Group 1 - BlackRock's stake in China Life has decreased from 6.24% to 5.97% as of September 3 [1]

Core Viewpoint - The National Financial Supervision Administration of Cangzhou has approved the relocation of China Life Insurance Company's marketing service department in Xiang County, indicating regulatory support for the company's operational adjustments [1] Group 1 - The approval allows China Life Insurance Company to change the business location of its Xiang County marketing service department to a new site in Liu Shangzhuang Village, Cangzhou, Hebei Province [1] - The new address is specified as 160 meters northeast of the intersection of National Highway 307 and the village committee street [1] - China Life Insurance Company is required to timely handle the change and obtain the necessary permits as per relevant regulations [1]

[Preliminary Information](index=2&type=section&id=01%20%E5%89%8D%E5%B0%8E%E4%BF%A1%E6%81%AF) [Key Operating Highlights](index=4&type=section&id=%E7%BB%8F%E8%90%A5%E4%BA%AE%E7%82%B9%E6%8C%87%E6%A0%87) In the first half of 2025, China Life demonstrated strong performance across key operating indicators, with total assets exceeding RMB 7 trillion, total premiums reaching a five-year high, rapid growth in new business value, a 6.9% increase in net profit, and high solvency levels | Indicator | Amount (RMB Million) | Notes | | :--- | :--- | :--- | | Number of effective long-term policies | 327 million policies | As of the end of this reporting period | | New business value for H1 | 28,546 | | | Equity attributable to company shareholders | 523,619 | | | Embedded value | 1,477,827 | | | Net profit attributable to company shareholders | 40,931 | | | Total investment income | 127,506 | | | Total premiums | 525,088 | A new high for the same period in the last five years | | Total assets | 7,292,355 | Exceeded RMB 7 trillion | | Comprehensive solvency ratio | 190.94% | Maintained at a high level | [Financial Summary](index=5&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) The company's consolidated financial position showed robust growth in H1 2025, with increases in total assets and liabilities, steady growth in shareholders' equity and net assets per share, a 2.2% rise in total revenue, a 6.9% increase in net profit attributable to shareholders, and a 7.1% increase in net cash flow from operating activities Consolidated Statement of Financial Position Items | Consolidated Statement of Financial Position Items | June 30, 2025 (RMB Million) | December 31, 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 7,292,355 | 6,769,546 | 7.7% | | Of which: Investment Assets | 7,127,153 | 6,611,071 | 7.8% | | Total Liabilities | 6,756,756 | 6,248,298 | 8.1% | | Of which: Insurance Contract Liabilities | 6,285,132 | 5,825,026 | 7.9% | | Equity attributable to company shareholders | 523,619 | 509,675 | 2.7% | | Net assets per share attributable to company shareholders (RMB/share) | 18.53 | 18.03 | 2.7% | | Asset-liability ratio (%) | 92.66 | 92.30 | Increased by 0.36 percentage points | Consolidated Statement of Comprehensive Income Items | Consolidated Statement of Comprehensive Income Items | Jan-Jun 2025 (RMB Million) | Jan-Jun 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 239,488 | 234,235 | 2.2% | | Profit before tax | 42,371 | 47,900 | -11.5% | | Net profit attributable to company shareholders | 40,931 | 38,278 | 6.9% | | Earnings per share (basic and diluted) (RMB/share) | 1.45 | 1.35 | 6.9% | | Weighted average return on net assets (%) | 7.83 | 7.79 | Increased by 0.04 percentage points | | Net cash flow from operating activities | 300,442 | 280,552 | 7.1% | | Net cash flow from operating activities per share (RMB/share) | 10.63 | 9.93 | 7.1% | Consolidated Statement of Financial Position Items with Major Changes | Consolidated Statement of Financial Position Items | June 30, 2025 (RMB Million) | December 31, 2024 (RMB Million) | Change (%) | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Equity instrument investments at fair value through other comprehensive income | 252,792 | 171,817 | 47.1% | Increase in investment asset scale | | Cash and cash equivalents | 119,643 | 85,505 | 39.9% | Due to liquidity management needs | | Financial assets sold under repurchase agreements | 209,785 | 151,564 | 38.4% | Due to liquidity management needs | | Financial liabilities at fair value through profit or loss | 69,915 | 53,521 | 30.6% | Subsidiary engaged in commercial endowment insurance business | Consolidated Statement of Comprehensive Income Items with Major Changes | Consolidated Statement of Comprehensive Income Items | Jan-Jun 2025 (RMB Million) | Jan-Jun 2024 (RMB Million) | Change (%) | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Income tax | 415 | 8,856 | -95.3% | Comprehensive impact of taxable income and deferred income tax | [Chairman's Address](index=6&type=section&id=02%20%E8%91%A3%E4%BA%8B%E9%95%B7%E8%87%B4%E8%BE%AD) [Chairman's Address](index=6&type=section&id=%E8%91%A3%E4%BA%8B%E9%95%B7%E8%87%B4%E8%BE%9E) Chairman Cai Xiliang noted the company's stable and progressive operations in H1 2025, with key performance indicators reaching new highs, total assets exceeding RMB 7 trillion, rapid growth in total premiums and new business value, and a 6.9% increase in net profit, while actively serving national strategies and promoting high-quality development - The company's total assets exceeded **RMB 7 trillion**, reaching **RMB 7.29 trillion**, with net assets of **RMB 535.599 billion** and embedded value of **RMB 1.48 trillion**[16](index=16&type=chunk) - Total premiums reached **RMB 525.088 billion**, with a growth rate setting a new high for the same period in the last five years[16](index=16&type=chunk) - New business value for the first half of the year reached **RMB 28.546 billion**, achieving rapid growth[16](index=16&type=chunk) - Net profit attributable to company shareholders was **RMB 40.931 billion**, a year-on-year increase of **6.9%**[16](index=16&type=chunk) - The Board of Directors proposed an interim cash dividend of **RMB 2.38 per 10 shares** (tax inclusive) for 2025, totaling **RMB 6.727 billion** in interim cash dividends[16](index=16&type=chunk) - Actively participated in undertaking critical illness insurance and long-term care insurance, with long-term care insurance business scale continuously growing, providing risk protection of approximately **RMB 2.7 trillion** for small and micro enterprises and individual businesses[17](index=17&type=chunk) - Broadly participated in the development of the third pillar of elder care, with personal pension insurance premiums significantly increasing year-on-year, and commercial insurance annuity accumulation for future liabilities nearing **RMB 4 trillion**[17](index=17&type=chunk) - Steadily promoted the entry of medium and long-term funds into the market, with public market equity scale increasing by over **RMB 150 billion** from the beginning of the year, and cumulative capital contribution to private equity funds of **RMB 35 billion**[18](index=18&type=chunk) - Investment assets grew by **7.8%** from the beginning of the year, with good investment income performance[19](index=19&type=chunk) - In the first half of the year, over **48 million claims** were paid, with claim expenditures totaling **RMB 160.9 billion**, of which health insurance liability claim expenditures exceeded **RMB 34 billion**[20](index=20&type=chunk) - Maintained an **A-class rating** in the comprehensive risk rating of insurance companies for **28 consecutive quarters**[21](index=21&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=03%20%E7%AE%A1%E7%90%86%E5%B1%A4%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Business Overview](index=8&type=section&id=%E4%B8%9A%E5%8A%A1%E7%BB%BC%E8%BF%B0) In the first half of 2025, the company maintained high-quality development, achieving total premiums of RMB 525.088 billion, a 7.3% year-on-year increase, and steadily increasing market share, with first-year regular premiums ranking first in the industry and new business value growing by 20.3% to RMB 28.546 billion - Total premiums reached **RMB 525.088 billion**, a year-on-year increase of **7.3%**, setting a new historical high for the same period[25](index=25&type=chunk) - First-year regular premiums reached **RMB 81.249 billion**, ranking first in the industry; first-year regular premiums for ten years and above reached **RMB 30.305 billion**, accounting for **37.30%** of first-year regular premiums[25](index=25&type=chunk) - Total sales force numbered **641,000 people**, maintaining a leading position in sales team size[25](index=25&type=chunk) - The proportion of floating-income business in first-year regular premiums increased by over **45 percentage points** compared to the same period last year[26](index=26&type=chunk) - The 14-month policy persistency rate reached **92.10%**, a year-on-year increase of **0.6 percentage points**[26](index=26&type=chunk) - New business value for the first half of the year reached **RMB 28.546 billion**, a year-on-year increase of **20.3%** compared to the restated results for the same period in 2024[26](index=26&type=chunk) - Total assets and investment assets both exceeded **RMB 7 trillion**, reaching **RMB 7.29 trillion** and **RMB 7.13 trillion** respectively[26](index=26&type=chunk) - Net profit attributable to company shareholders was **RMB 40.931 billion**, a year-on-year increase of **6.9%**[27](index=27&type=chunk) [Insurance Business Analysis](index=10&type=section&id=%E4%BF%9D%E9%99%A9%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's insurance business achieved steady growth in H1 2025, with total premiums reaching RMB 525.088 billion, primarily driven by life insurance, while health and