Distinguished investors, analysts, media friends, good morning. Welcome to 2025 China Reinsurance (Group) Corporate Group result announcement. I'm the host, Assistant to the Chairman and the Secretary of the Board, Mr. Cao. Today, please allow me to introduce the management with us today. They are Board of Director, Mr. Zhuang Qianzhi. Vice Chairman, Mr. Li, who is also the Chairman of China Dadi Property Insurance Co, Ltd. Vice Chairman, Life Insurance Director, Mr. Qian Meihan. Investment Officer, Mr. Li Wei. Mr. Ruan Zhongyao. The result announcement will cover two parts. To begin with, the management will go through the performance of 2025.
Mr. Zhuang will cover the overview and the outlook. Mr. Ruan, Mr. Qian, and Mr. Li , and Mr. Li will one by one go through the performance of each segment. The second part is the Q&A session. The questions of your concern will be covered. Now let's go to the first part. I pass the floor. Mr. Zhuang. Mr. Zhuang, the floor is yours.
Distinguished investors, analysts, media friends, good morning. Welcome to China Reinsurance (Group) Corporate 2025 result announcement. The external situation is complicated. Our company is committed to be the top-of-the-notch company of this kind in the world. We want to be stable but also progressive, and speed up the development. As a result, the quality is up and the resilience is building up. I'd like to cover the administration and the implementation of the strategy. In 2025, what we have done. First, the performance of the operation has been improved. In 2025, our company committed to the large development with efficiency and effectiveness. This is the principle. The volume and the quality are both improved. According to the consistent measures, the combined premium and the profits to the parent company hit the record high.
The combined premium is RMB 186 billion. Profits to the parent company is RMB 9.7 billion, comparatively up 38%. At different business segments, the performance grows stably and the property insurance accounts, 43% of the total profit. Life insurance profits accounts 33.1% of the total profit, and the property insurance and director insurance account 10.7% of the total profit. The total asset of the group is RMB 527 billion, up 3.8%. Equity in total was RMB 119 billion, up 5.9%. And we emphasize the return to the shareholders. In 2025, our group dividend per share is RMB 0.0691. Second, we are serving the national strategy and bringing something new. We make the best of the insurance and the reinsurance measures and to implement national strategies in five major areas. We support innovation, technology, green transformation, and the public well-beings. We provide the products of insurance in these regards.
In 2025, for the finance service in total, we offered a large amount of the products and serve SMEs in total 1,013, and public well-being insurance covered in total 300 million times per person. So I promote the reinsurance market development, and we are consolidating as a leader in this industry. Our market share in property life insurance are both the number one in the industry, and we are developing the discipline of the market. We set it up the Shanghai Reinsurance Conference, and for four years we've published the industry report. We joined in the national regulation revision and the standard-making process of the country. We support Shanghai's International Reinsurance Center development. We have three operation centers and the subsidiaries in Shanghai. The total trading and settlement volume in those center and the subsidiary are both the number one in this industry.
We focused on the system development and offer more measures to implement the strategy of the disaster coverage. The coverage has been expanding. We in-depth joined in the strategic and policy disaster relief efforts. We added the asset to those business segments incorporating CSCEC. We set it up the risk map in China. Over 30 companies use our products. We focus on the climate change risks. We started up the research center for climate changes. We set it up the strategies for climate changes. International symposium are set it up on this topic as well. For the first time, the supervision platform has made. Third, we serve the Belt and Road Initiative. The consortium of Belt and Road in China was made under our leadership. The membership base expands from 11- 14. Coverage are expanded. We have 230 underwriting projects.
The assets under our service was over RMB 250 billion. Capacity keep increasing. For three years, we keep growing up. We cover the property insurance offshore for Chinese entities. Service level has been growing. Belt and Road green principle are implemented. We actively do monitor the risk at the offshore market. We also evaluate the risk for terrorism and the geopolitical risks. International operation offers some good results. By 2025, the company accumulated the total premium from offshore markets, accounting 28% of the total. It covers 28 countries. Business covers over 200 regions or countries. 100 corporate partners are working with us. The efficiency has been improved. The overall size are growing steadily. Overseas premium income was RMB 39 billion year-on-year. It was the four times up. Overseas profit of our insurance business grew nine times. Overseas business at different platform are making money, are profitable.
After incorporating with Chaucer for seven years, the operation is going up. Premium and profit doubled. It is the synergy effect with Chinese business and Chinese entities. Subsidiaries in Singapore optimized its structure. For three years, it was profiting. China Reinsurance life insurance in Hong Kong premium made a record high. Asset and the size of the business grew up. Asset under management make a record high. The profit of investment made a record high for five years. In June 2026, we were awarded as the first in domestic China as the active insurer. International endeavor and development has been highly recognized by the regulators both at home and abroad.
Digital transformation is speeding up. Technology empowers this transformation. We have IDI and the platform. In total, the related premium was over RMB 6 million. Some other platform were completed, like the insurance and healthcare. The business associated was RMB 2.4 million.
We have the combined risk management system that offers the supervision and decision-making support for related business. Dadi digital platform were completed. This platform supports the business valued RMB 14.5 billion. Digital governance is getting into being. We have the catalog and categorization system and the stock counting system. This system is centralized. We can make it standardized, modularized, and consistent in quality. The middle office and the operation office are connected with this platform and the data are shared, so the management is driven by digital data. AI Plus scenario is putting into practice. DeepSeek and Qwen are applied in the foundation and agentic application that covers different scenario of the insurance business. The synergy between AI and human beings are maximized. Risk management is also very steady. At different agents of the operation, we have the really high solvency. The property is 229% and the life insurance 200%.
