Typhoon Doksuri’s impact on Chinese insurance claims expected to be limited – JPMorgan
COMPANY NEWS VIEWS & ANALYSIS
Typhoon Doksuri’s impact on Chinese insurance claims expected to be limited – JPMorgan
COMPANY NEWS VIEWS & ANALYSIS

Typhoon Doksuri’s impact on Chinese insurance claims expected to be limited – JPMorgan

 

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Shares of Chinese insurance company PICC Property and Casualty has underperformed the market over the past 5 days, with a cumulative decline of 3%, as Super Typhoon Doksuri caused massive flooding in many parts of China, JPMorgan said in a note. 

Although investors may be concerned that China’s insurance industry will have to face large claims, the impact is expected to be limited, with the amount involved expected to be less than 1 billion yuan, and the annual compensation ratio may rise by only 0.01%, it noted. 

The broker rated PICC P&C at Neutral and gave it a target price of HK$8.4.

The broker believes that if Chinese insurance stocks experience greater volatility due to market concerns, it would be a good opportunity to accumulate Ping An, a major non-life insurer. The broker rated Ping An Outperform and gave it a target price of HK$85.