China Pacific Insurance (Group) Co., Ltd. (CPIC) released the solvency report for its main life-insurance subsidiary, China Pacific Life Insurance Co., Ltd. (CPIC Life), covering the three months ended 30 June 2026. The board affirmed the report’s accuracy and completeness, with all eight directors voting in favour.
Solvency Position • Admitted assets reached RMB 2.93 trillion, up 1.64% quarter-on-quarter, while admitted liabilities rose 2.09% to RMB 2.52 trillion. • Actual capital declined 1.08% to RMB 411.10 billion, mainly reflecting mark-to-market investment impacts and profit distribution. • Minimum capital increased 0.94% to RMB 196.24 billion, driven by higher market- and life-risk charges. • Core solvency margin stood at RMB 84.51 billion with a 143% ratio (-3ppts QoQ). Comprehensive solvency margin was RMB 214.86 billion, equating to a 209% ratio (-5ppts QoQ). Both figures remain comfortably above the 100% regulatory threshold.
Liquidity Indicators • Liquidity coverage ratios (base scenario) were 135% for the next three months and 110% for the next 12 months, exceeding the minimum 100% requirement. • Under stress scenarios, 12-month LCR was 476% after assumed asset disposals and 71% before disposals, signalling solid liquidity buffers. • Year-to-date net operating cash inflow totalled RMB 18.06 billion; the retrospective adverse deviation ratio of operating cash flow was 2%.
Profitability & Business Scale • First-half 2026 net profit reached RMB 23.91 billion, yielding a 13.52% annualised ROE and 0.85% ROA under new insurance accounting standards. • Gross written premiums for H1 totalled RMB 161.29 billion; written premiums on a statutory basis were RMB 186.62 billion. • Agency channel contributed 74.27% of H1 written premiums, followed by bancassurance at 18.86%. • New business value for H1 was RMB 10.47 billion with a 9.32% margin; 13-month policy persistency stood at 95.96%, while the surrender ratio was contained at 0.66%.
Investment Performance • First-half investment yield was 1.97%, with a comprehensive investment yield of 2.27%. Three-year average comprehensive investment yield measured 6.19%.
Capital & Ownership Structure • CPIC Group remains the controlling shareholder with a 98.29% stake; no changes in shareholding occurred during the quarter. • Registered capital is RMB 86.28 billion. Subsidiaries include 100%-owned entities in pension, healthcare and elderly-care services, underscoring CPIC Life’s diversification strategy.
Risk Management & Regulatory Standing • The National Financial Regulatory Administration (NFRA) assigned CPIC Life an AA rating in the Insurance Regulatory Rating (IRR) for both Q4 2025 and Q1 2026. • The latest SARMRA on-site score stands at 84.50/100 (2022); the company continues to refine its risk-management framework, including updates to its risk-appetite statement and limit controls. • No administrative penalties were imposed by the NFRA during the quarter. Localised branch-level measures were limited to routine administrative penalty decisions and opinion letters.
Management Outlook • CPIC Life attributes the slight decline in solvency ratios primarily to market volatility and incremental risk charges but maintains that current capital and liquidity levels exceed regulatory minima by comfortable margins. • The insurer plans further enhancement of its risk-assessment tools, semi-annual risk reviews, and continued focus on high-quality business growth across agency, bancassurance, group and internet channels.
Overall, CPIC Life enters the second half of 2026 with solid solvency, strong liquidity, and sustained profitability, positioning it to navigate market uncertainties while advancing its transformation agenda.