AsiaPacificEquityResearch02May2019AsiaInsuranceFocus&Debate:Questionsfor2Q19InsuranceMWKimAC(852)2800-8517mw.kim@jpmorgan.comBloombergJPMAMKIMJ.P.MorganSecurities(AsiaPacific)LimitedAditiJoshi(91-22)6157-3366aditi.joshi@jpmorgan.comJ.P.MorganSecurities(AsiaPacific)Limited/J.P.MorganIndiaPrivateLimitedDeepikaMundra(91-22)6157-3582deepika.mundra@jpmorgan.comJ.P.MorganIndiaPrivateLimitedJoanneCheng(852)2800-8566joanne.cheng@jpmorgan.comJ.P.MorganSecurities(AsiaPacific)LimitedJJPark(82-2)758-5717jj.park@jpmorgan.comJ.P.MorganSecurities(FarEast)Limited,SeoulBranchBharatIyer(91-22)6157-3600bharat.x.iyer@jpmorgan.comJ.P.MorganIndiaPrivateLimitedSeepage23foranalystcertificationandimportantdisclosures,includingnon-USanalystdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.www.jpmorganmarkets.comInthisreport,wesummarizethemainpointsofinvestorfocusanddiscussionaroundthe1Q19resultannouncementsandconferencecalls.Wealsohighlightseveralkeytrendsintheregionthatwebelieveshouldbemonitoredclosely:lifefront-book(margin/volume),lifeback-book,distribution,non-lifecycle,earnings,andB/Sitemsamidfallingbondyields.Sofarthisseason,ChinaLife,PingAnGroup,SBILife,andHDFCLifehavereportedthestrongestquarterlyresults.LifeproductmarginupsideinChina/India.Weareseeingevidenceofverystronglifeproductmixenhancementinthisquarter,especiallyformajorlifeinsurersacrosstheregion.ChinaLife/PingAnLifereported28%/6%oyaNBVgrowth,whileSBILife/HDFCLifereported23%/13%oyaNBVgrowth.Weforecast18%oya1Q19NBVforAIAGroup.Newsalesvolumeinlifemarketlookedmixed,butstronginIndia.During1Q19,China’smajorinsurersreportedfirstyearpremiumsdeclined12%oya,excludingChinaLife/NewChinaLife,asinsurerscutvolumesonshort-termsavingspolicies.Ashighvolumeseasonisover,weexpectavolumerecoveryfrom2Q19.Weexp...
