Table of contents
Investment summary: Life and non-life insurers............................................................. 3
Valuation: Non-life insurers more attractive .................................................................. 11
EV & AV approach used because policies are based on long-term contracts .................... 11
Why EV & AV? ................................................................................................................... 11
EV & AV comparison, by company..................................................................................... 14
Valuation: Consistent standards used to reconstruct EV & AV analysis............................. 16
Life and non-life insurers to grow together ................................................................... 25
Life insurers have more room to grow .............................................................................. 25
Gap narrowing .................................................................................................................. 26
Profitability levels expected to improve......................................................................... 31
IPOs to improve life insurers' profitability .......................................................................... 31
Profitability gaps create capital adequacy gaps.................................................................. 38
Product competitiveness differentiated ......................................................................... 40
Business spheres to eventually merge ............................................................................... 40
Regulations governing life and non-life insurers overlap .................................................... 41
Life insurers gaining edge in investment-lined insurance products .................................... 42
Pensions (taxable and tax-exempt) .................................................................................... 45
Protection products: Life insurers unlikely to quickly gain indemnity experience................ 47
Non-life insurers strong in bundled products ...................................................................... 49
General insurance market to expand ................................................................................. 49
Sales channel evolution: Crisis and opportunity .......................................................... 50
New sales channels key to competitiveness ...................................................................... 50
Traditional sales channels dragging down life insurers .................................................... 51
Flexibility in distribution-channel mixes essential ............................................................... 54
Share price catalysts for life insurers............................................................................. 57
Though less competitive, life insurers should still attract investors..................................... 57
To benefit from structural decline in funding costs ............................................................. 57
Holding company transitions .............................................................................................. 60
Life insurer IPOs................................................................................................................. 62