NCI Pension 2025 Year-End Review: Improved Solvency and Stable Bank Insurance Channels

In the low-interest-rate environment that continues to squeeze the profit margins of the insurance industry in 2025, Xinhua Pension Insurance, as a professional pension insurance company, has delivered a "brilliant" solvency report. As of the end of the fourth quarter of 2025, Xinhua Pension's core solvency adequacy ratio reached 993.78%, and the comprehensive solvency adequacy ratio reached 1023.95%; Compared to the third quarter, the two indicators increased by 46.44 and 53.35 percentage points, respectively. The improvement in Xinhua Pension's solvency was not due to shareholder injections. The management of Xinhua Pension admitted in the report that the increased actual capital of 318 million yuan mainly came from "net assets and future policy surpluses," while the company's minimum capital only slightly increased by 3.72 million yuan during business expansion. It is noteworthy that in the fourth quarter of 2025, the net cash flow from operating activities' adverse deviation rate soared from 1.96% in the previous quarter to 291.03%; The significant deviation, combined with the company's premium growth rate of 151.99% year-on-year, reflects that the company may have adopted a relatively aggressive customer acquisition strategy; This strategy may lead to cash inflows far exceeding expectations, but it also exposes its lack of precision in controlling the pace of business. On the investment side, Xinhua Pension has been relatively cautious, with a cumulative investment return rate of 3.50% in 2025, outperforming the three-year average of 2.65%; By the end of the fourth quarter, the proportion of cash and liquidity management tools surged from 0.64% to 9.77%, reflecting the management's heightened vigilance regarding market fluctuations in 2026. By significantly increasing the cash proportion, the company has locked in profits for 2025 while also leaving ample ammunition to cope with potential surrender risks in the following year. The channel structure shows a clear "double-edged sword" effect. In 2025, among Xinhua Pension's 2.198 billion yuan in signed premiums, the bancassurance channel contributed 1.682 billion yuan, stabilizing the base; however, the internet channel contributed 503 million yuan, which brought significant volatility risk. Taking "Xinhua Pension Fortune B (Internet)" as an example, its quarterly surrender rate reached 14.52%. Although internet products acquire customers very quickly, customer loyalty is extremely low, leading to an overall comprehensive surrender rate that, while still at a low level of 0.63%, has shown an upward trend that is hard to ignore. Overall, Xinhua Pension demonstrated a strong ability for capital self-repair in 2025, while the 291% cash flow adverse deviation and the surrender volatility from the internet channel also indicate that the company is still in a transitional period. How to digest this massive liquidity asset and convert it into long-term revenue anchors may become the core proposition for Xinhua Pension in 2026