16.5 billion in premiums pushes the company into the top four in the industry! Two top executives at Sheneng Property & Casualty Insurance have submitted their resignations

Author | Xie Meiyu

Editor | Fu Ying

Source | Dujiao Finance

In the 2025 performance report of non-listed property and casualty insurance companies, Sheneng Property & Casualty Insurance Co., Ltd. (hereinafter referred to as “Sheneng P&C”) has become the most eye-catching “dark horse.”

In its first full operating year since opening, Sheneng P&C’s insurance business income reached 16.562 billion yuan, more than tripling year-on-year, ranking fourth in the industry; net profit also shifted from a loss of 2.458 billion yuan in 2024 to a profit of 435 million yuan.

Sheneng P&C was jointly initiated by eight state-owned enterprises in January 2024; in September 2024, it was approved to acquire Tianan P&C’s insurance business, and in October of the same year, completed the transfer of Tianan P&C’s insurance assets. The company’s 2024 losses mainly occurred in the fourth quarter, with a goodwill impairment of 2.499 billion yuan after acquiring Tianan P&C’s asset package in October.

On the personnel front, Sheneng P&C’s solvency report for the fourth quarter of 2025 shows that Vice Chairman, Executive Director, and Board Secretary Wu Junhao, as well as Compliance Officer Kou Feng, have resigned. Compliance duties are temporarily assumed by President Sheng Yafeng, who is of retirement age.

Since its inception in early 2024, Sheneng P&C’s management team has been composed of three forces: the “Sheneng system” from the state-owned major shareholder, the “Taibao system” from the former custodian Taiping Insurance, and the “Tianan system” retained to maintain business continuity. The departure of Vice Chairman Wu Junhao and Compliance Officer Kou Feng represents a leadership change between the “Sheneng” and “Taibao” factions.

Sheneng P&C has completed a turnaround from “taking over losses” to “rising as a dark horse” in just one year, but the real test may have just begun. After new executives take office, how will they unify teams with different backgrounds? Can they turn the current bright performance of the “dark horse” into a long-term steady “stallion”?

1

Vice Chairman and Compliance Officer Resign,

President Sheng Yafeng Temporarily Takes Over Compliance Responsibilities

Data shows Wu Junhao was born in June 1965, reaching retirement age.

Wu Junhao began his career in academia. In 1986, he graduated from East China Normal University with a degree in Political Economics from the Department of Economics. He was then assigned to Jiangsu Chemical College (now Changzhou University) to teach Business Management. In 1997, Wu returned to East China Normal University for graduate studies in Business Management, graduating in 2000, and then engaged in securities investment consulting research.

In 2003, Wu entered the Sheneng system and has been in the financial sector for over ten years. From September 2003 to January 2006, he served as Deputy Supervisor at Shanghai Sheneng Asset Management Co., Ltd.; from January 2006 to April 2011, he was Deputy Supervisor, Supervisor, and Senior Supervisor of Sheneng (Group) Asset Management Department, and Deputy Manager of Financial Management Department (leading the work); from April 2011 to January 2024, he was General Manager of Sheneng (Group) Financial Management Department. Wu has also served as director and supervisor at various financial institutions, including China Pacific Insurance, Orient Securities, and Everbright Bank, representing Sheneng Group in exercising shareholder rights and participating in major decisions.

In 2024, with the establishment of Sheneng P&C, Wu’s career entered its “final station,” becoming Vice Chairman and Executive Director in April; three months later, he also took on the role of Board Secretary. His positions indicate he was involved in building the new company’s governance structure and was one of the key figures shaping its strategic direction.

Similarly, Kou Feng, also of retirement age, was born in August 1964. He was appointed Compliance Officer of Sheneng P&C in September 2024. Previously, he served as Deputy General Manager of Legal Compliance at Taibao P&C, Head of Legal & Compliance at Tianan P&C’s entrusted management team, and temporary Compliance Officer at Sheneng P&C.

