Summary of Key Performance in the First Half of 2026
In the first half of 2026, China Life Insurance achieved remarkable results: its net profit increased by 228.6% year-on-year, and core indicators such as new policy premiums and new business value reached record highs. However, what is even more noteworthy is the company's ability to build resilience across economic cycles through the coordinated operation of its asset and liability sides (investment and insurance sales). The company is also actively contributing to national strategies and plans to further consolidate its growth momentum through six key initiatives in the coming period.
Asset Side: Market Recovery + Long-Term Strategy for Stable and Resilient Investment Returns
China Life Insurance earned 314.5 billion yuan from investments in the first half of the year, with a total investment return rate of 5.58% (2.29 percentage points higher than the same period last year). The reasons for this strong performance are as follows:
- Market Resilience: The domestic economy is steadily improving, and the equity market (stocks, etc.) has recovered, contributing to short-term gains.
- Long-Term Focus: The company adopts a long-term investment strategy, using funds intended for long-term returns. This includes investing in long-term bonds to stabilize returns, diversifying into stocks and alternative assets (such as infrastructure and technology innovation), as well as focusing on high-quality assets like AI and renewable energy stocks. This strategy allows the company to benefit from market gains while mitigating fluctuations, as long-term bonds and high-dividend stocks can provide stability even during market downturns.
Liability Side: A “Quality Revolution” in Insurance Sales, with Sustained Growth in New Business Value
The liability side refers to the insurance sales business, which is the foundation of an insurance company. China Life Insurance saw a 33.7% increase in new business value (the potential future earnings from new insurance policies) in the first half of the year, driven by improvements in product quality:
- Better Products: A larger proportion of policies (35.66%) have a duration of 10 years or more, which offer higher customer loyalty and more stable profits. The company has also reduced fixed costs and increased the presence of products with variable returns (linked to investments), reducing risk.
- Enhanced Channels:
- Individual insurance agents generated over 400 billion yuan in premiums, contributing 87.7% of new business value. The agent team is younger (with a higher proportion of agents under 45 years old) and more professional (a 55.9% increase in talent), and they sell a significant portion of long-term insurance policies.
- Bank-insurance partnerships generated a 12.4% increase in premiums, with improved capacity at branches and customer managers (a 37.1% increase in average productivity).
- Product Innovation: The company develops a variety of products tailored to customer needs (such as health and pension products) and integrates them with investments to make them more attractive.
Asset-Liability Synergy: Mutual Enhancement for Enhanced Risk Resistance
China Life Insurance's core competitiveness lies in the balanced combination of investment and insurance sales:
- Product-Investment Integration: Insurance products are designed to align with potential returns from investments. For example, long-term insurance policies are linked to long-term assets (such as infrastructure projects), ensuring better returns and lower risk.
- Duration Matching: The company matches the maturity of insurance liabilities (future payouts) with investment assets to avoid risks associated with mismatched durations. Its duration gap (the difference between the maturity of liabilities and investments) is relatively small compared to industry peers, providing strong protection against interest rate fluctuations.
- Sufficient Capital: The company has a solvency ratio of 197.78% (the regulatory minimum is 100%), indicating ample funds to manage risks and support both investment expansion and customer protection.
Contributing to National Development: Balancing Social Responsibility and Business Success
As a state-owned insurance giant, China Life Insurance aligns its business with national strategies:
- Social Welfare: It participates in the social security system, offering health and pension services, and provides risk protection for 147 million rural residents, helping them cope with disasters and medical expenses.
- Supporting the Real Economy: The company has invested 6 trillion yuan in the real economy, focusing on areas such as technology finance (1 trillion yuan) and high-quality growth sectors (540 billion yuan). It also manages the largest blind pool fund in China to support technology startups from their early stages.
Outlook for the Second Half of the Year: Six Initiatives to Maintain Growth
The second half of the year presents challenges, including a weak international economy and low domestic interest rates. China Life Insurance plans to focus on the following six areas:
1. Continuing to Support National Strategies: The company will continue to align its operations with national development goals.
2. Strengthening Resilience: It will enhance the synergy between its asset and liability operations.
3. Deepening Reform: The company will innovate in channels and products.
4. Leveraging Technology: It will use technology to improve efficiency, such as using AI for insurance sales and automated claims processing.
5. Improving Customer Experience: The company will enhance customer service.
6. Risk Management: It will maintain a high level of risk control to ensure customer protection.
In summary, the value of China Life Insurance lies not only in its short-term profits but also in its ability to generate stable long-term returns, resist risks, and contribute to society. This approach reflects the company's commitment to a long-term vision for sustainable success.