accident insurance also developed, with bancassurance showing significant growth and internet insurance expanding rapidly | Indicator | Jan-Jun 2025 (RMB Million) | Jan-Jun 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Premiums | 525,088 | 489,566 | 7.3% | | New Premiums | 161,255 | 160,266 | 0.6% | | Of which: First-year regular premiums | 81,249 | 97,294 | -16.5% | | First-year regular premiums for ten years and above | 30,305 | 42,616 | -28.8% | | Renewal Premiums | 363,833 | 329,300 | 10.5% | | New business value for H1 | 28,546 | 23,733 | 20.3% | | Policy persistency rate (14 months) (%) | 92.10 | 91.50 | Increased by 0.6 percentage points | | Policy persistency rate (26 months) (%) | 88.60 | 84.40 | Increased by 4.2 percentage points | | Surrender rate (%) | 0.52 | 0.48 | Increased by 0.04 percentage points | - The company's new business value for the first half of the year increased by **20.3%**, reaching **RMB 28.546 billion**, continuing to lead the industry[30](index=30&type=chunk) - Embedded value as of June 30, 2025, was **RMB 1,477.827 billion**, an increase of **5.5%** from December 31, 2024[32](index=32&type=chunk) [Total Premium Data](index=10&type=section&id=%E7%B8%BD%E4%BF%9D%E8%B2%BB%E6%95%B8%E6%93%9A) In the first half of 2025, the company's total premiums reached RMB 525.088 billion, with life insurance contributing the most at RMB 439.134 billion, while renewal premiums were the main growth driver, and first-year regular and single premiums varied across different insurance types | Business Type | Jan-Jun 2025 (RMB Million) | Jan-Jun 2024 (RMB Million) | | :--- | :--- | :--- | | Life Insurance Business | 439,134 | 404,645 | | 　First-year Business | 100,513 | 101,147 | | 　　First-year regular premiums | 80,485 | 96,221 | | 　　Single premiums | 20,028 | 4,926 | | 　Renewal Business | 338,621 | 303,498 | | Health Insurance Business | 78,958 | 77,423 | | 　First-year Business | 53,892 | 51,799 | | 　　First-year regular premiums | 764 | 1,073 | | 　　Single premiums | 53,128 | 50,726 | | 　Renewal Business | 25,066 | 25,624 | | Accident Insurance Business | 6,996 | 7,498 | | 　First-year Business | 6,850 | 7,320 | | 　　Single premiums | 6,850 | 7,320 | | Total | 525,088 | 489,566 | [Business Analysis](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E6%9E%90) The company's business performance varied across channels, with individual agency channel showing steady growth driven by renewal premiums and floating-income products, while bancassurance achieved significant increases in both premium scale and new business value, and internet insurance business grew substantially | Channel | Jan-Jun 2025 Total Premiums (RMB Million) | Jan-Jun 2024 Total Premiums (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Individual Agency Channel | 400,448 | 390,134 | 2.6% | | Bancassurance Channel | 72,444 | 49,730 | 45.7% | | Group Insurance Channel | 14,437 | 14,778 | -2.3% | | Other Channels | 37,759 | 34,924 | 8.1% | | Total | 525,088 | 489,566 | 7.3% | [Individual Agency Channel](index=12&type=section&id=%E5%80%8B%E9%9A%AA%E6%B8%A0%E9%81%93) The individual agency channel's total premiums increased by 2.6% to RMB 400.448 billion, with renewal premiums growing by 10.4%, and floating-income products significantly contributing to new regular premiums, while new business value rose by 9.5% to RMB 24.337 billion - Total premiums for the individual agency channel were **RMB 400.448 billion**, a year-on-year increase of **2.6%**[39](index=39&type=chunk) - Renewal premiums were **RMB 326.563 billion**, a year-on-year increase of **10.4%**[39](index=39&type=chunk) - First-year regular premiums for ten years and above were **RMB 30.280 billion**, accounting for over **45%** of first-year regular premiums[39](index=39&type=chunk) - Participating insurance (dividend-paying insurance) accounted for over **50%** of first-year regular premiums in the individual agency channel[39](index=39&type=chunk) - New business value for the individual agency channel in the first half of the year reached **RMB 24.337 billion**, a year-on-year increase of **9.5%**[39](index=39&type=chunk) - The individual agency sales force numbered **592,000 people**, with an increase in high-quality agents by **27.6%** year-on-year[41](index=41&type=chunk) [Bancassurance Channel](index=12&type=section&id=%E9%8A%80%E4%BF%9D%E6%B8%A0%E9%81%93) The bancassurance channel achieved total premiums of RMB 72.444 billion, a 45.7% year-on-year increase, with new policy premiums growing by 111.1% and first-year regular premiums by 34.4% to RMB 17.032 billion, while customer manager per capita productivity significantly improved - Total premiums for the bancassurance channel reached **RMB 72.444 billion**, a year-on-year increase of **45.7%**[42](index=42&type=chunk) - New policy premiums reached **RMB 35.873 billion**, a year-on-year increase of **111.1%**[42](index=42&type=chunk) - First-year regular premiums reached **RMB 17.032 billion**, a year-on-year increase of **34.4%**[42](index=42&type=chunk) - Per capita productivity of bancassurance customer managers significantly increased by **51.8%** year-on-year[42](index=42&type=chunk) [Group Insurance Channel](index=13&type=section&id=%E5%9C%98%E9%9A%AA%E6%B8%A0%E9%81%93) The group insurance channel's total premiums were RMB 14.437 billion, with short-term insurance premiums at RMB 13.162 billion, demonstrating a significant reduction in the comprehensive cost ratio for short-term insurance and improved efficiency, while the sales team's per capita productivity increased by 6.7% - Total premiums for the group insurance channel were **RMB 14.437 billion**, of which short-term insurance premiums were **RMB 13.162 billion**[45](index=45&type=chunk) - The comprehensive cost ratio for short-term insurance in the group insurance channel significantly decreased, effectively improving efficiency[45](index=45&type=chunk) - The group insurance sales force numbered **31,000 people**, with per capita productivity increasing by **6.7%** compared to the same period last year[45](index=45&type=chunk) [Other Channels](index=13&type=section&id=%E5%85%B6%E4%BB%96%E6%B8%A0%E9%81%93) Other channels achieved total premiums of RMB 37.759 billion, a year-on-year increase of 8.1%, with the company actively undertaking policy-based health insurance business, including over 200 critical illness insurance projects, 70 long-term care insurance projects, and 140 city-customized commercial medical insurance projects - Total premiums for other channels reached **RMB 37.759 billion**, a year-on-year increase of **8.1%**[47](index=47&type=chunk) - Participated in undertaking over **200 critical illness insurance projects**, **70 long-term care insurance projects**, and **140 city-customized commercial medical insurance projects**[47](index=47&type=chunk) [Internet Insurance Business](index=13&type=section&id=%E4%BA%92%E8%81%AF%E7%B6%B2%E4%BF%9D%E9%9A%AA%E6%A5%AD%E5%8B%99) In the first half of 2025, the company's internet insurance business achieved total premiums of RMB 70.486 billion, a significant year-on-year increase, as it continued to refine its centralized operation and unified management system - In the first half of 2025, total premiums for the internet insurance business reached **RMB 70.486 billion**, a significant year-on-year increase[48](index=48&type=chunk) [Insurance Product Analysis](index=13&type=section&id=%E4%BF%9D%E9%99%AA%E7%94%A2%E5%93%81%E5%88%86%E6%9E%90) In the first half of the year, the company launched over eighty new products, deepening supply-side reform, focusing on national development, strengthening commercial pension, health, and inclusive insurance product R&D, and building a diversified floating-income product system to support business transformation - In the first half of 2025, the company launched over **eighty products**, continuously building a rich and market-adapted product supply system[49](index=49&type=chunk) - Expanded the commercial pension insurance product library, increased innovation in health insurance products, broadened the coverage of inclusive insurance, and launched several first-time health insurance products[49](index=49&type=chunk) - Focused on key inclusive groups such as "new employment forms," "elderly," "small and micro enterprises," and "rural areas," providing customized solutions including exclusive products[49](index=49&type=chunk) - Built a diversified floating-income product system covering various product types and adapting to market conditions, actively supporting the company's business transformation and development[50](index=50&type=chunk) [“Insurance + Services” Ecosystem Development](index=14&type=section&id=%E3%80%8C%E4%BF%9D%E9%9A%AA%2B%E6%9C%8D%E5%8B%99%E3%80%8D%E7%94%9F%E6%85%8B%E5%BB%BA%E8%A8%AD) The company is committed to a "customer-centric" philosophy, vigorously promoting the "Insurance + Services" ecosystem through integrated financial and big health/elder care ecosystem development, providing comprehensive, full-lifecycle financial and insurance services to customers [Integrated Financial Ecosystem](index=14&type=section&id=%E7%B6%9C%E5%90%88%E9%87%91%E8%9E%8D%E7%94%9F%E6%85%8B%E5%9C%88) Leveraging the group's synergistic advantages in insurance, investment, and banking, the company achieved RMB 12.584 billion in property insurance sales in H1, with policy count increasing by 9.5%, while Guangfa Bank acted as an agent for RMB 1.302 billion in bancassurance first-year regular premiums - In the first half of 2025, synergistic sales of property insurance company business premiums reached **RMB 12.584 billion**, with policy count increasing by **9.5%** year-on-year[52](index=52&type=chunk) - Guangfa Bank acted as an agent for the company's bancassurance first-year regular