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China Life: Looking back on the remarkable 20 years

China Life: Looking back on the remarkable 20 years


20 years ago, the life insurance company under China Life Group entered the international capital market and set a record for the world’s largest IPO that year.

  In 20 years, the premium income of China Life Insurance Company has increased from less than 150 billion yuan to 2022 yuan.Over 600 billion yuanembedded value growthOver one trillion yuanboth total assets and investment assetsBreaking through 5 trillion yuanAll have been achieved15 timesgrowth above. Over the past 20 years, the company has continued to deepen reforms and successively launched “Three reforms in labor and personnel distribution“”Deepen the reform of the business management system“”new generation“”Dingxin project“”Eight major projects” and a series of reforms, it took the lead in establishing a complete risk prevention and control system and a criss-crossing operation and management system, forming an integrated and diversified development layout, and exploring a high-quality development path with China Life characteristics.

2023 is the first year to comprehensively implement the spirit of the 20th National Congress of the Communist Party of China. It is also a critical year for advancing the 14th Five-Year Plan and connecting the past and the future. The Central Financial Work Conference held at the end of October 2023 pointed out that large state-owned financial institutions should be supported to become better and stronger, serve as the main force in serving the real economy and the ballast stone in maintaining financial stability, and use the insurance industry as an economic shock absorber and social stability. device function. As a central financial enterprise and a leading player in the industry, China Life shoulders the historical mission of continuing to become better and stronger.

Ninety thousand miles ahead, China Life has raised its ambitions and set sail on a new journey.

Reborn

Improve corporate governance

  Since China joined the WTO and opened up its insurance market, international giants have arrived one after another.To compete with mature international large companies and to enter the world stage, China Life, which is still a wholly state-owned traditional insurance company, must establish a strategy that matches its development goals.Modern Enterprise System.

  As early as 2000, China Life made a major decision on joint-stock reform and established the development direction of establishing a modern enterprise system. In 2002, it was proposed that “Achieve insurance premiums of 100 billion,Become one of the world’s top 500 companies“Goal. Becoming a public company through listing can not only help companies obtain more funds and resources, but also enhance their social reputation and brand value, and enhance their competitiveness and international influence.

On June 30, 2003, China Life Insurance Company was reorganized into China Life Insurance (Group) Company and exclusively initiated the establishment of China Life Insurance Company. After the restructuring, China Life Insurance Company initially established a standardized corporate governance structure in accordance with the modern enterprise system, forming “three committees and one layer”, and established special committees such as the Audit Committee, Remuneration Committee, Risk Management Committee and Strategy Committee under the Board of Directors. , initially achieving checks and balances among decision-making agencies, supervisory agencies and business managers. In the course of 20 years of development, the company has continuously adjusted and optimized the structure of the special committees of the board of directors, and the members of the board of directors have become increasingly diversified, and the decision-making ability of the board of directors has continued to improve.

  China Life Insurance Company was listed in New York on December 17, 2003 and in Hong Kong on December 18.Through restructuring and listing, the company’s actual solvency limit increased from 29.456 billion yuan to58.177 billion yuanthe minimum solvency increased from 2.8 times to5.575 timesthe capital strength has greatly increased, laying a solid foundation for subsequent development.

  Restructured and listedIt is a new starting point for China Life. The transformation from a wholly state-owned enterprise to an international public company is a huge change, especially the internal operation mechanism must be transformed and management strengthened. Gradually embarking on the track of an international public company, China Life’s corporate governance and operation management have become increasingly mature and standardized. It has established a good reputation for integrity, stability and strict internal control in the international and domestic capital markets. It has given full play to its localization advantages and learned from many overseas peers. Advanced experience, competitiveness has been qualitatively improved. At the end of November 2006, the total market capitalization of China Life Insurance CompanyOver 500 billion Hong Kong dollarsbecoming the world’s leading listed life insurance company by market capitalization at that time.

