The First Listed Insurance Company Annual Report is Here! Stock Allocation Increases, Bond Proportion Decreases

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 over 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 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.

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

In terms of asset allocation, the 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, Sunshine Insurance’s holdings of equity financial assets totaled 136.43 billion yuan, accounting for 21.4% of total investment assets, up 1.4 percentage points year over year. Among these, stocks and equity funds combined amounted to 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 a research-driven, active management approach for equity assets, actively exploring investment opportunities, and focusing on high-dividend-yield value stocks and high-quality growth stocks with sustainable growth.

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

By the end of 2025, Sunshine Asset Management’s entrusted third-party assets totaled 225.94 billion yuan.

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

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

In life insurance, in 2025, Sunshine Life’s premium income surpassed 100 billion yuan, reaching 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 over half from floating-yield 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-yield products accounted for 32.2% of new single premiums.

In property and casualty insurance, Sunshine Property & Casualty achieved original insurance premiums 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.

In terms of underwriting profitability, the combined cost ratio was 102.1%, worsening by 2.4 percentage points, with underwriting losses of 1.03 billion yuan. This was mainly due to guarantee insurance, which, excluding guarantee insurance, had a combined cost ratio of 98.9%, down 1 percentage point, and underwriting profit of 490 million yuan.

The 2025 annual report shows that the guarantee insurance combined cost ratio was 129.0%, with underwriting losses of 1.51 billion yuan. The company explained that “mainly due to market environment changes and macro policy adjustments, it was decided to stop new guarantee insurance business for financing from 2026, and reserves were prudently set aside.”

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; new single premium guarantee costs and existing policy costs for Sunshine Life further declined.

Type: Wang Yunpeng

Proofreading: Gao Yuan