5 of the 20 largest insurers in Asia-Pacific saw their market capitalizations increase sequentially in Q2 2024, according to S&P Global analysis.
China Life Insurance overtook fellow Hong Kong-listed Ping An Insurance of China to become the largest insurer in Asia-Pacific by market capitalization in the second quarter.
China Life’s market capitalization grew sequentially by 9% to $99.5 bn during the period. Ping An’s sequential market cap growth of 3.6% to $94.4 bn, on the other hand, failed to prop the insurer up on top of the ranking.
According to GlobalDatas Insurance Market Outlook in Asia-Pacific, the global property insurance industry recorded a CAGR of 4.1%, backed by an increase in weather-related events, which fueled the demand for property insurance.
The motor insurance industry in Asia-Pacific will grow at a CAGR of 5.4% over 2022–2027, supported by the recovery in new vehicle sales and product innovation in motor insurance. Among all the regions, Asia-Pacific recorded the highest increase in this industry. Its share in global premiums increased from 14.3% to 17.2%.
Speculations about the delayed repayment of Ping An’s property-linked investment product slightly affected the insurer’s stock early in the quarter.
Ping An said the delay was due to the ongoing real estate downturn and promised to find ways to recover investors’ money.
The product had raised millions of yuan for a property project in China, but all the money went into a regulatory account after Chinese developer Zhenro Properties Group defaulted.
Top 20 Largest insurers in Asia-Pacific
Hong Kong-listed AIA Group, Life Insurance of India, and Japan’s Tokio Marine Holdings kept their rankings at third, fourth, and fifth places, respectively.
Japan-based MS&AD Insurance Group Holdings Inc. saw the largest market cap increase, rising 32.3% to $35.3 bn. This growth moved it up to sixth place from ninth. Tokio Marine followed with a 26.7% increase to $73.2 bn.
9 of the top 10 insurers by market cap had positive total returns in the Q2 2024. Bajaj Finserv was the exception, with a negative return of 3.3%.
Shares of Japanese property and casualty insurers surged after they provided guidance that exceeded analysts’ expectations and clarified plans to unwind cross-shareholdings.
Total return of Top Asia-Pacific insurers by market cap
MS&AD ended fiscal 2023 with higher net income and adjusted earnings. It expects fiscal 2024 group adjusted profit to rise by ¥250 bn. Tokio Marine projects at least a 7% growth in adjusted net income.
China Pacific Insurance and Fubon Financial Holding both entered the Top 10, ranking 7th from 12th and 8th from 10th, respectively, after double-digit market cap increases. Cathay Financial moved to 13th place from 15th with a 21.3% market cap increase to $26.64 bn.
In total return, MS&AD and Tokio Marine recorded the highest at 31.9% and 27.7%, respectively.
by Katherine Dela Cruz, S&P Global
