Nomura: Maintains China Property and Casualty Insurance (2328.HK) as sector pick with target price raised to HK $9.54

2022-08-04 0 By

Nomura issued a report that the comprehensive cost ratio of property insurance (2328.HK) showed signs of turning, mainly because active property insurers were forced to withdraw from the auto insurance business due to heavy underwriting losses after the auto reform, and since the second half of last year, the mainland auto insurance market has gradually concentrated in leading insurers.Nomura cut its comprehensive cost ratio forecast for property insurance by 0.6 percentage points annually to 99.1 per cent for this year and next to reflect a 1 percentage point cut in its forecast for motor insurance.As a result, the bank raised its earnings forecast for this year by 11 per cent and its target price for the shares by 12 per cent, from HK $8.87 to HK $9.54, and maintained its “buy” rating as a sector pick.