China Life(02628)2024-03-27 11:00Financial Performance - Total revenue for 2023 was RMB 344,746 million, a decrease of 7.0% from RMB 370,861 million in 2022[7]. - Pre-tax profit for 2023 was RMB 44,576 million, down 36.4% from RMB 70,060 million in 2022[7]. - Net profit attributable to shareholders for 2023 was RMB 46,181 million, a decline of 30.7% compared to RMB 66,680 million in 2022[7]. - Earnings per share (basic and diluted) for 2023 was RMB 1.63, down 30.7% from RMB 2.36 in 2022[7]. - Return on equity (ROE) for 2023 was 9.65%, a decrease of 7.61 percentage points from 17.26% in 2022[7]. - The company's total investment return for 2023 was 2.43%, down 1.47 percentage points from 3.90% in 2022[7]. - The total comprehensive income attributable to shareholders for 2023 was RMB 24,440 million, compared to a loss of RMB 2,577 million in 2022[53]. - The total financial expenses and credit impairment losses for 2023 amounted to RMB 5,308 million, compared to RMB 4,863 million in 2022[52]. Assets and Liabilities - Total assets as of December 31, 2023, reached RMB 5,802,086 million, an increase of 15.8% from RMB 5,010,068 million in 2022[7]. - Total liabilities as of December 31, 2023, amounted to RMB 5,315,052 million, up 14.7% from RMB 4,635,095 million in 2022[7]. - Shareholders' equity attributable to the company as of December 31, 2023, was RMB 477,093 million, an increase of 30.3% from RMB 366,021 million in 2022[7]. - The company's total liabilities to equity ratio improved to 11.1 in 2023 from 12.4 in 2022, indicating a stronger equity position relative to liabilities[80]. Premiums and Insurance Business - Total premium income was RMB 641.38 billion, an increase of 4.3% year-on-year, achieving a historical high[12]. - The total premium income for life insurance business reached RMB 512.62 billion in 2023, a year-on-year increase of 5.6%[17]. - The first-year premium income for life insurance was RMB 130.84 billion, up from RMB 105.29 billion in 2022, reflecting a significant growth[16]. - The individual insurance segment generated total premiums of RMB 501.58 billion, an increase of 1.9% year-on-year[18]. - The new business value for the individual insurance segment was RMB 34.65 billion, representing a year-on-year increase of 10.4%[20]. Investment Activities - The company achieved a net investment income of RMB 185,866 million in 2023, with a net investment yield of 3.70%[35]. - Total investment income for 2023 was RMB 123,082 million, resulting in a total investment yield of 2.43%[34]. - The company reported a decrease in total investment income from RMB 176,277 million in 2022 to RMB 123,082 million in 2023[34]. - The company maintained a strong asset quality, with over 98% of credit bonds rated AAA and over 99% of credit-type financial products rated AAA[36]. Dividends and Shareholder Returns - The board proposed a cash dividend of RMB 4.30 per 10 shares for the 2023 fiscal year, subject to shareholder approval[2]. - The company has cumulatively distributed over RMB 190 billion in dividends since its listing, emphasizing its commitment to investor returns[5]. - The total cash dividends received from China Unicom for the mid-year 2023 distribution amounted to RMB 254 million[62]. Governance and Strategy - The company aims to enhance its governance structure and internal mechanisms to align with national development goals and improve financial service quality[5]. - The company is focusing on five key areas: technology finance, green finance, inclusive finance, pension finance, and digital finance, to drive future growth[5]. - The company plans to expand its market presence and invest in new product development to drive future growth[90]. Digital Transformation and Efficiency - In 2023, the company achieved a 24.9% replacement rate of manual operations in six operational scenarios through the "digital underwriter" initiative, enhancing operational efficiency by over 27.0% in underwriting, policy maintenance, and claims areas[47]. - The average claims processing time was reduced to 0.38 days, with a claims approval rate of 99.7%, and the number of "critical illness one-day claims" increased by 31.9% year-on-year[47]. - The company’s digital risk control system, based on big data analysis, has improved the identification and monitoring of key business risks[46]. Market Position and Recognition - China Life Insurance achieved a historic high in total premiums for 2023, with a double-digit growth in new business value, maintaining a leading position in the industry[3]. - The company has been recognized as a "2023 Forbes China ESG Innovation Enterprise," reflecting its commitment to sustainable development[3]. Future Outlook - The company anticipates that its funding will meet insurance business expenditures and new investment project needs in 2024, with plans for financing arrangements based on capital market conditions[51]. - The company plans to focus on customer-centric strategies in 2024, aiming for stable growth and value enhancement while ensuring risk prevention and service improvement[50].