Against the backdrop of a low-interest-rate environment and industry-wide transformation, China Merchants Renhe Life Insurance, backed by two giants—China Merchants Group and China Mobile—delivered a performance report for 2025 marked by distinct expansionary "traces." According to the newly disclosed solvency report for the fourth quarter of 2025, China Merchants Renhe Life officially entered the "100-billion-yuan club": by the end of 2025, its total assets reached 108.10 billion yuan, an increase of approximately 18.4% from the end of the previous year; this leap in scale marks a new coordinate for this insurer, established just eight years ago, in its market competition.
Behind the scale growth is an explosive surge on the profit front. In 2025, China Merchants Renhe Life achieved a cumulative net profit of 672 million yuan, a dramatic year-on-year increase of 411%, while its Return on Equity (ROE) soared from 2.24% to 8.69%. Judging by its financial performance, the company appears to have moved beyond the loss-making cycle typical of its start-up phase and entered a fast lane of profit harvesting.
However, amidst the "dual euphoria" of scale and profit, the trend in capital adequacy still warrants attention. The report shows that by the end of 2025, China Merchants Renhe Life's core solvency adequacy ratio dropped to 96.18%, a significant decline from 128.47% at the end of 2024; the primary reason for this change is the rapid accumulation of business liabilities, with its recognized liabilities jumping from 7.65 billion yuan to 9.53 billion yuan. Furthermore, influenced by the China Risk-Oriented Solvency System (C-ROSS) Phase II rules and market conditions, the future surplus from policies included in core tier-1 capital shrank from 1.17 billion yuan to 520 million yuan, indicating some erosion of the capital foundation.
Faced with this "capital drain," China Merchants Renhe Life demonstrated financial maneuvering capability in the fourth quarter. In November 2025, the company issued 1.3 billion yuan in capital supplement bonds with a coupon rate of just 2.40%, and simultaneously redeemed 800 million yuan in older bonds issued in 2020 that carried a much higher interest rate of 4.95%; this act of financial alchemy, "issuing new bonds to repay old ones," not only brought the company an incremental 500 million yuan in supplementary capital but also achieved dual optimization of its capital structure and cost control by saving approximately 20 million yuan in annual interest expenses.
On the investment side, China Merchants Renhe Life exhibited a strong defensive posture. Its investment yield for 2025 was 5.22%, slightly lower than the 5.47% of the previous year, yet its asset allocation logic was clear: it significantly increased its holdings of government bonds to 31.05 billion yuan; during a period of declining interest rates, this "yield-locking" strategy, while sacrificing some liquidity (the cash ratio fell to 0.67%), has built a moat for long-term, stable returns.
Another noteworthy change lies hidden within the shareholder registry. Beijing Zaichuan Technology Co., Ltd. plans to transfer its 3.79% stake to Chongqing Yufu Holding Group and Chongqing Linkong Development Investment Group, signaling the introduction of a powerful Chongqing state-owned capital background into China Merchants Renhe Life's shareholder lineup. This cross-regional collaboration at the shareholder level, extending from the Shenzhen headquarters to the southwestern market, may foreshadow new ambitions for China Merchants Renhe Life in its business landscape.
Despite achieving a glamorous transformation by surpassing the 100-billion-yuan asset mark in 2025, challenges remain objectively present. According to the company's projections, its core solvency adequacy ratio may further decline to 83.55% next quarter. With more than half of its capital supplement bond quota utilized, whether future capital pressures will be alleviated through shareholder capital injections will be a key factor in observing its subsequent growth momentum. Navigating between the impulse for expansion and the red lines of capital adequacy, China Merchants Renhe Life is attempting to find a more sustainable balance point.