Dadi, their solvency rate is 279. S&P rating A and AM Best rating A. Outlook is stable. Now I pass the floor to the management team to cover different business segments. To begin with, I would like to pass the floor to Mr. Wang, who is in charge of the asset insurance business.
Distinguished investors, media friends, analysts, good morning. It is my great honor to cover the performance of the asset insurance. Look at the domestic business. in 2025, we consolidated the market leader situation and put into practice of the national policy and strategy. Innovation and digitalization are empowering us, and we keep bringing new values to the business. The premium was RMB 440.1 billion, year-on-year 3.5%, and the service income was RMB 19.9, year-on-year 3.2%. It is mainly due to the reduced income that is once off from the agriculture-related products.
In combined terms, the growth is really positive, and the operation is getting more optimized. The ad hoc and non-proportional insurance make the very high-speed development. The growth rate was 18.3 and 100.5. In 2025, under the new guiding principles, the cost ratio was 19.9%. It is up two percentage points. It is mainly because of the loss made of last year. That is why the base of last year was really low last year. In comparable term, I have to say this cost ratio is really stable. We are seeing the opportunity of the market transformation and diving into the emerging markets, and we are developing the key products so the advantage in the emerging area are consolidated. The premium income was up 46.6%. That accounts 11% of the total premium is up 3.4 percentage points.
Among that, the short-term life insurance, disaster insurance, oversea profits insurance, and the green electricity insurance grew tremendously and fasterly. External business or offshore business. In 2025, high quality is the principle. So we keep up the quality of the insurance and the trend of the market, optimize the structure of the business. As a result, the income grew up and the efficiency was also up. The total insurance income was RMB 2.8 billion, up 7.5%. The service income was RMB 25.7 billion, up 10.2%. In the new term, the cost efficiency was down 3.52 percentage points. China was facing the complicated international situation, but the operation efficiency was up and the return of the asset was also high.
The insurance service income was RMB 2.2 billion, up 11.3%. Under the new term, the consolidated cost ratio was 78.5. It is down 5.37 percentage points. In 2025, the return of the asset was 18.1. After the acquisition, the average return rate was 13.4%. That is the business segment performance. Now I pass the floor to Mr. Tian Meipan to give you the idea.
Distinguished investors, ladies and gentlemen, it is my great honor to cover the life insurance and the performance. In 2025, the RMB exchange rate was rather low, but the market was very active and the rate for the US dollar was high. As a result, the growth was really high, but the products was not very diversified. So I think there are a couple of the guidelines from the authorities on encouraging the development of the insurance business. So we are facing both opportunities and challenges, and we seize the opportunities and consolidated our competitiveness. Structure is getting up. In 2025, the life insurance income was RMB 10 billion, up 1.8%, and the premium was RMB 61 billion, down 3.7%.
By lines of the business, the insurance business was RMB 24.2 billion. It is up 1.9%, and we are promoting the new businesses through data analysis and the dynamic supervision. We found the existing business, and we found it up. The financial reinsurance was down 49%, so we ensured the stability. The size of the financial reinsurance is getting down, so we shifted the focus to other business segments, and we implied the latest regulation and ensured the sustainability. I think the business has been growing so fast. We seized the opportunity, especially the saving insurance. The total premium was up 3.31%, and we seized the opportunity to allocate the high-quality assets. The leverage ratio was well managed.
In the meantime, we were active in exploring the opportunity and strategy for the business development. We redefined the saving-based insurance business, and I believe it is the value creator in the new year. We redesigned the development pattern, so we have the combined method. Let me give you some ideas about it. In the latest situation, the insurance income for this business segment is 9.5%. This kind of guarantee-based insurance, like the disease management and other business segments, are performing well above the industry average. We make the breakthroughs on cooperating with different markets and different market participants. We funded out the scam monitor system. We make the best out of the latest national strategies. We have 360 well-being projects and 330 million people were served with this new scheme.
We were actively engaging in the risk of the aging society that covered the long-term care treatment and TCM. We implement the transformation that covers some specialized kinds of the products. We researched the new research and risks. We were very deeply engaged in the infrastructure development and compiled the number four set of the documents, initiated the industry. We emphasize the research capacity. We launched the research results on the latest situation as well as the white book of the medical products and the equipment. This is the business of the life insurance. I would like to pass to Mr. Wang about the asset and property insurance.
Distinguished investors, ladies and gentlemen, good afternoon. Now I would like to cover the asset insurance, the direct insurance that is the Dadi business.
In 2025, we deepened the operation of the products and build up the momentum of both customer service and business development. The foundation is then consolidated, the capacity of profitability is recovering. The high-quality development is brooding up. Speaking of the profits of results of last year, the growth of the premium was over the market. The premium income was RMB 40.8 billion, 4.2%. The insurance income was RMB 48 billion, is up 4.2%. Among that, the car-related business was RMB 26.5 billion, up 3.6%. Non-car business premium income was RMB 22.3 billion, up 2.9%. We were steadily progressing our business and be adaptive to the latest market situation and implement international strategy and macro strategy. As a result, we prepared the coverage for the reserved fund. In the new standard, the combined cost ratio was up 1.5%, excluding those one-off consideration, I mean the provision of the reserved fund.
