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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, China.

Financial Highlights

Dec 2018 HKDUSD
Revenue653,902M83,431.98M
Gross Profit----
Operating income26,139M3,335.10M
Income before tax6,176M788.00M
Net income11,395M1,453.89M
EBITDA----
Diluted EPS0.400.05
Dividends Per Share0.180.02
Total Assets3,258.94B416,246.82M
Total liabilities2,935.65B374,954.76M
Total equity318,371M40,663.78M
Operating cash flow269,407M34,373.90M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 431,922M 492,501M 547,875M 639,929M 653,902M
Gross Profit -- -- -- -- --
Operating income 42,332M 50,966M 27,613M 48,312M 26,139M
Income before tax 36,491M 43,957M 17,987M 34,528M 6,176M
Net income 32,211M 34,699M 19,127M 32,253M 11,395M
EBITDA -- -- -- -- --
Diluted EPS 1.13 1.22 0.67 1.14 0.40
Dividends Per Share 0.50 0.49 0.27 0.48 0.18
Total Assets 2,251.78B 2,459.06B 2,701.46B 2,901.01B 3,258.94B
Total liabilities 1,964.45B 2,132.84B 2,393.81B 2,575.70B 2,935.65B
Total equity 284,121M 322,492M 303,621M 320,933M 318,371M
Operating cash flow 156,790M 67,234M 183,488M 322,345M 269,407M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 55,698.22M 63,527.42M 70,580.09M 82,117.80M 83,431.98M
Gross Profit -- -- -- -- --
Operating income 5,458.89M 6,574.07M 3,557.24M 6,199.55M 3,335.10M
Income before tax 4,705.67M 5,669.98M 2,317.17M 4,430.74M 788.00M
Net income 4,153.74M 4,475.80M 2,464.03M 4,138.81M 1,453.89M
EBITDA -- -- -- -- --
Diluted EPS 0.14 0.15 0.08 0.14 0.05
Dividends Per Share 0.06 0.06 0.03 0.06 0.02
Total Assets 290,370.68M 317,292.15M 348,434.75M 371,102.29M 416,246.82M
Total liabilities 253,318.90M 275,200.84M 308,754.37M 329,488.17M 374,954.76M
Total equity 36,637.84M 41,611.06M 39,160.98M 41,054.19M 40,663.78M
Operating cash flow 20,218.75M 8,672.47M 23,637.87M 41,364.37M 34,373.90M

Valuation Measures

Dec 2018
PER--
ROA0.36%
ROE3.56%
Operating margin3.99%
Profit margin1.74%

Key executives

  • President, CEO & Executive Director: Heng Xuan Su
  • Chief Financial Officer: Peng Zhao
  • Chief Technology Officer & Vice President: Ruan Qi
  • Compliance Officer & General Manager-Legal: Chongmiao Xu
  • Director, Board Secretary, Chief Actuary & VP: Ming Guang Li

Shareholders

  • The Vanguard Group, Inc. (3.5%)
  • BlackRock Fund Advisors (2.6%)
  • FIL Investment Management (Hong Kong) Ltd. (2.4%)
  • Templeton Global Advisors Ltd. (2.0%)
  • Norges Bank Investment Management (1.3%)
  • Fidelity Management & Research Co. (1.3%)
  • Comgest SA (1.2%)
  • Hang Seng Investment Management Ltd. (1.1%)
  • State Street Global Advisors Asia Ltd. (0.9%)
  • JPMorgan Asset Management (Asia Pacific) Ltd. (0.8%)

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 14 Oct, 2019

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