Original title: China Life’s net profit in the first half of the year was 40.975 billion yuan, a year-on-year increase of 34.2%
China News Service, Beijing, August 25 (Reporter Wang Enbo) China Life Insurance Co., Ltd. released its 2021 interim results report on the 25th, showing that the company achieved premium income of 442.299 billion yuan (RMB, the same below) in the first half of the year. A year-on-year increase of 3.5%; net profit attributable to shareholders of the parent company was 40.975 billion yuan, a year-on-year increase of 34.2%.
China Life stated in its semi-annual report that during the reporting period, it continued to strengthen the linkage between capital and liabilities and effectively improved operating efficiency. The increase in net profit was mainly affected by changes in investment income and the updated assumptions about the discount rate of traditional insurance reserves.
The report also pointed out that China Life’s operating income in the first half of the year was 552.601 billion yuan, a year-on-year increase of 7.6%. Under the pressure of the industry’s new policy premium growth and the slowdown in premium growth, it continued to deepen its transformation and upgrading, and its main business indicators remained stable. In the first half of 2021, China Life’s new business value was 29.867 billion yuan. As of the end of the reporting period, the number of long-term insurance policies in effect reached 322 million, an increase of 1.6% from the end of 2020.
In addition, the total assets of China Life in the first half of the year reached 4652.793 billion yuan, an increase of 4% from the end of 2020; the embedded value was RMB 1142.811 billion, an increase of 6.6% from the end of 2020.
In terms of investment business, China Life uses the fixed-income asset allocation window to accumulate long-term assets, and closely follows the fluctuations in the equity market to achieve returns flexibly. In the first half of the year, China Life’s investment assets reached 4,457.524 billion yuan, an increase of 8% from the end of 2020. During the reporting period, its total investment yield was 5.69%, and its net investment yield was 4.33%. After considering the net changes in the fair value of available-for-sale financial assets included in other comprehensive income during the current period, the comprehensive investment yield was 5.61%. (over)
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