China Pacific Insurance (Group) Co., Ltd. (CPIC) has released the fourth-quarter 2025 solvency summary for its 67.78%-owned subsidiary, Pacific Anxin Agricultural Insurance Co., Ltd., highlighting a solid capital buffer, stable liquidity and steady premium growth.
Solvency Position • Comprehensive solvency margin ratio stood at 346.93%, up 9.73 percentage points from Q3 2025; the core ratio rose to 319.32%. • Actual capital totalled CNY 3.18 billion, comfortably above the minimum capital requirement of CNY 0.92 billion. • Minimum capital declined by CNY 47 million quarter-on-quarter, driven mainly by lower insurance and credit risk charges following reductions in outstanding claims reserves and reinsurance receivables.
Liquidity Metrics • Liquidity coverage ratios remained above regulatory thresholds: LCR1 (base scenario) reached 126.5% for the next 12 months, while LCR2 (stress scenario) was 140.4%. • Net cash flow for 2025 was CNY 22 million; operating cash outflow of CNY 150 million was offset by investment inflows of CNY 286 million. • The retrospective adverse deviation ratio of operating cash flows was 182.9%, indicating conservative cash-flow projections.
Operating Performance • Gross written premiums for 2025 totalled CNY 2.57 billion; written premiums grew 2.8% year-on-year in Q4 and 4.2% for the full year. • The company reported a full-year net profit of CNY 179.51 million, although Q4 recorded a net loss of CNY 30.77 million. • Return on equity was 5.8%, with a combined ratio of 99.9%, underpinned by a 77.8% loss ratio and 22.1% expense ratio. • Investment yield reached 2.4%, while the comprehensive investment yield was 4.6%; the three-year average comprehensive yield stood at 3.67%.
Risk Management and Ratings • Pacific Anxin is classified as a Category II insurer under China’s C-ROSS II framework. • The subsidiary achieved an on-site SARMRA score of 75.47, and its 2025 self-assessment rose to 92.95, reflecting ongoing enhancements in risk governance. • The National Financial Regulatory Administration awarded the company an “AA” integrated risk rating for both Q2 and Q3 2025.
Management Initiatives During the quarter the insurer: 1. Rolled out the “Baton” online claims platform and updated catastrophe response protocols. 2. Strengthened asset-liability management, credit monitoring and reinsurance recovery processes. 3. Completed annual IT disaster-recovery drills and integrated anti-money-laundering data systems.
The board affirms that the report is accurate, complete and compliant with all regulatory requirements.