Xin Lang Cai Jing·2025-08-29 06:33Core Viewpoint - China Life Insurance reported its 1H25 performance, meeting expectations with a net profit of 26.53 billion, reflecting a year-on-year increase of 16.9% [1] Group 1: Financial Performance - The company's net profit attributable to shareholders reached 26.53 billion, up 16.9% year-on-year, driven primarily by the property and health insurance segments [1] - The combined ratio (COR) improved to 95.3%, a decrease of 1.5 percentage points year-on-year, with underwriting profit at 11.7 billion, up 53.5% year-on-year [1][2] - The company declared a dividend per share (DPS) of 0.075 yuan, an increase of 19% year-on-year, indicating a focus on shareholder returns [1] Group 2: Insurance Segment Performance - The property insurance segment's net profit was 25.05 billion, up 39% year-on-year, while life and health insurance profits were 6.86 billion and 5.13 billion, showing a year-on-year change of -30.9% and +49.6% respectively [1] - The COR for the property insurance segment improved due to reduced disaster risks and effective cost management, with total premiums reaching 323.3 billion, a 3.6% increase year-on-year [2] Group 3: New Business Value (NBV) Growth - The NBV for life and health insurance was 4.98 billion and 3.84 billion, reflecting year-on-year growth of 71.7% and 51% respectively, with significant contributions from both channels [3] - The NBV margin (NBVM) improved, supporting the growth of NBV, driven by ongoing demand for health insurance and effective sales strategies [3] Group 4: Investment Performance - The annualized net and total investment returns were 3.7% and 5.1%, with total investment returns benefiting from increased allocations to government bonds and market appreciation [3] - The stock investment scale reached 94.6 billion, a 57% increase from the beginning of the year, with a balanced equity allocation [3] Group 5: Investment Outlook - The company maintains a strong buy rating, anticipating accelerated profit growth in 2H25 due to further improvements in COR and investment returns [4] - Projected net profits for 2025-2027 are 50.2 billion, 54.9 billion, and 59.2 billion, with year-on-year growth rates of 17.2%, 9.3%, and 7.8% respectively [4]