China Life Insurance, the second-largest insurer by market value in its home country, has registered a 365.5% increase in net profit for the third quarter, lifted by a surging stock market and robust premium income.
Third-quarter net profit was at RMB14.6 billion (US$2.2 billion), up from RMB3.13 billion during the same period last year, according to a statement the insurer filed at the Hong Kong Stock Exchange yesterday.
Excellent investment income was the main reason behind the profit upsurge, according to a report by Reuters. Insurance companies in China are allowed to report investment gains as profits, the report added.
The blue-chip index in China reached a 28-month high, accompanied by outstanding earnings reports from firms such as liquor producer Moutai. Upcoming Belt and Road projects also served to increase investor confidence in Beijing.
China Life added that its nine-month net profit increased by around 98% year-on-year. From RMB13.5 billion (US$2.03 billion), it rose to RMB26.8 billion (US$4.04 billion). In the same period, its nine-month premium income increased by just 20%.
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