This article first appeared on GuruFocus .
Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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China Life Insurance Co Ltd ( CILJF ) reported a year-on-year increase of 1.1% in gross return premium, with long-term new policies premiums rising by 29.9%.
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The company achieved a significant growth of 75.5% in the value of new business for the third quarter compared to the same period last year.
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The sales force expanded to 644,000 agents, maintaining the largest scale in the industry, with improvements in both scale and quality.
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Gross investment income reached RMB35.54 billion, with a gross investment yield of 2.1%, indicating effective investment strategies.
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The solvency ratio remains strong at 156.87%, supporting the company's financial stability and growth potential.
Negative Points
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The company faces challenges from market volatility, particularly due to geopolitical tensions and fluctuating interest rates.
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Despite growth, the net profit attributable to equity holders was impacted by taxation issues, resulting in a negative RMB600 million in tax-related losses.
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The insurance service performance showed volatility, with concerns about the impact of interest rate fluctuations on service fees and revenue.
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The company is under pressure to manage liability costs effectively to maintain profitability amidst a low-interest environment.
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There is uncertainty regarding the impact of market volatility on equity investments, which could affect long-term returns.
Q & A Highlights
Q: What contributed to the increase in the value ratio of new policies despite a declining trend in the industry? A: Ms. Ho, Assistant President and Chief Actuary, explained that the growth in new business value, which increased by 75.5%, was due to cost control, business development, and optimization. The profitability was driven by improvements in business structure, particularly in the individual insurance channels, and a focus on reducing liability costs.
Q: How does China Life view the macroeconomic environment and its impact on investment strategy? A: Mr. Wei, President, noted that despite geopolitical tensions and market volatility, China's GDP growth of 5% in the third quarter indicates a strong economic start. The company expects stability in the macroeconomic environment, with a positive outlook for the bond and stock markets. China Life plans to maintain a stable investment strategy, focusing on long-term bonds and high-dividend stocks.
Q: What is the outlook for the individual insurance business and the strategy for the agent channel? A: Mr. Lun, Vice President, stated that the individual insurance business is expected to grow due to low interest rates and an aging population seeking safe investments. The company plans to enhance its wealth management capabilities and improve the professionalism and synergy of its agent channel.
Q: How does China Life plan to manage the volatility in equity investments and its impact on returns? A: Ms. Shao, Vice President, explained that the company focuses on long-term investments, balancing high-dividend stocks with growth stocks. Despite market volatility, China Life aims to maintain a diversified portfolio to ensure resilience and sustainable returns.
Q: What are the company's plans for leveraging AI in the insurance business? A: The company is committed to investing in AI and other technologies to enhance productivity and efficiency. With a strong technology team, China Life aims to integrate AI into its life and health insurance operations to improve service delivery and customer experience.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
