1. The valuation method of property insurance companies is usually based on the price-to-book ratio index. The P/B ratio is an index to compare the market value of a company with its net assets (i.e. book value).
2. The price-to-book ratio index can be used to measure the valuation level of a company, especially for industries with physical assets (such as real estate and equity investment), among which property insurance companies are a typical example.
3. Because the assets of property insurance companies are mainly insurance portfolios and fixed assets, these assets often have high observability and stability, so the price-to-book ratio index can provide relatively accurate valuation reference.