I think the performance is the best among the 10 years, and we implement the operation. In the car business, it accounts like 50% of the total business, and we were committed to the profit-making business innovation, and we incorporate the family used car and allocate the resources precisely, enhance the profitability. From the different parameters, the renewal rate was 69%, it is up 0.6 percentage points. And the family used car renewal ratio was 7.9%, up 0.8 percentage points. Premium accounts 65% of the total premium, and the underwriting car number was up 2.7%. For the non-car business, the service income was up 0.3 percentage points to 45.7%. The major insurance types are liability insurance up 16.2%. Agriculture insurance was up 9.7%. Corporate asset insurance up 0.4%. Those are the business of my segments.
Now, I will pass the floor to the investment officer, Mr. Li Wei, to brief you the asset management.
Distinguished investors, analysts, media friends, good afternoon, good morning. I would like to cover the asset management. The external situation was very complicated and there were a lot of the uncertainty. Geopolitical differences speeded up the insurance, the supply chain. The recovery was very fluctuating, so the domestic market was under stimulation of the national strategy. I think we are facing a lot of the challenges, but we have the stability. I think it is the top principle, and we combined the allocation and the stability, and we seized the structural opportunities and seized the extra profits. I believe we make the very good performance. By 2025, the investment total amount was RMB 462 billion. On the allocation of the assets, we want to go across the markets and the cycles and want to be diversified. So we make the best of the long-term and patient asset.
Steadily, we enhance the stability allocation. The total portfolio is very balanced. I think for the structure of the asset, the fixed income is 40% and equity is 15%. Investment to associated company 5%, OCI is up 5.9%. I think the structure of the assets are getting better and the portfolio is more stable. Speaking of the fixed income, as the domestic market is well-studied and figured out the promising products. The bonds in return is up a bit, and the allocation is rather stable. We were flexible in using different strategies on the convertible bonds so that the income is enhanced. And we were facing the differences, the geopolitical risks, and allocate the assets across the markets and currencies. So the profit margin, the profit level was up. Equity investment was centered on the biomedicine and the new manufacturing power as well as AI.
And we researched them well. As the secondary equity, we are trying to complete the diversifying to markets allocation, and we want to strike the balance. The dividend-based investment is the foundation. OCI is expanded for 50% more. We have the absolute return rate guarantee, which are centered on the future promising products and industry, and we want to have some extra profits. Alternative investment was adaptive to the changes of the market and respond to the national strategy, and we were actively joined in the leading fund of the national and even the S fund. By doing so, we support the new quality of the productivity development, and we attach the great importance on the capacity building and complete the risk management and the empowerment of the technology. In 2025, we realized the total income was RMB 118 billion, up year-on-year 4.2%, and the net profit rate was 1.4%.
Our portfolio long-term return rate was consolidated. In the secondary equity market, we seized those opportunity of the structure. The comprehensive return rate was 28.18. It is up the industry average. That contributes some extra of the performance. That is the introduction of the asset management. I would like to pass the floor to Mr. Zhuang for the outlook.
Now, I am going to talk about the outlook for our business. From the basic market situation, China's reinsurance and insurance business is in the crucial period to make up the weaknesses and realize the high-quality development. The Chinese economy is restructuring. There are a lot of the risks associated to that. Insurance and reinsurance are facing the market-driven opportunities and risks. I think in reinsurance is to design the very last remaining issues of this industry. We are going to face the crucial development opportunities.
Those opportunities includes that the market competitive landscape is redeveloping. The agent and the providers are getting more diversified as the group cycle is more complicated. Small and the medium size of the service provider are trying to distinguish. Therefore, it poses the challenges on our operation as the reinsurers. Second, the market risk demand is diversified. Our industry technology is diversified, and China's companies are going abroad and the climate change are getting intensified. As a result, we have diversified demands for the risk management. Technology is developing fastly, thus some business model is transformed. AI and other cutting-edge technology are pushing the development of the insurance business from the traditional one to the digital-driven one. That covers the whole cycles, and we need the whole cycle solution.
Data becomes the crucial production power, and the management of the data is the crucial competitiveness for the insurance company. Number four, the regulation policy are getting the development of this industry into a healthy future. We have the developing finance and just other policy guiding the development of this insurance business through the measure and through the monitor of the leverage ratio, the market behavior is regulated, and we have the latest regulation and the accounting principles that get the industry to shift from the size development to quality development. We are facing a lot of the new development. We have to carry on the size of the business and the stable investment. We need to have five commitments and to make the five breakthroughs.
Then we have the five breakthroughs. Then we can really make a good start of the 15th Five-Year Plan and set up a great future for our company. Specifically, we need to figure out a roadmap for the development. Second, that covers both the current business and the future, and we will seize the opportunity, including the indirect insurance and the technology of the insurance. We will push forward the development of the transformation of business. We need to reform the operation and the incentive policies. Value development is the foundation of the KPI and appraisal. So the creativity and the vitality will be released. International operation will be enhanced. The international presence will be made. The management need to penetrate into different details and corners. The international operational capacity will be equipped with the international talents. AI will be used in detail and in efforts.
We need to enhance the governance of data. AI will be used in a better way. So the digital operation capacity will be enhanced. We will continue to manage the risk comprehensively. That covers the underwriting claim and every step of the business. We will save the bottom line of the compliance. We need to develop our corporate culture. The transformation innovation should go together. The value creation will be the center. Then we will come together, join hands to make every resources and guide every resources to make our company as the top-notch of the world. That is all the presentation part of this result announcement. Thanks for attending this meeting, and thanks for your attention and support to the company, the dear friends from the media and the investment fields. Just now, the management just works through the 2025 results performance. Now it is the Q&A session.
