China Life Insurance Company Limited has released its 2025 annual report, the first among A-share listed insurers, drawing significant market attention. The company reported a net profit attributable to shareholders of 154.078 billion yuan for the full year, a 44.1% increase year-on-year. Total premium income surpassed 700 billion yuan for the first time, reaching 729.887 billion yuan. Total investment income amounted to 387.694 billion yuan, up 25.8% year-on-year, with a total investment return rate of 6.09%, marking the third-highest annual investment performance since the company's listing in 2007.
At the performance briefing held on March 26, the company's management attributed the profit growth primarily to the significant improvement in investment returns. The market is particularly interested in the next steps for asset allocation by this insurance giant, which manages over 7 trillion yuan in investment assets, following its best investment performance in recent years.
Investment returns reached a new high in 2025. China Life's total investment income increased by 79.443 billion yuan compared to 2024. The total investment return rate rose by 59 basis points to 6.09%, a performance only surpassed by the 6.24% in 2015 and 11.07% in 2007.
Liu Hui, Vice President and Chief Investment Officer of China Life, explained at the briefing that the substantial growth in investment returns was due to three factors. First, the company firmly increased its holdings in Chinese assets, strategically raising its equity allocation by nearly 5 percentage points in 2025. Equity investments exceeded 1.2 trillion yuan, with a focus on technology stocks representing China's new quality productive forces. Second, the company capitalized on high interest rates and large-scale long-term bond issuances in previous years, increasing long-term bond allocations across cycles. It has now accumulated over 3 trillion yuan in long-term bonds while also boosting holdings in high-dividend stocks during the period of declining interest rates. Third, the company seized structural market opportunities, capturing the main upward trend in growth-style equities.
Regarding asset allocation structure, as of the end of 2025, China Life's allocation to stocks and funds (excluding money market funds) increased from 12.18% at the end of 2024 to 16.89%. Fixed-maturity financial assets accounted for 70.51%, primarily consisting of bonds, term deposits, and debt-type financial products. The total investment assets reached 7.4 trillion yuan, a 12.3% increase from the end of 2024.
On overseas asset allocation, Liu Hui revealed that the company's overseas asset allocation scale is relatively small and has limited impact on the overall portfolio. However, the company is closely monitoring global geopolitical risks arising from recent policies.
Following its strong investment performance, China Life's future investment strategy has become a key focus. Liu Hui outlined a clear allocation approach at the briefing.
For equity investments, she stated that China Life will continue to promote the entry of medium- to long-term funds into the market and increase equity investments by seizing market opportunities. Specifically, the focus will be on two major asset categories. The first is technology stocks representing China's new quality productive forces, closely following the trends of technological iteration and domestic substitution, and seeking investment targets with explosive growth potential along the entire artificial intelligence industry chain. The second is high-quality, high-dividend stocks, building a diversified dividend portfolio and employing a low-dividend strategy to counter declining interest rates.
Regarding fixed income, Liu Hui noted that the Chinese bond market is currently characterized by low volatility with a slight upward trend in the center. The 10-year government bond yield is expected to fluctuate between 1.75% and 1.9% this year, slightly higher than last year's average, with a widening spread between long and short-term rates. The company will focus on allocation opportunities arising from rising long-term bond yields while adopting a diversified fixed-income strategy to invest in cost-effective varieties, including tier-2 capital bonds, relatively strong fixed-income products, and alternative debt plans.
Liu Hui also detailed the company's approach to equity investments. She mentioned that China Life established one of the first institutions qualified for equity investments after the insurance equity measures were promulgated in 2010 and has maintained a long-term, stable investment style for fifteen years.
In direct equity investments, China Life focuses on core assets and allocates to green "dual-carbon" assets with stable cash flows. In 2016, it invested 20 billion yuan in Sichuan Gas Public Company, receiving a 6% cash dividend. In 2018, it allocated 28 billion yuan to State Power Investment Corporation Nuclear Energy, and in 2021, 3 billion yuan to Huadian New Energy. Both projects went public in 2025, with valuations doubling. Huadian New Energy became the largest IPO on the A-share market in 2025.
