CPIC Life's General Manager Li Jinsong stated that the company will promptly follow up on the sales of dividend-based critical illness insurance once regulatory details are released.

On the evening of October 30, CPIC released its Q3 2025 financial report and held an earnings briefing. Executives including Vice President and CFO Su Gang and CPIC Life's General Manager Li Jinsong attended and responded to investor inquiries.

Driven by capital market gains and growth in insurance service performance, CPIC achieved Q3 revenue of RMB 144.408 billion, up 24.6% year-on-year (YoY), with net profit reaching RMB 17.815 billion, a 35.2% YoY increase.

At the briefing, Su Gang noted that under the guidance of the insurance industry's "New Ten Measures," CPIC has focused on its core responsibilities, deepened reforms to drive transformation, and steadily enhanced competitiveness, delivering stable and progressive results.

In asset management, Su Gang emphasized CPIC's disciplined yet flexible tactical asset allocation strategy, prioritizing long-term fixed-income investments while extending asset duration. The company strengthened active equity management, favoring undervalued, high-dividend stocks with strong long-term profitability, and adopted a diversified "core + satellite" investment approach to achieve steady returns.

**Dividend-Based Critical Illness Insurance Returns After 22 Years**

Overall, CPIC reported revenue of RMB 344.904 billion in the first three quarters, up 11.1% YoY, with insurance service income rising 3.6% to RMB 216.894 billion. Net profit grew 19.3% to RMB 45.7 billion.

Both CPIC Life and CPIC Property & Casualty (P&C) saw YoY growth in premium scale and insurance service income.

CPIC Life recorded RMB 263.863 billion in premium scale, up 14.2% YoY, with new business value rising 7.7% to RMB 15.351 billion (31.2% under comparable standards). Insurance service income increased 2.6% to RMB 63.98 billion.

CPIC P&C reported RMB 160.206 billion in direct premiums, up 0.1% YoY, while insurance service income grew 3.5% to RMB 150.806 billion. The combined ratio improved by 1.0 percentage point to 97.6%. Auto insurance premiums rose 2.9% to RMB 80.461 billion, while non-auto premiums reached RMB 79.745 billion.

CPIC Life's bancassurance channel stood out, with premium scale surging 63.3% to RMB 58.31 billion, including a 43.6% increase in new regular-premium policies to RMB 15.991 billion.

The Q3 report showed that dividend-based products accounted for 58.6% of CPIC Life's agent-channel new regular-premium policies, with mid-to-high-net-worth clients rising 4.8 percentage points. The average monthly salesforce remained stable at 181,000, while core agents' first-year premium per capita jumped 16.6% to RMB 71,000.

Li Jinsong highlighted CPIC's bancassurance strength in joint-stock banks, though state-owned banks contributed significantly this year, increasing their share from 22% to 36%, led by ICBC and CCB. CPIC Life plans to expand bancassurance outlets further in 2026, with its workforce expected to grow 30% to around 6,200.

Regarding dividend-based product transformation, Li noted that such policies now exceed 70% of sales, with floating-return products projected to surpass 50% next year. Health insurance will also gain share, and CPIC will swiftly launch dividend-based critical illness insurance post-regulatory approval.

Tian Lihui, Dean of Nankai University's Institute of Financial Development, remarked that CPIC's dividend-based products exceeding 70% reflect market recognition of floating returns, signaling a strategic response to low-interest-rate conditions. He expects these products to drive growth in 2026, offering a replicable industry model.

Recent policies promoting health insurance, especially dividend-based critical illness coverage, have created new opportunities. On September 30, the National Financial Regulatory Administration issued guidelines supporting insurers with strong ratings in offering dividend-based long-term health insurance, marking the return of such products after a 22-year hiatus since 2003.

Tian added that dividend-based critical illness insurance addresses inflation-related "coverage shrinkage" via increasing benefits, positioning it as a bridge between health services and insurance protection.

**Investment Returns Double in First Three Quarters**

CPIC's investment assets grew 8.8% YoY to RMB 2.97 trillion by Q3. Net investment yield stood at 2.6%, while total investment yield rose 0.5 percentage points to 5.2% (non-annualized). Investment income surged 168.78% YoY to RMB 39.228 billion.

Su Gang explained CPIC's "net yield plus" asset-liability management framework, which leverages macroeconomic and asset-class forecasts for cyclical strategies. The company capitalized on interest rate fluctuations, credit spreads, and innovative fixed-income products like ABS and REITs to bolster returns.

In equities, CPIC maintains a dividend-focused strategy, targeting high-yield, stable-growth stocks to enhance cash flow and resilience against market downturns.

Su stressed the importance of growth stocks, aligning with China's innovation-driven economic transition, and noted CPIC's successful navigation of sector rotations in A- and H-shares.