H1 2026 Dividend Insurance Premiums Exceed RMB 1 Trillion, Up 94.4%; Sunshine Life Fulfillment Rates 25%-118%

In the first half of 2026, original premium income from dividend insurance exceeded RMB 1 trillion, up 94.4% year-on-year, accounting for more than 60% of new premiums in life insurance. Dividend insurance consists of a guaranteed benefit and a variable dividend. Against the backdrop of falling deposit rates, its combination of certainty and growth potential has attracted market attention. Since July, eight insurance companies have launched 12 new dividend insurance products, with the illustrative interest rate uniformly reduced to 3.5% and the minimum guaranteed rate generally set at 1.75%. Effective from July 1, 2026, the cap on illustrative rates for dividend insurance was lowered from 3.9% to 3.5%.

Recently, several life insurers have announced their latest dividend fulfillment ratios. The fulfillment ratio is the ratio of actual dividends paid to the illustrated dividend amount; 100% means the actual dividend matches the illustration. Sunshine Life disclosed the fulfillment ratios for 140 dividend insurance products in 2026, of which over 60 products reached or exceeded 100%, with a maximum of 118% and a minimum of 25%. Beijing Life data showed that more than 10 products, including Jingfu Ruixiang Whole Life Insurance (participating), had a fulfillment ratio of 100%, while three products, including Jingfu Hongxi Annuity Insurance (participating), had a ratio of only 19%. For Taikang Life, some products achieved a fulfillment ratio of 124% in the 2026 dividend year, while others were 39%. Among Pacific Life's 211 participating products, fulfillment ratios ranged from 35% to 114%, with products at or above 100% accounting for over 30%.

Based on the latest fulfillment ratios disclosed by 15 life insurers covering 766 participating products, nearly 40% of products have achieved a fulfillment ratio of 100% or above since 2026. The wide disparity in fulfillment ratios among products is related to the level of the illustrative rate. Before 2023, illustrative rates for dividend insurance were generally around 4.5%, and older products sold then had higher illustrative rates. Currently, the illustrative rates for all participating products on the market have been uniformly reduced to 3.5%, with guaranteed rates around 1.5%. After the reduction in illustrative rates, new products are more likely to have actual dividends match the illustration. However, the fulfillment ratio is not equivalent to the investment return rate and does not directly reflect the level of product returns.

The insurance industry's average investment return for the past three years (2023 to 2025) was 3.3%, marking the first rebound after three consecutive years of decline, with an increase of over 10 basis points. In the first half of 2026, benefiting from a recovery in the capital markets, some listed insurers saw improved investment returns. The dividend level of participating products is related to insurers' investment capabilities, with investment performance directly affecting dividend distributions.