premiums totaling **RMB 1.302 billion**[52](index=52&type=chunk) - Synergistic sales of pension insurance subsidiary business reached **RMB 8.876 billion**[52](index=52&type=chunk) [Big Health and Big Elder Care Ecosystem Development](index=14&type=section&id=%E5%A4%A7%E5%81%A5%E5%BA%B7%E5%A4%A7%E9%A4%8A%E8%80%81%E7%94%9F%E6%85%8B%E5%BB%BA%E8%A8%AD) The company is innovating in big health and elder care services, building a health management service ecosystem with online consultation, and steadily advancing multi-modal elder care service provision, having established 19 institutional elder care projects in 15 cities and launched four "Suixinju" travel products - Integrated internal and external resources to build a health management service ecosystem, launching inclusive services such as online consultations and VIP value-added services[53](index=53&type=chunk) - Has cumulatively established **19 institutional elder care projects** in **15 cities**, launched four "Suixinju" travel products, and is exploring the development of home-based elder care services[53](index=53&type=chunk) [Investment Business Analysis](index=15&type=section&id=%E6%8A%95%E8%B3%87%E6%A5%AD%E5%8B%99%E5%88%86%E6%9E%90) In H1 2025, the company navigated a complex market, adhering to asset-liability matching and long-term, value-oriented, stable investment principles, optimizing asset allocation, resulting in a 7.8% increase in investment assets, higher equity and fund allocation, and good investment returns - As of the end of this reporting period, the company's investment assets reached **RMB 7.127153 trillion**, an increase of **7.8%** from the end of 2024[57](index=57&type=chunk) - The allocation ratio of stocks and funds (excluding money market funds) increased from **12.18%** at the end of 2024 to **13.60%**[57](index=57&type=chunk) - In the first half of 2025, net investment income reached **RMB 96.067 billion**, with a net investment yield of **2.78%**[59](index=59&type=chunk) - Total investment income reached **RMB 127.506 billion**, with a total investment yield of **3.29%**[59](index=59&type=chunk) [Investment Asset Status](index=15&type=section&id=%E6%8A%95%E8%B3%87%E8%B3%87%E7%94%A2%E6%83%85%E6%B3%81) As of June 30, 2025, the company's total investment assets were RMB 7,127.153 billion, with fixed-maturity financial assets accounting for 73.56% and equity financial assets for 20.00%, showing stable allocation in bonds, time deposits, and debt-type financial products, with an increase in stocks and funds | Item | June 30, 2025 Amount (RMB Million) | June 30, 2025 Proportion | December 31, 2024 Amount (RMB Million) | December 31, 2024 Proportion | | :--- | :--- | :--- | :--- | :--- | | Fixed-maturity financial assets | 5,242,536 | 73.56% | 4,911,524 | 74.29% | | Equity financial assets | 1,425,659 | 20.00% | 1,269,086 | 19.19% | | Investment properties | 12,199 | 0.17% | 12,319 | 0.19% | | Cash and others | 129,235 | 1.81% | 116,065 | 1.76% | | Investments in associates and joint ventures | 317,524 | 4.46% | 302,077 | 4.57% | | Total | 7,127,153 | 100.00% | 6,611,071 | 100.00% | - The allocation ratio of stocks and funds (excluding money market funds) increased from **12.18%** at the end of 2024 to **13.60%**[57](index=57&type=chunk) [Investment Income](index=16&type=section&id=%E6%8A%95%E8%B3%87%E6%94%B6%E7%9B%8A) In the first half of 2025, the company achieved net investment income of RMB 96.067 billion, with a net investment yield of 2.78%, and total investment income of RMB 127.506 billion, with a total investment yield of 3.29%, showing a significant increase in realized disposal gains and a decrease in unrealized gains/losses | Item | Jan-Jun 2025 (RMB Million) | Jan-Jun 2024 (RMB Million) | | :--- | :--- | :--- | | Total investment income | 127,506 | 122,366 | | Net investment income | 96,067 | 92,413 | | Realized disposal gains | 30,374 | (17,674) | | Unrealized gains/losses | 1,029 | 47,778 | | Net investment yield | 2.78% | 3.03% | | Total investment yield | 3.29% | 3.59% | [Credit Risk Management](index=16&type=section&id=%E4%BF%A1%E7%94%A8%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The company's credit asset investments primarily include credit bonds and debt-type financial products, mainly in banking, transportation, and non-bank financial sectors, with over 98% of credit bonds and 99% of debt-type financial products holding AAA external ratings, indicating good asset quality and controllable risk - The company's holdings of credit bonds with external AAA ratings exceeded **98%**[60](index=60&type=chunk) - Debt-type financial products with external AAA ratings exceeded **99%**[60](index=60&type=chunk) [Significant Investments](index=16&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) During this reporting period, the company had no significant equity or non-equity investments that met the disclosure standards - During this reporting period, the company had no significant equity or non-equity investments that met the disclosure standards[61](index=61&type=chunk) [Digital and Intelligent Operations Services](index=17&type=section&id=%E6%95%B8%E6%99%BA%E5%8C%96%E9%81%8B%E7%87%9F%E6%9C%8D%E5%8B%99) In H1 2025, the company advanced digital finance, applying AI, big data, and cloud computing to enhance operational efficiency and customer experience, achieving a 95.8% intelligent underwriting review rate and over 95% accuracy for smart customer service robots, with over 75% of commercial insurance claims processed digitally - Digital underwriters increased the intelligent underwriting review rate to **95.8%**[63](index=63&type=chunk) - The new version of the smart customer service robot achieved an answer accuracy rate of over **95%**[63](index=63&type=chunk) - In the first half of 2025, commercial insurance claims exceeded **12 million cases**, with digital and intelligent services accounting for over **75%** of claims[64](index=64&type=chunk) - The life insurance service quality index ranked first in the industry for **two consecutive years**, and consumer protection regulatory evaluation remained at the highest level for **four consecutive years**[64](index=64&type=chunk) [Special Analysis](index=18&type=section&id=%E5%B0%88%E9%A0%85%E5%88%86%E6%9E%90) This section provides a special analysis of insurance service revenue, expenses, underwriting financial gains/losses, insurance contract liabilities, cash flow, solvency, significant asset disposals, and core competitiveness, noting slight increases in revenue and expenses, a 6.8% growth in underwriting financial gains/losses, and a 7.9% increase in insurance contract liabilities [Insurance Service Revenue](index=18&type=section&id=%E4%BF%9D%E9%99%AA%E6%9C%8D%E5%8B%99%E6%94%B6%E5%85%A5) In the first half of 2025, the company's insurance service revenue was RMB 106.874 billion, a slight year-on-year increase of 0.2%, with contracts not measured using the premium allocation approach contributing RMB 82.243 billion and contracts measured using the premium allocation approach contributing RMB 24.631 billion | Item | Jan-Jun 2025 (RMB Million) | Jan-Jun 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Insurance service revenue | 106,874 | 106,622 | 0.2% | | Contracts not measured using the premium allocation approach | 82,243 | 81,937 | 0.4% | | Contracts measured using the premium allocation approach | 24,631 | 24,685 | -0.2% | [Insurance Service Expenses](index=18&type=section&id=%E4%BF%9D%E9%99%AA%E6%9C%8D%E5%8B%99%E8%B2%BB%E7%94%A8) In the first half of 2025, the company's insurance service expenses were RMB 88.202 billion, a year-on-year increase of 5.2%, with expenses for contracts not measured using the premium allocation approach growing by 9.8% and those for contracts measured using the premium allocation approach decreasing by 4.6% | Item | Jan-Jun 2025 (RMB Million) | Jan-Jun 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Insurance service expenses | 88,202 | 83,822 | 5.2% | | Contracts measured using the premium allocation approach | 25,273 | 26,491 | -4.6% | | Contracts not measured using the premium allocation approach | 62,929 | 57,331 | 9.8% | [Underwriting Financial Gains/Losses](index=18&type=section&id=%E6%89%BF%E4%BF%9D%E8%B2%A1%E5%8B%99%E6%90%8D%E7%9B%8A) In the first half of 2025, the company's underwriting financial gains/losses were RMB 97.978 billion, a year-on-year increase of 6.8%, reflecting the impact of insurance contracts related to the time value of money and financial risks | Item | Jan-Jun 2025 (RMB Million) | Jan-Jun 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Underwriting financial gains/losses | 97,978 | 91,735 | 6.8% | [Insurance Contract Liabilities](index=19&type=section&id=%E4%BF%9D%E9%99%AA%E5%90%88%E5%90%8C%E8%B2%A0%E5%82%B5) As of June 30, 2025, the company's total insurance contract liabilities were RMB 6,285.132 billion, an increase of 7.9% from the end of 2024, primarily due to new and renewal business accumulation and market interest rate changes, while the contractual service margin grew by 1.6% to RMB 754.730 billion | Item | June 30, 2025 (RMB Million) | December 31, 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Total insurance contract liabilities | 6,285,132 | 5,825,026 | 7.9% | | Of which: Contractual service margin | 754,730 | 742,488 | 1.6% | - The contractual service margin for insurance contracts initially recognized during the period was **RMB 26.209 billion**, a year-on-year decrease of **31.0%**, mainly due to changes in market interest rates[75](index=75&type=chunk) [Cash Flow Analysis](index=19&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E5%88%86%E6%9E%90) The company's liquidity sources primarily include premiums, interest, and dividend income, as well as investment asset