Last year, an additional 100 billion yuan was added to the position, and this low-profile mega-institution can no longer hide.

In this era, different institutions have very distinct personalities.

Some make a high-profile entrance, with every move seemingly announced loudly with a megaphone.

A typical example is the “national team”: they buy and release news, add positions and announce it; when selling, they rarely announce, but the massive orders on the order book clearly reveal their “open book” approach.

Others are more low-key, not even sharing investment details publicly. They make cautious decisions and prefer the market to overlook them.

Take the following institution as an example. Operating in the property and casualty insurance industry with clear competitive advantages—holding the largest market share, maintaining good cash flow—they are very discreet in their investment actions, embodying the phrase “big sharks lurking.”

On the evening of March 26, China Re, Asia’s largest property and casualty insurance group, disclosed its 2025 annual report, also revealing a glimpse of this institution’s substantial investment strategy.

Impressive Revenue Last Year

Where does the investment capital for insurance companies come from?

Premiums!

So, the most important part of this giant’s annual report is the revenue data.

On the evening of March 26, China Re announced: in 2025, the company achieved a total operating revenue of 669.044 billion yuan, up 7.6% year-over-year; net profit attributable to shareholders was 46.646 billion yuan, up 8.8%.

This property and casualty insurance giant’s premium income for the year reached 738.3 billion yuan, a 6.5% increase.

Among these, non-auto commercial insurance grew significantly faster than auto insurance over the past year, with first-year life insurance premiums increasing by 32.4% year-over-year, and life insurance contributing over 60% of the incremental premiums to the group.

Clearly, China Re is set to have a bumper year in 2025.

Steady Investment Returns

China Re also reported good news in this annual report: in 2025, it established a strategic stock portfolio, achieving its best investment returns ever.

The report shows: in 2025, China Re achieved a total investment return of 92.323 billion yuan, up 12.4% year-over-year; the overall investment yield was 5.7%, remaining relatively stable.

China Re disclosed that the company fully implemented the requirements for long-term capital market entry, actively participated in pilot reforms for long-term insurance fund investments, and continued to optimize its secondary equity investment structure.

In short: I have money, I can make money, and I will spend more on stocks.

Where is the Investment Going?

So, how is this giant investing?

The institution states: it is using asset securitization as a breakthrough, increasing efforts in alternative investments and innovation. By 2025, the issuance scale of REITs among China Re’s group entities will rank first among insurance peers.

China Re disclosed specific data on its investment assets, covering fixed income and equity assets.

Notably, the scale of direct stock investments has changed dramatically compared to last year. (See below)

The scale of stock investments jumped from 60.249 billion yuan at the end of 2024 to 166.235 billion yuan at the end of 2025, an increase of 105.986 billion yuan. Its proportion of total investment assets also rose from 3.7% to 8.7%.

This isn’t just about earning from existing holdings. It’s a real increase in positions.

Pioneering the “Strategic Stock Portfolio”

The annual report also mentions a detail: China Re refers to a “strategic stock portfolio” in its statement. Specifically:

“In terms of equity investments, we firmly implement the requirements for long-term capital market entry, leverage the patient capital advantage of insurance funds, steadily increase the proportion of secondary equities, strengthen absolute return orientation, optimize the equity asset allocation structure, innovatively establish a long-term focused strategic stock investment portfolio, and increase investments in other equity instruments aligned with value investing concepts of insurance funds, enhancing the long-term stability of investment performance under new standards.”

The phrase “innovatively establish a long-term focused strategic stock investment portfolio” is mentioned for the first time, echoing the earlier data about the billion-yuan increase in direct stock investments.

However, the report does not provide further operational details about this strategic stock portfolio.

Asset Scale Approaching 2 Trillion Yuan

As of December 31, 2025, China Re Asset Management’s assets under management reached 1.98 trillion yuan; it achieved operating income of 1.76 billion yuan and net profit of 689 million yuan.

It actively participates in long-term investment pilot programs for insurance funds. China Re Qiyuan Hui Zhong Private Securities Investment Fund has officially begun operations, demonstrating its commitment to maintaining long-term stability in capital markets.

Like China Life’s Hogh Fund (a private equity fund jointly established by China Life and New China Insurance), these are important attempts by large insurance funds to invest in secondary stock markets via private platforms, becoming a new force in Chinese equity private funds.

Regarding China Re’s overall asset allocation strategy, the annual report states:

“Fixed income investments strengthen the analysis of medium- and long-term interest rate trends, actively seize opportunities brought by rate fluctuations for allocation and trading, flexibly adjust asset durations, and enhance investment returns.

Equity investments implement long-term capital deployment, reinforce absolute return concepts, and improve the allocation of strategic assets and structural opportunities.

Alternative investments actively promote business transformation, with significant achievements in developing and investing in innovative asset securitization products. The total issuance scale of ABS on exchanges reached 9.466 billion yuan, ranking first among insurance peers.”

Risk Warning and Disclaimer

Market risks exist; investments should be cautious. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions herein are suitable for their particular circumstances. Invest accordingly at their own risk.