Earnings Overview#

New China Life Insurance has released its fourth-quarter earnings for 2025, revealing that it did not meet expectations for earnings per share (EPS). The company reported an EPS of 1.1 USD, which was significantly lower than the anticipated 1.96 USD. This shortfall resulted in a negative surprise of -43.88%, leading to a 2.82% decline in the company’s stock price, which closed at 45.46 USD after the announcement.

Company Performance#

Despite the earnings miss, New China Life Insurance achieved impressive growth in 2025. The company reached record levels in several key areas, including premium income and profitability. It reported a net profit of 36.3 billion CNY, marking a 38.3% increase from the previous year, and operating revenue of 157.8 billion CNY, up 19% year-over-year. This growth was attributed to strategic changes and successful product innovations.

Financial Highlights#

  • Revenue: 157.8 billion CNY, a 19% increase from last year
  • Net Profit: 36.3 billion CNY, a 38.3% increase year-over-year
  • Return on Equity (ROE): 34.7%, up 8.8 percentage points from the previous year
  • Gross Written Premium (GWP): 195.9 billion CNY, a 14.9% increase year-over-year

Market Reaction#

Following the earnings report, New China Life Insurance’s stock fell by 2.82%, reflecting investor concern over the earnings miss. This decline is directly linked to the disappointing EPS results. However, the stock is trading at a price-to-earnings (P/E) ratio of 5.38 and a low price/earnings growth (PEG) ratio of 0.13, suggesting it may be attractively priced compared to its growth potential. The company also boasts a strong dividend yield of 5.94%, having consistently paid dividends for 12 years.

Outlook#

Looking forward, New China Life Insurance has set an EPS forecast of 1.57 USD for FY2026 and 1.41 USD for FY2027. Despite the recent earnings miss, the company remains positive about its strategic initiatives and product innovations, which are expected to support future growth.