[ET Net News Agency, 14 June 2018] Credit Suisse cut its target price for Ping An
Insurance (02318) to HK$98 from HK$103, and retained its "outperform" rating.
The research house said Ping An's Life premium was up 22% in May, led by strong
renewals. It noted that individual new sales has continued to recover, up 9% YoY in May
verss 11% decline in 4-month 2018. Total agent number recovered (1% MoM), following the
attrition of inactive agents in 1Q.
Credit Suisse believes probability of "price war" on critical illness product is
diminishing, due to rising morbidity rate in China and higher reinsurance costs.
It thinks that VNB momentum would trend better in coming quarters on (1) easier
comparable base, as it terminated "fast return" annuity in June-2017 versus October-2017
peers, (2) its consistent focus on long-term protections (less affected by WMPs). (KL)