CHINA TAIPING (00966) has achieved success in transforming dividend insurance, with midterm performance showcasing the effectiveness of reforms.

In the current environment where the interest rate for large savings deposits in banks continues to decline below 2%, the insurance market is undergoing profound changes. In the first quarter of 2025, the proportion of dividend-type products in the new products of life insurance companies has reached nearly 40%, and industry data shows that the incremental growth of the dividend insurance market is expected to exceed 1.8 trillion yuan in the next three years. Behind this transformation are the dual drivers of accumulating interest rate spread risks during the downward interest rate cycle and the upgrading of consumer wealth preservation needs. CHINA TAIPING has taken the lead in delivering an impressive transformation answer. The mid-term performance report of CHINA TAIPING in 2025 shows that its core subsidiary, Taiping Life, has built a product matrix with dividend insurance as the core: in the first half of the year, the proportion of dividend insurance in the first-year premium payments of long-term insurance by Taiping Life is as high as 87.1%, and the proportion of dividend insurance in the new long-term insurance structure reaches 91.3%. Based on the risk-sharing mechanism of "guaranteed income + floating dividends," different from the rigid redemption of traditional life insurance fixed income, dividend insurance shares part of the investment risk with customers, and sets the predetermined interest rate at a more conservative level through actuarial techniques to reduce interest rate spread risks from the source. Its long-term holding characteristics result in a surrender rate more than 40% lower than traditional products, and combined with the dividend smoothing reserve pool mechanism established in accordance with regulatory requirements, it can effectively buffer the income volatility caused by market fluctuations. Thanks to the increase in the proportion of dividend insurance, under the assumption of unchanged major economic scenarios, the negative impact on the new business value of Taiping Life in the first half of 2025 compared to the same period last year has been greatly reduced from 30.5% to 5.5%, demonstrating strong risk resistance. The effectiveness of the transformation is derived from systematic reform measures. According to the acting head of Taiping Life, Wang Xuz... (Translator's note: The text is too long for a single translation request. Please let me know if you would like me to continue.)