Recent disclosures from 77 non-listed property and casualty insurers for the first half of the year show a combined premium income of 271.603 billion yuan. Excluding the incomparable data of Bnp Paribas Tianxing P&C Insurance, 76 of these firms collectively recorded a 4.66% year-on-year premium growth, while their aggregate net profit stood at 8.953 billion yuan, a decline of 2.69% compared to the same period last year.
China Life Property & Casualty Insurance led the premium rankings with 59.987 billion yuan. China United Property Insurance (43.214 billion yuan) and Yingda Property Insurance (10.615 billion yuan) joined the "100-billion club." On the profitability front, 64 insurers, representing 80% of the total, achieved positive net income. However, 13 firms, including Guoren Insurance (-0.080 billion yuan) and Sunshine Agricultural Insurance (-0.058 billion yuan), reported losses.
Losses for 13 Insurers and Three Firms with C-class Risk Ratings
At the individual company level, China Life P&C topped the premium table with 59.987 billion yuan. China United Property and Yingda Property each exceeded 100 billion yuan, recording 43.214 billion and 10.615 billion yuan, respectively. Other insurers in the top 10 premium earners include Taikang Online (9.409 billion yuan), Zijin Insurance (8.686 billion yuan), Shenneng Insurance (8.657 billion yuan), Huaan Insurance (7.972 billion yuan), Guoren Insurance (6.869 billion yuan), Huatai Insurance (6.138 billion yuan), and Dajia P&C Insurance (6.062 billion yuan). The top 10 firms collectively accounted for approximately 60% of total premiums, at 167.609 billion yuan, indicating high market concentration.
Focusing on profitability, the 77 firms generated a combined net profit of 8.953 billion yuan in the first half, a 2.69% year-on-year decrease. Of these, 64 insurers were profitable, representing over 80% of the total, while 13 fell into the red. China Life P&C posted a net profit of 2.197 billion yuan, and Yingda Property achieved 1.259 billion yuan, making them the only two insurers with net profits exceeding 1 billion yuan. Other top 10 net profit earners include Dinghe Insurance (0.547 billion yuan), Huaan Insurance (0.472 billion yuan), Zijin Insurance (0.344 billion yuan), China United Property (0.297 billion yuan), Taikang Online (0.274 billion yuan), Huatai Insurance (0.272 billion yuan), Yong'an Insurance (0.253 billion yuan), and Shenneng Insurance (0.228 billion yuan). The top 10 institutions accounted for nearly 70% of total net profit, at 6.140 billion yuan.
Thirteen insurers experienced losses, including Guoren Insurance (-0.080 billion yuan), Sunshine Agricultural Insurance (-0.058 billion yuan), Dongwu P&C Insurance (-0.051 billion yuan), Bnp Paribas Tianxing P&C Insurance (-0.050 billion yuan), Hyundai Insurance (-0.037 billion yuan), China Fishery Mutual Insurance Association (-0.018 billion yuan), Changjiang P&C Insurance (-0.017 billion yuan), Taiping Technology Insurance (-0.016 billion yuan), Jiulong P&C Insurance (-0.012 billion yuan), Qianhai United P&C Insurance (-0.010 billion yuan), Strait-Qiaojin P&C Insurance (-0.010 billion yuan), Starr Insurance (-0.003 billion yuan), and Nippon Koa Insurance (China) (-0.3451 million yuan).
Additionally, Anhua Agricultural Insurance, Qianhai United P&C Insurance, and Asia Pacific Insurance received a comprehensive risk rating of C, indicating non-compliance. Anhua Agricultural Insurance attributed its C rating to corporate governance risks, stating it is actively implementing rectification measures as required by regulators, with substantial progress being made. Qianhai United P&C Insurance noted that its low scores were mainly due to solvency, operational performance, and personnel stability. The company is optimizing its capital structure, enhancing risk management, controlling costs, and improving business efficiency to strengthen its risk rating indicators. Asia Pacific Insurance said it has analyzed the reasons for abnormal fluctuations in its indicators and is working to improve its operational foundation and risk management capabilities to boost its scores.
