PICC P&C released positive profit alert, expecting the net profit in the first three quarters to range from Rmb25-26bn. This implies PICC P&C’s 3Q22 preliminary net profit would reach Rmb 6-7bn, or +70%-99% y-o-y.
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
We have a BUY on PICC P&C with HK$11.0 TP
We will provide further update after the companies’ analyst call on 28 Oct
