ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
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 2020 HKDUSD
Revenue892,987.88M115,135.17M
Gross Profit----
Operating income83,609.52M10,779.98M
Income before tax51,860.69M6,686.53M
Net income56,485.81M7,282.85M
EBITDA----
Diluted EPS1.770.22
Dividends Per Share0.760.09
Total Assets5,054.86B651,916.28M
Total liabilities4,513.10B582,047.02M
Total equity533,598.57M68,817.24M
Operating cash flow513,171.65M66,164.51M
Currency in HKDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 640,147.29M 737,893.74M 774,516.76M 812,575.88M 892,987.88M
Gross Profit -- -- -- -- --
Operating income 32,263.54M 55,707.93M 30,960.44M 81,673.73M 83,609.52M
Income before tax 21,016.34M 39,813.78M 7,315.18M 57,416.99M 51,860.69M
Net income 22,348.34M 37,190.51M 13,496.85M 66,092.58M 56,485.81M
EBITDA -- -- -- -- --
Diluted EPS 0.66 1.12 0.38 2.05 1.77
Dividends Per Share 0.27 0.48 0.18 0.79 0.76
Total Assets 3,013.86B 3,482.51B 3,716.35B 4,177.72B 5,054.86B
Total liabilities 2,670.64B 3,091.99B 3,347.69B 3,719.83B 4,513.10B
Total equity 338,732.16M 385,262.52M 363,056.64M 451,648.55M 533,598.57M
Operating cash flow 214,390.77M 371,691.79M 319,100.16M 481,886.15M 513,171.65M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 82,467.09M 94,688.96M 98,821.34M 103,708.40M 115,135.17M
Gross Profit -- -- -- -- --
Operating income 4,156.35M 7,148.62M 3,950.27M 10,423.95M 10,779.98M
Income before tax 2,707.43M 5,109.03M 933.35M 7,328.08M 6,686.53M
Net income 2,879.02M 4,772.40M 1,722.07M 8,435.34M 7,282.85M
EBITDA -- -- -- -- --
Diluted EPS 0.08 0.14 0.04 0.26 0.22
Dividends Per Share 0.03 0.06 0.02 0.10 0.09
Total Assets 388,728.24M 445,488.01M 474,670.04M 536,169.66M 651,916.28M
Total liabilities 344,459.16M 395,532.54M 427,582.34M 477,404.28M 582,047.02M
Total equity 43,689.61M 49,283.32M 46,371.23M 57,964.59M 68,817.24M
Operating cash flow 27,618.93M 47,696.71M 40,714.29M 61,502.74M 66,164.51M

Valuation Measures

Dec 2020
PER8.14
ROA1.22%
ROE11.46%
Operating margin9.36%
Profit margin6.32%

Key executives

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

Shareholders

  • Brown Brothers Harriman & Co. (Investment Management) (4.8%)
  • The Vanguard Group, Inc. (3.1%)
  • BlackRock Fund Advisors (2.2%)
  • Norges Bank Investment Management (1.5%)
  • FIL Investment Management (Hong Kong) Ltd. (1.2%)
  • Fidelity Management & Research Co. LLC (0.9%)
  • State Street Global Advisors Asia Ltd. (0.7%)
  • JPMorgan Investment Management, Inc. (0.7%)
  • BlackRock Asset Management Ireland Ltd. (0.7%)
  • BlackRock Advisors (UK) Ltd. (0.6%)

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

  • Jiangsu China Life Jiequan Equity Investment Center LP
  • Jiangsu Guoshou Jiuquan Equity Investment Center LP
  • China Life Guangde (Tianjin) Equity Invt Fd Partnership LP
  • CBRE Global Investors U.S. Investments I LLC
  • Xi'an Shengyi Jingsheng Real Estate Co., Ltd.
  • Wuhu Yuanxiang Tianyi Investment Management Partnership LP
  • Wuhu Yuanxiang Tianfu Investment Management Partnership LP
  • Shanghai Wansheng Industry Partnership LP
  • Dalian Hope Building Co., Ltd.
  • Ningbo Meishan Bonded Port Area Bai Ning Invt Partnership LP
  • Shanghai Yuan Shu Yuan Pin Investment Mgmt Partnership LP
  • Shanghai Yuan Shu Yuan Jiu Investment Mgmt Partnership LP
  • New Fortune Wisdom Ltd.
  • New Capital Wisdom Ltd.
  • Guo Yang Guo Sheng Investment Partnership LP
  • China Life Franklin (Shenzhen) Equity Invt Fd Mgmt Co., Ltd.
  • China Life (Beijing) Health Management Co., Ltd.
  • China Century Core Fund Ltd.
  • Fortune Bamboo Ltd.
  • CL Hotel Investor LP
  • Glorious Fortune Forever Ltd.
  • New Aldgate Ltd.
  • Shanghai Rui Chong Investment Co., Ltd.
  • King Phoenix Tree Ltd.
  • Golden Phoenix Tree Ltd.
  • China Life (Suzhou) Pension & Retirement Investment Co., Ltd.
  • Sunny Bamboo Ltd.
  • Golden Bamboo Ltd.
  • China Life Wealth Management Co., Ltd.
  • China Life Insurance Co., Ltd. (Hebei Branch)

Competitors

  • New China Life Insurance Co., Ltd. Class H
  • China Pacific Insurance (Group) Co., Ltd. Class H
  • Ping An Insurance (Group) Company of China, Ltd. Class H
Last Updated on 3 Dec, 2021

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more