Merchant non-bank sector: In October, the growth rate of life insurance premiums generally declined, but double-digit growth in NBV for the full year is still expected.

The CMB non-banking team has issued a research report stating that, recently, listed insurance companies disclosed their original insurance premium income for January-October 2024. In October, the growth rate of life insurance premiums of various companies fell, but double-digit growth in NBV for the whole year is still expected; the growth rate of property insurance premiums continued to improve, mainly driven by the strong growth in the automobile market. The implementation of the easing debt policy in the near future is of great significance for boosting economic stability and recovery through subsequent fiscal efforts by local governments. The monetary policy remains positive, and the market is expected to return to blue-chip and quality styles. In terms of life insurance premiums, the monthly growth rate in October fell, and each company is actively preparing for a strong start in 2025. From January to October 2024, the year-on-year growth rates of life insurance premiums of listed insurance companies were: Ping An Insurance +9.0%>People's Insurance+5.6%>China Life Insurance+4.9%>Taikang Life Insurance+2.4%>New China Life Insurance+1.8%. The growth rates of premiums for various insurance companies have generally declined, which is expected to be due to the concentrated release of demand for savings insurance before the scheduled interest rate cut, combined with the shift of companies' business focus towards preparing for a strong start in 2025. In terms of new business, in October, year-on-year premiums for long-term first-year transactions of People's Insurance life insurance increased by 73.6%, showing a continuous improvement in business structure. In terms of property insurance premiums, the top three companies have continued their steady growth. From January to October 2024, the year-on-year growth rates of property insurance premiums of listed insurance companies were: Taikang P&C Insurance +7.4%>Ping An P&C Insurance +6.5%> People's P&C Insurance +4.8%, with the monthly rates for October being: Ping An P&C Insurance +12.2%>People's P&C Insurance +7.8%>Taikang P&C Insurance +3.9%. In terms of different types of insurance, in October, year-on-year premiums for car insurance of People's Insurance increased by 6.4%, an increase of 1.1pt from the previous month. The continuous improvement in growth was mainly due to the nationwide policy on scrapping and renewing vehicles, as well as the comprehensive efforts of various regions to implement policies for replacing old vehicles with new ones, which greatly stimulated the growth of the automobile market. In October, the year-on-year growth rates for non-car insurance premiums were 12.3%, with an increase of 3.4pt from the previous month, mainly driven by accident insurance (up 25.6% year-on-year), other types of insurance (up 24.7% year-on-year), cargo insurance (up 22.2% year-on-year), liability insurance (up 7.8% year-on-year), and others. Risk warnings: Economic growth below expectations; tightening of regulations; decreased product attractiveness; market volatility; declining interest rates; life insurance transformation lower than expected.