Ge Long Hui·2025-09-14 04:31Core Insights - China Pacific Insurance (CPIC) reported a strong performance in its 2025 mid-year results, with revenue and net operating profit increasing by 3.0% and 7.1% year-on-year to 200.5 billion and 19.9 billion yuan respectively, while net profit rose by 11% to 27.9 billion yuan, driven by property insurance underwriting profits and group investment returns [1] Segment Analysis - In the first half of 2025, CPIC's net profit growth by segment was as follows: life insurance at 3.6%, property insurance at 18.4%, asset management at 32.2%, and other segments (mainly group headquarters) at 434.6%, contributing 72.8%, 19.9%, 2.4%, and 4.9% respectively to total net profit [1] - The comprehensive cost ratio for CPIC's property insurance decreased by 0.8 percentage points to 96.3%, attributed to stricter regulations on vehicle insurance and a focus on high-quality development in non-vehicle insurance, leading to a slowdown in premium growth for lower-margin products [1] - The solvency ratio for CPIC's life insurance business improved, reaching 215% by the end of June 2025, following two years of interest rate declines [1] Life Insurance Performance - In the first half of 2025, the new business value (NBV) for CPIC's life insurance was primarily driven by the bancassurance channel, which saw a 58.6% increase in new regular premium policies, with the channel's NBV margin improving by 2.9 percentage points to 12.4%, resulting in a 156% growth in bancassurance NBV [1] - The individual insurance channel's NBV declined by 2.5%, impacted by a decrease in commission rates for agents due to regulatory changes, despite a 12.7% increase in core manpower productivity [1] - CPIC's life insurance maintained a high growth rate of around 21% in new business CSM, benefiting from the expected yield method for participating insurance [1] Investment Business Overview - CPIC's investment strategy emphasizes a balanced approach between long-duration bonds and high-growth equity assets, with the duration of fixed-income assets extended by 0.6 years to 12 years in the first half of 2025 [1] - The total investment return and comprehensive investment return rates decreased by 0.4 and 0.6 percentage points to 2.3% and 2.4% respectively, influenced by fair value changes in TPL and OCI bonds [1] - CPIC established two new funds: the Taibao Zhanxin M&A Fund with a target size of 30 billion yuan and the Taibao Zhiyuan Private Securities Investment Fund with a target size of 20 billion yuan, focusing on alternative investments and long-term investment trials for insurance funds [1]