disposals, with sufficient liquidity evidenced by RMB 119.643 billion in cash and cash equivalents and RMB 457.234 billion in time deposits as of the reporting period end - As of the end of this reporting period, cash and cash equivalents amounted to **RMB 119.643 billion**[77](index=77&type=chunk) - As of the end of this reporting period, the company's time deposits amounted to **RMB 457.234 billion**[77](index=77&type=chunk) [Sources of Liquidity](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E7%9A%84%E4%BE%86%E6%BA%90) The company's cash income primarily stems from received premiums, interest and dividends, and the sale and maturity of investment assets, with cash and cash equivalents of RMB 119.643 billion and time deposits of RMB 457.234 billion at period-end, ensuring ample liquidity - The company's cash income primarily comes from received premiums, interest and dividends, and the sale and maturity of investment assets[76](index=76&type=chunk) - As of the end of this reporting period, cash and cash equivalents amounted to **RMB 119.643 billion**[77](index=77&type=chunk) - As of the end of this reporting period, the company's time deposits amounted to **RMB 457.234 billion**[77](index=77&type=chunk) [Uses of Liquidity](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E7%9A%84%E4%BD%BF%E7%94%A8) The company's primary cash expenditures include payments for insurance product-related liabilities, operating expenses, income tax, and dividends, with insurance business cash outflows mainly for claims, surrenders, withdrawals, and policy loans, and management believes current liquidity is sufficient - The company's main cash expenditures involve payments for liabilities related to various life insurance, annuity, accident, and health insurance products, operating expenses, income tax, and dividends declared to shareholders[78](index=78&type=chunk) - The company believes that its liquidity is sufficient to meet current cash needs[79](index=79&type=chunk) [Consolidated Cash Flow](index=20&type=section&id=%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) In the first half of 2025, the company's net cash flow from operating activities increased by 7.1% to RMB 300.442 billion, while net cash flow from investing activities saw a significant outflow increase of 45.9% to RMB -301.032 billion, and net cash flow from financing activities turned positive at RMB 34.719 billion | Item | Jan-Jun 2025 (RMB Million) | Jan-Jun 2024 (RMB Million) | Change (%) | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | 300,442 | 280,552 | 7.1% | Increase in company business scale | | Net cash flow from investing activities | (301,032) | (206,303) | 45.9% | Due to investment management needs | | Net cash flow from financing activities | 34,719 | (133,616) | Not applicable | Due to liquidity management needs | [Solvency Status](index=20&type=section&id=%E5%84%9F%E4%BB%98%E8%83%BD%E5%8A%9B%E7%8B%80%E6%B3%81) As of June 30, 2025, the company's comprehensive solvency ratio was 190.94% and core solvency ratio was 139.54%, both decreasing from the end of 2024 but remaining at a high level, primarily due to increased equity asset allocation and market interest rate fluctuations | Item | June 30, 2025 (RMB Million) | December 31, 2024 (RMB Million) | | :--- | :--- | :--- | | Core Capital | 749,372 | 767,446 | | Actual Capital | 1,025,432 | 1,039,821 | | Minimum Capital | 537,044 | 500,489 | | Core Solvency Ratio | 139.54% | 153.34% | | Comprehensive Solvency Ratio | 190.94% | 207.76% | - The comprehensive solvency ratio decreased by **16.82 percentage points** from the end of 2024; the core solvency ratio decreased by **13.80 percentage points**[85](index=85&type=chunk) - The decrease was mainly due to the growth in equity asset allocation scale and market interest rate fluctuations[85](index=85&type=chunk) [Disposal of Significant Assets and Equity](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E8%B3%87%E7%94%A2%E5%92%8C%E8%82%A1%E6%AC%8A%E5%87%BA%E5%94%AE) During this reporting period, the company had no significant asset or equity disposals - During this reporting period, the company had no significant asset or equity disposals[87](index=87&type=chunk) [Core Competitiveness Analysis](index=20&type=section&id=%E6%A0%B8%E5%BF%83%E7%AB%B6%E7%88%AD%E5%8A%9B%E5%88%86%E6%9E%90) During this reporting period, there were no significant changes in the company's core competitiveness - During this reporting period, there were no significant changes in the company's core competitiveness[87](index=87&type=chunk) [Major Controlled and Invested Companies](index=21&type=section&id=%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%83%E8%82%A1%E5%85%AC%E5%8F%B8%E6%83%85%E6%B3%81) The company's major subsidiaries, China Life Asset Management Company Limited and China Life Pension Company Limited, both achieved profitability during the reporting period, positively impacting the company's net profit, with no associate companies affecting net profit by more than 10% | Company Name | Company Type | Registered Capital (RMB Million) | Total Assets (RMB Million) | Net Assets (RMB Million) | Net Profit (RMB Million) | | :--- | :--- | :--- | :--- | :--- | :--- | | China Life Asset Management Company Limited | Subsidiary | 4,000 | 26,578 | 21,947 | 2,076 | | China Life Pension Company Limited | Subsidiary | 3,400 | 77,521 | 8,451 | 685 | - During this reporting period, there were no associate companies whose impact on the company's net profit exceeded **10%**[89](index=89&type=chunk) [Acquisition and Disposal of Subsidiaries during the Reporting Period](index=21&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%85%A7%E5%8F%96%E5%BE%97%E5%92%8C%E8%99%95%E7%BD%AE%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E6%83%85%E5%86%B5) Information regarding the acquisition and disposal of subsidiaries during the reporting period can be found in Note 16 to the interim condensed consolidated financial statements - Information regarding the acquisition and disposal of subsidiaries during the reporting period can be found in Note 16 to the interim condensed consolidated financial statements[90](index=90&type=chunk) [Structured Entities Controlled by the Company](index=21&type=section&id=%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%B5%90%E6%A7%8B%E5%8C%96%E4%B8%BB%E9%AB%94%E6%83%85%E5%86%B5) Information regarding significant structured entities controlled by the company can be found in Note 16 to the interim condensed consolidated financial statements - Information regarding significant structured entities controlled by the company can be found in Note 16 to the interim condensed consolidated financial statements[91](index=91&type=chunk) [Risk Management](index=22&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The company has established a comprehensive risk management system, with the Board of Directors bearing ultimate responsibility, encompassing a five-level organizational structure and three lines of defense, and has built a "1+7+N" risk management framework, maintaining high solvency risk management capabilities and an A-class comprehensive risk rating for 28 consecutive quarters - The company has established a comprehensive risk management organizational system with the Board of Directors bearing ultimate responsibility and management directly leading, setting up a **five-level risk management organizational structure**[92](index=92&type=chunk) - A "1+7+N" comprehensive risk management system has been built, with the "Comprehensive Risk Management Regulations" as the纲领, and seven major risk management systems covering insurance risk, market risk, credit risk, operational risk, strategic risk, reputational risk, and liquidity risk as the core[92](index=92&type=chunk) - The company's solvency risk management capability consistently ranks among the top life insurance companies in the industry's SARMRA assessment, and its comprehensive risk rating has maintained an **A-class rating for 28 consecutive quarters**[93](index=93&type=chunk) - Actively promoted the digital and intelligent transformation of risk control, strengthening the application of new technologies such as big data and artificial intelligence in risk prevention and control[93](index=93&type=chunk) [Future Outlook](index=22&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The company anticipates an accelerated industry shift from scale expansion to value creation and efficiency, with competition focusing on long-term customer value, service quality, risk pricing, and cost control, while the company plans to prioritize quality and efficiency, strengthen asset-liability management, transform sales channels, and enhance digital empowerment - The industry's operating logic will accelerate its transformation from scale expansion to value creation and efficiency improvement, with competition focusing comprehensively on long-term customer value management, service quality experience, risk pricing capabilities, and refined cost control[95](index=95&type=chunk) - In the second half of the year, the company will adhere to quality first and efficiency priority, strengthen asset-liability linkage management, steadily promote the transformation and upgrading of sales channels, accelerate the construction of a health and elder care ecosystem, strengthen digital empowerment and application, earnestly protect consumer rights and interests, and firmly guard the bottom line of risk prevention and control[96](index=96&type=chunk) - Pressure from overall investment portfolio return volatility persists, and the industry is in a period of development rhythm transition and transformation and upgrading, with the foundation for high-quality development needing further consolidation[97](index=97&type=chunk) [Industry