Great contribution from equity investments! Sunshine Insurance's financial report has "hidden depths."
```
Recently, two subsidiaries of Sunshine Insurance—Sunshine Life and Sunshine Property & Casualty—disclosed their financial data for the first nine months of this year.
The announcement shows: For the first three quarters of 2025, Sunshine Life and Sunshine Property & Casualty saw their net profits increase by 3.4% and 81.9% year-on-year, respectively, mainly driven by improved investment performance.
It is worth noting: Sunshine Insurance did not disclose a third quarter report, but instead published the solvency reports and latest financial statements of the above two subsidiaries on its official website.
It is reported that Sunshine Insurance Group was listed on the Hong Kong Stock Exchange in December 2022 and owns several specialized subsidiaries in property and casualty insurance, life insurance, credit, asset management, medical care, pensions, and technology.
Significant Growth in Investment Income
An analysis of the financial statements shows: In the first nine months of this year, investment income from Sunshine Life was about 18.23 billion yuan, a year-on-year growth of 24.7%, and investment income from Sunshine Property & Casualty was about 2.54 billion yuan, a year-on-year growth of 45.0%.
Next, let’s look at the fundamentals of the two subsidiaries: In the first three quarters, Sunshine Life achieved total operating income of 33.05 billion yuan, a year-on-year increase of 14.0%, with net profit of 5.25 billion yuan, up 3.4% year-on-year. Sunshine Property & Casualty achieved total operating income of 38.89 billion yuan, a year-on-year rise of 2.5%, and net profit of 1.66 billion yuan, up 81.9% from last year.
The Guolian Minsheng Securities team commented: Sunshine Life benefited from the rebound in the equity market, while Sunshine Property & Casualty achieved substantial net profit growth due to joint drivers from both asset and liability sides. In addition, the company expects liability costs to further decline by promoting the sale of participating insurance.
OCI Assets Are a Highlight
Zshitang noted: In the investment structure of insurance funds, OCI assets are becoming increasingly critical.
The characteristic of OCI assets is that changes in the market value of investments such as stocks are not included in the current profits, but are directly reflected in net assets. For insurance funds, this can both stabilize profit fluctuations and enhance capital strength when the market rises.
In the first three quarters of this year, Sunshine Life and Sunshine Property & Casualty achieved a combined total of 20.76 billion yuan in interest income, investment income, and fair value change gains, a 26.8% increase year-on-year.
Minsheng Securities analyst Zhang Kaifeng calculated: According to the disclosure in the 2025 interim report of parent company Sunshine Insurance, the proportion of OCI stocks is significantly higher than peers, reaching 71%. The corresponding data for other peers are: Ping An Insurance 62.1%, China Life 22.6%, China Pacific Insurance 33.8%, New China Life 18.8%, PICC 46.4%, China Taiping 33.6%.
Based on the above, this analyst believes that the secondary market rose significantly in the third quarter this year, and since Sunshine Insurance subsidiaries include most stocks in FVOCI, with fair value changes counted in OCI and only dividends included in current investment income, the net profit does not fully reflect the performance flexibility brought by the equity rise.
Risk Warning and DisclaimerThe market has risks; investment should be cautious. This article does not constitute personal investment advice nor does it take into account the special investment goals, financial situation or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at your own risk. ```