CHINA LIFE INSURANCE COMPANY LIMITED ANNOUNCES 2022 INTERIM RESULTS (H SHARES)

HONG KONG, Aug. 25, 2022 /PRNewswire/ — China Life Insurance coverage Firm Restricted (SSE: 601628, SEHK: 2628, NYSE: LFC) declares the unaudited consolidated outcomes of the Firm (China Life Insurance coverage Firm Restricted and its subsidiaries) for the six months ended 30 June 2022 (the “Reporting Interval”) ready beneath the Worldwide Monetary Reporting Requirements as we speak.

Highlights

• As on the finish of the Reporting Interval, the Firm’s whole property reached RMB5,173,524 million, a rise of 5.8% from the tip of 2021. The Firm’s embedded worth was RMB1,250,877 million, a rise of 4.0% from the tip of 2021, and the Firm’s enterprise worth continued to take the lead within the trade.

• Throughout the Reporting Interval, the Firm’s whole income was RMB516,670 million; the Firm’s gross written premiums had been RMB439,969 million, and its trade management was additional enhanced; the worth of half 12 months’s gross sales for the six months ended 30 June 2022 was RMB25,745 million.

• As on the finish of the Reporting Interval, the Firm’s funding property reached RMB4,977,082 million, a rise of 5.5% from the tip of 2021. Throughout the Reporting Interval, the Firm’s web funding earnings was RMB97,009 million, rising by 8.1% 12 months on 12 months. The gross funding yield was 4.21%, the web funding yield was 4.15%. The great funding yield taking into consideration the present web honest worth modifications of available-for-sale securities acknowledged in different complete earnings was 3.75%.

• Throughout the Reporting Interval, web revenue attributable to fairness holders of the Firm was RMB25,416 million.

• The Firm is not going to declare an interim dividend of odd shares for the Reporting Interval. 

Evaluate of Enterprise Operations within the First Half of 2022

Within the first half of 2022, dealing with the more and more sophisticated and difficult worldwide setting, in addition to a number of and sporadic outbreaks of the COVID-19 pandemic in China, the home economic system was beneath new and rising downward strain. The expansion of insurance coverage premiums additional slowed down as a result of profound changes within the life insurance coverage trade, the decelerated launch of insurance coverage calls for and a decline of gross sales pressure. Throughout the Reporting Interval, regardless of exceptionally sophisticated and troublesome circumstances, the Firm prioritized stability whereas pursuing progress, adhered to the unique perform of insurance coverage, continually deepened supply-side reforms, and coordinated the pandemic management and high-quality growth. In consequence, its total enterprise operations registered a gentle efficiency with sound momentum, its enterprise scale and worth continued to steer the trade, the standard and effectivity of its operations and companies had been persistently improved, and its complete strengths had been steadily enhanced with its main place within the trade additional solidified.

The Firm continued to deepen reforms and innovation and promoted transformation and improve in key areas, injecting new driving forces for its high-quality growth. The person agent enterprise sector persistently pushed ahead the transformation of gross sales pressure to be high-quality, skilled and environment friendly by specializing in its high quality enchancment. The diversified enterprise sector persistently optimized its enterprise mode, with its functionality in specialised enterprise operations persevering with to extend. For the funding sector, the achievements of market-oriented reforms had been constantly consolidated. Adhering to the top-level allocation technique, the Firm additional improved the construction of asset allocation, and the long-term funding deployment was optimized. The know-how sector facilitated the combination of inside and exterior information and digital collaboration, and totally enhanced its functionality in digital connectivity inside and out of doors the Firm by deepening the development of its digital platform. The operation sector innovatively promoted the implementation of a nationwide built-in mannequin of clever centralization and sharing for enterprise operations, persistently bolstered the safety of shoppers’ rights and pursuits, constructed up its service model, and additional enhanced service effectivity and buyer expertise, with a view to offering clients with “handy, high quality and caring” operations and companies.

