New China Life Insurance Annual Report Released: Revenue Exceeds 157 Billion, Investment in 100 Billion Private Equity Fund Yield Revealed
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On the evening of March 27, the insurance giant New China Life Insurance disclosed its annual report.
In 2025, New China Life Insurance achieved an operating income of approximately 157.8 billion yuan, a year-on-year increase of 19%. The shareholders’ equity attributable to the parent company broke through 100 billion yuan, reaching 111.5 billion yuan, a year-on-year increase of 15.9%.
However, under the background of continued downward movement of the interest rate center and increased pressure on insurance funds to redeploy, this financial report serves more as an observation window.
On one hand, there is a re-pricing and restructuring of the liability side; on the other hand, trillion-level insurance funds are being repositioned and accelerating their entry into the equity market.
According to Zishitang’s review, what’s truly worth paying attention to isn’t just profit and scale themselves, but the subtle changes hidden in the “gaps” between investments and liabilities. These changes are quietly outlining the contours of a new round of allocation cycles for insurance capital.
Increase Stock Holdings! Increase Fund Holdings!
By the end of 2025, New China Life Insurance’s investment asset scale exceeded 1.84 trillion yuan, an increase of 13.0% over the previous year.
The annual report also disclosed: the total investment income for 2025 was about 104.3 billion yuan, an increase of 30.9% year-on-year; the total investment yield reached 6.6%.
As shown above, New China Life’s year-on-year increase in stock assets and fund assets was 19.70% and 36.6%, respectively, with increments of 35.657 billion yuan and 46.25 billion yuan.
This pace of allocation indicates that New China Life Insurance significantly increased its allocation to equity assets in 2025, with incremental funds continuously concentrated in stocks and public funds.
Regarding its asset allocation strategy, New China Life Insurance revealed the following information in the annual report:
Fixed income: Actively seize phase allocation opportunities, moderately extend asset duration, narrow the asset-liability duration gap, and strengthen the base of fixed-income assets; choose to allocate stable-performance fixed-income enhanced products when appropriate, moderately increasing yield elasticity.
Equity investment: The company always adheres to rational, value, and long-term investment concepts, actively builds equity asset allocations, stabilizing and enhancing investment returns.
Key Information in the “Gaps” of the Financial Report
New China Life Insurance is arguably one of the more “bold” institutions among large insurance companies in equity investment. In February 2024, it joined forces with China Life to establish the Guofeng Xinghua private fund platform, marking the first move toward long-term market participation by insurance capital.
The investors in Guofeng Xinghua are asset management subsidiaries of China Life and New China Life Insurance, operated jointly at a 50%:50% shareholding ratio.
This private platform, focusing on secondary market investments, issued the Honghu Series Funds (hereinafter referred to as “Honghu Funds”). Besides the two insurance giants as sponsors, some small and medium insurance companies later invested as holders, slowly becoming a “magnet” for China’s insurance capital.
Several days ago, in China Life’s 2025 annual report, there was a “low-profile” disclosure that the Honghu Funds’ scale exceeded 100 billion yuan at the end of 2025.
This can be considered the first “official announcement” of the latest scale, as the Honghu Funds officially become a member of China’s trillion-yuan private fund club, sitting alongside long-established private funds such as Gao Yi Asset and Jinglin Asset.
Compared with China Life’s “low profile,” New China Life Insurance, as another key sponsor, “exposed” more operational information about Honghu Funds in its corporate financial report.
In the section on “separate significant joint venture financial information,” New China Life Insurance disclosed Honghu Zhiyuan (the first phase of Honghu Fund)’s total assets.
As shown above: at the end of 2024, Honghu Zhiyuan’s asset scale was 53.376 billion yuan, and by the end of 2025, it increased to 58.906 billion yuan.
Calculating from the above scale changes, Honghu Zhiyuan’s annual investment yield in 2025 was about 8.96%, which was a relatively stable level in that year’s equity market environment.
Although the Honghu Fund has other series in operation, only the first fund has undergone the full 2025 equity market cycle; other products mainly completed fundraising and position-building in the past year and have yet to form a complete annual performance.
Nearly Fully Invested
Zishitang noted that Honghu Zhiyuan’s stock position in 2025 was close to fully invested, displaying the characteristics of a typical long-only stock strategy.
As shown above, at the end of 2025, Honghu Zhiyuan’s asset scale was 58.906 billion yuan, and its equity totaled 57.44 billion yuan, meaning its stock position was as high as 97%.
This means the returns of the Honghu Fund’s portfolio are highly tied to the equity market performance. Its asset allocation is almost entirely bet on stocks, with low-volatility assets such as bonds and cash making up a minimal proportion. In such a structure, the volatility of the fund’s net value increases significantly, and its performance reflects the manager’s stock-picking ability and market judgment more directly.
Dividend Insurance Becomes the Pillar
New China Life Insurance’s first-year premiums for long-term insurance achieved clear growth in 2025.
Annual first-year premiums were approximately 57.8 billion yuan, up 48.9% year-on-year. Of this, long-term insurance first-year regular premiums were 37.2 billion yuan, an increase of 36.7% year-on-year, and regular business accounted for 64.4% of first-year premiums, with the structure increasingly tilting toward long-term coverage.
Amid continuing declines in interest rates and shrinking space for traditional rigid-income products, dividend insurance has actually become the key tool for life insurance companies to reprice their liabilities.
Its essence is to redistribute some uncertainty in returns to customers, thus freeing up room for liability cost for insurance companies, while retaining attractiveness at the sales end. Whoever can establish dividend insurance will be more capable of stabilizing scale and controlling costs in a new round of liability competition. This is no longer a matter of product choice, but a watershed in operating ability.
The annual report shows: in 2025, New China Life Insurance’s renewal premiums were about 134.2 billion yuan, working synergistically with first-year business to drive overall premium income to continued stable growth. Meanwhile, the transformation to dividend insurance achieved phased progress, with its share in regular premium business rising quarter by quarter, reaching 77% in the fourth quarter.
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