Zhi Peiyuan, Vice President of the Listed Company Investment Committee of China Investment Association, pointed out, “The retirement of Wu Junhao and Kou Feng may mark the end of Sheneng P&C’s ‘transition period mission.’ The initial management team, formed by Sheneng, Taibao, and Tianan factions, was mainly tasked with establishing governance, handling legacy issues, and pushing the business onto a normal track. Now that the company is profitable and its structure stable, the phased goals of the founding team have been achieved.”

It’s worth noting that after Kou Feng’s departure, compliance duties are temporarily handled by President Sheng Yafeng, who was born in July 1965 and has also reached retirement age.

Yuan Shuai, co-founder of Xinzhipai New Quality Productivity Salon, commented, “As the core role in risk prevention and control, a compliance officer’s appointment requires not only professional qualifications but also compliance with regulatory implicit requirements regarding age and ongoing performance. Having an over-age executive temporarily handle compliance duties may face practical issues such as insufficient energy to manage high-intensity compliance work, and could conflict with regulatory guidance favoring a stable and younger management team. Especially in an industry with increasingly strict compliance standards, such temporary arrangements are not sustainable and may raise concerns or doubts from regulators about the company’s compliance capabilities.”

2

Integration of Sheneng, Taibao, and Tianan Forces,

Management Mainly Composed of '60s and ‘70s Generations’

The birth of Sheneng P&C was driven by the combined efforts to mitigate financial risks and implement state-owned asset strategies. The company was officially established on January 16, 2024, with a registered capital of 10 billion yuan, ranking among the largest in the property and casualty industry. As of the end of Q4 2025, Sheneng P&C’s total assets reached 25.346 billion yuan, with net assets of 7.973 billion yuan. The actual controller is Sheneng Group, which holds 50% of the shares through Sheneng Investment Management Co. (45%) and Sheneng Co., Ltd. (5%).

Since its founding, the management team has been undergoing adjustments.

Specifically, in January 2024, Gong Dexiong, born in October 1969, was appointed Chairman. Coming from asset management, Gong was assigned by Sheneng Group and has over 30 years of financial experience. His background includes roles at Guotai Junan Securities as Party Committee Member, Vice President, and head of asset management and wealth management committees; Chairman of Guotai Junan Asset Management; Chairman of Guotai Junan Capital; Chairman, General Manager, and Executive Committee Chairman of Guotai Junan Innovation Investment; Vice President of Sheneng Group; Party Secretary, Executive Director, and Chairman of Orient Securities; and Executive Director and General Manager of Sheneng Investment Management.

The President working alongside Gong is Sheng Yafeng, also a well-known industry veteran with over 30 years of experience. Before joining Sheneng P&C, Sheng spent most of his career at Taibao P&C, holding roles such as Assistant General Manager of Domestic Business Department II and I, Deputy General Manager of Auto Insurance Department, Deputy General Manager of Chengdu Branch, General Manager of Market Department, Sales Management Department, Product Business Center, and Accident & Health Insurance Department, Claims Director, and Executive Vice President.

In July 2018, Sheng was approved as General Manager of Taibao P&C; in March 2021, Taibao P&C announced his resignation due to work adjustments. Subsequently, Sheng served as Head of Tianan P&C’s entrusted management team, leading risk disposal efforts, and ultimately facilitating the transfer of Tianan P&C’s business to the newly established Sheneng P&C, marking the completion of that risk management phase.

Meanwhile, Sheneng P&C’s leadership team has gradually expanded.

In the second half of 2024, key personnel such as Chief Actuary Zhu Dewu and Assistant President Xu Huilin were approved; in January 2025, new Supervisors Zhao Bin and Director Chen Hui joined; in May 2025, the company further expanded with the appointment of Deputy General Managers Li Jing, the Chief Digital Officer, and Zhou Houhuo, former General Manager of Taibao Hubei Branch, forming a core structure of “one president and four vice presidents.”

