In the first half of the year, the tech sector's rally boosted the stock market, benefiting individual investors, fund holders, and insurance companies. As of August 5, based on an incomplete tally from insurers' second-quarter solvency reports, 56 unlisted life insurance companies recorded total insurance premium income of approximately 796.171 billion yuan, up 9.68% year-on-year, while their net profit surged 109.25% to 60.456 billion yuan. Industry insiders suggest that improved returns on equity assets allocated by insurance funds drove up profitability, but caution against excessive optimism over this cyclical earnings boost. "The sector has entered a phase of slower, smaller, and harder-earned profits," one analyst noted.
56 Unlisted Insurers' Net Profit Doubles, Several See Over 10-Fold Growth
Insurance premium income grew by a single-digit percentage year-on-year, yet net profit doubled, presenting an unbalanced performance report for unlisted insurers in the first half. According to the incomplete tally, 56 unlisted life insurers generated total premium income of about 796.171 billion yuan, up 9.68% from a year earlier. Specifically, 35 insurers saw premium income rise, with Guomin Pension and Sanxia Life Insurance achieving over 100% growth. Lujiazui Guotai Life Insurance, Ergo Life Insurance, Surae Life Insurance, and Generali China Life Insurance reported premium income increases of 81.71%, 64.44%, 61.15%, and 55.7%, respectively. Conversely, 21 insurers experienced a decline in premium income, with Huagui Life Insurance, Hongkang Life Insurance, Hengqin Life Insurance, and Trust Mutual Life Insurance seeing drops of over 10%.
Net profit fluctuations were more pronounced. The 56 unlisted life insurers posted a combined net profit of 60.456 billion yuan, a 109.25% year-on-year jump. Among them, 50 were profitable, while only six—Heng'an Standard Pension, Sanxia Life Insurance, Great Wall Life Insurance, Haibao Life Insurance, Dajia Pension, and Xiaokang Life Insurance—recorded losses. Profitable firms like Dongwu Life Insurance, Lian Life Insurance, Caixin Life Insurance, Fosun United Health Insurance, Trust Mutual Life Insurance, and Great Wall Life Insurance saw net profit increases of over 10 times year-on-year. For instance, Dongwu Life Insurance reported a net profit of 658 million yuan in H1 2026, up more than 42 times from 15 million yuan in the same period last year. Trust Mutual Life Insurance, despite a 15.84% drop in premium income, saw its net profit surge over 13 times from 6 million yuan to 87 million yuan. Additionally, 12 insurers, including Fosun Prudential Life Insurance, Peking University Founder Life Insurance, and Aegon THTF Life Insurance, turned profitable in H1 2026 after losses a year earlier.
Investment Returns Boost Insurer Profits, but Xiaokang Life and Huagui Life Underperform
Commenting on the modest revenue growth but sharp profit increase among unlisted life insurers, Zhu Junsheng, a postdoctoral scholar and professor of applied economics at Peking University, noted that the disparity highlights the role of capital market recovery, equity asset valuation repairs, and improved investment returns in driving profit growth. "Life insurance company profits stem from underwriting and investment income. In the current low-interest-rate environment, investment returns have a more pronounced impact," Zhu said, adding that H1 profit growth largely reflects a cyclical dividend from improved investment conditions. Song Zhanjun, Deputy Secretary-General of the China Insurance Research Institute at Beijing Technology and Business University, attributed the low-to-moderate premium income growth but substantial profit increase to insurers' high returns in the capital market.
Data shows that among the 56 insurers, 32 saw year-on-year growth in comprehensive investment yields in H1 2026. The median comprehensive investment yield was about 2.48%, up from 2.36% a year earlier. Guofu Life Insurance, Manulife-Sinochem Life Insurance, and Peking University Founder Life Insurance all achieved comprehensive investment yields exceeding 4%, with correspondingly strong net profits. However, despite the overall positive trend, some insurers lagged. Xiaokang Life Insurance reported premium income of 505 million yuan, up 10.75% year-on-year, but its net profit swung from 159 million yuan last year to a loss of 508 million yuan. Poor investment returns were likely the primary cause, as its comprehensive investment yield ranked last among the 56 insurers at -5.24%, down from 5.53% a year earlier. Huagui Life Insurance saw declines in premium income, net profit, and comprehensive investment yield. Premium income fell 49.27% year-on-year, net profit dropped from 35 million yuan to 14 million yuan, and the comprehensive investment yield decreased by 3.52 percentage points to 0.71%. In May, Huagui Life Insurance announced the departure of Chairman Liu Gang and General Manager Luo Zhenhua, leaving the company's future uncertain.
Capital Market Volatility Intensifies in H2, Insurance Sector Enters 'Hard-Earned Profits' Phase
The sharp net profit growth among unlisted life insurers in H1 was driven more by improved investment returns than by enhanced underwriting capabilities. In H2, stock market volatility has increased. In July alone, the Shanghai Composite Index fell 6.4%, while the Shenzhen Component Index and the ChiNext Index dropped 16.21% and 23%, respectively. The previously hot tech sector slumped, and the market lacked clear direction. In early August, the tech sector rebounded, but heightened volatility has made insurance investment more challenging. Whether equity investments will boost or drag down profits in H2 remains uncertain. Industry insiders therefore caution against over-optimism about insurers' current profit growth.
Zhu Junsheng noted that the life insurance business structure is shifting, with increased contributions from bancassurance channels, wealth management products, renewal business, and top sales teams, while traditional agency channels face challenges like customer acquisition difficulties, longer transaction cycles, and changing client needs. "Over the longer term, the life insurance industry is transitioning from scale-driven to value-driven growth. The old model of relying on agent headcount expansion is weakening, and future growth will depend more on professional expertise, customer management, and integrated services. While overall industry data improvement is real, the business model transformation is ongoing," Zhu said. Therefore, evaluating the sector requires looking beyond profit growth to metrics like new business value, agent productivity, customer management quality, and investment return sustainability. The current phase is characterized by "improving financial performance coexisting with channel transformation pressures."
Song Zhanjun emphasized that the H1 net profit growth of unlisted life insurers should be viewed from a long-term perspective. "Capital market fluctuations are unpredictable. The insurance market has entered a phase of slower, smaller, and harder-earned profits, and industry transformation must continue steadily."
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