HONG KONG, March 24, 2022 /PRNewswire/ — China Life Insurance coverage Firm Restricted (SSE: 601628, SEHK: 2628,NYSE: LFC) pronounces the audited consolidated outcomes of the Firm (China Life Insurance coverage Firm Restricted and its subsidiaries) for the 12 months ended 31 December 2021 (the “Reporting Interval”) ready underneath the Worldwide Monetary Reporting Requirements at this time.
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Highlights
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Assessment of Enterprise Operations in 2021
In 2021, the worldwide COVID-19 pandemic continued to evolve, and the home economic system was dealing with triple pressures of shrinking calls for, provide disruption, and weakened expectations of development amid a sophisticated and difficult worldwide setting. Underneath the unprecedented pressures, such because the decelerated launch of insurance coverage calls for and decline of gross sales pressure, the expansion of life insurance coverage business additional slowed down by way of premiums. As well as, the insurance coverage business regulator continued to advertise the return to its unique function by the insurance coverage sector, additional improved system constructing, and bolstered rules within the areas of insurance coverage product administration, gross sales channel growth, market behaviors, operations and companies in addition to company governance, with an purpose on the high-quality growth of the business.
Through the Reporting Interval, the Firm adhered to the strategic core of “Three Main Transformations, Twin Facilities and Twin Focuses, Asset-liability Interplay,” and upheld the operational guideline of “prioritizing enterprise worth, strengthening gross sales pressure, reaching secure development, upgrading expertise, optimizing buyer companies and guarding in opposition to dangers.” By concentrating efforts and overcoming difficulties with sturdy resilience, the Firm steadfastly promoted its high-quality growth whereas continuing with routine pandemic prevention and management, and achieved secure and sound enterprise operations as a complete, with its market main place additional solidified. The standard and effectivity of its operations and companies had been considerably improved, digital transformation was sped up, and its complete strengths had been drastically enhanced.
Through the Reporting Interval, whereas the life insurance coverage business was underneath strain and the expansion of premiums continued to decelerate, the Firm prioritized enterprise worth and pushed ahead transformation and improve, and maintained the business management place in each enterprise scale and worth. In 2021, the Firm’s gross written premiums amounted to RMB618,327 million, a rise of 1.0% 12 months on 12 months, and renewal premiums reached RMB442,463 million, a rise of 5.8% 12 months on 12 months. As on the finish of the Reporting Interval, the embedded worth of the Firm reached RMB1,203,008 million, a rise of 12.2% from the top of 2020. Because of the influence of the pandemic and the slowdown within the launch of calls for for insurance coverage consumption, premiums from new insurance policies had been RMB175,864 million, a lower of 9.3% 12 months on 12 months. The primary-year common premiums had been RMB98,410 million, a lower of 14.7% 12 months on 12 months; specifically, first-year common premiums with a fee length of ten years or longer had been RMB41,682 million, a lower of 26.1% 12 months on 12 months. In 2021, the worth of 1 12 months’s gross sales of the Firm was RMB44,780 million, a lower of 23.3% 12 months on 12 months. The variety of long-term in-force insurance policies was 323 million, a rise of 1.9% from the top of 2020. The give up charge was 1.20%, a rise of 0.11 share level 12 months on 12 months.
Through the Reporting Interval, within the face of a fancy and altering market scenario, the Firm at all times maintained its strategic consistency, strengthened asset-liability administration, firmly carried out its medium- to long-term strategic plan of asset allocation, and repeatedly optimized its allocation administration by centering on the funding worth creation chain. In 2021, the Firm flexibly made tactical allocations in response to the market change, considering short-term revenue stability, prevention of key dangers, and long-term alternatives. The gross funding revenue amounted to RMB214,057 million, a rise of seven.8% 12 months on 12 months, and the gross funding yield was 4.98%.
In 2021, the Firm maintained secure and sound enterprise operations and achieved passable ends in funding. It up to date the low cost charge assumptions for reserves of conventional insurance coverage contracts based mostly on market data as on the date of the assertion of monetary place. Taking the above components under consideration, web revenue attributable to fairness holders of the Firm was RMB50,921 million, a rise of 1.3% 12 months on 12 months.
