Financial Report of Asia's Largest P&C Insurance Group: PICC Group's Net Profit Exceeds RMB 8.8 Billion, Q1 Investment Income Reaches RMB 8.931 Billion

On the evening of April 29, PICC Group released its first-quarter report for 2026, showing that the company achieved operating revenue of RMB 148.536 billion in the first quarter, a year-on-year decrease of 5.14%; net profit attributable to shareholders amounted to RMB 8.814 billion, a year-on-year decrease of 31.40%.

Regarding the year-on-year changes in the above indicators, PICC Group attributed them to "mainly affected by the capital market, with investment-side profits declining year-on-year during the reporting period, leading to a decrease in net profit compared to the same period last year."

As the largest property and casualty insurance group in Asia, PICC Group's performance has drawn significant market attention.

However, looking through the income statement at the core business, the operational foundation of this insurance giant remains solid: underwriting profits from property and casualty insurance grew steadily, new business value in life insurance increased by over 20%, and health insurance revenue grew by nearly 10%. The following analysis breaks down the true quality of this first-quarter report from two dimensions: the three core businesses and the investment side.

Steady Growth in Three Core Businesses

During the reporting period, PICC Group's three core subsidiaries—property and casualty insurance, life insurance, and health insurance—all achieved steady growth.

PICC P&C: Underwriting profits steadily improved, and the combined ratio continued to optimize. It achieved Insurance Premium Income of RMB 123.015 billion, a year-on-year increase of 1.9%; underwriting profit reached RMB 37.154 billion, a year-on-year increase of 7.5%; the combined ratio was 94.2%, a year-on-year decrease of 0.3 percentage points, further enhancing underwriting profitability; net profit amounted to RMB 8.631 billion.

PICC Life Insurance: New business value grew rapidly, reflecting the effectiveness of business transformation. It achieved Insurance Premium Income of RMB 6.688 billion and net profit of RMB 1.962 billion. New business value increased by 21.0% year-on-year, signaling a positive trend in the rising proportion of long-term protection-oriented businesses.

PICC Health: Insurance Premium Income growth led the pack, with outstanding net profit contribution. It achieved Insurance Premium Income of RMB 8.164 billion, a year-on-year increase of 9.1%, the highest growth rate among the three subsidiaries; net profit reached RMB 1.965 billion, maintaining robust profitability.

Overall, the synergistic efforts of the three subsidiaries jointly promoted high-quality development in PICC Group's first-quarter performance.

Realized Total Investment Income Reached RMB 8.931 Billion

Facing the complex environment of low-interest-rate fluctuations in the bond market and increased volatility in the stock market during the first quarter, PICC Group adhered to a prudent and steady strategy on the investment side, leveraging multiple approaches to address market challenges.

In fixed-income investments, the company strengthened its ability to analyze medium- to long-term interest rate trends, effectively balancing duration and yield, and safeguarding the "core" of asset allocation. In equity investments, it actively responded to requirements for medium- to long-term capital entering the market, fully leveraging the advantage of insurance funds as patient capital, strengthening the orientation towards absolute returns, optimizing equity holding structures, and enhancing the long-term stability of investment performance under new accounting standards.

Thanks to the effective implementation of these strategies, the company's investment side achieved steady returns in a complex environment. During the reporting period, PICC Group realized total investment income of RMB 8.931 billion, with a Realized Yield of 5.05% and total investment assets amounting to RMB 1.9 trillion.