Investment Rating - The report maintains a "Buy" rating for China Life Insurance [2][8]. Core Views - The long-term logic of the insurance industry is the improvement of profitability, while the short-term focus is on market beta. The recent performance demonstrates the insurance sector's resilience and profit release capability during favorable equity market conditions, indicating a potential revaluation of the industry. China Life, as a pure life insurance company, possesses top-tier sensitivity and elasticity within the industry, making it a quality beta asset for allocation. The current valuation stands at 0.80 times PEV [2][12]. Summary by Sections Financial Performance - In the first three quarters of 2025, China Life achieved a net profit attributable to shareholders of 167.8 billion yuan, representing a year-on-year increase of 60.5%. The new business value also grew by 41.8% year-on-year [6][12]. Investment Returns - The company reported a total investment return rate of 6.42%, an increase of 104 basis points year-on-year, with total investment income reaching 368.55 billion yuan, up 41% year-on-year [12]. Liability Management - New business value increased by 41.8% year-on-year, driven by a 10.4% rise in new single premiums. The retention rate remains low at 0.74%, indicating stable liability quality [12]. Workforce and Operational Efficiency - As of the end of Q3 2025, the individual insurance workforce stood at 607,000, showing stability compared to mid-2025. The quality of the workforce has also improved, with higher retention rates and enhanced operational efficiency [12]. Investment Recommendations - The report suggests that China Life is a high-elasticity asset. The insurance sector is expected to see improved profitability in the long term, with a focus on market beta in the short term. The company is positioned for potential valuation reappraisal, maintaining a "Buy" rating [12].

Core Insights - Standard & Poor's Global Market Intelligence released the 2024 ranking of the top 50 global life insurance companies, with China Life Insurance leading the list with $798.07 billion in life and health insurance reserves, surpassing Allianz Group [1][4] Group 1: Rankings and Financials - China Life Insurance ranks first with reserves of $798.07 billion, followed by Allianz at $769.19 billion and Ping An at $683.01 billion [2][4] - The total reserves of the top 50 companies amount to $21.90 trillion, with a total of $17.20 trillion in liabilities [3][5] Group 2: Regional Distribution - North America has 19 companies on the list, with total reserves of $6.52 trillion, accounting for 37.89% of the global total [3][5] - Asia has 14 companies, with reserves of $5.17 trillion, representing 30.03% of the global total, showing significant growth [3][4] Group 3: Notable Performers - In Asia, five Chinese companies made the list, with China Life and Ping An both showing a year-on-year reserve growth of nearly 20% [4][5] - Athene Holding in the U.S. reported a 17.5% increase in reserves, reaching $307.57 billion, marking it as one of the fastest-growing companies in the sector [5] Group 4: Market Trends and Challenges - The global life insurance industry faces challenges such as regulatory uncertainty, market volatility, and the impact of artificial intelligence [5] - A consortium including Allianz and BlackRock plans to acquire a majority stake in Germany's Viridium Group for €3.5 billion, indicating new growth opportunities in the European closed life insurance market [5]

Group 1 - The internet insurance sector experienced a decline of 1.43%, ranking among the top losers in concept sectors, with notable declines from Tianli Technology, Xinhua Insurance, and Jiayun Technology [1] - The main funds in the internet insurance sector saw a net outflow of 1.301 billion yuan, with 10 stocks experiencing net outflows, and 7 stocks seeing outflows exceeding 10 million yuan [2] - The stock with the highest net outflow was Dongfang Caifu, which had a net outflow of 1.230 billion yuan, followed by Weining Health, Jinzhen Shares, and China Ping An [2] Group 2 - Among the stocks in the internet insurance sector, the top gainers included Aishida, Tongfang Shares, and Qitian Technology, with increases of 1.04%, 0.80%, and 0.27% respectively [1][3] - The stocks with the highest net outflows included Dongfang Caifu (-1.85%), Weining Health (-1.81%), and Jinzhen Shares (-1.97%) [2][3] - The net inflow leaders in the sector were Tongfang Shares, Xinhua Insurance, and Xinzhisoft, with net inflows of 69.77 million yuan, 10.51 million yuan, and 5.81 million yuan respectively [2][3]