Three years after being listed overseas, China Life Insurance Company returned to A-shares. On January 9, 2007, the company was listed on the Shanghai Stock Exchange and issued 1.5 billion shares at a price of 18.88 yuan per share, becoming the first insurance company to be listed on A-shares. It is also the first insurance company to be listed in Hong Kong, Shanghai and New York (currently delisted from the New York Stock Exchange). After the A-share listing, the company’s total market value exceeded 400 billion yuan. Fourteen days after the listing of the A-shares (January 23, 2007), the company’s A-shares entered the SSE 180, SSE 50, CSI 300, CSI 100, CSI 800 and Xiaokang Index. Two months later (March 12, 2007), the company’s H shares were selected as a constituent stock of the Hang Seng Index, becoming the first mainland insurance Hang Seng Index constituent stock.

  Improve corporate governanceIt is the primary task for financial enterprises to deepen reforms and achieve high-quality development. As a listed financial and insurance company, China Life Insurance Company is committed to the construction of corporate governance, internal control mechanisms and compliance systems. It is the first batch of practitioners of the internal control standard system of Chinese enterprises. Since its listing, the company has benchmarked against the highest international and domestic internal control standards, and established a “Reasonable structure,Sound mechanism,Strict system,Efficient operation” governance system.

  The report of the 20th National Congress of the Communist Party of China and the Central Financial Work Conference both proposed that “The Party governs finance” principle requires financial institutions to adhere to a people-centered value orientation. As a financial central enterprise, China Life Insurance Company has always adhered to the organic integration of party leadership and corporate governance, and outstanding corporate governance.”Party building leads”, integrating the party’s leadership into all aspects of corporate governance, and building a corporate governance mechanism with China Life’s characteristics.

Reform and innovation

Fully deliver on promises

When it was listed overseas in 2003, China Life Insurance Company wrote down its company vision in its prospectus: to build a world-class life insurance company, achieve sustainable business growth and create long-term shareholder value. From the perspective of the promise made back then, 20 years later, the company has turned it into reality step by step. This is also a process in which the company continues to reform and forge resilience in the tortuous development of my country’s life insurance industry.

Over the past 20 years, my country’s insurance industry has experienced many ups and downs.

In 2003, the year China Life was listed, it was a prosperous and pioneering period for my country’s insurance industry, and the insurance industry began to enter a rapid development path. China Life Insurance Company is the leader in the life insurance market with its far-leading market share.

  In June 2006, the “Several Opinions of the State Council on the Reform and Development of the Insurance Industry” (i.e., the “National Ten Articles” on Insurance) was released, opening a window of policy dividends for the development of the insurance industry. This year, China Life proposed “Strong main business,Moderate diversity“Group development strategy. Driven by this strategy, China Life’s business scope gradually covers life insurance, property and casualty insurance, corporate and occupational annuities, banking, funds, asset management, wealth management, industrial investment, overseas business and other fields, achieving From single insurance toInsurance,bank,investThe implementation of the comprehensive financial layout of the three major business segments.

After the international financial crisis in 2008, my country’s insurance industry turned to structural adjustment to promote development and sought to form new competitive advantages during adjustment and transformation.

In February 2009, the former China Insurance Regulatory Commission further clarified the focus and direction of the business structure adjustment of the personal insurance industry, and guided the industry to vigorously develop risk protection and long-term savings businesses.

  In 2011, due to the impact of new bancassurance regulations, the premiums of the insurance industry shrank significantly. Since then, the life insurance industry has begun to seek transformation and breakthrough, from products and channels to “Customer-centric“”Return guarantee“Direction transformation.

In 2013, the market-oriented reform of life insurance rates was launched, and the upper limit of predetermined interest rates for ordinary life insurance, universal insurance, and participating insurance was gradually relaxed. The insurance industry bid farewell to the 2.5% predetermined interest rate that had been implemented since 1999.

In 2014, the new “Ten National Regulations” were released, and the insurance industry entered a new stage of development.

  In 2016, regulatory authorities successively issued a series of new regulations, emphasizing that “Insurance surname Bao“, returning to protection. Under the reform measures such as continuing to optimize the business structure and increasing team transformation, in the first half of this year, China Life Insurance Company’s individual insurance channel premium growth returned to double digits, leading the development of the industry.

