Premium Surges by 371%: The Bittersweet Rise of Sheneng Property Insurance's "Comeback"

This article is reprinted from: Economic Information Daily

□Reporter Xiang Jiaying

With the completion of the 2025 Q4 Solvency Report disclosure, the annual operational landscape of non-listed property and casualty insurance companies is gradually becoming clearer. In this report card, Sheneng Property Insurance Co., Ltd. (referred to as “Sheneng P&C”) has emerged as a “dark horse” in the public eye. Data shows that this young insurer, established in January 2024, achieved an insurance business income of 16.562 billion yuan in its first full operating year, a surge of 371.58% year-over-year, ranking fourth among non-listed property and casualty insurers; net profit shifted from a loss of 2.458 billion yuan in 2024 to a profit of 435 million yuan, successfully turning losses into gains.

This turnaround not only signifies that this newly established entity, which took over Tianan P&C’s business, has completed its shift from risk disposal to market competition but also makes it the industry’s biggest net profit increaser and most improved ranking. However, behind the impressive financial data, this “Shanghai-based newcomer” faces multiple challenges such as aging management teams, frequent compliance penalties, and a surge in user complaints.

Dual-driven underwriting and investment strategies, with a low-price approach fueling scale expansion

Sheneng P&C’s performance reversal primarily stems from fundamental improvements on the underwriting side. The solvency report shows that by the end of 2025, the company’s combined cost ratio dropped to 99.85%, breaking below the breakeven line of 100% for the first time, achieving underwriting profitability. The combined loss ratio decreased by 3.03 percentage points to 67.84%, and the combined expense ratio fell by 2.45 percentage points to 32.01%.

“This is likely mainly due to the company’s precise risk pricing and strict underwriting and claims processes, breaking free from the previous passive reliance on investment income to cover underwriting losses,” said an insurance industry insider. Meanwhile, investment performance was also notable—2025 investment yield reached 2.72%, up 1.46 percentage points from 2024; the overall investment return was 2.65%, an increase of 1.44 percentage points year-over-year. In terms of fund utilization, the company invested in institutional products such as Pacific Asset Management and Harvest Fund, with a single asset management plan purchase of 2.69 billion yuan from Harvest Fund.

But what truly supported the 371% premium growth was Sheneng P&C’s innovative market strategy. This insurer, jointly initiated by Sheneng Group, Shanghai International Group, Lingang Group, and six other state-owned enterprises, did not choose to confront traditional giants head-on but instead took a differentiated path similar to “breaking through in lower-tier markets.”

“New professions like food delivery riders are highly mobile and risky, with low per-person premiums and poor claims ratios. Large companies are generally reluctant to underwrite these policies,” revealed the industry insider. “Only smaller insurers seeking to grow their business will take on such policies—first building scale, then pursuing profit.” Sheneng P&C seized this market gap—by 2025, platforms like Taobao, JD.com, and Meituan strengthened rider occupational protections, and Sheneng P&C capitalized on this blue ocean market.

Tianyancha data shows that as of now, Sheneng P&C has been involved as a defendant in 140 court notices, mainly related to food delivery platforms, freight transportation, and construction labor services, with cases involving property insurance contract disputes, motor vehicle traffic accident liability, and disputes over rights to life, body, and health.

Meanwhile, the company is also aggressively expanding into the auto insurance market through low-price strategies: in Q4 2025, the average premium per auto insurance policy was only 2,115.87 yuan, far below China Life Property & Casualty’s 2,761.77 yuan and PICC P&C’s 2,506.21 yuan; on platforms like Alipay and Tencent WeSure, Sheneng P&C’s quotes are often 15% to 25% lower than those of leading companies.

This “low-price market share grab + channel-driven” model has quickly proven effective. In 2025, the company signed premiums totaling 16.55 billion yuan, with agency channels contributing 12.26 billion yuan, accounting for 74.1%. Auto insurance premiums signed reached 10.92 billion yuan, a 326.5% increase year-over-year, reducing the share of auto insurance in total premiums to 65.96% from 72.91% in 2024; non-auto insurance quickly filled the gap, with the top five insurance types totaling 4.947 billion yuan in signed premiums, becoming a new growth engine.

Multiple challenges behind rapid scale growth; long-term development needs breakthroughs

However, the rapid expansion has also exposed the “soft spots” of this young insurer. Since the beginning of 2026, Sheneng P&C has been listed as a defendant twice: in January, Wuhu Jinghu District People’s Court filed a case for approximately 406,500 yuan in execution, and in February, Hailong County People’s Court included it for 114,600 yuan. Although the amounts are small, the signals are noteworthy.

More directly, user complaints are mounting. On platforms like Black Cat Complaint and Xiaohongshu, complaints about Sheneng P&C’s slow claims processing, claim denials, and lack of service are common. One food delivery rider complained that after a traffic accident during delivery caused multiple injuries, the platform could process compensation normally, but Sheneng P&C did not pay according to regulations. Several policyholders reported slow claims response times, lengthy damage assessment processes, and that issues were only resolved after complaints.

Behind these contradictions may lie Sheneng P&C’s unique profit logic. The profit distribution formula for insurance companies is “premium income + investment income - operating costs - claims expenses.” In 2025, Sheneng P&C’s combined loss ratio was 67.84%, much lower than China Life P&C’s 74.15% and PICC P&C’s 75.1%; however, its combined expense ratio was as high as 32.01%, significantly above the 20%–25% level of leading companies. Industry insiders explained, “High expense ratios are due to costs paid as commissions to brokers or sales staff. The company controls claims tightly to squeeze out profits. For consumers, this means stricter review, slower processes, and higher denial rates.”

Meanwhile, the management structure is also under scrutiny. The Q4 2025 solvency report disclosed that Vice Chairman, Executive Director, and Board Secretary Wu Junhao, as well as Compliance Head Kou Feng, have resigned, with the CEO Sheng Yafeng temporarily taking over compliance responsibilities. Public information shows Wu Junhao was born in June 1965, Kou Feng in August 1964, and Sheng Yafeng in July 1965—all over or near retirement age.

Industry experts suggest that appointing senior managers past retirement age to oversee compliance may face challenges due to limited energy and may also reflect a misalignment with regulatory expectations for management stability. Especially amid increasingly strict compliance requirements, such temporary arrangements are unlikely to be sustainable.

Zhi Peiyuan, Vice President of the Investment Professional Committee of the China Investment Association’s listed company investment, believes that the retirement of the founding team members may mark the end of Sheneng P&C’s “transitional mission,” and the real test has just begun.

Early signs of challenges are evident. In January 2026, Sheneng P&C’s Baoji Center Branch’s Cancang Marketing Service Department was fined 80,000 yuan for using insurance agents to siphon fees, and Shaoxing Center Branch was fined 110,000 yuan for fabricating insurance intermediary business to siphon fees. Both penalties point to the industry’s longstanding issue of fee siphoning, exposing weaknesses in internal controls amid rapid business expansion.

As of the end of Q4 2025, Sheneng P&C’s core solvency adequacy ratio and comprehensive solvency adequacy ratio both stood at 284.05%. While these figures appear stable, the company’s ability to turn its “dark horse” momentum into a steady “stallion” remains uncertain, given the 65.96% auto insurance ratio, 74.1% channel dependence, and the vacancy in compliance leadership. The market is watching closely.