In private equity funds, China Life has invested nearly 20 billion yuan through its health industry series of funds, nurturing 22 listed companies with a total market capitalization exceeding one trillion yuan, including industry leaders like Mindray Medical and Qi Commerce. In the technology innovation sector, the company launched a 5 billion yuan sci-tech innovation fund, fostering AI companies such as Moore Threads and MuXi Semiconductor. Recently, it initiated a 4 billion yuan Yangtze River Delta Sci-Tech Innovation Fund, focusing on AI, integrated circuits, and other technology sectors.
For equity investment directions during the 15th Five-Year Plan period, Liu Hui stated that the company will align with national strategies to cultivate emerging industries and strategically layout future industries. It will continue to use diversified tools such as merger funds, PE funds, and secondary funds, focusing on three key areas: artificial intelligence and semiconductors, closely following technological iteration and domestic substitution; health and biotechnology, investing in innovative medical devices, smart diagnostics, and chronic disease management; and green energy and new infrastructure, deepening investments in wind power, nuclear power, and other new energy sectors, while exploring opportunities in new energy storage and computing power coordination.
Premium income exceeded 700 billion yuan. While strengthening its investment side, China Life also achieved a breakthrough in its business operations. In 2025, the company's total premium income reached 729.887 billion yuan, surpassing the 700 billion yuan mark for the first time, an 8.7% increase year-on-year. Renewal premiums accounted for 495.808 billion yuan, nearly 68% of the total premium income.
In terms of channel structure, the individual agent channel generated total premiums of 551.79 billion yuan, up 4.3% year-on-year, with the value of new business increasing by 25.5%. By the end of 2025, China Life had 587,000 individual agents. The bancassurance channel was a highlight, with total premiums of 110.874 billion yuan for the year, a 45.5% increase, and new single premiums up 95.7% year-on-year. The company's total sales force reached 638,000, maintaining the leading position in the industry.
Regarding channel development, Cai Xiliang, Chairman of China Life, stated at the briefing that the individual agent channel is the core channel, contributing 85% of new business value, while bancassurance is a strategic development channel. Against the backdrop of low interest rates and growing pension demands, the company leverages the long-term nature of life insurance products to offer more choices in the pension finance sector.
On the reform of the individual agent channel, Cai Xiliang mentioned that in 2025, the company's quality recruitment capability improved by 40% year-on-year, with the 13-month retention rate increasing by 2.2 percentage points. The age and education structure of the sales force have also improved. In 2026, the individual agent channel will continue to deepen the reform of the marketing system.
For profit distribution, the board of China Life recommended a final cash dividend of 6.18 yuan per 10 shares (tax inclusive) for 2025. Together with the interim cash dividend already distributed, the total annual dividend amounts to 8.56 yuan per 10 shares (tax inclusive), with a total dividend payout of 24.195 billion yuan, a 31.7% increase year-on-year. Since its listing, the company has distributed cumulative dividends exceeding 245 billion yuan.
Addressing the net losses reported in the third and fourth quarters of 2025, Li Mingguang, President of China Life, explained at the briefing that most investment assets and insurance contract liabilities of life insurers are measured at current market value. Fluctuations in net profit and net assets due to market value changes are normal. The loss in the fourth quarter was mainly due to a structural adjustment in the capital market, leading to a correction in some of the stocks and funds held by the company.
Li Mingguang emphasized that life insurers operate with a long-term, cross-cycle perspective, adhering to value investing and long-term investment principles. He recommended analyzing life insurers' profit and loss statements and balance sheets over longer periods.
At the start of the 15th Five-Year Plan period, China Life's management outlined key reform priorities. Li Mingguang stated that in 2026, the company will advance reforms in five key areas: promoting digital transformation by integrating digital technologies closely with business operations to enhance product design, precision sales, operational services, and risk control; upgrading management models and improving asset-liability management mechanisms; fostering coordinated development across all channels while strengthening professional sales and service capabilities; deepening customer operations and enhancing the comprehensive service system; and strengthening investment capabilities, including asset allocation and specific investment skills.
Regarding pension finance and the silver economy, Hou Jin, Assistant President and Chief Actuary of China Life, stated that the company will accelerate the development of pension security services, providing lifelong pension protection while continuing to deepen the "insurance + health and elderly care" ecosystem. Since 2016, the company has participated in over 70 long-term care insurance pilot projects.
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