The Zhitong Finance App learned that Goldman Sachs released a research report saying that non-vehicle insurance is expected to become a potential growth engine for China's financial insurance (02328) premiums and underwriting profits. The company aims to raise non-vehicle personal insurance premiums to more than 100 billion yuan in the next five years; the bank maintains China Financial Insurance's “buy” rating with a target price of HK$19.7 for 12 months; maintains the “buy” rating and target price of HK$6.7 for Human Insurance Group (01339) shares.. 601319.SH
People's Insurance Group and China Financial Insurance recently held a joint Investor Day in Suzhou. Management gave briefings and questions on the development of non-vehicle personal insurance, technology insurance, health insurance and health management services, and investment asset allocation.
According to People's Insurance Insurance, non-vehicle personal insurance premiums will reach 55.8 billion yuan in 2025, and the company aims to increase non-vehicle personal insurance premiums to more than 100 billion yuan in the next five years. Non-vehicle personal insurance premiums increased from RMB 19.1 billion to RMB 55.8 billion in 2020, and continued to increase 16% year-on-year in the first nine months of 2026, accounting for 97% of the new premiums for personal insurance during the same period. Management sees personal non-car insurance as the second growth curve, and aims to double premiums to nearly RMB 100 billion during the “15th Five-Year Plan” period. Assuming a comprehensive cost ratio of 95%, the bank estimates that non-vehicle personal insurance will contribute more than 15% of the total underwriting profit. According to the premium target of RMB 100 billion, it may increase to 20% by fiscal year 2030.
The bank also stated that under an optimistic scenario, premiums related to technology development may reach 10 billion yuan during the “15th Five-Year Plan” period; management maintained a positive long-term outlook for health insurance and reiterated its commitment to stable and sustainable dividend growth, with the goal of gradually increasing the group's dividend payout ratio to about 30% under the new accounting standards.