Live Performance Meeting | China Pacific Property & Casualty Insurance General Manager Chen Hui: New energy household vehicle business has entered a stable profit zone

Every reporter | Tu Yinghao Every editor | Zhang Yiming

On March 27, China Pacific Insurance held its 2025 annual performance briefing, where the company’s management responded to hot topics of market concern, including new energy vehicle insurance, AI (artificial intelligence) investment plans, and bancassurance business.

In 2025, the premium income from new energy vehicle insurance for CPIC Property Insurance reached 25.017 billion yuan, accounting for 22.6% of the overall auto insurance business, an increase of 5.6 percentage points year-on-year.

“This is attributable to the company’s overall strategic layout in new energy in the early stages.” Chen Hui, General Manager of CPIC Property Insurance, stated that the overall business cost of new energy vehicle insurance has significantly improved, and the new energy passenger vehicle business has entered a stable profit zone.

“AI+” is one of the three major strategies of China Pacific Insurance. Yu Bin, Vice President of CPIC Group, introduced that in recent years, CPIC has continuously increased its investment in artificial intelligence. According to the planned targets, the compound growth rate of AI investment budget in the next two years will not be less than 40%. The company will promote AI literacy among all employees and develop a high-quality team of AI professionals, technical talents, and strategic talents.

Performance briefing site image source: Every reporter Tu Yinghao photo

Bancassurance: Market share in the six major state-owned banks increased by 0.3 percentage points year-on-year

In 2025, CPIC Life’s bancassurance channel achieved a scale premium of 61.618 billion yuan, a year-on-year increase of 46.4%, of which new policy regular premium scale was 16.956 billion yuan, a year-on-year increase of 43.2%.

Li Jinsong, General Manager of CPIC Life, stated that in optimizing the structure, on one hand, it continuously promotes channel structure optimization, establishing comprehensive business cooperation relationships with all major state-owned banks, and creating a channel management system that better matches the operational mechanisms of state-owned banks. CPIC’s share in the six major state-owned banks increased by 0.3 percentage points year-on-year, while exploring integrated development with joint-stock banks, maintaining a leading position in joint-stock bank share, resulting in a more balanced overall channel structure.

On the other hand, CPIC will accelerate the optimization of product structure, gradually increasing the five-year regular premium business, and diversifying product categories. The integrated operation of property and service is becoming deeper, and services such as CPIC Health, Enjoy Family Club, and CPIC Home are receiving more recognition from banks and customers, with service rights usage rate increasing by 10 percentage points year-on-year.

In terms of customer tiered management, by 2025, the proportion of CPIC Life’s mid-tier and above customers will be 28.1%, an increase of 5.4 percentage points year-on-year. Among them, the proportion of the agent channel is 26.6%, an increase of 5.1 percentage points year-on-year; the bancassurance channel accounts for 41.0%, an increase of 1.8 percentage points year-on-year, with rapid growth in both high-end and ultra-high-end customer numbers.

Regarding tiered customer management, Li Jinsong stated that the company has conducted detailed profiling analysis of customers: first, more women are purchasing insurance; second, the age of insured individuals is higher; third, there is a significant increase in the proportion of customers from second-tier and above cities.

What further measures will be taken to further develop customers? Li Jinsong revealed that by relying on a content factory to provide massive consultation content, customized activity professional tools will be created to accurately match different customer needs and effectively enhance customer stickiness; at the same time, using intelligent tools, complex customer management processes such as customer inventory, demand diagnosis, product recommendation, and activity invitation will be transformed into executable and traceable standardized actions, lowering the threshold for customer management.

Property Insurance: Expected to clear all risks of personal credit guarantee insurance by the end of 2026

According to annual report data, in 2025, CPIC Property Insurance’s premium income from new energy vehicle insurance reached 25.017 billion yuan, providing coverage for over 6.3 million new energy vehicles.

“From the perspective of future operations, the trend of replacement by new energy vehicles will continue. The company will further optimize costs and improve efficiency by building an ecosystem for the entire lifecycle.” Chen Hui stated that the focus is on two aspects: first, in terms of operational efficiency improvement, the company will continue to optimize its innovative online underwriting and cloud claims settlement mechanism, creating dedicated customer management teams that currently cover mainstream brands in the industry; second, in claims management, the company implements brand-centered management, providing standards for large battery maintenance and water-damaged vehicle handling to manufacturers; by directly connecting with auto manufacturers’ after-sales systems, co-building AI damage assessment models, and relying on joint data laboratories to realize the application of vehicle data, fundamentally achieving risk reduction and precise cost reduction.

