ZhongAn Online H1 2026 Net Profit Jumps 132.2% to RMB1.55 Billion

ZhongAn Online P&C Insurance Co. , Ltd. disclosed its 2026 interim results on August 25. For the first half of 2026, the company recorded total premiums of RMB16.558 billion, down 0.6% year on year; insurance service revenue of RMB16.989 billion, up 12.9%; and net profit attributable to shareholders of the parent of RMB1.55 billion, up 132.2%. In the first half of 2025, the company's net profit attributable to the parent was RMB668 million, up 1103.5% year on year. The company attributed the H1 2026 profit growth mainly to improved profitability in its insurance and banking segments, as well as its technology business turning profitable. The insurance segment's net profit reached RMB1.481 billion, up RMB808 million year on year, an increase of 120%.

On the underwriting front, the combined ratio for H1 2026 was 95.5%, improving 0.1 percentage point from the same period in 2025, with a loss ratio of 56.9% and an expense ratio of 38.6%. Underwriting profit was RMB773 million, up 17.8% year on year. Investment contributed significantly to profit growth, benefiting from rising capital markets. Total investment income on insurance investment assets reached RMB1.596 billion, up 150% from RMB639 million in H1 2025. Net investment income was RMB799 million, and fair value changes were RMB797 million. The annualized total investment return and net investment return were 7.8% and 4.0%, up 4.5 and 1.9 percentage points respectively from the same period in 2025. As of end-June, domestic insurance funds investment assets totaled approximately RMB41.487 billion, with fixed income investments of RMB29.08 billion, accounting for 70.1%, and equities and equity funds of RMB5.498 billion, accounting for 13.2%.

The slight decline in total premiums was mainly due to the active reduction of the consumer finance ecosystem business. In H1 2026, health ecosystem total premiums were RMB6.714 billion, up 7.0%; digital life ecosystem total premiums were RMB7.743 billion, up 24.7%; auto ecosystem total premiums were RMB1.541 billion, up 4.2%; and consumer finance ecosystem total premiums fell 79.2% to RMB560 million. The company said it continued to actively reduce the scale of its consumer finance ecosystem business in response to external environment changes and risk control needs. As of end-June, the outstanding loan balance insured by the consumer finance ecosystem was RMB10.5 billion, down 54.2% from end-2025.

In the health ecosystem, insurance service revenue was RMB6.686 billion, up 16.6%, with a combined ratio of 92.7%, improving 0.2 percentage point from the same period in 2025. The "Zunxiang e-sheng" series generated total premiums of RMB3.406 billion, while the "Zhongminbao" series posted total premiums of RMB1.654 billion, up 60.5%. The digital life ecosystem was the fastest-growing segment, with total premiums up 24.7%. Pet insurance total premiums approached RMB691 million, up about 22.7%, and the e-commerce segment saw total premiums of RMB3.547 billion, up 45.5%. Digital life ecosystem insurance service revenue reached RMB7.627 billion, up 31.7%, with a combined ratio of 99.2%, improving 0.7 percentage point.

In the auto ecosystem, total premiums rose 4.2% to RMB1.541 billion. New energy vehicle insurance premiums surged 105.7%, accounting for nearly 36.5% of the company's auto premiums. Auto ecosystem insurance service revenue was RMB1.374 billion, up 26.7%, with a combined ratio of 93.3%, up 2.1 percentage points from the same period in 2025. Beyond insurance, the technology and banking businesses continued to improve. The technology segment posted a net profit of RMB17 million in H1 2026, turning around from a loss in the prior-year period. ZA Bank, a Hong Kong digital bank under ZhongAn International, generated net income of HKD578 million in H1 2026, up 26.6%, and net profit of HKD71 million, about 1.5 times the same period in 2025. Net interest income was HKD375 million, up 25.9%, while net fee and commission income rose 75.7% to HKD123 million. ZA Bank's net interest margin widened to 2.99% from 2.38% in H1 2025.