Core Insights - The insurance sector experienced a decline of 1.23% on November 11, with New China Life Insurance leading the drop [1] - The Shanghai Composite Index closed at 4002.76, down 0.39%, while the Shenzhen Component Index closed at 13289.0, down 1.03% [1] Company Performance - China Ping An (601318) closed at 59.20, down 0.17%, with a trading volume of 362,500 shares and a transaction value of 2.144 billion [1] - China Pacific Insurance (601601) closed at 35.59, down 1.28%, with a trading volume of 267,400 shares and a transaction value of 954 million [1] - China Life Insurance (601628) closed at 43.73, down 1.62%, with a trading volume of 128,600 shares and a transaction value of 562 million [1] - China Property & Casualty Insurance (601336) closed at 8.48, down 1.74%, with a trading volume of 440,500 shares and a transaction value of 375.1 million [1] - New China Life Insurance (601336) closed at 67.09, down 2.23%, with a trading volume of 150,400 shares and a transaction value of 1.019 billion [1] Fund Flow Analysis - The insurance sector saw a net outflow of 32.134 million from institutional investors, while retail investors experienced a net outflow of 84.0465 million [1] - The net inflow from speculative funds was 116 million [1] Individual Stock Fund Flow - New China Life Insurance had a net inflow of 25.5731 million from institutional investors, while retail investors had a net outflow of 76.2197 million [2] - China Life Insurance experienced a net outflow of 0.5293 million from institutional investors and a net inflow of 33.4407 million from speculative funds [2] - China Pacific Insurance had a net outflow of 8.7693 million from institutional investors and a net inflow of 45.3669 million from speculative funds [2] - China Property & Casualty Insurance had a net outflow of 17.9751 million from institutional investors and a net inflow of 26.2701 million from speculative funds [2] - China Ping An had a net outflow of 30.4332 million from institutional investors, with retail investors showing a net inflow of 69.9772 million [2]

Core Viewpoint - China Life Insurance's stock price has shown fluctuations, with a current decline of 2.05% and a market capitalization of 1230.645 billion yuan, reflecting mixed investor sentiment and trading activity [1]. Group 1: Stock Performance - As of November 11, China Life's stock price is 43.54 yuan per share, with a year-to-date increase of 5.60% [1]. - Over the past five trading days, the stock has risen by 0.25%, while it has increased by 9.56% over the last 20 days and 8.20% over the last 60 days [1]. Group 2: Financial Performance - For the period from January to September 2025, China Life reported a net profit of 167.804 billion yuan, marking a year-on-year growth of 60.54% [2]. - The company has distributed a total of 226.344 billion yuan in dividends since its A-share listing, with 51.103 billion yuan distributed over the past three years [2]. Group 3: Shareholder Structure - As of September 30, 2025, the number of shareholders has increased to 119,700, a rise of 15.32% from the previous period [2]. - The top three circulating shareholders include China Securities Finance Corporation with 708 million shares, unchanged from the previous period [2].

Core Viewpoint - The establishment of Xiong'an New Area is a significant decision by the central government to promote coordinated development in the Beijing-Tianjin-Hebei region, with China Life actively contributing to its financial service system and economic development [1] Group 1: Institutional Layout and Financial Services - China Life has integrated the service of Xiong'an New Area into its strategic deployment, establishing various subsidiaries and institutions to support the area's development [2] - The company has set up a comprehensive financial service network in Xiong'an, including the Xiong'an Financial Development Center and various insurance and banking branches [3] Group 2: Long-term Financial Support - China Life plays a crucial role as an institutional investor, providing long-term funding for infrastructure, housing, and ecological protection in Xiong'an, including a significant investment in local government bonds [4] - The company has invested nearly 400 billion yuan through various financial plans to support transportation infrastructure in the Beijing-Tianjin-Hebei region [4] Group 3: Housing and Environmental Initiatives - China Life plans to establish a rental housing Pre-reits fund in collaboration with Xiong'an to innovate the housing supply system [5] - The company has also initiated an ecological protection fund, contributing 2 billion yuan to support environmental projects in Xiong'an [5] Group 4: Social Welfare and Insurance - China Life has provided extensive insurance coverage for residents in Xiong'an, including health and student insurance, amounting to nearly 9 billion yuan in risk protection [7] - The company has also supported the construction of a pension system in Xiong'an, managing nearly 290 million yuan in corporate pension funds [8]

