PICC Group Q1 2026: Net Profit Falls 31.4% on Softer Investment Income; P&C Unit Retains Underwriting Strength

PICC Group (01339) reported January–March 2026 operating income of RMB 148.54 billion, down 5.1% year-on-year, as weaker capital-market performance curbed investment returns. Profit before tax slid 42.7% to RMB 11.80 billion, while net profit attributable to shareholders decreased 31.4% to RMB 8.81 billion. Basic earnings per share fell to RMB 0.20 from RMB 0.29.

Net cash generated from operating activities contracted 58.0% to RMB 15.35 billion, reflecting quarterly business-flow fluctuations. Total assets were largely stable at RMB 2.02 trillion (-0.2% versus end-2025), whereas equity attributable to shareholders rose 3.4% to RMB 319.36 billion, lifting net asset value per share to RMB 7.20. The gearing ratio improved by 0.8 percentage point to 78.5%.

Insurance revenue increased 2.0% to RMB 138.88 billion, supported chiefly by the property-and-casualty (P&C) subsidiary:

1. PICC P&C generated insurance revenue of RMB 123.02 billion (+1.9%) and underwriting profit of RMB 7.15 billion (+7.5%), with the combined ratio improving to 94.2% (-0.3 ppt). Motor premiums were stable at RMB 71.69 billion, while accident & health premiums climbed 6.5% to RMB 64.48 billion.

2. PICC Life recorded insurance revenue of RMB 6.69 billion and net profit of RMB 1.96 billion. Total premiums fell 15.9% to RMB 44.58 billion, but first-year regular premiums surged 84.5% to RMB 11.72 billion, driving a 21.0% rise in new business value.

3. PICC Health delivered insurance revenue of RMB 8.16 billion (+9.1%) and net profit of RMB 1.96 billion. Total premiums grew 18.7% to RMB 33.31 billion, led by a 31.8% expansion in first-year long-term health business.

Group investment assets stood at RMB 1.90 trillion. Total investment income reached RMB 8.93 billion, translating to a non-annualised investment yield of 0.5%. Management cited capital-market volatility as the principal drag on earnings.

Shareholder structure remained stable: the Ministry of Finance held 60.84% of shares, HKSCC Nominees 19.69%, and the National Council for Social Security Fund 12.68% as of 31 March 2026.

PICC Group stated it will continue to emphasise asset-liability matching, strengthen long-term and value-oriented investment, and advance construction of a world-class insurance-financial group.