The interplay of light and shadow aptly characterizes Ping An Insurance's journey of transformation, marked by both steadfastness and breakthroughs. The path to long-term corporate development is invariably accompanied by both opportunities and challenges. In 2025, the Chinese insurance industry underwent a profound metamorphosis. On one hand, channel reforms driven by the implementation of the "unified reporting and operations" policy and product transitions prompted by downward adjustments in guaranteed interest rates presented hurdles. On the other hand, a recovering equity market and increased policy support injected fresh momentum for growth, creating a landscape where opportunities and challenges coexisted.
Ping An's performance in 2025 serves as a clear reflection of these industry dynamics, featuring both bright spots and areas of pressure. The "light" is evident in the steady growth of its core businesses, the continued execution of its strategic layout, explosive growth in the bancassurance channel, strong performance in auto insurance, and a counter-trend improvement in investment returns, all highlighting the company's robust fundamentals as an industry leader. The "shadow" manifests as pressures faced during the transformation process, including challenges in certain business segments, such as temporary difficulties in the individual agent channel and uneven profitability across non-auto insurance lines, which are common issues during an industry-wide transition.
At the group level, Ping An's 2025 results demonstrate the resilience of a comprehensive financial leader during a period of change. Key metrics showed steady growth: total premium income reached 1,004.606 billion yuan, a year-on-year increase of 5.58%. Insurance service revenue was 559.303 billion yuan, up 1.42%, although this growth rate was relatively slow. Net profit amounted to 158.301 billion yuan, increasing by 7.88%. Net profit attributable to parent company shareholders was 134.778 billion yuan, rising 6.45%. Operating profit reached 134.415 billion yuan, marking a 10.30% increase.
The company's asset base continued to strengthen. Total assets grew to 13,898.471 billion yuan, up 7.26%. Net assets attributable to parent company shareholders increased to 1,000.419 billion yuan, a 7.73% rise. Embedded value saw significant growth, reaching 928.630 billion yuan, an 11.20% increase. The operating return on equity (ROE) remained stable at 12.70%.
A notable highlight was the net profit attributable to parent company shareholders, excluding non-recurring items, which surged to 143.773 billion yuan, a substantial 22.50% year-on-year increase. Management attributed this to a focus on profit quality and sustainability, despite short-term fluctuations from one-time events such as the consolidation of Ping An Good Doctor and the sale of Auto Home.
However, Ping An also confronted industry-wide challenges, including premium declines for certain life insurance products, pressure on new regular-premium business from the individual agent channel, pronounced profitability weaknesses in non-auto property and casualty (P&C) insurance lines, and a slight decrease in the net investment yield for its asset management segment.
The life and health insurance business, a core segment, demonstrated an overall trend of "improving quality and efficiency" alongside "structural divergence." Total premiums for the segment reached 661.438 billion yuan, up 5.04%. New business premiums were 211.221 billion yuan, increasing by a modest 1.45%. First-year regular premiums grew by 5.54% to 120.763 billion yuan. Renewal premiums provided stable support, rising 6.81% to 450.217 billion yuan. Insurance service revenue saw a slight decline of 1.30% to 220.391 billion yuan. A major bright spot was the New Business Value (NBV), which surged 29.3% to 36.897 billion yuan, with the NBV margin improving by 5.8 percentage points to 28.5%. Net profit for the segment jumped 22.00% to 112.329 billion yuan. Policy persistency rates reached new highs, with the 13-month rate at 97.40% and the 25-month rate at 94.90%, indicating strong customer retention.
Channel performance was markedly divergent. The individual agent channel saw total premiums of 529.722 billion yuan, a slight increase of 1.36%. However, new business premiums in this channel declined by 11.06% to 132.345 billion yuan, and first-year regular premiums fell 16.97% to 81.9 billion yuan. The NBV from this channel still grew by 10.4% to 23.823 billion yuan, with the NBV margin rising significantly by 9.5 percentage points to 38%. Productivity improved, with NBV per agent reaching 80,400 yuan per year, up 17.20%, even as the agent force shrank by 3.30% to 351,000 individuals. However, average monthly income per agent decreased by 10.5% to 9,299 yuan, potentially impacting team stability.