Core Viewpoint - The insurance industry is experiencing significant growth in new business value (NBV) for life insurance and improvements in the combined ratio (COR) for property insurance, driven by investment income, leading to enhanced profitability and a positive outlook for leading insurance companies [1][2]. Group 1: Life Insurance NBV Growth - The life insurance sector has shown robust growth in NBV for the first three quarters of 2025, with notable increases from major players: China Pacific Insurance (31.2%), China Life (41.8%), China Ping An (46.2%), New China Life (50.8%), China Re (76.6%), and AIA (19.3%) [2]. - The growth is attributed to an increase in new policies and an improvement in the new business value rate [2]. Group 2: Property Insurance COR Improvement - The property insurance sector has seen a continued improvement in the combined ratio for the first three quarters of 2025, with China Re at 96.1% (-2.1pt), Ping An Property at 97.0% (-0.8pt), and China Pacific Property at 97.6% (-1.0pt) [2]. - This improvement is due to better catastrophe claims management and enhanced cost control measures [2]. Group 3: Investment Income and Profitability - Investment income has significantly boosted net profit for listed insurance companies, with growth rates for net profit in the first three quarters of 2025 as follows: China Life (60.5%), New China Life (58.9%), China Re (50.5%), China Ping An (28.9%), China Pacific (19.3%), and China Life (11.5%) [2]. - The contribution of investment service performance to profit improvement is substantial, with New China Life (51.5%), China Life (50.9%), and China Re (49.5%) leading in this regard [3]. Group 4: Net Asset Improvement - The overall net asset improvement for listed insurance companies in the first three quarters of 2025 is as follows: China Life (22.8%), China Re (16.9%), China Ping An (6.2%), New China Life (4.4%), and China Pacific (-2.5%) [3]. - Changes in net assets are primarily influenced by variations in other comprehensive income and retained earnings, with the current profit, especially from TPL asset investment income, playing a crucial role in enhancing net assets [3]. Group 5: Future Outlook - The life insurance sector is expected to see continued improvement in liability costs, with market share further concentrating among leading companies [4]. - The property insurance sector is anticipated to maintain improved underwriting profitability under the combined insurance model [4]. - The importance of active management capabilities in investment strategies is expected to rise, with insurance companies likely to adjust bond allocations based on interest rate changes and enhance equity allocations under long-term market policies [4].

Core Viewpoint - The pursuit of "health and longevity" is becoming a central goal in modern society, moving beyond mere longevity to maintaining quality of life over an extended lifespan. This shift is supported by a collaborative ecosystem of scientists, pharmaceutical and medical device companies, healthcare providers, and health service payers, driving the "big health" industry forward [1][2][7]. Group 1: Overview of the Big Health Industry - Well Equity Partners focuses on the health and longevity sector, backed by Walgreens Boots Alliance, a long-standing member of the Fortune Global 500 list [2]. - The collaboration between Fortune magazine and Well Equity Partners has identified 23 noteworthy companies in the big health sector, showcasing both established giants and emerging startups [2][3]. - The selected companies share a common trait: their business strategies and core operations align with the goals of promoting health and longevity [3][7]. Group 2: Key Companies in the Big Health Sector - Notable companies include UnitedHealth Group, Elevance Health, Johnson & Johnson, Roche, HCA Healthcare, Bayer, Eli Lilly, Novo Nordisk, China National Pharmaceutical Group, and others, all of which are recognized in the Fortune Global 500 [5][6]. - Emerging companies such as Shanghai Ladder Medical Technology and Quantum Life Limited are also highlighted for their innovative contributions to the health and longevity landscape [6][7]. Group 3: Innovations in Disease Management - The focus on transforming severe diseases into manageable chronic conditions is crucial for achieving health and longevity. Companies are innovating in drug development and medical devices to address high-prevalence diseases like metabolic and neurodegenerative disorders [14][24]. - Novo Nordisk and Eli Lilly are leading in the diabetes treatment space with their GLP-1 drugs, which have opened new avenues for managing metabolic diseases [16][17]. - Bayer is pioneering cell and gene therapies for neurodegenerative diseases, particularly Parkinson's disease, showcasing advancements in treatment methodologies [19][20]. Group 4: Preventive Health and Early Diagnosis - The emphasis on early detection and diagnosis is vital for intercepting health issues before they escalate. Companies are developing portable and efficient diagnostic tools to enhance accessibility and accuracy in healthcare [26][27]. - Innovations in functional foods and lifestyle management are gaining traction, aligning with the "Food as Medicine" philosophy to prevent diseases through dietary interventions [31][32]. Group 5: Health Services and Insurance Models - Companies like UnitedHealth Group and Elevance Health are creating integrated ecosystems that encompass health insurance, medical services, and health information technology, optimizing patient care and cost efficiency [39][40]. - In China, Taikang Insurance Group is building a comprehensive health ecosystem that connects insurance, asset management, and healthcare services, addressing the needs of various demographics [40]. Group 6: Future Directions and Ecosystem Development - The evolution of the health and longevity sector is marked by a shift towards a more integrated approach, where scientific research, innovative products, and supportive payment mechanisms converge to enhance public health outcomes [44][46]. - The ongoing development of technologies and services aims to make health and longevity accessible to a broader population, moving from niche offerings to mainstream solutions [43][46].

