FINANCE

Analysis: The Equity Bet Behind China’s Insurance Profit Surge

Published: Apr. 9, 2026 6:39 p.m. GMT+8

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Listed insurers’ strong earnings mask a growing dependence on stocks, which is now being tested as markets turn volatile.

Chinese listed insurance companies’ move to put more money into stocks in 2025 paid off with strong profits, but that bold bet is beginning to look like more of a gamble as the market turns volatile.

Eight major listed insurers — including Ping An Insurance (Group) Co. of China Ltd. (601318.SH), China Life Insurance Co. Ltd. (601628.SH) and New China Life Insurance Co. Ltd. (601336.SH) — reported their combined net profits jumped 26.6% to 457.5 billion yuan ($64 billion) last year, driven by investment returns supercharged by a stock market rally.

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Eight major Chinese insurers' net profits rose 26.6% to 457.5B yuan ($64B) in 2025, driven by stock rally.
Industry stock/fund holdings up 38.9% to 5.7T yuan (>15% of assets); Ping An to 1.24T yuan (19.2%), China Life to 1.25T yuan (16.9%).
2026 volatility threatens smaller insurers' solvency; large firms cushioned, plan continued equity exposure.

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Who’s Who

Ping An Insurance (Group) Co. of China Ltd.: Ping An Insurance (Group) Co. of China Ltd. (601318.SH) more than doubled stock and equity fund holdings to 1.24 trillion yuan (19.2% of total investment assets). OCI stocks (56.5% of equity assets) generated >90 billion yuan in unrealized pretax gains, boosting balance sheet but not net profit. Part of eight insurers' 26.6% profit rise to 457.5 billion yuan.

China Life Insurance Co. Ltd.: China Life Insurance Co. Ltd. (601628.SH) boosted stock and fund allocations (excl. money market funds) from ~12.2% to 16.9% of assets, reaching 1.25 trillion yuan. It achieved a 6.1% total investment return and 44.1% net profit growth in 2025. Solvency remains strong; plans to increase OCI allocations in 2026. (58 words)

New China Life Insurance Co. Ltd.: New China Life Insurance Co. Ltd. (601336.SH) was among eight major listed insurers whose combined net profits rose 26.6% to 457.5 billion yuan in 2025, fueled by stock investments. It led with a 6.6% total investment return and 38.3% net profit growth.

AI generated, for reference only