Mar 27 - Net Profit of China Life Insurance Falls 45.5% YoY

Source: Shanghai Stock Exchange, ChinaScope Financial (Data)

+       China Life Insurance Co., Ltd. (CLIC) (601628.SH, 2628.HK, NYSE: LFC) released its 2011 annual report today, showing that net profit increased 45.5% year-on-year to CNY 18.33 billion. The insurer plans to distribute CNY 0.23 cash dividend per share.

+       The company continues to lead the life insurance market in premiums earned, totaling CNY 318.28 billion in 2011, a 0.1% year-on-year increase, and it holds a market share of 33.3%.

+       The report shows further that investment assets increased 11.9% year-on-year to CNY 1.49 trillion. Bond interest income made yields of 4.28%, but total gross investment yield was only 3.51% due to downturn in China’s stock market.

The lower growth rate of GWP along with poor stock market performance resulted in negative net profit growth in 2011. Meanwhile, the solvency ratio is quickly approaching the lower limit of 150%.

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