Insurance coverage Enterprise
Through the Reporting Interval, gross written premiums from the life insurance coverage enterprise of the Firm amounted to RMB481,311 million, rising by 0.1% 12 months on 12 months, gross written premiums from the medical insurance enterprise reached RMB120,609 million, rising by 4.8% 12 months on 12 months, and gross written premiums from accident insurance coverage enterprise had been RMB16,407 million, a year-on-year lower of 1.1%.
In 2021, dealing with persistent impacts of the COVID-19 pandemic and a difficult market setting, the business confronted unprecedented strain for transformation. The Firm continued to deepen the customer-centric gross sales deployment of “Yi Ti Duo Yuan”, specializing in enterprise restructuring and making breakthroughs, and stressing exact allocation of assets on the idea of standardized administration. The person agent enterprise sector persistently prioritized enterprise worth and additional promoted operation differentiation between gross sales groups. The diversified enterprise sector achieved progress whereas sustaining stability and coordinated successfully with the person agent enterprise sector by concentrating on specialised operations, high quality and effectivity enhancement, and transformation and innovation. As on the finish of the Reporting Interval, the variety of complete gross sales pressure of the Firm was roughly 890,000.
Particular person Agent Enterprise Sector
The person agent enterprise sector pursued high-quality growth, persistently deepened enterprise restructuring, and achieved regular enterprise growth. Through the Reporting Interval, gross written premiums from the sector had been RMB509,489 million, a lower of 0.3% 12 months on 12 months. Renewal premiums amounted to RMB407,973 million, a rise of 4.3% 12 months on 12 months. First-year common premiums had been RMB82,254 million, a lower of 17.4% 12 months on 12 months, of which first-year common premiums with a fee length of ten years or longer had been RMB41,580 million, a lower of 26.0% 12 months on 12 months. In 2021, the worth of 1 12 months’s gross sales of the sector was RMB42,945 million, a lower of 25.5% 12 months on 12 months, and new enterprise margin of 1 12 months’s gross sales by annual premium equal was 42.2%, a lower of 5.9 share factors 12 months on 12 months.
Affected by sporadic outbreaks of the pandemic and the difficult market setting, the entire business had difficulties in agent recruitment and retention, and the scale of gross sales pressure consequently declined to a sure extent. The Firm adhered to the gross sales pressure growth technique of enhancing high quality with stabilised amount, and made nice efforts in enhancing its high quality. As on the finish of the Reporting Interval, the variety of brokers of the sector was 820,000, together with 519,000 brokers from the overall gross sales crew and 301,000 brokers from the upsales crew. The month-to-month common productive brokers decreased in contrast with the earlier 12 months, nevertheless, the variety of high-performance brokers was secure, and the muse of gross sales pressure remained strong. Though the sector’s growth was underneath strain, the Firm adhered to the technique of “productive agents-driven enterprise” and made strong stride in enterprise restructuring. The 4.0 model of the common agent administration system was totally promoted and carried out, and transformation of gross sales crew was pushed ahead aiming at changing into extra specialised {and professional}.
Diversified Enterprise Sector
Pushing ahead “Dingxin Undertaking” deployment in nice depth, the diversified enterprise sector focused on skilled operation in addition to high quality and effectivity enhancement, and actively developed the bancassurance, group insurance coverage, and medical insurance companies.
Bancassurance Channel With equal emphasis on enterprise scale and worth, the bancassurance channel persistently pushed ahead sound and wholesome growth. Through the Reporting Interval, gross written premiums from the channel amounted to RMB49,326 million, a rise of 19.6% 12 months on 12 months. First-year common premiums had been RMB16,110 million, a rise of two.3% 12 months on 12 months; specifically, first-year common premiums with a fee length of 5 years or longer had been RMB6,743 million, a rise of 35.3% 12 months on 12 months. Renewal premiums amounted to RMB32,792 million (a year-on-year improve of 30.6%), accounting for 66.48% of gross written premiums from the channel (a year-on-year improve of 5.59 share factors). The bancassurance channel consistently enhanced the skilled service help functionality of the gross sales crew, and the standard of which was steadily improved. As on the finish of the Reporting Interval, the variety of the channel’s account managers was 25,000, the quarterly common lively managers remained secure, and the productiveness per supervisor elevated repeatedly.
