2025-10-16 13:07Summary of China Life Insurance Conference Call Company Overview - Company: China Life Insurance (2628.HK) - Market Cap: HK$609,952 million (approximately US$78,376 million) [6] Key Industry Insights - Sales Momentum: Robust sales momentum was observed in July and August 2025, exceeding management expectations prior to a product shift in September 2025 [3] - Product Strategy: China Life has initiated preparations for 1Q26E sales with a diversified product strategy, focusing on participating pension products and endowment products [2] Financial Performance - 3Q25 Sales: New business sales in 3Q25 were satisfactory, with a noted decline in premium growth year-over-year in September 2025 due to the product shift, although the decline was moderate compared to 1Q25 [3] - Investment Returns: Overall investment returns improved year-over-year in 3Q25, benefiting from growth-style stock investments. The uptick in interest rates is expected to lower insurance service expenses, supporting net profit [5] Product Focus - Mainstream Products: The participating pension product was promoted as the flagship product in 3Q25, with a focus on long-term policies with a premium payment term of 10 years or more [4] - Product Mix: The product mix for agency and bancassurance channels was reported as >50% and <40%, respectively [4] Strategic Developments - Bancassurance Channel: The bancassurance channel has gained higher strategic significance, expanding partnerships from six key banks to a broader "6+10+N" strategy, now including 104 bank partners [6][8] - Future Focus: The company plans to deepen cooperation with joint-stock banks for bancassurance development [8] Valuation and Risks - Target Price: The target price is set at HK$27.70, implying a 2026E price/embedded value multiple of 0.43x [9] - Risks: Key risks include sharp equity market corrections, macroeconomic slowdowns in China, stringent regulations on insurance agents, falling bond yields, and increased competition [10] Expected Returns - Expected Share Price Return: 28.4% [6] - Expected Total Return: 32.2% [6] - Expected Dividend Yield: 3.8% [6]