Bank of America Securities: Expects full-year investment income of China Pacific Insurance (02328) to improve, target price increased to HK$20.9.

According to the Zhongtong Finance APP, Bank of America Securities released a research report stating that China Taiping Insurance (02328) achieved a net profit of 40.3 billion yuan in the first three quarters of 2025, a year-on-year increase of 51%, exceeding expectations. Although investment income was strong in the third quarter of last year, a sharp increase in catastrophe losses caused underwriting profits to plummet, resulting in a low base. Based on improved investment return forecasts, Bank of America Securities has raised its profit forecast for China Taiping Insurance in 2025 by 6%, and by 1% to 2% for 2026 to 2027. The target price has been raised from 20.3 Hong Kong dollars to 20.9 Hong Kong dollars, reiterating a "buy" rating. It is believed that the good performance in the third quarter was mainly due to the rise in the Chinese stock market during the period and the company's increased investment in stocks. It is expected that with active and stable market trading, the full year investment income will improve year-on-year.