10 billion yuan! This "property insurance giant" reveals the scale of long-term capital entering the market

Recently, PICC Group held a third-quarter performance briefing.

Executives from this leading Chinese property and casualty insurance giant attended the meeting to engage in in-depth discussions with domestic and foreign investors, covering not only the layout of various insurance products but also new developments in secondary market investment business.

PICC Group has responded to the entry of long-term funds into the market and has specifically established a private equity fund platform aimed at the stock market, with the source and scale of the first phase of funding already determined.

Zhitang has organized the content of this briefing as follows for readers.

Equity and Debt Allocation Strategy

Property and casualty insurance has no funding cost for liabilities, with a short liability duration, allowing for more flexible allocation.

In terms of fixed income investments, the company will continue to adopt a flexible duration strategy, allocating to interest rate bonds opportunistically based on market conditions; it will maintain high credit rating standards and selectively allocate quality varieties.

In terms of equity investments, the company will stabilize equity positions, enrich equity investment strategies, continue to allocate high-dividend varieties opportunistically, and actively seize investment opportunities in high-growth varieties, enhancing returns through swing trading; it will select equity projects and actively promote the company's industrial investment layout.

Anticipating Bond Market Fluctuations

We believe that after the risk appetite in the equity market has risen and the distortions in the yield curve have been corrected, the bond market will be in a state of fluctuation for a certain period in the future. We believe that the current trend of China's economy continues to improve steadily.

Details of Private Equity Platform Operations

Currently, PICC Asset's "PICC Qiyuan Huizhong (Beijing) Private Fund Management Co., Ltd." has been officially established. Subsequently, it will issue contract-type private securities investment funds, with PICC Life Insurance as the sole holder, and the initial investment scale is expected to be 10 billion yuan.

This fund, as a pilot fund for long-term stock investments, will balance portfolio stability and reasonable return targets, pursuing medium- to long-term stable appreciation of fund assets under the premise of scientifically managing risks.

Profit Outlook for Auto Insurance Business

In the first three quarters of 2025, the company's comprehensive cost ratio has significantly improved year-on-year.

Specific measures include: first, strictly implementing the requirement for unified reporting and operation, taking the lead in maintaining market order, and strictly controlling expenses, resulting in a significant year-on-year decrease in expense ratio.

Second, continuously optimizing the business structure and strengthening underwriting and claims management, with business quality steadily improving. The proportion of personal auto insurance and the renewal rate of auto insurance have both increased year-on-year; the company has iteratively launched risk pricing models and underwriting policies for key areas, continuously promoting comprehensive governance of high-risk businesses; and deepening risk reduction services.

Third, accelerating digital transformation, enhancing risk control and operational efficiency.

The company will continue to adhere to the high-quality development of the auto insurance business, further strengthen risk selection, optimize the business structure, and expects that the auto insurance business will maintain profitability and continue to outperform the industry.

Discussion on Agricultural Insurance and Liability Insurance Business

In terms of agricultural insurance, the company will closely monitor business opportunities in the future, strengthen source management, and improve the central subsidy crop coverage and preservation rates; it will promote the expansion and innovation of local characteristic insurance in conjunction with the regional layout and development focus of local specialty agricultural products.

It is expected that the agricultural insurance business will grow steadily in the future, continuing to maintain healthy and stable operating results In terms of liability insurance, the company will continuously activate new momentum for high-quality development, expand new space for high-quality development, and shape new advantages for high-quality development. In the future, as the company's professional service capabilities and refined management levels continue to improve, the governance effectiveness of high-loss liability insurance business will gradually become apparent.

Insurance Products in Frontier Fields

The company has the largest customer base and possesses rich data information, supporting the company's risk pricing to stay ahead, with the overall profitability level of new energy vehicles significantly better than the market average.

The company actively promotes research on relevant insurance products in frontier fields, continuously strengthens cooperation with manufacturers in exploring new risk protection demand scenarios, enhances product development innovation, and actively responds to new protection demands from the market and customers.

From January to September 2025, the company achieved rapid growth in its overseas business in China, with profitable underwriting. The overseas interests business in China has established long-term cooperative relationships with international insurance and reinsurance entities, improving the coverage of services such as underwriting, claims, and legal support for overseas interests in China, and actively building a global risk diversification and sharing mechanism for overseas interests in China.

Regarding new energy vehicle companies entering the property insurance sector, as the largest entity in the market, the company actively fulfills its responsibilities as a central financial enterprise, takes the lead in implementing guiding opinions, strategically develops new energy vehicle insurance, and proactively serves the country's green transformation and the development of the real economy. With the rapid growth of premiums for new energy vehicles, the company will continue to strengthen its pricing capabilities for new energy vehicle insurance, enhance risk selection, optimize business structure, maintain profitability bottom line, and ensure that new energy vehicle insurance maintains a reasonable level of profitability