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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 2021 HKDUSD
Revenue1,015.64B130,665.40M
Gross Profit----
Operating income101,181.07M13,017.26M
Income before tax48,409.70M6,228.06M
Net income61,370.54M7,895.51M
EBITDA----
Diluted EPS1.800.23
Dividends Per Share0.760.09
Total Assets6,002.18B769,875.83M
Total liabilities5,406.87B693,517.56M
Total equity585,436.58M75,091.59M
Operating cash flow545,649.61M70,199.54M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 737,893.74M 774,516.76M 812,575.88M 893,086.76M 1,015.64B
Gross Profit -- -- -- -- --
Operating income 55,707.93M 30,960.44M 81,673.73M 83,665.71M 101,181.07M
Income before tax 39,813.78M 7,315.18M 57,416.99M 51,847.21M 48,409.70M
Net income 37,190.51M 13,496.85M 66,092.58M 56,473.45M 61,370.54M
EBITDA -- -- -- -- --
Diluted EPS 1.12 0.38 2.05 1.99 1.80
Dividends Per Share 0.48 0.18 0.79 0.76 0.76
Total Assets 3,482.51B 3,716.35B 4,177.72B 5,054.92B 6,002.18B
Total liabilities 3,091.99B 3,347.69B 3,719.83B 4,513.16B 5,406.87B
Total equity 385,262.52M 363,056.64M 451,648.55M 533,604.50M 585,436.58M
Operating cash flow 371,691.79M 319,100.16M 481,886.15M 513,166.04M 545,649.61M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 94,688.96M 98,821.34M 103,708.40M 115,147.92M 130,665.40M
Gross Profit -- -- -- -- --
Operating income 7,148.62M 3,950.27M 10,423.95M 10,787.23M 13,017.26M
Income before tax 5,109.03M 933.35M 7,328.08M 6,684.79M 6,228.06M
Net income 4,772.40M 1,722.07M 8,435.34M 7,281.26M 7,895.51M
EBITDA -- -- -- -- --
Diluted EPS 0.14 0.04 0.26 0.25 0.23
Dividends Per Share 0.06 0.02 0.10 0.09 0.09
Total Assets 445,488.01M 474,670.04M 536,169.66M 651,924.85M 769,875.83M
Total liabilities 395,532.54M 427,582.34M 477,404.28M 582,054.66M 693,517.56M
Total equity 49,283.32M 46,371.23M 57,964.59M 68,818.00M 75,091.59M
Operating cash flow 47,696.71M 40,714.29M 61,502.74M 66,163.79M 70,199.54M

Valuation Measures

Dec 2021
PER5.86
ROA1.11%
ROE10.96%
Operating margin9.96%
Profit margin6.04%

Key executives

  • President: Peng Zhao
  • Chief Financial Officer, Executive Director & VP: Xiumei Huang
  • Compliance Officer & General Manager-Legal: Chongmiao Xu
  • Co-Secretary, Executive Director & Vice President: Ming Guang Li
  • Vice President: Ruan Qi

Shareholders

  • The Vanguard Group, Inc. (3.0%)
  • BlackRock Fund Advisors (2.5%)
  • Norges Bank Investment Management (1.4%)
  • FIL Investment Management (Hong Kong) Ltd. (1.2%)
  • State Street Global Advisors Asia Ltd. (0.9%)
  • Fidelity Management & Research Co. LLC (0.7%)
  • BlackRock Advisors (UK) Ltd. (0.7%)
  • Hang Seng Investment Management Ltd. (0.7%)
  • BlackRock Investment Management (UK) Ltd. (0.6%)
  • Geode Capital Management LLC (0.5%)

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

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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 17 Aug, 2022

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