JP Morgan: Preferred domestic insurance stocks are China Life Insurance (02628) and Ping An Insurance (02318)

JPMorgan Chase released a research report stating that comparing the two major insurance markets in Asia, India and China, during the quarterly earnings season is valuable. Chinese insurance companies have strong performance, with three companies releasing positive profit pre-announcements, driving market consensus higher; in contrast, the performance of private insurance companies in India is mixed. JP Morgan proposes three key investment themes: preference for state-owned enterprises over private ones, preference for India over China in the non-life insurance field, and looking for opportunities in companies that have underperformed this year. Preferred stocks: China Life Insurance (02628), Life Insurance Corporation of India (LIC), Ping An Insurance (02318), General Insurance Corporation of India (GICRe). As the year-end approaches, JP Morgan reiterates the three key investment themes: 1. Prefer state-owned enterprises: bullish on state-owned enterprises (LIC, China Life) over private enterprises; 2. Sector rotation: look for attractive re-entry points in the non-life insurance sector in India, while considering exit points in the non-life insurance sector in China; 3. Value in underperformers: reevaluate stocks that have underperformed this year but show value - such as Ping An Insurance, currently trading at 6 times forecasted earnings for fiscal year 2026, with a dividend yield of 6%. JP Morgan stated that the performance of Chinese insurance stocks is related to earnings forecast revisions. After a strong increase this year, the sector is currently trading at 7 times consensus forecasted earnings for fiscal year 2025, with a dividend yield of 4%.JP Morgan finds the valuation attractive. Companies like China Life have announced strong net profit expectations for the first nine months, surpassing market consensus for the full year. Therefore, JP Morgan expects earnings and dividend forecasts to be further revised upwards, providing a catalyst for stock prices. In addition, continued policy support should help improve product profit margins and diversify sources of profit. JP Morgan's preferred holdings are China Life and Ping An Insurance.