Equity investment contributes greatly! SUNSHINE INS financial report has "great potential"

Recently, two subsidiaries of SUNSHINE INSURANCE—SUNSHINE LIFE and SUNSHINE PROPERTY INSURANCE—disclosed their financial data for the first nine months of this year.

The announcement shows that SUNSHINE LIFE and SUNSHINE PROPERTY INSURANCE achieved a year-on-year net profit growth of 3.4% and 81.9% respectively in the first three quarters of 2025, mainly driven by improved investment performance.

It is noteworthy that SUNSHINE INSURANCE did not disclose a quarterly report but instead released the solvency reports and the latest financial reports of the two subsidiaries on its official website.

According to reports, SUNSHINE INSURANCE GROUP was listed on the Hong Kong Stock Exchange in December 2022 and has several specialized subsidiaries in property insurance, life insurance, credit, asset management, healthcare, pension, and technology.

Significant Growth in Investment Income

A breakdown of the financial report reveals that in the first nine months of this year, SUNSHINE LIFE's investment income was approximately 18.23 billion yuan, a year-on-year increase of 24.7%, while SUNSHINE PROPERTY INSURANCE's investment income was approximately 2.54 billion yuan, a year-on-year increase of 45.0%.

Next, let's look at the fundamentals of the two subsidiaries: In the first three quarters, SUNSHINE LIFE achieved total operating revenue of 33.05 billion yuan, a year-on-year increase of 14.0%, and a net profit of 5.25 billion yuan, a year-on-year increase of 3.4%. SUNSHINE PROPERTY INSURANCE achieved total operating revenue of 38.89 billion yuan, a year-on-year increase of 2.5%, and a net profit of 1.66 billion yuan, a year-on-year increase of 81.9%.

The team from Guolian Minsheng Securities commented: SUNSHINE LIFE benefited from the recovery of the equity market, while SUNSHINE PROPERTY INSURANCE achieved high net profit growth due to the combined push from both the asset and liability sides. Additionally, the company is expected to further reduce liability costs by promoting the sale of participating insurance.

OCI Assets are a Highlight

Zhitang noted that in the investment structure of insurance funds, OCI assets are becoming increasingly critical.

The characteristic of OCI assets is that the market value changes of investments such as stocks are not included in the current profit but are directly reflected in net assets. For insurance funds, this stabilizes profit fluctuations while enhancing capital strength during market upswings.

In the first three quarters of this year, SUNSHINE LIFE and SUNSHINE PROPERTY INSURANCE achieved a total of 20.76 billion yuan in interest income and investment income from fair value changes, a year-on-year increase of 26.8%.

Minsheng Securities analyst Zhang Kaifeng calculated that based on the disclosure of the parent company SUNSHINE INSURANCE's semi-annual report for 2025, the proportion of OCI stocks is significantly higher than that of peers, reaching 71%, while other peers' data are China Ping An 62.1%, China Life 22.6%, China Pacific Insurance 33.8%, New China Life 18.8%, China Property & Casualty Insurance 46.4%, and China Taiping 33.6%.

Based on the above deductions, this analyst believes that the secondary market saw significant gains in the third quarter, while SUNSHINE INSURANCE's subsidiaries accounted for most stocks as FVOCI, with fair value changes recorded in OCI and only dividends counted as current investment income, resulting in net profit not fully reflecting the performance elasticity brought by equity increases