

Core Viewpoint - The report highlights the performance of the top seven listed property insurance companies in the first half of 2025, emphasizing the impact of the new insurance contract standards (IF17) on profitability metrics and the significant growth in net profits across the sector [1][18]. Group 1: Overall Performance - The total premium income of the seven listed property insurance companies reached 697.8 billion yuan, reflecting a year-on-year growth of 4.3% [12]. - The combined net profit of these companies amounted to 43.66 billion yuan, representing a substantial increase of 27.2% year-on-year [13][14]. - China Life Insurance's net profit was 25.05 billion yuan, marking a 39.0% increase and accounting for 57.4% of the total net profit of the seven companies [3][14]. Group 2: Profitability Metrics - The average Return on Equity (ROE) for the seven companies was 7.7%, an increase of 0.9 percentage points compared to the previous year [16]. - The highest ROE was recorded by China Pacific Insurance at 9.0%, while the lowest was by Sunshine Insurance at 3.9% [3][16]. - The average combined cost ratio for the seven companies improved to 4.3%, up by 1.7 percentage points year-on-year [18][21]. Group 3: Profitability Drivers - The report analyzes profitability through a dual-driver model, breaking down ROE into underwriting ROE and investment ROE [7][10]. - The underwriting profit margin for the seven companies averaged 4.3%, with China Pacific Insurance leading at 4.8% [21][34]. - The average investment return rate (non-annualized) was 2.1%, with China Life Insurance achieving the highest rate at 2.6% [21][34]. Group 4: Leverage Metrics - The average insurance service income leverage for the seven companies was 1.0, with China Pacific Insurance having the highest leverage at 1.6 [24][25]. - The average investment leverage was 2.7, with China Pacific Insurance again leading at 4.2 [25][27]. - The report indicates that higher service income leverage and underwriting profit margins contribute to better performance in underwriting ROE for China Pacific Insurance [35].