First Internet Insurance Company Financial Results Released! Firmly Bullish on Internet Auto Insurance, Actively Deploying Equity Assets

China’s first internet insurance company releases 2025 performance results.

On March 19, ZhongAn Online released its 2025 annual performance report, showing that in 2025, the company achieved a total premium income of 35.735 billion yuan, a year-on-year increase of 6.9%. Insurance service revenue reached 33.485 billion yuan, up 5.5% year over year. The full-year adjusted net profit attributable to shareholders was 1.8 billion yuan, a rise of 198.3%.

From the insurance segment, the company reported an underwriting profit of 1.412 billion yuan in 2025, a 42.5% increase, marking the fifth consecutive year of underwriting profitability.

At 5 p.m. on the afternoon of the 19th, ZhongAn Online held an online earnings briefing. General Manager and CEO Jiang Xing, along with other management, addressed market concerns regarding business layout this year, consumer finance, auto insurance, investments, AI applications, and more.

Expected Premium Growth Will Still Outpace the Industry This Year

Overall, ZhongAn Online’s core business ecosystem remains steady. In 2025, ZhongAn’s health ecosystem total premiums reached 12.682 billion yuan, up 22.7%. The digital life ecosystem, with total premiums of 15.973 billion yuan, remains the largest, with strong performance in emerging sectors like pet insurance and low-altitude economy. The auto ecosystem is seizing new energy vehicle opportunities, with premiums for new energy car insurance increasing by 206.2% year over year.

Management stated that looking ahead, the company will continue to focus on health insurance, pet insurance, and auto insurance—products with long-term and user value—maintaining high quality and sustainable growth. Given the challenges faced by consumer finance and external environments, the company will further optimize and reduce the scale of this segment. Excluding the short-term impact of consumer finance, overall premiums are expected to continue growing faster than the industry.

Regarding share repurchase plans, management said that the company may implement independent auto insurance operations in the future, including AI-driven initiatives and new market layouts. They hope to generate stable profits under sufficient capital conditions and high growth, so there are no short-term repurchase plans.

Continuing to Shrink Consumer Finance Business

According to disclosures, in 2025, ZhongAn Online’s consumer finance total premiums were 4.32 billion yuan, down 10.6% year over year. This segment accounted for 12.1% of total premiums. From an underwriting perspective, the combined cost ratio increased from 90.1% in 2024 to 97.0%, with the comprehensive loss ratio rising by 6.1 percentage points.

At the earnings briefing, management noted that data shows consumer finance premiums declined by 10.6% in 2025, but the business still achieved underwriting profit, validating the timely and effective adjustment strategies. In 2026, the company will continue to deepen efforts, shrinking the business scale through multi-dimensional mechanized operations and risk control measures, while maintaining asset quality.

Firm Confidence in Internet Auto Insurance

In 2025, ZhongAn’s auto ecosystem total premiums grew by 34.6% year over year, with premiums for new energy vehicle insurance increasing over 200%, accounting for 28% of auto premiums. The company also achieved independent operation of compulsory traffic insurance in Shanghai and Zhejiang.

During the earnings presentation, management expressed confidence that the internet auto insurance market will continue to grow. Currently, online penetration in the auto insurance market is about 60%, leaving significant room for expansion. The team remains optimistic about the prospects of internet auto insurance.

They plan to continue leveraging technology to steadily advance auto insurance. Last year, the company took its first steps toward independent auto insurance operations, with successful pilots in Shanghai and Zhejiang. Moving forward, they hope for greater regulatory support to expand into more regions.

Active Layout in Equity Assets

As of December 31, 2025, ZhongAn Online’s domestic insurance fund investment assets totaled approximately 40.302 billion yuan. Of these, fixed income investments amounted to 28.248 billion yuan, representing 70.0% (with bonds and bond funds making up 60.4%). Equity and equity funds totaled 3.639 billion yuan, accounting for 9.1%.

Benefiting from a rebound in capital markets, the company’s total investment income for 2025 was 2.124 billion yuan, a 59.1% increase from 1.335 billion yuan in 2024. Net investment income was 1.768 billion yuan.

Regarding investment strategy, management stated that the overall asset allocation adheres to a low-risk, fixed-income core strategy aimed at stable returns, balancing long-term steady assets with short-term market opportunities to achieve risk-return balance.

They also emphasized that in 2026, the company will continue to follow a prudent investment philosophy, adjusting asset allocation flexibly based on macroeconomic conditions and risk-return characteristics of various assets.

In fixed income, the company maintains strict credit risk controls, actively seeks excess returns through asset and bond selection, primarily invests in high-credit products, and will adjust allocations based on interest rate trends. They also employ trading strategies to seize market opportunities and enhance yields.

In equities, as of December 31, 2025, the proportion of equity assets increased by three percentage points to 9%. The company plans to continue confidence in China’s economy and actively allocate equity assets. In 2025, major allocations focused on growth sectors; in 2026, they will pursue a balanced approach emphasizing high-dividend and growth sectors, aligned with risk control standards.

ZhongAn Bank Turns Profitable for the First Time

In 2025, ZhongAn’s international business achieved key breakthroughs.

ZhongAn International’s subsidiary, Hong Kong Digital Bank ZhongAn Bank, became one of Hong Kong’s first licensed digital banks in 2019 and officially launched in 2020. In 2025, ZhongAn Bank became Hong Kong’s first digital bank with over 1 million retail customers and achieved its first annual profit, with a net profit of HKD 17.27 million, net interest margin rising to 2.69%, and cost-to-income ratio improving to 77.7%.

Management stated that as user scale stabilizes and grows, the company will continue launching new products and features, including gamified interactive experiences, to further boost user engagement and active user ratios. They aim to attract more high-quality customers and enrich the product matrix, creating a closed loop from daily fund management to investment, driving continuous growth in users and service quality.

AI Strategy as a Key Initiative

Since its founding in 2013, ZhongAn Online has made AI a core technological gene, deeply investing in the field. Currently, AI technology is integrated across product design, underwriting, claims, and full process chains. Automation of health insurance claim reviews exceeds 45%, and over 50% of auto ecosystem cases are processed via video “instant claims.” In 2025, ZhongAn continued to deepen its “One AI” strategy, with the AI platform “ZhongYouLingxi” becoming a core engine for business transformation, with over 2 billion large model calls annually.

At the earnings briefing, Jiang Xing addressed the impact of AI on the insurance industry and company deployment. He stated that for insurers, AI is not a disruptor but an enabler.

“New technology itself is not a barrier; transforming it into business scale and profit is the real moat and core competitiveness,” Jiang Xing said. Regarding AI applications, ZhongAn emphasizes cost-effective technological investment, focusing on scenarios that create real value. From this perspective, rapid AI deployment is not just about technology but also about continuously evolving organizational structures and supply systems, involving cultural and organizational adjustments.

Jiang Xing noted that AI strategy is somewhat a top-down initiative. The company will always regard AI as a core capability, not just a tool, advancing technological innovation under compliance and safety conditions. While actively leveraging AI dividends, they will also maintain a firm risk bottom line, pushing the company toward more efficient, inclusive, and sustainable development.

Layout: Wang Yunpeng

Proofreading: Xu Xin