NEW CHINA LIFE INSURANCE COMPANY LTD. 股份代號: 01336 （於中華人民共和國註冊成立的股份有限公司） 中期報告 2025 新華保險服務號 新華保險服務號 投資者關係網站 New China Insurance Tower, A12 Jianguomenwai Avenue, Chaoyang District, Beijing 100022,P.R.C www.newchinalife.com NEW CHINA LIFE INSURANCE COMPANY LTD. 新華人壽保險股份有限公司 北京市朝陽區建國門外大街甲12號新華保險大廈 New China Life Insurance Company Ltd. 中期報告 重要提示 新華人壽保險股份有限公司 1 1. 董事會、監事會及董事、監事、高級管理人員保證本報告內容的真實、 準確、完整，不存在虛假記載、誤導性陳述或重大遺漏，並承擔個別和 連帶的法律責任。 2. 本公司第八屆董事會第三十六次會議於2025年8月28日審議通過了《2025 年中期報告》。會議應出席董事11人，親自出席董事11人。 3. 本公司202 ...

Group 1 - The insurance sector experienced a decline of 0.3% on September 5, with China Life leading the drop [1] - The Shanghai Composite Index closed at 3812.51, up 1.24%, while the Shenzhen Component Index closed at 12590.56, up 3.89% [1] - Major insurance stocks showed mixed performance, with New China Life Insurance up 0.83% and China Life down 1.16% [1] Group 2 - The net inflow of main funds in the insurance sector was 109 million yuan, while retail funds saw a net inflow of 157 million yuan [1] - The table of fund flows indicates that China Life had a main fund net inflow of 11.77 million yuan, but retail funds saw a net outflow of 28.70 million yuan [2] - China Ping An had a main fund net inflow of 43.37 million yuan, while retail funds experienced a net inflow of 175 million yuan [2]

Regulatory Voice - The State Council issued an opinion on September 4 to guide insurance institutions in developing insurance products for sports events and sports injuries [1] Industry Focus - On September 4, the China Insurance Industry Association released the first set of comprehensive insurance demonstration clauses and supporting underwriting and claims service guidelines for major technical equipment and new materials, marking a significant step in advancing technology insurance and supporting the national manufacturing strategy [1] - Five major A-share listed insurance companies, including China Ping An, China Life, China Pacific Insurance, China People’s Insurance, and New China Life, reported a total revenue of 1,333.86 billion yuan for the first half of 2025, a year-on-year increase of 4.89%, and a net profit attributable to shareholders of 178.19 billion yuan, up 3.72%. Despite revenue growth, net profit showed a mixed performance with four companies increasing and one decreasing. All five companies plan to steadily increase equity asset allocation, focusing on high-dividend value stocks and growth sectors to enhance long-term returns and smooth earnings [1] Financial Personnel - Bai Kai is proposed to be appointed as the Deputy General Manager of China Taiping Insurance Holdings, having previously served as Vice President of China Life Insurance [2] Leadership Changes - China Reinsurance Group announced a leadership change with Zhuang Qianzhi, the former Vice Secretary of the Party Committee and President, set to take over as Party Secretary and proposed Chairman, pending governance and regulatory approval [3] - Li Shihong has been approved to serve as the Chairman of Guobao Life Insurance, as confirmed by the Sichuan Financial Regulatory Bureau on September 1 [4]

