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    Rick Chow

    Research Analyst at Morgan Stanley

    Rick Chow is a Research Analyst at Morgan Stanley, specializing in coverage of Chinese insurance companies, with a focus on China Life Insurance Co. He is known for his in-depth analysis of premium growth, critical illness product recovery, and investment yields, having participated in several earnings calls with direct, targeted questions to management. Details about his performance metrics, such as success rates or TipRanks rankings, are not publicly available, and his broader coverage list is not specified beyond China Life Insurance. Chow's professional credentials, including securities licenses and prior experience, are not readily documented in the public domain.

    Rick Chow's questions to CHINA LIFE INSURANCE CO (CILJF) leadership

    Rick Chow's questions to CHINA LIFE INSURANCE CO (CILJF) leadership • Q1 2023

    Question

    Rick Chow from Morgan Stanley asked for a breakdown of the growth in first-year regular premiums with a 10+ year duration, specifically questioning if critical illness (CI) products have seen a recovery. He also inquired about the reasons for the net investment yield dropping to 3.6% in Q1 and the management's outlook on interest rates.

    Answer

    An Unknown Executive confirmed the 5.1% growth in 10+ year duration business but noted that new critical illness (CI) business still experienced negative growth, an industry-wide issue. They expressed long-term confidence in CI recovery. Regarding the investment yield, an executive attributed the decline to the timing of dividend income and lower returns from fixed-income assets due to falling interest rates. The company plans to counter this by adjusting its asset allocation strategy.

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    Rick Chow's questions to CHINA LIFE INSURANCE CO (CILJF) leadership • Q1 2023

    Question

    Rick Chow from Morgan Stanley asked for a breakdown of the 5.1% growth in products with 10+ year payment durations, specifically questioning if critical illness (CI) products saw positive growth and the outlook for their recovery. He also requested more color on the drop in the net investment yield to 3.6% in Q1 from 4% in the prior year.

    Answer

    Grace Hou, Head of Investor Relations, clarified that while 10+ year duration products grew, the critical illness business still experienced negative growth, an industry-wide trend. She noted long-term potential for CI products remains. Regarding the net investment yield decrease to 3.62%, she attributed it to the different timing of dividend receipts from funds and the impact of declining interest rates on fixed-income assets. The company plans to counter this by increasing allocation to high-dividend stocks and stable alternative assets.

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    Rick Chow's questions to CHINA LIFE INSURANCE CO (CILJF) leadership • Q1 2023

    Question

    Rick Chow from Morgan Stanley asked for a breakdown of the 5.1% growth in products with a 10-year or longer payment duration, specifically between critical illness (CI) and long-term savings products. He also questioned the drop in net investment yield to 3.6% in Q1 from 4% in the prior year and sought more details on the interest rate outlook.

    Answer

    An Unknown Executive confirmed that while 10-year-plus premium products grew, the critical illness segment experienced negative growth, reflecting an industry-wide trend. Regarding investments, an Unknown Executive attributed the drop in net investment yield to 3.62% to the timing of dividend income and the declining interest rate environment in China. The company plans to counter this by enhancing its allocation to countercyclical and alternative assets.

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    Rick Chow's questions to CHINA LIFE INSURANCE CO (CILJF) leadership • Q1 2023

    Question

    Rick Chow from Morgan Stanley asked for a breakdown of the 5.1% growth in first-year regular premiums with a 10+ year duration, questioning if both critical illness (CI) and savings products grew. He also inquired about the drop in the net investment yield to 3.62% and the company's outlook on interest rates.

    Answer

    An unnamed executive confirmed that while 10-year+ premiums grew, new business from critical illness products saw a negative growth, an industry-wide issue. They expressed long-term optimism for CI products due to a growing insurable population. Regarding the net investment yield, an executive attributed the year-over-year decline to the timing of dividend income and the lower returns on new fixed-income assets in a declining rate environment. The company plans to counter this by increasing allocation to high-dividend stocks and stable alternative assets.

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