China Life Insurance Company Limited Announces 2018 Interim Results (H Shares)
Highlights
- As at the end of the Reporting Period, the Company's total assets reached
RMB3,043,178 million , an increase of 5.0% from the end of 2017. The Company's embedded value wasRMB769,225 million , an increase of 4.8% from the end of 2017. - During the Reporting Period, the Company's total revenue was
RMB401,690 million , an increase of 1.4% year-on-year; the Company's gross written premiums wereRMB360,482 million , an increase of 4.2% year-on-year; the value of half year's sales for the six months ended30 June 2018 wasRMB28,166 million , a decrease of 23.7% year-on-year. The Company's market share in the first half of 2018 was approximately 22%, remaining the first place in the industry. - As at the end of the Reporting Period, the Company's investment assets reached
RMB2,709,971 million , an increase of 4.6% from the end of 2017. During the Reporting Period, the gross investment yield was 3.70%, the net investment yield was 4.64%, and the gross investment yield including net share of profit of associates and joint ventures was 3.78%. The comprehensive investment yield taking into account the current net fair value changes of available-for-sale securities recognized in other comprehensive income was 3.52%. - During the Reporting Period, net profit attributable to equity holders of the Company was
RMB16,423 million , an increase of 34.2% year-on-year. - The Company will not declare an interim dividend of ordinary shares for the Reporting Period.
Business Overview of the First Half of 2018
In the first half of 2018, the macro environment was complicated and volatile, with the market competition increasingly intensified and the transformation and upgrade of the industry deepened. Due to the combined effect of multiple factors, the life insurance industry developed under pressure. The Company, by firmly holding the fundamental requirements of high-quality development, with its strategic consistency and tactical flexibility, pushed forward the five major tasks of "transforming sales management model, adjusting business structure, revitalizing and taking lead in large- and medium-sized cities, building technology-driven
During the Reporting Period, the Company significantly reduced single premiums to further improve the structure of premium payments. The first-year regular business and renewal business became major driving forces which substantially reinforced the sustainable development of the Company. First-year regular premiums amounted to
During the Reporting Period, net profit attributable to equity holders of the Company was
During the Reporting Period, gross written premiums from the life insurance business of the Company amounted to
In the first half of 2018, under significant changes in the external situation, the Company maintained strategic consistency and tactical flexibility, actively adjusted business structure and sped up the development of first-year regular business and short-term insurance business. As a result, the business of the exclusive individual agent channel grew rapidly, the value contributed by bancassurance channel increased constantly, the development of group insurance channel became more diversified, and other business channels showed a sound development momentum.
Exclusive Individual Agent Channel. During the Reporting Period, with emphasis on business value, the exclusive individual agent channel made efforts on sales model transformation and upgrade, and strengthened the coordinated development among business, sales force and day-to-day management, so as to achieve continuous fast growth. During the Reporting Period, gross written premiums from the exclusive individual agent channel amounted to
Bancassurance Channel. In the first half of 2018, the bancassurance channel put more efforts in its business structural adjustment, vigoriously reduced single premiums, strengthened the development of regular premium business, constantly improved the quality of sales force, and the value contribution of the bancassurance channel increased consistently. During the Reporting Period, single premiums substantially reduced to
Group Insurance Channel. In the first half of 2018, the group insurance channel further pushed forward the diversified business development and strengthened structural optimization, which brought out the stable development of various businesses. During the Reporting Period, gross written premiums from the group insurance channel were
Other Business Channels. During the Reporting Period, gross written premiums from other channels were
Since 2018, the global economy has continued to recover and move in a positive direction but factors such as trade friction and geopolitics have caused greater volatility of the global market. The Chinese economy maintained a stable growth, with the structural deleveraging continuously promoted. The monetary policy remained prudent and moderate. The interest rate of the bond market fluctuated downward and the credit risk intensified; the stock market suffered a significant decline with greater volatility. In the first half of 2018, the Company seized the opportunity of interest rate hike and increased its allocation in fixed income assets with long duration to optimize the asset-liability matching. The Company maintained equity investment position in the open market at a reasonable level, selected high-quality debt-type financial products and strictly controlled credit risk. As at the end of the Reporting Period, the Company's investment assets reached
As at the end of the Reporting Period, among the major types of investments, the percentage of investment in bonds changed to 47.23% from 45.86% as at the end of 2017, the percentage of term deposits changed to 16.58% from 17.34% as at the end of 2017, the percentage of investment in stocks and funds (excluding money market funds) changed to 10.21% from 10.33% as at the end of 2017, and the percentage of investment in debt-type financial products increased to 11.71% from 11.65% as at the end of 2017.
The balances of the Company's fixed income investment and equity investment increased along with the continuous expansion of its investment assets. In the first half of 2018, the interest income from investment portfolios grew steadily. Due to the effect of a significant decline in the A Share market, the gross investment income decreased by 13.9% from the corresponding period of 2017. During the Reporting Period, the Company's net investment income was
Outlook
In the first half of 2018, despite severe external environment, the Company forged ahead to overcome obstacles and spared no efforts for further business development. As a result, our business developed in a sound and stable manner. For the next step, the Company will stick to the general keynote of making progress while maintaining stability, with strategic consistency and tactical flexibility, further focus on value, and make efforts to enhance business value and achieve better operating results, so as to facilitate the Company's progress in all aspects with high-quality development.
The Company shall adhere to the "due role of insurance in protection" to enhance our business capability in creating value. With new business value growth as guidance, the Company shall implement the strategy of diversified products, further accelerate the development of protection-oriented business, actively expand the "Integrated Age-care and Inclusive Healthcare Service" sector so as to satisfy the demands for health and aged-care services of general consumers.
The Company shall carry out the transformation of sales model in great depth to enhance our sales force capability in creating value. The Company shall put more efforts in the transformation of sales model, strengthen the construction of sales force, reinforce the day-to-day management, further enhance the integration between sales, education and training, and strive to improve the quality of sales force, with an aim to increase its productivity and income level.
The Company shall strengthen the management of assets and liabilities to enhance our investment capability in creating value. The Company shall strike a balance between the long-term strategic allocation and the short-term objective of investment income. Based on the characteristics of liabilities and with reference to risk preference, the Company shall take advantage of market cycles to optimize allocations, and strengthen the capability of investment in a bid to maintain the stability of investment income level in long run.
The Company shall implement a digital strategy in all aspects to enhance our technological capability in creating value. By capitalizing on our digital platform, the Company shall strive to create the "Internet +" ecological system that is fully integrated with external related industries to achieve a win-win situation, and fully optimize the digital system of customer services to provide a powerful platform, resources and support for sales representatives and offer a whole-length digital journey for customers with all channels and full value.
The Company shall constantly improve the construction of the internal control system to enhance our risk control capability in creating value. In order to adapt to the development of risk management and control under a new regulatory regime, the Company shall consistently carry out the construction of the internal control system in great depth, put more efforts in enhancing our risk control capability and standards, and integrate compliance requirements into the entire process of business management, so as to stand firm on our risk bottom line.
The Company is well positioned to embark on a journey filled up with opportunities. 2018 marks the beginning of the high-quality development of
About
The Company is a leading life insurance company in
Our products and services include individual life insurance, group life insurance, and accident and health insurance. The Company is a leading provider of individual and group life insurance, annuity products and accident and health insurance in
Forward-looking statements
Certain statements contained in this press release may be viewed as "forward-looking statements" within the meaning of Section 27A of the
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