In recent years, China's insurance industry, influenced by regulatory guidance, market forces, and technological advancement, has been undergoing a profound and comprehensive systemic transformation. The release of the new "Ten National Guidelines" in 2024, in particular, marks a fundamental shift in the industry's development path: moving away from a model reliant on "scale expansion" and "spread-driven" growth towards a new stage centered on "value creation" and "management-driven" high-quality development. In this industry-wide transformation, the financial reports of insurance companies are no longer just a collection of figures but a test of their strategic resolve, reform commitment, and execution efficiency. As a significant market participant, SUNSHINE INS (06963) has presented a progress report on its "value transformation" through its full-year 2025 results.
The impressive performance achieved by SUNSHINE INS stems from the company's proactive adaptation to the new environment and its active response to emerging changes. By deeply implementing its "New Sunshine" strategy, the company has continuously strengthened its core competitiveness across "product offerings," "service ecosystem," "technology," "customer service," and "team management." With firm strategic determination and developmental resilience, the company has charted a stable and solid path towards high-quality development. These results not only reveal the effectiveness of SUNSHINE INS's own transformation under the new industry dynamics but also reflect how a proactive company, amidst an increasingly polarized industry ("Matthew Effect"), can consolidate its position and achieve sustained breakthroughs through systematic reform. It can be said that SUNSHINE INS provides a practical reference model for the industry's transformation.
The differentiated competitive advantage in product offerings highlights a high-quality breakthrough. In the macroeconomic context of economic transition, the insurance industry's previous "asset-driven liability" model, dependent on interest spreads, has become unsustainable, prompting the industry to urgently seek new development paths. Concurrently, regulatory bodies have introduced a series of significant policies, including the new "Ten National Guidelines," a dynamic adjustment mechanism for predetermined interest rates, and the "unified filing and implementation" rule, pushing the industry back to its protection roots and clarifying the direction for high-quality development. Furthermore, consumer demand has shifted from basic coverage to comprehensive solutions encompassing health and retirement planning. Driven by these macro, regulatory, and demand-side changes, product transformation has become a necessity for survival and growth in the industry.
SUNSHINE INS has persistently advanced its "Customer-Centric Sunshine" strategy, closely aligning product supply with these trends, and has achieved solid results in its transformation. In 2025, Sunshine Life Insurance actively seized opportunities presented by the new economic cycle and population aging, deeply integrating the "Three/Five/Seven" concept and adhering to the creation of a distinctive full-life-cycle product system. Focusing on the core needs of the senior demographic, it launched 12 innovative products under the "Wonderful Life" series, achieving breakthroughs in product structure, entry age, benefit payout methods, and supporting services to comprehensively meet the needs of senior clients. Simultaneously, it enriched its range of savings-oriented products, continuously optimizing and upgrading its product matrix to precisely match the diverse wealth management needs of clients in the new economic cycle. The company also maintained a deep focus on the health protection market, strategically expanding into potential areas like innovative drugs, broadening the age range for coverage, and actively responding to clients' diverse and personalized health protection needs. This distinctive full-life-cycle product system has endowed Sunshine Life with a differentiated competitive advantage in the market.
This signifies that as clients become more rational and their understanding of insurance deepens, competition among insurers is no longer solely about cost, sales force size, or channel advantages. Instead, it revolves around how well products match client needs, especially comprehensive needs throughout their entire lifecycle. In this regard, whether through innovatively proposing the "Three/Five/Seven" protection concept, breaking industry conventions to build the "Wonderful Life" senior product system, or conducting annual large-scale client needs surveys, SUNSHINE INS's actions clearly demonstrate more forward-thinking and insightful strategies.
The service ecosystem layout has achieved phased results, opening new paths for sustainable growth. If product transformation is the "required question" for high-quality development in insurance, then the in-depth development of the service ecosystem is the "decisive question" determining future success. Faced with the limitations of traditional models—low frequency, homogeneity, and reliance on spreads—the insurance industry is shifting from being a "post-event compensator" to a "full-cycle risk management partner." This aligns with clients' deeper needs for holistic solutions like health management and medical resources, making the service ecosystem a core barrier beyond price competition.
From an industry evolution perspective, the transformation of insurance service ecosystems is deepening along two main paths: first, the reconstruction of operations and enhancement of experiences driven by digitalization and AI technology; second, the evolution of the "insurance + service" ecosystem from cross-border connections to deep integration. In both areas, SUNSHINE INS, steadfastly implementing its "Tech Sunshine" and "Customer-Centric Sunshine" strategies, has made solid progress and achieved phased results.
In 2025, Sunshine Life Insurance fully advanced its "Tech Sunshine" strategy, establishing a data intelligence system as the core engine for high-quality development. It deeply integrated "AI+" technologies across all operational segments and management processes, continuously building a new ecosystem of smart insurance, and successfully implemented several key digital intelligence projects, achieving significant results in sales support, customer experience optimization, and operational efficiency improvements. For instance, in sales empowerment, Sunshine Life used AI technology to facilitate the transition of its sales force into professional consultants. The launched "AI Customer Management Assistant" can generate personalized client proposals within seconds and has been deployed nationwide.
