[Huaxi Non-Bank] Ping An of China 2025 Annual Report Review: OPAT Achieves Double-Digit Growth, Strong Performance on Both Assets and Liabilities

Event Overview

China Ping An released its 2025 annual report. In 2025, the Group achieved attributable operating profit (OPAT) of RMB 134.415 billion, up 10.3% year over year (YoY) (Q4 single-quarter YoY +35.3%); attributable net profit of RMB 134.778 billion, up 6.5% YoY (Q4 single-quarter YoY -74.1%). In 2025, the company’s new business value (NBV) for life and health insurance reached RMB 36.897 billion, up 29.3% YoY; the combined ratio (COR) for property and casualty insurance was 96.8%, improving by 1.5 percentage points YoY. The company plans to distribute cash dividends of RMB 1.75 per share for the end of 2025; together with the interim cash dividends already distributed, the total cash dividends for 2025 will be RMB 2.70 per share (up 5.9% YoY), totaling RMB 48.891 billion, accounting for 36.4% of attributable operating profit; the dividend yield corresponding to the A/H closing prices as of March 26 is 4.8%/5.2%, respectively.

By attribution, the growth in the Group’s attributable operating profit in 2025 is mainly driven by strong performance in life and health insurance, property and casualty insurance, asset management and financial empowerment businesses, respectively +2.9%, +13.2%, narrowing losses by 68.2%, and achieving a turnaround to profit; this was partly offset by the decline in banking business of -4.2% YoY. The difference between 2025 Q4 operating profit and attributable net profit is mainly due to: 1) due to volatility in the capital markets in the fourth quarter, short-term investment volatility decreased by RMB 9.48 billion compared with the same period last year; 2) the gains from one-off major projects and other items in 2025 Q4 (including one-off gains and losses brought by, among others, the sale of Autohome, Ping An Good Doctor being included in the consolidated financial statements, and the revaluation effects on the conversion of US dollar and Hong Kong dollar convertible bonds into equity value) decreased by RMB 0.832 billion compared with the same period last year.

Analysis and judgment:

►   Life insurance: attributable operating profit +2.9% YoY, NBV +29.3% YoY.

In 2025, the Group’s life and health insurance business achieved attributable operating profit of RMB 99.752 billion, up 2.9% YoY, mainly due to investment service performance (i.e., the portion of operating investment returns exceeding the required return on reserves) up 55.5% YoY. The Group’s life and health insurance NBV in 2025 reached RMB 36.897 billion, up 29.3% YoY. The growth in NBV is mainly attributable to a significant increase in the value rate. In 2025, NBVM (same as below, based on first-year premiums) rose 4.9pp YoY to 23.4%. The first-year premiums used to calculate NBV increased 2.5% YoY. By channel, in 2025 the Group’s agency channel NBV increased 10.4% YoY (of which NBVM increased 6.4pp YoY to 30.8%, and the first-year premiums used to calculate NBV decreased 12.5% YoY). As of end-2025, the Group’s number of individual life insurance sales agents was 351,000 (down 3.3% YoY), and new business value per capita increased 17.2% YoY. In 2025, the Group’s bancassurance channel NBV surged 138.0% YoY (of which NBVM increased 4.4pp YoY to 24.5%, and the first-year premiums used to calculate NBV increased 95.1% YoY), contributing 25.5% to Ping An Life’s new business value, up 11.6pp YoY.

►   Property and casualty insurance: attributable operating profit +13.2% YoY, COR improved by 1.5pp.

