The first 2025 performance report from a listed insurer has been released. On the 16th, SUNSHINE INS (06963.HK) disclosed its 2025 annual report, showing total premium income of 1,507.2 billion yuan, a year-on-year increase of 17.4%. Insurance service revenue reached 650.7 billion yuan, up 1.7% year-on-year. Net profit attributable to shareholders of the parent company was 6.31 billion yuan, an increase of 15.7% compared to the previous year. Earnings per share were 0.55 yuan. The Group proposed a final cash dividend distribution for 2025 of 0.19 yuan per share (tax inclusive), totaling 2.185 billion yuan. As of the end of 2025, SUNSHINE INS Group's total assets amounted to 6,733.4 billion yuan, representing growth of 15.7% year-on-year. Within its investment assets exceeding 6,400 billion yuan, the proportion allocated to bond investments decreased, while the allocation to stocks and equity-focused funds increased.
Rising interest rates led to a decline in the valuation of existing long-term bonds, while the proportion of equity assets increased. The investment operations of insurance companies are closely watched by the market. The annual report indicated that SUNSHINE INS Group's total investment assets reached 6,402.0 billion yuan by the end of 2025, a 16.7% increase compared to the previous year.
Regarding asset allocation, SUNSHINE INS reduced its allocation to fixed-income assets and increased its allocation to equity assets. Within fixed income, the proportion of bond investments declined noticeably. As of December 31, 2025, SUNSHINE INS's bond investments constituted 52.2% of its total investment assets, down 5.5 percentage points from the end of the prior year, primarily due to valuation declines in existing long-term bonds caused by rising interest rates. Government bonds accounted for 69.3% of the bond portfolio, up 1.3 percentage points from the end of the previous year.
As of December 31, 2025, SUNSHINE INS's investment in equity-type financial assets stood at 1,364.3 billion yuan, representing 21.4% of total investment assets, an increase of 1.4 percentage points year-on-year. Within this category, the combined amount allocated to stocks and equity-focused funds was approximately 950 billion yuan, accounting for 14.9% of total investment assets, an increase of 1.6 percentage points from the end of the previous year. SUNSHINE INS stated that it adheres to a research-driven, actively managed approach for equity assets, actively seeks investment opportunities, and emphasizes investments in value stocks with high cash dividend yields and high-quality growth stocks with sustainable growth potential.
In terms of investment performance, SUNSHINE INS achieved favorable returns. In 2025, the company realized total investment income of 25.23 billion yuan, an increase of 27.1% year-on-year. Comprehensive investment income reached 32.44 billion yuan, up 8.9% year-on-year. Looking at investment yields, the Group's net investment yield for 2025 was 3.7%, down 0.5 percentage points year-on-year. The total investment yield was 4.8%, an improvement of 0.5 percentage points year-on-year. The comprehensive investment yield was 6.1%, a decrease of 0.4 percentage points compared to the previous year. By the end of 2025, the scale of third-party assets under management by SUNSHINE INS Asset Management was 2,259.4 billion yuan.
In the insurance business segment, SUNSHINE INS conducts life insurance and property & casualty insurance operations through its subsidiaries Sunshine Life and Sunshine P&C, respectively. In life insurance, Sunshine Life's premium scale surpassed the one-trillion-yuan mark in 2025, achieving total premium income of 1,026.1 billion yuan, a year-on-year increase of 27.5%. New business value reached 7.64 billion yuan, surging 48.2% compared to the previous year. Among the main channels for the life insurer, the individual agency channel generated total premium income of 259.8 billion yuan, up 13.6% year-on-year. New single premiums amounted to 60.5 billion yuan, with variable-yield products and protection-oriented products comprising over half of the mix. The bancassurance channel achieved total premium income of 674.6 billion yuan, an increase of 34.8% year-on-year, within which new single premiums were 340.9 billion yuan, surging 69.0% year-on-year. Variable-yield products accounted for 32.2% of the new single periodic payment premiums within bancassurance.
In property and casualty insurance, Sunshine P&C achieved original premium income of 478.9 billion yuan in 2025, a slight increase of 0.1% year-on-year. Non-auto insurance premiums accounted for 46.1% of the total, up 1.9 percentage points year-on-year. Regarding underwriting profitability, Sunshine P&C's comprehensive cost ratio for 2025 was 102.1%, deteriorating by 2.4 percentage points compared to the previous year, resulting in an underwriting loss of 1.03 billion yuan. This was primarily impacted by the surety bond insurance business. Excluding surety bond insurance, the comprehensive cost ratio was 98.9%, down 1.0 percentage point year-on-year, leading to an underwriting profit of 490 million yuan. The 2025 annual report showed that Sunshine P&C's comprehensive cost ratio for surety bond insurance was 129.0%, resulting in an underwriting loss of 1.51 billion yuan. The company explained the loss, stating it was "mainly due to the company's decision, in response to changes in the market environment and macro-policy adjustments, to cease writing new financing-related surety bond business starting in 2026, and the prudent provision of reserves."
SUNSHINE INS also disclosed cost optimization efforts in its annual report. In 2025, to hedge against operational risks associated with declining interest rates, the company implemented management efficiency measures focused on fixed costs, variable expenses, and liability cost management. The company overall reduced fixed costs by 9.8%. The variable expense ratios for Sunshine P&C and Sunshine Life decreased by 1.5 and 8.4 percentage points, respectively. The combined reduction in fixed costs and variable expenses for the full year exceeded 2 billion yuan. The guaranteed costs for new single periodic payment policies and the costs associated with in-force policies at Sunshine Life further declined.
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