CITIC Securities: Expect the insurance sector adjustment to be over, and recommend actively seizing major opportunities.

CITIC Securities research reports indicate that the insurance sector has fallen 15% since the beginning of the year, mainly due to external factors. A 1x Price-to-Book ratio is a reliable indicator for investment. The fundamental cycle is upward and has been established by 2025, with trends strengthening since the first quarter of 2026, including continued reduction of liability costs on the liability side, more options on the asset side, and strict regulation promoting “anti-involution” to facilitate market share concentration. Meanwhile, there is anticipation for the implementation of policies related to the “14th Five-Year Plan,” promoting the coordinated development of medical insurance and commercial insurance, and achieving a win-win situation for patients, hospitals, doctors, innovative drugs, and insurance companies. The insurance sector is expected to complete its adjustment phase, and investors should actively seize major opportunities.