In 2025, the Group’s property and casualty insurance business achieved attributable operating profit of RMB 16.923 billion, up 13.2% YoY. Ping An Property & Casualty maintained stable growth, achieving insurance service income of RMB 338.912 billion, up 3.3% YoY; of this, auto insurance increased 3.8% YoY to RMB 228.495 billion, and non-auto insurance increased 2.1% YoY to RMB 110.417 billion. Ping An Property & Casualty’s overall combined ratio was 96.8%, improving by 1.5 percentage points YoY (of which expense ratio/loss ratio improved by 0.9/0.6 percentage points YoY to 26.4%/70.4%, respectively). This was mainly due to expense optimization in auto insurance and a turnaround to profitability in guarantee insurance. Among them, the auto insurance business benefited from the deepening of the “Reporting and Billing Integration” reform and refined expense management; its combined ratio improved by 2.3 percentage points YoY to 95.8%. For the non-auto insurance business, guarantee insurance achieved a turnaround to profitability, while the combined ratio for accident and health insurance increased by 3.6 percentage points YoY to 99.4%.

►   Investments: total investment return +13.5% YoY, and equity allocation increased.

As of end-2025, the company’s insurance funds investment portfolio exceeded RMB 6.49 trillion, up 13.2% from the beginning of the year. Of this, the proportion of funds allocated to bonds decreased 6.7pp YoY to 55.0%; the proportion allocated to stocks increased 7.2pp YoY to 14.8% (among stocks, FVTPL/FVOCI accounted for 43%/57%, respectively); the proportion of real estate investment balances decreased 0.4pp YoY to 3.1% (among which rental-property type assets accounted for 86.8% of the real estate portfolio, up 5.1pp YoY). In 2025, the insurance funds investment portfolio’s comprehensive investment return increased 21.7% YoY; the corresponding comprehensive investment return rate was 6.3%, up 0.5pp YoY. This was mainly driven by the balanced asset allocation strategy and a forward-looking increase in the allocation proportion to equity assets. Net investment income increased 7.3% YoY, with the corresponding net investment return rate of 3.7%, down 0.1pp YoY, mainly due to the effects of maturing existing assets and the decline in yields from maturing newly added fixed-income assets. Total investment return increased 13.5% YoY. Over the past 10 years, the company’s insurance funds achieved an average net investment return rate of 4.8% and an average comprehensive investment return rate of 4.9%, exceeding the long-term investment return assumptions for embedded value.

Investment Recommendation

The company’s overall operations are stable. The development trend of its core businesses with high quality remains intact. Life insurance NBV continues to grow strongly, property and casualty insurance performance is generally stable, and the high proportion of stocks with high OCI in the investment segment further reinforces the performance foundation. Combining the company’s 2025 performance, we maintain our prior forecasts for 2026-2027 insurance service income of RMB 607.5/6,351 billion, and forecast 2028新增 RMB 653.6 billion. We maintain our prior forecasts for 2026-2027 attributable net profit of RMB 147.1/1,606 billion, and add a 2028 forecast of RMB 169.7 billion. Considering the decrease in total shares outstanding, we adjust our 2026-2027 EPS forecasts to RMB 8.12/8.87 (previously RMB 8.08/8.82), and add a 2028 forecast of RMB 9.37. With the closing price on March 27, 2026 of RMB 56.95, the corresponding PEVs are RMB 0.62/0.57/0.53, respectively. We maintain a “Buy” rating.

Risk Warning

Unstable macroeconomic environment; large fluctuations in the capital markets; risk of sustained downward trend in interest rates.

Financial Statements and Key Financial Ratios

Note: The report excerpts included in this document are taken from research reports that have already been publicly released by Huaxi Securities Research Institute. For the specific report content and related risk warnings, please refer to the full version of the report.

Analyst: Luo Huizhou

Analyst professional qualification number: S1120520070004

Securities Research Report: 《[Huaxi Non-banks] China Ping An 2025 Annual Report Review: OPAT delivers double-digit growth, with solid performance on both assets and liabilities》

Report release date: March 27, 2026

Analyst Commitment

The author holds the qualifications for providing securities investment consulting services granted by the China Securities Industry Association or equivalent professional competence. The data used in this report all come from compliant channels. The analysis logic is based on the author’s professional understanding. Through reasonable judgments and conclusions, the author aims to be objective and fair. The conclusions are not authorized or influenced by any third party. This statement is hereby made.

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