Landscape and Trends](index=22&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A0%BC%E5%B1%80%E5%92%8C%E8%B6%A8%E5%8B%A2) As regulatory policies deepen, the insurance industry will accelerate its shift from scale expansion to value creation and efficiency, with competition focusing on long-term customer value, service quality, risk pricing, and refined cost control, while enhancing asset-liability matching, product transformation, and health/elder care ecosystem development will be key - The industry's operating logic will accelerate its transformation from scale expansion to value creation and efficiency improvement, with competition focusing comprehensively on long-term customer value management, service quality experience, risk pricing capabilities, and refined cost control[95](index=95&type=chunk) - Enhancing asset-liability matching management capabilities, accelerating product transformation, and developing a health and elder care ecosystem will become key priorities for high-quality industry development[95](index=95&type=chunk) - Achieving cost reduction and efficiency improvement through technological empowerment of operations, building a professional and vocational sales force, and deepening comprehensive services based on the customer's entire lifecycle will be key pathways for the industry to achieve intensive and intrinsic development[95](index=95&type=chunk) [Company Development Strategy and Business Plan](index=22&type=section&id=%E5%85%AC%E5%8F%B8%E7%99%BC%E5%B1%95%E6%88%B0%E7%95%A5%E5%8F%8A%E7%B6%93%E7%87%9F%E8%A8%88%E5%8A%83) In the second half of 2025, the company will prioritize quality and efficiency, strengthen asset-liability linkage management, steadily advance sales channel transformation, accelerate the development of its health and elder care ecosystem, enhance digital empowerment, protect consumer rights, and firmly maintain risk control to build sustainable competitiveness - The company will adhere to quality first and efficiency priority, strengthen asset-liability linkage management, steadily promote the transformation and upgrading of sales channels, and accelerate the construction of a health and elder care ecosystem[96](index=96&type=chunk) - Strengthen digital empowerment and application, earnestly protect consumer rights and interests, and firmly guard the bottom line of risk prevention and control[96](index=96&type=chunk) [Potential Risks](index=22&type=section&id=%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%B0%8D%E7%9A%84%E9%A2%A8%E9%9A%AA) The company faces macroeconomic risks, with persistent pressure from overall investment portfolio return volatility, and the industry is in a transition period requiring further consolidation of high-quality development, though funds are expected to meet H2 business and investment needs - Pressure from overall investment portfolio return volatility still exists[97](index=97&type=chunk) - The industry is in a period of development rhythm transition and transformation and upgrading, with the foundation for high-quality development needing further consolidation[97](index=97&type=chunk) - It is expected that in the second half of 2025, the company's funds will be able to meet insurance business expenditures and the demand for new general investment projects[97](index=97&type=chunk) [Embedded Value](index=23&type=section&id=04%20%E5%85%A7%E5%90%AB%E5%83%B9%E5%80%BC) [Background](index=23&type=section&id=%E8%83%8C%E6%99%AF) Embedded value is an actuarially estimated economic value of an insurance company based on future experience assumptions, with half-year new business value representing the economic value generated by new business, providing useful information to investors but not replacing accounting measures and subject to significant changes with assumption variations - Embedded value is an actuarially estimated economic value of an insurance company based on a set of assumptions about future experience[100](index=100&type=chunk) - Half-year new business value represents the economic value generated by new business sold in the six months prior to the valuation date, based on a set of assumptions about future experience[100](index=100&type=chunk) - The calculation of embedded value involves a large number of complex techniques, and the estimation of embedded value and half-year new business value can change significantly with changes in key assumptions[101](index=101&type=chunk) [Definition of Embedded Value and Half-Year New Business Value](index=24&type=section&id=%E5%85%A7%E5%90%AB%E5%83%B9%E5%80%BC%E5%92%8C%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%96%B0%E6%A5%AD%E5%8B%99%E5%83%B9%E5%80%BC%E7%9A%84%E5%AE%9A%E7%BE%A9) The embedded value of a life insurance company is defined as the sum of its adjusted net asset value and the value of in-force business after deducting the cost of required capital, with both in-force business value and half-year new business value calculated using traditional deterministic discounted cash flow methods - The embedded value of a life insurance company is defined as the sum of its adjusted net asset value and the value of in-force business after considering the deduction of the cost of required capital[102](index=102&type=chunk) - "Adjusted net asset value" equals the sum of net assets, relevant adjustments for after-tax differences between the market value and book value of assets, and certain liabilities[103](index=103&type=chunk)[107](index=107&type=chunk) - The value of in-force business and half-year new business value are calculated using traditional deterministic discounted cash flow methods, implicitly reflecting all risks and the economic cost of required capital not considered elsewhere in the valuation process through the use of risk-adjusted discount rates[104](index=104&type=chunk) [Preparation and Review](index=24&type=section&id=%E7%B7%A8%E8%A3%BD%E5%92%8C%E5%AF%A9%E9%96%B1) The company's embedded value and half-year new business value were prepared by the company in accordance with the "Actuarial Practice Standard: Embedded Value Assessment Standard for Life Insurance" issued by the China Association of Actuaries and reviewed by KPMG Advisory (China) Limited - The embedded value and half-year new business value were prepared by the company in accordance with relevant provisions of the "Actuarial Practice Standard: Embedded Value Assessment Standard for Life Insurance" issued by the China Association of Actuaries[105](index=105&type=chunk) - KPMG Advisory (China) Limited reviewed the company's embedded value and half-year new business value[105](index=105&type=chunk) [Assumptions](index=24&type=section&id=%E5%81%87%E8%A8%AD) The assumptions for the 2025 interim embedded value assessment are consistent with those used in the 2024 year-end assessment - The assumptions for the 2025 interim embedded value assessment are consistent with those used in the 2024 year-end assessment[106](index=106&type=chunk) [Summary of Results](index=25&type=section&id=%E7%B5%90%E6%9E%9C%E7%B8%BD%E7%B5%90) As of June 30, 2025, the company's embedded value was RMB 1,477.827 billion, a 5.5% increase from the end of 2024, with half-year new business value at RMB 28.546 billion, a 20.3% year-on-year increase, and the individual agency channel's half-year new business value ratio at 32.4% by first-year premiums Embedded Value | Item | As of June 30, 2025 (RMB Million) | As of December 31, 2024 (RMB Million) | | :--- | :--- | :--- | | Adjusted net asset value | 949,200 | 897,831 | | Value of in-force business after deducting cost of required capital | 528,627 | 503,315 | | Embedded value | 1,477,827 | 1,401,146 | Half-Year New Business Value | Item | As of June 30, 2025 (RMB Million) | As of June 30, 2024 (RMB Million) | | :--- | :--- | :--- | | Half-year new business value after deducting cost of required capital | 28,546 | 23,733 | | Of which: Individual agency channel half-year new business value | 24,337 | 22,223 | Half-Year New Business Value Ratio for Individual Agency Channel | Item | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Based on first-year premiums | 32.4% | 23.2% | | Based on first-year annualized premiums | 32.7% | 23.5% | [Analysis of Changes](index=26&type=section&id=%E8%AE%8A%E5%8B%95%E5%88%86%E6%9E%90) In the first half of 2025, the company's embedded value increased from RMB 1,401.146 billion at the beginning of the period to RMB 1,477.827 billion at the end, primarily driven by expected return on embedded value, new business value, operating experience differences, investment return differences, and market value adjustments, partially offset by shareholder dividend distribution Changes in Embedded Value | Item | Amount (RMB Million) | | :--- | :--- | | Beginning embedded value | 1,401,146 | | Expected return on embedded value | 37,499 | | New business value for the period | 28,546 | | Differences in operating experience | 3,647 | | Differences in investment returns | 616 | | Market value and other adjustments | 18,363 | | Shareholder dividend distribution and capital changes | (12,719) | | Embedded value as of June 30, 2025 | 1,477,827 | [Sensitivity Results](index=27&type=section&id=%E6%95%8F%E6%84%9F%E6%80%A7%E7%B5%90%E6%9E%9C) Sensitivity tests reveal that the company's value of in-force business and half-year new business value are sensitive to changes in risk discount rates, investment return rates, expense ratios, mortality rates, lapse rates, and morbidity rates, with investment return rate changes having the most significant impact on the value of in-force business Sensitivity Analysis of Value of In-Force Business and Half-Year New Business Value | Assumption Change | Value of In-Force Business after Deducting Cost of Required Capital (RMB Million) | Half-Year