Overall, the seven listed insurance companies maintained a positive development trajectory in the first half of 2025.

As of now, all listed insurance companies have released their 2025 interim reports. From an overall perspective, both life insurance and property insurance sectors maintained their positive momentum.

Life insurance premiums showed overall upward growth, reflecting comprehensive quality and efficiency improvements across life insurance companies. On one hand, new business value achieved double-digit growth across the board; on the other hand, the strategic emphasis on participating insurance products has been clearly reflected in the data.

The property insurance industry presented a "spring-like" outlook, with not only comprehensive growth in premiums and net profits, but also effective optimization of comprehensive cost ratios through refined management processes, thereby ensuring reasonable increases in underwriting profits. Additionally, the new energy vehicle insurance trend has entered property insurance companies' portfolios, becoming a business growth highlight.

On the asset side, under the dual impact of low interest rates and "asset shortage," achieving positive growth in net investment income across all companies was particularly noteworthy. The strategies adopted by major insurers can be summarized as "fixed income as shield, equity as spear, alternatives as wings," aimed at navigating cycles and pursuing long-term stable absolute returns. Furthermore, multiple senior executives expressed optimism about equity markets and actively deployed in private equity and other fields.

(Note: This analysis compares seven listed insurance companies: China Life, PICC, China Taiping, CPIC, New China Life, Ping An Insurance (Group) Company Of China, Ltd., and Sunshine Insurance)

**Life Insurance Value Leadership:** China Life premiums reach new highs, PICC NBV growth significant, New China Life leads in net profit growth, Ping An Insurance (Group) Company Of China, Ltd. premiums slightly increase, Sunshine Insurance maintains steady positive momentum

In the first half of 2025, the personal insurance industry achieved moderate overall growth, with the seven listed insurance companies and their life insurance subsidiaries delivering impressive performance. Each company made significant progress in value growth, structural optimization, and profitability.

From total premiums perspective, multiple insurers reached new levels with strong premium growth momentum. Life insurance leader China Life achieved its best historical performance for the same period, with premiums increasing 7.3% year-on-year to 525.088 billion yuan; New China Life achieved original insurance premium income of 121.262 billion yuan, up 22.7% year-on-year; CPIC Life achieved scale premiums of 193.47 billion yuan in the first half, up 13.1% year-on-year; PICC Life's original insurance premium income was 90.513 billion yuan, up 14.5% year-on-year; Sunshine Life achieved total premium income of 55.44 billion yuan, up 7.1% year-on-year; China Taiping Life's original premiums grew 3.9% to HK$124.853 billion; Ping An Insurance (Group) Company Of China, Ltd.'s life and health insurance premiums increased slightly by 0.62% year-on-year to 390.189 billion yuan.

Despite overall premium growth, net profit growth showed a "five up, two down" pattern. New China Life's net profit increased 33.5% year-on-year, ranking first, while Sunshine Life's growth rate of 5.6% ranked second. CPIC Life increased 3.2% year-on-year, ranking third. Ping An Insurance (Group) Company Of China, Ltd.'s life and health insurance and PICC Life's net profit growth rates declined by 3.3% and 30.9% respectively.

New business value, as a core indicator measuring life insurance companies' growth potential, performed outstandingly in the first half of this year, with six listed insurers achieving double-digit growth. The top three growth rates were: PICC Life's new business value increased 71.7% year-on-year; New China Life's new business value grew 58.43%; Sunshine Life's new business value grew 47.3% year-on-year on a comparable basis.

Behind the performance lies the "mutual advancement" of channel restructuring. Major companies promoted "personnel optimization and quality improvement" in individual insurance channels, developing toward elite and professional directions; bancassurance channels, under the guidance of "unified reporting and implementation" policies, gradually entered a new stage of "value bancassurance."

In the first half of 2025, Sunshine Life's individual insurance channel growth was most remarkable, increasing 12.1% year-on-year. Other institutions maintained growth rates between 0.9%-5.5%. Meanwhile, per capita productivity generally improved, for example, New China Life's monthly average per capita comprehensive productivity was 16,700 yuan, up 74% year-on-year; CPIC Life's core manpower monthly per capita first-year scale premiums were 72,000 yuan, up 12.7% year-on-year; China Taiping Life's monthly per capita regular premium was 24,000 yuan, up 46.15% from the beginning of the year; Sunshine Life's active per capita productivity was 28,000 yuan, continuing to maintain high levels.

Multiple company executives indicated they will continue promoting individual insurance channel marketing system reforms, strengthening professional, career-oriented and younger workforce development, relying on these channels to achieve diversified business development. China Life President Li Mingguang revealed that the company is building a sales personnel qualification grading system based on industry grading frameworks and will promote implementation according to regulatory requirements. CPIC President Zhao Yonggang pointed out that individual insurance channels should use marketing system reform as an opportunity to deepen professional and career-oriented workforce development, consolidating agents' value contribution to the company. Sunshine Insurance stated in its performance report that it will continue promoting the "one body, two wings" strategy, deepening differentiated operations and professional domain innovation.

Bancassurance channels also performed strongly, with multiple companies achieving double-digit premium growth. Ping An Insurance (Group) Company Of China, Ltd.'s life and health insurance bancassurance channel income was 41.597 billion yuan, surging 143% year-on-year; CPIC Life's bancassurance channel premiums increased 82.6% year-on-year to 41.66 billion yuan; China Life's bancassurance channel income was 72.444 billion yuan, up 45.7% year-on-year.

