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 press conference, where the company’s management addressed key market concerns regarding new energy vehicle insurance, AI (artificial intelligence) investment plans, and bancassurance business.

In 2025, the premium income from new energy vehicle insurance for Pacific 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 attributed to the company’s early strategic layout in new energy.” Chen Hui, General Manager of Pacific Property Insurance, stated that the overall business cost of new energy vehicle insurance has significantly improved, and the new energy household 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 the Pacific Group, introduced that in recent years, the company has continuously increased its investment in artificial intelligence. According to the planned goals, the compound annual growth rate of AI investment budget will not be less than 40% over the next two years. The company will promote AI literacy among all employees and build a high-quality team of AI professionals, technical talents, and strategic personnel.

Performance press conference site Image source: Every reporter Tu Yinghao

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

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

Li Jinsong, General Manager of Pacific Life Insurance, stated that in optimizing the structure, on one hand, the company continuously promoted channel structure optimization, establishing comprehensive business cooperation relationships with all major state-owned banks and developing a channel management system more aligned with the operational mechanisms of state-owned banks. Pacific’s share among the six major state-owned banks increased by 0.3 percentage points year-on-year, while also exploring integrated development with joint-stock banks, maintaining a leading share in joint-stock banks, and achieving a more balanced overall channel structure.

On the other hand, Pacific 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 has deepened, and services such as Taibao Health, Enjoy Home Club, and Taibao Home are increasingly recognized by more banks and customers, with the usage rate of service rights increasing by 10 percentage points year-on-year.

In terms of customer tiered classification management, by 2025, the proportion of mid-tier and above clients in Pacific Life Insurance will reach 28.1%, a year-on-year increase of 5.4 percentage points. Among them, the agent channel accounted for 26.6%, a year-on-year increase of 5.1 percentage points; the bancassurance channel accounted for 41.0%, a year-on-year increase of 1.8 percentage points, with rapid growth in the number of high-net-worth and ultra-high-net-worth clients.

Regarding the tiered classification management of customers, Li Jinsong mentioned that the company has conducted detailed profile analyses of customers: firstly, more women are purchasing insurance; secondly, the average age of policyholders is increasing; thirdly, the proportion of customers from second-tier cities and above has significantly increased.

What further measures will be taken to develop customers? Li Jinsong revealed that leveraging a content factory to provide a wealth of consulting content, customized activity professional tools, and accurately matching different customer needs will effectively enhance customer stickiness; at the same time, using intelligent tools to streamline complex customer management processes such as customer inventory, needs diagnosis, product recommendations, and event invitations into executable and traceable standardized actions will lower the barriers to customer management.

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

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

“From the perspective of future operations, the trend of replacing traditional vehicles with new energy vehicles will continue. The company will further optimize costs and enhance efficiency by building a full lifecycle ecosystem,” Chen Hui stated, focusing on two aspects: firstly, in terms of operational efficiency improvement, the company will continue to optimize its pioneering online underwriting and cloud claims settlement mechanisms, creating dedicated customer management teams, which have currently covered mainstream brands in the industry; secondly, in the claims management aspect, the company implements brand-centric management, providing claim standards for major battery repairs and water-damaged vehicles to manufacturers; by directly connecting with automakers’ after-sales systems, co-developing AI loss assessment models, and leveraging a joint data laboratory to achieve practical applications of vehicle data, fundamentally reducing risk exposure and accurately lowering costs.

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, repair processes, and more.

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

Chen Hui indicated that at the beginning of 2025, Pacific Property Insurance proactively adjusted its personal credit guarantee insurance business. Since the adjustment, the insured assets and risk exposure have been decreasing monthly, and it is expected that by the end of 2026, the risks associated with personal credit guarantee insurance will be completely cleared, having a negligible impact on the overall cost of non-auto insurance in 2026.

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

Investment: Enhanced equity asset allocation ratio last year, achieving good returns

In 2025, China Pacific 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%, down 0.4 percentage points year-on-year; total investment income reached 141.634 billion yuan, a year-on-year increase of 17.6%, with a total investment yield of 5.7%, a year-on-year increase of 0.1 percentage points; 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 Financial Officer of Pacific Group, stated that in 2025, both A-shares and H-shares experienced significant increases, particularly in the technology sector. China Pacific optimized its asset allocation strategy by integrating its assessments of the macro economy and capital markets, increasing the equity asset allocation ratio, and achieving good returns.

When discussing the effective increase in the equity investment ratio in the public market, Su Gang mentioned that this move not only responds to the call for insurance funds to increase their market participation as long-term capital but also aligns with the internal requirements of the insurance group’s own asset-liability management.

Su Gang stated that the long-term core strategy of focusing on dividend value has shown significant stability and sustainability. This strategy focuses on listed companies with both high dividend distribution capacity and stable growth prospects, using these quality assets as the core of the bottom layer, which can generate cash flow in the form of dividend income, enhance net investment yield, and also share the capital returns brought by stable performance growth. At the same time, the company will continue to build a more comprehensive satellite strategy system around its core strategy, covering key areas such as technological innovation, health, and consumption.

Regarding solvency, Su Gang noted that the solvency of China Pacific Group has significantly improved in 2025, primarily relying on the continuous improvement of operational quality and efficiency of its main insurance subsidiaries, as well as the optimization of asset-liability measurement matching.

It is reported that to further optimize asset-liability matching measurement management and more comprehensively reflect the company’s operational situation, Pacific Life Insurance implemented a reclassification of fixed-income assets by 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 liabilities, and 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