New Business Value after Deducting Cost of Required Capital (RMB Million) | | :--- | :--- | :--- | | Base Scenario | 528,627 | 28,546 | | Risk discount rate increased by 50 basis points | 498,586 | 27,233 | | Risk discount rate decreased by 50 basis points | 561,177 | 29,953 | | Investment return rate increased by 10% | 663,591 | 33,122 | | Investment return rate decreased by 10% | 394,271 | 23,979 | | Expense ratio increased by 10% | 520,455 | 26,440 | | Expense ratio decreased by 10% | 536,799 | 30,653 | | Mortality rate for non-annuity products increased by 10%; mortality rate for annuity products decreased by 10% | 523,631 | 28,075 | | Mortality rate for non-annuity products decreased by 10%; mortality rate for annuity products increased by 10% | 533,601 | 29,021 | | Lapse rate increased by 10% | 532,519 | 28,017 | | Lapse rate decreased by 10% | 524,716 | 29,113 | | Morbidity rate increased by 10% | 519,012 | 27,391 | | Morbidity rate decreased by 10% | 538,304 | 29,702 | | Value of in-force business considering diversification effect | 565,538 | – | [Independent Actuarial Review Report on China Life Insurance Company Limited's Embedded Value](index=28&type=section&id=%E9%97%9C%E6%96%BC%E4%B8%AD%E5%9C%8B%E4%BA%BA%E5%A3%BD%E4%BF%9D%E9%9A%AA%E8%82%A1%E4%BB%BD%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E5%85%A7%E5%90%AB%E5%83%B9%E5%80%BC%E7%9A%84%E7%8D%A8%E7%AB%8B%E7%B2%BE%E7%AE%97%E5%B8%AB%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) KPMG Advisory (China) Limited conducted an independent review of China Life's embedded value results as of June 30, 2025, concluding that the company's valuation methods and assumptions comply with actuarial practice standards, are consistent with market information, and the overall results are reasonable - KPMG Advisory (China) Limited reviewed China Life's embedded value results[115](index=115&type=chunk) - The review opinion stated that China Life's embedded value assessment methods and assumptions comply with relevant provisions in the "Actuarial Practice Standard: Embedded Value Assessment Standard for Life Insurance" and are consistent with available market information[118](index=118&type=chunk) - The review opinion concluded that China Life's embedded value results are consistent with the methods and assumptions described in the embedded value section, and on this basis, the overall results are reasonable[118](index=118&type=chunk) [Significant Matters](index=29&type=section&id=05%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) [Significant Litigation and Arbitration Matters](index=29&type=section&id=%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A0%85) During this reporting period, the company had no significant litigation or arbitration matters - During this reporting period, the company had no significant litigation or arbitration matters[120](index=120&type=chunk) [Significant Related Party Transactions](index=29&type=section&id=%E9%87%8D%E5%A4%A7%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) The company engaged in various continuing connected transactions during the reporting period, including insurance business agency, sales, and entrusted investment management agreements with group companies and subsidiaries, all complying with HKEX Listing Rules, and also participated in other significant related party transactions for equity investments - During this reporting period, the company engaged in several continuing connected transactions that require reporting, announcement, and annual review under Chapter 14A of the HKEX Listing Rules but are exempt from independent shareholder approval, including the insurance business agency agreement with the Group Company, the insurance sales business framework agreement with the Property Insurance Company, the insurance fund entrusted investment management agreement with the Asset Management Subsidiary, the framework agreement signed with China Life Capital Company, and the framework agreements signed by the company, the Group Company, and China Life Investment Holding Company with China Life AMP Asset Management[121](index=121&type=chunk) - The company has complied with the disclosure requirements of Chapter 14A of the HKEX Listing Rules and followed the pricing policies and guidelines established at the time of entering into the transactions[122](index=122&type=chunk) - The company established a partnership to invest in infrastructure securities investment funds, with a subscribed capital of **RMB 3.5 billion**[136](index=136&type=chunk) - The company established a partnership to invest in equity related to the silver economy industry, with a subscribed capital of **RMB 2 billion**[137](index=137&type=chunk) - The company established a partnership to invest in equity of nuclear power enterprises, with a subscribed capital of **RMB 1.2 billion**[138](index=138&type=chunk) [Continuing Connected Transactions](index=29&type=section&id=%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) The company engaged in various continuing connected transactions during the reporting period, including agreements with the Group Company, Property Insurance Company, Asset Management Subsidiary, China Life Capital Company, China Life Investment Holding Company, and China Life AMP Asset Management, covering insurance business agency, sales, and entrusted investment management, all in compliance with HKEX Listing Rules - During this reporting period, the company engaged in several continuing connected transactions that require reporting, announcement, and annual review under Chapter 14A of the HKEX Listing Rules but are exempt from independent shareholder approval, including the insurance business agency agreement with the Group Company, the insurance sales business framework agreement with the Property Insurance Company, the insurance fund entrusted investment management agreement with the Asset Management Subsidiary, the framework agreement signed with China Life Capital Company, and the framework agreements signed by the company, the Group Company, and China Life Investment Holding Company with China Life AMP Asset Management[121](index=121&type=chunk) - During this reporting period, the company also engaged in certain continuing connected transactions exempt from reporting, announcement, annual review, and independent shareholder approval under Chapter 14A of the HKEX Listing Rules, including the insurance fund entrusted investment management agreement between the Group Company and the Asset Management Subsidiary[122](index=122&type=chunk) [Insurance Business Agency Agreement](index=30&type=section&id=%E4%BF%9D%E9%99%AA%E6%A5%AD%E5%8B%99%E4%BB%A3%E7%90%86%E5%8D%94%E8%AD%B0) The company signed a 2025-2027 insurance business agency agreement with the Group Company to provide policy management services and collect service fees, totaling RMB 223.84 million in H1 2025 - The company and the Group Company signed the 2025-2027 insurance business agency agreement on December 31, 2024, effective from January 1, 2025, to December 31, 2027[123](index=123&type=chunk) - In the first half of 2025, the company collected a total of **RMB 223.84 million** in policy agency service fees from the Group Company[123](index=123&type=chunk) [Insurance Sales Business Framework Agreement](index=30&type=section&id=%E4%BF%9D%E9%99%AA%E9%8A%B7%E5%94%AE%E6%A5%AD%E5%8B%99%E6%A1%86%E6%9E%B6%E5%8D%94%E8%AD%B0) The company signed the 2024 insurance sales business framework agreement with the Property Insurance Company to act as an agent for property insurance products and collect agency fees, totaling RMB 811 million in H1 2025 - The company and the Property Insurance Company signed the 2024 insurance sales business framework agreement on February 23, 2024, effective from March 8, 2024, to March 7, 2027[124](index=124&type=chunk) - In the first half of 2025, the company collected a total of **RMB 811.00 million** in agency fees from the Property Insurance Company[124](index=124&type=chunk) [Insurance Fund Entrusted Investment Management Agreement](index=30&type=section&id=%E4%BF%9D%E9%99%AA%E8%B3%87%E9%87%91%E5%A7%94%E8%A8%97%E6%8A%95%E8%B3%87%E7%AE%A1%E7%90%86%E5%8D%94%E8%AD%B0) The company signed a 2023-2025 entrusted investment management agreement with the Asset Management Subsidiary, entrusting it with asset management and paying service fees, totaling RMB 2.09447 billion in H1 2025, while the Asset Management Subsidiary also collected RMB 64.43 million from the Group Company - The company and the Asset Management Subsidiary signed the 2023-2025 entrusted investment management agreement on January 1, 2023[125](index=125&type=chunk) - In the first half of 2025, the company paid a total of **RMB 2.09447 billion** in insurance fund entrusted investment management service fees to the Asset Management Subsidiary[126](index=126&type=chunk) - In the first half of 2025, the Asset Management Subsidiary collected a total of **RMB 64.43 million** in investment asset management service fees from the Group Company[127](index=127&type=chunk) [Company's Alternative Investment Entrusted Management and Operation Service Agreement with China Life Investment Holding Company](index=30&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%88%87%E5%9C%8B%E5%A3%BD%E6%8A%95%E8%B3%87%E5%85%AC%E5%8F%B8%E4%BF%9D%E9%9A%AA%E8%B3%87%E9%87%91%E5%8F%A6%E9%A1%9E%E6%8A%95%E8%B3%87%E5%A7%94%E8%A8%97%E6%8A%95%E8%B3%87%E7%AE%A1%E7%90%86%E5%8F%8A%E9%81%8B%E7%87%9F%E6%9C%8D%E5%8B%99%E5%8D%94%E8%AD%B0) The company signed a 2023-2025 alternative investment entrusted management and operation service agreement with China Life Investment Holding Company, entrusting it with alternative investment management and operation services, paying RMB 332.65 million in fees and signing new entrusted