China Life Insurance Company (2628) Q3 2024 earnings summary

Executive summary

• Achieved record gross written premiums of RMB 608.25 billion in the first three quarters of 2024, up 5.1% year-over-year.

• Net profit attributable to equity holders reached RMB 104.5 billion, a 173.9% year-over-year increase, driven by a rapid rebound in the stock market and increased investment income.

• Value of new business rose 25.1% year-over-year, with improved sales force quality and a 17.7% increase in monthly average first-year regular premium per agent.

• Total assets reached RMB 6.48 trillion, up 14.6% from end-2023, and solvency ratios remained robust.

• Sales force stabilized at 694,000, with enhanced productivity.

Financial highlights

• Operating income for Q3 2024 was RMB 192.96 billion, up 124.7% year-over-year; for nine months, RMB 427.18 billion, up 54.8%.

• Renewal premiums rose 7.5% year-over-year to RMB 410.74 billion; new policy premiums up 0.4% to RMB 197.51 billion.

• First-year regular premiums with 10+ year duration increased 17.7% year-over-year to RMB 52.56 billion.

• Gross investment income surged 152% year-over-year to RMB 261.42 billion; gross investment yield at 5.38%.

• Net cash inflow from operating activities for nine months was RMB 346.60 billion, up 6.7% year-over-year.

Outlook and guidance

• Plans to accelerate sales force transformation, diversify products and business, and enhance asset-liability management.

• Focus on long-term value creation, risk control, and establishing new growth drivers.

• Product mix to shift towards higher shares of whole life and participating insurance in 2025.