In contrast, the bancassurance channel was the standout performer. Total premiums soared 50.29% to 71.52 billion yuan. New business premiums skyrocketed 92.25% to 41.898 billion yuan, and first-year regular premiums exploded by 162.89% to 32.005 billion yuan. The NBV from bancassurance surged 138.00% to 9.408 billion yuan, establishing it as the core engine for life insurance growth.
Product performance was mixed. Traditional life insurance premiums grew 10.13% to 231.109 billion yuan. Participating insurance premiums surged 41.28% to 91.887 billion yuan, becoming a popular product in the low-interest-rate environment. Annuity premiums increased 4.32% to 108.155 billion yuan. Conversely, universal life insurance premiums fell 13.83% to 89.87 billion yuan, while long-term health insurance and accident/short-term health insurance premiums also declined. Fu Xin, Executive Director, Deputy General Manager, and CFO, noted that NBV growth was strong in the first three quarters but moderated in the fourth, partly due to customers front-loading purchases ahead of regulatory changes and partly due to prudent year-end actuarial assumption reviews, which she said created a safety margin for future performance. She expressed strong confidence in NBV growth for 2026, citing a robust start.
In the P&C insurance sector, results showed "volume and quality rising together," though net profit slightly declined by 2.8% to 14.597 billion yuan, mainly due to one-time asset disposals. Total premiums grew 6.6% to 343.168 billion yuan. The combined ratio improved by 1.5 percentage points to 96.8%, and underwriting profit nearly doubled, surging 96.20% to 10.717 billion yuan.
Auto insurance, the segment's cornerstone, remained strong. Premiums grew 3.2% to 230.362 billion yuan, and the combined ratio improved significantly by 2.3 percentage points to 95.8%. Underwriting profit soared 126.04% to 9.496 billion yuan. New energy vehicle insurance premiums saw particularly strong growth, rising 39% to 52.48 billion yuan.
Non-auto insurance lines showed high growth in scale but uneven profitability. Total non-auto premiums increased 14.5% to 112.806 billion yuan. Accident and health insurance premiums grew 25.2% to 38.239 billion yuan, but underwriting profit for this line plummeted 82.79%. Liability insurance premiums were nearly flat, but the segment reported an underwriting loss of 1.642 billion yuan. Agricultural insurance was a bright spot, with premiums up 16.30% and underwriting profit increasing more than sixfold. Cargo transportation insurance premiums surged 58.22%.
Regarding investments, Ping An's insurance fund investment portfolio expanded to 6,489.962 billion yuan, up 13.23%. Net investment income grew 7.30% to 188.209 billion yuan, though the net investment yield edged down 0.1 percentage points to 3.70%. Total investment income increased 13.50% to 234.251 billion yuan. Comprehensive investment income rose 21.70% to 324.507 billion yuan, lifting the comprehensive investment yield by 0.5 percentage points to 6.30%.
The asset allocation shifted towards equities. Debt investments decreased slightly by 2.92% to 4,103.943 billion yuan, constituting 63.24% of the portfolio. Equity investments, however, surged 119.05% to 958.089 billion yuan, reflecting successful positioning in dividend-paying and growth sectors. Equity fund investments also more than doubled, growing 112.53% to 283.54 billion yuan.
Guo Xiaotao, Executive Director, Co-CEO, and Deputy General Manager, emphasized a long-term, disciplined approach focused on aligning investments with liabilities, funding costs, product features, economic cycles, and regulatory requirements. The strategy prioritizes "finding certainty within uncertainty" and concentrates on national strategic areas like infrastructure, healthcare, elderly care, high-dividend financials, and technology.
CFO Fu Xin further highlighted that 57% of the equity portfolio is classified at Fair Value Through Other Comprehensive Income (FVTOCI), with unrealized gains exceeding 90 billion yuan. While these gains do not immediately impact current profits, they substantially bolster net assets and balance sheet resilience, providing a solid foundation for sustainable future dividends.
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