China Securities: the insurance industry is on the verge of a rebound, and it is recommended to focus on the investment opportunities of the Second Quarterly.

Krypton has been informed that the Watarin Securities Institute indicated that if market performance was stable in June, it would be the second quarter or the most profitable in the insurance industry this year. It is estimated that the pre-tax profits (median) of the listed insurance companies in the second quarter of 2026 are expected to rise by 23 to 171 per cent in comparison with the decline of 30 to 50 per cent in the first quarter of 2026. Since the beginning of the year, the insurance plate has been affected by market volatility and a decline in profitability in the first quarter, as well as by more extreme structural market conditions since the second quarter, with stock prices generally down by 10-30 per cent. The PB(MRQ) valuation has declined by about 20 per cent from its height at the beginning of the year, the margin of the valuation security has become apparent, the response to the potential profit rebound in the second quarter has been low and the tension between the profit and valuation deviation has accumulated. The level of indebtedness has remained strong, and industry fundamentals remain solid. As the second quarter draws to a close, the rebound in performance is expected to be an important catalyst for the market to revisit the value of the insurance sector, with recommendations for focusing on the investment opportunities of the second quarter.