Net Profits in First Three Quarters Surpass Full-Year 2024, What Drives High Growth for Insurance Giants?

Investment returns have emerged as the core driver behind the robust performance of listed insurers.

Amid a recovering capital market and accelerated value transformation in the life insurance sector, China Life Insurance, PICC, Ping An Insurance, China Pacific Insurance, and New China Life Insurance delivered impressive results for Q3 2025.

By the end of the first three quarters of 2025, the five major A-listed insurers collectively reported revenue of RMB 2.37 trillion and net profits attributable to shareholders of RMB 426.039 billion, up 33.54% year-on-year (YoY), significantly surpassing the full-year 2024 figure of RMB 347.6 billion. Notably, Q3 net profits alone surged 68.34%, far exceeding market expectations.

Breaking it down: - **Ping An Insurance**: Revenue rose 7.4% YoY to RMB 832.94 billion, with net profits up 11.5% to RMB 132.856 billion. - **China Life Insurance**: Revenue grew 25.9% to RMB 537.895 billion, while net profits jumped 60.5% to RMB 167.804 billion. - **PICC**: Revenue increased 10.9% to RMB 520.99 billion, with net profits climbing 28.9% to RMB 46.822 billion. - **China Pacific Insurance**: Revenue expanded 11.1% to RMB 344.904 billion, and net profits rose 19.3% to RMB 45.7 billion. - **New China Life Insurance**: Revenue soared 28.3% to RMB 137.252 billion, with net profits surging 58.9% to RMB 32.857 billion.

This profit boom reflects an industry-wide uptrend, driven by insurers capitalizing on market opportunities through dual efforts in investments and liabilities, establishing a resilient growth model.

**Capital Market Recovery Fuels Record Profits** Improved capital market conditions significantly boosted insurers' investment returns. The five insurers’ total investment income reached RMB 887.5 billion in the first three quarters, up 35.64% YoY, with combined investment assets hitting RMB 20.26 trillion by end-September 2025.

Key highlights: - **China Life Insurance**: Total investment income rose 41% YoY to RMB 368.551 billion, with an investment yield of 6.42%, up 104 basis points (bps). - **New China Life Insurance**: Annualized total investment yield stood at 8.6%, with total assets exceeding RMB 1.8 trillion, up 8.3% from end-2024. - **Ping An Insurance**: Non-annualized comprehensive investment yield improved to 5.4%, up 1 percentage point YoY. - **China Pacific Insurance**: Net investment yield was 2.6%, while total investment yield rose 0.5 percentage points to 5.2%.

Insurers attributed the growth to equity market gains, which lifted returns on equity assets. Regulatory support, including China’s "New Nine Guidelines" and policies promoting long-term capital inflows, has further solidified insurers' role as stable, long-term investors.

**Strong New Business Value Growth** Life insurance operations also shone, with new business value (NBV) growth exceeding 30% across all five insurers: - **PICC Life**: NBV skyrocketed 76.6% YoY. - **New China Life Insurance**: NBV surged 50.8%. - **Ping An Life & Health**: NBV grew 46.2% to RMB 35.724 billion. - **China Life Insurance**: NBV rose 41.8%. - **China Pacific Life**: NBV increased 31.2% to RMB 15.351 billion.

Analysts noted that bancassurance channels drove volume and premium growth, while cost reductions and product optimization in agent channels further enhanced profitability.

**Navigating Challenges: Focus on High-Quality Development** Despite strong short-term results, insurers remain cautious about long-term challenges, particularly low interest rates compressing profit margins. Experts emphasize the need for innovation in asset-liability management and product structuring to build sustainable models.

Demographic shifts, such as rapid aging, present opportunities in pension finance, health management, and elderly care—a potential trillion-yuan market.

The 2025 Q3 results mark a collective victory for insurers in their transformation journey. To sustain growth, the industry must convert short-term gains into long-term value through high-quality development strategies.

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