We open the floor for both online and on-site participants. If you are online, please press star one to wait to join in the queue. If you are on-site, please raise up your hands. Please raise no more than two questions. Before the question, let us know your name and the company you are working with. Now we invite the first question from the on-site participants. If you have questions, let us know. First row, the lady.
Good morning. I am from the Hong Kong Economic Daily. Thanks for the very good results. I have two questions. The first question is that in 2026, it is the first complete year of the new management team. It is also the starting year of the 15th Five-Year Plan, and the company is looking forward a lot of the future development. I want to ask the overall idea of the long-term development as a whole.
Second question is related to the Middle East situation. It is rather intense. Is that impacting the development of your overseas business? As the most internationalized China Reinsurance company, have you considered to deal with the geopolitical risks and the related challenges?
Okay, good. Thanks for the two questions. The first question is about 2026. The strategic arrangement of 2026. I will take this question. The second question was about the Middle East and its impacts to our business. How should we deal with that?
I will pass that question to Mr. Zhuang Qianzhi and Li Wei to answer that question.
To begin with, 2026 is the beginning year of the 15th Five-Year Plan. We attach the greater importance to the overall arrangement of the development. At the beginning of the working meeting, we published the five commitments and the five breakthroughs in our report.
Which five areas are we committed to develop? In the last 14th Five-Year Plan, China Reinsurance made it clear that by 2035, we will develop ourselves as the top-notch comprehensive insurance company in the world. In the meantime, in the 14th Five-Year Plan, we redeveloped the operation mentality, operation idea of the company. If you follow our company closely, you know that we want to develop in larger size and just develop in stability. In the 15th Five-Year Plan, we will continue the momentum. We mentioned that in 2026, we have five areas committed to. First, to be the top-notch comprehensive insurance company of the world. That will not be changed. Secondly, we want to develop with stability. This trend is maintained. Thirdly, we will instill the correct ideas for the operation and the profit development.
We will focus first on the major business. Number five, we need to achieve the high-quality development in the same time with the high-quality development. I think in 2026, what we need to do is we need to anchor these targets. We need to commit to those targets. Through the five-year efforts by 2030, China Reinsurance will be developed in a well-coordinated manner. The business model in development will generate clear results and different results. We will have the very clear idea. The operation and the management methods will be more effective. The global management and the digital capacity will be enhanced tremendously. As a result, we can have the higher level of the value creation and make more breakthroughs. In developing as the top-notch of the world, we need to have the five commitments which are associated with the shared goal.
We need to make five breakthroughs, right? The five breakthroughs means the breakthrough of the business. As I mentioned earlier that we need to figure out the three roadmaps. That means to speed up the development of the reinsurance business and emphasize the function of the reinsurance and expand the key risk service, like the digital-related service. Asset-related business will be enhanced in a better way. Risk will be better monitored and managed. We need to differentiate. We will develop the differentiated mechanism. Technology will also develop into something new that offers the empowerment to the service. We can meet the demand from the customer for the coverage of the new risks. Secondly, the governance innovation. We need to play out the leadership role of the market center and the development of the market culture, and the corporate culture so that the management will be in high efficiency.
We need to make the best out of the existing board of directors as different subsidiaries to develop, to mobilize their creativity. The mechanism will be something new as well. We need to build up the market-driven KPI and appraisal so that it will be more efficient, and the system will be much more efficient, and the management will be more scientific-driven, and the measures will be better managed. Number four, the ability will be enhanced. Further, we will attach the importance on the global operation system and cultivate people with international vision and the management efficiency so that the international level of the business will be enhanced. We will continue to improve our data-driven management capacity. AI will be used in our company in a better way. We will spend our efforts in developing our capacity of understanding the markets and the response rate.
Again, we need to develop something new. We need to work together with the active global capacity, digital capacity, and the market capacity. Our three areas to work on culture breakthrough, that means to continue to develop our corporate culture that brings us to the top-notch of the world, and to make the best out of the resilience, and guide the staff to set up the correct mentality for operation, and seize the opportunity and emphasize the value creation. We pursue the professionalism and contribute to the high-quality development and build up the morale. Your second question is about the Middle East and its impacts to our insurance business. I would like to pass the floor to Mr. Ruan and Mr. Li.
Thanks very much for your questions. Speaking of the conflicts of the Middle East, it is definitely the hot issues. Our company as the group, we have the very limited exposure there, and the pressure of the sovereignty is really limited because we do not have any exposure in Iran. For the exposure in the Middle East, it is rather low. We will not suffer from the material impacts. We will follow the development and dynamically adjust our idea. We will commit the Belt and Road Initiative and support the Chinese business going abroad and make the best out of our leading position as the reinsurance service provider. We analyze the different situation of different categories for the service. We have some exclusion criteria on the war and the invasions, so this kind of the damage will not be covered. We will not suffer from that.
For other business and insurance first, we do not really have any chances of the sinking boat, but we still need to monitor the coverage, the boats, and the container boats. International markets, Persian Gulf is the highly risk area, so some of the insurance might be excluded or will be covered by the high premium. The risk will be re-evaluated. The aviation insurance, we will not have much damage like what happens during the Ukraine and Russian War. The political risk, we are focusing on the spillover risks. In the Middle East, we face some damage of the civil servants and the public facilities. For the export credit damage, we do not have any kind of the report, but in the long term, the supply chain will be impacted. There will be certain risk that requires the continuous attention.
