Key takeaways
　　China Re held its first “Open Day” since IPO almost a year ago.Management explained the data and technology used in itsP&C/life reinsurance, and introduced its creative systems andproducts. We summarize the contents and our comments below.
　　Timely, accurate and China-oriented advisory services.Advantages include extensive data covering the whole market(sourcing 91%/93% of P&C/life insurers in PRC); China-orienteddatabase more accurate than international peers’; timelyupdates on risk pricing curve; variety of pricing platforms favoredby clients; leader role in government-initiated projects (givingfirst-mover advantage); regular report publication (similar toSwiss Re Sigma). Leveraging the advisory service it has gainedtrust from insurers, who are willing to share data and in returncontribute data & technology.
　　Product innovation. China Re helps primary insurers createproducts in new areas, such as index, catastrophe & inherentdefects insurance from on the P&C side, and USD policy/datasharing platforms on the life side. The innovations help the groupitself expand to new territory and increase its premiums.
　　Both advisory service and product innovation helpful toa group ROE. Advisory service business is mainly attached tonon-auto/life protection businesses, which have higher margins.Innovative policies with technical barriers usually have a highmargin. Both measures improve group business mix and ROE.
　　Strategy change in response to difficulties in traditionalbusiness lines: (1) to launch USD-denominated policies facingRMB depreciation, and help reverse the downtrend incross-border reinsurance; (2) timely development of newfinancial reinsurance policies under C-ROSS.
　　Recommendation
　　Reiterate BUY rating and unchanged TP of HK$2.30, or 22%above the current price. Risks include fatal catastrophes andlower-than-expected premium growth.