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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
Revenue774,516.76M98,821.34M
Gross Profit----
Operating income30,960.44M3,950.27M
Income before tax7,315.18M933.35M
Net income13,496.85M1,722.07M
EBITDA----
Diluted EPS0.470.06
Dividends Per Share0.180.02
Total Assets3,716.35B474,670.04M
Total liabilities3,347.69B427,582.34M
Total equity363,056.64M46,371.23M
Operating cash flow319,100.16M40,714.29M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 543,586.57M 607,490.46M 640,147.29M 737,893.74M 774,516.76M
Gross Profit -- -- -- -- --
Operating income 53,276.07M 62,865.57M 32,263.54M 55,707.93M 30,960.44M
Income before tax 45,924.99M 54,220.10M 21,016.34M 39,813.78M 7,315.18M
Net income 40,538.49M 42,800.54M 22,348.34M 37,190.51M 13,496.85M
EBITDA -- -- -- -- --
Diluted EPS 1.43 1.51 0.79 1.31 0.47
Dividends Per Share 0.50 0.49 0.27 0.48 0.18
Total Assets 2,814.67B 2,934.90B 3,013.86B 3,482.51B 3,716.35B
Total liabilities 2,455.51B 2,545.56B 2,670.64B 3,091.99B 3,347.69B
Total equity 355,144.38M 384,896.10M 338,732.16M 385,262.52M 363,056.64M
Operating cash flow 197,324.83M 82,931.83M 214,390.77M 371,691.79M 319,100.16M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 70,097.85M 78,359.84M 82,467.09M 94,688.96M 98,821.34M
Gross Profit -- -- -- -- --
Operating income 6,870.18M 8,108.99M 4,156.35M 7,148.62M 3,950.27M
Income before tax 5,922.22M 6,993.82M 2,707.43M 5,109.03M 933.35M
Net income 5,227.61M 5,520.81M 2,879.02M 4,772.40M 1,722.07M
EBITDA -- -- -- -- --
Diluted EPS 0.18 0.19 0.10 0.16 0.06
Dividends Per Share 0.06 0.06 0.03 0.06 0.02
Total Assets 362,956.33M 378,690.06M 388,728.24M 445,488.01M 474,670.04M
Total liabilities 316,642.50M 328,453.83M 344,459.16M 395,532.54M 427,582.34M
Total equity 45,796.42M 49,663.04M 43,689.61M 49,283.32M 46,371.23M
Operating cash flow 25,445.89M 10,697.33M 27,618.93M 47,696.71M 40,714.29M

Valuation Measures

Dec 2018
PER30.55
ROA0.37%
ROE3.60%
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
  • Secretary, Executive Director, 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%)
  • Fidelity Management & Research Co. (1.5%)
  • Norges Bank Investment Management (1.3%)
  • Comgest SA (1.2%)
  • Hang Seng Investment Management Ltd. (1.0%)
  • 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 13 Dec, 2019

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