The Zhitong Finance App learned that Huachuang Securities released a research report saying that as of 2026H1, the balance of insurance funds used reached 40.8 trillion yuan, and the total allocation of stocks and funds reached a record high of 16.2%. After combining long-term equity investments, the overall equity share reached 23.8%. There is still some room before the 30% equity allocation limit, and the share of high dividend stocks is at an all-time high of 74%. Listed insurers generally increased their equity allocations, and bond allocations showed five increases and one flat, and two declines. On August 21, 2026, the General Administration of Financial Supervision issued the “Measures for the Management of Insurance Companies' Assets and Liabilities”, which will be implemented on January 1, 2027. Regulatory indicators such as interest rate risk hedging ratio, comprehensive investment return coverage rate, net investment income coverage rate, and liquidity coverage rate have been established. Listed insurers have basically met the standards, and the pressure on unlisted insurers is relatively obvious. The bank estimates that the 2026-2027 insurance premium inflow is about 6.2/6.4 trillion yuan, corresponding to an incremental market entry capital of about 740/760 billion yuan (neutral), and the potential dividend allocation requirement is about 600 billion yuan.
The main views of Huachuang Securities are as follows:
2026H1 Insurance Capital Allocation Industry Situation: Equity Positions Break Through Historic Highs
As of 2026H1, the balance of insurance capital utilization reached 40.8 trillion yuan, and the total allocation of stocks and funds reached a record high of 16.2%. After adding long-term equity investments, the overall equity ratio reached 23.8%, and there is still some room before the 30% equity allocation limit. The growth rate of premiums on the capital side continues to subside, and is expected to bottom up in September-December. The annual premium inflow is expected to be around 6.2 trillion yuan. As of 2026Q2, the top five industries in which insurance capital is heavily traded are banking, utilities, home appliances, electronics, and transportation. Banks account for about 40% to 60% for a long time. Among them, 74% of those with high dividends are at an all-time high. It is expected that Q2 will focus on increasing positions in utilities, steel, banks, etc.
Listed insurers: Generally increased equity, differentiated stock styles
The core equity rankings of 2026H1 listed insurers were Xinhua 25.6%, Ping An 19.4%, China Life Insurance 19.2%, Taiping 18.1%, Financial Insurance 18.0%, Human Insurance 15.4%, Taibao 13.9%, and Sunshine 13.1%, which is a general increase over the end of the previous year; bond allocations showed five increases and one flat, and the non-standard share continued to decline. The equity allocation is mainly based on direct stock investment, and FVOCI's share of stocks rose by five and three fell. Looking at the allocation style from accounting classification, it is expected that China Life Insurance and Xinhua will be flexible and enterprising, that Taibao, Taiping, and People's Insurance will be relatively balanced, and that Financial Insurance, Sunshine, and Ping An will be relatively stable.
New Asset Liability Regulations: Establishing Long-term Asset-Liability Matching Restrictions for Insurance Companies
On August 21, 2026, the General Administration of Financial Supervision issued the “Measures for the Management of Insurance Companies' Assets and Liabilities” (new asset liability regulations), which will be implemented from January 1, 2027. Companies that do not meet the target can apply for a three-year transition period. The method clarifies the three goals of term structure matching, cost and benefit matching, and liquidity matching, as well as the four principles of comprehensive coverage, reasonable matching, prudence, and overall coordination. The core method is to establish regulatory indicators and monitoring indicators: personal insurance company regulatory indicators include interest rate risk hedging rate, comprehensive investment return coverage, net investment return coverage, and liquidity coverage. The monitoring indicators include effective long-term gap, base point value change rate, and interest spread 3/4; financial insurance company regulatory indicators are settled capital coverage, revenue coverage, and liquidity coverage. The monitoring indicators include interest spreads of 1/2 and interest spreads under stressful situations.
Analysis of indicators related to the new asset liability regulations: the regulatory indicators of the last insurer are under pressure, and joint efforts are needed to fill the gap
Personal insurance companies are most clearly under pressure on regulatory indicators under the new asset liability regulations. The net investment/comprehensive investment income coverage ratio may face obvious challenges. Listed insurers have basically met the regulatory standards of the new regulations, and the pressure on unlisted insurers is relatively obvious. According to data from 70 unlisted personal insurance companies, the five-year average comprehensive return on investment of about 9% is less than 4%; underperforming insurers need joint efforts: the asset side is high to grasp the timing of long-term debt allocation to shorten the long-term gap, allocate high dividends to consolidate the net return on investment, etc.; the debt side balances the growth of new orders with cost control, controls the long-term period of debt without significantly lengthening, and promotes dividend insurance transformation to reduce the rigid cost pressure of stocks.
calculation
Calculated from a flow perspective, the 2026-2027 insurance premium inflow is expected to be about 6.2/6.4 trillion yuan, with an additional investable capital of about 3.75/3.86 trillion yuan, corresponding to market entry incremental capital of about 7400/760 billion yuan (neutral); considering market capitalization fluctuations, equity positions are expected to increase by about 1 trillion yuan in 2026 under a neutral scenario. In terms of potential dividend demand, assuming that 20% of the bottom insurers and strategies do not meet the net investment return coverage standards compared to aggressive insurers, a high dividend combination is needed to fill the 0.6% yield gap, corresponding to the dividend allocation requirement of about 600 billion yuan. Judging from the pace of FVOCI allocation, it is estimated that 2026H2 insurance capital (excluding Ping An) will allocate an additional 1400+ billion yuan of FVOCI shares, which combined with the premium inflow to Ping An will contribute an additional 50+ billion yuan per year.
Risk warning: Model assumption errors, model calculation errors, equity market fluctuations, rapid decline in long-term interest rates, and lower premium growth than expected.