Earnings call transcript: China Pacific Insurance Q3 2025 reveals strong growth

China Pacific Insurance Group (CPIC) reported robust financial results for the third quarter of 2025, showcasing significant growth in key areas such as net profit and life insurance premiums. The company’s stock experienced a modest uptick of 0.4% following the announcement, reflecting investor confidence in its strategic direction and financial health. With a market capitalization of $47.7 billion, InvestingPro data indicates CPIC is currently trading near its Fair Value, while maintaining a strong 29.7% price return over the past six months.

Key Takeaways

• Net profit surged by 19.3% year-over-year to ¥45.7 billion.
• Life insurance premium income increased by 14.2% to ¥263.8 billion.
• The bank channel saw a remarkable 63.3% increase in gross written premiums.
• The company is focusing on health insurance and product diversification for future growth.

Company Performance

China Pacific Insurance Group demonstrated solid performance in Q3 2025, driven by strong gains in life insurance and a strategic focus on innovation and diversification. The company reported a total insurance revenue of ¥216 billion, marking a 3.6% increase from the previous year. This performance aligns with the company’s ongoing efforts to expand its product offerings and adapt to market changes.

Financial Highlights

• Total insurance revenue: ¥216 billion (up 3.6% YoY)
• Net profit: ¥45.7 billion (up 19.3% YoY)
• Operating Profit After Tax (OPAT): ¥28.4 billion (up 7.4% YoY)
• Investment assets: Approached ¥3 trillion (up 8.8% YoY)
• Annualized total investment yield: 5.2% (up 0.5 percentage points)

Outlook & Guidance

Looking ahead, CPIC projects regular premium growth of 5-10% in 2026, with the bank channel expected to grow by 10-20%. The company plans to continue emphasizing health insurance and product diversification, alongside a strategic expansion of bank outlets with a growth potential of 30-40%.

Executive Commentary

Su Gang, CFO, stated, "We will continue to pursue high-quality growth, enhance our capabilities to create value." Li Jinsong, General Manager, added, "We need to balance domestic and international strategy and allocation to achieve higher yields." These comments underscore the company’s commitment to sustainable growth and strategic expansion.

Risks and Challenges

• The low-interest-rate environment may pressure investment yields.
• The company faces challenges in adapting to new energy vehicle insurance.
• Maintaining a stable solvency ratio amid recent convertible bond issuance.
• Potential regulatory changes in the insurance sector could impact operations.
• Economic uncertainties may affect consumer demand for insurance products.

Q&A

During the earnings call, analysts inquired about the challenges in new energy vehicle insurance and the company’s investment strategy focusing on long-term asset-liability matching. Executives also addressed concerns regarding the solvency ratio, citing recent convertible bond issuance as a measure to maintain financial stability.

China Pacific Insurance’s Q3 2025 results highlight its strong market position and strategic focus on growth areas. The company’s robust financial performance and positive outlook suggest it is well-positioned to navigate future challenges and capitalize on emerging opportunities in the insurance sector. InvestingPro rates CPIC’s overall financial health as "GOOD" with a score of 3.0, noting its liquid assets exceed short-term obligations. Investors seeking deeper insights can access CPIC’s comprehensive Pro Research Report, part of the 1,400+ detailed company analyses available exclusively to subscribers.

Full transcript - China Pacific Insurance Group Co Ltd (601601) Q3 2025:

Su Gang, CFO, CPIC Group: VP, CIO, and CFO of CPIC Group, and Mr. Li Jinsong, General Manager of CPIC Life. First of all, Mr. Su Gang will give you an introduction of the results in the first three quarters. After that, we’ll have a Q&A session. I’ll give the floor to Mr. Su Gang. Good afternoon, ladies and gentlemen. I’m the CFO of CPIC Group, Su Gang. I’ll give you a brief introduction of the results of our first three quarters. Guided by China’s new term measures for the insurance industry, we played our role as a social stabilizer and a safety net while focusing on core businesses. We deepened our reforms to risk switch from old to new growth drivers. We have seen steady progress in the first three quarters. Our insurance revenue was ¥216 billion, up 3.6% year on year.

