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Finance

China Life Insurance Co. Ltd.

  • 18.60 HKD
  • +0.16
  • +0.87%
  • China
    Aug 17, 2018
  • Ticker
    HKG(2628)
  • Prev. close
    18.44
  • Market cap (HKD)
    650,311M
  • Market cap (USD)
    82,845.20M
  • Shares
    28,264.70M

Company Background

China Life Insurance is the largest insurance company in China. It was listed on the Hong Kong stock exchange in 2003 and on the Shanghai Stock Exchange in 2007. In 2014, the company commanded a domestic market share of 26% and ranked second in terms of market capitalization among life insurance companies in China. The Chinese government holds a 68% stake in the insurer.

The state-run insurance company enjoys a high degree of creditworthiness and broad name recognition. The company touts its vast nationwide sales network comprising 740,000 people selling individual insurance products, 19,000 for group insurance products, and 71,000 in charge of sales at bank counters, catering to a total of nearly 200 million customers. The Chinese insurance market has been expanding rapidly on the back of an increase in personal income, and the size of the market is expected to become even larger, reflecting the country's graying society.

China Life Insurance also handles non-life insurance products. Taking advantage of its position as a state-owned insurer, the company forged a tie-up with the Ministry of Public Security in July 2015 to offer accident insurance policies to 1.8 million public safety employees across the country. U.S. credit rating agency Moody's Investors Service has assigned an Aa3 rating to the life insurer, the same rating as the Chinese government.

Business Summary

China Life Insurance Co., Ltd. engages in the provision of life, annuity, accident, and health insurance. It operates through the following segments: Life Insurance Businesses, Health Insurance Businesses, Accident Insurance Businesses, and Other Businesses. The Life Insurance Businesses segment involves in the sale of life insurance policies, including those life insurance policies without significant insurance risk transferred. The Health Insurance Businesses segment offers health insurance policies, including those health insurance policies without significant insurance risk transferred. The Accident Insurance Businesses segment relates to the sale of accident insurance policies. The Other Businesses includes income and allocated cost of insurance agency businesses. The company was founded on November 23, 2003 and is headquartered in Beijing, China.

Financial Highlights

Dec 2017 HKDUSD
Revenue731,669.38M93,890.23M
Gross Profit----
Operating income57,287.66M7,351.34M
Income before tax39,813.78M5,109.03M
Net income36,752.33M4,716.18M
EBITDA----
Diluted EPS1.300.16
Dividends Per Share0.480.06
Total Assets3,482.59B445,497.84M
Total liabilities3,092.07B395,542.37M
Total equity385,262.52M49,283.32M
Operating cash flow378,230.95M48,535.84M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 530,999.13M 551,048.39M 611,269.84M 635,874.38M 731,669.38M
Gross Profit -- -- -- -- --
Operating income 42,961.50M 55,184.00M 61,706.10M 35,259.36M 57,287.66M
Income before tax 33,215.99M 45,924.99M 52,974.29M 21,016.34M 39,813.78M
Net income 31,246.45M 40,538.49M 42,572.35M 21,897.33M 36,752.33M
EBITDA -- -- -- -- --
Diluted EPS 1.11 1.43 1.50 0.77 1.30
Dividends Per Share 0.37 0.50 0.49 0.27 0.48
Total Assets 2,537.01B 2,814.69B 2,934.94B 3,014.00B 3,482.59B
Total liabilities 2,251.92B 2,455.54B 2,545.61B 2,670.78B 3,092.07B
Total equity 282,196.84M 355,144.38M 384,896.10M 338,732.16M 385,262.52M
Operating cash flow 181,460.30M 203,136.72M 88,446.73M 220,104.34M 378,230.95M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 68,457.34M 71,060.08M 78,847.34M 81,916.63M 93,890.23M
Gross Profit -- -- -- -- --
Operating income 5,538.67M 7,116.21M 7,959.43M 4,542.29M 7,351.34M
Income before tax 4,282.26M 5,922.22M 6,833.12M 2,707.43M 5,109.03M
Net income 4,028.34M 5,227.61M 5,491.38M 2,820.92M 4,716.18M
EBITDA -- -- -- -- --
Diluted EPS 0.14 0.18 0.19 0.09 0.16
Dividends Per Share 0.04 0.06 0.06 0.03 0.06
Total Assets 327,198.19M 362,959.55M 378,695.76M 388,745.94M 445,497.84M
Total liabilities 290,430.98M 316,645.72M 328,459.53M 344,476.86M 395,542.37M
Total equity 36,394.88M 45,796.42M 49,663.04M 43,689.61M 49,283.32M
Operating cash flow 23,394.18M 26,195.36M 11,408.69M 28,354.98M 48,535.84M

Valuation Measures

Dec 2017
PER18.84
ROA1.13%
ROE10.15%
Operating margin7.82%
Profit margin5.02%

Key executives

  • President & Executive Director: Dai Ren Lin
  • Operating Director: Hong Yang
  • Chief Technology Officer & Vice President: Ruan Qi
  • Board Secretary & Vice President: Ming Guang Li
  • Executive Director & Vice President: Heng Ping Xu

Shareholders

  • The Vanguard Group, Inc. (3.3%)
  • Comgest SA (2.8%)
  • BlackRock Fund Advisors (2.6%)
  • Templeton Global Advisors Ltd. (2.0%)
  • FIL Investment Management (Hong Kong) Ltd. (2.0%)
  • Hang Seng Investment Management Ltd. (1.6%)
  • State Street Global Advisors Asia Ltd. (1.0%)
  • Norges Bank Investment Management (1.0%)
  • APG Asset Management NV (0.7%)
  • JF Asset Management Ltd. (0.7%)

Contact Details

  • Website:http://www.e-chinalife.com
  • Address: 12F China Life Plaza A, No. 16, Financial Street, Beijing, 100033, China
  • Phone: +86.10.63633333

Related Companies

  • China Life Insurance Fund Management Co., Ltd.
  • China Life Insurance Asset Management Co., Ltd.
  • China Life Insurance Co. Ltd. (Chengdu Branch)
  • China Life Group
  • China Life Insurance Co. Ltd. (HK Branch)

Competitors

  • Prudential plc
  • Mercuries & Associates, Holding Ltd.
Last Updated on 17 Aug, 2018

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