Record 36.3B Yuan Profit Marks 38.3% YoY Growth
New China Life Insurance announced record financial performance for 2025 at its earnings conference on March 30. The insurer's net profit attributable to shareholders reached 36.28 billion yuan, a substantial 38.3% increase from the previous year. This result was supported by a 14.9% rise in total premium income to 195.87 billion yuan and investment income that surpassed the 100 billion yuan threshold for the first time. The company achieved a total investment yield of 6.6% for the year, reflecting its strategy of value and long-term investing.
Firm Targets High-Dividend Stocks to Navigate Low Interest Rates
Facing a challenging low-interest-rate environment, Chen Yijiang, President of New China Asset Management, outlined a clear equity investment strategy for 2026. The plan focuses on three key areas: industries with high growth and continuously improving performance, sectors aligned with China's national strategic direction such as 'new productive forces', and high-dividend stocks that offer stable returns. This pivot emphasizes an absolute return-oriented approach, which prioritizes asset-liability matching and diversification across fixed income, equities, and alternative assets to mitigate risk and capture structural market opportunities.
Insurer Commits 46.25B Yuan to Diversify Investments
As part of its diversification strategy, New China Life has invested a cumulative 46.25 billion yuan into the Honghu series of private equity funds, which it jointly established with China Life. This initiative is designed to optimize asset-liability management and contribute to the stable development of capital markets. The company is also leveraging technology to enhance efficiency, planning to deploy seven 'digital employees' in 2026 to automate tasks in high-frequency areas like customer service and investment advisory. This AI push is projected to deliver productivity equivalent to 3,000 human employees, allowing staff to focus on higher-value work.
