With dividend-paying policies becoming top sellers, investment returns have emerged as the primary marketing hook for life insurers. The latest second-quarter solvency reports have landed, disclosing investment performance data for 72 life insurance companies. Let's examine which insurers delivered standout results and whether any true "perennial winners" exist in life insurance investing.

Overall performance in the first half

For financial investment returns in the first half of the year, Guofu Life Insurance posted the highest figure at 4.66%, while Hainan Hail Insurance recorded the lowest at -0.35%, making it the only company in negative territory for this metric. The industry median stood at 2.01%.

Turning to total investment returns for the same period, two insurers managed to exceed 8%: China Life Insurance at 8.82% and AIA Life Insurance at 8.31%, with the latter's performance influenced by its reclassification of held-to-maturity (HTM) assets to available-for-sale (AFS) status. Three companies reported negative total returns, with Xiaokang Life Insurance ranking at the bottom at -5.24%. The industry median for this metric was 2.62%.

Top ten financial investment returns

The leaders in financial investment returns for the first half were: Guofu Life Insurance (4.66%), followed by Beijing Life Insurance (4.47%), New China Pension (3.77%), Fosun Health Insurance (3.56%), Fosun Pramerica Life (3.40%), CPIC Health Insurance (3.33%), Ping An Health Insurance (3.27%), Happy Life Insurance (3.25%), New China Life Insurance (3.23%), and BOCOM Life Insurance (3.13%).

Top ten total investment returns

In terms of total investment returns, China Life Insurance topped the rankings at 8.82%, with AIA Life Insurance close behind at 8.31%. Other notable performers included Guofu Life Insurance (4.76%), Manulife Sinochem Life (4.34%), PICC Life Insurance (4.22%), PKU Founder Life Insurance (4.21%), Happy Life Insurance (3.88%), Beijing Life Insurance (3.84%), Fosun Pramerica Life (3.77%), and Auspicious Life Insurance (3.75%).

Are there truly consistent winners?

Our previous analysis, based on insurers with a decade-long track record, identified the ten best-performing companies across nine and a half years of investment returns. This year, among the 72 insurers surveyed, PICC Life Insurance and Credit Suisse Life Insurance have maintained their top-ten standing, while Lujiazui Guotai Life also continues to rank well. However, companies like Generali China Life, BOCOM CM Life, Aviva-Cofco Life, and Heng An Standard Life have slipped further down the list. Consistent excellence in investment performance appears to be a rare feat.

Xiaokang Life's unexpected downturn

Having consistently led the industry in investment returns over the past several years, Xiaokang Life Insurance experienced a surprising reversal in the first half of this year, plunging to the bottom of the rankings with a total investment return of -5.24%.

Notes on statistical methodology

The comparability of investment returns across companies is affected by variations in asset classification and return calculation methodologies. Under the I39 accounting standard, companies that reclassified all HTM assets to AFS would benefit from asset appreciation driven by falling bond yields. This adjustment was notably impactful for China Life Insurance and AIA Life Insurance in the first half. Among the eight insurers employing the I9 standard for solvency reporting purposes—namely China Life Pension, PICC Pension, New China Pension, National Pension, Sunshine Life Insurance, China Post Life Insurance, CCB Life Insurance, and Beijing Life Insurance—the investment return rates follow the I9 framework. The remaining 64 companies report under the I39 standard.

Complete investment return table

The full breakdown of investment returns for all 72 insurers is detailed in the accompanying table for reference.