Looking at their backgrounds, most come from three main factions, representing the major shareholders’ interests: the “Sheneng faction” includes Chairman Gong Dexiong (Vice President of Sheneng Group), Vice Chairman Wu Junhao, and CFO Li Zhenghao; the “Taibao faction” includes General Manager Sheng Yafeng, Deputy General Managers Song Rongzhong, Zhou Houhuo, Compliance Officer Kou Feng, and Audit Lead Wen Xia; some executives from the original “Tianan faction” remain, such as Chief Actuary Zhu Dewu and Assistant General Manager Xu Huilin.

Currently, including the chairman, Sheneng P&C’s executive team has 10 members, all born in the 1960s or 1970s, with the general manager already at retirement age. Yuan Shuai commented, “Mature insurance companies usually start selecting and training backup executives 3 to 5 years in advance, through rotations and special projects to build management experience among young cadres. Sheneng P&C, after two years, still lacks a management team with a reasonable age structure. If many senior managers retire simultaneously in the future, the company risks management gaps. This also reveals a lack of long-term talent planning and that cultivating young talent has not been integrated into the core development agenda.”

Source: Sheneng P&C official website

3

From 2.4 Billion Loss to 435 Million Profit,

Auto Insurance Accounts for Nearly 70%

While management team adjustments continued, Sheneng P&C also delivered impressive performance results.

In 2025, the company achieved insurance business income of 16.562 billion yuan, a year-on-year increase of 371.58%, ranking fourth among 76 non-listed property and casualty insurers; net profit reached 435 million yuan, compared to a net loss of 2.481 billion yuan a year earlier. The loss in 2024 was mainly due to a goodwill impairment of 2.499 billion yuan after acquiring Tianan P&C’s assets, which plunged the company into difficulties in Q4 2024.

The turnaround was primarily driven by improvements on the underwriting side.

By the end of 2025, Sheneng P&C’s combined ratio fell below the breakeven point of 100%, to 99.85%; specifically, the claims ratio decreased by 3.03 percentage points to 67.84%, and the expense ratio dropped by 2.45 percentage points to 32.01%. Yuan Shuai said, “This was likely achieved through precise risk pricing and strict underwriting and claims management, which helped reduce both the combined claims and expense ratios, breaking away from the previous reliance on investment income to cover underwriting losses.”

Source: Sheneng P&C solvency report

In addition, Sheneng P&C’s investment income in 2025 reached 2.72%, up from 1.26% in 2024, an increase of 1.46 percentage points; the comprehensive investment yield was 2.65%, up 1.44%. In terms of asset allocation, in 2025, Sheneng P&C invested in Pacific Asset, Huifu Tian Fund, Dongzheng Asset Management, and products under Guotai Junan. Notably, Sheneng P&C invested 2.69 billion yuan in Huixianfu Fund - Sheneng P&C Single Asset Management Plan, with an expected investment period no longer than October 2027.

Regarding risk ratings, Sheneng P&C’s second and third quarter comprehensive risk results in 2025 were both BBB. As of the end of Q4, the company’s core solvency adequacy ratio and comprehensive solvency adequacy ratio were both 284.05%.

Meanwhile, the company’s business structure is quietly evolving. In 2025, auto insurance premiums signed totaled 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 premiums, providing new growth engines.

However, Zhi Peiyuan pointed out, “A 65.96% share of auto insurance indicates relatively high risk amid deepening industry reforms. The auto insurance sector’s Matthew effect intensifies, and profitability for small and medium insurers continues to shrink. Over-reliance on a single, highly competitive segment could amplify market cycle risks. If industry price wars escalate, it could directly drag down overall profits.”

Sheneng P&C, born from taking over Tianan P&C, explicitly positioned itself as a green property insurance company at its inception, leveraging the energy sector’s advantages to explore differentiated development. Do you think Sheneng P&C can sustain high growth and profitability in the future?