Within the first half of 2022, the trade entered right into a stage of profound changes. The Firm prioritized enterprise worth and demonstrated higher resilience in its enterprise growth, with its enterprise scale and worth persevering with to steer the market. Throughout the Reporting Interval, the Firm’s gross written premiums amounted to RMB439,969 million, usually remaining steady as in comparison with the corresponding interval final 12 months, and its trade management was additional enhanced. The Firm’s enterprise worth continued to take the lead within the trade. Notably, as on the finish of the Reporting Interval, the embedded worth of the Firm reached RMB1,250,877 million, a rise of 4.0% from the tip of 2021; within the first half of 2022, the worth of half 12 months’s gross sales was RMB25,745 million, a lower of 13.8% 12 months on 12 months. The important thing efficiency indicators of the Firm noticed steady progress. Premiums from new insurance policies had been RMB139,358 million, a rise of 4.1% 12 months on 12 months. The primary-year common premiums had been RMB79,838 million, a lower of 1.0% 12 months on 12 months. Specifically, first-year common premiums with a fee length of ten years or longer had been RMB30,226 million, a rise of 4.4% 12 months on 12 months. Because of the impression of maturity of premium fee phrases of sure insurance coverage merchandise, renewal premiums had been RMB300,611 million, a lower of two.5% 12 months on 12 months. Throughout the Reporting Interval, the give up price was 0.51%, a lower of 0.16 share level 12 months on 12 months.

As on the finish of the Reporting Interval, the whole property of the Firm surpassed RMB5 trillion to RMB5,173,524 million, rising by 5.8% from the tip of 2021. Adhering to its strategic consistency and with an emphasis on the asset-liability interplay, the Firm persistently carried out its medium- to long-term strategic plan of asset allocation, continued to optimize its allocation to core funding property, and actively seized the long-term allocation alternatives throughout the fairness market corrections. Because of the impression of the short-term volatilities in fairness market, the Firm registered a gross funding earnings of RMB98,542 million, a lower of 16.2% 12 months on 12 months, and the gross funding yield was 4.21%, down by 148 foundation factors from the corresponding interval of 2021. Internet revenue attributable to fairness holders of the Firm was RMB25,416 million, a lower of 38.0% 12 months on 12 months.

Insurance coverage Enterprise

Throughout the Reporting Interval, gross written premiums from the life insurance coverage enterprise of the Firm had been RMB356,528 million, a year-on-year lower of 0.1%. Gross written premiums from the medical insurance enterprise had been RMB75,284 million, a year-on-year lower of 1.4%. Gross written premiums from the accident insurance coverage enterprise had been RMB8,157 million, a year-on-year lower of 9.7%.

Within the first half of 2022, there have been extreme complexities and uncertainties for the event of the trade, which posed higher challenges to the event of the Firm’s insurance coverage enterprise. The Firm saved a detailed eye on the change of the market calls for, maintained strategic consistency, and adjusted its growth ways in a well timed method. It centered on the fundamental operational models, strived to consolidate its basis by way of specialised operation, standardized administration, market-oriented mechanism and technological help, and unswervingly pursued the high-quality growth of its companies, thereby solidifying its market main benefits additional. As on the finish of the Reporting Interval, the variety of whole gross sales pressure of the Firm was 810,000.

Particular person Agent Enterprise Sector

The person agent enterprise sector strived to make progress whereas sustaining stability, persistently deepened enterprise restructuring, and noticed steady progress of enterprise growth. Throughout the Reporting Interval, gross written premiums from the sector had been RMB352,487 million, a lower of three.1% 12 months on 12 months. Renewal premiums amounted to RMB274,016 million, a lower of three.9% 12 months on 12 months. First-year common premiums had been RMB68,957 million, a rise of 0.5% 12 months on 12 months. Specifically, first-year common premiums with a fee length of ten years or longer had been RMB30,212 million, a rise of 4.7% 12 months on 12 months, and its proportion within the first-year common premiums rose by 1.76 share factors 12 months on 12 months. Within the first half of 2022, the worth of half 12 months’s gross sales of the sector was RMB24,185 million, a lower of 16.5% 12 months on 12 months, and new enterprise margin by annual premium equal was 30.4%, a lower of 6.1 share factors 12 months on 12 months.

