Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

*PAL Leads Improvement: Ping An Insurance (2318.HK)[Ping An] reported a 1H20 operating profit of CNY 74.3 bn, increasing just 1% YOY and 5% below consensus. As a recovery appears underway with Ping An Life (PAL), Ping An results appeared to be well-supported by a HOH improvement of CNY 13.2 bn bn (40.4%) in net profits  - although its value of new business (VONB) declined CNY 3.9 bn (11.9%); and *P&amp;C Remains A Challenge: Ping An P&amp;C operating profits declined CNY 2.6 bn (29.2%) HOH, as the overall combined ratio eroded 1.5% to 98.1% due primarily to continued weakness within the credit insurance unit where the combined ratio came in at 125.6% (up 32.4%). The credit insurance segment reported a CNY 3.5 bn underwriting loss, due to defaults on underlying loans. Auto combined ratio improved temporarily during the lockdown by 360 bp to 94.7%, and certainly warrants watching a driving returns to normal in mainland China.

*PAL Leads Improvement: Ping An Insurance (2318.HK)[Ping An] reported a 1H20 operating profit of CNY 74.3 bn, increasing just 1% YOY and 5% below consensus. As a recovery appears underway with Ping An Life (PAL), Ping An results appeared to be well-supported by a HOH improvement of CNY 13.2 bn bn (40.4%) in net profits  - although its value of new business (VONB) declined CNY 3.9 bn (11.9%); and *P&amp;C Remains A Challenge: Ping An P&amp;C operating profits declined CNY 2.6 bn (29.2%) HOH, as the overall combined ratio eroded 1.5% to 98.1% due primarily to continued weakness within the credit insurance unit where the combined ratio came in at 125.6% (up 32.4%). The credit insurance segment reported a CNY 3.5 bn underwriting loss, due to defaults on underlying loans. Auto combined ratio improved temporarily during the lockdown by 360 bp to 94.7%, and certainly warrants watching a driving returns to normal in mainland China.

Ping An Insurance – Life Showing Signs Of Life

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

China Pacific Insurance Group / Equity Capital Markets

Late Friday evening, <a href="https://www.smartkarma.com/entities/china-pacific-insurance-group" target="_blank" data-smartkarma-citation="entities:6177:1" rel="noopener">China Pacific Insurance (2601 HK)</a> and <a href="https://www.smartkarma.com/entities/china-pacific-insurance-group-co-ltd-c3977224-9bf8-4947-95bc-bd1fdec7f8e6" target="_blank" data-smartkarma-citation="entities:14184:1" rel="noopener">China Pacific Insurance (Group) Co., (601601 CH)</a><a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0612/2020061201377.pdf" target="_blank" rel="noopener">announced</a> that... <ul>
<li>The Company is currently applying for the issuance and admission of GDRs [tentatively, <a href="https://www.smartkarma.com/entities/china-pacific-insurance-group-gdr" target="_blank" data-smartkarma-citation="entities:29024:1" rel="noopener">China Pacific Insurance (GDR) (CPIC LN)</a>] on the London Stock Exchange.</li>
<li>The prospectus was approved by the UK Financial Conduct Authority on 12 June 2020.</li>
<li>A Pricing Range of US$17.60-19.00 per GDR (one GDR is five A shares) was announced.</li>
<li>The Offer Period is expected to be 12 June to 16 June 2020, and the Offering is expected to raise US$1.991-2.150bn.  </li>
</ul>The trade is on. <div class="content-highlight">
This situation likely has some positive value for some standard investors in equity offerings. 
It probably has significantly more positive value for investors who do not normally look at GDR offerings.
Long-only investors in A-shares who already hold CPIC should take a close look (and message me if any questions)
</div>

Late Friday evening, China Pacific Insurance (2601 HK) and China Pacific Insurance (Group) Co., (601601 CH)announced that... 
The Company is currently applying for the issuance and admission of GDRs [tentatively, China Pacific Insurance (GDR) (CPIC LN)] on the London Stock Exchange.
The prospectus was approved by the UK Financial Conduct Authority on 12 June 2020.
A Pricing Range of US$17.60-19.00 per GDR (one GDR is five A shares) was announced.
The Offer Period is expected to be 12 June to 16 June 2020, and the Offering is expected to raise US$1.991-2.150bn.  
The trade is on. 
This situation likely has some positive value for some standard investors in equity offerings. 
It probably has significantly more positive value for investors who do not normally look at GDR offerings.
Long-only investors in A-shares who already hold CPIC should take a close look (and message me if any questions)


China

China Pacific Insurance (Group) Company, Ltd. is an integrated insurance services provider. The Company offers life and property insurance products through its subsidiaries.


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China Pacific Insurance Group (CPIC LI)

Ping An Insurance – Life Showing Signs Of Life

*PAL Leads Improvement: Ping An Insurance (2318.HK)[Ping An] reported a 1H20 operating profit of CNY 74.3 bn, increasing just 1% YOY and 5% below...

Thomas J. Monaco

The CPIC GDR Offering Is On. Get Some.

Late Friday evening, China Pacific Insurance (2601 HK) and China Pacific Insurance (Group) Co., (601601 CH)announced that... The Company is...

Travis Lundy

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