China Life Insurance Company Limited

In the first three quarters of 2024, gross return premiums were RMB600 billion, up 5.1% year on year. Renewal premiums were RMB410.7 billion, up 7.5%, and new policy premiums were RMB197.5 billion, up 0.4%; first-year regular premiums were RMB113.2 billion, up 6.8%, and first-year regular premiums with payment duration of 10 years or longer were RMB52.6 billion, up 17.7%. Short-term insurance premiums were RMB73.7 billion, up 6.3%, and the surrender rate fell to 0.74%, down 0.14 percentage points year on year. Gross investment income was RMB261.4 billion, up 152% on a comparable basis, net investment income was RMB144.7 billion, up 3.9% on a comparable basis, gross investment yield was 5.38%, and net investment yield was 3.26%. Net profit attributable to equity holders was RMB104.5 billion, up 174% year on year. At quarter-end, total assets were RMB6.48 trillion and investment assets were RMB6.36 trillion, up 11.7% and 12.3% from the start of 2024, respectively; core solvency ratio was 154.58% and comprehensive solvency ratio was 211.64%. Management did not give formal next-quarter or full-year numerical guidance, but said it will keep promoting business growth, accelerate sales-force transformation, diversify products and business, strengthen asset-liability management, and manage risk prudently.

President Li Mingguang framed the quarter as a period of strong value creation under the new accounting and market environment. He stressed that China Life will keep focusing on long-term value, asset-liability matching, and diversified product design, especially increasing the share of participating and whole-life products as customer needs and interest-rate conditions change. His tone was constructive and confident, but he repeatedly emphasized prudence, long-termism, and maintaining solvency and liquidity as the top priorities.

Management said the balance sheet stayed strong, with total assets of RMB6.48 trillion, investment assets of RMB6.36 trillion, a core solvency ratio of 154.58%, and a comprehensive solvency ratio of 211.64%. On liabilities, Chief Actuary Hou Jin said guaranteed interest rate cost in 2024 was lower than 2023 by 50 bps on average, and the 2025 new-business guarantee cost is expected to be another 50 bps lower versus this year. She also said the net investment return rate was 3.26%, down 0.27 percentage points year on year, and explained that lower market rates and a prudent credit stance were the main reasons; the company will review its long-term investment return assumptions at year-end, as it does every year.

Analysts focused on product mix, rate cuts, dividend policy, liability costs, equity allocation, and the volatility of reported profits/net assets under the new accounting standards. Management said participating products started gaining momentum since September, but the sales force needs time to retrain and the mix shift will take time; it also said 2024 guaranteed liability cost is already down 50 bps and 2025 should fall another 50 bps. On dividends, Li Mingguang said payouts will continue to depend on business needs, solvency, profitability, and regulations, and he acknowledged industry discussion about whether operating profit should be disclosed as an additional metric. Management also said it is looking at shareholder-return linkage and net asset volatility more carefully, but its primary focus remains long-term value, solvency, and liquidity rather than minimizing quarterly net-asset swings.