China Life Insurance Company (2628) H1 2024 earnings summary

Executive summary

• Gross written premiums reached RMB489.57 billion in H1 2024, up 4.1% year-on-year, with net profit attributable to equity holders rising 5.9% to RMB38.28 billion and embedded value exceeding RMB1.4 trillion, up 11.4% year-on-year.

• Value of half year's sales (new business value) grew 18.6% to RMB32.26 billion, maintaining industry leadership.

• Comprehensive solvency ratio stood at 205.23%, and core solvency ratio at 151.9%, both well above regulatory requirements.

• Interim dividend of RMB0.20 per share was introduced, totaling approximately RMB5,653 million, with a historical payout ratio around 39%.

• Maintained top ranking in insurance service quality and industry awards, with ongoing digital transformation and AI adoption.

Financial highlights

• Total assets increased 7.2% to RMB6,222.64 billion; investment assets rose 7.5% to RMB6,086.49 billion.

• Gross investment yield improved to 3.59% year-on-year; net investment yield was 3.03%.

• Total revenues for the period were RMB234.24 billion, up 25.7% year-on-year; profit before income tax rose 27.6% to RMB47.9 billion.

• Net cash inflow from operating activities was RMB280.55 billion, up 12.5% year-on-year.

• Earnings per share (basic and diluted) rose to RMB1.35, up 5.9% year-on-year.

Outlook and guidance

• Focus on high-quality development, steady growth in health and pension insurance, and deepening sales system reforms in H2 2024.

• Proactive response to interest rate changes, continued asset-liability alignment, and diversification of business maturities.

• Continued digital transformation, cost optimization, and integration of healthcare and senior-care ecosystem.

• Sufficient capital anticipated for insurance and investment needs, with potential financing as needed.

• Anticipates overall guaranteed return cost to trend down over the next two to three years.