[ET Net News Agency, 22 November 2017] Nomura tweaked its target price for China Re
(01508) to HK$2.16 from HK$2.1, and maintained its "buy" rating.
The research house said China Re is a stable, capital-rich non-life insurer, with 90% of
its business short-tail, including P&C and life re contracts.
It P&C direct business should benefit from the improving outlook for the P&C sector,
Nomura said, given the extremely strict regulatory measures pushing the expense ratio
lower since this July. As such, Nomuar further lowered its combined ratio forecasts by
0.4pp for FY2017 and by 0.3pp for FY2018-19.
Overall, it expects the combined ratio to improve by 0.3pp y-y to 99.4% in FY2017 versus
99.7% in FY2016. (KL)