中国人寿(02628) - 2025 - 中期财报

Preliminary Information Key Operating Highlights 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 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 Chairman's Address 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] - 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] - New business value for the first half of the year reached RMB 28.546 billion, achieving rapid growth[16] - Net profit attributable to company shareholders was RMB 40.931 billion, a year-on-year increase of 6.9%[16] - 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] - 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] - 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] - 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] - Investment assets grew by 7.8% from the beginning of the year, with good investment income performance[19] - 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] - Maintained an A-class rating in the comprehensive risk rating of insurance companies for 28 consecutive quarters[21] Management Discussion and Analysis Business Overview 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] - 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] - Total sales force numbered 641,000 people, maintaining a leading position in sales team size[25] - 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] - The 14-month policy persistency rate reached 92.10%, a year-on-year increase of 0.6 percentage points[26] - 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] - Total assets and investment assets both exceeded RMB 7 trillion, reaching RMB 7.29 trillion and RMB 7.13 trillion respectively[26] - Net profit attributable to company shareholders was RMB 40.931 billion, a year-on-year increase of 6.9%[27] Insurance Business Analysis 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] - Embedded value as of June 30, 2025, was RMB 1,477.827 billion, an increase of 5.5% from December 31, 2024[32] Total Premium Data 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 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 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] - Renewal premiums were RMB 326.563 billion, a year-on-year increase of 10.4%[39] - First-year regular premiums for ten years and above were RMB 30.280 billion, accounting for over 45% of first-year regular premiums[39] - Participating insurance (dividend-paying insurance) accounted for over 50% of first-year regular premiums in the individual agency channel[39] - 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] - The individual agency sales force numbered 592,000 people, with an increase in high-quality agents by 27.6% year-on-year[41] Bancassurance Channel 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] - New policy premiums reached RMB 35.873 billion, a year-on-year increase of 111.1%[42] - First-year regular premiums reached RMB 17.032 billion, a year-on-year increase of 34.4%[42] - Per capita productivity of bancassurance customer managers significantly increased by 51.8% year-on-year[42] Group Insurance Channel 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] - The comprehensive cost ratio for short-term insurance in the group insurance channel significantly decreased, effectively improving efficiency[45] - 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] Other Channels 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] - Participated in undertaking over 200 critical illness insurance projects, 70 long-term care insurance projects, and 140 city-customized commercial medical insurance projects[47] Internet Insurance Business 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] Insurance Product Analysis 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] - 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] - 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] - 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] “Insurance + Services” Ecosystem Development 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 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] - Guangfa Bank acted as an agent for the company's bancassurance first-year regular premiums totaling RMB 1.302 billion[52] - Synergistic sales of pension insurance subsidiary business reached RMB 8.876 billion[52] Big Health and Big Elder Care Ecosystem Development 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] - 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] Investment Business Analysis 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] - The allocation ratio of stocks and funds (excluding money market funds) increased from 12.18% at the end of 2024 to 13.60%[57] - In the first half of 2025, net investment income reached RMB 96.067 billion, with a net investment yield of 2.78%[59] - Total investment income reached RMB 127.506 billion, with a total investment yield of 3.29%[59] Investment Asset Status 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] Investment Income 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 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] - Debt-type financial products with external AAA ratings exceeded 99%[60] Significant Investments 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] Digital and Intelligent Operations Services 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] - The new version of the smart customer service robot achieved an answer accuracy rate of over 95%[63] - 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] - 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] Special Analysis 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 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 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 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 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] Cash Flow Analysis 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] - As of the end of this reporting period, the company's time deposits amounted to RMB 457.234 billion[77] Sources of Liquidity 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] - As of the end of this reporting period, cash and cash equivalents amounted to RMB 119.643 billion[77] - As of the end of this reporting period, the company's time deposits amounted to RMB 457.234 billion[77] Uses of Liquidity 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] - The company believes that its liquidity is sufficient to meet current cash needs[79] Consolidated Cash Flow 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 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] - The decrease was mainly due to the growth in equity asset allocation scale and market interest rate fluctuations[85] Disposal of Significant Assets and Equity 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] Core Competitiveness Analysis 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] Major Controlled and Invested Companies 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] Acquisition and Disposal of Subsidiaries during the Reporting Period 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] Structured Entities Controlled by the Company 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] Risk Management 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] - 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] - 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] - 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] Future Outlook 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] - 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] - 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] Industry Landscape and Trends 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] - 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] - 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] Company Development Strategy and Business Plan 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] - Strengthen digital empowerment and application, earnestly protect consumer rights and interests, and firmly guard the bottom line of risk prevention and control[96] Potential Risks 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] - 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] - 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] Embedded Value Background 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] - 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] - 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] Definition of Embedded Value and Half-Year New Business Value 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] - "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][107] - 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] Preparation and Review 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] - KPMG Advisory (China) Limited reviewed the company's embedded value and half-year new business value[105] Assumptions 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] Summary of Results 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 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 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 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] - 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] - 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] Significant Matters Significant Litigation and Arbitration Matters 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] Significant Related Party Transactions 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] - 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] - The company established a partnership to invest in infrastructure securities investment funds, with a subscribed capital of RMB 3.5 billion[136] - The company established a partnership to invest in equity related to the silver economy industry, with a subscribed capital of RMB 2 billion[137] - The company established a partnership to invest in equity of nuclear power enterprises, with a subscribed capital of RMB 1.2 billion[138] Continuing Connected Transactions 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] - 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] Insurance Business Agency Agreement 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] - 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] Insurance Sales Business Framework Agreement 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] - 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] Insurance Fund Entrusted Investment Management Agreement 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] - 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] - 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] Company's Alternative Investment Entrusted Management and Operation Service Agreement with China Life Investment Holding Company 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] - 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] - The contracted amount for newly entrusted investment management assets was RMB 21.51973 billion[129] Company's Insurance Fund Investment Management Cooperation Framework Agreement with China Life Capital Company 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] - 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] - China Life Capital Company, as the general partner or manager of the fund products, collected management fees totaling RMB 80.63 million[130] Framework Agreement with China Life AMP Asset Management 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] - 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] - 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][135] Other Significant Related Party Transactions 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] - 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] - 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] Purchase, Sale or Redemption of Company Securities 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] - As of the end of this reporting period, the company held no treasury shares[141] Significant Contracts and Their Performance 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] - 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] - 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] Pension Plans The company's full-time employees participate in government-supported basic social old-age insurance and enterprise annuity plans, with monthly contributions made t