  In 2017, the premium scale of China Life Insurance CompanyBreaking through 500 billion yuan,becomeThe first in ChinaA life insurance company with total premiums exceeding 500 billion yuan.

  Starting from 2018, the insurance industry has entered a new transformation period, and the traditional model is increasingly difficult to adapt to current development. In the period of industry adjustment and transformation, China Life is also seeking transformation, and proposes to realize the transformation from focusing on quantity to focusing on structure, from focusing on speed to focusing on quality, and from focusing on scale to focusing on efficiency, and has embarked on a “Quality First,Benefit first“The road to comprehensive business development.

  In 2019, China Life Insurance Company launched “Dingxin project“. Despite the COVID-19 epidemic that has lasted for three years, the company’s reforms have achieved remarkable results in the past three years, with many changes in business structure and operation management. In 2020, the premium scale reached 600 billion yuan, from 500 billion yuan to 6000 billion yuan. billion in only three years. The Dingxin Engineering reform project has also been recognized by the industry and was selected as an “Excellent Reform Case in the “China Financial Outlook Blue Book””.

  On this basis, China Life Insurance Company continues to “rush for the exam” and launches the “Eight major projects”, that is, guided by the “Party Building Leading Foundation Building Project”, supported by the “Talent Building Consolidation Project”, and supported by the “Sales Channel Strengthening Project”, “Comprehensive Marketing Concentration Project”, “Customer Management Jinshan Project” and “Government-Enterprise Cooperation Project”. “People’s Heart Project” and “Healthy Elderly Care Ecological Project” as the main body, based on the “Financial Technology Digital Project”. According to the deployment of the “Eight Major Projects”, in the next deepening of reform, the company will deeply implement basic reconstruction and difficult problem solving, and actively target New customer groups, new models, and new capabilities will comprehensively upgrade the company’s development momentum and accelerate quality, efficiency, and power changes.

Li Mingguang, vice president of China Life Group and president of the life insurance company, said at the 2023 Open Day event: “Learning from history, experience is precious and must be persevered. Enterprises always move forward in inheritance and development. We always believe that China Life can only continue to Only by developing and improving ourselves can we better fulfill our responsibilities to society and serve our customers.”

  Twenty years of exploration and reform have now yielded fruitful results.Data shows that in the 20 years since its overseas listing, the premium income of China Life Insurance Company has increased from less than 150 billion yuan in 2003 to 150 billion yuan by the end of 2022.615.19 billion yuanthe embedded value increased from 90 billion yuan to1.23 trillion yuantotal assets increased from 328.7 billion yuan to5.25 trillion yuanthe scale of investment assets increased from 279.2 billion yuan to5.06 trillion yuan. Through continuous transformation and reform, the company has achieved steady and sustained growth over the past 20 years.

Navigating the future

Touyan becomes better and stronger

  How to seize the historical opportunities of the new era, reflect the contemporary nature, accuracy and popularization in development, and give new connotations to excellence and strength are related to the development of China Life in the next 20 years. On the road to becoming a world-class life insurance company, China Life Insurance Company is also looking for new development momentum and strives to continuously deepen reform and innovation based on the solid foundation accumulated over the past 20 years and continuously enhance the company’s core competitiveness in the new era. In this regard, the company’s management summarized it into two key words:First, a strong foundation,The second is excellent service.

Strong foundation

“Strong foundation” refers to strengthening China Life’s internal development capabilities at four levels and developing solid basic skills:

  First, lay a solid foundation for the sales team. The marketing team is China Life’s core competitiveness. It will leverage the company’s strong comprehensive strength, customer resources, professional management, good reputation and other unique advantages to strengthen the resource empowerment, training empowerment, and technological empowerment of the sales team. capabilities and management empowerment, further implement the reform of the marketing system, continue to promote quality improvement and education, optimize and upgrade the traditional team, explore the construction of new teams, and create a professional, professional and comprehensive marketing team with China Life characteristics.

