Sou Hu Cai Jing·2026-02-27 02:46Core Viewpoint - BYD's insurance subsidiary has achieved profitability in 2025, contrary to market expectations of a longer cultivation period after its acquisition of 100% of Yi'an Insurance in May 2023 [6]. Financial Performance - In 2025, BYD Insurance reported insurance business revenue of 2.871 billion yuan, a year-on-year increase of 112.56%, and a net profit of 93.62 million yuan, recovering from a net loss of 169 million yuan in 2024 [7]. - The comprehensive cost ratio for BYD Insurance in 2025 was 102.49%, significantly reduced from 308.81% in 2024 [8]. - The comprehensive investment return rate for BYD Insurance in 2025 was 3.98%, up from 2.41% in the previous year [10]. Operational Efficiency - BYD Insurance achieved a direct sales channel for its insurance products, with direct sales premiums amounting to 2.897 billion yuan in 2025, and an average premium per vehicle of 4,054.53 yuan, down from 4,500 yuan in 2024 [9]. Challenges Ahead - Despite returning to profitability in 2025, BYD Insurance faces challenges such as pressure from underwriting losses, as the overall cost ratio remains above 100%, indicating ongoing core insurance business losses [11]. - The comprehensive solvency adequacy ratio decreased to 589.95% by the end of Q4 2025, down 66.60 percentage points from the previous quarter [11]. - There are risks associated with related-party transactions, as BYD Insurance has engaged in significant transactions with BYD Auto, with 13 major related-party transactions recorded in 2025 [11].