Xiaokang Life Insurance reported a net loss of 6.01 billion yuan in the second quarter of 2026, a figure that is 1.36 times its total net profit for the entire year of 2025.
After achieving profitability for just two years, Xiaokang Life Insurance has returned to a loss-making position, with a single quarter's deficit erasing more than a year's worth of prior earnings. The company recently disclosed its solvency report for the second quarter of 2026.
The data shows that in the first half of 2026, Xiaokang Life recorded insurance premium income of 5.05 billion yuan, a year-on-year increase of 10.64%. However, its net profit was -5.08 billion yuan, a sharp reversal from a profit in the same period last year. In the second quarter alone, premium income was 2.80 billion yuan, up 22.17% year-on-year, but the net loss reached 6.01 billion yuan, compared to a profit of 0.53 billion yuan in the same quarter of 2025.
While the company's premium scale on the liability side continued to grow and its comprehensive surrender rate remained low at just 0.21% in Q2 and 0.42% for the first half, the sudden plunge into a deep loss can be traced to its investment performance. In the second quarter of 2026, Xiaokang Life's investment yield and comprehensive investment yield stood at -1.06% and -7.30%, respectively. This contrasts sharply with the first quarter of 2026, where these figures were 1.97% and 1.88%, and the second quarter of 2025, where they were 1.26% and 2.39%. The investment returns deteriorated significantly both quarter-over-quarter and year-over-year. For the entire first half of 2026, the average investment yield was 0.98%, and the comprehensive investment yield was -5.24%, a far cry from its three-year average of 6.74% and 8.92%, respectively. The weak performance on the investment side was a primary drag on the company's Q2 results.
Public records show that Xiaokang Life, originally known as China Life Insurance, was founded in Beijing in December 2005. It underwent a shareholder change and capital increase in December 2020 before officially being renamed in 2021. For a long period around the rebranding, the company was mired in losses. According to annual reports, from 2014 to 2023, Xiaokang Life recorded net losses of 0.25, 0.45, 0.82, 0.74, 0.67, 0.62, 0.55, 0.28, 0.43, and 2.18 billion yuan, totaling 6.99 billion yuan. The company turned profitable in 2024 and 2025, with net profits of 5.14 billion and 4.42 billion yuan, respectively. This means the single-quarter loss in Q2 2026 is equivalent to 1.36 times the full-year profit of 2025 and roughly 63% of the combined net profit for 2024 and 2025.
The solvency report for Q2 2026 also details the company's shareholding structure. Xiaokang Life has a registered capital of 3 billion yuan, held by four entities. The largest shareholder is Hongshang Industrial Holdings Group with a 33% stake, followed by Contemporary Amperex Technology Co., Limited (CATL) with 30%, Tsingshan Holding Group with 30%, and Guizhou Guixing Auto Sales Service Co., Ltd. (Guizhou Guixing) with 7%. However, this structure may be set to change. As disclosed on May 14, 2026, Guizhou Guixing plans to transfer its entire 7% stake to Tibet Junjie Investment Co., Ltd., a proposal that has been approved by the company's shareholders and is pending regulatory approval from the Shanghai office of the National Financial Regulatory Administration. Notably, the report indicates that all shares held by Guizhou Guixing are currently pledged.
Furthermore, Xiaokang Life announced a temporary leader on June 8, 2026. According to a board resolution effective May 28, 2026, Luo Zhenhua has been appointed as the company's interim head. Reports suggest this may end the long-standing vacancy in the general manager position. Luo Zhenhua previously served as the Party Committee Deputy Secretary, General Manager, and Chief Risk Officer at Huaren Life Insurance. He left that role in May 2026 to join Xiaokang Life, marking his return to the firm, as he had previously served as a Vice President of the company's predecessor, China Life Insurance.
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