Supported by insurance performance and investment gains, our net profit reached ¥45.7 billion, up 19.3%. Our OPAT stood at ¥28.4 billion, up 7.4%. In terms of our business lines for the life insurance, our CPIC Life Company deepened its Changhong Transformation Program while focusing on customer centricity, product service integration, and agent empowerment. In the first three quarters, CPIC Life’s total premium income was ¥263.8 billion, up 14.2%. Its new business value was ¥15.3 billion, up 31.2% year on year. CPIC Life continued to deepen its diversified channel development. The agency channel focused on customer centricity for differentiated customer development and improved the capability to sell par life insurance. It strengthened team building with initiatives such as the CPAI, Elderly Care, and the Wells Planner Program to recruit high-quality new agents. The agency also focused on empowering high-performing agents and teams.

In the first three quarters, the agency’s premium income was ¥184.3 billion, up 2.9% year on year. The share of the mid to high-end customers grew by 4.8% compared to last year. The business mix also improved. The par life insurance made up 58.6% of the total regular premium new business. Moreover, the agency stabilized its total headcount with 181,000 agents on a monthly basis, on par with last year. The monthly average FYP per agent per core agent was ¥71,000, up 16.6% year on year. For the bank channel, it focused on customers’ needs, bank customers’ needs for wealth management and health and retirement. It continued to improve product offering, customer operation, and team capacity building, empowered by digitization.

In the first three quarters of this year, the bank channel delivered ¥58.3 billion in gross written premiums, up 63.3% year on year, of which regular premium new business reached ¥15.9 billion, up 43.6% year on year. For the group channel, we played up its strengths to boost business-backed employee marketing, or the BBE channel. The coverage of the inclusive insurance in the first three quarters, its gross written premiums were ¥16.29 billion, up 12.2% year on year, of which the regular premium new business from the BBE module reached ¥1 billion, up 15.6% year on year. For CPIC P&C, it continued to improve its business mix and customer authorization while boosting technology empowerment and AI application. It also made great efforts for disaster prevention to reduce risks and safeguard its progress.

For the auto insurance, we can continue to improve the big business mix, improve business quality control, and innovate NEV, new energy vehicle products and services. For non-auto business, guided by national strategy, we strengthened the basic management and business development, improved the business mix, and risk management. For the agricultural insurance, more products were offered to cover the total cost of China’s staple food and the major agricultural products. We also launched innovative products to refine the models and effectiveness of agricultural insurance. In the first three quarters, CPIC P&C recorded ¥160.2 billion in gross written premiums, up 0.1%, of which auto insurance accounted for ¥80.46 billion, up 2.9%. Due to our proactive adjustment of business mix, non-auto gross written premiums were ¥79.74 billion, down 2.6% year on year. The combined ratio was 97.6%, down 1 percentage point year on year.

On asset management, we pursued disciplined and yet flexible tactical asset allocation under the framework of a long-term strategic asset allocation based on long-term asset-liability matching. We effectively allocated long-term fixed income assets to extend asset duration and actively managed equity investment by focusing on low valuation, high-dividend stocks, and delivered solid returns on top, thanks to our diversified investment strategy. By the end of Q3, the group’s investment assets approached ¥3 trillion, up 8.8% year on year. In the first three quarters, the annualized net investment yield was 2.6%, down 0.3 percentage points, and the annualized total investment yield was 5.2%, up 0.5 percentage points. Looking ahead, we will continue to pursue high-quality growth, enhance our capabilities to create value, focus on the five financial priorities of China’s financial market, and strive to build CPIC into a world-class insurance with international competitiveness. That ends my presentation. Thank you.

Now let’s start the Q&A session. Please listen carefully to how you can ask the questions. If you want to ask a question, please press star and one, star one to queue for question. Please identify yourself and your employer before asking questions. You may ask no more than two questions. We have a number one question from Dongwu Securities. Thank you. Thank you for the presentation. It’s a very timely results announcement, and congratulations on your good performance. I have two questions, actually. Number one is on the liability side. As we can see, many insurers relied on bancassurance for fast growth. Many of them have completed their targets for 2025. What about the liability side for next year, given the high benchmark or the high basis for this year? You also mentioned on the agency side.

You mentioned that your par life accounted for close to 59% for the agency channel new business sales. How about the percentage for bank channel? The second question is on the investment side. For the first three quarters, as we see, the total investment yield is 5.2%, quite high. What about the future for SAA? What’s your view on the equity side? What’s your strategy? What’s your judgment? How about your move for the bond investment? What’s your TAA or what’s your SAA regarding your allocation for the equity side? Thank you. I’m Li Jinsong from CPIC Life. I’ll answer your first question. First of all, on the outlook for 2026. Two points. Number one, for the agency channel or the individual business, compared to our peers, our judgment is pretty much the same. We talk to them on a regular basis.

