China Life(SH:601628) Tianfeng Securities·2025-03-27 12:42Investment Rating - The investment rating for the company is "Buy" with a 6-month outlook maintained [7]. Core Views - The company achieved a net profit attributable to shareholders of 106.9 billion yuan in 2024, representing a year-on-year increase of 109% [1]. - The embedded value (EV) reached 1.4 trillion yuan, up 11.2% year-on-year, while the new business value (NBV) was 33.7 billion yuan, reflecting a 24% increase on a comparable basis [1]. - The first-year premium income was 119.1 billion yuan, showing a growth of 5.8% year-on-year [1]. Individual Insurance Channel - The proportion of long-term premium products continues to rise, optimizing the liability structure. The first-year premium income was 100.2 billion yuan, up 9.2% year-on-year, with ten-year and above premiums at 56.6 billion yuan, increasing by 14.3% [2]. - The growth rate of value outpaced the premium growth rate, with NBV increasing by 18.4% on a comparable basis, indicating significant results from channel transformation [2]. - The workforce size remained stable at 615,000, with a slight decrease of 19,000 from the previous year, while productivity improved with a 15% year-on-year increase in monthly per capita first-year premium income [2]. Bancassurance Channel - The bancassurance channel experienced a slight decline, with first-year premium income at 18.8 billion yuan, down 9.4% year-on-year, attributed to sales pressure from the "reporting and operation integration" initiative [3]. Investment of Insurance Funds - The total investment income reached 308.3 billion yuan, a significant increase of 138% year-on-year, with an investment yield of 5.50%, up 2.93 percentage points [4]. - The company increased its bond allocation significantly, with bonds accounting for 59.04% of the total investment, while stock allocation was 7.58% [4]. - The fair value changes resulted in a profit of 118.2 billion yuan, compared to only 4.2 billion yuan in the same period last year [4]. Accounting Treatment - The company reduced its allocation to profit and loss (PL) and increased its allocation to other comprehensive income (OCI) bonds, with OCI bonds now making up 52.32% of the portfolio [5]. - The report suggests a cautious adjustment of the net profit forecast for 2025-2027 to 107.7 billion, 108.2 billion, and 109.9 billion yuan respectively [5].