10 billion yuan! This "giant property insurance company" reveals the scale of long-term capital entering the market

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Recently, PICC held its third quarter performance briefing.

Executives of this leading Chinese property insurance giant were all present, engaging in in-depth exchanges with domestic and international investors. The discussion covered not only business strategies for various insurance products, but also new developments in secondary market investment operations.

PICC has responded to the call for long-term capital to enter the market, and has specially established a private fund platform targeting the stock market. The source and scale of the first phase of funding have been finalized.

Zishitang has organized the content of this briefing as follows for readers.

Equity and Bond Allocation Strategies

Property insurance liabilities have no capital cost, and the liability duration is short, making allocation more flexible.

In terms of fixed income investment, they will continue to adopt a flexible duration strategy, allocating interest rate bonds opportunistically according to market conditions; persisting in not lowering credit rating standards, and selecting the best credit products.

For equity investment, they will maintain stable equity positions, diversify investment strategies, continue to opportunistically allocate high-dividend stocks, actively seize opportunities to invest in high-growth stocks, and increase returns through cyclical operations; select quality equity projects and actively promote the company’s industrial investment layout.

Bond Market Volatility Prediction

We believe that after the rise in the equity market’s risk appetite and the earlier correction of yield curve distortions, the bond market will remain volatile for some time in the future. We think the current trend of China’s economic improvement is continuing to solidify.

Private Fund Platform Operational Details

At present, PICC Asset’s “PICC Qiyuan Huizhong (Beijing) Private Fund Management Co., Ltd.” has been officially established. Going forward, a contractual private securities investment fund will be issued directionally, with PICC Life as the sole investor and the initial investment scale expected to be 10 billion yuan.

This fund, as a pilot long-term stock investment fund, will balance portfolio stability and return objectives, formulate a reasonable allocation strategy, and pursue medium to long-term stable asset growth under scientific risk management.

Auto Insurance Business Profitability Outlook

In the first three quarters of 2025, the company’s comprehensive cost ratio has improved significantly year-on-year.

Specific measures include: First, strictly implementing the requirement to unify pricing and reporting, taking the lead in maintaining market order, strictly controlling expenses, resulting in a significant year-on-year decrease in expense ratio.

Second, continuously optimizing business structure and strengthening underwriting and claims management, leading to stable improvement in business quality. The share of self-owned vehicles and auto insurance renewal rates have both increased year-on-year; key risk pricing models and underwriting policies have been iteratively launched in key areas to promote comprehensive management of high-risk business; deepening risk reduction services.

Third, accelerating digital transformation and improving risk control and operational efficiency.

The company will continue to adhere to high-quality development of auto insurance business, further strengthen risk selection, optimize business structure, and expects auto insurance business to continue to outperform the industry in profitability.

Discussion on Agricultural and Liability Insurance

For agricultural insurance, the company will closely monitor business opportunities, strengthen premium management, and improve the coverage rate of central government subsidized crops; expanding and innovating local characteristic insurance in line with the regional distribution and development focus of specialty agricultural products.

It is expected that agricultural insurance business will continue stable growth and maintain healthy operational results.

For liability insurance, the company will keep activating new momentum for high-quality development, expand new space for high-quality growth, and shape new advantages. As the company’s professional service capacity and refined management continue to improve, the effectiveness of managing unprofitable liability business will become increasingly evident.

Insurance Products in Frontier Areas

The company has the largest customer base and possesses extensive data, enabling it to lead in risk pricing. Overall profitability for new energy vehicles is significantly better than the market average.

The company actively promotes research on related frontier insurance products, continuously strengthens cooperation with OEMs in new risk protection scenarios, enhances product development and innovation, and actively responds to new protection needs of the market and customers.

From January to September 2025, the company’s overseas China-related business experienced rapid growth and underwrote profitably. The company has built long-term cooperative relationships with international insurance and reinsurance entities, increased the coverage of issuance, claims, legal and other service networks for overseas China-related business, and actively constructed a global risk diversification and sharing mechanism for such business.

Regarding new energy vehicle companies entering the property insurance sector, as the largest market entity, the company actively fulfills its central financial enterprise responsibility, takes the lead in implementing guidance, and strategically develops new energy vehicle insurance, proactively serving the country’s green transformation and real economy development. With the rapid growth of new energy vehicle insurance premiums, the company will continue to strengthen its pricing ability, enhance risk selection, optimize business structure, maintain the profitability bottom line, and ensure that new energy vehicle insurance maintains a reasonable level of profitability.

Risk Disclosure and DisclaimerThe market has risks, invest prudently. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of any individual user. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investment based on this is at your own risk. ```