In addition, in terms of ecosystem construction, the company continues to enrich quality assurance and exclusive products for charging scenarios, deeply participating in the formulation of national industry standards for battery thermal runaway and maintenance processes.

Due to the proactive adjustment of business structure, in 2025, CPIC Property Insurance’s original premium income from personal credit guarantee insurance was -1.691 billion yuan, a reduction of 5.521 billion yuan compared to the previous year, with a significant narrowing of risk exposure. Excluding the impact of personal credit guarantee insurance, the comprehensive cost ratio for non-auto insurance underwriting was 97.0%, a year-on-year decrease of 2.1 percentage points.

Chen Hui stated that at the beginning of 2025, CPIC Property Insurance proactively adjusted its personal credit guarantee insurance business. Since the adjustment, the insured assets and risk exposures have been decreasing month by month, and it is expected that by the end of 2026, all risks of personal credit guarantee insurance will be cleared, which will have a minimal overall cost impact on non-auto insurance in 2026.

Regarding the implementation of “reporting and operation integration” for non-auto insurance, Chen Hui stated that CPIC Property Insurance has completed the filing and system optimization of related insurance products, and will take the opportunity of industry comprehensive governance to strictly implement filing clauses and regulations, continuously improving the rate retroactive and dynamic adjustment mechanism. As of February 2026, the company’s expense ratio has decreased. From a medium to long-term perspective, comprehensive governance is conducive to improving the market environment, optimizing the cost-effectiveness of non-auto insurance, and promoting the transformation of non-auto insurance operations from being expense-driven to a high-quality model driven by technology and services.

Investment: Increased the proportion of equity asset allocation last year, achieving good returns

In 2025, China Pacific Insurance achieved a net investment income of 85.199 billion yuan, a year-on-year increase of 2.9%, with a net investment yield of 3.4%, a decrease of 0.4 percentage points year-on-year; total investment income was 141.634 billion yuan, a year-on-year increase of 17.6%, with a total investment yield of 5.7%, an increase of 0.1 percentage points year-on-year; the comprehensive investment yield was 6.1%, a year-on-year increase of 0.1 percentage points.

Su Gang, Vice President, Chief Investment Officer, and Finance Head of CPIC Group, stated that in 2025, both A-shares and H-shares rose significantly, especially the technology sector performed outstandingly. China Pacific Insurance optimized its asset allocation strategy and increased the proportion of equity asset allocation, achieving good returns based on its assessment of the macro economy and capital markets.

Regarding the effective increase of the proportion of equity investments in the public market, Su Gang stated that this move responds to the call for insurance funds, as long-term capital, to increase their market entry efforts; it is also an inherent requirement of the insurance group’s own asset-liability management.

Su Gang stated that the core strategy of CPIC’s long-term adherence to dividend value has shown significant stability and sustainability. This strategy focuses on publicly listed companies with both high dividend distribution capacity and stable growth prospects, using such high-quality assets as the core of its base, which can obtain cash flow in the form of dividend income, enhance net investment yields, and share capital returns resulting from stable performance growth. At the same time, it will continue to build a more comprehensive satellite strategy system around its core strategy, covering key areas such as technological innovation, health care, and consumer goods.

Discussing solvency, Su Gang noted that CPIC Group’s solvency significantly improved in 2025, primarily relying on the continuous improvement of the operating quality and efficiency of major insurance subsidiaries and the optimization of asset-liability measurement matching.

It is reported that in order to further optimize asset-liability matching measurement management and more comprehensively reflect the company’s operating conditions, CPIC Life implemented a reclassification of fixed income assets at the end of 2025, reclassifying financial assets originally classified as held-to-maturity to available-for-sale financial assets, effectively hedging the impact of market interest rate fluctuations on the liability side, thus more accurately reflecting the company’s solvency, which is also a common practice in the industry in recent years.

Cover image source: Every reporter Tu Yinghao photo