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Finance

China Life Insurance Co. Ltd.

  • 18.30 HKD
  • +0.02
  • +0.11%
  • China
    Aug 20, 2019
  • Ticker
    HKG(2628)
  • Prev. close
    18.28
  • Market cap (HKD)
    802,139.31M
  • Market cap (USD)
    102,278.53M
  • 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 2018 HKDUSD
Revenue761,443.94M97,153.37M
Gross Profit----
Operating income36,025.16M4,596.48M
Income before tax7,315.18M933.35M
Net income13,042.02M1,664.04M
EBITDA----
Diluted EPS0.460.05
Dividends Per Share0.180.02
Total Assets3,717.19B474,776.51M
Total liabilities3,348.42B427,676.29M
Total equity363,056.64M46,371.23M
Operating cash flow333,190.43M42,512.09M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 551,048.39M 611,269.84M 635,874.38M 731,669.38M 761,443.94M
Gross Profit -- -- -- -- --
Operating income 55,184.00M 61,706.10M 35,259.36M 57,287.66M 36,025.16M
Income before tax 45,924.99M 52,974.29M 21,016.34M 39,813.78M 7,315.18M
Net income 40,538.49M 42,572.35M 21,897.33M 36,752.33M 13,042.02M
EBITDA -- -- -- -- --
Diluted EPS 1.43 1.50 0.77 1.30 0.46
Dividends Per Share 0.50 0.49 0.27 0.48 0.18
Total Assets 2,814.69B 2,934.94B 3,014.00B 3,482.59B 3,717.19B
Total liabilities 2,455.54B 2,545.61B 2,670.78B 3,092.07B 3,348.42B
Total equity 355,144.38M 384,896.10M 338,732.16M 385,262.52M 363,056.64M
Operating cash flow 203,136.72M 88,446.73M 220,104.34M 378,230.95M 333,190.43M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 71,060.08M 78,847.34M 81,916.63M 93,890.23M 97,153.37M
Gross Profit -- -- -- -- --
Operating income 7,116.21M 7,959.43M 4,542.29M 7,351.34M 4,596.48M
Income before tax 5,922.22M 6,833.12M 2,707.43M 5,109.03M 933.35M
Net income 5,227.61M 5,491.38M 2,820.92M 4,716.18M 1,664.04M
EBITDA -- -- -- -- --
Diluted EPS 0.18 0.19 0.09 0.16 0.05
Dividends Per Share 0.06 0.06 0.03 0.06 0.02
Total Assets 362,959.55M 378,695.76M 388,745.94M 445,497.84M 474,776.51M
Total liabilities 316,645.72M 328,459.53M 344,476.86M 395,542.37M 427,676.29M
Total equity 45,796.42M 49,663.04M 43,689.61M 49,283.32M 46,371.23M
Operating cash flow 26,195.36M 11,408.69M 28,354.98M 48,535.84M 42,512.09M

Valuation Measures

Dec 2018
PER36.06
ROA0.36%
ROE3.48%
Operating margin4.73%
Profit margin1.71%

Key executives

  • President, CEO & Executive Director: Heng Xuan Su
  • Operating Director: Hong Yang
  • Chief Financial Officer: Peng Zhao
  • Chief Technology Officer & Vice President: Ruan Qi
  • Compliance Officer & General Manager-Legal: Chongmiao Xu

Shareholders

  • The Vanguard Group, Inc. (3.5%)
  • BlackRock Fund Advisors (2.8%)
  • FIL Investment Management (Hong Kong) Ltd. (2.3%)
  • Templeton Global Advisors Ltd. (2.2%)
  • Norges Bank Investment Management (1.3%)
  • Comgest SA (1.2%)
  • Fidelity Management & Research Co. (1.2%)
  • JPMorgan Asset Management (Asia Pacific) Ltd. (1.0%)
  • State Street Global Advisors Asia Ltd. (0.9%)
  • Schroder Investment Management (Hong Kong) Ltd. (0.9%)

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
  • Prudential plc
Last Updated on 20 Aug, 2019

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