the establishment of a product system (insurance + service) to meet customer needs will take the lead in getting out of the bottleneck of the industry and achieve profits exceeding expectations.
