Since the beginning of this year, China United Property Insurance Co., Ltd. (hereinafter referred to as China United P&C) has been consecutively penalized. As of January 26, the company had received a total of 9 regulatory fines, amounting to over 1.2 million yuan in penalties, which is highly notable.

On January 30, China United P&C released its fourth-quarter report. The premium income for Q4 2025 was 13.1 billion yuan, a decrease of approximately 2 billion yuan compared to the third quarter. The net profit was -176 million yuan, a reduction of about 520 million yuan from the 344 million yuan profit in Q3. The cumulative annual insurance business income reached 70.65 billion yuan, with a net profit of 990 million yuan.

According to the 2025 annual claims settlement report released by China United P&C, the company handled a total of 20.053 million claims, with payouts amounting to 47.65 billion yuan, serving over 18 million customers. Among these, auto insurance and agricultural insurance had the highest payout scales. Auto insurance involved approximately 3.779 million claims, with total payouts of about 21.22 billion yuan; agricultural insurance involved about 1.171 million claims, with total payouts of approximately 14.31 billion yuan.

Total assets decreased by 7.9 billion yuan in the fourth quarter, and net profit turned negative.

Information shows that China United P&C was established in 2006 with a registered capital of 14.64 billion yuan. It is the only state-controlled insurance company in China bearing the "China" name. Its business scope covers all areas of non-life insurance, and the company currently operates over 10,000 insurance product clauses, including motor vehicle insurance, corporate and household property insurance, and agricultural insurance.

As a leading domestic property and casualty insurance company, China United P&C has consistently ranked at the forefront of the industry in terms of business scale. In 2024, its premium scale ranked fifth in the P&C insurance market, its agricultural insurance business scale was among the top nationally, and its policy-based health insurance business ranked third in the P&C insurance market.

As of the fourth quarter of 2025, China United P&C's total assets reached 83.471 billion yuan, but this represented a decrease of about 7.9 billion yuan compared to the previous quarter. The Q4 2025 premium income was 13.1 billion yuan, down approximately 2 billion yuan from Q3. The net profit was -176 million yuan, a reduction of about 520 million yuan from the 344 million yuan profit in Q3. The cumulative annual insurance business income was 70.65 billion yuan, with a net profit of 990 million yuan.

On December 30, 2025, our company signed a "Reinsurance Cooperation Agreement for Policy-Supported Insurance Types" with China Agricultural Reinsurance Corporation Limited, which constitutes a unified transaction agreement. The estimated amount of the agreement does not exceed 2.8 billion yuan, including ceded premiums and reinsurance commission recoveries. This transaction is a significant related-party transaction in the insurance business category. It adopts a quota share reinsurance method ceded to China Agricultural Re, with a cession ratio of 60% for cattle insurance and 25% for non-cattle local policy insurance.

However, behind the impressive performance figures, the company faces a series of issues including compliance loopholes, declining solvency, weak investment returns, shareholder reductions, and numerous lawsuits.

Looking back at 2025, a total of 29 branches of China United P&C were penalized, with total fines approaching 6 million yuan. The违规行为 were highly similar, mainly集中在 fabricating虚假资料, creating fictitious intermediary business to套取 fees, failing to use条款费率 as required, and providing benefits outside the contract.

The penalties were not isolated incidents, involving branches across numerous locations including Ezhou, Xi'an, Panjin, Jilin, Jinan, Wuhai, Nanyang, Shaoguan, Lüliang, Zibo, Jinhua, Liangshan, Loudi, Jiaozuo, Shanghai, Zhenjiang, Guangzhou, Ma'anshan, Bijie, Minqin, Atux, Banan, and Zoigê, demonstrating a widespread pattern of违规行为.

On another front, China United P&C's solvency continues to decline. At the end of the fourth quarter of 2025, its comprehensive solvency adequacy ratio was 217.24%, an increase of 3 percentage points from the third quarter but a sharp decrease of 17 percentage points from the second quarter. The core solvency adequacy ratio dropped from 144.65% in Q2 to 142.11% in Q3, and further down to 131.14% in Q4, with a forecast to fall further to 128.61% next quarter, showing a clear consecutive downward trend. Core tier 1 capital decreased by 495 million yuan.

According to Shenzhen Commercial News, based on data disclosed by 85 other P&C insurance companies, China United P&C's comprehensive solvency adequacy ratio at the end of Q3 2025 ranked 70th among peers, and its core solvency adequacy ratio ranked 80th, placing it in the lower tier of the industry. This stands in stark contrast to its fifth-place industry ranking.

Regarding shareholder dividends, in 2024, China United P&C's net profit was 944 million yuan, yet it distributed 1.171 billion yuan in dividends to shareholders. This meant it not only distributed the entire year's profit but also utilized retained earnings from previous years.

Furthermore, the trend of shareholder reductions and exits has not reversed. Xinjiang Hualian Investment Co., Ltd. and Xinjiang Huyanghe City Supply and Marketing Cooperative Joint Society Co., Ltd. chose to exit in 2024. Shareholders such as Changji Tianlong Commerce and Trade Co., Ltd., the SASAC of the Sixth Division of the Xinjiang Production and Construction Corps, Xinjiang Luyuan State-owned Capital Investment and Operation Co., Ltd., Tumushuke City Investment Group Co., Ltd., and Zhongrong Xinda Group Co., Ltd. also reduced their holdings. Moreover, the Q3 and Q4 2025 reports show no shareholder capital increases.

