<News alert> PICC Group (1339 HK, HOLD) issued positive 3Q22 profit alert, +ve to share price
- PICC Group released positive profit alert, expecting the net profit in the first three quarters to range from Rmb 23-24bn respectively. This implies PICC Group’s net profit would reach Rmb 5-6bn, or +28%-54% y-o-y in 3Q22.
- PICC P&C’s better than expected result is mainly due to a) strong growth momentum in auto, A&H, agricultural insurance (total GWP +11% y-o-y in 3Q22), b) better than expected claim cost control and expense reduction
- PICC Group’s profit increase is mainly driven by solid improvement in P&C segment while partly offset by weak performance of Life segment
- We have a HOLD on PICC Group with HK$2.72 TP
- We will provide further update after the companies’ analyst call on 28 Oct