PICC P&C (2328.HK) Mgmt Update: 1H26E Premium Growth Positive and CoR Further Enhanced; Non-auto Commission Rationalization Has Legs

Research evidence excerpt

PICC P&C (2328.HK) Mgmt Update: 1H26E Premium Growth Positive and CoR Further Enhanced; Non-auto Commission Rationalization Has Legs

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27 Jul 2026 11:03:35 ET │ 11 pages

PICC P&C (2328.HK)

Mgmt Update: 1H26E Premium Growth Positive and CoR Further

Enhanced; Non-auto Commission Rationalization Has Legs

CITI'S TAKE Buy

Price (27 Jul 26 16:10) HK$15.03 We hosted a call with PICC P&C's management team regarding the latest

Target price HK$20.50 operating trends and future outlook, and we provide updates as below.

Expected share price 36.4%

returnBoth insurance results and investment results better off in 1H26E – For 1H26E,

Expected dividend yield 4.9%mgmt estimated both insurance services results and investment results would be

better off yoy, as 1) gross premium underwritten logged positive growth yoy and CoR Expected total return 41.3%

saw further improvement yoy despite the historical best u/w margin achieved in Market Cap HK$334,309M

1H25, and 2) investment performance has been on or above par with peers, though US$42,628M

PICC P&C’s stock allocation is relatively more tilted towards FVOCI stocks. As to

NAT CAT losses, mgmt shared that Jul26 suffered c.Rmb2bn NAT CAT losses (vs.

c.Rmb4bn in 3Q25) and 3Q26 could see some pressure yoy, but overall catastrophe

Michelle Ma, CFAAClosses shall be manageable on a full-year basis.

+852-2501-2723

michelle.ma@citi.com

Amy Jy Chen

Auto insurance: premium growth turned around and CoR further enhanced in amy.jy.chen@citi.com

1H26E – Mgmt noted that industry saw flattish auto premium growth amid

lukewarm new vehicle sales while PICC delivered modest positive yoy premium

growth in 1H26, mainly thanks to increase in the number of vehicles insured. As to

underwriting profitability, mgmt expected auto CoR to continue to improve in