Equity Analysis /
Hong Kong

HK : China Pacific Insurance - Many questions, few answers

    Michael Chang
    Michael Chang

    Equity Research Analyst, Banks and Insurance

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    CGS-CIMB
    28 March 2022
    Published byCGS-CIMB

    Key among the questions that the FY21 results raised was why cut the DPS, one year after announcing a special dividend. Life insurance NBV and agents continued to fall for the second consecutive year, with 2H21 NBV down 52% yoy and 2H21 agents falling 44% yoy. PC insurance was the bright spot, with 2H21 combined ratio up 1% pt yoy. Reiterate Add but cut TP by 3% to HK$29, on lower FY22F-24F EPS and a lower life insurance valuation in our sum-of-parts valuation.