Sunshine Insurance 2025 Financial Report Perspective: Multiple Core Indicators Growth, Life Insurance New Business Value Increases 48%

Sunshine Insurance Life Insurance Achieves High Growth in New Business Value; How Can the Bank-Insurance Channel Reverse the Downward Trend?

In the macro environment of low interest rates and asset scarcity, insurance companies’ balance sheets are facing severe challenges. Looking at Sunshine Insurance’s recent 2025 performance report, the data reflects a cautious balance maintained by management between business growth and risk cleanup.

Overall, Sunshine Insurance continues to expand steadily:

• In 2025, the group achieved a net profit attributable to shareholders of 6.31 billion yuan, a 15.7% increase year-over-year;
• Total premium income reached a new high of 150.72 billion yuan, up 17.4%;
• The group’s embedded value (EV), representing long-term company value, steadily increased by 4.3% to 1207.8 billion yuan.

As the group’s primary performance driver, Sunshine Life Insurance made significant strides in 2025.

Despite industry-wide pressure on new single premium growth, Sunshine Life’s total new premium income surpassed the 100 billion yuan mark for the first time, reaching 102.61 billion yuan, a substantial 27.5% increase year-over-year.

More notably, its value creation capability is impressive. During the reporting period, Sunshine Life’s new business value (NBV) reached 7.64 billion yuan, a 48.2% increase year-over-year.

This strong growth is largely attributed to the explosive performance of the bank-insurance channel. Under the industry-wide implementation of the “reporting and operation integration” regulation, new single premium business via the bank-insurance channel still surged by 69.0%, reaching 34.09 billion yuan.

To effectively hedge against the risk of declining long-term interest rates, Sunshine Life restructured its product portfolio defensively.

In the bank-insurance new single premium paid-up segment, the proportion of floating-yield products has increased to 32.2%. By shifting part of the interest rate risk from the investment side to the liability side, the company effectively reduced the rigid liability costs.

Additionally, the contract service margin (CSM) balance, which indicates future profit potential, reached 57.62 billion yuan, a 13.3% increase from the end of last year, laying a solid foundation for future performance certainty.

Compared to the robust momentum of life insurance, Sunshine Property & Casualty Insurance’s apparent data appears somewhat pressured. However, this seems more like a strategic asset-liability management adjustment by management.

The financial report shows that Sunshine P&C’s combined ratio (COR) in 2025 was 102.1%, recording an underwriting loss of 1.03 billion yuan.

Breaking down the specific insurance lines reveals that the core drag on overall profit comes from the guarantee insurance business, whose COR rose to 129.0% during the year, with a single-line underwriting loss of 1.51 billion yuan.

Facing this tail risk, Sunshine Insurance took decisive cleanup measures. Starting in 2026, it will cease all new guarantee insurance business related to financing, and based on prudent principles, it made a one-time full reserve in 2025.

This is a pragmatic approach to absorb past liabilities with current profits. Excluding the disturbance from guarantee insurance, Sunshine P&C’s core business remains healthy.

The financial report shows that during the reporting period, Sunshine P&C’s non-guarantee insurance combined ratio was 98.9%, achieving underwriting profit of 490 million yuan. Notably, motor vehicle insurance, serving as a stabilizer, maintained a COR of 98.2%, contributing 480 million yuan in underwriting profit.

With high-risk business being concentrated and cleared within the year, the property and casualty sector is expected to operate more lightly in 2026, with substantial profit elasticity.

On the investment side, Sunshine Insurance’s asset allocation strategy also demonstrates high flexibility. By the end of 2025, the company’s investment assets reached 640.2 billion yuan, a 16.7% increase year-over-year. Total investment income for the year was 25.23 billion yuan, up 27.1%, with the overall investment yield rising against the trend to 4.8%.

This is mainly due to management timely realizing unrealized gains, with realized gains reaching 3.61 billion yuan, a 78.8% increase year-over-year.

Particularly in equities, the realized gains shifted from a loss of 1.00 billion yuan last year to a profit of 4.20 billion yuan, becoming a key support for current profits.

While maintaining business transformation and risk cleanup, Sunshine Insurance also sustained stable shareholder returns, planning to distribute a final dividend of 0.19 yuan per share, totaling approximately 2.185 billion yuan.

Overall, this financial report contains certain expectations. Management has leveraged the strong growth in life insurance NBV and realized gains on investments to fully provision and divest from the hidden risks in the property and casualty sector.

For the capital market, behind the modest 15.7% profit growth on the books lies a substantial improvement in underlying business quality after deep optimization. Freed from burdens, Sunshine Insurance is poised to accumulate more momentum for its 2026 performance.