New China Life Insurance Co., Ltd. Class H (NCL) Q4 2025 Earnings Report

The call conveyed a largely positive picture: the company reported record highs across assets, premiums, profit, EV and NBV with strong investment returns, marked improvement in persistency and a successful push into participating products and bancassurance. Management acknowledged challenges—solvency pressure from low long-term yields, potential margin effects from the shift to participating business, market/interest-rate uncertainty, and tighter regulatory requirements—but also described concrete mitigation steps (asset-liability matching, diversified investments, capital measures, technology and service investments). Given the scale and materiality of the reported achievements and clear management plans to address risks, the overall tone is constructive and growth-oriented.

Management guidance for 2026 stresses steady, high‑quality growth that balances value and volume by doubling down on a customer‑centered strategy, accelerating the shift to participating whole‑life, annuity and health products, and pushing channel transformation across individual, bancassurance and Internet channels; key 2025 baselines they plan to build on include total assets ≈RMB1.9tn (+12.2%), GWP RMB195.9bn (+14.9%), EV RMB287.8bn (+11.4%), net profit RMB36.3bn (+38.3%), NBV RMB9.8bn (+57.4%) with NBV margin 16.2%, total investment income RMB104.3bn (6.6% yield), and comprehensive solvency margin >200%. Specific operational priorities are to grow participating sales (par FYP RMB11.9bn in 2025; Q4 par mix 77%), expand bancassurance (2025 bank FYP RMB72.1bn, long‑term FYP RMB37.9bn +52%, NBV RMB5.27bn +111%), sustain persistency (13‑month 97.1%, 25‑month 93.3%) and low surrenders (1.5%), optimize asset‑liability matching (including three pilot funds totalling RMB46.25bn and greater allocation to long‑term equity/PE/OCI), maintain capital adequacy via internal and external measures, and scale tech/AI (11 large models and digital ambassadors, target digital productivity ≈3,000 FTE via seven virtual employee roles) while preserving strong service metrics (one‑minute policy service 96%, paid >RMB42bn in maturities/annuities and RMB14.7bn in claims).