Earnings call responds to six major hot topics! China Pacific Insurance Management: Steadily advancing the "Three Major Strategies" and responding to the call for long-term capital market entry

Insurance main business sees both growth in volume and price, with the new business value of life insurance increasing by over 40%, and property insurance underwriting profit rising by over 80%… China Pacific Insurance’s core business data for 2025 shows impressive performance.

At the performance briefing held on the afternoon of March 27, China Pacific Insurance Chairman Fu Fan, President Zhao Yonggang, and other management shared insights on six market-focused hot topics, including group layout, insurance main business, investment management, artificial intelligence, and health care strategy, revealing more strategic thinking.

Overall operations are steady and improving, steadily advancing the “three major strategies.”

In 2025, China Pacific Insurance achieved total operating revenue of 435.156 billion yuan, a year-on-year increase of 7.7%; net profit attributable to shareholders reached 53.505 billion yuan, a year-on-year increase of 19%; after excluding short-term investment fluctuations and one-time major project adjustments, the group’s net operating profit attributable to shareholders was 36.523 billion yuan, a year-on-year increase of 6.1%.

In the fourth quarter alone, China Pacific Insurance reported a net profit attributable to shareholders of 7.81 billion yuan, a year-on-year increase of 17.4%, ranking among the top in the listed industry.

As of the end of 2025, the group’s embedded value was 613.365 billion yuan, an increase of 9.1% compared to the end of the previous year; the group’s net assets attributable to shareholders stood at 302.143 billion yuan, a year-on-year increase of 3.7%, maintaining steady growth despite the transition to new accounting standards.

At the performance briefing, President Zhao Yonggang stated that in 2025, the company’s operational performance improved steadily, thanks to the clear strategic guidance from the board of directors and the concentrated release of positive factors accumulated over many years. Overall, this is reflected in four aspects: first, adhering to integration into the overall situation and comprehensively enhancing service capabilities; second, insisting on value-based management and focusing on improving development quality and efficiency; third, maintaining collaborative progress to further amplify comprehensive operational advantages; and fourth, adhering to innovation-driven initiatives to accelerate the stimulation of new momentum.

Zhao Yonggang expressed that for the year 2026, the company hopes to achieve three effective breakthroughs: first, an effective breakthrough in serving the “14th Five-Year Plan”; second, an effective breakthrough in cultivating new growth momentum, further enhancing the quality and efficiency of the main business; third, an effective breakthrough in advancing the three major strategies.

When discussing how to view and layout for the new development cycle, Chairman Fu Fan stated that looking ahead to the “14th Five-Year Plan,” China’s insurance industry is at a critical juncture of both strategic opportunities and risk challenges. From a macro policy perspective, the country has prioritized the vigorous development of the “five major tasks” in finance, promoting the insurance industry to better play its role as an economic stabilizer and social stabilizer. From the perspective of market demand, industrial structure upgrades and population structure adjustments are giving rise to new risks and financial service needs, opening up vast markets for the insurance industry to explore new momentum. From the perspective of technological transformation, the accelerated evolution of artificial intelligence brings strategic opportunities to the industry.

Fu Fan also pointed out that China has entered a low-interest-rate era, and the traditional profit model relying on interest spreads urgently needs to be transformed; industry competition is shifting from incremental dividends to stock game, making high-quality development transformation increasingly urgent.

Fu Fan stated that China Pacific Insurance will adhere to the principle of seeking progress while maintaining stability and improving quality and efficiency, focusing on advancing three major measures. First, fully serve the national development framework; second, steadily promote the three major strategies; third, concentrate efforts on forging competitive advantages in the main business. “We will firmly adhere to the overall tone of ‘seeking progress while maintaining stability, improving quality and efficiency’, focus on our primary responsibilities, enhance core functions, improve core competitiveness, and comprehensively deepen high-quality development to create sustainable value returns for shareholders.”

The new business value of life insurance surged by 40.1%, and property insurance underwriting profits increased by over 80%.

Strengthening the fundamentals of the insurance main business is the primary reason for the dual growth in revenue and profit for China Pacific Insurance.

In 2025, China Pacific Insurance’s life insurance business adhered to the main line of value growth, promoting the upgrade of multi-channel models, with new business value reaching 18.609 billion yuan, a year-on-year increase of 40.1%; new business value rate was 19.8%, an increase of 3.2 percentage points year-on-year; scale premium reached 295.855 billion yuan, a year-on-year increase of 12.7%.

