Investment income props up China United Property profits

Underwriting results remained close to break-even despite steady business expansion

China United Property Insurance Company expects steady annual growth over the next three years. 

Its profits have been driven mainly by investment income, whilst underwriting results have remained close to break-even, an AM Best research note said.

AM Best also expects the insurer to receive government support from its ultimate parent, China Investment Corporation (CIC), China’s sovereign wealth fund.

CUPI’s risk-adjusted capitalisation remained at a very strong level in 2025 and is expected to remain at that level over the short- to medium-term, based on Best’s Capital Adequacy Ratio (BCAR). 

The insurer’s capital and surplus rose 5.4% to $2.78b in 2025, according to AM Best.

The ratings agency said CUPI has good financial flexibility, supported by its track record of raising debt in China’s capital markets. 

Its adjusted financial leverage stood at 17.3% in 2025, whilst its interest coverage remained adequate. The company’s investment portfolio is diversified with controlled exposure to higher-risk assets.

AM Best said these strengths are partly offset by relatively high underwriting leverage compared with similarly sized domestic peers, large premium receivables from policy-driven agriculture insurance, and potential impairment risks from some legacy investments.

CUPI has delivered a mid-single-digit annual return on equity over the past five years.

The insurer is one of mainland China’s leading agriculture insurers, holding just over 4% of the country’s non-life insurance market and 12% of the agriculture insurance market based on 2025 direct premiums written.