China Life Insurance’s profit up 18% for first half

Stronger investment income credited for insurer’s improved earnings

China Life Insurance’s profit up 18% for first half

Insurance News

By Gabriel Olano

China Life Insurance, the market’s largest insurer in terms of market value, has registered a 17.8% increase in earnings for the first half of 2017, mostly attributed to improved investment income.

For the first six months of the year, net profit was RMB12.24 billion (US$1.84 billion), according to a statement by the insurer. Its total investment income climbed by 11.45% to RMB56.66 billion (US$8.51 billion).

Additionally, China Life’s net premiums earned for the first half was at RMB336 billion (US$50.45 billion), an 18.3% year-on-year increase.

China Life’s results follow a market-wide trend, according to the China Insurance Regulatory Commission (CIRC). Overall, Chinese insurers’ first-half profits rose 10% to RMB116.1 billion (US$17.43 billion), the CIRC said last month.

While the insurance industry is enjoying strong growth, it could run into some roadblocks such as the government crackdown which led to the investigation and removal of former CIRC chairman Xiang Junbo on corruption allegations, reports Reuters.

"Chinese life insurers continue to face multiple operating challenges, including moderating economic growth, a further build-up in economy-wide leverage, and rising regulatory pressure,” according to a research note issued by Moody's vice president and senior credit officer Qian Zhu in June.


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