New China Life Pension 2025 Year-End Review: Solvency Improved, Bancassurance Channel Stable

In 2025, as the persistent low interest rate environment continued to squeeze the profit margins of the insurance industry, Xinhua Pension Insurance, as a specialized pension insurance company, delivered an "impressive" solvency report.

By the end of the fourth quarter of 2025, Xinhua Pension's core solvency adequacy ratio had reached as high as 993.78%, and its comprehensive solvency adequacy ratio reached 1023.95%;

Compared with the third quarter, the two indicators had increased by 46.44 and 53.35 percentage points respectively.

The improvement in Xinhua Pension's solvency did not stem from injections of capital by shareholders.

The management of Xinhua Pension frankly stated in the report that the increase in actual capital of 318 million yuan mainly came from "net assets and future surplus of policies". Meanwhile, as the company expanded its business, the minimum capital only saw a slight increase of 3.72 million yuan.

It is worth noting that in the fourth quarter of 2025, the net cash flow retrospective adverse deviation rate of Xinhua Pension's operating activities soared from 1.96% in the previous quarter to 291.03%;

Combined with the company's scale premium annual growth rate as high as 151.99%, this huge deviation reflects that the company may have adopted a rather aggressive customer acquisition strategy;

Such a strategy could bring far greater than expected cash inflows, but it also exposes that its control over business pace is still lacking in precision.

On the investment side, Xinhua Pension showed relative caution. In 2025, its cumulative investment return rate was 3.50%, outperforming the three-year average of 2.65%;

By the end of the fourth quarter, the proportion of cash and liquidity management instruments soared from 0.64% to 9.77%, reflecting management's heightened vigilance regarding market volatility in 2026. By substantially increasing the cash ratio, the company not only locked in 2025 profits, but also laid ample ammunition to cope with potential policy surrender risks in the coming year.

Channel structure, meanwhile, exhibits a clear "double-edged sword" effect.

In 2025, out of Xinhua Pension's 2.198 billion yuan signed premium, the bancassurance channel contributed 1.682 billion yuan, stabilizing the fundamental base; however, the internet channel contributed 503 million yuan, while also bringing significant volatility risks.

Take "Xinhua Pension Fu Manying Plan B (Internet)" as an example: its quarterly policy surrender rate reached as high as 14.52%. Although internet products attract customers quickly, customer loyalty is extremely low, resulting in the company's overall comprehensive surrender rate still at a low 0.63%, but the upward trend has become difficult to ignore.

Overall, Xinhua Pension demonstrated strong capital self-repair capability in 2025. However, the 291% cash flow retrospective deviation and surrender volatility from the internet channel also indicate that this company remains in a transition period.

How to digest this enormous liquidity asset and convert it into a long-term income anchor may become the core proposition for Xinhua Pension in 2026.

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