Dividend Distribution - The company plans to distribute a mid-term cash dividend of RMB 0.67 per share, totaling approximately RMB 2.09 billion, pending shareholder approval[5]. - The company plans to distribute a total of CNY 7.893 billion in cash dividends for the mid-term and annual periods in 2024, an increase of 197.6% compared to the 2023 dividend amount[121]. - For 2025, the company will continue to distribute a mid-term cash dividend of CNY 0.67 per share, totaling approximately CNY 2.09 billion, which accounts for 14.1% of the net profit attributable to shareholders of the parent company for the first half of 2025[121]. - The company plans to distribute a cash dividend of CNY 1.99 per share (including tax) to all shareholders, totaling approximately CNY 25.20 billion, based on 10% of the net profit from the 2024 annual financial statements[161]. Financial Performance - Total assets reached 1,777,665 million RMB as of June 30, 2025, with a net profit attributable to shareholders of 121,262 million RMB, reflecting a year-on-year growth of 22.7% in premium income[14][21]. - The total revenue for the first half of 2025 reached 69,429 million, an increase of 25.5% compared to 55,312 million in 2024[46]. - The net profit attributable to shareholders for the first half of 2025 was 14,799 million, reflecting a 33.5% increase from 11,083 million in 2024[46]. - The company achieved a pre-tax profit of 16,218 million, which is a 36.0% increase from 11,928 million in the previous year[46]. - The insurance service income for the first half of 2025 was 24,753 million, a 5.7% increase from 23,421 million in 2024[49]. - The company's original insurance premium income for the first half of 2025 reached 121,262 million, a year-on-year increase of 22.7%[61]. - The first-year premium income for long-term insurance was 39,622 million, reflecting a significant growth of 113.1% compared to the previous year[61]. - The first-year regular premium income for long-term insurance increased by 64.9% to 25,528 million, while the first-year lump-sum premium income surged by 353.3% to 14,094 million[61]. - The total investment income for the first half of 2025 was 45,288 million, a 43.3% increase compared to 31,613 million in the same period of 2024[90]. - The net investment income for the first half of 2025 was 23,460 million, reflecting a 9.2% increase from 21,487 million in the previous year[90]. - The company's investment performance saw a significant increase of 82.3%, reaching 9.541 billion CNY in 2025 compared to 5.233 billion CNY in 2024[102]. Risk Management - The company faces various risks including market risk, credit risk, insurance risk, operational risk, reputational risk, strategic risk, and liquidity risk, and has implemented measures to manage these risks effectively[5]. - The company has established a comprehensive risk management system to address various risks, including market risk, credit risk, and operational risk, ensuring compliance with regulatory requirements[116][117]. - The company assures that there are no non-operational fund occupations by controlling shareholders or related parties[5]. - The company has no violations regarding the provision of guarantees without following regulatory decision-making procedures[5]. Business Development - The company achieved a new business value of 61.82 million RMB in the first half of 2025, representing a significant increase of 58.4% compared to the same period in 2024[22]. - The company launched a total of 198 insurance products in the first half of 2025[38]. - The company has established 40 quality health and wellness communities and 36 quality travel projects across 28 cities, enhancing its service ecosystem[29]. - The company has expanded its overseas medical network to 40 international hospitals, enhancing its health management services for clients[29]. - The company is focusing on enhancing the sales of floating income products and diversifying its product offerings to cover the entire life cycle of customers[115]. - The company is committed to a customer-centric strategy, enhancing the breadth, depth, and richness of its insurance services[120]. Employee Development - As of June 30, 2025, the company has a total of 28,120 employees under labor contracts across its main company and 35 subsidiaries[170]. - In the first half of 2025, the company conducted over 10,000 training sessions for its individual insurance channel, training nearly 700,000 participants, with an average learning duration of 76 hours, a 65% increase year-on-year[170]. - The company maintained a stable sales force of 145,387 agents, with premium income growth driven by improved business quality[21]. Investment Performance - The annualized total investment return rate was 5.9% for the first half of 2025, with a total investment scale of 17,125.22 billion RMB[25][26]. - The company's investment portfolio achieved an annualized total investment return of 5.9% and an annualized net investment return of 3.0%[86]. - The annualized comprehensive investment return rate for the first half of 2025 was 6.3%, slightly down from 6.5% in the same period of 2024[90]. - The company's cash and cash equivalents amounted to 32.555 billion CNY, with time deposits totaling 333.109 billion CNY as of the report date[110]. Embedded Value - The company prepared the embedded value results as of June 30, 2025, to provide investors with insights into its economic value and business performance[128]. - The embedded value is defined as the adjusted net asset value plus the effective business value after deducting the required capital cost[130]. - The effective business value represents the present value of expected future after-tax shareholder profits, while the new business value reflects the economic value generated from new life insurance sold over a period[128]. - The adjusted net asset value as of June 30, 2025, is 205,363 million, up from 189,233 million as of December 31, 2024, reflecting a growth of approximately 8.5%[145]. - The effective business value before capital cost deduction for the first half of 2025 is 110,962 million, compared to 104,223 million for the same period of 2024, indicating an increase of about 6.7%[145]. - The new business value for the first half of 2025 is 7,915 million, significantly higher than 5,307 million for the first half of 2024, representing a growth of approximately 49.3%[147]. - The effective business value after capital cost deduction for the first half of 2025 is 6,182 million, compared to 3,902 million for the first half of 2024, showing an increase of around 58.5%[147]. Regulatory Compliance - The board meeting on August 28, 2025, approved the mid-term report, with all 11 directors present[5]. - The mid-term financial report for 2025 has not been audited[5]. - The company held three shareholder meetings, six board meetings, and five supervisory meetings during the reporting period, adhering to regulatory requirements for transparency[159].