After the conflicts, we were really fast in responding this kind of the situation, and we were dynamic in adjusting our underlying strategy. For example, in Chaucer, we have the advantage in the political-related risk. We will not take any new customers, only provide the insurance business for a limited number of the customer, and we only quote our service price to a limited number of them, but this price will be up tremendously. Secondly, on the water risks, we have de-registered the previous war risks, and the new risks are repriced. Only if the boat is anchored in the safe area could we provide the coverage, and this kind of the coverage is only within seven or 14 days. Within 48 hours, the previous insurance can be canceled at any moment.
Based on the different situation and the information, I found that generally speaking, the overall impacts is really manageable, but the situation is still developing. There are a lot of the uncertainties. If this kind of the conflicts is ongoing, that will cause the price up of the different products like the crude oil and the inflation will be initiated. That will pose some cost risks for the insurance company. We will follow closely and take certain management measures. Geopolitical risks has already been crucial variables in the asset management. The Middle East changes posed a lot of the situation that continuous impacts the energy price. It's caused the ongoing and effects. The 10-year US dollar bonds is up to 4.4%. I think the fluctuation rate remains very high.
Our overseas investments are mainly on the fixed income and high quality. The position related to Middle East were issued with the triple A issuers. That accounts only less than 0.2% of the portfolio. The exposure is very limited, so the portfolio is rather manageable. The external situation is unpredictable, and we want to build up the systematic resilience. To build up the systematic resilience, we need to shift our mentality from focusing on the asset class to the strategy. We need to maximize the hedging effects of different asset class. Secondly, we need to consolidate the fixed income, both at home and abroad. We then will build up a group of strategies. Based on the recent performance, I think we are actively offset the fluctuation through the portfolio management. Thirdly, equity assets were directly impacting the flexibility at the income level, the optimization of the equity.
We are focusing on the certainty amid of uncertainties, and we want to build our strategy with two highly weighted portfolio. The two sides are really high quality ones, and in the middle are high risky ones. We want to build up the comprehensive risk management system that covers both home and abroad. The recent fluctuation remind us to be more closely following the situation. We will use the scenario-based appraisal assessment and the stress test to make sure the exposure are under the management, are under expectation. Looking forward to the future, we will continue to develop with the stability and follow the changes of the geopolitical situation, especially on the macro situation and the major asset class. The allocation will be flexible, so the foundation will be stabilized, the risk will be managed well, and the portfolio will be developed better.
I think the situation is changing so fast that we haven't seen in a century. We are facing a new round of fluctuation. Geopolitical conflicts happens very often. To diversify the risk, the insurance and reinsurance company should not ignore one of the major risk source, that is the geopolitical ones. That impacts both the insurance and the investment business. Our company will be actively respond to the geopolitical risks. Here, I think I have three points to make. First, for the risk management, we will closely follow the changes of the geopolitical risks and be able to read the situation and predict the future, so we can complete our emergency response plan. Second, we will enhance the exchanges with the peers of this industry and understand the latest risk trend, taking very targeted manner. Third, we need to understand that geopolitical risk is a risk in nature.
As a reinsurance company, what we need to do is to develop the related products and the management of those related products through our innovation and through the new service. We can serve well our direct insurance customer and also the companies behind the services. Ourself, we will strike the balance of the development and safety.
Second question. The lady at the second row from the left.
Thanks very much for the opportunity. From CSCC, Mao Qingqing . Two questions. First, about the health insurance. Different authorities in the recent year launched the supportive policies for the national insurance. Your group has been doing this business for many years, and I want to know that in this recent situation, what do you think of the opportunity of the life insurance? Second, non-car business. I want to ask about Dadi.
Non-car insurance has a new policy, and what is the implementation of the latest new policy? Those two questions are related to the business and the products. I'd like to pass the first question to Mr. Qian, and the second is to Mr. Li, who is in charge of Dadi.
Life insurance. I think it is the really popular topic of this industry. In 2025, the income of premium in this segment is around RMB 1 trillion. It's 999 something billion. This kind of the 2% growth is a very small growth rate, but the total size is impressive. The growth were mainly driven by the medical insurance, and disease insurance was dropping, and this trend will be continued. For the medical treatment insurance, there are two things to mention. First, the individual insurance and the terminal insurance.
That's not merely a growth of new customer, it's more about the expansion of the existing business, like the iteration, the development of the products. Second, those policy holders are getting older, so their premium will be up. The growth are mainly from the existing base of the customer. Another reason is from our property insurance, like the car combined, the human, and the human users. I think the growth is rather fast. Last year, the growth was 11%. I mean, the healthcare insurance of the property company. I think there are great potential. Speaking of the claim for the damage, healthcare insurance, especially the medical treatments insurance business, are really good because of the low claim rate. You might find the mid data of this industry is 41%. This kind of the claim rate is really good. That means the product is really profitable.
There is a double-side sword. The policy holder will not feel they are valued because of the market situation. They won't find the products appealing and their demand were pressed. That is what we need to work on for the healthcare insurance products. That's the situation. Let's speak back to what should we think about the commercial medical insurance. I think the future will have a lot of the potential. Every time when I speak with you guys in Hong Kong, the same question were asked. I think by this time, my answer will be similar with what I said before, but I need to make it clear that I believe there are a lot of opportunity for the commercial healthcare insurance products. First, I mentioned a lot of things before, like the technology, like the policy and the ideas.
