Sunshine Insurance Group Co Ltd reported its full-year financial results for 2024, with net profit reaching RMB 5.45 billion, up from RMB 3.74 billion in 2023.
The company’s basic and diluted earnings per share from continuing operations both stood at RMB 0.47, compared with RMB 0.32 in the previous year.
Founded in 2005, the Beijing-headquartered insurance group operates across several key financial services sectors, including property and casualty insurance, life insurance, credit and guarantee insurance, asset management, and healthcare. The group also holds non-domestic assets, including the Baccarat Hotel in Manhattan, New York.
In January, Fitch Ratings reaffirmed the Insurer Financial Strength (IFS) ratings of two core subsidiaries – Sunshine Life Insurance Corporation Limited and Sunshine Property and Casualty Insurance Company Limited – at “A-.”
Sunshine Life’s Long-Term Issuer Default Rating and its senior unsecured debt were also affirmed at “BBB+.” The ratings carry a Stable Outlook.
Fitch cited the group’s capital position, financial metrics, and diversified operations as key factors underpinning its assessment. Both life and P&C subsidiaries are treated as integral to the parent company’s overall financial profile.
The group’s consolidated capital adequacy remained at a “Strong” level under the Fitch Prism model as of mid-2024. However, this buffer had narrowed from 2023, attributed to an uptick in asset risk and an expanding business footprint. Fitch noted that Sunshine Group’s financial leverage ratio stood at 29% by midyear, with RMB 5 billion in additional bond issuance capacity.
Sunshine Life’s solvency ratio improved to 204% by the end of the third quarter, up from 183% at the close of 2023, following a capital infusion from the holding company. Meanwhile, the P&C unit’s solvency ratio slightly declined to 242% from 245% previously.
The life insurance arm saw a 40% year-over-year increase in new business value in the first half of 2024, benefiting from revised commission structures and continued focus on core distribution channels. Operating income before tax, including investment-related gains, rose to RMB 5.21 billion, nearly 80% higher than the same period in 2023. However, its return on equity advanced more modestly to 14.8%, influenced by higher tax costs tied to accounting rule changes.
In contrast, the P&C division reported a combined ratio of 99.2% for the first half, up from 98.3% a year earlier. Fitch attributed the increase to elevated claims arising from weather-related events, including snowstorms and typhoons in areas with high premium exposure. The unit’s return on equity fell to 6.2%, down from 11% year over year.
Fitch also pointed to the group’s continued exposure to equity markets, as it maintains a higher proportion of equity investments in response to persistently low interest rates in China. Risk-adjusted equity exposures at Sunshine Life represented 169% of total equity at year-end 2023, compared with 161% the previous year. For Sunshine P&C, the corresponding ratio dropped to 128% from 151%, reflecting a shift toward government securities.
The group’s position in the domestic market remains supported by its multi-line structure, established distribution networks, and growing agent productivity. Fitch views these factors as contributing to a balanced operating profile, which may help Sunshine Insurance Group maintain its competitive footprint in China’s insurance sector.
