Soochow: The liabilities side of insurance continues to improve, undervalued + low holdings highlight investment value.

Soochow released a research report stating that the savings demand in the insurance market remains strong, and with the continuous guidance of regulation and proactive transformation of insurance companies, the cost of liabilities is expected to gradually decrease, easing the pressure on interest rate spreads. 2) Recently, the ten-year government bond yield has stabilized at around 1.82%, and the bank predicts that with the recovery of the domestic economy in the future, if the long-term interest rates continue to rise, the pressure on the yield of fixed-income investments for insurance companies will be relieved. 3) Currently, the positions and sector valuations of public funds are still at low levels, with the valuation of the insurance sector on March 28, 2026 estimated to be 0.54-0.77 times PEV and 0.95-1.60 times PB, with the industry maintaining a "hold" rating. The main points of Soochow are as follows: Significant increase in attributable net profit, stable and improving dividend returns 1) Driven by investment income improvement, the combined attributable net profit of listed insurance companies increased by 26.6% in 2025, but the fourth-quarter attributable net profit declined across the board, with mainl... Assistant too long. Truncated.