All of those things has been mentioned. Second, the healthcare is experiencing the inflation deficit issues. As one crucial part of the multilayer health insurance scheme, we need to play a larger role. Third, economic growth. The public is demanding for the high-quality healthcare service. Last but not least, the most important thing is the combination of the Social Security system, with those products, and this kind of combination will be deepened. It sorted out what? It sorted out the demand of the customer. As you mentioned that the national authority issued the category B list of the medical products. What does that list mean? This list means the policy holder as the patient in the hospital receiving the treatments, they have the accessibility of those list B medical products. Before, they don't have it.
Now the authority offered this list, and it is accessible for the patient in the hospital. They can use it. They can get it. The access, the demand issue for the public has been resorted. Gradually, I think the authority is incorporating with the commercial business. After sorting out this business, I think the growth will be sorted out. In the meantime, we have issued the guidelines for the high-quality development. This is the foundation. Secondly, for the industry development, the industry life insurance, as we know, what we are selling now are mainly the saving-based dividend distribution or the whole life premium annuities. All of those things are not generating much profits from the premiums. Therefore, what should we do? The capital market nowadays is really promising, is really favorable. But I don't think the market will be always like this.
There will be some ups and downs. Under those fluctuation, whether we could show the resilience, it mainly depends on the profit of the premium. That's why under this situation, we need to be diversified on the source of the incomes. We have a rather high premier profit, and healthcare management is a very important source of the new incomes. I think that is the very crucial part. In total, I believe the future, it is a very crucial area of development. Our company attached a great importance in the commercial healthcare. Our next step is to develop well of this business. I'd like to be brief that I think the existing business should be managed well, and because of the really good profit and the rather good claim rate.
Second, we need to develop the products better and to give a better sense of the satisfaction. For example, we need to develop some products. For example, 1,000 RMB subsidiary for every day stay in the hospital, like the treatment nursery insurance. At this moment, this March, we just achieved the latest insurance that covers only the basics. For example, 50% of the claim rate, for the premier income of RMB 70,000- RMB 80,000. It doesn't make any sense. Third, we are incorporating with the national healthcare scheme, and we have done a lot. We have done a lot, and we need to incorporate with the medical business and set it up the system with Chinese characters. All of those things means we will make more efforts in the commercial healthcare insurance. That's all my answer about your commercial healthcare products. Another question you ask about the non-car insurance.
How is the implementation of the latest policy? We are actively implementing the guidelines from the National Development and Reform Commission. We've done two aspects of the business. First, we set up the special mechanism and the committee work team. Because of the complexity of this work among those non-car healthcare insurance products, we need to go through all of them. That includes the training and the coordination with related organizations, and it also includes the cooperation with different channels. It's very complicated, but the progress is pretty good and is in line with the expectations. So far, I think we have done the preparation, we have done the application process, the employees' liability insurance, all the products have done its re-approval and launched again. Some of other products are still doing the terms and conditions organization. I think it's in line with the expectation.
To answer your question about the implementation situation. Second is about the impacts of the profitability. The market is expecting this comprehensive management of the non-car insurance. This new products is bringing something new. Our understanding is that it will definitely level up the efficiency, profitability, especially on optimizing the sales cost. Of course, I think those impacts. How much of the impacts will be? We need to spend a bit more time. The cost includes both the sales cost and the cost related to natural disasters and traffic collisions. I think it will be positive, but how much it will be developed, how much it will be promoted, we are not yet understand. We don't know yet. I think for the employees' liability and the corporate assets insurance for long term, when the market gets to be more reasonable, the change is more visible.
I believe it will have some positive changes. That's all about the non-car insurance comprehensive management. Now I pass the floor to the online investors, online analysts. A question from participants from the tele-meeting. If you need to raise up your question, please raise up your hands through pressing star button and one.
Han Sukui from Shanghai Securities News. I have two. First, about the equity assets. You have more possibility to allocate your equity. What is the strategy for 2026? Second, internationalization efforts. What is your plan for being more international? Do you have the M&A opportunities?
Two questions. The first is related to the strategy of investment in 2026. After this, I am going to cover the international efforts question. Thanks very much for your question. National strategy, it depends on what do we think of the market situation.
Second, it's about the allocation and the category of allocation. This year is the first year of the 15th Five-Year Plan. I believe from industry currency and the financial policy, it is very clear that the stabilization of the development has been consolidated, and the foundations are getting better. The confidence is also getting better. Under this kind of the situation, the situation is getting more flexible. It's more fluctuating, and we are showing the policy resilience and our stability. Once we have more stable, it's better to give us the good foundation. We have the external structural challenges. As I mentioned, that we have the geopolitical risks and the changes of the energy price. I think the currency price, currency policies of the major economies are really different.
The domestic situation, the domestic imbalance of supply and development and some industry takes a bit longer time to recover its balance sheet. Generally speaking, I think in 2026, there are a lot of the uncertainty, and this fluctuation will be enhanced, and we will be more. We need to face the uncertainties through certainty. In 2026, we will commit it to be more stable, and we need to make the best out of the development. Through this active management, we can implement the national strategy. To be specific, the first point is on the allocation of the asset, we need to optimize the structure and the framework and upgrade our system. We will definitely give new depths for the existing portfolio and try different strategy.
