Huatai Securities pointed out that insurance companies' profits mainly come from insurance service performance and investment performance. Among them, insurance service performance is relatively stable, and investment performance is the main reason for profit fluctuations. Insurance capital substantially increased equity positions in 2025. In the first quarter of 2026, the stock market fluctuated sharply due to the geographical conflict in the Middle East. The Shanghai Composite Index fell 1.94% in the first quarter of 2026, compared to only 0.48% in the first quarter of 2025. While fluctuations in the equity market have increased, insurance companies' equity positions have increased markedly compared to the same period last year. It is expected that stock market fluctuations will put some pressure on insurers' profit performance during the quarter.

Huatai Securities pointed out that insurance companies' profits mainly come from insurance service performance and investment performance. Among them, insurance service performance is relatively stable, and investment performance is the main reason for profit fluctuations. Insurance capital substantially increased equity positions in 2025. In the first quarter of 2026, the stock market fluctuated sharply due to the geographical conflict in the Middle East. The Shanghai Composite Index fell 1.94% in the first quarter of 2026, compared to only 0.48% in the first quarter of 2025. While fluctuations in the equity market have increased, insurance companies' equity positions have increased markedly compared to the same period last year. It is expected that stock market fluctuations will put some pressure on insurers' profit performance during the quarter.