Nine Bank-Affiliated Insurance Companies Achieved Combined Net Profit Exceeding 19 Billion Yuan Last Year

Our reporter Yang Xiaohan

Recently, the insurance companies’ 2025 Q4 solvency reports have nearly been completed, and the operational status of bank-affiliated insurance companies has also been revealed. Data shows that in 2025, bank-affiliated insurers performed well, with 9 such companies achieving a total insurance business income of 443.816 billion yuan, a year-on-year increase of 15.5%, and a total net profit of 19.366 billion yuan, up 65.5% year-on-year.

Experts interviewed stated that last year’s significant increase in net profits for bank-affiliated insurers was mainly due to the low base effect, a rebound in the equity markets, improved asset quality, and the scale effect of business growth.

Significant Year-on-Year Increase in Net Profit

Bank-affiliated insurers are insurance companies directly or indirectly controlled by banks. Compared to other insurers, they have closer cooperation with their parent banks and possess certain resource advantages.

Specifically, in terms of insurance business income, in 2025, the 9 bank-affiliated insurers collectively achieved 443.816 billion yuan, a 15.5% increase year-on-year, with all nine companies reporting growth in insurance income. Among them, China Post Life Insurance Co., Ltd., ICBC Ansheng Life Insurance Co., Ltd., and CCB CIB Insurance Co., Ltd. ranked the top three with insurance incomes of 159.166 billion yuan, 50.864 billion yuan, and 49.269 billion yuan, respectively.

Regarding net profit, in 2025, all nine bank-affiliated insurers were profitable, with a combined net profit of 1.9366 billion yuan, a 65.5% increase year-on-year. One insurer turned profitable from loss, seven saw their net profits rise compared to last year, and one experienced a decline.

Notably, among the 57 non-listed personal insurance companies that have disclosed solvency reports, all net profits of bank-affiliated insurers ranked within the top 20. Of the top ten non-listed personal insurers by net profit, five are bank-affiliated.

In response, Yang Fan, General Manager of Beijing PaiPai Network Insurance Agency Co., Ltd., analyzed to Securities Daily that last year’s overall operation of bank-affiliated insurers showed a strong recovery trend of “both volume and profit rising,” driven mainly by precise market opportunity grasping and channel advantages.

He stated that the rapid growth in insurance income was mainly due to increased demand for stable financial assets in a low-interest-rate environment. Relying on the extensive branch network and customer trust of their parent banks, bank-affiliated insurers dominated the bancassurance channel, achieving rapid scale expansion. The significant increase in net profit was primarily due to improved investment returns from a rebound in the equity markets, cost dilution from business scale effects, and some insurers benefiting from low profit bases last year and asset quality improvements that allowed the reversal of previously recognized loss reserves, collectively leading to impressive profit performance.

Building Differentiated Competitive Barriers

As the business of bank-affiliated insurers grows rapidly, their capital consumption also accelerates. Data shows that most of these insurers experienced a decline in their core solvency adequacy ratio and comprehensive solvency adequacy ratio compared to the previous year.

Specifically, in 2025, the average core solvency adequacy ratio of the nine bank-affiliated insurers was 115.89%, down 34.46 percentage points from the previous year, and the average comprehensive solvency adequacy ratio was 179.39%, down 50.25 percentage points. Eight insurers saw declines in both ratios compared to 2024.

According to Zhang Lingjia, President of Guangdong Kelly Capital Management Co., Ltd., the decline in solvency ratios is mainly due to rapid business expansion consuming large amounts of capital. Additionally, falling market interest rates have led insurers to increase reserve provisions, reducing actual capital. Stricter regulatory requirements, such as the full implementation of the second phase of the “Solvency II” regime, also exert ongoing pressure on solvency ratios.

Looking ahead, Zhang believes that bank-affiliated insurers should shift from “scale-driven” to “value-driven” development, focusing on deepening the transformation toward pension, health, and other protection-oriented products. Upgrading asset allocation capabilities to navigate economic cycles and strengthening ecological collaboration with their parent banks to provide comprehensive financial services are key. Insurers also need to enhance capital management, balancing business expansion with solvency safety.

Yang Fan suggests that bank-affiliated insurers should leverage their unique “bank-insurance synergy” advantage, transforming from reliance on distribution channels to deep ecological integration, building differentiated competitive barriers. On the product side, they should break dependence on savings products, developing diversified “protection + wealth management” product matrices based on extensive customer profiles, and explore full lifecycle customer value. On the service side, they should integrate parent bank resources to build a “finance + health” ecosystem, enhancing service value. Additionally, leveraging the parent bank’s fintech capabilities to promote digital transformation will enable precise marketing and refined operations, supporting sustainable high-quality development amid fierce market competition.

(Edited by: Qian Xiaorui)

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