[ET Net News Agency, 9 January 2020] Nomura lifted its target price for New China Life
(NCL)(01336) to HK$48.58 from HK$47.53 and maintained its "buy" rating.
The research house expects NCI to adopt a business strategy more balanced between volume
and value into FY2020, from its previously value-driven strategy, as (1) it pushes sales
of 4.025% guarantee return annuities for its open-year sales and launches single-premium
products for its bancassurance channel; and (2) its agency force reached 500,000 (+35%) in
FY2019.
Nomura lifted its FY2020/21 written APE (annual premium equivalent) growth forecast to
29%/10% from 12%/9%. Meanwhile, it expects to see NBV (new business value) margin
contraction for FY2020-21 due to the new business strategy. (KL)