【Huaxi Non-Bank】China Pacific Insurance 2025 Annual Report Review: OPAT Steady Growth, Property and Life Performance Improving

Event Overview

China Taiping Insurance Group released its 2025 annual report. In 2025, the Group achieved operating profit attributable to shareholders of RMB 36.523 billion, up 6.1% year over year; among which, Q4’s single-quarter figure was up 5.5% year over year. Net profit attributable to shareholders was RMB 53.505 billion, up 19.0% year over year; among which, Q4’s single-quarter figure was down 56.2% year over year. This was mainly due to Q4 capital market volatility, which led to significant fluctuations in investment net gains. Net assets attributable to shareholders were RMB 302.143 billion, up 3.7% from the beginning of the year. The Group’s embedded value (EV) was RMB 613.365 billion, up 9.1% from the beginning of the year. Taiping Life’s NBV was RMB 18.609 billion, up 40.1% year over year. Taiping P&C’s combined cost ratio was 97.5%, improving by 1.1 percentage point year over year. The Company plans to distribute a cash dividend for 2025 of RMB 1.15 per share (inclusive of tax), totaling RMB 11.063 billion, accounting for 20.7%/30.3% of net profit attributable to shareholders/operating profit attributable to shareholders. As of the closing prices of A/H on March 27, the dividend yield was 3.1%/4.06%, respectively.

Analysis and Views:

► Life Insurance: The NBV contribution from the bancassurance channel increased significantly, and the share of dividend-paying insurance continued to rise.

In 2025, Taiping Life’s operating profit from insurance business was RMB 28.916 billion, up 4.8% year over year. In 2025, Taiping Life’s NBV reached RMB 18.609 billion, up 40.1% year over year. Of this, the annualized premium for the first year of new business was RMB 94.080 billion, up 17.6% year over year; NBVM (annualized premium for the first year, same as below) was 19.8%, up 3.2 percentage points year over year. By channel, Taiping Life’s agency channel NBV increased by 11.7% year over year to RMB 10.78 billion (of which, the annualized premium for the first year of new business was RMB 35.284 billion, flat year over year; NBVM increased by 3.2 percentage points year over year to 30.6%). The number of monthly average insurance marketing agents in 2025 was 181,000, down 1.6% year over year, with the team size basically stable. Taiping Life’s bancassurance channel NBV increased by 102.7% year over year to RMB 6.743 billion (of which, the annualized premium for the first year of new business increased by 35.4% year over year to RMB 39.36 billion, and NBVM increased by 5.7 percentage points year over year to 17.1%). The contribution share of new business value for Taiping Life increased by 11.2 percentage points year over year to 36.2%. In 2025, premiums for new policies of dividend-paying insurance grew significantly; the share of dividend-paying insurance in premiums for new policies of new business increased to 50.0%. Among them, the share of dividend-paying insurance in premiums for new policies through the agency channel reached 61.4% (the first three quarters of 2025 were 58.6%).

► P&C Insurance: Underwriting profit increased by 81% year over year, and the COR improved.

In 2025, Taiping P&C achieved gross premium income from original insurance of RMB 201.499 billion, up 0.1% year over year; underwriting profit was RMB 4.836 billion, up 81.0% year over year. The corresponding underwriting combined cost ratio was 97.5%, improving by 1.1 percentage points year over year. Of this, the underwriting combined claims ratio was 70.4%, improving by 0.4 percentage points; the underwriting combined expense ratio was 27.1%, improving by 0.7 percentage points. By line of business: for auto insurance, gross premium income from original insurance was RMB 110.511 billion, up 3.0% year over year. Of this, gross premium income from original new energy vehicle insurance was RMB 25.017 billion, accounting for 22.6% of auto insurance premiums. The auto insurance underwriting combined cost ratio was 95.6%, improving by 2.6 percentage points year over year, and the level of underwriting profit reached the best in recent years. For non-auto insurance: gross premium income from original insurance was RMB 90.988 billion, down 3.1% year over year. Of this, gross premium income from personal credit guarantee insurance was -RMB 1.691 billion; compared with the prior year, the scale was reduced by RMB 5.521 billion, and the risk exposure narrowed significantly. After excluding the impact of personal credit guarantee insurance, the non-auto insurance underwriting combined cost ratio was 97.0%, improving by 2.1 percentage points year over year.

► Investments: Investment performance remained steady, and equity allocation increased steadily.

As of the end of 2025, the Group’s investment assets were RMB 3.04 trillion, up 11.2% from the beginning of the year. Within investment assets, the bond investment allocation was 61.0%, up 0.9 percentage point from the beginning of the year; stock investment allocation was 11.1%, up 1.8 percentage points; and equity fund allocation was 2.3%, up 0.4 percentage point. In stock investments, the FVOCI allocation was 37%, up 7.2 percentage points from the beginning of the year; the FVTPL allocation was 63%. In 2025, the Company achieved net investment income of RMB 85.199 billion, up 2.9% year over year, mainly due to growth in interest income. Total investment income was RMB 141.634 billion, up 17.6% year over year, mainly due to a significant improvement in gains/losses from securities trading. Net investment yield was 3.4% in 2025, down 0.4 percentage point year over year. Total investment yield/comprehensive investment yield were 5.7%/6.1%, both up 0.1 percentage point year over year.

Investment Recommendation

We continue to look favorably on the steady improvement in the Company’s liability-side operating quality. Based on the Company’s 2025 performance, we adjust our previous profitability forecasts for 2026–2027 and newly add 2028. We expect insurance service revenue for 2026–2028 to be RMB 309/3,309/3,540 billion (previous forecasts were RMB 3,015/3,172/- billion). We expect net profit attributable to shareholders for 2026–2028 to be RMB 597/620/644 billion (previous forecasts were RMB 522/535/- billion). We expect EPS for 2026–2028 to be RMB 6.21/6.45/6.69 (previous forecasts were RMB 5.43/5.57/-). The closing price of RMB 37.12 on March 27 corresponds to PEVs of 0.54/0.51/0.47 times, respectively, and we maintain a “Buy” rating.

Risk Warning

Risk of major fluctuations in the macroeconomy; risk of volatility in the equity market; risk of a significant decline in interest rates.

Financial Statements and Key Financial Ratios

Note: Excerpts in the text are taken from research reports published by the Huaxi Securities Research Institute. For the specific report content, related risk warnings, and so on, please refer to the full version of the report.

Analyst: Luo Huizhou

Analyst practitioner number: S1120520070004

Securities Research Report: 《【Huaxi Non-Banks】China Taiping Insurance 2025 Annual Report Review: OPAT delivers steady growth, and both life and P&C performance are positive》

Publication date: March 29, 2026

Analyst Undertaking

The author holds the securities investment advisory qualification granted by the China Securities Industry Association, or equivalent professional competence. The data used in this report all come from compliant channels. The analytical logic is based on the author’s professional understanding, and conclusions are drawn through reasonable judgment. The author strives to be objective and fair; the conclusions are not influenced or instructed by any third party, and this is hereby declared.

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