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Finance

China Life Insurance Co. Ltd.

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, C hina.

Financial Highlights

Dec 2019 HKDUSD
Revenue812,575.88M103,708.40M
Gross Profit----
Operating income81,673.73M10,423.95M
Income before tax57,416.99M7,328.08M
Net income66,092.58M8,435.34M
EBITDA----
Diluted EPS2.330.29
Dividends Per Share0.790.10
Total Assets4,177.72B536,169.66M
Total liabilities3,719.83B477,404.28M
Total equity451,648.55M57,964.59M
Operating cash flow481,886.15M61,502.74M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 607,490.46M 640,147.29M 737,893.74M 774,516.76M 812,575.88M
Gross Profit -- -- -- -- --
Operating income 62,865.57M 32,263.54M 55,707.93M 30,960.44M 81,673.73M
Income before tax 54,220.10M 21,016.34M 39,813.78M 7,315.18M 57,416.99M
Net income 42,800.54M 22,348.34M 37,190.51M 13,496.85M 66,092.58M
EBITDA -- -- -- -- --
Diluted EPS 1.51 0.79 1.31 0.47 2.33
Dividends Per Share 0.49 0.27 0.48 0.18 0.79
Total Assets 2,934.90B 3,013.86B 3,482.51B 3,716.35B 4,177.72B
Total liabilities 2,545.56B 2,670.64B 3,091.99B 3,347.69B 3,719.83B
Total equity 384,896.10M 338,732.16M 385,262.52M 363,056.64M 451,648.55M
Operating cash flow 82,931.83M 214,390.77M 371,691.79M 319,100.16M 481,886.15M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 78,359.84M 82,467.09M 94,688.96M 98,821.34M 103,708.40M
Gross Profit -- -- -- -- --
Operating income 8,108.99M 4,156.35M 7,148.62M 3,950.27M 10,423.95M
Income before tax 6,993.82M 2,707.43M 5,109.03M 933.35M 7,328.08M
Net income 5,520.81M 2,879.02M 4,772.40M 1,722.07M 8,435.34M
EBITDA -- -- -- -- --
Diluted EPS 0.19 0.10 0.16 0.06 0.29
Dividends Per Share 0.06 0.03 0.06 0.02 0.10
Total Assets 378,690.06M 388,728.24M 445,488.01M 474,670.04M 536,169.66M
Total liabilities 328,453.83M 344,459.16M 395,532.54M 427,582.34M 477,404.28M
Total equity 49,663.04M 43,689.61M 49,283.32M 46,371.23M 57,964.59M
Operating cash flow 10,697.33M 27,618.93M 47,696.71M 40,714.29M 61,502.74M

Valuation Measures

Dec 2019
PER8.27
ROA1.67%
ROE16.22%
Operating margin10.05%
Profit margin8.13%

Key executives

  • President, CEO & Executive Director: Heng Xuan Su
  • Vice President-Finance: Xiumei Huang
  • Compliance Officer & General Manager-Legal: Chongmiao Xu
  • Secretary, Executive Director, Chief Actuary & VP: Ming Guang Li
  • Vice President: Hong Yang

Shareholders

  • Brown Brothers Harriman & Co. (Investment Management) (4.8%)
  • The Vanguard Group, Inc. (3.6%)
  • BlackRock Fund Advisors (2.2%)
  • Fidelity Management & Research Co. LLC (2.1%)
  • FIL Investment Management (Hong Kong) Ltd. (2.0%)
  • Norges Bank Investment Management (1.4%)
  • Comgest SA (1.2%)
  • State Street Global Advisors Asia Ltd. (1.0%)
  • Hang Seng Investment Management Ltd. (1.0%)
  • BlackRock Investment Management (UK) Ltd. (1.0%)

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 Co., Ltd. (Hebei Branch)
  • China Life Private Equity Investment Co. Ltd.
  • China Life Insurance Fund Management Co., Ltd.
  • China Life Insurance Asset Management Co., Ltd.
  • China Life Pension Co., Ltd.
  • China Life Insurance Co. Ltd. (Chengdu Branch)
  • China Life Group
  • China Life Insurance Co. Ltd. (HK Branch)

Competitors

  • Ping An Insurance (Group) Company of China, Ltd. Class H
  • China Pacific Insurance (Group) Co., Ltd. Class H
Last Updated on 3 Jul, 2020

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