The property insurance industry presented a mixed performance report for 2025, characterized by overall improvement but intensified divergence. Among 84 insurers, the average combined ratio surged to 129.39% (+21.18 percentage points), while the median ratio slightly decreased to 101.07% (-1.43 percentage points). This discrepancy between a soaring average and a stable median was primarily driven by an extreme value of 2077.72% from newly established Dongwu Property & Casualty Insurance.
A widespread reduction in expense ratios emerged as the dominant trend. Seventy-one insurers maintained a comprehensive expense ratio below 50%, with Sunshine Agricultural Insurance leading as the "cost control champion" at 11.22%. However, underlying pressures were evident on the claims side: five insurers saw loss ratios exceed 100%, with several deeply mired in high claims, while Nipponkoa Insurance recorded a negative loss ratio of -67.74%,刷新ing the industry database (a phenomenon often related to the large-scale release of "outstanding loss reserves" in financial accounting).
The cohort of insurers achieving underwriting profitability expanded. Ten companies saw their combined ratios fall below 100%. Huiyou Mutual recorded the most significant improvement, reducing its ratio by 34.76 percentage points, followed by Yongcheng Insurance and Samsung Property & Casualty Insurance. Nevertheless, the majority of insurers, 47 in total representing 56%, still struggled above the break-even line, with four even surpassing the critical 200% threshold.
The data reveals structural industry insights: specialized agricultural insurers occupied four spots in the top 10 for lowest expense ratios, highlighting the cost advantages of policy-driven business. While captive insurer COSCO Shipping utilized reserve releases to achieve a combined ratio of -76.22%, this also underscored volatility risks under new accounting standards. The industry's balancing act between cost reduction and claims control faces increasingly severe tests.
The median figures for both combined cost and expense ratios declined. Excluding extreme values, 63% of insurers (52 companies) experienced a year-on-year decrease in their combined ratio, with over 80% showing fluctuations within 10%, indicating an "overall optimization" trend for the sector. Specifically, the median combined ratio, median expense ratio, and the minimum loss ratio fell by 1.43, 1.70, and 76.51 percentage points respectively compared to 2024, settling at 101.07%, 35.33%, and -67.74%. The significant rise in the maximum values for combined cost and expense ratios was mainly attributable to extreme figures from Dongwu P&C.
Regarding the combined ratio specifically, the industry displayed "overall optimization amid severe divergence." Over sixty percent of insurers lowered their ratio year-on-year, yet 47 companies (57%) remained above 100%. Among these, 43 were between 100%-200%, and four exceeded 200%, namely Dongwu P&C, Qianhai Property Insurance, Taiping Technology Insurance, and Guangdong Energy Captive. Compared to 2024, the number of insurers with ratios below 100 increased from 27 to 36, while those between 100%-200% decreased from 52 to 43. Of 83 comparable insurers, 53 (64%) saw a decrease. Over 80% experienced fluctuations within 10 percentage points.
Seven insurers witnessed their combined ratios increase by over 10 percentage points, though none exceeded 100%. Qianhai Property Insurance, Taiping Technology Insurance, and Kaiben Property Insurance saw significant rises of 95.92, 76.42, and 72.17 points, reaching 232.95%, 217.77%, and 190.04% respectively. Analysis suggests these sharp increases are linked to substantial rises in both their expense and loss ratios, which far exceeded industry averages.
In the top 10 for lowest combined ratios, Railway Captive and Huiyou Mutual showed further optimization. Nipponkoa Insurance, CNPC Captive, Zurich Insurance, and Zhongyuan Agricultural Insurance experienced increases of 1.90, 15.06, 11.23, and 0.60 points, reaching 81.00%, 91.57%, 91.57%, and 93.18% respectively. The significant drop for COSCO Shipping Captive is likely related to the large release of previously over-accrued reserves in 2025, amplified by its small premium base and new accounting standards, resulting in a drastic expense ratio of -251.34%. Railway Captive, Nipponkoa Insurance, and Anhua Agricultural Insurance demonstrated excellent ratios, all below 90% at 77.57%, 81.00%, and 86.39% respectively.
Ten insurers successfully reduced their combined ratios below 100% into profitable underwriting territory, though most remained between 90%-100%. Huiyou Mutual, Yongcheng Insurance, Samsung P&C, Shenneng Property Insurance, and Zhejiang Commercial Property Insurance improved by over 5 percentage points. Only Sunshine Property & Casualty Insurance saw its ratio "unfortunately" rise above 100%, while newcomer Dongwu P&C reported 2077.72%.
The expense ratio landscape in 2025 was marked by "one leader and many strong performers." COSCO Shipping Captive was the sole negative value, followed by BYD Property Insurance and Sunshine Agricultural Insurance. Among the top 10 for lowest expense ratios, four specialized agricultural insurers—Sunshine Agricultural, Zhongyuan Agricultural, Guoyuan Agricultural, and Anhua Agricultural—held spots, all with ratios under 17%, confirming the low-cost advantage of policy business. Twenty-six out of 83 comparable insurers saw year-on-year increases, with over 80% of these increases contained within 10%. Seventy companies had ratios below 50%, comprising 83% of the total. Five companies, including Dongwu P&C and Nipponkoa Insurance, had ratios exceeding 100%. Fifty-seven insurers (69%) saw decreases. Over 80% experienced changes within 10 percentage points.
Five insurers recorded significant expense ratio increases. COSCO Shipping Captive, Nipponkoa Insurance, and Qianhai Property Insurance saw rises exceeding 50 percentage points. Among the top 10 for lowest expense ratios, only Rongtong Property Insurance exceeded 20%. Excluding special cases like COSCO Shipping and BYD P&C, Sunshine Agricultural Insurance had the lowest ratio at 11.22%.
Regarding loss ratios, five insurers exceeded 100%: Dongwu P&C, COSCO Shipping Captive, Taiping Technology Insurance, Xinan Insurance, and Starr Insurance. Seventy-two insurers (86%) fell within the 50%-100% range. Forty-one out of 83 comparable insurers saw year-on-year increases, while 42 decreased. Sixty-nine companies (83%) experienced changes within 10 percentage points. Fourteen insurers saw changes exceeding 10%, with nine showing increases over 10%. Sunshine Credit Insurance recorded the largest jump, increasing by 73.56 points. Insurers like Taiping Technology and Starr Insurance saw increases exceeding 20%.
Among the top 10 for lowest loss ratios, seven companies had ratios below 50%. Nipponkoa Insurance led with -67.74%. Zhonghui Mutual, Nipponkoa Insurance, Huatai Insurance, and AIG Insurance saw their ratios increase compared to 2024. Despite the overall positive trend, divergence is intensifying, with nearly half of all insurers still needing to find the optimal balance between cost control, expense management, and maintaining claims quality.
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