China Life Insurance ranked first in the industry in terms of total premiums, team size and embedded value in the first half of the year
Recently, China Life Insurance Company Limited (hereinafter referred to as “China Life”, 601628.SH, 2628.HK) released its 2024 semi-annual report (hereinafter referred to as the “Report”) and held an earnings conference in Beijing.
In the first half of 2024, my country’s economic operation was generally stable and progressed, and the life insurance industry continued to recover. China Life fully implemented the spirit of the 20th CPC National Congress, the Central Financial Work Conference and the Central Economic Work Conference, insisted on seeking progress while maintaining stability, promoted stability through progress, implemented the business ideas of “three persistences” (strengthening party building, promoting reform, and preventing risks), “three improvements” (stabilizing development, increasing value, and focusing on the team), and “three breakthroughs” (improving services, promoting integration, and reducing costs), deepened reform and innovation, continued to lead in scale value, and achieved new results in high-quality development.
The comprehensive strength continues to increase, and a new leap forward has been achieved on a high platform. As of June 30, 2024, China Life’s total assets and investment assets have both exceeded 6 trillion yuan, reaching 6.22 trillion yuan and 6.09 trillion yuan respectively; the embedded value exceeds 1.4 trillion yuan, ranking first in the industry. In the first half of 2024, the company’s total premiums reached 489.566 billion yuan, up 4.1% year-on-year, setting a new historical high based on the high base of the same period last year, and its market leading position has been consolidated. The comprehensive solvency adequacy ratio reached 205.23%, and the core solvency adequacy ratio reached 151.90%, maintaining a high and stable level, far higher than regulatory requirements. The sales team size remains stable, and the team quality continues to improve. As of June 30, 2024, the total sales force is 685,000.
In order to allow investors to share the fruits of high-quality development, the Board of Directors of China Life Insurance recommends a 2024 interim cash dividend of RMB 2.0 per 10 shares (tax included), which will be submitted to the shareholders’ meeting for deliberation.
Focusing on long-term value guidance, high-quality development has reached a new level. In the first half of 2024, the company’s first-year premium was 97.294 billion yuan, which remained stable year-on-year on the basis of the high base of the previous year. Among them, the first-year premium for ten years or more was 42.616 billion yuan, an increase of 9.4% year-on-year, achieving rapid growth, and the proportion of first-year premium increased by 3.81 percentage points year-on-year. The 14-month policy continuation rate reached 91.5%, an increase of 2.30 percentage points year-on-year. The sales team has achieved remarkable results in improving quality and efficiency, and the scale of high-performing human resources and the per capita production capacity of the team have both been improved. The value of new business achieved rapid growth in the first half of the year, an increase of 18.6% year-on-year compared with the restated results in the same period of 2023, reaching 32.262 billion yuan, continuing to lead the industry.
Efforts are made to stabilize the overall level of returns. The company incorporates the concept of asset-liability management into all aspects of business management, actively balances long-term value and short-term benefits, and continuously strengthens cost control and underwriting management. In the first half of 2024, China Life achieved a net investment income of 92.413 billion yuan, an increase of 1.828 billion yuan year-on-year in the same period of 2023; the net investment rate of return was 3.03%. The total investment income was 122.366 billion yuan, an increase of 30.994 billion yuan year-on-year in the same period of 2023; the total investment rate of return was 3.59%, an increase of 26 basis points year-on-year in the same period of 2023. The net profit attributable to shareholders of the parent company was 38.278 billion yuan, a year-on-year increase of 10.6%.
Operational results achieved a high breakthrough. China Life adheres to high-quality development as the main line, focuses on value enhancement, continues to deepen reforms in key areas, and continuously enhances development vitality. The report shows that in the first half of 2024, the company achieved a total premium of 404.645 billion yuan for life insurance business, a year-on-year increase of 4.1%; the total premium of health insurance business was 77.423 billion yuan, a year-on-year increase of 6.0%; the total premium of accident insurance business was 7.498 billion yuan.
2024 is the 75th anniversary of the founding of the People’s Republic of China, a key year for the implementation of the “14th Five-Year Plan”, and the 75th anniversary of the establishment of China Life. China Life said that it will adhere to the people-centered approach, actively play the role of economic “shock absorber” and social “stabilizer”, seek progress while maintaining stability, promote stability through progress, establish first and then break, fully integrate into the overall national development, serve the real economy, continue to deepen reforms, prevent financial risks, and promote high-quality development while helping to build a financial power.
