CPIC Property Insurance Posts 9.86 Billion-Yuan Net Profit in 2025; Solvency Margin Climbs to 244%

Bulletin Express
Yesterday

China Pacific Property Insurance Co., Ltd. (CPIC Property Insurance), the P&C arm of CPIC Group, released its Q4 2025 solvency report, highlighting solid capital strength, healthy liquidity and resilient underwriting results.

Solvency Position • Admitted assets stood at 274.29 billion yuan against admitted liabilities of 198.15 billion yuan. • Actual capital reached 76.14 billion yuan, comfortably above the minimum capital requirement of 31.20 billion yuan. • Core and comprehensive solvency margin ratios improved to 203.0% and 244.0%, up 4.1 and 2.0 percentage points respectively from the previous quarter. • The uplift was driven chiefly by higher net profit and fair-value gains, together with lower market- and credit-risk capital charges.

Liquidity and Cash Flow • Net cash inflow for 2025 totaled 3.00 billion yuan, supported by 17.91 billion yuan of operating cash inflow. • Liquidity coverage ratios (LCR1 & LCR2) remained above the 100% regulatory threshold for both 3- and 12-month horizons; LCR3 stayed above 50%. • Cash and other liquidity-management instruments accounted for 2.5% of total assets, while financing leverage averaged 0.5% during the year.

Operating Performance • Gross written premiums reached 203.07 billion yuan for the year, virtually flat year-on-year. Q4 contributions amounted to 43.39 billion yuan. • Auto insurance contributed 117.14 billion yuan; the five largest non-auto lines added 80.33 billion yuan. • Net profit came in at 9.86 billion yuan for 2025, including 1.10 billion yuan in Q4. • The full-year combined ratio improved slightly to 97.3%, with a loss ratio of 71.5% and an expense ratio of 25.8%. • Investment yield was 3.2%, while the comprehensive investment yield—factoring in fair-value changes—rose to 4.0%.

Capital & Ownership • Registered capital is 19.95 billion yuan; CPIC Group remains the controlling shareholder with a 98.50% stake.

Risk Management and Compliance • CPIC Property Insurance is classified as a Category I insurer and maintained an AA rating in the regulator’s Integrated Risk Rating (IRR) for both Q2 and Q3 2025. • The insurer scored 96.98 in its 2025 SARMRA self-assessment, up from 2024, reflecting continued enhancements in governance, digital risk controls and ESG integration. • In Q4, the company’s branches received 31 administrative penalties totaling 8.18 million yuan, mainly linked to expense and underwriting irregularities; no major judicial proceedings or senior-management penalties were reported.

Outlook and Capital Adequacy Management expects the comprehensive solvency margin ratio to remain above 230% in Q1 2026 under the base-case scenario, underpinned by stable earnings and disciplined risk exposure. The insurer plans to further tighten risk governance, refine its catastrophe-risk framework and bolster liquidity management to sustain its strong capital position.

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