Premium surges 371% amid mixed fortunes behind Sheneng Insurance's "turnaround"

As the 2025 Q4 Solvency Report is disclosed, the annual operational landscape of non-listed property and casualty insurance companies is gradually becoming clearer. In this report card, Shenneng Property Insurance Co., Ltd. (hereinafter “Shenneng P&C”) has emerged as a “dark horse” into 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 the 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 figures, this “Shanghai-based newcomer” faces multiple challenges such as aging management teams, frequent compliance penalties, and a surge in customer complaints.

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

Shenneng 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 assessment, 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 comprehensive investment yield was 2.65%, an increase of 1.44 percentage points year-over-year. In terms of fund utilization, the company invested in institutional products from Pacific Asset Management, Harvest Fund, among others, with a single asset management plan purchase of 2.69 billion yuan from Harvest Fund.

But the real driver behind the 371% premium growth is Shenneng P&C’s innovative market strategy. This insurer, jointly initiated by Shenneng Group, Shanghai International Group, Lingang Group, and six other state-owned enterprises, chose not to directly compete with traditional giants but instead adopted a differentiated approach similar to “breaking into the sinking market.”

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

Data from Tianyancha shows that as of now, among 140 court notices involving Shenneng P&C as defendant, the lawsuits mainly target food delivery platforms, freight transportation, and construction labor services, involving disputes over property insurance contracts, motor vehicle traffic accident liability, and rights related to life, body, and health.

Meanwhile, the company is also capturing the auto insurance market with a low-price strategy: 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, Shenneng P&C’s quotes are often 15% to 25% lower than leading companies.

This “low-price market capture + channel-driven” model has quickly proven effective. In 2025, the company signed policies worth 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 its share of total premiums to 65.96% from 72.91% in 2024; non-auto insurance expanded rapidly, 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 also exposes the “soft spots” of this young insurer. Since the beginning of 2026, Shenneng P&C has been listed twice as a defendant in court: in January, Wuhu Jinghu District People’s Court filed a case for approximately 406,500 yuan, and in February, Haifeng County People’s Court included a case for 114,600 yuan. Although the amounts are small, the signals are noteworthy.

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

Behind these conflicts may lie Shenneng P&C’s unique profit logic. The profit distribution formula for insurers is “premium income + investment income - operating costs - claims expenses.” In 2025, the company’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 expenses tightly to extract 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, along with 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 nearing or past retirement age.

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

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

Early signs of challenges are emerging. In January 2026, Baoji branch of Shenneng P&C was fined 80,000 yuan for using insurance agents to siphon fees; Shaoxing branch was fined 110,000 yuan for fabricating intermediary business to siphon fees. Both penalties point to the longstanding industry issue of fee siphoning, exposing lagging internal controls amid rapid business expansion.

As of the end of Q4 2025, Shenneng P&C’s core solvency adequacy ratio and comprehensive solvency adequacy ratio stood at 284.05%. While seemingly stable, the company faces a 65.96% auto insurance share, 74.1% channel dependence, and a vacancy in compliance leadership. Whether this “dark horse” can turn its “momentum” into a “steady steed” remains to be seen.