Throughout the Reporting Interval, the Firm continued to drive enterprise by way of productive brokers, upheld the gross sales pressure technique of “stabilizing headcount whereas looking for for larger productiveness”, and the scale of its gross sales pressure was usually stabilized with enhanced high quality. As on the finish of the Reporting Interval, the variety of brokers of the sector was 746,000, together with 476,000 brokers from the final gross sales workforce and 270,000 brokers from the upsales workforce, and the proportion of the variety of high-performance brokers remained steady. Within the first half of 2022, the person agent enterprise sector actively responded to a number of challenges from the common pandemic prevention and management in addition to the change of the market setting, centered on the fundamental operational models and adopted varied measures to stimulate the vitality of its gross sales groups. The Firm rolled out the “Zhongxin Challenge” particularly for build up a specialised {and professional} agent workforce. It additionally upgraded its basic agent pressure administration rule, specializing in newly recruited brokers, agent managers and high-performance brokers, and additional enhanced its enterprise high quality administration. In the meantime, the Firm pushed ahead technology-empowered gross sales and workforce administration in nice depth. Via the digital platforms resembling “China Life e-learning” and clever coaching system, the Firm strengthened on-line coaching and threat compliance schooling to revitalize its gross sales groups in an orderly method, with a view to pushing ahead their high-quality growth.

Diversified Enterprise Sector

By concentrating on specialised operation, high quality and effectivity enhancement, in addition to transformation and innovation, the diversified enterprise sector coordinated nicely with the person agent enterprise sector and actively developed the bancassurance enterprise, group insurance coverage, and medical insurance companies. The bancassurance channel additional promoted and carried out its enterprise mode transformation and the operation modes of group insurance coverage and medical insurance had been optimized for regular development.

Bancassurance Channel   The bancassurance channel actively deepened its cooperation with banks, steadily enhanced its enterprise scale and worth, and step by step strengthened its functionality of sustainable growth. Throughout the Reporting Interval, gross written premiums from the channel amounted to RMB42,609 million, a rise of 23.7% 12 months on 12 months. First-year common premiums had been RMB10,864 million, a lower of 9.4% 12 months on 12 months. Specifically, first-year common premiums with a fee length of 5 years or longer had been RMB3,511 million. Renewal premiums amounted to RMB25,707 million (a year-on-year enhance of 15.5%), accounting for 60.33% of gross written premiums from the channel. The bancassurance channel continually enhanced the skilled and technological functionality of its account supervisor workforce, the standard of which was steadily improved. As on the finish of the Reporting Interval, the variety of account managers of the bancassurance channel was 23,000, the quarterly common energetic managers remained steady, and the productiveness per supervisor elevated constantly.

Group Insurance coverage Channel   With high-quality growth because the guideline, the group insurance coverage channel coordinated enterprise scale and profitability and pushed ahead steady growth in all enterprise traces. Throughout the Reporting Interval, gross written premiums from the channel had been RMB16,759 million, a rise of 0.4% 12 months on 12 months. Quick-term insurance coverage premiums from the channel had been RMB15,165 million, a rise of two.3% 12 months on 12 months. As on the finish of the Reporting Interval, the variety of direct gross sales representatives was 41,000, wherein the proportion of high-performance personnel rose by 6 share factors from the tip of 2021.

Different Channels   Within the first half of 2022, gross written premiums from different channels had been RMB28,114 million, a rise of two.8% 12 months on 12 months. The Firm proactively participated in a wide range of government-sponsored medical insurance companies. As on the finish of the Reporting Interval, the Firm carried out over 200 supplementary main medical bills insurance coverage packages, masking practically 350 million individuals. It additionally undertook over 300 well being care entrusted packages, offering companies to greater than 100 million individuals; over 60 long-term care insurance coverage packages in 17 provinces and cities, masking practically 26 million individuals; and greater than 170 supplementary medical insurance coverage packages in 26 provinces and cities, masking over 58 million individuals. The Firm actively participated within the building of a multi-tiered social safety system and carried out practically 70 city-customized industrial medical insurance coverage tasks in 21 provinces and cities accumulatively, masking greater than 18 million individuals.

