[ET Net News Agency, 23 January 2018] Daiwa Research lifted its target price for
ZhongAn Online P&C Insurance (06060) to HK$70 from HK$65, and maintained its "hold"
rating.
ZhongAn reported full-year gross premiums of CNY6bn (up 75% YoY) for 2017. The research
house sees high top-line premium growth as the key for ZhongAn to improve its underwriting
profitability.
Daiwa sees ZhongAn's recently improved terms for its auto insurance as a good example of
how premium growth can result in greater bargaining power with distribution partners, and
eventually improve its profitability.
The rapid organic growth of its auto insurance along with its wider geographic presence
also provide ZhongAn and its distribution partners with more cross-selling opportunities.
Daiwa expects auto insurance to contribute a significantly larger proportion of its total
gross premiums in the future, reaching 12% for 2018 and continuing to rise.
It raised its 2018-19 earnings by 9-12% mainly due to improving profitability in auto
insurance. (KL)
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06060 ZA ONLINE
Nominal 
13.120 +1.000 (+8.251%) Others
23/01/2018 12:00
[I-bank focus]Daiwa lifts ZhongAn Online (06060) to HK$70
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