Key facts
- China Life Insurance Co. anticipates its first-half net profit will more than triple.
- The profit increase is largely due to strong returns from equity investments, particularly in technology stocks.
- New China Life Insurance Company projects a 40% to 60% year-on-year profit increase for the first half of 2026.
- China Life Insurance Co. reported its 2024 net profit may have more than doubled, supported by equity investments.
- Government policies encourage state-owned insurers to invest a significant portion of new premiums in equities.
China Life Insurance Co. Ltd. has projected that its net profit for the first half of the year will more than triple, primarily driven by robust returns from its equity investments, with a particular emphasis on technology-related stocks. This forecast highlights the substantial influence of equity market fluctuations on the earnings of Chinese insurers, largely due to the industry's prevalent use of fair-value accounting for its investment assets.
New China Life Insurance Company anticipates a net profit attributable to shareholders between RMB 20.719 billion and RMB 23.678 billion for the first half of 2026. This represents a year-on-year increase of 40% to 60% compared to the RMB 14.799 billion reported in the same period of 2025. The company attributes this growth to the strengthening of its core life insurance operations and favorable investment income achieved through optimized asset allocation.
China Life Insurance Co., the largest insurer in China by market capitalization, reported that its 2024 net profit may have more than doubled, supported by strong returns on equity investments amid a stock market rally. The company adjusted its investment strategy to capitalize on market conditions, reallocating its equity holdings to optimize returns. The insurer's performance benefited from a 15% increase in the CSI 300 Index last year, attributed to government stimulus policies aimed at supporting economic recovery. With a significant portion of its portfolio in equities, China Life outpaced other insurers.
Analysts believe that government policies, which mandate state-owned insurers to allocate at least 30% of new premiums to equity investments and ease regulations to encourage longer-term market participation, may particularly benefit life insurers like China Life. These policies encourage a preference for high-dividend stocks over fixed-income securities. China Life's shares closed 3% higher at HK$14.48 in Hong Kong on Friday, narrowing its year-to-date loss to 1.4%.