According to Zhitong Finance APP, Huachuang Securities released a research report stating that from January to July 2025, the insurance industry achieved original premium income of RMB 4,208.5 billion, up 6.8% year-on-year and 1.5pct month-on-month. Among these, personal insurance (including health and accident insurance from property insurance companies) totaled RMB 3,323.0 billion in premiums, up 7.6% year-on-year; property insurance premiums reached RMB 888.3 billion, up 4% year-on-year. Life insurance growth continues to expand, supporting accelerated premium growth across the industry. Non-auto insurance cumulative premiums from January to July increased 5.8% year-on-year, up 0.1pct month-on-month. Cumulative premium growth rates by insurance segment were: accident insurance +13% (up 0.6pct month-on-month), health insurance +10.1% (up 1pct month-on-month), liability insurance +3.8% (up 0.2pct month-on-month), and agricultural insurance +3.2% (up 0.6pct month-on-month).

Huachuang Securities' main viewpoints are as follows:

Industry Overview: Life Insurance Continues to Support Accelerated Industry Growth

From January to July 2025, the insurance industry achieved original premium income of RMB 4,208.5 billion, up 6.8% year-on-year and 1.5pct month-on-month. Among these, personal insurance (including health and accident insurance from property insurance companies) totaled RMB 3,323.0 billion in premiums, up 7.6% year-on-year; property insurance premiums reached RMB 888.3 billion, up 4% year-on-year. Life insurance growth continues to expand, supporting accelerated premium growth across the industry.

From January to July, life insurance premiums reached RMB 2,576.1 billion, up 9.1% year-on-year cumulatively and 2.5pct month-on-month; both health insurance and accident insurance achieved growth, with health insurance at RMB 686.2 billion (up 2.4% year-on-year) and accident insurance at RMB 58.1 billion (up 3.9% year-on-year).

Regarding compensation, cumulative compensation expenditure from January to July was RMB 1,514.0 billion, accounting for 36% of original premium income, flat month-on-month. Personal insurance compensation ratio decreased slightly (-0.8pct to 29.7%), while property insurance increased (+2pct to 59.2%).

Personal Insurance Companies: "Rush to Buy Before Suspension" Trend Expected to Continue, Rising Equity Market Prosperity May Benefit Product Transformation

From January to July 2025, personal insurance companies achieved original premium income of RMB 3,115.3 billion, up 7.3% year-on-year. Among these, life insurance was up 9.1% year-on-year, health insurance remained flat, and accident insurance declined 6.6% year-on-year.

Life insurance continues to expand, with significant monthly premium growth rates. July life insurance increased 33.5% year-on-year to RMB 288.5 billion, up 12.5pct month-on-month, mainly driven by the anticipated reduction in predetermined interest rates. The high premium growth trend is expected to continue through August, while sales starting in September may be affected by demand overdraft in the short term.

From January to July 2025, investment-linked premiums mainly consisting of universal insurance decreased 1.2% year-on-year cumulatively, with the decline continuing to narrow (-1.8pct month-on-month). July alone saw a 20.9% year-on-year increase; unit-linked insurance independent accounts achieved 25% year-on-year growth in July alone. Floating return products demonstrate more convincing rates in the context of active equity market trading, benefiting product transformation. The asymmetric reduction in predetermined interest rates is expected to further benefit dividend insurance transformation after implementation.

Property Insurance Companies: Major Non-Auto Insurance Segments Show Improved Growth Rates

From January to July 2025, property insurance companies achieved original premium income of RMB 1,093.3 billion, up 5.1% year-on-year, with growth rates remaining flat month-on-month. Among these, auto insurance accounts for 48%, health insurance 16%, agricultural insurance 11%, liability insurance 8%, and accident insurance 3%.

Auto insurance cumulative premiums from January to July reached RMB 524.3 billion, up 4.4% year-on-year and down 0.1pct month-on-month. July automobile sales were 2.59 million units, up 14.7% year-on-year and 0.9pct month-on-month; new energy vehicle sales in July were 1.26 million units, up 27.4% year-on-year and 0.7pct month-on-month, continuing to contribute incremental growth.

Non-auto insurance cumulative premiums from January to July increased 5.8% year-on-year, up 0.1pct month-on-month. Cumulative premium growth rates by insurance segment were: accident insurance +13% (up 0.6pct month-on-month), health insurance +10.1% (up 1pct month-on-month), liability insurance +3.8% (up 0.2pct month-on-month), and agricultural insurance +3.2% (up 0.6pct month-on-month).

Asset Changes

As of the end of July 2025, total insurance industry assets reached RMB 39.59 trillion, up 10.3% from year-end, with both asset and liability sides expected to contribute. Among these, personal insurance companies totaled RMB 34.69 trillion, up 9.9% from year-end; property insurance companies RMB 3.17 trillion, up 9.1% from year-end; reinsurance companies RMB 851.6 billion, up 2.9% from year-end; insurance asset management companies RMB 134.9 billion, up 5.6% from year-end.

As of the end of July 2025, insurance industry net assets reached RMB 3.84 trillion, up 15.5% from year-end.

Investment Recommendations

Benefiting from anticipated predetermined interest rate adjustments, life insurance sales prosperity continues to rise, expected to extend through August. Full-year growth rates may decline somewhat but are expected to maintain mid-to-high single-digit levels. Continued predetermined interest rate adjustments are expected to gradually dilute existing burdens through new policy costs, with improved liability-side operating quality potentially constituting one reason for valuation recovery in personal insurance targets.

Property insurance growth mainly relies on non-auto insurance momentum, with stable auto insurance growth. New energy vehicles are expected to gradually replace traditional fuel vehicles, bringing transformation to the auto insurance sector. Market focus remains on the profitability of new energy vehicle insurance. Traditional fuel vehicle insurance operating experience can assist new energy vehicle insurance in improving combined ratios during data accumulation, while factors such as increased proportion of older vehicles and accumulated driving habits also drive profit improvement. Regulatory authorities continue to monitor whether autonomous pricing coefficients will be further liberalized.

Target recommendations include CPIC (02601), CHINA LIFE (02628), PING AN (02318), and PICC GROUP (01339).

Risk Warnings

Policy changes, intensified natural disasters, continued decline in long-term interest rates, and equity market volatility.