Insurance - China (H/A): Investor feedback: Insurers still regarded as market beta names, Ping An favored

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Insurance - China (H/A): Investor feedback: Insurers still regarded as market beta names, Ping An favored

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Insurance - China (H/A)

Investor feedback: Insurers still regarded

as market beta names, Ping An favored

Industry Overview

Marketing feedback from our China Conference 19 May 2026

We held meetings for Chinese insurers in our China Conference last week and engaged Equity

with investors during the period. Here are some pertinent feedback from investors about China

the sector and our views. Insurance - Multi-line

Insurers still regarded as market beta names MichaelResearch LiAnalyst>>

Though we recognize that insurers are making improvement in their liabilities side this Merrill+852 3508Lynch7381(Hong Kong)

year, including faster VNB growth, lower liabilities cost which reduces the risks of m.li@bofa.com

negative interest spread, distribution channel productivity enhancement, potentially Susie Liu, CFA >>

better CSM generation and accumulation, most investors in the market still regard ResearchMerrill LynchAnalyst(Hong Kong)

insurers as market beta names. Due to the directional investment insurers make and the +852 3508 8456

susie.liu@bofa.com

surging stock investment in 2025, insurers are now the major market proxies to the A-

share market, even compared to brokers.

VNB: Value of New BusinessAs shown below, in the months when the major indices performed well this year (Jan and

Apr), the life insurers outperformed, and when the indices dropped or were flattish MoM CSM: Contractual Service Margin

(Feb, Mar, May so far), the life insurers underperformed. In our view, it may take quarters

for investors to eventually shift the focus from purely investment gains to core business

quality and growth.