In terms of profit performance, China Pacific Insurance’s life insurance achieved a net profit attributable to shareholders of 42.165 billion yuan for the year, a year-on-year increase of 17.7%, and operating profit of 28.916 billion yuan, a year-on-year increase of 4.8%.

The bancassurance channel is the fastest-growing channel. Data shows that last year, the scale premium for China Pacific Insurance’s life insurance bancassurance channel saw a year-on-year growth rate of 46.4%, ranking first among all channels, with new policy regular premium scale reaching 16.956 billion yuan, a year-on-year increase of 43.2%; the bancassurance channel’s new business value was 6.7 billion yuan, a year-on-year increase of 102.7%.

Regarding the bancassurance layout, General Manager of China Pacific Insurance’s life insurance, Li Jinsong, stated that the bancassurance channel is progressing in an orderly manner according to the planned principle of “stabilizing value and optimizing structure,” with all core indicators generally meeting expectations.

He introduced that in terms of optimizing structure, the company has continuously promoted channel structure optimization, establishing comprehensive business cooperation relationships with all major state-owned banks this year, with China Pacific’s share in the six major state-owned banks increasing by 0.3 percentage points year-on-year, exploring integrated development with joint-stock banks, maintaining a leading share in joint-stock banks, and achieving a more balanced overall channel structure; on the other hand, the company will accelerate the optimization of product structure, driving the development of long-term premium products, with a more diversified product range and deeper integrated operation of product and service. Through these measures, the foundation for the continuous development of the bancassurance channel has been further solidified.

In terms of property insurance, China Pacific Insurance’s property insurance premium grew by 0.1% year-on-year, achieving insurance service revenue of 197.191 billion yuan, a year-on-year increase of 3%. Notably, the underwriting combined cost ratio was 97.5%, improving by 1.1 percentage points year-on-year, with underwriting profit reaching 4.836 billion yuan, a year-on-year increase of 81%; the company achieved a net profit attributable to shareholders of 9.864 billion yuan for the year, a year-on-year increase of 33.7%.

In the new energy vehicle insurance sector, China Pacific Insurance’s property insurance reported original insurance premium income of 25.017 billion yuan for new energy vehicle insurance last year, accounting for 22.6% of the total vehicle insurance premium.

General Manager of China Pacific Insurance’s property insurance, Chen Hui, stated that last year, the growth rate of new energy vehicle insurance exceeded the overall growth rate of vehicle insurance, benefiting from the company’s earlier strategic layout and refined management in the field of new energy vehicle insurance. The cost of new energy vehicle insurance business has significantly improved, and the household new energy vehicle business has now entered a stable profit zone. In the future, the company will further optimize costs and improve efficiency by building a full lifecycle ecological system.

Chen Hui also stated that last year the company achieved significant breakthroughs in serving new energy vehicles going abroad, providing risk protection for 22,000 exported vehicles. This year, the company will accelerate the parallel and promotion of business models in line with the trend of Chinese automotive companies going global.

In terms of non-auto insurance, Chen Hui indicated that this year, the company will focus on high-quality business layouts in emerging fields, deeply exploring business growth points that align with the needs of high-quality development of the real economy, paying special attention to emerging fields such as low-altitude economy, AI derivative industries, and technological research and development, capturing the insurance protection needs arising from the development of the technology industry, and actively exploring sectors such as health care, green “dual carbon” initiatives, commercial aviation, and circular economy to broaden the boundaries of business development.

Investment assets surpass 3 trillion yuan, responding to the call for long-term funds to enter the market.

Long-term stable investment returns are another cornerstone for China Pacific Insurance. As of the end of 2025, China Pacific Insurance managed nearly 3.9 trillion yuan in assets, a year-on-year increase of 9.8%, of which group investment assets reached 3.04 trillion yuan, a year-on-year increase of 11.2%; third-party managed assets were 851.046 billion yuan, a year-on-year increase of 5.3%.

In terms of performance, in 2025, the company achieved net investment income of 85.199 billion yuan, a year-on-year increase of 2.9%, and total investment income of 141.634 billion yuan, a year-on-year increase of 17.6%. The comprehensive investment return rate of investment assets continued to maintain a good level, providing strong support for the group’s profit realization.

Currently, the investment environment is complex both internally and externally. As a large insurance fund with assets exceeding one trillion yuan, how China Pacific Insurance views market trends and conducts asset allocation has become a focus of market attention.

