CPIC reported a 20.3% year-on-year decline in net profit for the first three quarters, with a 68.4% drop in the third quarter alone, which the company attributed mainly to volatility in the capital markets.
According to the company's third-quarter financial report, China Pacific Insurance (Group) Co., Ltd. (ASX: 601601) recorded insurance service revenue of 218.851 billion yuan in the first three quarters, up 0.9% year on year. Net profit came in at 336.403 billion yuan, down 20.3% year on year; in the third quarter alone, net profit was 5.628 billion yuan, down 68.4% year on year. However, operating profit for the first three quarters reached 330.081 billion yuan, up 5.6% year on year. The company attributed the rise in operating profit alongside the fall in net profit mainly to fluctuations in the capital markets. In the third quarter, the CSI 300 Index fell 12.49%, while the STAR 50 dropped 30.7%.
For insurers that have been steadily increasing their positions in the capital markets this year, this came as a heavy blow. Ping An Insurance (Group) Company of China, Ltd. (ASX: 601318), which has also released its results, posted similarly weak net profit, down 27.3% in the first three quarters and plunging 93.7% in the third quarter alone. Huatai Securities Co., Ltd. (ASX: 601688) previously published a research report on the insurance industry, offering a clear judgment: listed insurers' profitability may come under temporary pressure in the third quarter, with total pre-tax losses for listed insurers potentially reaching 109.6 billion yuan under an optimistic scenario, and that figure possibly widening to 200.2 billion yuan under a conservative scenario. At present, however, at least Ping An Insurance (Group) Company of China, Ltd. (ASX: 601318) and China Pacific Insurance (Group) Co., Ltd. (ASX: 601601) still managed to stay profitable on a single-quarter basis in the third quarter.
CPIC Life's New Business Value Falls 6.5%
In the first three quarters of 2026, CPIC Life achieved scale premium of 267.651 billion yuan, up 1.4% year on year; insurance service revenue of 64.634 billion yuan, up 1.0% year on year; and new business value of 14.351 billion yuan, down 6.5% year on year. By channel, the agent channel maintained steady value growth; the bancassurance channel came under pressure in terms of value growth due to factors including a high base in the same period last year, phased changes in product structure, and shifts in the market environment. At the end of the third quarter, the number of insurance sales agents stood at 182,000, with monthly average first-year scale premium per core agent reaching 91,000 yuan, up 27.3% year on year. In the first three quarters, the agent channel generated scale premium of 185.335 billion yuan, up 0.5% year on year. In the first three quarters, the bancassurance channel generated scale premium of 62.425 billion yuan, up 7.1% year on year; the group and government channel generated scale premium of 16.338 billion yuan, up 0.3% year on year.
CPIC P&C's Combined Ratio Drops 1.4 Percentage Points
In the first three quarters of 2026, CPIC P&C achieved original insurance premium income of 163.245 billion yuan, up 1.9% year on year, and insurance service revenue of 151.408 billion yuan, up 0.4% year on year. Auto insurance generated original insurance premium income of 80.533 billion yuan, up 0.1% year on year. Non-auto insurance generated original insurance premium income of 82.712 billion yuan, up 3.7% year on year.
Fair Value Falls 66.4 Billion Yuan Year on Year
By the end of the third quarter, China Pacific Insurance (Group) Co., Ltd. (ASX: 601601) had investment assets of 3.24 trillion yuan, up 6.4% from the end of the previous year. In the first three quarters of 2026, the net investment yield on investment assets was 2.4%, down 0.2 percentage points year on year; the total investment yield was 2.5%, down 2.7 percentage points year on year. The real drag on CPIC's performance came from changes in fair value, which swung from a gain of 41.893 billion yuan in the same period last year to a loss of 24.515 billion yuan, a year-on-year decrease of about 66.408 billion yuan.
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