Core Insights - The application of AI in the domestic insurance industry is entering a new phase of large-scale implementation, with major companies focusing on cost reduction and efficiency enhancement across the entire business chain [1][2][3] AI Integration in Business Processes - AI technology is transforming core insurance processes from manual to intelligent-driven, significantly improving service efficiency and customer experience [2] - In underwriting and customer service, AI has enhanced operational efficiency, with automated underwriting rates reaching 95.8% and customer service response accuracy exceeding 95% [3][4] Cost Control and Risk Reduction - AI applications in customer service and auditing have substantially reduced labor costs, with companies like ZhongAn Insurance utilizing over 100 active AI robots, achieving 4.5 billion calls in the first half of the year [4][5] - Enhanced AI risk control capabilities have led to significant reductions in fraud losses, with Ping An Insurance intercepting fraud claims worth 6.44 billion yuan, a year-on-year increase of 6% [5] Future Development and Strategic Direction - Several listed insurance companies have identified AI as a long-term strategic direction, with China Pacific Insurance focusing on building an enterprise-level AI capability system [7][8] - The integration of AI is expected to drive innovation in personalized products, health management services, and investment capabilities, with Ping An's investment return rate rising to 3.1% [7][8]

Core Viewpoint - The company reported strong financial performance for the first half of 2025, with significant year-on-year growth in revenue and net profit, outperforming major competitors in the insurance sector [1][2]. Financial Performance - The company achieved operating revenue of 70.041 billion yuan, representing a year-on-year increase of 26.0% [1]. - The net profit attributable to shareholders was 14.799 billion yuan, up 33.5% year-on-year, while competitors like PICC, Taiping, China Life, and Ping An reported growth rates of 16.9%, 11.0%, 6.9%, and a decline of 8.8%, respectively [1]. - The new business value (NBV) reached 6.182 billion yuan, reflecting a robust year-on-year growth of 58.4% [1]. Business Quality and Growth - The company reported original insurance premium income of 121.262 billion yuan, a year-on-year increase of 22.7% [2]. - First-year premiums for long-term insurance surged to 39.622 billion yuan, up 113.1% year-on-year, while first-year regular premium income for long-term insurance reached 25.528 billion yuan, increasing by 64.9% [2]. - The individual life insurance business maintained a 13-month persistency rate of 96.2%, up 1.2 percentage points year-on-year, and a 25-month persistency rate of 92.5%, up 6.9 percentage points year-on-year [2]. - The individual insurance channel had a workforce of 133,000, a decrease of 2.5% from the end of 2024, but the average monthly performance of agents improved [2]. Investment Performance - The company reported an annualized total investment return of 5.9%, an increase of 1.1 percentage points year-on-year, while the annualized net investment return was 3.0%, down 0.2 percentage points year-on-year [3]. - The asset allocation included 50.6% in bonds (up 2.1 percentage points from the previous year), 11.6% in stocks (up 10.2 percentage points), and 7.0% in funds (down 4.9 percentage points) [3]. - High-dividend OCI equity instruments increased to 37.466 billion yuan, a growth of 22% from the beginning of the year [3]. Investment Recommendation - The investment rating is maintained at Buy-A, with projected EPS for 2025-2027 at 8.80 yuan, 11.47 yuan, and 11.72 yuan, respectively [3]. - The company is assigned a 0.8x P/EV for 2025, with a corresponding six-month target price of 70.91 yuan [3].