Lately, the Firm has enormously developed the net insurance coverage enterprise and supplied clients with high quality service expertise by way of online-to-offline gross sales and on-line direct gross sales. Throughout the Reporting Interval, the Firm’s on-line insurance coverage enterprise grew quickly. Whole premiums beneath the China Banking and Insurance coverage Regulatory Fee caliber had been RMB38,872 million, a rise of 121.5% 12 months on 12 months, reaching a brand new report excessive. By adhering to the target of “enhancing and optimizing the OTO enterprise, actively increasing the general public area visitors enterprise, and attaining a breakthrough in unique on-line insurance coverage enterprise”, the Firm persistently optimized its on-line group and enterprise system that includes centralized operation and unified administration, and supplied a wide range of merchandise that had been tailor-made for various situations and clients. Going ahead, the Firm will take energetic actions to develop on-line unique life insurance coverage enterprise, with a view to offering clients with extra handy on-line insurance coverage companies.

Built-in Monetary Sector

Being customer-centric, the Firm totally leveraged the useful resource benefits of the guy members of China Life Insurance coverage (Group) Firm and actively engaged within the building of a “Life Insurance coverage plus” built-in monetary ecosystem, turning the built-in monetary benefits right into a driving pressure for the high-quality growth of the Firm. Within the first half of 2022, premiums of China Life Property and Casualty Insurance coverage Firm Restricted (“CLP&C”) cross-sold by the Firm had been RMB11,058 million, with the variety of insurance coverage insurance policies rising by 18.8% 12 months on 12 months. Via the cross-sale of property insurance coverage merchandise, the Firm diversified its consumer base and facilitated its gross sales workforce to satisfy gross sales targets, preserve its dimension and safe a better fee earnings. Extra first-year receipts of enterprise annuity funds and pension merchandise of China Life Pension Firm Restricted cross-sold by the Firm by way of collaboration had been RMB11,078 million. The Firm entrusted China Guangfa Financial institution Co., Restricted (“CGB”) to promote its bancassurance merchandise, with the first-year common premiums recording a comparatively steady development. In the meantime, in an effort to fulfill the varied wants of its clients, the Firm labored with CGB and CLP&C to hold out varied operation actions to supply clients with a collection of high quality monetary and insurance coverage service options.

By integrating on-line and offline in addition to inside and exterior healthcare assets, the Firm improved its well being administration and repair capabilities and actively participated in Wholesome China initiative. China Life Inclusive Healthcare Service Platform continued to diversify its companies whereas upgrading its system features. As on the finish of the Reporting Interval, greater than 100 varieties of companies had been obtainable on the platform, and the collected registered customers of the platform rose by over 13% from the tip of 2021, remaining the management of the trade. The Firm carried out the nationwide technique of proactively responding to inhabitants ageing, continued to determine the China Life aged care system, totally leveraged the benefit of the long run of insurance coverage funds, and deployed in the direction of multi-level aged care companies resembling residential aged care companies and community-based aged care companies by way of the China Life Built-in Aged Care Fund. Within the first half of 2022, the China Life Built-in Aged Care Fund accelerated the consolidation of well being assets and continued to proceed with pension and retirement tasks in strategic areas resembling Beijing–Tianjin–Hebei, the Yangtze River Financial Belt, and the Guangdong-Hong Kong-Macao Higher Bay Space.