Group Insurance coverage Channel The group insurance coverage channel insisted on the coordination of enterprise scale and profitability and achieved secure growth in all enterprise traces. Through the Reporting Interval, gross written premiums from the channel had been RMB29,162 million, a rise of 1.0% 12 months on 12 months. Quick-term insurance coverage premiums from the channel had been RMB25,694 million, a rise of two.9% 12 months on 12 months. As on the finish of the Reporting Interval, the variety of group insurance coverage gross sales representatives was 45,000, amongst which the high-performance personnel elevated by 13.0% from the top of 2020.
Different Channels In 2021, gross written premiums from different channels had been RMB30,350 million, a lower of two.4% 12 months on 12 months. The Firm proactively participated in a wide range of government-sponsored medical insurance companies. As on the finish of the Reporting Interval, the Firm carried out over 200 supplementary main medical bills insurance coverage packages, protecting 350 million folks. It additionally undertook over 400 well being care entrusted packages, offering companies to greater than 100 million folks; 61 long-term care insurance coverage packages in 17 provinces and cities, protecting 23 million folks; and 170 supplementary medical insurance coverage packages in 22 provinces and cities, protecting 91 million folks. The Firm additionally participated within the building of a multi-level social safety system and carried out 54 city-customized business medical insurance coverage initiatives in 15 provinces and cities, protecting greater than 10 million folks.
As well as, the Firm drastically developed the web insurance coverage enterprise and supplied prospects with high-quality service expertise by way of online-to-offline gross sales and on-line direct gross sales. In full compliance with the regulatory necessities of China Banking and Insurance coverage Regulatory Fee (the “CBIRC”) with respect to the web insurance coverage enterprise, the Firm optimized its on-line group and enterprise system, that includes centralized operation and unified administration, and provided a wide range of merchandise for various eventualities and prospects. Through the Reporting Interval, the Firm’s on-line insurance coverage enterprise grew quickly, which was largely achieved by way of online-to-offline integration with gross sales channels of particular person brokers, bancassurance and group insurance coverage. Whole premiums underneath the CBIRC caliber had been RMB34,969 million, reaching a document excessive as soon as once more. Sooner or later, the Firm will additional strengthen the online-to-offline integration of its on-line insurance coverage enterprise, actively discover on the devoted on-line life insurance coverage enterprise, and supply prospects with extra handy on-line insurance coverage companies.
Built-in Monetary Sector
Being customer-centric, the Firm totally leveraged the useful resource benefits of the man members of China Life Insurance coverage (Group) Firm and actively engaged within the building of a “Life Insurance coverage plus” built-in monetary ecosystem, turning the built-in monetary benefits right into a driving pressure for the high-quality growth of the Firm. In 2021, because of the influence of the great reform on auto insurance coverage and the slower development of this sector, premiums from China Life Property and Casualty Insurance coverage Firm Restricted (“CLP&C”) cross-sold by the Firm had been RMB21,107 million, with the variety of insurance coverage insurance policies elevated by 18.0% 12 months on 12 months. Further first-year receipts of enterprise annuity funds and pension safety merchandise of China Life Pension Firm Restricted cross-sold by the Firm had been RMB28,197 million. The Firm entrusted China Guangfa Financial institution Co. Ltd. (“CGB”) to promote its bancassurance merchandise, with the first-year common premiums recording a comparatively secure development. The variety of new debit playing cards and bank cards collectively issued by the Firm and CGB reached 1,224,000. In the meantime, to be able to fulfill the various wants of its prospects, the Firm labored with CGB and CLP&C to hold out varied operation actions to supply prospects with a collection of high quality monetary and insurance coverage service options.
