Zheshang Property Insurance net profit surges 2.6 times: underwriting capacity turns profitable, premium scale under pressure
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After lying dormant for a long time, Zheshang Property & Casualty Insurance has finally delivered an eye-catching "report card" for 2025.
On January 27, Zheshang Property & Casualty Insurance disclosed its fourth quarter Solvency Report for 2025, revealing a full-year net profit of 151 million yuan, a year-on-year increase of 266.6% compared to 41.31 million yuan in 2024.
The jump in profit size may suggest that this local state-owned insurance company headquartered in Zhejiang is undergoing a substantial transition from "scale-oriented" to "efficiency-oriented".
Behind the performance growth, improvements on the underwriting side have played a crucial role.
In 2025, Zheshang Property & Casualty Insurance's combined cost ratio was 99.66%, successfully controlled below the 100% breakeven point. In 2024, this indicator was 104.67%, indicating the underwriting side was still in a loss state at that time.
To achieve underwriting profitability, Zheshang Property & Casualty Insurance appears to have paid the price of "contraction":
In 2025, the company's insurance business income reached 3.791 billion yuan, slightly down from 3.857 billion yuan in 2024;
The year-on-year growth rate of premium scale in Q4 2025 was -1.57%, whereas it was a positive 5.91% in the same period of 2024.
Between "getting bigger" and "getting stronger," management chose the latter, proactively reducing low-quality business and optimizing its business structure to gain profit margin.
In addition to efforts on underwriting, stable performance on the investment side also supported net profit.
Against the backdrop of declining market interest rates, Zheshang Property & Casualty Insurance's financial investment yield for 2025 was 4.57%, an increase of 0.23 percentage points from 4.34% in 2024, and its comprehensive investment yield rose from 4.47% in 2024 to 5.18%.
Benefiting from retained profits and the contraction of risk exposure, Zheshang Property & Casualty Insurance's solvency cushion further thickened.
As of the end of 2025, the company's core and comprehensive solvency adequacy ratios were both 215.29%, up significantly from 201.82% at the end of 2024, and far above the regulatory red line.
It is worth mentioning that Zheshang Property & Casualty Insurance's senior management appointments have also been settled recently.
The report shows that Jiang Zhaohui has become Chairman and Party Secretary of the company. Previously, he had served as acting head, General Manager, and Chief Investment Officer.
Jiang Zhaohui has a regulatory background and extensive experience in the financial industry, having worked at the Zhejiang office of the China Banking Regulatory Commission, Zheshang Securities, and other institutions.
With the "helmsman" confirmed, the strategic direction of Zheshang Property & Casualty Insurance may become more consistent.
However, for Zheshang Property & Casualty Insurance, mere “stopping the bleeding” is not the end. Amid deepening reform in auto insurance and intensifying competition in non-auto insurance, how to find new growth momentum while maintaining underwriting profitability will be the main challenge facing management in 2026.
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