From a loss of 2.4 billion to a net profit of 435 million! Sheneng Property & Casualty Insurance's performance makes a comeback, with executive departures drawing attention

Among non-listed property and casualty insurance companies, Sheneng Property & Casualty Insurance Co., Ltd. (hereinafter referred to as “Sheneng P&C”) has become a industry focus due to its performance in its first full operating year since opening. The company’s insurance business revenue reached 16.562 billion yuan, a year-on-year increase of over three times, ranking fourth among 76 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, achieving a turnaround.

Sheneng P&C’s founding background is unique. In January 2024, it was jointly initiated by eight state-owned enterprises; in September of the same year, it was approved to acquire Tianan P&C’s insurance business, and in October, it completed the transfer of Tianan P&C’s insurance assets. After acquiring the asset package, the company experienced a 2.499 billion yuan goodwill impairment in Q4 2024, resulting in an annual loss. However, after entering 2025, the company quickly adjusted, and its performance significantly improved.

In terms of personnel changes, the solvency report for Q4 2025 shows that Vice Chairman, Executive Director, and Board Secretary Wu Junhao, as well as Compliance Officer Kou Feng, have left. Due to reaching retirement age, compliance responsibilities are temporarily delegated to President Sheng Yafeng. Wu Junhao has a rich career, starting in academia, then moving into securities investment consulting and research. He joined Sheneng system in 2003, has over ten years of experience in finance, and has held important positions at several financial institutions. Kou Feng previously served as Deputy General Manager of the Legal and Compliance Department at Taibao P&C and as Head of Legal and Compliance at Tianan P&C’s Trust Group. Since September 2024, he has been responsible for compliance at Sheneng P&C.

Experts point out that the departure of Wu Junhao and Kou Feng may mark the end of Sheneng P&C’s “transition period mission.” Initially, the company was built by a hybrid management team from Sheneng, Taibao, and Tianan, with core tasks including establishing governance structures, handling historical burdens, and pushing the business onto a stable track. Now that the company has turned profitable and its structure is stable, the phased goals of the founding team have been achieved. However, some believe that having an overage senior executive as the compliance head, a role central to risk prevention and control, may lead to insufficient energy and may deviate from regulatory expectations. Such temporary arrangements are not a long-term solution.

Sheneng P&C’s management team is composed of forces from Sheneng, Taibao, and Tianan. The company was officially established on January 16, 2024, with a registered capital of 10 billion yuan. The actual controller is Sheneng Group, which holds 50% of the shares through Sheneng Investment Management Co., Ltd. and Sheneng Co., Ltd. Chairman Gong Dexiong, appointed by Sheneng Group, has over 30 years of financial experience; President Sheng Yafeng has over 30 years in the industry, having held key positions at Taibao Property & Casualty and led risk disposal at Tianan P&C. In the second half of 2024, key personnel such as Zhu Dewu, the former Chief Actuary of Tianan P&C, and Assistant President Xu Huilin were approved; in 2025, the management team expanded further, forming a core structure of “one president and four vice presidents.” Currently, including the chairman, the senior management team has 10 members, all born in the 1960s and 1970s, with the general manager already retired. Analysts believe that Sheneng P&C lacks long-term talent planning, and if more senior executives retire in the future, management gaps could pose risks.

In terms of performance, Sheneng P&C achieved significant growth in insurance business revenue and net profit in 2025, mainly due to improvements on the underwriting side. By the end of 2025, the company’s combined cost ratio dropped to 99.85%, below the breakeven point; the combined loss ratio and expense ratio both decreased year-on-year. Investment income also increased, reaching 2.72% in 2025, up 1.46% from 2024. Regarding risk ratings, the company’s BBB rating was maintained in Q2 and Q3 of 2025; by the end of Q4, the core solvency adequacy ratio and comprehensive solvency adequacy ratio were both 284.05%.

In terms of business structure, Sheneng P&C is also making adjustments. In 2025, the premium for auto insurance signed was 10.92 billion yuan, accounting for 65.96%, down from 72.91% in 2024; non-auto insurance grew rapidly, with the top five insurance types totaling 4.947 billion yuan in signed premiums, providing new growth momentum. However, some experts warn that the 65.96% auto insurance share poses risks amid ongoing reforms, with the “Matthew effect” intensifying in the auto insurance industry, squeezing profit margins for small and medium insurers. Over-reliance on a single business could amplify market cycle risks.

From its inception, Sheneng P&C has positioned itself as a green property insurance company, leveraging the energy sector advantages of its shareholders to explore a differentiated development path. After acquiring Tianan P&C, whether the company can achieve breakthroughs in green insurance remains to be seen.