Underwriting profit on recovery trend
- PICC’s risk mitigation system, unveiled on its Investor Day, has been effective in reducing potential claims and improve the insurer’s COR
- Higher natural catastrophic (nat cat) losses pushed up COR by c.2.6ppt in 3Q23, while management guided FY23F COR to be maintained at 97% for auto and 100% for non-auto
- Underwriting profit on a recovery trend, benefiting from lower auto expense competition and high-quality growth in non-auto
- We revise down COR by 0.4ppt to 98% in FY23F. With underwriting profit to further improve in FY24F, we lift TP to HK$11 on higher multiple. Maintain BUY
