Guotai He Tong: Investment disruption affects profit expectations, suggest paying attention to undervalued insurance sector.

Guotai Haitong released a research report stating that in the background of the macroeconomic indicators rebounding and interest rates stabilizing and rising, the valuation repair of insurance stocks is expected to gradually begin. The opportunities for configuring high-quality insurance companies with sound operations, low valuations, and high dividend yields are highlighted. On the liability side, the bank expects overall growth in new business in the first quarter of 2026, with the bank-insurance channel expected to be an important growth driver. Looking at the investment side, stabilizing interest rates coupled with insurance companies optimizing their asset allocation structure are expected to drive profit improvement. The industry maintains a "buy" rating.