First Listed Insurance Company Annual Report Released! Stock Allocation Increased, Bond Proportion Decreased

Source: Securities Times Network Author: Liu Jingyuan

Listed insurance companies release their first performance report for 2025.

On the 16th, Sunshine Insurance (06963.HK) announced its 2025 annual report, showing total premium income of 150.72 billion yuan, a year-on-year increase of 17.4%. Insurance service income reached 65.07 billion yuan, up 1.7% year-on-year. Net profit attributable to the parent company shareholders was 6.31 billion yuan, an increase of 15.7%. Earnings per share were 0.55 yuan.

The group plans to distribute a final cash dividend for 2025 of 0.19 yuan per share (tax included), totaling 2.185 billion yuan.

As of the end of 2025, Sunshine Insurance Group’s total assets were 673.34 billion yuan, a 15.7% increase. Among its investment assets exceeding 640 billion yuan, the proportion of bond investments decreased, while stocks and equity funds increased.

Rising interest rates led to a decline in the valuation of existing long-term bonds, and the proportion of equity assets increased.

The investment business of insurance companies has attracted market attention. The annual report shows that Sunshine Insurance Group’s total investment assets at the end of 2025 were 640.20 billion yuan, a 16.7% increase.

(Sunshine Insurance’s 2025 investment asset allocation disclosed in the annual report)

In terms of asset allocation, Sunshine Insurance’s proportion of fixed income assets decreased, while equity assets increased.

In fixed income, the share of bond investments declined significantly. As of December 31, 2025, bond investments accounted for 52.2% of total investment assets, down 5.5 percentage points from the previous year, mainly due to rising interest rates causing a decline in the valuation of existing long-term bonds; government bonds made up 69.3% of bond investments, up 1.3 percentage points from the end of the previous year.

As of December 31, 2025, the scale of equity financial assets held by Sunshine Insurance was 136.43 billion yuan, accounting for 21.4% of total investment assets, up 1.4 percentage points year-on-year. Among these, stocks and equity funds totaled about 95 billion yuan, representing 14.9% of total investment assets, an increase of 1.6 percentage points from the end of the previous year.

Sunshine Insurance stated that it adheres to research-driven, active management principles for equity assets, actively explores investment opportunities, and emphasizes investments in high-dividend-yield value stocks and high-quality growth stocks with sustainable growth.

From an investment performance perspective, Sunshine Insurance achieved good investment returns. In 2025, it realized a total investment income of 25.23 billion yuan, up 27.1% year-on-year; comprehensive investment income was 32.44 billion yuan, an increase of 8.9%. Looking at investment yields, the group’s net investment yield for 2025 was 3.7%, down 0.5 percentage points year-on-year; total investment yield was 4.8%, up 0.5 percentage points; comprehensive investment yield was 6.1%, down 0.4 percentage points.

At the end of 2025, Sunshine Asset Management’s entrusted third-party assets under management reached 225.94 billion yuan.

Life insurance new business value increased by 48.2%, property insurance combined cost ratio was 102.1%

In terms of insurance business, Sunshine Insurance conducts life and property insurance through its subsidiaries Sunshine Life and Sunshine Property & Casualty.

For life insurance, in 2025, Sunshine Life’s premium scale surpassed 100 billion yuan, reaching a total premium income of 102.61 billion yuan, a 27.5% increase. The new business value was 7.64 billion yuan, up 48.2%.

Among the main channels for life insurance, individual insurance achieved total premium income of 25.98 billion yuan, up 13.6%; new single premiums were 6.05 billion yuan, with more than half from floating return and guaranteed products. The bancassurance channel achieved total premiums of 67.46 billion yuan, up 34.8%, with new single premiums of 34.09 billion yuan, up 69.0%. Floating return products accounted for 32.2% of new single premiums.

For property insurance, Sunshine Property & Casualty achieved original insurance premium income of 47.89 billion yuan in 2025, a slight increase of 0.1%. Non-auto insurance premiums accounted for 46.1%, up 1.9 percentage points year-on-year.

In terms of underwriting profitability, Sunshine Property & Casualty’s combined ratio was 102.1% in 2025, deteriorating by 2.4 percentage points, with underwriting losses of 1.03 billion yuan. This was mainly due to guarantee insurance business, which, excluding guarantee insurance, had a combined ratio of 98.9%, down 1 percentage point, with underwriting profits of 490 million yuan.

The 2025 annual report shows that the guarantee insurance combined ratio was 129.0%, with underwriting losses of 1.51 billion yuan. The company explained that the losses were mainly due to the decision to cease new guarantee insurance business related to financing starting from 2026, in response to market environment changes and macro policy adjustments, and to prudently set aside reserves.

Sunshine Insurance disclosed cost optimization efforts in the annual report: in 2025, to hedge operational risks from declining interest rates, the company implemented management improvements centered on fixed costs, variable expenses, and liability costs. Overall, fixed costs were reduced by 9.8%, with Sunshine Property & Casualty and Sunshine Life’s variable expense ratios decreasing by 1.5 and 8.4 percentage points respectively. Total fixed and variable costs decreased by over 2 billion yuan; the costs for new single premium guarantees and existing policies for Sunshine Life further declined.