Additionally, China United P&C's second-largest shareholder, Zhongrong Xinda Group Co., Ltd., holding a 7.79% stake (approximately 1.14 billion shares), has had its entire stake frozen. It has been listed as a失信被执行人 by the Shanghai Pudong New Area People's Court and is subject to consumption restrictions by courts in Beijing, Tianjin, Shanghai, Shandong, and other regions. The company is involved in 374 cases as a defendant, with involved amounts of approximately 26.78 billion yuan.

The equity of China United P&C's largest shareholder, China United Insurance Holding Co., has also seen changes. Eleven shareholders, including the Xinjiang Production and Construction Corps Investment Co., Ltd., chose to exit in 2025, leaving only four shareholders remaining.

Furthermore, China United P&C is involved in several major lawsuits. Disclosures show the company is involved in three significant pending lawsuits with a cumulative total value of nearly 500 million yuan. These include a 301 million yuan insurance contract dispute with Luding County Changyuan Power Development Co., Ltd., a 90 million yuan insurance contract dispute with Zhuhai Longsheng Jiuzhou Property Investment Co., Ltd., and a 102 million yuan vessel mortgage contract dispute with Donggang Runzeng Aquatic Fishing Co., Ltd., among others.

The uncertainty surrounding these lawsuits not only poses potential unexpected financial expenditures but also negatively impacts the company's reputation and customer trust.

On the consumer rights protection front, the service quality of China United P&C is also highly questionable. On the Hei Mao Complaint platform, complaints against China United P&C have exceeded 140, primarily concentrated in the claims settlement and sales processes. Regarding claims, consumers commonly report poor service attitudes and claim denials. In the sales process, many consumers complain about issues such as false advertising, misleading sales,霸王条款, and automatic deductions without clear consent. Even in its stronghold areas of auto and agricultural insurance, there are complaints about "under-compensation" and "claim rejection."

Investment returns lag behind the industry average.

Regarding investment returns, in the first three quarters of 2025, the median total investment return rate for P&C insurance companies was 2.56%, the simple average was 3.02%, and the weighted average was 3.23%. The distribution of total investment returns showed a negatively skewed characteristic with a left tail. Among them, 14 companies had a total investment return rate exceeding 4.0%. Specifically, Fubon Property & Casualty Insurance achieved 22.77%, Xin'an Auto Insurance 7.98%, Yong'an P&C 7.12%, and Huanong P&C 5.63%.

In contrast, China United P&C, ranked fifth in market share, reported an investment return rate of only 1.20% for Q3 2025, a comprehensive investment return rate of 1.25%, and a three-year average investment return rate of 1.87%, all below the P&C industry average. The Q4 2025 investment return rate was 0.24%, the comprehensive investment return rate was 0.4%, the return on total assets was -0.20%, and the return on equity was -0.94%. This indicates a weak contribution from its investment operations, meaning its vast asset pool has generated almost no effective appreciation, missing out on market gains.

Looking at the contribution from the investment side, in recent years, China United P&C's investment income has experienced a cliff-like decline, plummeting from 943 million yuan in 2023 to 29 million yuan in 2024, a dramatic drop of 96.92% compared to 2023. The core solvency adequacy ratio also declined accordingly.

The primary reason is closely linked to its investment failures in the real estate sector in recent years. Reportedly, the peak of China United P&C's real estate-related investments was concentrated between 2019 and 2021. During this period, trust plans accounted for a high proportion of 23.59% to 28.75% of its investment portfolio, with the underlying assets primarily being real estate projects in first- and second-tier cities. Media reports indicate that in recent years, China United P&C's asset side has been burdened with significant non-performing assets, particularly in real estate investments, where multiple projects have frequently encountered problems.

The deep adjustment in the real estate industry has directly impacted its investment returns. Starting in 2022, the company began bulk disposal and transfer of non-performing assets involving trusts like Yingda Trust, CITIC Trust, and Western Trust. In 2024, the principal scale of its non-performing real estate projects reached 4.682 billion yuan. Media reported that as of the end of April 2025, the principal scale of the company's defaulted assets had reached 5.298 billion yuan.

Yan Yuejin, Vice President of the Shanghai E-House Real Estate Research Institute, believes that China United P&C's real estate investment困境集中暴露了 the周期误判 and risk control shortcomings of insurance capital in non-standard asset allocation. The aggressive investment in trust plans during the industry peak from 2019 to 2021, with underlying assets overly concentrated in commercial real estate projects of highly leveraged developers, reflects an insufficient understanding of macro policy shifts and industry risks, a common issue among many insurance companies investing in real estate. The current default of over 5 billion yuan in principal directly drags down investment performance, highlighting how deteriorating asset quality erodes overall returns.

Although disposal efforts are ongoing, China United P&C still faces significant challenges in resolving its real estate-related risks. As of Q4 2025, the book value of the company's investment properties was 2.9 billion yuan, a decrease of over 70 million from Q3. The book value of infrastructure investments reached 3.4 billion yuan, and trust plans amounted to 4.67 billion yuan, a decrease of about 90 million from Q3.

Regarding this, Yan Yuejin pointed out that, overall, given the ongoing deep adjustment in the real estate market, insurance companies need to reassess their real estate projects, evaluate potential risks, and realistically consider the current situation where many assets are being listed for sale.

Professor Zhu Junsheng, a postdoctoral fellow in applied economics at Peking University, stated in an interview that as a leading P&C insurer by business scale, China United P&C's asset side must prioritize serving claims fluctuation and liquidity management requirements, typically resulting in shorter durations and relatively conservative allocations to equities and high-volatility assets. Against the backdrop of a declining interest rate center and increased volatility in equity markets, this allocation strategy is prone to "underperform the average" in terms of book returns. He also suggested that, under compliance premises, the company could improve long-term returns by appropriately extending the duration of fixed-income investments and increasing the allocation ratio of assets with stable cash flows.