Concurrently, Sunshine Life continuously upgraded its "Customer-Centric Sunshine" service system, striving to become a long-term guardian and companion for clients' better lives. In health services, for example, it established a full-cycle management loop covering "prevention-diagnosis-treatment-rehabilitation" and innovatively introduced the "Sunshine Health Addition & Subtraction" service concept. Its "Direct Access 30" full-process medical management service received high recognition and praise from clients. Furthermore, SUNSHINE INS has also made deep inroads in elderly care services, education services, and service quality management.
The ongoing deepening of the "Tech Sunshine" and "Customer-Centric Sunshine" dual strategies has tangibly enhanced customer satisfaction and service experience, effectively optimizing customer management outcomes. The performance in customer base management is particularly noteworthy: the number of clients with cumulative first-year standard premium reaching RMB 150,000 or more increased by 22.6% year-on-year, while the number of clients with premium of RMB 50,000 or more grew by 19.3%, indicating continuous optimization of the client structure and a strengthening value foundation.
Sunshine Property & Casualty Insurance also systematically upgraded its service system, continuously deepening the implementation of its "Partnership Action" risk management services to enhance service capability and quality. As mentioned, insurance is no longer limited to claim settlements but involves full-cycle protection. Having pioneered risk reduction services early in the industry, Sunshine P&C has built a first-mover advantage. This service is continually evolving, including establishing an ABCD grading evaluation system for service capabilities, expanding exclusive services to cover the onshore wind power industry, introducing integrated technologies like "long-distance 3D laser scanning + high-precision millimeter-wave radar" in the wind power sector, and innovating a risk reduction service model of "professional consultation + technological monitoring + insurance backstop" in general warehousing. In 2025, the company provided "professional + technology" risk management services to approximately 35,000 corporate clients.
Securities institutions generally believe that, based on its deep ecosystem layout, SUNSHINE INS has built a differentiated long-term competitive moat, achieving deep customer loyalty and business synergy. These unique resources provide a foundation for product innovation and precise pricing, simultaneously enhancing customer experience and underwriting quality while opening sustainable value growth paths beyond traditional insurance.
A fundamental shift in sales force quality drives management improvement and efficiency gains. Among all transformations towards high-quality development in the insurance industry, the reshaping of the sales force is the most urgent. The fundamental driver is that the old "massive manpower" tactic is no longer suitable under the new paradigm—amidst upgraded consumer demands, the impact of digital channels, and increasing product complexity, the marketing force urgently needs a deep-level transformation.
The path for sales force transformation inevitably points towards an improvement in "quality." Essentially, this transformation is a reconstruction of the industry value chain—shifting from channel-driven reliance on manpower scale to advisor-driven reliance on professional value. In the process of firmly advancing its "Value Sunshine" strategy, SUNSHINE INS's agency force reform aligns with this trend.
Partic noteworthy is the company's continuous promotion of the "One Body, Two Wings" strategy in its individual life insurance business, implementing differentiated management models. The "One Body" focuses on optimizing the quality of the traditional force, comprehensively enhancing professional capabilities, and accelerating the transformation of the product structure. The "Two Wings" continuously refine and optimize their models, strengthening the momentum for value development.
For the traditional force, by raising standards for new team building and improving the quality and efficiency of selective recruitment and cultivation, the company has steadily enhanced force quality. It also strengthened the force's customer management capabilities, deepened the penetration and execution of the "Three/Five/Seven" product system, and empowered the force with AI tools across various dimensions such as training and family policy development, comprehensively boosting the force's ability to sell diverse products and provide services. In 2025, the average productivity per active agent reached RMB 22,000, while the average productivity for new active agents was RMB 18,000.
The elite force adheres to high entry standards and systematic cultivation, deepens refined customer management, and demonstrates outstanding professional capability. In 2025, over half of the elite force held bachelor's degrees or higher, the monthly average active headcount remained stable, and per capita productivity was more than double that of the traditional force. In workplace marketing, Sunshine Life focused on corporate pension security needs, accelerated regional expansion and operational optimization, and drove rapid business growth.
In conclusion, the 2025 financial report demonstrates that as a mid-sized company, SUNSHINE INS has steadfastly used strategy as its core guide, carving out a distinctive development path characterized by "customer-driven growth, technology empowerment, and value increase." This success is attributed to the company's keen market insight and decisive strategic execution capabilities. Moreover, SUNSHINE INS's transformation and reform are not isolated breakthroughs but a systematic project coordinated across products, channels, ecosystem, and technology, allowing the company to build differentiated competitive barriers and gain a first-mover advantage as the industry enters a new phase of high-quality development.
SUNSHINE INS has demonstrated to the market its ability to navigate industry upheavals, leveraging its differentiated competitive advantages to weather cycles and shape a new development paradigm. This is likely to prompt the capital market to reassess the true value of SUNSHINE INS. Soochow Securities recently issued a research report expressing continued optimism regarding the implementation of the "New Sunshine Strategy" in SUNSHINE INS's life insurance segment and the optimization trend of its property and casualty insurance business structure. Based on this, the institution raised its profit forecasts for SUNSHINE INS for 2026-2027, noting that the company's current valuation remains low, and maintained a "Buy" rating.
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