First of all, the regular premium business will give us positive growth. We agree on this. In terms of the percentage, I believe it might grow by 5% to 10% next year, regular premium business growth next year. Maybe Q1 will grow faster than Q2, and Q3 will be a low point next year. For the agency new business value, we also want positive growth. In terms of the bank channel, bank assurance channel, currently, as we talk to peers and as we talk to bank partners based on our own situations, we believe the total next year, I mean, the next year, the regular premium business will grow at the same pace as this year, maybe at 10%. We believe CPIC Life will grow faster at 20% to 30%, and MBV will grow even faster than the 20% to 30% range.

In terms of our main products for Life Company as a whole, if we look at the par life and the variable products, we believe traditional insurance will be, I mean, as a percentage, it will be smaller than 50% of the total. Of course, if we look at the customer needs and the product diversification, I wouldn’t say that, I wouldn’t want, I wouldn’t say that an arbitrary percentage would be good or bad for the company. This is so much about the business or product mix. We will look at the overall situation and customer needs. To be more specific, the business or product mix will be more diversified. For CPIC, maybe we are the only company that is going to launch unit-linked products for high net wealth customers. It will be combined with traditional incremental whole life plus whole life annuity products.

We will sell them as kind of a sort of bundles. For bank channel, product offering will be more diversified. For example, we have different segments of customers, including private bank customers and mass bank customers. For private bank, we will want higher-end products. On the whole, participating insurance will be the main products to be coupled with traditional annuity and the incremental whole life. In terms of the share of regular share of par insurance in the bank channel, in the bank channel, now actually, our share is 27.7% for the par insurance products. Actually, you’ll see we rank number two among our listed peers. In October, 70% of our products are par life for the year, for the single months. The second question on the investment, I believe the market is having a lot of uncertainty at the moment.

We see a lot of high-level talks, both inside and outside China. A lot of factors are affecting the market and also giving us a hint of the future directions for China in the next five years. Of course, given all these kinds of very, well, complex situations and the long-term issues, for example, aging society, the company needs to look at our own situation, the profile of our own liabilities, for example. We need to study, keep doing the research to have a mechanism to match liabilities with assets on a long-term basis. Given our profile of our liability, we would say different insurers will have a different mechanism to match assets with liabilities. Hence, different SAA and TAA. For China Pacific Insurance (Group) Co Ltd, we have a so-called net investment yield plus model.

We look at SAA and the macroeconomy and the long-term judgment to come up with our specific investment strategy. For fixed income assets, we would want to be prudent and be the long term. For example, a 10-year treasury bond will be running at a certain range. We believe it will go down at a slower pace. Going forward, we will be more active. We will seize upon the opportunities when the credit bond recovers. We look at these kinds of innovative fixed income assets, for example, ABS and REITs. These will help us to drive up our investment yield. They can offer a sort of a buffer for our net investment yield. For equity side, we need to be prudent.

We need to maintain our strategy, that is to seek high-dividend stocks because this strategy allows us to capture long-term high return from these kinds of high-dividend payout stocks with promising potential. In this way, we can not only get the dividend payment but also share with the growth potential of those companies. If we look at the last 10 years, this strategy gives us a return much higher than the market benchmark. Also, we are going to have this kind of a satellite strategy. For example, we are going to utilize our CSI-style indexes. For example, the CSI CPIC active stock style index, fund index. Using these kinds of tools, we can generate positive growth, positive investment yield contribution. We need to also flexibly adjust our style exposure. We need to frequently adjust this kind of active and passive strategy.

We need to balance domestic and international strategy and allocation so as to achieve higher yields on the long term. Thank you. Now, let’s welcome the next question. Next question comes from Guotai Junan Securities. Thank you for the opportunity. I’m from Guotai Junan Securities. I have two questions. Number one about asset and the other on liability. Now, you have given us a very detailed sharing. Now, in terms of a banker, you had a lot of newly opened outlets. Could you give us more details? I mean, regular premium grew fast this year. How much of it comes from new outlets and how much comes from existing outlets? This is for 2025. What about your future prospect on 2026 in terms of opening new outlets, bank outlets? Second question on the investment side. As we know, a lot of insurance companies have increased their allocation on equities.

