(March 26): China Life Insurance Co said profit jumped 109% last year as a rally in the nation’s stock market bolstered investment returns and its premiums income expanded.

Net income rose to RMB106.9 billion (RM65.18 billion) from RMB51.2 billion a year earlier, the Beijing-based company said in a Shanghai stock exchange filing Wednesday. The increase was smaller than an increase between 122% and 144% it forecast in a preliminary filing in January and compares with a 174% surge in the first nine months.

A 15% rally in the CSI 300 Index last year boosted the value of Chinese insurers’ stock holdings with China Life benefiting more due to higher equity exposure. The insurer’s new business value also continued to expand as the industry quickened sales of savings products thanks to improved appeal in an environment of low interest rates.

Total investment yield jumped by almost three percentage points to 5.5%, according to the filing. Fair-value gains on investments surged more than 27 times to RMB118 billion while impairments shrank.

New business value, which gauges the profitability of new life policies sold, rose 24.3% last year, slowing from a 25% increase in the first nine months. Total premiums rose 5%.

Rival Ping An Insurance (Group) Co last week reported a 48% gain in net income even though the results missed analyst estimates as the economic slowdown led to higher-than-expected losses at its asset management business.

China Life fell 0.4% to HK$15.6 (RM8.88) in Hong Kong trading before the announcement. The shares have gained 6.3% this year.

Uploaded by Arion Yeow