Insurance coverage Merchandise

Taking part in an necessary function in serving nationwide methods of Wholesome China initiative and proactively responding to inhabitants ageing, the Firm adhered to the customer-centric product growth idea, vigorously enhanced its functionality in product innovation, and persistently improved its diversified product provide system. Within the first half of 2022, for the aim of serving the technique of Wholesome China initiative, the Firm strengthened innovation in safety liabilities with respect to illnesses, medical well being and care, and launched a number of collection of crucial sickness insurance coverage merchandise and medical insurance coverage merchandise, to supply higher well being safety for purchasers with diversified calls for. It launched unique accident safety merchandise for versatile staff and new city residents to extend the accessibility and comfort of insurance coverage companies to versatile employment teams. The Firm additionally took energetic actions to serve the nationwide technique of proactively responding to inhabitants ageing, diversified the collection of insurance coverage merchandise for the seniors, and took an initiative to launch the insurance coverage merchandise tailor-made to the seniors. It actively engaged within the growth of the third-pillar pension insurance coverage and initiated nationwide promotion of the unique pension merchandise.

Within the first half of 2022, the Firm newly developed and upgraded a complete of 42 merchandise, together with two life insurance coverage merchandise, ten medical insurance merchandise, 29 accident insurance coverage merchandise, and one annuity insurance coverage product. Out of those merchandise, 39 had been protection-oriented insurance coverage merchandise, and three had been long-term financial savings insurance coverage merchandise.

Funding Enterprise

Within the first half of 2022, home bond yields had been at historic lows and the rate of interest pivot fell remarkably from 2021, which created a mounting strain on the allocation of fixed-income property. Because of the results of assorted elements such because the Russia–Ukraine battle, accelerated tightening of financial coverage by the Federal Reserve and the prevalence of the pandemic in China, the A-share market plummeted quickly and such lower was subsequently narrowed after the easing of the pandemic and the gradual rollout of home insurance policies for stabilization of development. The dramatic change of market state of affairs posed higher challenges to funding administration. On this circumstance, the Firm adhered to its strategic consistency, firmly served the foremost nationwide methods and supported actual economic system, and persistently carried out its medium- to long-term strategic plan of asset allocation. It seized alternatives for making allocations, and adopted a number of measures concurrently to stabilize funding earnings. Firstly, the Firm continued to optimize its allocation to core funding property and flexibly adjusted allocation and the kind of fixed-income property in response to the fluctuations in rates of interest and the availability of property, with a view to stabilizing coupon earnings and asset durations. Secondly, the Firm seized the long-term allocation alternatives throughout the fairness market corrections and invested prudently, adjusting fairness positions in the direction of impartial weight. Thirdly, the Firm strengthened the innovation in various funding fashions for the institution and optimization of pyramid-shaped various funding portfolios with non-standard debt-type merchandise as the inspiration, supplemented by fairness funding plans and fairness funding funds, with an purpose to stabilize the long-term anticipated returns of funding portfolios.

As on the finish of the Reporting Interval, the Firm’s funding property reached RMB4,977,082 million, a rise of 5.5% from the tip of 2021. Among the many main varieties of investments, the share of funding in bonds modified to 47.02% from 48.20% as on the finish of 2021, the share of time period deposits modified to 10.26% from 11.23% as on the finish of 2021, the share of funding in debt-type monetary merchandise modified to eight.89% from 9.41% as on the finish of 2021, and the share of funding in shares and funds (excluding cash market funds) elevated to 11.17% from 8.75% as on the finish of 2021.

Within the first half of 2022, the Firm’s web funding earnings was RMB97,009 million, rising by 8.1% 12 months on 12 months, a rise of RMB7,245 million from the corresponding interval of 2021. Affected by the decline in rate of interest, the Firm recorded the web funding yield of 4.15% within the first half of 2022, down by 18 foundation factors from the corresponding interval of 2021. Because of the results of volatilities in fairness market and a year-on-year lower in unfold earnings from fairness funding merchandise, the gross funding earnings of the Firm had been RMB98,542 million within the first half of 2022, down by 16.2% 12 months on 12 months, a lower of RMB19,096 million from the corresponding interval of 2021. Gross funding yield was 4.21%, down by 148 foundation factors from the corresponding interval of 2021. The great funding yield taking into consideration the present web honest worth modifications of available-for-sale securities acknowledged in different complete earnings was 3.75%, down by 186 foundation factors from the corresponding interval of 2021.

