China Life Insurance Company (2628) Q1 2020 earnings summary

Executive summary

• Core insurance businesses and new business value grew in Q1 2020 despite COVID-19 disruption; leading market position and positive development momentum were maintained.

• Priorities for the year remain stable new business value growth, stronger sales-force quality and scale, technology empowerment, service upgrades, and risk prevention.

Financial highlights

• Insurance business revenue reached RMB 307.8 billion, up 13% YoY; regular premiums were RMB 76.1 billion, up 13.9%.

• Renewal premiums were RMB 198.3 billion, up 11.2%; short-term insurance premiums were RMB 32.8 billion, up 23.9%.

• New business value rose 8.3% YoY; net profit attributable to equity holders was RMB 17.1 billion, down 34.4%.

• Gross investment income was RMB 45.5 billion; net investment income was RMB 38.1 billion.

Outlook and guidance

• Full-year goal is stable new business value growth; management said quarterly growth may vary with customer demand and pledged flexible responses to changing conditions.

• Business improved from March and continued to improve in April, but management said it was too early to predict a V- or U-shaped recovery for the year.

• Online and offline recruitment and sales will be combined; new agents recruited online are expected to undergo offline retraining after the outbreak abates.