China’s PICC Property & Casualty Group reported higher full-year 2025 net income, driven by strong motor vehicle insurance results, even as its liability, agriculture, and commercial property segments posted underwriting losses, according to its annual report.

Profit for the year rose to 40.38 billion yuan ($5.85 billion) from 32.16 billion yuan in the prior year. Insurance revenue climbed to 511.59 billion yuan from 485.22 billion yuan, a 5.4% increase. The group’s combined ratio improved to 97.5 from 98.8. PICC said underwriting profit advanced 119.4% for the year.

“We pursued steady progress with improvement in operating results,” chairwoman Ding Xiangqun stated. “In 2025, faced with a complex and challenging development environment, the company rose to the challenge and pressed ahead, strengthening our core functions and competitiveness, withstanding multiple risks and tests, and delivering development results that were steady and improving.”

Business performance

Motor vehicle insurance revenue rose 3.6%, while underwriting profit increased 53.6%. The segment’s combined ratio improved by 1.5 points to 95.3, AM Best reported.

Ding said PICC boosted domestic demand and consumption as it insured 15.56 million new energy vehicles, up 34.3% in 2025. Businesses for new citizens, internet, new energy vehicle extended warranty, and intelligent-assisted driving developed rapidly.

In liability insurance, revenue rose 3.7%, while the combined ratio improved to 104.5 from 105.2. The group said it optimized its operational strategy and strengthened control over high-risk products. It also noted it prioritised governance of claims in major lines, deepened expense control, strengthened risk selection and pricing capabilities, and sought quality improvement.

Commercial property insurance improved its combined ratio to 101.0 from 113.4, as insurance revenue rose 5.7%.

In science and technology, Ding said PICC launched nine dedicated products in key areas, including computing chain insurance, and strengthened risk protection for commercial aerospace, the low-altitude economy, energy storage, and other emerging fields.

The group also developed insurance products for service sectors including culture, tourism, sports, and performances, with premium income for cultural and tourism insurance rising 14.7%, Ding said.

Regional and global expansion

To support coordinated regional development, PICC said it had created four cross-regional leadership teams serving the Beijing-Tianjin-Hebei, Yangtze River Delta, Guangdong-Hong Kong-Macao, and Chengdu-Chongqing regions.

The group advanced the development of three centers in Shanghai for shipping insurance, technology insurance, and reinsurance, as well as a technology insurance sub-center. Ding said PICC developed integrated “finance + shipping” services for the operation of the world’s first China-Europe Arctic Express route and provided coverage for Chinese overseas interests in 149 countries and regions.