Analysis of Sunshine Insurance 2025 Performance: Life Insurance New Business Value Growth of 48% Financial Insurance Business Structure Optimization

Why did the new business value of AI Sunshine Insurance Life Insurance nearly increase by 50%?

Reporter Chen Jingjing, Beijing

Recently, Sunshine Insurance (06963.HK) released its 2025 annual report. Data shows that in 2025, Sunshine Insurance’s total premium income was 150.72 billion yuan, a year-on-year increase of 17.4%. Net profit attributable to the parent company’s shareholders was 6.31 billion yuan, up 15.7%.

As of the end of 2025, Sunshine Insurance’s total investment assets reached 640.2 billion yuan, a 16.7% increase from the previous year-end; total investment income was 25.23 billion yuan, up 27.1%; comprehensive investment income was 32.44 billion yuan, an 8.9% increase. The total investment yield was 4.8%, and the comprehensive investment yield was 6.1%.

In 2025, Sunshine Life’s premium scale surpassed the 100 billion yuan mark, a 27.5% increase; new business value reached 7.64 billion yuan, a 48.2% increase. Sunshine Property & Casualty Insurance’s non-guaranteed insurance underwriting combined cost ratio was 98.9%, with underwriting profit of 490 million yuan.

It is worth noting that in 2025, both Sunshine Life and Sunshine Property & Casualty Insurance underwent strategic adjustments, such as transforming individual life insurance agents and actively exiting guaranteed insurance business in non-auto insurance segments.

Professor Zhu Junsheng, a postdoctoral fellow in applied economics at Peking University, told China Business Journal that Sunshine Insurance’s operational performance in 2025 demonstrates clear and effective transformation results. Its core features can be summarized as “steady expansion in scale, continuous enhancement of value, and ongoing optimization of structure.”

Individual Insurance Declines, Bank Insurance Share Rises

Looking at business segments, in 2025, Sunshine Life’s total premium income was 102.61 billion yuan, a 27.5% increase; new business value was 7.64 billion yuan, up 48.2%.

According to reports, in 2025, Sunshine Life continued to deepen its product structure transformation and team upgrades across multiple business lines.

The annual report shows that in individual insurance, Sunshine Life continued to promote the “One Body, Two Wings” strategy, implementing differentiated management models.

“One Body” focuses on optimizing the traditional team quality, improving professional capabilities, and accelerating product structure transformation. “Two Wings” continuously refine operational models to enhance value development momentum.

However, individual insurance’s contribution accounted for about 25%, down from 28.4% in 2024. Notably, new single premium income in individual insurance declined, with new single premium income in 2025 at 6.046 billion yuan, down 7.6% year-on-year. Total individual insurance premiums reached 25.976 billion yuan, up 13.6%, mainly driven by renewal premiums.

Regarding team transformation, Sunshine Life adopted different strategies for traditional and elite teams.

For traditional teams, Sunshine Life improved new team standards and enhanced quality and effectiveness of talent development, steadily improving team quality; also strengthened customer management capabilities, leveraging AI tools to empower teams. In 2025, activity per capita productivity reached 22,000 yuan; new recruit activity per capita productivity was 18,000 yuan.

For elite teams, Sunshine Life reinforced tiered recruitment, systematic training, and long-term empowerment, systematically enhancing overall professional ability and quality; through deep customer lifecycle management and refined client segmentation, effectively improved activity quality. In 2025, the monthly activity workforce of elite teams remained stable, with per capita productivity more than double that of traditional teams.

It is noteworthy that in 2025, bancassurance channels became the primary source of premium growth for life insurance companies, with new single premium income from industry channels surpassing 60%, returning as the largest main channel. Sunshine Life was no exception.

In 2025, Sunshine Life’s bancassurance channel premium income was 67.455 billion yuan, a 34.8% increase. Among these, first-year premiums were 34.087 billion yuan, up 69%; renewal premiums were 33.368 billion yuan, up 11.8%; new business value from bancassurance was 4.72 billion yuan.

Other channels, including group insurance, telemarketing, online sales, and agency sales, contributed a total premium income of 9.18 billion yuan in 2025, a 21.6% increase.

Segmentation of Non-Auto and Auto Insurance Operations

In the property & casualty segment, in 2025, Sunshine Property & Casualty Insurance achieved original premium income of 47.89 billion yuan, nearly unchanged (+0.1%). The combined underwriting cost ratio was 102.1%, with an underwriting loss of 1.03 billion yuan. Among these, non-guaranteed insurance underwriting cost ratio was 98.9%, with an underwriting profit of 490 million yuan; guaranteed insurance underwriting cost ratio was 129%, with an underwriting loss of 1.51 billion yuan.

Auto insurance business continued to optimize its structure and strengthen profitability. In 2025, auto insurance original premium income was 25.83 billion yuan. The proportion of household vehicle premiums increased by 2.6% year-on-year, and new energy vehicle premiums increased by 3.2 percentage points. The combined underwriting cost ratio was 98.2%, with an underwriting profit of 480 million yuan.

Non-auto insurance premiums grew by 4.5% year-on-year, accounting for 46.1%, an increase of 1.9 percentage points. The combined underwriting cost ratio was 102.1%, with an underwriting loss of 1.03 billion yuan. The main reason for underwriting losses in non-auto insurance was the guaranteed insurance business.

Comparing figures, the guaranteed insurance underwriting cost ratio for Sunshine Property & Casualty was 98.8% in 2023, 99% in 2024, and rose sharply to 129% in 2025.

The company stated in its annual report that to adapt to market changes and macro policy adjustments, it will cease new guaranteed insurance business related to financing from 2026 onward, and has prudently set aside reserves. “Considering the characteristics of financing guarantees, the company has made provisions, leading to a 129% underwriting cost ratio in 2025.”

In fact, from the second half of 2025, many leading property & casualty insurers stopped adding new financing-related credit insurance, reducing underwriting risks.

Additionally, liability insurance and cargo transportation insurance also experienced underwriting cost ratios above 100%, resulting in underwriting losses. The annual report shows that in 2025, liability insurance original premium income was 3.54 billion yuan, down 8.5%, with a combined cost ratio of 104.8%, down 0.5 percentage points. Cargo transportation insurance original premium income was 2.7 billion yuan, up 9.2%, with a combined cost ratio of 104.8%, down 1.1%.

(Edited by: Shi Jian | Reviewed by: He Shasha | Proofread by: Yan Jingning)