(STMB MK/BUY/RM4.12/Target: RM4.60)

1Q17 premiums growth of 10% continued to trump our full-year forecast of 8%. On the capital management front, if dividend payout ratios were to revert to its historical level of 70% underpinned by its solid capital ratios, yields could rise to 4.6% from our current 3.3% estimate (on 50% payout ratio), the highest among peers. The group is also a net beneficiary of a rising interest rate environment with life insurance contributing a sizeable 74% of group assets and liabilities. Maintain BUY. Target price: RM4.60 (4.55x 2017F P/B, 18.4x 2017F PE).

Source: UOB Kay Hian Research - 22 Jun 2017