Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - The profitability of the insurance industry is determined by asset allocation ratios, liability costs, and premium growth. China Life's increased allocation to equities and stable premium growth are expected to lead to improvements in both profitability and scale [2][12]. - The concept of "deposit migration" is logical for the insurance sector, and with the industry becoming more concentrated, there is optimism for long-term profitability improvement and valuation reassessment [2]. - Short-term market beta is a primary disturbance, but as a pure life insurance company, China Life has significant sensitivity and elasticity, which will lead to substantial benefits when beta rebounds. The current company valuation is 0.69 times PEV [2][12]. Summary by Sections Financial Performance - In 2025, the company achieved a net profit attributable to shareholders of 154.08 billion yuan, a year-on-year increase of 44.1%. The new business value reached 45.75 billion yuan, up 35.7% year-on-year [6]. Investment Strategy - The company significantly increased its equity asset allocation, with total investment yield reaching 6.09%, up 0.59 percentage points year-on-year. The scale of public market equity investments exceeded 1.2 trillion yuan, increasing by over 450 billion yuan from the beginning of the year, accounting for 97.8% of operating cash flow. The stock allocation ratio rose from 7.6% at the end of 2024 to 11.3% [12][13]. New Business Growth - The new business value for 2025 was 45.75 billion yuan, with a year-on-year growth of 35.7%. The core driver was the improvement in new business value rate, supported by cost control and the deepening of the industry policy [12][13]. - The individual insurance channel saw a new single premium growth of 9.3%, improving from 0.6% in the first half of the year. The proportion of first-year premiums for ten-year and above policies reached 44.9% [12][13]. Channel Performance - The individual insurance, group, and bancassurance channels saw new single premium growth rates of -8.1%, -5.1%, and 95.7%, respectively. The bancassurance channel showed strong overall performance, with total premiums exceeding 100 billion yuan [12][13].

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].