SUNSHINE INS (06963) gained nearly 3% in late trading, closing up 2.71% at HK$3.79 with a turnover of HK$749.991 million. The company recently disclosed solvency reports and unaudited financial data for its subsidiaries Sunshine Life Insurance and Sunshine Property & Casualty Insurance for the first nine months of 2025.
The subsidiaries reported combined investment income (including interest income, investment gains, and fair value changes) of RMB20.76 billion, up 26.8% year-on-year. Analysts noted that as of H1 2025, SUNSHINE INS allocated 29.1% of its equity assets to FVTPL (Fair Value Through Profit or Loss) and 70.9% to FVOCI (Fair Value Through Other Comprehensive Income), with the latter proportion significantly higher than industry peers.
The brokerage highlighted that while Q3 saw substantial market gains, SUNSHINE INS classified most equities under FVOCI, where fair value changes flow to OCI rather than net profit. This accounting treatment meant only dividends were recognized in current investment income, causing net profit to underreflect the full impact of equity market appreciation.
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