Net profit increases by 15.7%! Sunshine Insurance 2025: Growing rapidly on one hand, actively slimming down on the other?

How does Sunshine Life Insurance achieve high growth against the trend in the bancassurance channel?

Produced by| Zhongfang Network

Reviewed by| Li Xiaoyan

The year 2025 marks the 20th anniversary of Sunshine Insurance and is a key year for the company to deliver high-quality results in the capital market. The latest annual financial report shows that the group’s total premium income has surpassed 150 billion yuan, with a net profit attributable to the parent company of 6.31 billion yuan, a year-on-year increase of 15.7%, and core operating indicators maintaining steady growth. Against the backdrop of deepening industry transformation and increasing market volatility, Sunshine Insurance demonstrates distinct characteristics, such as strong leadership in life insurance, proactive restructuring in property insurance, stable investment protection, and decisive strategic transformation, highlighting overall operational resilience and continuously solidifying the foundation for long-term value.

In 2025, Sunshine Life achieved a historic leap, with total premium income reaching 102.61 billion yuan, a year-on-year increase of 27.5%, marking its first entry into the trillion-yuan premium platform and becoming the core engine for group performance growth. Notably, this expansion in scale was accompanied by a simultaneous leap in value, with the new business value, representing the future profit potential of life insurance companies, reaching 7.64 billion yuan, a significant year-on-year increase of 48.2%, with growth rates ranking among the industry leaders, fully confirming the ongoing optimization of the business structure and significant enhancement of product value.

The structural advantages of the channel are the key support for high growth in life insurance. In an environment where the regulation of the bancassurance channel has deepened and the industry is generally under pressure, Sunshine Life’s new single premium income from the bancassurance channel increased by 69% year-on-year, becoming a model of counter-cyclical growth. This achievement stems from the company’s deep collaboration with the banking system, precise understanding of customer protection and wealth management needs, and forward-looking layout in flexible income products such as dividend insurance and universal insurance. Meanwhile, the individual insurance channel adheres to high-quality development, focusing on long-term protection-oriented business, promoting a steady increase in value rate. The marginal balance of contract services reached 57.62 billion yuan, a 13.3% increase compared to the end of the previous year, building a solid “reservoir” for stable future profit release.

From a business logic perspective, Sunshine Life has abandoned the extensive model that prioritizes scale and transitioned to a development path that balances scale and value, as well as short-term and long-term considerations, seizing opportunities in the industry’s transformation cycle and laying a solid foundation for the group’s sustainable and stable development.

In 2025, Sunshine Property Insurance’s premium income was 47.89 billion yuan, a slight year-on-year increase of 0.1%, maintaining overall stability; underwriting losses were 1.03 billion yuan, with a combined cost ratio of 102.1%. The short-term performance pressure was mainly due to one-time reserves set aside for financing-type guarantee insurance business. By breaking down the business structure, it is evident that the core fundamentals of property insurance remain solid: auto insurance generated an underwriting profit of 480 million yuan, with the share of household and new energy vehicles continuously increasing, optimizing business quality; non-auto insurance liability insurance, accident insurance, etc., achieved underwriting profits of 490 million yuan, with traditional pillar businesses performing steadily.

The losses in the guarantee insurance business, which have drawn market attention, are essentially the result of the industry’s cyclical nature combined with proactive risk control. Financing-type credit guarantee insurance was once a hot business in the industry, but under the backdrop of economic downturn and stricter regulations, risks have continued to emerge. Sunshine Property Insurance reported a loss of 1.51 billion yuan in guarantee insurance business for 2025, mainly due to prudent reserve provisions made to address risks in existing businesses, representing a one-time clearing of historical burdens. The company has clearly stated that it will stop adding new financing-type guarantee insurance business starting in 2026, actively reducing high-risk, high-capital-consuming businesses, and focusing on core advantageous areas such as auto insurance, non-auto liability insurance, and accident insurance, in line with the industry’s transformation trend and regulatory orientation.

From an industry perspective, leading insurance companies such as Ping An, People’s Insurance, and Taikang have gradually reduced or exited financing-type credit guarantee business. Sunshine Insurance’s decision is not an isolated case but a rational choice in line with regulatory requirements and a return to the essence of insurance protection. Short-term performance disturbances will yield long-term purification of business structure and solidification of risk bottom lines, reflecting the company’s strategic determination to retreat for advance and focus on its main business.

The asset management side acts as a “stabilizer” for Sunshine Insurance to navigate market fluctuations. In 2025, the group’s total investment asset scale reached 640.20 billion yuan, a 16.7% increase compared to the end of the previous year; total investment income was 25.23 billion yuan, a year-on-year increase of 27.1%; the comprehensive investment return rate was 6.1%, maintaining a leading level amid a declining interest rate and turbulent capital market environment.

The investment side adheres to a prudent and stable strategy, continuously optimizing the asset allocation structure: fixed-income assets build a solid yield base, increasing allocations to long-duration interest rate bonds to match liability durations; equity assets focus on high-dividend value stocks, balancing yield and stability, effectively hedging market fluctuations. The scale of third-party asset management has steadily increased, with active management capabilities continuously improving, creating a “insurance + asset management” collaborative development pattern that provides stable yield support for insurance business and enhances the group’s overall risk resistance.

On the occasion of the 20th anniversary, Sunshine Insurance actively responds to changes in the industry landscape, demonstrating the responsibility and commitment of a mature insurance company. In addressing the risks of guarantee insurance business, the company not only set aside reserves and stopped adding new business but also strengthened internal control management and improved the risk control system to prevent the spread of risks, reflecting its commitment to shareholders, customers, and the market.

In terms of solvency, influenced by the rapid growth of life insurance business and increased capital consumption, the group’s comprehensive solvency adequacy ratio has declined, but it remains well above the regulatory red line, with capital strength remaining sufficient and risk resistance capability solid. With the exit of high-capital-consuming businesses and optimization of the business structure, capital utilization efficiency will continue to improve, leaving ample space for future development.

Standing at a new starting point, Sunshine Insurance’s development path is clear: life insurance maintains steady growth on the trillion-yuan platform, continuously enhancing value contribution; property insurance sheds historical burdens, focusing on core business to achieve underwriting profitability; the asset management side adheres to stable allocation, strengthening yield support; at the group level, deepening collaboration to enhance comprehensive financial service capabilities. After the one-time risk clearing, 2026 will be a key turning point for the company to operate with a lighter burden and return to the track of high-quality growth.

Sunshine Insurance’s performance in 2025 serves as a typical example during the industry transformation period: it features the impressive breakthrough of life insurance into the trillion-yuan mark and high growth in value, as well as the pragmatic choice of property insurance to proactively clear risks under short-term pressure. Short-term disturbances do not change long-term trends, and one-time losses do not impact core value. The company solidifies its foundation and calibrates its direction at the 20th anniversary node with a strategy of steady operation, value prioritization, controllable risk, and proactive transformation.

As a leading mid-sized insurance company in the country, Sunshine Insurance is rooted in the essence of protection, focusing on customer needs, optimizing business structure, and strengthening risk control capabilities, consolidating competitive advantages amid industry reshuffling. In the future, as the burden of guarantee insurance business is cleared, the value growth of life insurance continues to be released, and the fundamentals of property insurance continue to improve, Sunshine Insurance will embark on the next 20 years of high-quality development journey with a more agile posture and stronger resilience, creating sustained returns for shareholders, providing reliable protection for customers, and contributing a Sunshine model to the industry transformation.