My question is, going forward, what’s your strategy specifically about this kind of high-growth stocks? The share of TPL, is it going to increase? Thank you. Thank you for your questions. Let me answer your questions. First of all, the bank channel question. In 2025, in terms of the growth, I believe it is a multipronged effort. First of all, the channel is making a great effort, as we can see in 2025 in terms of regular premium business. This kind of state-owned big banks have made great contributions. The share of those banks grew by 22% last year to 33% this year. I would say the growth of outlets mainly comes from state-owned banks, especially ICBC, CCB, for example. That’s the outlet. Secondly, the growth comes from the teams, the bank teams, sales team, which grew by 20%.

Secondly, productivity of those teams also grew by 20% per sales agent, per sales person. These kinds of factors combined gave us quite rapid growth in terms of the MBV from bank channel, which almost doubled in the first nine months. What about next year? The growth of bank outlets for 2026, I believe that will still be a strategic focus for next year. If we look at the pathway for growth, the growth of a case size, of course, we want that to maintain. The growth of outlets would still come from state-owned banks. There’s a lot of room for growth. For example, for ICBC, our outlets, the total number of our ICBC outlets only accounted for 5% of ICBC’s total outlets. We would want the 5% number to go up to maybe 7% to 8%.

I would believe there’s still a huge room for growth, maybe a growth of 30% to 40% in terms of new outlets. For the state-owned banks, the case size is relatively lower. In this regard, we would want the case size of the joint stock banks to go up. Case size will remain flat, but the number of outlets will go up, definitely. Now, in terms of team growth, we believe next year will grow by 30%. That is to say the total headcount will grow to 6,200 from the 4,600 this year. The second question about the investment side. First of all, the view on growth stocks, high-growth stocks. I believe we need high-quality growth. China’s growth would rely on the growth of high technology. We need to balance. We need to have a balance. For CPIC, as I mentioned, we have a CSI CPIC active stock fund index.

That is a good tool for us to gauge the different styles so that we can better identify the change of the Asia market, the different styles, what is working, what is not working, etc. We believe we’re going to look at opportunities, especially in terms of science and technology, innovation, energy transition, health and medicine, and the rare resources, etc. You’ll see our comprehensive investment yield was 5.4%, up by 0.4 percentage point. I would say CPIC has already seized upon the high-growth stocks so that our investment return was better than our peers. Going forward, we need to, for example, look at a more prudent way in terms of accounting treatment. As you mentioned, the share of TPL. TPL share, TPL will impact our yearly profit. We have a quite good total investment yield. We have got the trading gains and also the fair value change gains.

This kind of trading gains and the fair value changes made a positive contribution to our 5.2% total investment yield. For insurance companies, the share of TPL needs to be prudent. The share of OCI, the increase of the share of OCI is going to be very likely. We need to have a very balanced strategy between TPL and OCI so that we can, in the long term, better manage liability and assets. Thank you. Let’s welcome the next question. The next question is coming from Morgan Stanley. Thank you. I’m Zhao Yao from Morgan Stanley. I have the question, number one, on life and the other on P&C. As you mentioned, for 2026, your share of health products will improve, will increase. Could you give us some more details on what drives the growth in health products? Are you going to have more new products?

For example, previously, you sold a lot of critical illness products. Second question. For P&C, combined ratio is close to 100% in Q3. Could you give us a breakdown? How much of it is because of the catastrophe? What about other kinds of risks and losses? Thank you. Let me answer your questions. For health insurance products, the share will go up in 2026. That is because we look at the customer needs for health insurance. A lot of big demand in China for health insurance. Also, in terms of the Chinese policy, we look at a lot of high-level policies issued from the Chinese government. A lot of it about the health insurance, about long-term care insurance, etc. All this policy support will give us more opportunity to further develop the health insurance business.

Number one, the release of recent documents gives a lot of big support to the growth of the health insurance business. As you can see, over the past 20 years, I would say this year’s policy support is the biggest in the last 20 years or so. Secondly, apart from government support, we also have this kind of demand from customer needs. As of now, we have already products for disease, medical compensation, disability, long-term care. We also have this kind of differentiated customer development. We have two focuses. Number one, on critical, this kind of a whole life critical illness for both adults and the juveniles. We also have this kind of a term critical illness products. For medical products, we have this kind of mid-end, high-end medical products, and also this kind of medical insurance for clinical diseases, etc.

