Net income China Life Insurance Co. fell 33% to 16.72 billion Yuan in January-September period
HONG KONG- On Thursday, China Life Insurance Co. has said that third-quarter net profit fell 46% year-on-year due to lower premium income and losses from securities-trading investments. China’s largest insurance company said that net income for the three months ended September 30, amounting to 3.75 billion Yuan ($ 589 million), down from 6.91 billion Yuan a year earlier, according to Chinese accounting standards.
Insurance companies have noted that the fair value losses of 487 million Yuan from equity investments, compared with a fair value profit of 515 million Yuan a year earlier, in line with a decrease of 15% in the Shanghai Composite Index in the period from July to September. That’s because the performance of China Life is very dependent on investment income, making it more sensitive to changes in market share from rival Ping an Insurance (Group) Co. of China Ltd.
On Wednesday, Ping An as the largest life insurer in China reported that 44% decline in third quarter net profit to 1.76 billion Yuan for one-time charges associated with the takeover of Shenzhen Development Bank Corp.
Excluding the costs so that Ping An’s net profit for third quarter up 18%. China Life has a share of about 40% of the national life insurance market is also said that gross written premiums and policy fees fell 6% to 67.92 billion Yuan in the third quarter from 72.54 billion Yuan in the prior year period. Therefore, China Life net profit down 33% to 16.72 billion Yuan in January-September period.
