HK Stock Market Move | The People's Insurance (01339) fell more than 6%, as Bank of America's fourth quarter decrease in investment income and underwriting losses may have sparked some concerns.

The People's Insurance (01339) fell more than 6%, as of the press release, it fell by 6.15%, to 5.49 Hong Kong dollars, with a turnover of 4.98 billion Hong Kong dollars. On the news front, The People's Insurance released its 2025 annual performance, with the group's total revenue reaching 669.254 billion yuan, a year-on-year increase of 7.56%; net profit attributable to parent company shareholders was 46.207 billion yuan, a year-on-year increase of 9.62%. It plans to distribute a final dividend of 1.45 yuan for every 10 shares. A research report by Bank of America Securities pointed out that the performance of People's Insurance last year met expectations, with dividend growth outpacing earnings per share. Net profit for the 2025 fiscal year reached 46.2 billion yuan, a 10% increase year-on-year, mainly benefiting from strong investment income. Concerns were raised due to a decrease in investment income in the fourth quarter of last year and possible underwriting losses, but overall performance met expectations. The bank lowered its profit forecast for People's Insurance for the 2026 to 2027 fiscal years by 4% to 5% based on assumptions of deteriorating comprehensive cost ratios and slower growth expectations. The target price was lowered by 4% to 7.5 Hong Kong dollars from 7.8 Hong Kong dollars, while maintaining a "buy" rating.