Outlook

The life insurance coverage trade is an indispensable and necessary pillar of the fashionable monetary system and multi-tiered social safety system. As a pacesetter within the trade, China Life will concentrate on serving the general pursuits of nationwide growth and preserve strategic consistency to push ahead the implementation of the “14th 5-Yr Plan”. By sticking to the unique function of insurance coverage and advancing reforms and innovation with steadfast efforts, we’ll take digital transformation as an necessary driving pressure and additional leverage some great benefits of synergy results of built-in finance, in order to steer the trade in pursuing the high-quality growth.

About China Life Insurance coverage Firm Restricted

China Life Insurance coverage Firm Restricted is a life insurance coverage firm established in Beijing, China on 30 June 2003 in keeping with the “Firm Regulation of the Individuals’s Republic of China” and the “Insurance coverage Regulation of the Individuals’s Republic of China“. The Firm was efficiently listed on the New York Inventory Alternate^[1], the Hong Kong Inventory Alternate and the Shanghai Inventory Alternate on 17 and 18 December 2003, and 9 January 2007, respectively. The Firm’s registered capital is RMB28,264,705,000.

The Firm is a number one life insurance coverage firm in China and possesses an in depth distribution community comprising unique brokers, direct gross sales representatives, and devoted and non-dedicated businesses. The Firm is without doubt one of the largest institutional buyers in China, and turns into one of many largest insurance coverage asset administration firms in China by way of its controlling shareholding in China Life Asset Administration Firm Restricted. The Firm additionally has controlling shareholding in China Life Pension Firm Restricted.

Our services and products embody particular person life insurance coverage, group life insurance coverage, and accident and medical insurance. The Firm is a number one supplier of particular person and group life insurance coverage, annuity merchandise and accident and medical insurance in China. As at 30 June 2022, the Firm had roughly 317 million long-term particular person and group life insurance coverage insurance policies, annuity contracts, and long-term medical insurance insurance policies in pressure. We additionally present each particular person and group accident and short-term medical insurance insurance policies and companies.

Ahead-looking statements

Sure statements contained on this press launch could also be seen as “forward-looking statements” as outlined by Part 27A of the U.S. Securities Act of 1933 and Part 21E of the U.S. Securities Alternate Act of 1934, as amended. Such forward-looking statements contain identified and unknown dangers, uncertainties and different elements, which can imply that the precise efficiency, monetary situation or outcomes of operations of the Firm might be materially completely different from any future efficiency, monetary situation or outcomes of operations implied by such forward-looking statements. Additional info concerning these dangers, uncertainties and different elements is included within the Firm’s Annual Report on Kind 20-F for the fiscal 12 months ended 31 December 2021 filed with the U.S. Securities and Alternate Fee, or SEC, on 29 April 2022; and within the Firm’s different filings with the SEC. You shouldn’t place undue reliance on these forward-looking statements. Until in any other case said, all info supplied on this press launch is as of the date of this press launch, and the Firm undertakes no responsibility to replace such info, besides as required beneath relevant regulation.

Until in any other case indicated, the Chinese language insurance coverage market info set forth on this press launch is predicated on public info launched by China Banking and Insurance coverage Regulatory Fee.

For additional info, please contact:

Media enquiries
Ms. Yinghui Li
China Life Insurance coverage Firm Restricted 
Tel: +86 10 6363 1191
E-mail: liyh@e-chinalife.com

Mr. Isaac Yau (Hong Kong)
Citigate Dewe Rogerson
Cell: +852 6337 1723
Tel: +852 3103 0112 
E-mail: isaac.yau@citigatedewerogerson.com

Mr. Benny Liu (Beijing)
Citigate Dewe Rogerson
Cell: +86 135 2188 9320
Tel: +86 10 6567 5056
E-mail: benny.liu@citigatedewerogerson.com

Investor and analyst enquiries
Ms. Grace Hou
China Life Insurance coverage Firm Restricted
Cell: +86 138 1009 6827
Tel: +86 10 6363 1241
E-mail: houjue@e-chinalife.com

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SOURCE China Life