Meanwhile, the strategic position of participating insurance has been reflected in the data. China Life mentioned in its annual report that "individual insurance channels vigorously promoted floating return products, with participating insurance accounting for over 50% of first-year regular premiums, becoming important support for new business premiums"; participating insurance accounted for 51.0% of new regular premiums in CPIC Life's agent channels; floating return and protection products also accounted for over 50% of Sunshine Life's individual insurance total premiums.

**Property Insurance Diversified Competition:** Comprehensive cost ratios generally decline, underwriting profits rise Non-auto insurance shows distinctive characteristics

While life insurance business surged ahead, the property insurance market also displayed a new pattern of diversified development. Five listed insurers' property insurance subsidiaries—PICC P&C, China Taiping P&C, CPIC P&C, Sunshine P&C—showed four common characteristics in the first half: "auto insurance stabilizes the foundation, non-auto expands space, profits reach new highs, comprehensive cost ratios decline." Leading property insurers are at the forefront of high-quality development.

In the first half of 2025, all five insurers achieved premium growth, with growth rates of: Ping An P&C up 7.14% to 171.857 billion yuan, PICC P&C up 3.6% to 323.282 billion yuan, China Taiping P&C up 3.1% to HK$19.338 billion, Sunshine P&C up 2.5% to 25.27 billion yuan, and CPIC P&C up 0.9% to 112.76 billion yuan.

Comprehensive cost ratios showed comprehensive optimization in the first half, with Ping An P&C declining 2.6 percentage points to 95.2%; PICC P&C and China Taiping P&C both declining 1.5 percentage points to 95.3% and 95.5% respectively; CPIC P&C declining 0.7 percentage points to 96.3%; Sunshine P&C at 98.8%, down 0.3 percentage points year-on-year. Improved comprehensive cost ratios drove significant increases in underwriting profits, with PICC P&C's underwriting profit of 11.699 billion yuan, up 53.5% year-on-year; Sunshine P&C achieved underwriting profit growth of 42.4% year-on-year; CPIC P&C's underwriting profit of 3.55 billion yuan, up 30.9% year-on-year.

In the auto insurance segment, new energy vehicle insurance and personal auto business became growth highlights. Sunshine P&C's new energy vehicle insurance premium proportion increased 2.1 percentage points; Ping An P&C's new energy vehicle insurance original premium income was 21.7 billion yuan, up 46.2% year-on-year; CPIC P&C's new energy vehicle insurance original premium income was 10.596 billion yuan, accounting for 19.8% of auto insurance, gradually becoming an important growth engine.

Non-auto insurance showed different focuses, with Sunshine P&C's characteristics reflected in premium income—non-auto insurance premiums increased 12.5% year-on-year to 12.78 billion yuan, with non-auto insurance premiums accounting for over 50%; PICC P&C focused on personal non-auto insurance business accompanying vehicles, with non-auto insurance penetration rate increasing to 77%; CPIC P&C performed outstandingly in non-auto insurance comprehensive cost ratio control, declining 2.3 percentage points to 94.8% after excluding credit guarantee insurance.

Currently, the property insurance industry's "anti-involution" trend is significant, promoting industry transformation from price wars and scale competition toward product, service, and technological innovation. In this context, multiple insurers indicated they will strengthen customer service and operational system improvements. Sunshine Insurance stated it will build a full-process intelligent closed-loop service system, achieving "personalized service for each individual," promoting the industry toward a customer-centric deep operation era.

**Balanced Asset Allocation:** Net investment income increases significantly year-on-year Multiple executives voice optimism about equity markets

Coordinated development of asset and liability sides is key to insurance companies' stable operations. In the first half of 2025, bond market rates fluctuated at low levels with scarce quality assets; stock markets fluctuated upward with evident structural differentiation. Facing complex environments, the seven insurers' asset sides adopted "fixed income as shield, equity as spear, alternatives as wings," balancing various asset allocations with net investment income achieving substantial growth.

Specifically, in the first half of 2025, PICC's net investment income was 30.324 billion yuan, up 13.2% year-on-year; Sunshine Insurance's net investment income was 9.79 billion yuan, up 9.4% year-on-year; New China Life's net investment income was 23.46 billion yuan, up 9.2% year-on-year; CPIC's net investment income was 42.567 billion yuan, up 8.9% year-on-year; Ping An Insurance (Group) Company Of China, Ltd.'s net investment income was 92.823 billion yuan, up 5.2% year-on-year; China Taiping's net investment income was HK$25.268 billion, up 3.1% year-on-year.

Against the backdrop of continued low interest rates and asset shortage, listed insurance companies generally view the second half as a "position-building window period"—using high-dividend assets as shields and growth tracks as spears, steadily increasing equity allocations to both enhance investment returns and provide continuous medium- and long-term funds for capital markets.

China Life Vice President, Chief Investment Officer, and Board Secretary Liu Hui stated: "Regarding equity markets, we remain optimistic about A-share markets in the second half. Hong Kong stock markets are also an important component of our equity investment allocation. This year China Life obtained QDII investment quotas, and with continued valuation recovery in Hong Kong stock markets, these funds will be invested in Hong Kong stocks, focusing on allocation opportunities in new economy and high dividend sectors."

PICC Vice President Cai Zhiwei stated, "High dividend stocks have characteristics of relatively high dividend returns, especially under the trend of declining interest rate centers and traditional fixed income asset returns, playing a positive role in stabilizing total portfolio investment returns. PICC Group continuously focuses on high dividend investment strategies, steadily increasing OCI stock allocation intensity."

"New China Life will place greater emphasis on the allocation value of high dividend stocks. Against the backdrop of declining interest rate centers, quality high dividend stocks will not only form stable dividend cash flows and stable net investment return rates, but can also smooth profit fluctuations by being classified into OCI accounts under new accounting standards," stated New China Life Vice President Qin Hongbo.