  Second, lay a solid foundation for digital operations. Vigorously promote the construction of digital China Life and use digital intelligent tools to transform big data into capabilities for risk identification, product innovation, precision marketing, service optimization, and internal control.

  The third is to consolidate the foundation for linkage of assets and liabilities.. As one of the largest institutional investors, China Life will adhere to the effective linkage of assets and liabilities, strengthen the construction of investment capabilities and investment systems, continue to optimize major asset allocation strategies, and stabilize investment levels.

  The fourth is to lay a solid foundation for refined management.. By continuously optimizing the criss-crossing operation and management system, we can improve the input-output efficiency of sales channels, effectively control operating costs, and enhance the endogenous development momentum of grassroots institutions.

Excellent service

“Excellent service” highlights the essential characteristics of insurance services and builds high-quality services into a new important growth point for China Life.

  First, provide good sales services. Sales staff are the first point of contact for customers. China Life will continue to improve the quality of the sales team, establish service-first awareness, and impress customers with professionalism.

  The second is to optimize operational services. We will further improve the service system, strengthen hierarchical and classified services for customers, promote the transformation of customer service centers into experience centers, strengthen the protection of customer rights and interests, and provide customers with rich policy services and value-added services.

  The third is to strengthen ecological services. Focusing on the big health and big elderly care ecology, we will vigorously promote the construction of the “product + service” ecological system, promote the further integration of products and related services, enrich the “product + health” and “product + elderly care” service scenarios, and accelerate the formation of new business model.

One year after the implementation of the “Eight Major Projects”, a number of phased results have been achieved. On this basis, by further “strengthening the foundation” and “excellent services”, China Life Insurance Company plans to develop new growth points of competitiveness.

  When the reform enters the stage of refinement, the core of China Life, as a central financial enterprise, to become better and stronger lies in “people-centered“Implemented in every aspect of reform and development. Insurance is universal, and insurance products cover various industries and enter thousands of households. At the same time, insurance is naturally of people’s nature, involving people’s birth, old age, illness, death and disability, and is related to everyone closely related.

Over the past 20 years, China Life Insurance Company has focused on consumer needs at each stage of social development and launched a series of insurance products that suit the needs of the times, and created a series of one-day critical illness compensation, in-flight customer service, smart insurance, and life insurance APP elderly care models. batch of service brands and provide customers with hundreds of value-added services. In the era of intelligent development, the company will also use digitalization as the “engine” to create smart services that “benefit and feel the people” in all scenarios, and polish the details of digitalization and customer service through the “people-centered” concept.

In today’s era of increasingly aging society, medical care and nursing care have become the urgent needs of the people, and they are also the starting point for China Life to implement the people’s nature. After more than ten years of exploration, China Life has focused on “big pension” and built a multi-level, all-round, full life cycle, and full industry chain industrial layout. The “Healthy Elderly Care Ecological Construction Project” among the “Eight Major Projects” of China Life Insurance Company takes the insurance business as the core and takes “people-centered” as the starting point and foothold of the “insurance + health care” construction to create high-quality An efficient, online and offline health management service system. In 2023, the company further clarified the “one primary, multiple auxiliary” elderly care service supply system, that is, focusing on institutional elderly care in urban centers with greater demand and higher occupancy rates, supplemented by institutional elderly care in suburban areas, home-based elderly care, and community elderly care. Promote the “insurance + pension” model.

  Over the past 20 years, China Life has been sharing the same destiny with the country and practicing “Serve the overall development of the country and protect the people’s better life“The original intention and mission have achieved the glory of the industry’s “leading goose” and the outstanding performance of listed financial and insurance companies. What will China Life become in the next 20 years? In Li Mingguang’s view, this depends on whether generations of China Life people can maintain their original intention. ,”China Life’s original aspiration has never wavered“.

The blueprint for the future has been drawn. Standing at a new historical starting point, China Life Insurance Company will ride on the great ship of the era of Chinese-style modernization and sail towards the starry sea of ​​world-class life insurance companies to create new glory and dreams for China Life.



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