Tax authorities in several parts of China have started to apply personal income tax rates of 20% on returns from Hong Kong insurance policies, including dividend payouts and interest earned on prepaid premiums, according to a report by Reuters.
Industry analysts warn that market corrections in China in July 2026 may have already wiped out much of the short-term investment gains made by unlisted life insurers in the first half of the year, highlighting the sector's increasing vulnerability to capital market fluctuations amid a prolonged low-interest-rate environment.
China's 10 major bank-affiliated life insurance companies posted a massive surge in earnings during the first half of 2026, driven by favourable market conditions and accounting changes.
Current health management models offered by insurers in China are concentrated on treatment-related services, while prevention, continuous health management and long-term care are relatively underdeveloped, according to a study by Swiss Re Institute (SRI).
China's unlisted life insurance sector has reported a dramatic surge in net profits for the first half of 2026, driven largely by a strong second-quarter equity market recovery and the implementation of new accounting standards.
Zurich Insurance Group reported strong first-half 2026 results for its Asia Pacific business, driven by continued growth in its Life & Savings (L&S) and P&C operations. For the six months ended 30 June, the insurer posted Business Operating Profit (BOP) of $348m, up 15% from a year earlier. Life & Savings BOP rose 19% as insurance revenue increased 16% to $1.4bn. P&C BOP, meanwhile, climbed 12% alongside an 11% increase in GWP to $2.3bn. The business also reported a combined ratio of 94.0%.
Swiss Re reported that its second-quarter net income for 2026 reached $1.3bn, bringing its first-half net income to $2.8bn. This came as improved earnings across all three business units kept the reinsurer on track to meet its full-year target of $4.5bn. The group's return on equity was 22.7% in the first half, while insurance service result rose to $3.5bn from $3.0bn a year earlier. Swiss Re said it paid more than $17bn in claims during the period while maintaining a strong capital position with an estimated Swiss Solvency Test (SST) ratio of 264% as of 1 July.
MetLife reported second-quarter 2026 net income of $705m, up 1% from a year earlier, while adjusted earnings rose 15% to $1.6bn on the back of favourable underwriting performance and volume growth. Adjusted earnings per share increased 20% to $2.43, while premiums, fees and other revenues (PFOs) climbed 7% to $13.7bn. Excluding pension risk transfers (PRT), adjusted PFOs rose 5% to $13.0bn, reflecting broad-based growth across all operating segments.
Heirs Insurance Group (Heirs) has met the National Insurance Commission's (NAICOM) recapitalisation requirements, with both Heirs General Insurance and Heirs Life Assurance included on the regulator's list of insurance companies that have satisfied the revised minimum capital requirements by the 31 July deadline.
The preliminary results of the Saudi insurance market for the first half of this year suggest that the sector is gradually moving beyond the difficult conditions experienced throughout 2025, according to BADRI Management Consultancy, an international actuarial and risk management firm.