Make it clear that the management of the portfolio, so that we can move from the allocation of the asset to the allocation of the strategy. By doing this, we can enhance the stability. Second, the trading is combined with allocation. Fixed income, as we know, the interest rate in the domestic market will remain at the very low. Probably, we need to seize the opportunity of the cash flow and actively optimize our structure and make our financial structure adaptive, and we will explore the ABS and risk opportunity. The trading mechanism will be more multiple model-driven. Because of this kind of situation, I believe the US dollar bonds, the rate will be fluctuating, and we will give a very stable.
By the right chance, we will allocate better credit risks, so that we can have a more diversified source of incomes, so that we will be more resilient to the risks. On the secondary equity, I think the market is fluctuating, so structure feature is showing up. We need to combine the market situation and make the portfolio healthy so we can have a redefine. We will take this opportunity and expand the OCI and enhance the foundations. On the other hand, we need to develop, find the certainty. Through this, we can offsite the fluctuation of the market. For the alternative investments, we need to seize the opportunity offered by the 15th Five-Year Plan and focus on the new industry, and to be more visionary and to invest in the major areas, and seize the opportunity in the early time.
Then we can create the stable incomes so that we can really empower the development. We need to make the difference through investment under these kind of changes. It is, I believe, we will continue to develop our institutional capacity and enhance the empowerment from the technology. Through the research, we can enhance the results. Through this, we can have a better management so we can manage the liquidity, safety, and go through the cycles. Thanks very much for your attention to the international development of our company. Reinsurance is actually the insurance of the insurance company. It is to cover the special risks and the emerging risks and complicate the risks. I think this kind of diversification covers different countries. That means to reallocate the risk from China to the offshore area, and it also means to join in the global special risks.
I believe reinsurance has the international and global features from the very beginning, at different country, at different places. That is the case. As a long player, after joining the WTO, we opened up this niche area. At that time, it is better to open up the insurance industry as the first place. The international development has achieved rather good results in the recent years. As I mentioned earlier, like what I said just now, last year, we were recommended by the regulators to Switzerland to recognize us as the only one active insurance company in the mainland China. Secondly, the premium size, the premium scale. It was 18.2%. I think this kind of percentage make us as the most international financial institutes among all the rest of the Chinese institutes. That accounts to our longtime international developments as such.
For example, we had the office in London and Hong Kong and New York quite long ago, as you mentioned, and our M&A. I think in the past 20 years, our China Reinsurance (Group) has achieved rather good results. The absolute value is around RMB 3 billion. For two years, all of our institutes, we had net profits. It is not that easy to make it. In Singapore and in Hong Kong, all of those institutes are making profits, are recording positive results. In 2026, and the 15th Five-Year Plan or even longer term, international efforts is definitely our way forward. Probably we need to do a couple of things. For the international business development, market creation, products innovation, I think on this we are really positive. As you mentioned, we have the geopolitical risks and war risks and the maritime risks and the political crisis risk.
If you don't join in the international markets, you don't really know what was going on. China, I think as a Chinese institute, we are definitely the most experienced one, but we still need to learn more. I think for some other insurance types that haven't been available in the Chinese market, if the development of China requires that kind of service, we will definitely tap into that area, and we have to make the best out of the market and setting up the right example. International efforts for the institutes means we need to develop that prudentially. We won't develop blindly. We won't develop for internationalized, as the sake of being international. We have international office at major international financial hubs, like in London, in Hong Kong, in Singapore, and Bermuda. We have our offices in all of those places. Those offices are already there.
It is not about being international for being internationalized. We need to be smart in managing the network of our stores. This is the first question about the development. The second question is about the management of the international operation. Speaking of internationalization, it is easy to speak about it, but what is more important is the operation and the management of the international business. That requires the professional knowledge, professional expertise, and even the professional understanding of different aspects. This is definitely what we need to do in the next step. Thirdly, we need to make the foundation correct. What does that mean? That means we need to learn from ourselves, from the past, but we still need to learn something from our peers, and we are not yet perfect. In the 15th Five-Year Plan, we will cultivate the international talents, the people with global visions.
We will definitely recruit the talents from far, from different backgrounds, so that we can attract the talents from all walks of life to join our company to help the development. I think international efforts development is definitely what we need to do. Just now, you mentioned that oversea M&A. In the 15th Five-Year Plan, what we need to do is to make the best out of existing network. We won't be progressive in M&A for the oversea. The term is rather long. We need to seize this opportunity, but I think by the end of this year, at the proper time, we will seize some opportunity for the oversea development. By that time, if we have this kind of arrangement, we will definitely disclose that information according to the governance regulation. Of course, we will definitely do the regulations with the relevant investors.
As the interest of the time, probably this is the last question. The last question will be from the on-site investors. Lily.
Thanks very much for this opportunity. From UTVSU, Jessica Chen. I have two questions. First is about the net profit. As I noticed that in excluding one-off factors, the growth rate is really stable, and you enhanced the dividend payout. What do you think under the new accounting principle? Will the company take a more positive dividend payout policy? Second, as we noticed that the new energy companies are going abroad. So I want to ask that, what do you think of the oversea market situation?
You have two questions. The two questions, one is about the net profit and the dividend payout. I'd like to pass this question to Mr. Pan. Second, about the new energy car going abroad.
