The "good start" effect is beginning to show, as the latest premium announcements from CPIC and New China Life indicate steady growth.
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Premium income of insurance companies continues to grow at a high rate.
On January 20, China Pacific Insurance (CPIC) released its latest premium income report. According to the report, in the full year of 2025, the two core subsidiaries under the CPIC Group achieved a total original insurance premium income of RMB 461.676 billion, maintaining a steady growth overall.
Among them, CPIC Life Insurance accumulated original insurance premium income of RMB 258.115 billion, a year-on-year increase of 8.1%; CPIC Property Insurance accumulated original insurance premium income of RMB 203.561 billion, a year-on-year increase of 0.2%.
Previously, on January 14, New China Life Insurance announced its premium income for the full year of 2025, with cumulative original insurance premium income reaching RMB 195.89859 billion, up 15% year-on-year. The business development also shows a steady growth similar to CPIC.
On January 19, there was more good news, as China Taiping released the first performance forecast for listed insurance companies for 2025. In its forecast, the company stated that net profit for 2025 is expected to grow significantly by 215-225% year-on-year. The forecast also noted that the main reasons for the performance growth are improved net investment results and the one-time effect of new tax policies by the tax authorities for the insurance industry.
Overall, insurance institutions entering the "open door red" period at the end of the year and the beginning of the new year are embracing a rather remarkable full-year finish for 2025.
Strong Performance in Life Insurance Premiums
According to the announcement, CPIC Life Insurance's annual premium income exceeded RMB 258 billion, a year-on-year growth of 8.1%, which is significantly higher than the growth rate of property insurance business and has become the main driving force for the Group’s premium growth. This level of growth stands out, especially under industry pressure, demonstrating CPIC’s core competitive advantage in the life insurance sector.
Meanwhile, it is also quite remarkable that CPIC Property Insurance achieved positive growth. The latest full-year premium announcement shows the overall growth rate remained positive. In the context of deepening auto insurance reform and intensifying market competition, maintaining stable scale is no easy feat.
The previously announced premium income of New China Life Insurance also confirms the favorable trend in life insurance. As a state-owned insurance institution with a smaller business scale than CPIC and mainly focused on life insurance business, New China Life Insurance’s accumulated original insurance premium income achieved double-digit growth.
Channel Structure Shows Divergence
CPIC’s latest premium income announcement revealed many valuable insights.
Analyzed by channel, bancassurance performed impressively. The announcement shows that CPIC’s bancassurance premium income reached RMB 56.528 billion, a substantial year-on-year increase of 42.0%, making it the fastest-growing business channel.
Specifically, new business in CPIC’s bancassurance channel grew by 30.6% year-on-year, and renewal business surged by 66.2%, with renewal business accounting for 37.6%, indicating a significant improvement in client retention in the bancassurance channel.
By comparison, the traditional insurance agent channel, which commands a large existing scale, also performed well in overcoming challenges. Relevant data shows premium income from the agent channel was RMB 182.751 billion, a slight year-on-year decrease of 0.7%, basically flat. Among these, regular payment for new policies faced particular challenges.
In addition, other distribution channels saw strong growth. The announcement shows that the group and government business channel of CPIC grew by 9.0%, with new business rising by 4.8%. Other channels surged by 154.7%, demonstrating the company’s breakthrough in developing emerging channels.
Business Structure Optimization
Focusing on property insurance, CPIC Property Insurance had full-year premium income of RMB 203.561 billion, a year-on-year increase of 0.2%, essentially flat. In the context of deepening car insurance reform and intensifying market competition, maintaining stable scale is truly noteworthy.
Specifically, motor vehicle insurance business remained resilient, with motor vehicle insurance premium income reaching RMB 110.511 billion, up 3.0% year-on-year and accounting for 54.3% of total property insurance premiums, continuing to serve as the cornerstone.
Non-auto insurance business faced some pressure, with non-motor vehicle insurance premium income at RMB 93.050 billion, down 3.0% year-on-year, reflecting intense competition and real challenges in the non-auto insurance market.
Significant Scale Effect
It is worth noting that the Chinese insurance market on the one hand demonstrates vast untapped potential; on the other hand, it also reveals a significant scale effect.
In the insurance market, large institutions are increasingly able to provide more comprehensive, well-managed services and competitive prices, thereby gaining greater market share.
The latest published structure of premium income at CPIC, New China Life, etc., proves this point.
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