Life insurance companies are experiencing a "profit boom", but more than 60% of their net assets are declining.

While insurance companies are welcoming their most profitable year, there is a general downward trend in net assets. Data from the latest solvency reports of 57 non-listed life insurance companies compiled by Securities Times reporters show that as of the end of 2025, the total net assets of these 57 non-listed life insurance companies amounted to approximately 438.1 billion yuan, a decrease of 2.9% from the end of 2024. Among these 57 companies, 36 experienced a decrease in net assets, accounting for more than 60%. Some insurance company insiders stated that analyzing the performance of life insurance companies requires considering both net profits and net assets. In the current environment over the past two years, life insurance companies that have switched to the new regulations have shown more favorable net profit performance, but factors such as reserve provisions dragging down profits under the old regulations have largely shifted to net assets, resulting in increased fluctuations in net assets. Industry experts suggest that the new accounting standards test the asset-liability linkage of insurance companies. During the transition period of accounting standards and subsequent adjustments, how to better balance various assets, allowing assets and liabilities to be more closely linked to achieve relatively sustainable and predictable fluctuations in profits and net assets, is a challenge that insurance companies need to address.