Core Viewpoint - The insurance industry is shifting towards dividend insurance sales in response to the reduction in the predetermined interest rate, with major listed insurance companies reporting significant growth in this segment despite challenges posed by the new interest rate environment [1][9]. Dividend Insurance Sales Performance - In the first half of 2025, major insurance companies have set ambitious targets for dividend insurance sales, with many aiming for a 50% sales ratio [1]. - Taiping Life reported that dividend insurance accounted for 87.1% of first-year premium income in long-term insurance, while China Pacific Life's new premium income from dividend insurance rose to 42.5%, with agent channels contributing 51% [5][2]. - China Life, Ping An, and other leading insurers have also seen substantial increases in dividend insurance premiums, with Ping An leading at approximately 500 billion yuan, a 40.94% increase year-on-year [4][5]. Market Dynamics and Challenges - The recent adjustment in predetermined interest rates has led to a decrease in the maximum rate for dividend insurance from 2% to 1.75%, which may reduce the attractiveness of these products and increase sales difficulty [1][9]. - Despite this, insurance companies are optimistic about the potential for dividend insurance to become a mainstream product, with expectations for increased market share in the second half of the year [1][10]. Strategic Initiatives for Transformation - Companies are implementing various strategies to promote dividend insurance, including performance assessments, commission adjustments, and tailored product offerings [7][8]. - China Pacific Life has outlined a four-pronged approach to enhance its dividend insurance business, focusing on mindset shifts, differentiated channel strategies, regional adaptations, and resource allocation [7]. - New China Life has established a leadership group to drive the transformation towards dividend insurance, indicating a commitment to overcoming previous sales challenges [8]. Future Outlook - The insurance sector anticipates that the shift towards dividend insurance will accelerate, with companies planning to increase the supply and competitiveness of these products [9][10]. - Ping An has indicated that wealth and pension products will transition to dividend types, reflecting a broader industry trend towards flexible, floating-yield products in response to changing market conditions [11].

Core Viewpoint - The life insurance industry in the first half of 2025 has shown significant profit growth, with 73 companies reporting a total net profit of 185.8 billion, a year-on-year increase of approximately 37 billion, or 25% [10][12][13]. Group 1: Profit Growth and Performance - 52 out of 73 life insurance companies reported profits, while 21 incurred losses, indicating a positive trend in profitability [1][22]. - The net profit of major companies such as Ping An and China Life has significantly contributed to the overall profit increase, with Ping An reporting a net profit of 50.6 billion and China Life 40.3 billion [2][24]. - The industry has experienced three consecutive years of profit growth, reaching a new high that surpasses the same period in 2019 [10][12]. Group 2: Investment and Business Value - The increase in equity investment has led to a rise in investment returns, with the average investment yield for 73 companies rising to 4.22%, up from 3.59% year-on-year [16][18]. - The total amount directly invested in stocks by insurance companies exceeded 3 trillion, marking an increase of approximately 1 trillion compared to the previous year [18]. - New business value has also seen substantial growth, particularly in the bancassurance channel, with companies like China Life and Xinhua Insurance reporting over 100% growth in new single premiums [31][35]. Group 3: Company Rankings and Market Dynamics - The top six life insurance companies have shown robust performance, with significant increases in both premium income and new business value [23][28]. - Tai Kang Life has seen a notable profit increase, attributed to the implementation of new accounting standards and improved investment returns [38][40]. - AIA's new business value rate remains high at 58.6%, reflecting its strong market position and effective agent model [41]. Group 4: Losses and Challenges for Smaller Companies - Despite the overall positive trend, 21 companies reported losses, with many being smaller firms struggling with high liability costs and investment volatility [22][43]. - Companies like Heng Tai Life and Guo Lian Life have faced significant challenges, with declining investment yields contributing to their financial difficulties [49][50]. - The continuous losses among smaller firms highlight the need for capital strengthening and improved operational efficiency to enhance solvency [47][48].

