CITIC Securities: The insurance sector remains in a period of significant opportunity; AI narrative adjustment brings about a right-side investment window

CITIC Securities research report believes that over the next 3-5 years, insurance companies will continue to benefit from a strict regulatory environment and anti-inflationary competition, with market share among the top seven players likely to remain concentrated. In a low-interest-rate environment, the migration of savings deposits to insurance companies is a win-win situation for banks, insurance companies, and customers. This trend is expected to continue long-term and will support patient capital, boosting the development of the stock market, bond market, and real economy. From a policy perspective, regulators will continue to promote industry efforts to strengthen asset-liability management, advance the second and third phases of the solvency regulation, reduce the number of small and medium-sized insurance companies while improving quality, and encourage insurance companies to participate as strategic investors in large-scale equity lock-in offerings of listed companies. The southbound trading quota is expected to increase further, with insurance companies increasing their allocation of high-yield overseas bonds. These policy implementations will continue to serve as catalysts for insurance sector stock prices. Looking ahead to Q1 and interim reports of 2026, based on the low base in 2025, growth in policy sales, investment income, and profits is highly certain. Recent adjustments in AI narratives present a right-side investment window. It is recommended to focus on leading companies with rapid growth in new business value, stable profitability and dividends, and relatively low valuations. (People’s Financial News)