By integrating on-line and offline in addition to inside and exterior healthcare assets, the Firm improved its well being administration and repair capabilities and actively participated within the Wholesome China program. China Life Inclusive Healthcare Service Platform continued to diversify its companies whereas upgrading its system capabilities. As on the finish of the Reporting Interval, greater than 100 sorts of companies had been obtainable on the platform, and the scale of the accrued registered customers of the platform led the business with a rise of over 35% from the top of 2020. The Firm continued to formulate the China Life aged care system and deployed in the direction of high-quality assets within the aged care business resembling rehabilitation, medical care, hospital, well being care huge knowledge, and well being industrial parks by way of the China Life Built-in Aged Care Fund. In 2021, the China Life Built-in Aged Care Fund reserved a batch of pension and retirement initiatives that might meet the diversified and multi-level calls for of shoppers in strategic areas resembling Beijing–Tianjin–Hebei, the Yangtze River Financial Belt, and the Guangdong-Hong Kong-Macao Larger Bay Space.
Insurance coverage Merchandise
Adhering to the customer-centric product growth idea and the unique function of insurance coverage, the Firm totally carried out main nationwide methods together with Wholesome China program, proactively responding to inhabitants growing older and rural revitalization, accelerated insurance coverage product innovation and superior the supply-side reform of insurance coverage merchandise to create a diversified product system.
By carefully integrating the Wholesome China program with its personal enterprise growth, the Firm persistently optimized and upgraded its medical insurance merchandise and strengthened the progressive analysis and growth of sickness insurance coverage merchandise and medical insurance coverage merchandise, and so forth., by way of the insured buyer group, scope of canopy, and safety capabilities, in order to supply diversified well being protections. The Firm actively served the nationwide technique of responding to inhabitants growing older and deepened its analysis in insurance coverage protection and advantages. By leveraging the benefits of the long-term danger safety of insurance coverage merchandise and the long-term software of insurance coverage fund, the Firm launched the unique business pension insurance coverage and particular annuity insurance coverage merchandise for the aged prospects. It additionally developed unique insurance coverage merchandise to facilitate rural revitalization technique, proactively taking part in its function in defending folks’s well-being.
In 2021, the Firm newly developed and upgraded a complete of 160 merchandise, together with 12 life insurance coverage merchandise, 138 medical insurance merchandise, two accident insurance coverage merchandise, and eight annuity insurance coverage merchandise. Out of those merchandise, 144 had been protection-oriented insurance coverage merchandise, and 16 had been long-term financial savings insurance coverage merchandise.
Funding Enterprise
In 2021, home bond yields fluctuated inside a good vary, which rose at first after which fell down, and the rate of interest pivot trended downwards on the entire. The A-share market was unstable, with important sector divergence. The Firm at all times adhered to its strategic consistency, prioritized asset-liability administration in utilizing insurance coverage funds, firmly implementing its medium- to long-term strategic plan of asset allocation, and making versatile tactical allocations in response to the market change. Firstly, the Firm seized the chance of a comparatively excessive rate of interest within the first half of 2021 and elevated allocation to property with lengthy durations resembling authorities bonds to additional slim the length hole. Secondly, the Firm prudently managed fairness danger exposures in open market to scale back portfolio volatility and safe the funding good points. Thirdly, the Firm strengthened the innovation in various funding fashions, and positioned for sectors with prime prospects to ascertain a diversified funding portfolio.
As on the finish of the Reporting Interval, the Firm’s funding property reached RMB4,716,401 million, a rise of 15.2% from the top of 2020. Among the many main sorts of investments, the share of funding in bonds rose to 48.20% from 41.97% as on the finish of 2020, the share of time period deposits modified to 11.23% from 13.32% as on the finish of 2020, the share of funding in debt-type monetary merchandise modified to 9.41% from 11.08% as on the finish of 2020, and the share of funding in shares and funds (excluding cash market funds) modified to eight.75% from 11.31% as on the finish of 2020.
