Xinhua Insurance unveils its interim report, revealing a 150% increase in investment income in the first half of the year.

New China Life Insurance, a leading domestic insurance company, recently released its semi-annual report.

According to the interim report of New China Life Insurance in 2026, the company achieved operating revenue of RMB 83.258 billion, an increase of 18.9% year-on-year; and net profit attributable to shareholders of the parent company of RMB 22.793 billion, an increase of 54.0% year-on-year.

In addition, the company achieved insurance service revenue of RMB 26.442 billion, interest income of RMB 14.575 billion, and investment income of RMB 46.856 billion during the reporting period, representing a year-on-year increase of 149.7% in investment income. As of the end of the reporting period, the company's total assets were RMB 1,958.077 billion, an increase of 3.1% compared to the end of the previous year.

Premium income was 129.57 billion yuan.

In terms of premium income, the company achieved original insurance premium income of RMB 129.57 billion during the reporting period, a year-on-year increase of 6.9%; and new business value of RMB 6.916 billion in the first half of the year, a year-on-year increase of 11.9%.

In terms of products, the company vigorously developed participating insurance products in the first half of the year and increased the supply of diversified pension and wealth management products, covering a variety of product types such as long-term annuities, whole life insurance, and endowment insurance; at the same time, it continued to enrich its health protection product portfolio, effectively covering various groups. In addition, the company continued to improve its inclusive insurance product system, covering nearly 50 exclusive products for specific groups such as the elderly and children, women, new urban residents, and students and children.

Annualized total investment return rate: 6.7%

Regarding insurance fund investments, the company's annualized total investment return rate was 6.7% during the reporting period, an increase of 0.8 percentage points year-on-year. During the reporting period, the company achieved investment income of RMB 46.856 billion, a year-on-year increase of 149.7%, which was one of the main drivers of net profit growth.

Among them, the company derecognized RMB 7.803 billion in gains from financial assets measured at amortized cost and RMB 1.711 billion in investment income from associates and joint ventures.

In addition, the company's financial statements show that Honghu Zhiyuan Private Equity, in which the company holds a 50% stake, had a long-term equity investment value of RMB 26.995 billion as of June 30, which is a decrease from RMB 28.72 billion at the beginning of the year. This also reflects Honghu Zhiyuan's asset investment situation over the past six months.

The overall solvency adequacy ratio is 195.74%.

Regarding solvency, as of the end of the reporting period, the company's core solvency adequacy ratio was 126.21%, and its comprehensive solvency adequacy ratio was 195.74%, meeting regulatory requirements. According to the solvency regulatory information system of the State Financial Supervision and Administration Bureau, the company's comprehensive risk rating for the first quarter of 2026 was BBB.

The announcement stated that the company will improve its solvency by means of shareholder capital increases, issuance of subordinated bonds and capital replenishment bonds, reinsurance arrangements, optimization of business structure, and building a cost-competitive system.

In terms of embedded value, as of the end of the reporting period, the company's embedded value was RMB 310.384 billion, an increase of 7.8% compared to the end of the previous year. In terms of asset size, the company's total assets were RMB 1,958.077 billion, an increase of 3.1% compared to the end of the previous year.

Interim dividend of RMB 0.73 per 10 shares.

Regarding dividends, according to the interim profit distribution proposal for 2026 approved by the Board of Directors on August 26, 2026, the company plans to distribute an interim cash dividend of RMB 2.277 billion to all shareholders, amounting to RMB 0.73 per share (inclusive of tax) based on issued shares. The aforementioned interim profit distribution proposal is subject to shareholder approval.

Overall, New China Life Insurance achieved rapid growth in revenue and net profit in the first half of 2026, with premium income and new business value maintaining steady growth and investment returns significantly improving. However, the performance of its affiliated private equity firm, Honghu, was relatively average. Nevertheless, this does not change the company's characteristics of sufficient solvency and relatively stable embedded value.

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