investment management assets worth RMB 21.51973 billion in H1 2025 - The company signed the 2023-2025 insurance fund alternative investment entrusted management and operation service agreement with China Life Investment Holding Company on June 30, 2023[128](index=128&type=chunk) - In the first half of 2025, the company paid a total of **RMB 332.65 million** in investment and management service fees and operation service entrusted operation fees to China Life Investment Holding Company[129](index=129&type=chunk) - The contracted amount for newly entrusted investment management assets was **RMB 21.51973 billion**[129](index=129&type=chunk) [Company's Insurance Fund Investment Management Cooperation Framework Agreement with China Life Capital Company](index=31&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%88%87%E5%9C%8B%E5%A3%BD%E8%B3%87%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%BF%9D%E9%99%AA%E8%B3%87%E9%87%91%E6%8A%95%E8%B3%87%E7%AE%A1%E7%90%86%E5%90%88%E4%BD%9C%E6%A1%86%E6%9E%B6%E5%8D%94%E8%AD%B0) The company signed a 2023-2025 framework agreement with China Life Capital Company to subscribe to its fund products, with no subscriptions made in H1 2025, but China Life Capital Company collected RMB 80.63 million in management fees as manager - The company signed the 2023-2025 annual framework agreement with China Life Capital Company on December 28, 2022[130](index=130&type=chunk) - In the first half of 2025, the amount subscribed by the company as a limited partner to fund products where China Life Capital Company or its subsidiaries served as general partners was **RMB 0 million**[130](index=130&type=chunk) - China Life Capital Company, as the general partner or manager of the fund products, collected management fees totaling **RMB 80.63 million**[130](index=130&type=chunk) [Framework Agreement with China Life AMP Asset Management](index=31&type=section&id=%E8%88%87%E5%9C%8B%E5%A3%BD%E5%AE%89%E4%BF%9D%E5%9F%BA%E9%87%91%E6%A1%86%E6%9E%B6%E5%8D%94%E8%AD%B0) The company signed a 2023-2025 framework agreement with China Life AMP Asset Management for fund product subscriptions and redemptions, and private asset management, with H1 subscriptions totaling RMB 7.012 billion and redemptions RMB 4.61175 billion, while the Group Company and China Life Investment Holding Company also have similar agreements - The company signed the 2023-2025 annual framework agreement with China Life AMP Asset Management on December 30, 2022[131](index=131&type=chunk) - In the first half of 2025, the subscription amount for fund products and corresponding subscription fees totaled **RMB 7.012 billion**, and the redemption amount for fund products and corresponding redemption fees totaled **RMB 4.61175 billion**[132](index=132&type=chunk) - The Group Company had no related transactions with China Life AMP Asset Management, while China Life Investment Holding Company and its subsidiaries had subscription amounts of **RMB 175 million** and redemption amounts of **RMB 70 million**[134](index=134&type=chunk)[135](index=135&type=chunk) [Other Significant Related Party Transactions](index=32&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) The company participated in establishing several partnerships for equity investments, including RMB 3.5 billion for an infrastructure securities investment fund, RMB 2 billion for silver economy industry equity, and RMB 1.2 billion for nuclear power enterprise equity, all one-off related party transactions complying with HKEX Listing Rules - The company subscribed **RMB 3.5 billion** to establish Beijing Pingzhun Infrastructure Real Estate Equity Investment Fund Partnership (Limited Partnership), primarily investing in infrastructure securities investment funds[136](index=136&type=chunk) - The company subscribed **RMB 2 billion** to establish Hebei Chengda Linkong Equity Investment Fund Partnership (Limited Partnership), primarily for equity investments in unlisted enterprises within the silver economy industry chain and related fields[137](index=137&type=chunk) - The company subscribed **RMB 1.2 billion** to establish CNNC Tianwan (Beijing) Nuclear Power Equity Investment Fund Partnership (Limited Partnership), intending to make equity investments in nuclear power enterprises[138](index=138&type=chunk) [Purchase, Sale or Redemption of Company Securities](index=32&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%AD%89%E5%88%B8) During this reporting period, the company and its subsidiaries did not purchase, sell, or redeem any of the company's listed securities, and held no treasury shares at the end of the period - During this reporting period, the company and its subsidiaries did not purchase, sell, or redeem any of the company's listed securities[141](index=141&type=chunk) - As of the end of this reporting period, the company held no treasury shares[141](index=141&type=chunk) [Significant Contracts and Their Performance](index=32&type=section&id=%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During this reporting period, the company had no significant trust, contracting, or leasing contracts impacting profit, no external guarantees, and its controlled subsidiary had outstanding external guarantees of RMB 253 million, while investment asset management primarily utilized entrusted investment models with diverse managers - During this reporting period, there were no trust, contracting, or leasing of other company assets, or other companies entrusting, contracting, or leasing company assets, that resulted in gains or losses exceeding **10%** (inclusive) of the company's total profit for the reporting period, nor were there any such matters from previous periods continuing into this reporting period[142](index=142&type=chunk) - During this reporting period, China Life Insurance Company Limited had no external guarantees and did not provide guarantees to its controlled subsidiaries; as of the end of this reporting period, the outstanding external guarantees of the company's controlled subsidiaries amounted to **RMB 253 million**[142](index=142&type=chunk) - The company's investment asset management primarily adopts an entrusted investment management model, forming a diversified entrusted investment management structure with internal China Life system managers as the main force and external managers as effective supplements[143](index=143&type=chunk) [Pension Plans](index=33&type=section&id=%E9%80%80%E4%BC%91%E9%87%91%E8%A8%88%E5%8A%83) The company's full-time employees participate in government-supported basic social old-age insurance and enterprise annuity plans, with monthly contributions made t

Group 1 - The core idea of the article is the implementation of financial consumer rights protection in ethnic regions, highlighted by a recent educational event organized by China Life Property & Casualty Insurance Yunnan Branch [1][3] - The event titled "Small Hands Pull Big Hands: Financial Guardianship" took place at Luchuan County Ethnic Primary School, aiming to educate children on financial safety and consumer rights [1][3] - The financial consumer protection educators used engaging methods to teach students about insurance and financial knowledge, fostering a strong interest in financial literacy among the children [3] Group 2 - China Life Property & Casualty Insurance Yunnan Branch plans to expand financial knowledge dissemination efforts in ethnic regions, contributing to high-quality development in these areas [1][3] - The interactive teaching approach included relatable examples and visual aids, transforming the classroom into an engaging environment for learning about financial consumer rights [3]

Core Viewpoint - The implementation of duck farming insurance in Shandong province has significantly mitigated risks for farmers, enhancing their confidence and financial stability in the face of natural disasters and diseases [1][4][6]. Group 1: Insurance Impact - Shandong Shengyu Agricultural Technology Co., Ltd. received 112,200 yuan in insurance compensation for duck losses due to disasters, highlighting the effectiveness of duck farming insurance [1]. - Since September 2024, the company has insured 1.3 million ducks across six batches, receiving over 400,000 yuan in compensation, which has effectively reduced farming risks [3][6]. - The insurance scheme has been praised by farmers for its affordability and substantial coverage, with a premium of only 0.6 yuan per duck, of which 60% is subsidized by the government [6]. Group 2: Industry Development - The duck farming industry in Guangrao County is recognized as a new emerging industry, with a collaborative model involving processing enterprises, cooperatives, and farmers, leading to a stable industrial chain [3][4]. - The county government is actively researching and optimizing financial support mechanisms to enhance the sustainability of the duck farming industry, utilizing commercial insurance to address risks [4][5]. - The insurance program has covered 133,340 ducks, providing risk protection amounting to 26.668 million yuan, with total claims paid reaching 506,400 yuan, thereby strengthening the risk resilience of duck farming [6][9]. Group 3: Future Outlook - China Life Property & Casualty Insurance is expanding its agricultural insurance offerings, including duck farming, to support the development of specialty agricultural products and enhance the agricultural insurance system [9]. - The company aims to align with national policies to build a multi-layered agricultural insurance system, contributing to rural revitalization and ecological protection in the Yellow River basin [9].