China Reinsurance Group - H Attractive risk/reward, but business structure drags limited re-rating; stay N with PT cut to HK$1.40

研报英文原文证据摘录

China Reinsurance Group - H Attractive risk/reward, but business structure drags limited re-rating; stay N with PT cut to HK$1.40

Asia Pacific Equity Research

12 May 2026

Neutral

China Reinsurance Group - H 1508.HK, 1508 HK

Price (12 May 26): HK$1.30

Attractive risk/reward, but business structure drags

▼ Price Target (Dec-26): HK$1.40

limited re-rating; stay N with PT cut to HK$1.40 Prior (Dec-26): HK$1.60

China Reinsurance Group (China Re) is one of the top eight reinsurers China

globally and the dominant reinsurer in Mainland China, commanding nearly a Insurance

50% domestic market share – making the investment thesis closely correlated AC Dan Wang

to global reinsurance underwriting trends. 1Q26 P&C reinsurance combined (86-21) 6106-6349

ratios across major global peers ranged 66.8-83.6%, materially better than dan.wang@jpmorgan.com

feared (Table 1), rendering China Re’s YTD underperformance (-23% vs. HSI: SAC Registration Number: S1730524080001

+3%) excessive, in our view. The stock trades at a 4x FY27E P/E with a 7% J.P. Morgan Securities (China) Company Limited

dividend yield, offering an attractive risk/reward, in our view. However, two MW Kim

structural factors may limit the re-rating: The non-reinsurance segment (13% (852) 2800-8517

of pretax earnings) introduces earnings dynamics less comparable to global mw.kim@jpmorgan.com

peers’, and the company’s domestic reinsurance contract structure limits large J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

underwriting profit-sharing. We trim our Dec-26 PT from HK$1.60 to

HK$1.40. Stay N.

Style Exposure

• Read-across from global peers. Chaucer, housed within China Re’s P&C

Reinsurance segment, contributes ~13% of group total premium income and