Last year’s performance “glossy” insurance stocks
Insurance stocks with a strong trend last year continued to “spot” in 2020.Wind data shows that as of the close of April 7, the Shanghai Composite Index fell by 7 this year.52%, but the index of insurance stocks fell as much as 19 during the year.03%, underperformed the broader market by 11.51 averages.Looking at A-shares only, as of the close of April 7, China Pacific Insurance and China Life Insurance have all fallen by more than 20% this year, reaching 26 respectively.14% and 23.06%, therefore, China Ping An fell 18 during the year.13%, closed at 69.97 yuan / share; China People’s Insurance fell 16 during the year.6%, closed at 6.33 yuan / share; Xinhua Insurance fell 15% during the year.12%, closed at 41.72 yuan / share.If you look at H shares, insurance stocks can be realized, for example, on April 7, the PICC H shares exceeded only 2.For 58 shares / share, Miao Jianmin, chairman of China People’s Insurance, once said frankly at the performance conference: “Our H shares are indeed unreasonably low.”He also said at the time:” From the perspective of long-term investment, I think it is a good time for investor protection.Yuan Yuan (pseudonym), an investor who holds insurance stocks, told Sauna, Yewang: “I was an insurance stock that I bought a year ago. I hold A shares of China People’s Insurance and A shares of Xinhua Insurance. Now I see a lot of floating lossesYes, but I wo n’t cut the meat for the time being, I believe it will rise back later.”Why have insurance stocks suffered so much this year?”Han Wei, Managing Director of Taishi Investment, told Sauna and Yewang that there may be three main aspects. First, insurance stocks were relatively strong last year, so this year’s margin of difference is the second. Second, the investment income of insurance companies is more sensitive to the performance of the stock market, and the stock market falls insurance.Stocks will be subject to additional repression; overall, the stock market adjustment is related to the epidemic, and the market usually thinks that the occurrence of natural disasters and man-made disasters will be detrimental to the short-term performance of insurance stocks.Indeed, the impact of the epidemic on the insurance income of listed insurance companies has been highlighted. The data shows that in the first two months of this year, the total premium income of listed insurance companies reached 8739.7.6 billion, an annual growth of only 3.31%, compared with previous years, the “starter” growth rate index has dropped significantly. If we look at February alone, the total premium income of the five largest listed insurance companies is only 143.5 billion, a significant drop of 72 month-on-month.8%.In addition, the spread of the New Coronary Pneumonia epidemic around the world has also brought potential uncertainty to the capital market, overlapping the global interest rate cuts, and the downward interest rate has become unstoppable. In this case, if the listed insurance companies want to maintain their investment returns this year,The level of last year has seriously intensified.However, the analysis of the combined brokerage research report believes that the current insurance stocks are still estimated to be low, and CITIC Securities Investment Research believes that the current A shares are still low, and H shares are more “cheap”, from the long-term fundamentals of sound stability, increasingFrom the perspective of flexibility and high index, we recommend China Pacific Insurance. We also recommend focusing on undervalued Xinhua Insurance and H-share China Pacific Insurance, China Life Insurance and Xinhua Insurance.Tianfeng Securities Research also stated that the valuation of insurance stocks is at a historically low level. The current implied investment yield of insurance stocks is expected to be too low, and the expectations are excessively pessimistic. It focuses on recommending Xinhua Insurance, China Ping An, and recommends that China Pacific Insurance H shares be concerned.Indeed, in late March, an investor told reporters that he had scrapped a certain insurance stock, “I feel that this insurance company’s premium performance is quite good, but it can not be very high, so I started.”Sauna, Ye Wang Pan Yichun Editor Zhao Ze proofreading Li Ming