External broker reports(aggregated public sources), CMB International

CMB International

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

External broker reports(aggregated public sources)

Equity Bottom-Up

PICC Property & Casualty H / Equity Bottom-Up

<ul><li>We expect PICC P&amp;C, the P&amp;C forerunner, to meet both auto and non-auto combined ratio (CoR) guidance of 97%/100%, to land at 96.9%/99.8%, based on our forecast.</li><li>With a benign competitive landscape under tightened regulatory scrutiny and the industry self-discipline convention led by 8 top P&amp;C insurers in Nov 2023, we expect the insurer’s auto expense ratio to drop in 2H23, primarily in 4Q23, to 27.5%, flat vs FY22, whereas the loss ratio to rise to 69.4% (vs 68.1% in FY22), affected by increasing natural catastrophic (NAT CAT) claims in 3Q23.</li><li>In 2024E, we estimate the underwriting profit to rise ~12% YoY, driven by 7% total premium growth and a slight CoR improvement to 98.0% (-0.1pct from FY23E’s 98.1%), thanks to an optimized non-auto structure with risk clearance in some loss-making lines, i.e. liability and commercial property. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We expect PICC P&amp;C, the P&amp;C forerunner, to meet both auto and non-auto combined ratio (CoR) guidance of 97%/100%, to land at 96.9%/99.8%, based on our forecast.With a benign competitive landscape under tightened regulatory scrutiny and the industry self-discipline convention led by 8 top P&amp;C insurers in Nov 2023, we expect the insurer’s auto expense ratio to drop in 2H23, primarily in 4Q23, to 27.5%, flat vs FY22, whereas the loss ratio to rise to 69.4% (vs 68.1% in FY22), affected by increasing natural catastrophic (NAT CAT) claims in 3Q23.In 2024E, we estimate the underwriting profit to rise ~12% YoY, driven by 7% total premium growth and a slight CoR improvement to 98.0% (-0.1pct from FY23E’s 98.1%), thanks to an optimized non-auto structure with risk clearance in some loss-making lines, i.e. liability and commercial property. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

PICC P&C (2328 HK) - Expect FY23E CoR Guidance Met