China Life reported a sharp earnings rebound for the six months ended 30 June 2026, marking a robust start to China’s 15th Five-Year Plan period.
Financial Highlights • Net profit attributable to equity holders jumped to RMB 134.49 billion, up 228.6% year-on-year (1H25: RMB 40.93 billion). • Total revenue rose 81.5% to RMB 434.56 billion, driven by a 146.67% rise in gross investment income to RMB 314.50 billion. • Gross written premiums reached RMB 536.63 billion, a 2.20% increase from 1H25, while premiums from new policies climbed 11.6% to RMB 180.04 billion. • First-year regular premiums exceeded RMB 100 billion for the first time in a first-half period, advancing 24.7% to RMB 101.29 billion. • Value of half-year’s sales jumped 33.7% to RMB 38.17 billion; individual agent channel contributed RMB 33.46 billion (+37.5%). • Embedded value rose 10.0% from year-end 2025 to RMB 1.61 trillion. • Operating cash inflow slipped 5.8% to RMB 282.88 billion.
Balance-Sheet Strength • Total assets expanded 6.6% to RMB 8.09 trillion; investment assets grew 7.0% to RMB 7.95 trillion. • Equity attributable to shareholders increased 11.6% to RMB 664.20 billion. • Core and comprehensive solvency ratios remained solid at 156.80% and 197.78% respectively, comfortably above regulatory minimums.
Investment Performance • Gross investment yield improved to 5.58% (1H25: 3.29%), supported by higher equity market returns and active tactical allocation. • Fixed-maturity securities represented 69.50% of the portfolio; equity assets (stocks and funds) rose to 24.27%. • Credit quality remained strong with more than 99% of credit bonds and debt-type products rated AAA.
Dividend Payout The board proposes an interim cash dividend of RMB 0.358 per share (RMB 3.58 per 10 shares), totalling approximately RMB 10.12 billion, up 50.4% year-on-year. The dividend is subject to shareholder approval at the 24 September 2026 EGM. The H-share register will be closed from 11–16 October 2026, with payment slated for 18 November 2026. The company will withhold 10–20% dividend tax for non-resident holders in line with PRC regulations; mainland investors via Stock Connect will be subject to prevailing rules.
Operational Metrics • 14-month and 26-month policy persistency improved to 93.50% and 90.30% respectively. • Surrender rate declined to 0.45% (1H25: 0.52%). • The salesforce stood at roughly 660,000, maintaining the industry’s largest agency network.
Outlook Management targets deeper asset-liability interaction, channel synergies, and sustained cost efficiency for the rest of 2026, while prioritising long-term, value-oriented growth and reinforcing risk controls amid a challenging global macro backdrop.
Comments