A-shares listed insurance companies annual reports conclude: net profit exceeds 420 billion, equity increases by over 1 trillion. This year, focus on increasing holdings in high-dividend stocks and new productive forces.

(The image source: Visual China)

Blue Whale News, April 3 (Reporter: Shi Yu) The annual reports of China’s five largest listed insurance companies have been finalized. In 2025, their combined net profit exceeded RMB 420 billion, up more than 20% year over year. Equity investments contributed the key “decisive factor”—the balance of stocks alone increased by more than RMB 1 trillion compared with the end of the previous year.

However, as market volatility intensifies in 2026, how will insurance capital continue to navigate cycles? Reporters noted that, judging from earnings calls held recently, “high dividend yield” and “new quality productive forces” have become clear preferences.

Listed insurers’ full-year profit increases by over 20%, with equity investment adding momentum to high profit growth

Last year, the five largest listed insurance companies in A-shares combined to achieve attributable net profit of RMB 425.3 billion, up 22.4% year over year.

Among them, China Life’s attributable net profit in 2025 rose sharply by 44.1% year over year to RMB 154.078 billion; Ping An’s attributable net profit was RMB 134.778 billion, up 6.5%; China Taiping and PICC P&C and New China Life respectively recorded attributable net profit of RMB 53.505 billion, RMB 46.646 billion, and RMB 36.284 billion, with year-over-year growth of 19%, 8.8%, and 38.3%, respectively.

(Graphic design: Blue Whale News)

The favorable profit performance stems from a resonance on both sides of assets and liabilities. Based on managing liability costs, optimization on the asset side—together with a favorable equity market—more directly reflects in the profit figures.

New China Life’s total investment return rate ranks first at 6.6%; China Life in 2025 achieved its best investment performance in recent years, with total investment returns of RMB 387.694 billion, up 25.8% year over year; its total investment return rate was 6.09%, up 59 basis points year over year. Ping An’s 2025 comprehensive investment return rate was 6.3%, up 0.5 percentage points year over year. China Taiping’s total investment return rate was 5.7%; total investment returns were RMB 141.634 billion, up 17.6% year over year. PICC P&C’s total investment return in 2025 grew 12.4% year over year, and its total investment return rate reached 5.7%.

At recent earnings meetings held by listed insurers, management explained in detail the main reasons behind the improving investment return performance. The core factors are that, benefiting from a favorable equity-market outlook and the increased efforts of their own equity allocation, “equity investment is the decisive hand to enhance returns.”

Reporters’ statistics show that in 2025, the overall proportion of stocks and investment funds held by the five listed A-share insurers increased. The combined stock balance grew by more than RMB 1 trillion compared with end-2024. Ping An saw the highest increase in its stock balance, rising from RMB 43.74 billion at the end of the previous year to RMB 95.81 billion, up 119% year over year. Its share in the investment portfolio increased from 7.6% at the end of the previous year to 14.8%.

At the end of 2025, China Life’s investment assets reached RMB 742.3705 billion, up 12.3% from the end of 2024. In its annual report, it said that in 2025 it “seized market opportunities and firmly increased equity investment efforts. The scale of equity investment in the public market exceeded RMB 120 billion, increasing by more than RMB 45 billion compared with the beginning of the year.” Among this, the stock balance reached RMB 85.8342 billion, up 71% year over year, and the proportion also rose from 7.58% to 11.25%.

China Taiping’s stocks and equity-type funds accounted for 13.4% of investment assets, up 2.2 percentage points from the end of the prior year. The stock balance reached RMB 33.7654 billion, up 32.4% year over year, and its proportion rose from 9.3% to 11.1%.

At the end of 2025, New China Life’s investment assets reached RMB 184.0 billion, up 13% year over year. Its stock amount reached RMB 21.6452 billion, up 19.7% year over year. The combined ratio of stocks and funds to investment assets reached 21.2%.

PICC P&C’s investment assets in 2025 surpassed RMB 190.0 billion, up 15.8% from the beginning of the year. Of that, the value of held stocks was RMB 16.6235 billion, up 176% year over year. The proportion of stocks to investment assets rose from 3.7% at the end of the previous year to 8.7%, an increase of 5 percentage points.

(Graphic design: Blue Whale News)

Where did the funds go? China Life stated, “In terms of equity investment, we seized market opportunities and firmly increased equity investment intensity, actively deployed areas related to new quality productive forces, and steadily carried out high dividend yield stock allocation.”

