(Jan 24): China Life Insurance Co, the nation’s largest insurer by market value, said 2024 profit may have jumped as much as 144% from the previous year as the country’s stock rally boosted investment returns.
 
Preliminary net income is estimated to rise between 122% and 144% to a range between 102.4 billion yuan (RM62.05 billion) and 112.6 billion yuan, the Beijing-based company said in a statement to the Hong Kong stock exchange on Friday. 

The insurer said it seized market opportunities to “conduct cross-cycle allocation” and optimised its equity investment structure, allowing it to record the higher returns. 

A 15% rally in the CSI 300 Index last year, spurred by the government’s stimulus measures, bolstered Chinese insurance companies’ stocks holdings, with China Life benefitting more due to its higher exposure to equities. The insurers’ profits may double on average for the year if these holdings rise 25% or more, according to Bloomberg Intelligence analyst Steven Lam.

The government this week asked state-controlled insurers such as China Life to invest at least 30% of new premiums into stocks, and eased rules to encourage long-term investments, as officials seek to further stabilise the market. The measures should support insurers’ investments, especially life insurers, as they tend to favour high-dividend stocks that provide higher returns than government bonds, according to Lam.

China Life rose 3% to HK$14.48 (RM8.25) in Hong Kong trading before the filing, trimming this year’s loss to 1.4%. The shares gained 45% last year.

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