For the first time since 2004, Morgan Stanley captures the crown, rising from No. 2 under the guidance of Bin (Ben) Lin, 31, who joined the firm in 2009. Reporting on 23 Asian insurance companies, the three Hong Kong–based researchers are cautious overall on the sector, which rose 2.6 percent over 12 months through late April, lagging the broader regional market by 1.2 percentage points. “Although there appears to be value in the industry, and interest rate rises are seen as a positive for insurers in general,” says Lin, “our advice to investors is to be selective.” His trio prefers what he dubs “fundamentally proven companies,” or those whose strong management teams have demonstrated abilities to create value and maintain strong balance sheets. Names that fit the description, and have therefore earned a buy recommendation from the analysts, include Hong Kong–based multiline insurer AIA Group, a longtime favorite; China Pacific Insurance (Group) Co., a life and property insurance provider headquartered in Shanghai; and Ping An Insurance Group Co. of China, which is based in Guangdong and is among the region’s largest players. Before moving to Morgan Stanley to cover regional insurers, Lin performed similar roles at Nomura and Credit Suisse. He graduated with a master of commerce degree from Australia’s Macquarie University and studied actuarial sciences as part of his undergraduate degree. “As an actuary and a seasoned insurance analyst, his knowledge is far superior to most of his competitors’,” asserts one fan. “His work is based on detailed fundamental analysis.” |
The 2014 All-Asia Research Team: Insurance, No. 1: Bin (Ben) Lin & team