Investment Rating - The report maintains a "Buy-A" investment rating for the company [3][6]. Core Views - The company reported a significant increase in operating revenue and net profit for the first half of 2025, with operating revenue reaching 70.041 billion yuan (YoY +26.0%) and net profit attributable to shareholders at 14.799 billion yuan (YoY +33.5%) [1]. - The new business value (NBV) grew impressively by 58.4% to 6.182 billion yuan, indicating strong business performance and improved quality [1][2]. - The company's embedded value reached 279.394 billion yuan, reflecting an 8.1% increase from the end of the previous year [1]. Summary by Sections Financial Performance - For H1 2025, the company achieved original insurance premium income of 121.262 billion yuan (YoY +22.7%), with first-year premiums for long-term insurance at 39.622 billion yuan (YoY +113.1%) [1]. - The annualized total investment return rate was 5.9% (YoY +1.1 percentage points), while the annualized net investment return rate was 3.0% (YoY -0.2 percentage points) [2]. Business Quality Improvement - The individual life insurance business showed improvement with a 13-month persistency rate of 96.2% (YoY +1.2 percentage points) and a 25-month persistency rate of 92.5% (YoY +6.9 percentage points) [1]. - The company’s distribution channels saw enhancements, with the individual insurance channel having 133,000 agents, and the bancassurance channel contributing significantly to NBV [2]. Future Projections - The report forecasts EPS for 2025, 2026, and 2027 to be 8.80 yuan, 11.47 yuan, and 11.72 yuan respectively, with a target price of 70.91 yuan based on a 0.8x 2025 P/EV [3].

Group 1: Core Insights - The five major listed insurance companies in A-shares achieved a total net profit of 1781.92 billion yuan in the first half of 2025, averaging a daily profit of 9.84 billion yuan [1][4] - These companies announced significant cash dividends, with a total proposed dividend of approximately 293.36 billion yuan, led by China Ping An at 172.02 billion yuan [1][4] - The rise of participating insurance is becoming a new growth engine for the industry, with several companies reporting substantial increases in new premium income from participating insurance [1][7] Group 2: Financial Performance - The total operating revenue of the five major insurance companies reached 1.33 trillion yuan, a year-on-year increase of 4.89% [3] - New business value for life insurance companies saw explosive growth, with China Life and Ping An Life achieving new business values of 285 billion yuan and 223.35 billion yuan, respectively, reflecting year-on-year growth rates of 20.3% and 39.8% [5] Group 3: Participating Insurance Growth - The proportion of participating insurance in new business has significantly increased, with China Life reporting that over 50% of its new business premium comes from participating insurance [7][9] - New premium income from participating insurance for New China Life reached 182.69 billion yuan, a year-on-year increase of 24.9% [7] - The shift towards participating insurance is seen as both a response to the low interest rate environment and a long-term strategy for risk-sharing with customers [2][8] Group 4: Strategic Responses - Insurance companies are focusing on optimizing their product structures and enhancing the sales capabilities of their agents to adapt to the changing market conditions [10][11] - The adjustment in product sales strategies emphasizes understanding customer needs for risk protection and financial management, moving away from solely promoting high guaranteed returns [11]