CITIC Securities: The insurance sector currently presents a pattern of mismatch between good fundamentals and low valuation, with the value of allocation highlighted.

CITIC Securities research report stated that the insurance sector is currently showing a mismatch between good fundamentals and low valuation, highlighting the value of allocation. The sector's valuation is still low, with the PEV valuation of many listed insurance companies below the 20th percentile of the past three and five years, indicating that the market has excessively priced in the pressure from the high base. It has not fully reflected the positive expectations of improvements in liabilities and profit repairs, indicating sufficient potential for valuation recovery.