[ET Net News Agency, 15 June 2018] HSBC Global Research said PICC Property & Casualty
(02328) is among the cheapest P&C insurers globally. The shares are trading at 7x 2019 PE
and 1.2x 2018 PB for an ROE of 15%, which are 20% and 30% discounts to their five-year
averages, respectively.
The research house said its bear case assumes a 1ppt higher combined ratio than the
97.3% pa assumed in its 2018-20 forecasts, 1ppts lower investment return versus its
assumed 5% pa, and a 30% tax rate compared with 27% in its forecasts.
HSBC explored market developments and company-specific factors that should allow PICC
P&C to withstand such challenges. It reiterated its "buy" call on PICC, with an unchanged
HK$18 target price. (KL)
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02328 PICC P&C
Nominal 
10.100 +0.110 (+1.101%) Others
15/06/2018 09:34
[I-bank focus]PICC P&C (02328) among cheapest P&C insurers
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