China Pacific Insurance’s Vice President, Chief Investment Officer, and Financial Officer Su Gang stated that under the guidance of strategic asset allocation, the company will continue to implement a refined “dumbbell” asset allocation strategy, striving to achieve sustainable and stable investment returns.

Su Gang indicated that based on the trends in the macro economy and financial markets for a long time to come, in effectively increasing the proportion of equity investments in the public market, China Pacific Insurance not only responds to the regulatory authorities’ call for insurance funds to increase their market participation as long-term funds but also fulfills its own internal requirements for asset-liability management. The allocation ratios of major asset classes in China Pacific Insurance’s strategic asset allocation will be established more proactively and effectively based on liability characteristics, fully sharing long-term investment and growth opportunities, including in the public market and equity market.

Su Gang further stated that the core strategy of dividend value that China Pacific Insurance adheres to has very significant stability and sustainability. This strategy focuses on listed companies that have both high dividend distribution capacity and stable growth prospects, using such high-quality assets as the core of its bottom warehouse, which can not only generate cash flow in the form of dividend income to enhance net asset returns but also share capital returns brought by stable performance growth, thereby strengthening the investment portfolio’s ability to resist drawdowns. At the same time, the company will continue to build a more comprehensive satellite strategy system around its core strategy, covering key areas such as technological innovation, health care, and consumer goods.

In the next two years, the compound annual growth rate of the AI investment budget will not be less than 40%.

In 2025, China Pacific Insurance launched three major strategies: health care, internationalization, and “artificial intelligence +,” which are core approaches for China Pacific to further solidify its core competitiveness for the future.

In terms of the health care strategy, the “Taibao Home” elderly care community layout spans 13 cities and 15 parks, with over 3,000 residents; the “Yuan Shen Rehabilitation” hospital has opened in Xiamen and Jinan, covering over 12 million customers with health care services, and the health care ecosystem is becoming increasingly complete.

China Pacific Insurance’s Vice President Ma Xin stated that the health care sector is related to people’s livelihoods and must be pursued diligently over time. For the past five years, the company has continuously focused on customer needs, and it has now upgraded its health care strategy to a comprehensive health care strategy, with the core upgrade being the creation of an integrated health care ecosystem, with a series of work currently underway.

Ma Xin introduced that first, an integrated working mechanism has been established. In September last year, the group-level health care ecological organization was established, creating a three-tier organizational structure comprising the group, subsidiary headquarters, and branch offices, further clarifying the responsibility system and establishing a special honor incentive system. This provides a strong guarantee for forming a working mechanism through a normalized operational management system; second, it clarifies the integrated development goals for insurance and services, sets quantifiable development targets for the next five years, and begins to explore market-oriented compensation forms between service entities and insurance entities; third, it promotes the integrated ecological construction from comprehensive to specialized. “We will certainly deepen the comprehensive health care strategy and deliver a satisfactory answer to the aging society.”

Currently, the application of artificial intelligence is experiencing explosive growth, optimizing insurance business processes and enhancing production efficiency, becoming an important force in reshaping the insurance value chain.

China Pacific Insurance’s Vice President Yu Bin stated that in recent years, the company has continuously increased its investment in artificial intelligence, with this year’s AI investment doubling compared to last year. According to future planning targets, the compound annual growth rate of the AI investment budget in the next two years will not be less than 40%. “This is a narrow gauge; from a broad gauge perspective, it may actually be even more.”

Yu Bin stated that currently, the company has initially established an enterprise-level artificial intelligence infrastructure, introduced 50 foundational large models, and by 2025, the number of calls to these large models reached 270 million times, initially forming a framework for enterprise-level intelligent systems that combines fast and slow thinking, while also possessing real-time voice interaction capabilities and structured imaging capabilities for large models. In 2025, China Pacific Insurance launched 129 scenario applications, basically covering 13 core business scenarios, with 18,000 internal staff and 150,000 marketing personnel.

It is reported that as one of the company’s three major strategies for the future, China Pacific Insurance has constructed a “633” strategic blueprint. First, focus on six core areas, accelerating the application of scenarios to produce tangible results; second, build hard capabilities for AI through co-creation and co-construction to establish competitive barriers; in addition, build a guarantee system for planning and implementation.

“This year, the company has already clarified the goals, measures, and project list for planning implementation, covering more than 30 projects across five major categories,” Yu Bin stated. In the coming years, China Pacific Insurance will drive high-quality development powered by AI, moving towards the goal of becoming a leader in AI applications in the insurance industry.