I would say we have a quite rich product offering in terms of health insurance. Moreover, in terms of our distribution channels, previously, health insurance was sold by agents. They mainly sold CI products, critical illness products. They sell these kinds of CI products to the mass market. To change that, we were going to make some adjustments for the channel. First of all, for 2026, we’re going to do more promotion for CI products. We hope to drive the number, the share of CI sold by agents to 10%. Secondly, we’re going to start selling participating CI products as long as government policy is finalized. Also, we’re going to focus on group health insurance products in 2026. That will be another area of focus for CPIC. The Chinese government has also made a policy encouragement in terms of long-term care health insurance products.

This will have also some influence on the selling of health insurance from the group channel. Thirdly, we are going to promote sales of health insurance through the internet. I mean, the internet can reach out to a lot of people. Fourthly, the bank channel will also be utilized to sell health insurance because we have a lot of private bank outlets. These customers, they have a big demand for high-end health insurance products. Thank you. I hope that answered your question. What about Q3’s combined ratio? Some challenges. Number one, new energy vehicle, there’s still some uncertainty on that in terms of the combined ratio. Of course, we are making some innovations to reduce the combined ratio of the new energy vehicle business. If we look at the results, we have profitability for the new energy vehicles owned by households.

On the whole, we are still making a small loss. The credit guarantee business also gave us a negative impact at around 2% to 2.5% in terms of the combined ratio. Going forward, we will continue to better manage this kind of business quality. If we look at the whole year, we believe the whole year combined ratio can continue to improve. Let’s welcome the next question. Thank you for your presentation. I have two questions. As you mentioned, next year, health insurance business next year will be sold by agency. What about your agency headcount and the productivity? Because we know the race-fighting integrity regulation is having a big impact. We would like to learn more about your agency channel. That’s number one, question number one. As you mentioned, our 10-year interest rate is still going down slowly. What’s your bond investment strategy? What’s your allocation?

Are you going to extend your asset duration to narrow the gap? You also mentioned that you’re using the trading of bonds to increase the investment yield. How are you doing on that front? Let me answer your first question. I would say, on the whole, for this year, for the agency channel, in terms of the overall growth, in terms of total headcount, it’s on par with last year compared to, well, compared to last year. Pretty much the same. That’s on the total headcount. If we look at the structure of the agency this year, our core agents, the productivity, and also income, I mean, in terms of the income, that is 71,000, up by 16%. The quality of our new agents also improved. In the first three quarters, if we look at the new agents, we see a growth of the number of new recruits.

We believe, going forward, the total headcount would stabilize and remain at a reasonable level. Let me share with you some more specific numbers. As I mentioned, if we look at the core agents, for the first nine months, the average first-year premium is growing quarter by quarter. For example, for Q3, the per agent first-year premium for new business grew by 11%. I would say, on the whole, the per agent productivity is improving. I believe we back the trend compared to our peers because in Q1, they are experiencing a lot of negative growth. We grew quarter by quarter, but it’s not the same for our peers. In Q3, we actually recorded double-digit growth in terms of core agents. The mid-tier agents also demonstrate the same trend.

Going forward next year, I believe it will stabilize in terms of total headcount and production and the share of core agents. The productivity of core agents will both go up. Thank you. Let me answer your bond investment strategy. First of all, how should we view the duration gap? Of course, the duration gap is a core issue, a core KPI for asset-liability matching. Previously, we pursued a dumbbell investment strategy. Actually, our duration gap is already at a reasonable level, be it an adjusted duration gap and effective duration gap. We should mainly look at the effective duration gap. Now, why should I say that it’s a reasonable level? Because if we pursue a zero duration gap, it’s not necessarily the best policy to fend off long-term duration risks because it basically eliminates the possibility of getting higher yield from the duration gap.

As I mentioned, given the level of interest rate in China, when it goes down, invariably, there will be some kind of an uptick or recovery. We believe these are opportunities, pockets of opportunities for us to conduct TAA, be it credit bonds or interest rate bonds. We would seize upon these kinds of phasal opportunities. Of course, we are trying to explore the various trading policies, trading strategies for bond assets so as to seize upon this kind of phasal opportunities. As we mentioned, in terms of ETF funds, it might be a good direction for investment so that we can utilize this kind of very good bond investment capabilities on the market so as to make up for our own shortcomings. Thank you. Let’s welcome the next question. Thank you. Thank you for the opportunity. I have two questions.

The OPAT for the first nine months, or is it, is there any changes for the OPAT? And secondly, about the whole year’s dividend payout ratio, what’s your take on that? Because you have very good net profit. For your core solvency ratio for CPIC Life, it’s going to go down to probably just above 110% in Q4. It may be because of the low interest rate in China. Anyway, your core solvency ratio, maybe could you elaborate on that? Let me answer your first question. As of the end of Q3, OPAT grew by 7.4% year-on-year, and actually, it was up by 0.3 pts compared to Q2. The absolute number of OPAT is ¥28 billion. It’s because we are doing very good in terms of business control and also in terms of risk reduction.

