Insurance & Central Asia-focused Analyst, KT Capital Group

Alec Tseung

Insurance & Central Asia-focused Analyst

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

<ul>
<li>PICC P&amp;C's Q3 underwriting profitability deteriorated due to typhoon/catastrophe-related losses in both motor and non-motor business.</li>
<li>Samsung Life's new business growth momentum continued in Q3'23; new business CSM margin slightly improved QoQ.</li>
<li>Prudential disclosed limited details in its Q3 results but we can see the growth trend of new business volume and profits continuing in the quarter.</li>
</ul>


PICC P&amp;C's Q3 underwriting profitability deteriorated due to typhoon/catastrophe-related losses in both motor and non-motor business.
Samsung Life's new business growth momentum continued in Q3'23; new business CSM margin slightly improved QoQ.
Prudential disclosed limited details in its Q3 results but we can see the growth trend of new business volume and profits continuing in the quarter.


APAC Insurers Series (#4): How We See the 3 Insurance Stocks in 2024

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes for the Hang Seng Index in September 2023.</li>
<li>The index changes for the December 2023 rebalance will be announced in mid-November (17 Nov) and implemented in early-December (with effect from 4 Dec).</li>
<li>Although the Hang Seng index has a highly subjective constituent selection process and index changes are somewhat unpredictable, we will continue sharing our thoughts for each quarterly review.</li>
</ul>


In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes for the Hang Seng Index in September 2023.
The index changes for the December 2023 rebalance will be announced in mid-November (17 Nov) and implemented in early-December (with effect from 4 Dec).
Although the Hang Seng index has a highly subjective constituent selection process and index changes are somewhat unpredictable, we will continue sharing our thoughts for each quarterly review.


Quiddity Leaderboard for Hang Seng Index Dec 23: High Conviction Names Have Decent Momentum Vs HSI

<ul>
<li>PICC P&amp;C's thesis has materialized and played out well this year, with the stock being HK's best-performing Chinese insurer.</li>
<li>Samsung Life's share price recovered slightly since our last update as LT Korean government bond yields further increased.</li>
<li>Prudential's thesis is slowly being played out, with its P/BV discount to AIA having narrowed; but still a long way to go. </li>
</ul>


PICC P&amp;C's thesis has materialized and played out well this year, with the stock being HK's best-performing Chinese insurer.
Samsung Life's share price recovered slightly since our last update as LT Korean government bond yields further increased.
Prudential's thesis is slowly being played out, with its P/BV discount to AIA having narrowed; but still a long way to go. 


APAC Insurers Series (#3): Initial Theses At Different Stages of Being Played Out

<ul>
<li>Given Pru's demerger in 2021, it now offers investors a good alternative to AIA to tap into the development and the growth potential of the life insurance sector in Pan-Asia.</li>
<li>AIA has a more balanced business across so many markets in APAC, while Pru skews toward Southeast Asia.</li>
<li>Pru's P/BV is currently at a 30% discount to AIA's and is trading at the same level as the year-end when China just announced the re-opening of its borders.</li>
</ul>


Given Pru's demerger in 2021, it now offers investors a good alternative to AIA to tap into the development and the growth potential of the life insurance sector in Pan-Asia.
AIA has a more balanced business across so many markets in APAC, while Pru skews toward Southeast Asia.
Pru's P/BV is currently at a 30% discount to AIA's and is trading at the same level as the year-end when China just announced the re-opening of its borders.


APAC Insurers Series (#2): AIA or Prudential?

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>This is our first report on Prudential, a major provider of life and health insurance.</li><li>Prudential had a very strong quarter with 19% sales growth.</li><li>Despite slower revenue recognition in the life insurance market, the company has been witnessing strong cash flows and returned over $800 million to shareholders in the latest quarter.</li></ul>

This is our first report on Prudential, a major provider of life and health insurance.Prudential had a very strong quarter with 19% sales growth.Despite slower revenue recognition in the life insurance market, the company has been witnessing strong cash flows and returned over $800 million to shareholders in the latest quarter.

Prudential PLC: Initiation of Coverage – Expansion In Emerging Markets & Other Drivers

Hong Kong

Prudential is a multinational insurance and asset management company. It provides life and health insurance, long-term savings, and investment solutions, including mutual funds and annuities, to customers across Asia and Africa. The company was founded in London in 1848 and is headquartered in London and Hong Kong.

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Prudential (2378 HK)

APAC Insurers Series (#4): How We See the 3 Insurance Stocks in 2024

While we see limited upside in both PICC P&C and Samsung Life, we believe Prudential is the only one out of the three insurance stocks we...

Alec Tseung

Quiddity Leaderboard for Hang Seng Index Dec 23: High Conviction Names Have Decent Momentum Vs HSI

The Hang Seng Index changes for Dec 23 will be published after the close on Friday 17th November 2023. In this insight, you can see Quiddity's...

Janaghan Jeyakumar, CFA

APAC Insurers Series (#3): Initial Theses At Different Stages of Being Played Out

Theses for the three insurers we highlighted are at different stages of being played out: PICC P&C's has most materialized while Pru's still has a...

Alec Tseung

APAC Insurers Series (#2): AIA or Prudential?

Pru’s recent correction offers investors an opportune window to buy into its premium franchise (vs. AIA), although both stocks provide investors...

Alec Tseung

Prudential PLC: Initiation of Coverage – Expansion In Emerging Markets & Other Drivers

This is our first report on Prudential, a major provider of life and health insurance. Prudential had a very strong quarter with 19% sales...

Baptista Research

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