Core Viewpoint - China Life Insurance has reported strong mid-year results for 2025, showcasing its resilience and strategic initiatives in a complex market environment, positioning itself as a leader in the insurance industry [1][2]. Financial Performance - Total premium income reached 525.088 billion yuan, a year-on-year increase of 7.3%, marking the highest level for the same period in history and the fastest growth in five years [1]. - Total investment income was 127.506 billion yuan, up 4.2% year-on-year [1]. - Net profit attributable to shareholders was 40.931 billion yuan, reflecting a 6.9% increase [1]. - As of June 30, total assets and investment assets both exceeded 7 trillion yuan, with a solvency ratio of 190.94% [1]. Strategic Initiatives - The company emphasizes three proactive strategies: 1. Strategic Proactivity: Focus on asset-liability management and multi-channel development to enhance resilience [3]. 2. Transformation Proactivity: Continuous improvement in cost efficiency, product diversification, and marketing reforms [3]. 3. Development Proactivity: Achieving a market share increase alongside premium growth [3]. Future Development Plans - The company will focus on three key areas for the second half of the year: 1. Enhancing product offerings in the pension, health, and wealth management sectors [4]. 2. Emphasizing long-term and cross-cycle operations for stable value growth [4]. 3. Strengthening core competitiveness through cost reduction and efficiency improvements [4]. Market Outlook - The company remains optimistic about the future of the life insurance industry, citing strong economic fundamentals and significant market potential [6]. - Key factors supporting this outlook include: 1. Large development space due to a population exceeding 1.4 billion and increasing disposable income [6]. 2. High demand for insurance products in health, pension, and wealth management sectors [6]. 3. Strong policy support from the government for the insurance industry [6]. Investment Strategy - The company has increased its equity investment scale by 150 billion yuan in the public market and has invested 35 billion yuan in the Honghu Fund [7]. - As of June 30, investment assets totaled 7.13 trillion yuan, with a notable increase in equity investment returns [7]. - The company maintains a balanced investment approach, focusing on sectors like technology innovation and high-dividend stocks for long-term returns [8][9].

Core Viewpoint - China Life Insurance has reported strong mid-year results, showcasing its resilience and strategic initiatives in a complex market environment, positioning itself as a leader in the insurance industry [2][4]. Financial Performance - In the first half of the year, China Life's total premium reached 525.088 billion yuan, a year-on-year increase of 7.3%, marking the highest level for the same period in history and the fastest growth in five years [2]. - The total investment income was 127.506 billion yuan, up 4.2% year-on-year [2]. - The net profit attributable to shareholders was 40.931 billion yuan, reflecting a 6.9% increase [2]. - As of June 30, the company's total assets and investment assets both exceeded 7 trillion yuan, with a solvency ratio of 190.94% [2]. Strategic Initiatives - The chairman emphasized three proactive strategies: strategic initiative, transformation initiative, and development initiative [4][5]. - The company has focused on cost reduction, efficiency improvement, product diversification, and marketing system reform [4][5]. - The proportion of floating products in new business has increased to over 40% [4]. Market Outlook - The company aims to tap into growth areas in pension, health, and wealth management, optimizing product offerings and enhancing insurance application scenarios [6]. - It emphasizes long-term and cross-cycle operations, focusing on stable value growth alongside reasonable premium growth [6]. - The company plans to strengthen its core competitiveness through intensive development and technological empowerment [6]. Response to Regulatory Changes - In response to the adjustment of predetermined interest rates, the company has established a comprehensive management system to adapt quickly, expecting limited impact on overall operations [8]. - The company remains optimistic about the long-term development of the life insurance industry, supported by favorable economic conditions and significant market potential [8]. Investment Strategy - The investment strategy includes solidifying core asset allocations while actively pursuing equity investments and alternative assets [11]. - As of June 30, the investment assets totaled 7.13 trillion yuan, with equity investment increasing significantly [11]. - The company has increased its public market equity scale by 150 billion yuan and has invested 35 billion yuan in the Honghu Fund [11]. A-Share Market Outlook - The company maintains an optimistic outlook for the A-share market in the second half of the year, focusing on sectors such as technology innovation and advanced manufacturing [12][13]. - The investment strategy will prioritize stable asset allocation and optimizing equity structure, particularly in high-quality dividend stocks [13]. Hong Kong Stock Market - The Hong Kong stock market remains a valuable component of the company's equity investment strategy, with significant gains observed in the first half of the year [15]. - The company plans to continue its investment operations in the Hong Kong market, capitalizing on favorable conditions [15].

Core Viewpoint - The long-term economic fundamentals in China remain strong, providing a solid foundation for the sustainable development of the financial and insurance industry [1] Group 1: Strategic Focus for the Second Half - The company aims to align its operations and services with customer needs, focusing on potential growth areas in elderly health, wealth management, and optimizing product offerings [1] - The company emphasizes long-cycle and cross-cycle management, prioritizing reasonable growth in premium scale while focusing on value strategy for long-term stability [1] - The company plans to enhance its core competitiveness through cost reduction, marketing system reform, health and wellness ecosystem development, and technology empowerment [1] Group 2: Commitment to High-Quality Development - The company will actively seize opportunities and prioritize efficiency, long-term strategies, and risk prevention in its operations [1] - The company intends to deepen reforms and innovations, strengthen asset-liability management, and promote high-quality development to achieve new results [1]

Core Insights - The company achieved significant growth in 2024, with total insurance premium income reaching 170.5 billion yuan, a year-on-year increase of 2.8% [1] - Total assets grew to 1.69 trillion yuan, up 20.6% year-on-year, and net profit attributable to shareholders surged to 26.2 billion yuan, an increase of 201.1% [1] - New business value (NBV) more than doubled to 6.3 billion yuan, with first-year premium income rising by 15.6% to 27.2 billion yuan [1][2] Business Performance - The company reported a total premium income of 170.5 billion yuan, with a 75% contribution from renewal premiums [1] - The stock price increased nearly 70% in 2024, reflecting positive market sentiment towards the company's performance [1] Risk Management - The company employs a "three balances" strategy to mitigate interest spread loss risks, balancing traditional and floating yield products, protection and savings products, and existing and new business [3][4] - The management believes that current asset allocation can cover liability costs, indicating no immediate interest spread loss risk [2] Investment Strategy - The investment scale exceeded 1.6 trillion yuan, with a total investment return rate of 5.8% and a comprehensive investment return rate of 8.5%, significantly contributing to profit growth [6] - The company focuses on long-term, value-based investments, diversifying investment strategies to capture new economic opportunities [7][8] Health and Elderly Care Ecosystem - In 2024, the company expanded its health and elderly care services, launching various service brands and establishing a comprehensive customer service ecosystem [10] - The company aims to enhance its core competitiveness in health and elderly care by building a nationwide and overseas network of quality care projects [11] Dividend Policy - The company plans to distribute a cash dividend of 1.99 yuan per share, totaling 6.208 billion yuan, with a dividend payout ratio exceeding 30% of net profit [12] - Since its listing in 2011, the company has distributed over 35.9 billion yuan in cash dividends, maintaining a minimum annual dividend rate of 30% since 2016 [12]