Life insurance companies' "profit wave" B side: Over 60% experience decline in net assets

As insurance companies enter their strongest profit year, their net assets are generally showing a downward trend. According to the latest solvency reports from 57 non-listed life insurance companies compiled by Securities Times reporters, as of the end of 2025, the total net assets of these 57 non-listed life insurance companies are approximately 438.1 billion yuan, a decrease of 2.9% compared to the end of 2024. Among these 57 companies, 36 have experienced a decline in net assets, accounting for over 60%. An industry insider stated that analyzing the performance of life insurance companies requires considering both net profit and net assets. In the past two years, under the new accounting standards, life insurance companies have shown more favorable net profit performance, but under the old standards, reserve factors that dragged down profits have largely shifted to net assets, resulting in greater fluctuations in net assets. Industry experts say that the new accounting standards place greater emphasis on the asset-liability linkage of insurance companies. During the transition period and subsequent adjustments to the accounting standards, how to better balance various assets, improve the linkage between assets and liabilities, and keep profit and net asset fluctuations within relatively sustainable and predictable ranges are challenges that insurance companies need to address. (People’s Financial News)