Asia Summer School: Hong Kong/China Insurance: Investor Presentation | Asia Pacific

Research evidence excerpt

Asia Summer School: Hong Kong/China Insurance: Investor Presentation | Asia Pacific

FoundationM

2.7 Leading insurers are exploring innovative and alternative asset investment

Listed insurers’ net investment yield

• Listed insurers’ net investment yields have continuously

China Life Ping An CPIC

declined over the past few years. % NCI PICC Group CTIH

5.5

• In 1Q26, industry median investment was around 0.65%

while median comprehensive investment yield was only 5.0

about 0.31% 4.5

• Leading insurers are adopting more diversified allocation 4.0

strategies and have expanded into a broader range of asset

3.5

classes, including ABS, public and private REITs, and private

equity funds. 3.0

• SME insurers have obstacles in these investments, and 2.5

many focus on equity investment amid this backdrop. FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

Industry-wide investment yield in 1Q26

% 1Q26 Investment yield 1Q26 Comprehensive investment yield

2.0

5.0

1.5...

1.0

0.5

0.0

-0.5

-1.0

Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Life Taihe THTF China China China Fosun Jixiang An Lujiazui AIA Livit Wall Post ABC CMB Hetai Standard Samsung CPIC PICC Ruitai China China Everbright HSBC ICBC-AXA Life United Huatai Happy Beijing Wealth Huagui Gorges Taiping BOB-Cardif Life Aviva-Cofco CMBCigna Life Junlong Ping Taikang Guobao An Hengqin Aegon Allianz Yingda BoComm Sunshine Manulife-Sino Life MetLife SooChow Minsheng Hongkang Life Great Generali BOC China New Cathay Chasing East CITIC-Prudential LifeChangsheng Life Pramerica China Three Heng Sun

Source: Company data, Morgan Stanley Research

Morgan Stanley Research 17