In 2025, the profit, as you say, excluding the one-off factors, the 2025 profit was rather good. In 2026, what will be the profit estimation? I think in the new accounting principle, the service performance and the finance performance are the two major areas. For the short-term perspective, in 2026, the profit of the premium is really stable. Second, our oversea business is the major contributor of our profit. Though the international property market is dropping, the profit is dropping, but the efficiency level is still very high. So I believe after 2025, 2026 will be stable. Second, for the reinsurance of the property, you might find that the combined claim rate is really good. The Dadi is our direct insurance business. We consolidated our foundation of the reserve funds. The performance in 2026 will be better.
I think it is promising, and there will be some chance to recover, to get better. For the long term, I think it's more related to the disaster insurance. In 2026, we will do some adjustments. Those adjustments will bring a difference to the profits of 2026. Secondly, in 2026, the market profits will be stabilized. I believe it will be stable again. I think, as I mentioned, that in 2026, our saving-based business was positioned as the profit-making business, but now it is a value creation business. That means the loss will be reduced, and we won't have any loss reduction. I think the service performance will also be better. So 2026, in long term, it will be getting better. In 2025, the return of the investment will be 17.5%. I think that the actual cost of the business is just around RMB 5 billion.
In total, the cost is rather low. The total cost ratio is just 1.2%. That is based on if we carry on and excluding those factors, it will be better. The resilience is really great. I think our company has this kind of feature that we will not be so weak, and even we cannot be so good. That is the features of our company. Second, about the financial performance. In 2020, speaking of the cost, it is rather positive. In 2026, it is more about the fluctuation of the investment. I think we have a very stable portfolio of the income. The equity market is fluctuating. It is impacting our performance, and we expand the OCI combination. In total, I think the return of the investment is really stable, and the secondary impacts of the equity is really limited.
In 2026, I think the net profits will be promising, and we are confident to deliver that target. Speaking of the future dividend, I believe the dividend policy will be stable. After listing from 2015, we have the payout ratio now around 30%, if not higher. Secondly, we will definitely level up the performance of our operation. Just now Zhuang mentioned that in 2025, we will have the dividend RMB 0.01695. It is up 38%, and the dividend ratio is around 5%. I think it is rather high. In the future, I think we will definitely level up our performance and create better returns for the investors. I think it is speeding up for the Chinese EV going abroad. I think there are three drivers. First, the industry is growing up. In 2025, the Chinese EV export is around 3.5 billion.
In 2026, as you mentioned, because of the conflicts and in some emerging countries, the sales of the EV is getting up. I think the Chinese brands is getting more recognized. That means where our EV goes, we have the insurance. EV has its own features, like the smart system and the charging system. All of those things means for the overseas insurance company, they are having this kind of the challenge because they do not have this kind of the insurance. That gives us the comparative advantage because we have those experience, and we have the accumulation of the experience, and they can then seize this opportunity of the market. Second, the policy is driving forward. Our company supports a lot of the Chinese new energy company to go abroad. We are serving the real economy. It is our mission.
We have to serve the expansion of the overseas to the Chinese markets, and we need to support them. That means that for the insurance industry and China Reinsurance C ompany, it is our mission. We have to take shoulder responsibility. Third, it is the market. The market of the insurance is very, very competitive, and the competition is highly saturated. The overseas market offers the potential for the new development. As we know that some top players are going abroad, and they are looking towards the new growth points. Those, they first boost the Southeast Asia market, and the North, and some other places. In this process, I think there are both opportunities and challenges. I think the challenges are mainly a couple of them. First, the data challenges. The difficulty of getting the data.
As the overseas markets, all of the data we accumulated from the domestic market will not be comparable. I think we have the major differences. We need to have the precise pricing, but we have the challenges on that. Second, for the overseeing regulation and system are different and the policy are quite different from place to place. The network of the service, EV requires the professional requirements. It takes a long time to do that. We need to figure out how to have a good service system and how to manage well of the requirements cost. It is the challenge. Number four, the EV has its unique risks because of the electricity system, the battery system, and the smart network. All of those things are related to the internet safety and many other things.
China Reinsurance, as the national team of this business, we are looking forward to empower those companies to go abroad and to support really relevant industries. We have done a couple of the things. The first is to develop the platform of the data. We are facing to develop a. We want to get together the different data to understand the situation, to develop better system so that we can have. Secondly, we want to develop the network. Through the overseeing markets, we can have a better system. We can have to understand the markets and seize the opportunity. Thirdly, I want to develop the latest plan for risks so that we can have the tailor-making platform and help the direct insurance company to develop our capacity and to transfer part of the risk so that the direct insurance could have the stable operation.
Last but not least, I hope we can set the standard on behalf of China. We have very good experience. We have on the claiming and the underwriting. Those kind of the sound practice should be transferred to overseas countries. We want to support the EV going abroad and also let the world accept the Chinese standard or China Reinsurance Companies standard so that we can have the international recognition. That is all what I want to say. As the interest of the time, this is the end of the Q&A, also this is the end of the result announcement. Starting from 2015, getting listed from that time, we received a lot of the support and attention from the investors and analysts. On behalf of the management team, I would like to express my gratitude for that.
We attach the great importance of the interaction with the management team and with the capital market. We will connect with the investors both at home and abroad, including Hong Kong. We will listen to you closely and support the long-term quality development of the company and continue to return to the investment. This is the end of the 2025 China Reinsurance Group result announcement. Thanks for coming. Thanks for all the media friends, investors, and analysts. If you have some unaddressed questions or some follow-up questions, please reach to the IR department of the company. Thank you.