China’s insurance sector maintained a steady growth in 2025 and the first quarter of 2026 (“1Q2026”), supported by resilient demand, expanding asset base, and adequate solvency. The insurance market remains highly concentrated, with leading insurers benefiting from stronger brands, distribution networks, capital positions, investment capabilities, and risk management.
We expect that the insurance sector’s credit risk to remain stable over the next 12 months. Nevertheless, pressure from low interest rates, limited long-duration high-quality assets, capital market volatility, tighter regulations, and the full implementation of new accounting standards will widen the gap between top insurers and small and medium insurers, with the latter remaining more exposed to earnings volatility and capital replenishment constraints.