Overall, the property insurance industry in the first half showed a divergent pattern of "premium growth and profit decline." Yang Fan, General Manager of Beijing Paipaiwang Insurance Agency Co., Ltd., explained that this phenomenon is not driven by a single factor but results from both underwriting and investment activities. On the underwriting side, intense competition has led to increased costs and claim payouts for some firms as they expand their scale. Natural disasters have also potentially raised claim ratios, preventing premium growth from fully translating into profits. On the investment side, low interest rates have reduced returns on fixed-income assets, while equity market volatility has added uncertainty to investment income, pressuring profits. Therefore, insurers must now focus on the quality of growth. If a large business scale is accompanied by a high combined ratio, relying solely on investment gains to offset underwriting losses is becoming increasingly unsustainable. The competition among non-listed property insurers now extends beyond premium scale to encompass comprehensive capabilities in underwriting pricing, cost control, investment, and risk management.
Divergent Investment Performance: Max Comprehensive Investment Yield at 7.88%, Min at -1.38%
Volatility in the capital markets during the first half also led to divergent investment performance among non-listed property insurers. The median and average investment yields were 1.30% and 1.44%, respectively. Only one insurer achieved a yield above 5%, and one above 4%, while six firms reported negative yields.
Guangdong Energy Self-Insurance led the investment yield rankings with 5.75%, followed by Huanghe Property Insurance at 4.14%. Other top 10 firms by investment yield, with rates between 2% and 4%, include Taiping Technology Insurance (3.69%), Huiyou Property Mutual Insurance Society (3.30%), Beibu Gulf P&C Insurance (3.08%), Ancheng Insurance (2.87%), Cathay Insurance (2.83%), Taishan Insurance (2.74%), BOC Insurance (2.71%), and Xin'an Insurance (2.67%). Insurers with negative investment yields include Huahai Insurance (-0.07%), China Railway Self-Insurance (-0.30%), Jiulong P&C Insurance (-0.52%), Bnp Paribas Tianxing P&C Insurance (-0.60%), Bohai Insurance (-0.70%), and Huanong Insurance (-1.24%).
In terms of comprehensive investment yield, the median and average were 1.52% and 1.72%, respectively. One insurer surpassed 7%, three exceeded 5%, and seven broke through 4%; conversely, seven firms recorded negative comprehensive yields. Huanong Insurance led the industry with a 7.88% comprehensive yield, Guangdong Energy Self-Insurance (5.75%) and Huanghe Property Insurance (5.50%) also exceeded the 5% threshold. Insurers with yields above 4% include China Life P&C (4.78%), Guoyuan Agricultural Insurance (4.64%), Beibu Gulf P&C Insurance (4.59%), and BYD Insurance (4.25%). Rounding out the top 10 for comprehensive yield were Huiyou Property Mutual Insurance Society (3.84%), Taiping Technology Insurance (3.69%), and Yong'an Insurance (2.92%). Firms with negative comprehensive yields included Starr Insurance (-0.03%), CNPC Captive Insurance (-0.04%), Zijin Insurance (-0.08%), Bnp Paribas Tianxing P&C Insurance (-0.40%), Jiulong P&C Insurance (-0.52%), Bohai Insurance (-0.84%), and Xin'an Insurance (-1.38%).
Professor Wang Guojun from the University of International Business and Economics' School of Insurance noted that the overall investment return center for non-listed property insurers is relatively low, with significant divergence among institutions. Small and medium-sized insurers are highly dependent on investment income for profitability and have weak resilience against volatility. He recommended that asset allocation prioritize liquidity safety, build a solid fixed-income base, moderately increase returns, and strictly control equity and credit risks. Large insurers can diversify their portfolios, but smaller ones should avoid high-risk assets, improve underwriting quality, reduce reliance on investment income, and conduct market stress tests.
Yang Fan believes that compared to life insurers, property insurers have shorter liability durations and greater claim uncertainty. Therefore, asset allocation should first ensure safety and liquidity before seeking reasonable returns. It is crucial to match assets with liabilities based on term and cash flow characteristics, using high-liquidity, stable assets as a foundation. Moderate diversification can enhance income sources, but insurers should avoid excessive investment risk to compensate for underwriting losses. "In particular, small and medium-sized companies should allocate based on their own capital strength and risk tolerance, rather than simply chasing higher investment yields," he concluded.
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