In 2021, the Firm’s web funding revenue was RMB188,770 million, rising by 16.0% 12 months on 12 months, a rise of RMB25,987 million from 2020. Because the Firm persistently elevated its allocation to bonds with lengthy durations in recent times, and the revenue from investments in associates and joint ventures additionally elevated, the web funding yield was 4.38% for 2021, up by 4 foundation factors from 2020. The gross funding revenue of the Firm reached RMB214,057 million, rising by 7.8% 12 months on 12 months, a rise of RMB15,461 million from 2020. Gross funding yield was 4.98%, down by 32 foundation factors from 2020. Affected by the fluctuation within the fairness market, the great funding yield considering the present web honest worth adjustments of available-for-sale securities acknowledged in different complete revenue was 4.87%, down by 146 foundation factors from 2020.
2022 Outlook
For the 12 months 2022, by sticking to the unique function of insurance coverage, we are going to persistently deepen the supply-side reforms and enhance our capability of insurance coverage service provide with regular progress. In addition to, we are going to lead the high-quality growth of the business with our personal high-quality growth, aiming to constructing a world-class life insurance coverage firm and rewarding the shareholders and folks from all walks of life with passable working performances.
About China Life Insurance coverage Firm Restricted
China Life Insurance coverage Firm Restricted is a life insurance coverage firm established in Beijing, China on 30 June 2003 based on the “Firm Legislation of the Individuals’s Republic of China” and the “Insurance coverage Legislation of the Individuals’s Republic of China“. The Firm was efficiently listed on the New York Inventory Alternate, the Hong Kong Inventory Alternate and the Shanghai Inventory Alternate on 17 and 18 December 2003, and 9 January 2007, respectively. The Firm’s registered capital is RMB28,264,705,000.
The Firm is a number one life insurance coverage firm in China and possesses an intensive distribution community comprising unique brokers, direct gross sales representatives, and devoted and non-dedicated businesses. The Firm is without doubt one of the largest institutional traders in China, and turns into one of many largest insurance coverage asset administration firms in China by way of its controlling shareholding in China Life Asset Administration Firm Restricted. The Firm additionally has controlling shareholding in China Life Pension Firm Restricted.
Our services embody particular person life insurance coverage, group life insurance coverage, and accident and medical insurance. The Firm is a number one supplier of particular person and group life insurance coverage, annuity merchandise and accident and medical insurance in China. As at 31 December 2021, the Firm had roughly 323 million long-term particular person and group life insurance coverage insurance policies, annuity contracts, and long-term medical insurance insurance policies in pressure. We additionally present each particular person and group accident and short-term medical insurance insurance policies and companies.
The 2021 consolidated monetary statements of the Firm ready in accordance with the Worldwide Monetary Reporting Requirements have been audited by PricewaterhouseCoopers based mostly on the Worldwide Requirements on Auditing and PricewaterhouseCoopers has issued normal unqualified opinions on the 2021 consolidated monetary statements.
Ahead-looking statements
Sure statements contained on this press launch could also be seen as “forward-looking statements” as outlined by Part 27A of the U.S. Securities Act of 1933 and Part 21E of the U.S. Securities Alternate Act of 1934, as amended. Such forward-looking statements contain recognized and unknown dangers, uncertainties and different components, which can imply that the precise efficiency, monetary situation or outcomes of operations of the Firm might be materially completely different from any future efficiency, monetary situation or outcomes of operations implied by such forward-looking statements. Additional data concerning these dangers, uncertainties and different components is included within the Firm’s Annual Report on Type 20-F for the fiscal 12 months ended 31 December 2020 filed with the U.S. Securities and Alternate Fee, or SEC, on 29 April 2021; and within the Firm’s different filings with the SEC. You shouldn’t place undue reliance on these forward-looking statements. Until in any other case acknowledged, all data supplied on this press launch is as of the date of this press launch, and the Firm undertakes no obligation to replace such data, besides as required underneath relevant legislation.
Until in any other case indicated, the Chinese language insurance coverage market data set forth on this press launch relies on public data launched by China Banking and Insurance coverage Regulatory Fee.
SOURCE China Life