Guolian Minsheng Securities: The deposit ratio of the insurance industry has significantly increased, while the proportion of equity assets has marginally decreased.

Guolian Minsheng Securities released a research report stating that looking forward to 2026, asset-liability resonance is expected to support the continued recovery of insurance valuation. For the liability side, the bank expects dividend insurance to attract some of the residents' "flexible storage" funds, and the improvement in dividend insurance sales is expected to support the growth of life insurance new business premiums and NBV. Property insurance policies implementing "separate underwriting and claims handling" and actively optimizing business structures are expected to drive property insurance CORs gradually improving. On the asset side, under the guidance of regulatory capital market bull markets and declining marginal narrowing of long-term interest rates, insurance companies' investment income is expected to continue to improve. The main points of Guolian Minsheng Securities are as follows: The scale of insurance funds shows a continuous growth trend, with life insurance companies accounting for an absolute proportion As of the end of Q4 2025, the balance of insurance funds was 38.5 trillion yuan, an increase of 15.7% compared to the end of Q4 2024, and an increase of 2.7% compared to the end of Q3 2025, continuing the growth trend of insurance funds. By industry, as of the end of Q4 2025, the balance of funds utilized by life insurance and property insurance companies was 34.7 trillion yuan and 2.4 trillion yuan, respectively, an increase of 15.7% and 8.8% compared to the end of Q4 2024, and 2.8% and 1.2% compared to the end of Q3 2025. Among them, the balance of funds utilized by life insurance companies grew faster, mainly due to the strong demand for residents' "flexible storage" and the reduction in the preset interest rate of life insurance products, which drove the concentrated release of customer demand, thereby promoting the growth of life insurance premium income. In terms of structure, as of the end of Q4 2025, the balance of funds utilized by life insurance and property insurance companies accounted for 90.1% and 6.3% of the total insurance funds, an increase of 0.1% and -0.1% respectively compared to the end of Q3 2025, with life insurance companies occupying the absolute proportion. Life insurance companies marginally increase deposits and bonds, while the proportion of equity assets decreases As of the end of Q4 2025, the size of fixed-income assets (bank deposits + bonds) and equity assets (stocks + funds + long-term stock investments) allocated by life insurance companies was 20.37 trillion yuan and 7.98 trillion yuan, respectively, an increase of 3.4% and 1.2% compared to the end of Q3 2025. In terms of the proportion of allocation, the allocation of fixed-income assets and equity assets by life insurance companies accounted for 58.8% and 23.0% of the balance of funds utilized by life insurance companies, an increase of 0.4% and -0.3% respectively compared to the end of Q3 2025. Among them, bank deposits, bonds, stocks, funds, and long-term stock investments accounted for 7.6%, 51.1%, 10.1%, 5.1%, and 7.8% of the balance of funds utilized by life insurance companies, an increase of 0.3%, 0.1%, a slight decrease due to the higher volatility in the equity market in Q4 2025, life insurance companies increased their allocation of fixed-income assets to stabilize investment returns. Property insurance companies marginally increase deposits and stocks, while the proportion of funds and long-term stock investments decreases As of the end of Q4 2025, the size of fixed-income assets (bank deposits + bonds) and equity assets (stocks + funds + long-term stock investments) allocated by property insurance companies was 1.37 trillion yuan and 0.55 trillion yuan, an increase of 1.9% and 0.3% compared to the end of Q3 2025. In terms of the proportion of allocation, the allocation of fixed-income assets and equity assets by property insurance companies accounted for 56.7% and 22.9% of the balance of funds utilized by property insurance companies, an increase of 0.4% and -0.2% respectively compared to the end of Q3 2025. Among them, bank deposits, bonds, stocks, funds, and long-term stock investments accounted for 16.1%, 40.6%, 9.4%, 7.8%, and 5.8% of the balance of funds utilized by property insurance companies, an increase of 0.4%, a slight decrease in the marginal proportion of funds and long-term stock investments, the bank anticipates that this is mainly due to the peak of year-end claims making property insurance companies have a greater demand for highly liquid assets, regulatory optimization of solvency risk factors to attract insurance funds to enter the market, the increased volatility in equity markets in Q4 2025 making the fluctuation of funds greater, a common driving force. Risk warning: Economic recovery falls short of expectations, long-term interest rates decline, and capital market volatility intensifies.