Equity Analysis /
Hong Kong

HK : China Pacific Insurance - Many questions, few answers

    Michael Chang
    Michael Chang

    Equity Research Analyst, Banks and Insurance

    28 March 2022
    Published by

    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.