PICC Group - H JPM Asia Insurance Forum takeaways: The whole is greater than the sum of the parts

Research evidence excerpt

PICC Group - H JPM Asia Insurance Forum takeaways: The whole is greater than the sum of the parts

Asia Pacific Equity Research

12 May 2026

Neutral

PICC Group - H 1339.HK, 1339 HK

Price: HK$5.55

JPM Asia Insurance Forum takeaways: The whole is 11 May 2026

greater than the sum of the parts Price Target: HK$5.80

PT End Date: 31 Dec 2026

We hosted PICC Group at our Asia Insurance forum last week. Our key Insurance

takeaways are below: AC MW Kim

(852) 2800-8517

• Group. The company reaffirmed its current dividend policy. The mw.kim@jpmorgan.com

dividend payout ratio for the group is at least 30% of net profit under the J.P. Morgan Securities (Asia Pacific) Limited/

PRC old accounting standards; subsidiaries, including PICC P&C and J.P. Morgan Broking (Hong Kong) Limited

PICC Life, will distribute at least 40% of net profit under the PRC old Dan Wang

accounting standards. Notably, once the regulator permits a modified (86-21) 6106-6349

dan.wang@jpmorgan.com

earnings metric that carves out short-term investment volatility, the SAC Registration Number: S1730524080001

group would consider adopting an amended earnings base for its J.P. Morgan Securities (China) Company

dividend policy in due course. Limited

Julia Kim

• Life: new sales activities. PICC Life delivered 21% oya growth in (852) 2800-8540

1Q26 new business value (NBV). During the quarter, a larger proportion julia.c.kim@jpmorgan.com

of product offerings was dominated by participating policies, which J.P.J.P. MorganMorgan SecuritiesBroking (Hong(AsiaKong)Pacific)LimitedLimited/

carry lower interest-rate sensitivity. However, as par policies share

future profits with policyholders, the overall profitability profile is

inherently lower. Consequently, the company intends to place greater