China Life's Net Profit Attributable to Parent Fell 46.7% YoY to RMB 89.4 Billion in the First Three Quarters
nashnova research
China Life (02628.HK) posted RMB 89.43 billion in net profit for the first three quarters, down nearly half year-on-year, yet new business value rose 13.1% — the insurance engine is strengthening while the investment book dragged results.
Why did profit fall nearly in half?
Net profit attributable to shareholders came in at RMB 89.43 billion, down 46.7% YoY; revenue was RMB 367.81 billion, down 31.6%.
This means → the slump is not about weaker policy sales — it is about capital-market volatility compounded by a high base from last year's strong investment returns.
In plain terms = last year the market was good and gains were fat; this year markets were softer and the comparison base was high, so profits look ugly.
How are insurance sales holding up?
Total premiums reached RMB 676.14 billion, up 1.0% YoY; first-year regular premiums hit RMB 116.75 billion, up 6.2%, ranking first in the industry.
Renewal premiums totaled RMB 459.48 billion, up 1.7%; long-duration policies of ten years or more continued to lead the sector in both scale and share.
This means → new customers are growing, renewals are stable, and the core insurance franchise is intact.
Any red flags in product mix or customer retention?
Among new policy premiums, annuity insurance accounted for 41.30%, health insurance 32.20%, and life insurance 22.74% — a balanced mix of savings and protection.
The surrender rate was just 0.66%, down 0.08 percentage points YoY.
In plain terms = very few policyholders are walking away, and improving retention is a bedrock health indicator for a life insurer.
Why are new business value and net profit heading in opposite directions?
New business value — a measure of how much profit newly sold policies will generate over their lifetime — rose 13.1% YoY in the first three quarters.
At the same time, guaranteed liability costs fell on both new and in-force books, easing long-term interest-spread pressure.
This reflects resilience in core underwriting operations — the profit problem sits on the investment side, not the insurance side.
What to watch next?
The divergence between net profit and new business value highlights how investment volatility amplifies short-term results for a large insurance group.
This means → whether profit recovers hinges on capital-market trends and the pace at which investment returns normalize — not entirely within the company's control.
In plain terms = selling more policies is something management can drive; whether profits look good still depends on markets cooperating.
市场有风险，内容仅供研究参考，不构成投资建议。