For life, given this kind of, given our efforts to control the cost and improve our business quality, our profitability is improving. We believe it will continue so that both P&C and Life will contribute positively to OPAT. In terms of dividend for 2025, I believe the board has already announced our strategy. It will be based on OPAT. It will also look at our business performance and also our solvency and also pay attention to the capital market so that we can give investors returns which are more in line with their expectations. On the solvency issue, let me give you a brief answer. Thank you for your concern. For solvency ratio, core solvency ratio is a very important indicator for our long-term business performance. We pay close attention to the core solvency ratio number. We have already formulated the plans.

We are going to, not only be supported by the group CPIC Life, we’ll also pay close attention to improve. Let me just add, the regulators are refining the planning plans for CROSS Phase II. For CPIC Life, as of now, I believe we are on a positive trend, positive track. As you have noticed, we have issued convertible bonds to the tune of ¥15 billion. The group solvency ratio is already still very high. Based on our judgment of the market, we believe, and also considering the need for future development, we issued this bond to replenish our capital. We issued this kind of convertible bonds, which is quite convertible securities, convertible shares. It’s quite a popular move for the market. I believe this is also positive for the capital needs for our subsidiaries. In the interest time, we can only allow for one last question.

The last question comes from Guangdong Development Securities. Thank you for the opportunity to ask questions. I have two questions. Number one, on asset, and the other on the liability side. As you mentioned, in 2026, the regular premium business will grow by maybe 10%. In Q3, we see a termination of old products. Now, can you maintain growth on top of the high baseline in Q3 this year? Why can it grow? Is it because of the demand from customers, or is it because of the team’s capability? That’s number one. Secondly, as we can see, for the first three quarters, your net investment yield dropped by 0.3%. What is the reason? Is it because of a new investment reinvestment? What about the future, the future trend for the net investment yield? Thank you. Thank you for your question.

Let me just share with you some of our outlook and the reasons for our outlook. First of all, if we look at our business model to promote our agency channel, we are different from peers. Maybe peers are product-oriented or team-oriented, but we focus on product and channel and also customer needs. We focus on six factors. Number one, total headcount. We believe for the grand opening, the total headcount will be the same next year versus this year. I believe we will be the same for the whole industry. Second factor is whether we can reach out to more customers. We believe our agents will be able to reach out to slightly more customers next year. Thirdly, conversion ratio. Of course, this will take a lot of training, long-term training, and skills, a lot of skills. We believe conversion ratio will grow up slowly.

It’s not a quick fix. The fourth factor is the number of cases sold by agents. This will be a focus for 2026. If we look at our existing customers, we have 90 million existing customers. Upsell will be a focus for next year. Fifthly, case size. A priority of CPIC Life is to move up the ladder of customer development. The share of mid to high-end customers is moving up. From Q2 and Q3, you can see the share and the case size of our mid and high-end customers are going up. We believe case size will grow up quite fast next year. The sixth factor is the new business margin. I believe five of the factors remain flat, stable, and the case size will go up quite considerably next year. That is why we believe we can have a 5% to 10% growth.

Thank you for your question on net investment yield. I believe we, given this kind of low interest rate environment, are taking active measures so as to be able to cross economic cycles. This is a key of our efforts. China Pacific Insurance (Group) Co Ltd pays a lot of attention to the stability of all kinds of investment yields. We need to, of course, maintain stableness of a net investment yield. The 10-year treasury bond, 10-year interest rate went down a lot in the last five years. The fixed income, I mean, new investment of fixed income assets is, of course, much lower than the existing yield from existing fixed income assets. To cope with this kind of negative impact, we are taking a lot of measures. First of all, we are extending our allocation into long-term bonds.

Secondly, we are seeking opportunities for this kind of rebound and also utilizing ABS and REITs, this kind of innovative fixed income type assets. We are one of the few insurance companies that have a qualification for ABS and REITs license. We also have an investment arm in Hong Kong. Given this kind of diversified investment capabilities, we can maintain our position, leading position on the market. Our dividend payout ratio is also good. We remain confident about the proper management of our investment assets. That ends the session for today. If you have other questions, please contact our IR team after the meeting. Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.