Core Viewpoint - The article discusses the implementation of the second phase of the solvency regulation (偿二代二期) for insurance companies in China, focusing on the calculation and significance of future policy earnings and remaining margins as key indicators of the operational status of life insurance companies [1]. Group 1: Future Policy Earnings and Remaining Margins - The future policy earnings, introduced under the second phase of solvency regulation, can be derived using specific formulas, which help in understanding the remaining margins of profitable life insurance companies [2][3]. - The difference between accounting reserves and solvency reserves is termed ACCIF, representing the contribution of existing policies to actual capital. For most small and medium-sized life insurance companies, future policy earnings equate to ACCIF [3]. - By the end of 2024, only 27 life insurance companies are expected to have reported three consecutive years of profitability under tax standards, with specific companies like 人保寿险 failing to meet this criterion [5]. Group 2: Analysis of Remaining Margins - The article identifies four main reasons for a decline in future policy earnings: high proportion of participating insurance, increased comprehensive premiums, lower continuation rates for high future earnings products, and adjustments in actuarial assumptions that lower accounting reserves [9]. - The remaining margin's calculation under the current CGAAP is locked, and changes in the present value of amortization carriers are minimally affected by the 750-day curve changes [10]. - The operational deviations, excluding policy cancellations, do not impact the remaining margins of existing policies, while mortality rate deviations have a negligible effect [12]. Group 3: Impact of Surrender Rates on Remaining Margins - Different companies have varying assumptions regarding surrender rates for mainstream products, significantly affecting their remaining margins [14]. - For example, a comparison of surrender rates of 1% versus 5% shows that the remaining margins can be nearly doubled under lower surrender rate assumptions [15]. - Some companies have accumulated considerable remaining margins through the sale of low-priced long-term critical illness insurance, but their claims ratios have exceeded pricing assumptions, leading to potential future losses [16]. Group 4: Remaining Margins Data - The remaining margins for major life insurance companies are presented, showing fluctuations from 2022 to 2024. For instance, 平安人寿's remaining margin is projected to decrease from 8,944 million in 2022 to 7,890 million in 2024, a decline of 1,054 million [17][19].

Core Viewpoint - Goldman Sachs has adjusted its future profit forecasts for China Life (02628) based on the company's third-quarter performance, highlighting better-than-expected investment returns and a positive outlook for 2026 [1] Financial Performance - The net profit forecast for the full year has been raised by 69% due to strong investment returns in the last quarter [1] - The net profit forecasts for 2026 and 2027 have been increased by 7% each, reflecting enhanced premium inflows and an expanded investment portfolio [1] Premium and Valuation Adjustments - The first-year premium forecasts for 2025 to 2027 have been raised by 7% to account for improved sales channels in the banking and insurance sectors [1] - The book value forecasts for 2025 to 2027 have been adjusted upwards by 5% to 7% [1] Dividend and Target Price Changes - The per-share dividend forecast has been increased by 10%, with the annual dividend expected to grow by 23% year-on-year, surpassing the previous estimate of 12% growth [1] - The target price for China Life has been raised from HKD 22.5 to HKD 24.5, while maintaining a "Neutral" rating [1]