People’s Insurance Company (Group) of China Limited Annual Report 2025: Financial Highlights, Governance, Risk Management, and Sustainable Development

PICC Group 2025 Annual Report: Key Financial and Strategic Highlights for Investors

Robust Financial Performance and Dividend Growth

Total assets surged by 14.8% year-on-year to RMB 2,027.6 billion as of 31 December 2025, reflecting consistent expansion and balance sheet strength.
Equity attributable to owners grew by 15.0% to RMB 309.2 billion, signaling strong capital adequacy and shareholder value creation.
Insurance revenue increased by 6.1% to RMB 570.7 billion, demonstrating the Group’s continued growth in core business operations.
Net profit reached RMB 62.5 billion, up 10.0% year-on-year, while net profit attributable to owners rose by 9.6% to RMB 46.2 billion.
Earnings per share (EPS) climbed to RMB 1.04, from RMB 0.95 a year earlier, and net assets per share improved to RMB 6.99.
Final Dividend Proposal: The Board has proposed a final dividend of RMB 1.45 per 10 shares for the year 2025, subject to shareholder approval at the upcoming general meeting. This continues PICC’s record of steady and increasing dividend payouts, a key point for income-focused investors.

Total investment assets reached RMB 1,901.6 billion, up from RMB 1,641.8 billion in 2024, with a diversified asset allocation.
Fixed-income investments comprised 64.5% of the portfolio, while equity investments at fair value increased significantly to 22.3% (from 18.2%), indicating a greater risk appetite and higher exposure to equity markets.
PICC achieved a total investment income of RMB 93.0 billion (2024: RMB 82.2 billion), with a consistent total investment yield of 5.6%. However, net investment yield declined slightly to 3.5% (from 3.9%), mainly due to changes in market conditions and asset allocation.
Notably, equity investment income nearly doubled to RMB 42.0 billion (from RMB 19.7 billion in 2024), reflecting successful reallocation and positive market movements.
Impairment losses on fixed-income investments were recorded at RMB 1.1 billion, compared to a positive reversal in the prior year, indicating some market stress in specific assets.

The Group has made significant investments in comprehensive risk management systems, focusing on forward-looking risk identification, penetration, and effectiveness across all business lines.
Enhanced risk monitoring and early warning mechanisms operate at daily, weekly, monthly, quarterly, and annual intervals, targeting both existing and emerging risks.
Market risk remains a priority, with the Group actively conducting stress tests, scenario analysis, and dynamic tracking of key indicators. It is particularly vigilant regarding equity market volatility, bond interest rate changes, and potential spillover effects from real estate sector debt risks.
No major credit events occurred in 2025, and overall risk exposure is described as controllable. However, the Group cautions on persistent uncertainties in the macroeconomic and geopolitical environment, which may impact future valuations and investment returns.

Embedded Value (EV) as of 31 December 2025 was RMB 124.1 billion, up from RMB 119.7 billion in 2024. The increase was mainly driven by new business contribution (RMB 8.8 billion) and expected return (RMB 6.5 billion), offset by negative investment return variance (RMB -3.6 billion) and model/assumption changes (RMB -6.6 billion).
For another business segment, the EV moved from RMB 30.1 billion to RMB 35.4 billion, with new business contribution at RMB 9.1 billion and positive investment return variance (RMB 674 million).
Model and assumption modifications had a material negative effect on EV in both segments, highlighting the sensitivity of valuation to actuarial and economic assumptions. This is a key area for investors to monitor, given potential future impacts on reported value and profitability.

No significant changes in share capital structure during 2025; the total number of ordinary shares remains at 44,223,990,583.
MOF (Ministry of Finance) remains the controlling shareholder with a 60.84% stake, followed by SSF (Social Security Fund) at 12.68%. There is no peer competition between PICC and other insurance companies controlled by the MOF.
No management contracts, significant contracts with controlling shareholders, or connected transactions requiring disclosure under Hong Kong or SSE rules were reported in 2025.
No material lawsuits, arbitrations, or external guarantees occurred during the period. The Company and the controlling shareholder maintained full compliance and integrity in all legal and regulatory obligations.
The Group maintained the required public float for H shares and was awarded top grades for information disclosure and investor relations by several industry associations.

PICC’s profit distribution policy emphasizes sustainable, stable, and cash-based dividends, with a minimum of 10% of distributable profits to be paid annually as cash dividends, subject to regulatory and solvency requirements.
The 2025 final dividend proposal (RMB 1.45 per 10 shares) continues the Group’s track record of attractive returns, although actual payment awaits shareholder approval.

Continued asset and profit growth, steady dividend policy, and increased equity allocation are likely to be seen as positives by the market, particularly in a low-interest-rate environment.
However, potential headwinds include macroeconomic uncertainties, market volatility, and sensitivity of embedded value to model changes. Any further shifts in risk profile, asset quality, or regulatory environment could be price sensitive.
Investors should closely watch future updates regarding equity investment performance, risk management outcomes, and any modifications to actuarial assumptions or dividend policies.