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The new business value (NBV) has shown a significant quarter-on-quarter increase, and the interim dividend exceeded expectations [5][6] - The company's mid-year performance aligns with market expectations, with revenue and net profit attributable to shareholders increasing by 2.1% and 6.9% year-on-year, respectively [6][10] - The total investment return rate decreased by 30 basis points to 3.29% year-on-year, while the interim dividend increased by 19%, surpassing the growth rate of net profit [6] Financial Performance Summary - Revenue for the first half of 2025 reached 239.2 billion yuan, and net profit attributable to shareholders was 40.9 billion yuan [6] - The company's net assets, embedded value (EV), and service margin (CSM) increased by 2.7%, 5.5%, and 1.6% respectively compared to the beginning of the year [6] - The NBV growth rate was 20.3% on a comparable basis, significantly higher than the 4.8% growth in the first quarter of 2025, indicating strong sales performance in the second quarter [10] Investment Business Insights - The company experienced a substantial increase in realized investment income, with the proportion of realized gains in total investment income higher than the previous year [11] - The asset allocation strategy has shifted, with an increase in core secondary equity (stocks + equity funds) by 1.4 percentage points to 13.6% [11] Profit Forecast and Valuation - The forecasted net profit for 2025-2027 is 121.8 billion, 124.5 billion, and 143.1 billion yuan, with year-on-year growth rates of 13.9%, 2.2%, and 14.9% respectively [12] - The estimated embedded value per share for 2025-2027 is projected to be 55.6, 60.2, and 65.3 yuan, with the current stock price corresponding to a price-to-embedded value (P/EV) of 0.72, 0.66, and 0.61 times [12]

Core Insights - China Pacific Insurance held a mid-year performance conference for 2025, with Bai Kai attending as the proposed vice president, attracting market attention [2] - Bai Kai previously served as vice president of China Life Insurance and has extensive experience in various managerial roles within the company [4] - China Life's board announced the nomination of Bai Kai and Zhao Guodong as vice presidents, with Bai emphasizing the "reporting and operation integration" policy during earnings calls [5] Company Performance - China Pacific Insurance reported a net profit attributable to shareholders of HKD 6.764 billion for the first half of the year, representing a year-on-year increase of 12.2% [6] - The increase in profit is primarily attributed to improved performance in the insurance services sector compared to the same period last year [6] - Insurance service revenue for the company reached HKD 55.964 billion, showing a slight year-on-year growth of 0.2% [6]

Group 1: Overview of the Belt and Road Initiative - The Belt and Road Initiative (BRI) has evolved from a broad vision to a detailed implementation plan, focusing on five key areas: policy communication, infrastructure connectivity, unimpeded trade, financial integration, and closer people-to-people ties [1][10] - Financial services play a crucial role in supporting BRI projects, with China's insurance and banking sectors actively participating in various initiatives to provide diverse financial support [1][10] Group 2: China Life Insurance's Role - China Life Insurance has been actively involved in the BRI by enhancing its financial service system and expanding its overseas insurance market participation [1][2] - The company has developed specialized insurance products for overseas medical teams and other personnel, addressing the risk management needs associated with BRI projects [2][3] - As of July 2025, China Life Insurance has provided insurance coverage exceeding 58 billion for 5,134 individuals across various enterprises involved in BRI activities [7] Group 3: Regional Initiatives and Achievements - In Ningbo, China Life has provided insurance coverage amounting to 6.53 billion for local enterprises engaged in overseas projects, focusing on high-tech, manufacturing, logistics, and trade sectors [3] - The company has also tailored insurance solutions for small and micro enterprises in Xiamen, covering 5.52 million employees and addressing their unique risk management needs [4] - In Chongqing, since 2024, China Life has offered customized insurance solutions for over 900 individuals involved in overseas projects, with total coverage exceeding 19 billion [5][6] Group 4: Expansion of Services - China Life has expanded its insurance offerings to include various types of coverage such as group accident, critical illness, medical, and emergency rescue for personnel involved in BRI projects [9][10] - The company has established a comprehensive service system that includes preemptive measures, responsive actions during emergencies, and efficient claims processing [6][9] - By collaborating with local governments and enterprises, China Life aims to create a cross-border service ecosystem that integrates risk protection, financial support, and policy alignment [3][4]

Core Insights - Insurance funds have significantly increased their presence in the A-share market, with nearly 800 companies listed among the top ten shareholders as of June 2025, and over 280 stocks being increased in the second quarter alone [2][3] - The total investment scale of insurance funds reached 36 trillion yuan by the end of the second quarter of 2025, with stock investments amounting to 3.07 trillion yuan, a net increase of approximately 640 billion yuan compared to the previous quarter [2][3] Group 1: Investment Trends - The seven major A+H listed insurance companies have a combined investment scale of 21.85 trillion yuan, accounting for 60.30% of the total industry [2] - The stock investment scale of these companies reached 2.05 trillion yuan, with a net increase of 431.3 billion yuan, representing 67.39% of the industry's net increase [3] - Insurance funds are increasingly allocating to equity assets due to declining risk-free returns, with different companies showing varied strategies in their asset allocation [4][5] Group 2: Company-Specific Actions - China Ping An saw the largest increase in stock investment, with a net increase of 211.9 billion yuan, raising its proportion by 2.9 percentage points [4] - China Life's stock investment increased by 119.1 billion yuan, with a 1.1 percentage point rise in proportion [4] - Sunshine Insurance has the highest stock investment proportion among the seven companies at 14.1%, with a 23.9% increase [4] Group 3: Sector Preferences - As of mid-2025, insurance funds have allocated nearly 1 trillion yuan to high-dividend other comprehensive income (OCI) stocks, with a significant increase in the proportion of OCI stocks in their portfolios [6] - The top five sectors for insurance fund holdings include banking, transportation, communication, real estate, and utilities, with the media, communication, and utilities sectors seeing the largest increases in holdings [6] Group 4: Market Dynamics - Insurance funds have engaged in 30 "block trades" since the beginning of 2025, with the banking sector being the most active [8] - The shift in accounting standards is expected to influence the stability of insurance companies' net profits, prompting a greater focus on OCI asset allocation [9] - Recent policy changes have encouraged insurance companies to invest more in the A-share market, with a target of 30% of new premiums allocated annually [10]

Core Viewpoint - Insurance funds are increasingly becoming a significant presence in the A-share market, with substantial investments in various sectors and a notable shift towards equity assets as traditional fixed-income returns decline [2][4][11]. Group 1: Insurance Fund Presence and Investment Trends - As of June 2025, insurance funds are listed among the top ten shareholders in nearly 800 A-share companies, with over 280 stocks increased and more than 300 new positions established in Q2 [2][4]. - The total investment balance of insurance companies in stocks reached 3.07 trillion yuan, an increase of approximately 640 billion yuan from Q4 2024 [4]. - The seven major A+H listed insurance companies hold a combined investment total of 21.85 trillion yuan, accounting for 60.30% of the industry total [4]. Group 2: Investment Strategies and Asset Allocation - Insurance companies are focusing on balancing returns, duration, and cash flow due to the long-term nature of their liabilities, leading to a cautious approach towards risk [4][11]. - In a low-risk return environment, insurance funds are gradually increasing their allocation to equities, with varying strategies among different companies [4][5]. - The average dividend yield of stocks held by insurance funds is 2.30%, slightly down from previous periods due to rising stock prices [8]. Group 3: Specific Company Actions and Sector Preferences - China Ping An has seen the largest increase in stock investment, with a net increase of 211.9 billion yuan, while China Life and New China Life also reported significant increases [5]. - The top five sectors for insurance fund holdings include banking, transportation, telecommunications, real estate, and utilities, with media, telecommunications, and utilities showing the highest quarterly increases [8]. - Insurance funds have engaged in notable stock purchases, with China Life increasing positions in CITIC Bank and China Telecom, while reducing holdings in Sinopec [9][10]. Group 4: Regulatory Environment and Future Outlook - Recent regulatory changes have encouraged insurance companies to allocate more funds to the A-share market, with a target of 30% of new premiums to be invested annually [12]. - The overall market valuation is considered reasonable, with expectations for continued investment in technology, consumer manufacturing, and emerging markets [12].