Ping An also mentioned that in terms of equity investment, it increased a balanced allocation of both dividend-value-type and technology growth-type equity exposures, aiming for steady long-term investment returns that outperform the market.

New Year strategy for patient capital: actively seize market opportunities, favor high dividend yield and new quality productive forces, etc.

“ This year, we see a lot of uncertainty, and the whole capital market will be quite volatile, but we believe that the overall capital market will be generally favorable throughout the year.” At a recent results briefing, Guo Xiaotao, co-CEO of Ping An, made this judgment about the market tone.

“Like water that does not compete for who goes first—what it competes for is an endless flow. Long-term capital and patient capital need to traverse the cycle through calm, deep waters and long-term persistence.” Liu Hui, vice president and chief investment officer of China Life, summarized the “stance” of insurers’ funds in this way.

In 2026, under the new market environment, how will listed insurers plan and lay out investments?

First, from the perspective of investment strategy, Qin Hongbo, vice president of New China Life, said the company will adhere to three major principles: one is to adhere to the asset-liability matching principle—based on the characteristics of the liability side, reasonably arrange the duration and structure of assets to ensure the investment side can effectively cover liability costs. Second is to adhere to the concept of diversified and diversified allocation. Construct reasonable allocation ratios across fixed income, equity, and alternative investments, continuously optimize the structure, and enhance the portfolio’s ability to withstand risks and its return elasticity. Third is to adhere to an absolute return orientation. In market volatility, pay attention to a margin of safety, actively seize structural opportunities, and strive to create long-term, steady investment returns for both the company and its clients.

Cai Zhiyi, vice president of PICC P&C, said that in 2026, the PICC Group will focus on four principles: “stability, growth, diversification, and innovation,” and further optimize asset allocation. “In 2026, we will further improve differentiated allocation and refined management in sub-accounts based on the differing liability-fund characteristics of property insurance and life insurance. The property insurance account will focus on maintaining the asset duration basically stable, while the life insurance account will manage the duration gap and continue to focus on long-duration government bond allocation.”

Focusing on specific allocation directions, listed insurers mainly discussed the logic behind equity investment allocation.

PICC P&C defines equity investment as the decisive hand for stabilizing and improving investment performance. It said it will continue to pay attention to the allocation of OCI high dividend yield stocks, while also focusing on the growth opportunities embedded in the “14th Five-Year Plan” and strengthening research on key industries and key sectors to reasonably plan TPL stock allocation.

“In a low interest rate environment, within our risk tolerance, the company will increase the allocation of equity assets in a timely manner, while also actively seizing structural opportunities in the market.” Su Gang, vice president, chief investment officer, and finance director of China Taiping, emphasized that China Taiping’s core dividend-value strategy is to focus simultaneously on listed companies with higher dividend distribution capability and stable growth prospects, using such high-quality assets as the core base holding. At the same time, the company will build a more comprehensive satellite strategy system covering multiple key areas such as technological innovation, large health, and big consumption.

In terms of specific investment targets, Liu Hui said that China Life will focus on two categories of assets: first, technology stock investments representing the direction of China’s new quality productive forces—staying close to the main line of technological iteration and domestic substitution, and searching for investment targets with explosive growth opportunities along the entire AI industry chain; second, allocation of high-quality, high dividend yield stocks, building a diversified dividend portfolio to address the environment of declining interest rates.

Ping An’s response approach is “seeking certainty in uncertainty.” Guo Xiaotao mentioned that for long-cycle patient capital, the most important thing about investing is to be fully aligned with the direction of the country’s economic development. “New quality productive forces are a factor of certainty; the vigorous development of infrastructure is a factor of certainty; medical care, health, and pension are factors of certainty in the development of the entire national economy; a strong financial sector is a factor of certainty; a healthy China is a factor of certainty. These are all important directions for long-term investing and asset allocation.”

Qin Hongbo said that regarding the equity market, it will firmly look favorably at the medium-to-long term prospects for China’s capital market development. It will focus on three investment main lines: first, focus on industries where business conditions are improving and performance continues to be optimized; second, focus on industries that align with national strategic directions, especially areas related to new quality productive forces; third, continue to promote a high dividend yield investment strategy in a low interest rate environment.