SUNSHINE INS 2025 Financial Report Overview: Multiple Core Indicators Growth, Life Insurance New Business Value Increased by 48%

In the macro environment intertwined with low interest rates and asset scarcity, insurance companies' balance sheets are undergoing severe tests. Examining the 2025 report card just submitted by Sunshine Insurance, the data reflects the management's cautious balance between business growth and risk clearance.

From an overall perspective, Sunshine Insurance continues to maintain a steady expansion trend:

In 2025, the group achieved a net profit attributable to shareholders of 6.31 billion yuan, a year-on-year increase of 15.7%;

Total premium income reached a new level of 150.72 billion yuan, an increase of 17.4%;

The group's embedded value (EV), representing the company's long-term value, steadily increased by 4.3% to 120.78 billion yuan.

As the absolute performance engine of the group, Sunshine Life achieved leapfrog development in 2025.

Against the backdrop of the industry generally facing pressure on new single growth, Sunshine Life's total premium income broke through the 100 billion yuan mark for the first time, reaching 102.61 billion yuan, a substantial year-on-year increase of 27.5%.

More noteworthy is its value creation capability; during the reporting period, Sunshine Life's new business value (NBV) reached 7.64 billion yuan, with a year-on-year growth rate of 48.2%.

This strong growth is largely attributed to the explosive performance of the bancassurance channel, where new single premium income in this channel surged against the trend by 69.0%, reaching 34.09 billion yuan, during the industry's comprehensive implementation of the "reporting and operation integration" regulations.

To effectively hedge against the risk of long-term interest rate declines, Sunshine Life has defensively reshaped its product structure.

In the bancassurance new single premium income, the proportion of floating income products has increased to 32.2%, effectively reducing the rigid liability cost by transferring part of the interest rate risk from the investment side to the liability side;

Additionally, the contract service margin (CSM) balance, representing future profit release potential, reached 57.62 billion yuan, an increase of 13.3% compared to the end of the previous year, solidifying the foundation for subsequent performance certainty.

Compared to the strong momentum of life insurance, the apparent data of Sunshine Property & Casualty Insurance appears slightly pressured. However, this seems more like a strategic balance sheet optimization actively undertaken by the management.

The financial report shows that Sunshine Property & Casualty Insurance's combined ratio (COR) for underwriting in 2025 was 102.1%, recording an underwriting loss of 1.03 billion yuan.

Breaking down the sub-sectors, it can be found that the core dragging down overall profits is the guarantee insurance business, which saw its COR rise to 129.0% during the year, with a single insurance underwriting loss of as much as 1.51 billion yuan.

In the face of this long-tail risk, Sunshine Insurance has adopted a decisive clearance strategy, fully stopping the addition of new financing guarantee insurance business starting in 2026, and based on prudent principles, made a one-time provision for sufficient reserves in 2025.

This is a typical pragmatic approach to digest historical burdens using current profits. If the disturbances from guarantee insurance are excluded, Sunshine Property & Casualty Insurance's core fundamentals remain healthy.

The financial report shows that during the reporting period, the combined ratio for non-guarantee insurance business of Sunshine Property & Casualty Insurance was 98.9%, achieving an underwriting profit of 490 million yuan, with the vehicle insurance, as a ballast, maintaining a COR of 98.2%, contributing 480 million yuan in underwriting profit With high-risk businesses being concentrated and cleared within the year, the property and casualty insurance sector is expected to start fresh in 2026, ushering in a substantial release of profit elasticity.

On the investment side, Sunshine Insurance's asset allocation strategy also demonstrates a high degree of flexibility. By the end of 2025, the company's investment asset scale is expected to reach CNY 640.2 billion, a year-on-year increase of 16.7%, with total investment income for the year reaching CNY 25.23 billion, a year-on-year increase of 27.1%, and the total investment return rate rising against the trend to 4.8%.

This is mainly attributed to the management's timely realization of floating profits, with realized gains for the year reaching CNY 3.61 billion, a year-on-year increase of 78.8%.

Particularly in equity assets, the realized gains and losses have turned from a loss of CNY 1 billion in the previous year to a profit of CNY 4.2 billion, becoming an important support for the current period's profits.

While maintaining business transformation and risk clearance, Sunshine Insurance has still maintained stable shareholder returns, proposing a final dividend of CNY 0.19 per share, totaling approximately CNY 2.185 billion.

Overall, Sunshine Insurance's financial report implies a certain expectation gap. The management has fully accounted for and stripped away historical hidden risks in property and casualty insurance, leveraging the strong growth of life insurance NBV and the opportunity to realize floating profits on the investment side.

For the capital market, behind the moderate profit growth of 15.7% on the books is a substantial improvement in the underlying business quality after deep optimization. With the burden lifted, Sunshine Insurance is also expected to accumulate more momentum for its performance in 2026