Health new business value advanced just 1% during the period.
PICC Group faces weaker growth in its life and health businesses and the risk of higher catastrophe losses, even as its property and casualty operations recorded better underwriting results in the first half of 2026, according to Morningstar.
New business value growth slowed to 5% in life insurance and 1% in health insurance, well below the 11% to 34% growth reported by peers.
Morningstar linked the slowdown to PICC’s heavy reliance on bancassurance as regulators tighten fee controls, as well as a slower shift towards participating policies. Premiums from long-duration policies fell 25%.
Morningstar expects life and health new business value to grow at a mid-single-digit rate in 2026, suggesting pressure could continue in the near term.
Catastrophe exposure is another risk for the group’s non-life operations. PICC’s motor combined ratio improved by 0.7 percentage points to 93.5%, whilst its non-motor ratio fell by 1.1 percentage points to 94.6%, helped partly by lower catastrophe losses and favourable weather.
Morningstar warned that higher catastrophe claims could offset some of these gains.
It expects the non-motor combined ratio to remain at 99% to 100% between 2026 and 2028 as catastrophe losses normalise and pricing pressure continues in government-related business. The ratio is forecast to improve gradually to 98% by 2030.
