Underwriting business improving
- We upgrade PICC P&C from FULLY VALUED to BUY with TP at HK$11.0.
- Fundamental business set to improve with impact from auto insurance pricing reform alleviating and market discipline stabilizing
- Refocusing on quality growth in non-auto segment also helps improve underwriting profit. Pricing subsidy to drive agricultural insurance business quality
- Expect combined ratio to improve to 98.8%/98.6% in FY22/23F, revise up underwriting profit by 44%/74% and earnings by 2%/4%, respectively.