Summary of the Earnings Call for China Life Insurance Company Q3 2024 Company Overview - **Company**: China Life Insurance Company - **Event**: Q3 2024 Earnings Call - **Date**: Not specified in the document - **Participants**: Management team including President Li Mingguang, Vice Presidents Liu Hui and Bai Kai, Chief Actuary Hou Jing, and Financial Officer Yuan Ying Key Points Financial Performance - **Total Premiums**: Exceeded 600 billion RMB, reaching 608.2 billion RMB, a year-on-year increase of 5.1% [2] - **Renewal Premiums**: 410.7 billion RMB, up 7.5% year-on-year [2] - **New Business Premiums**: 197.5 billion RMB, a slight increase of 0.4% [2] - **First-Year Premiums**: 113.2 billion RMB, up 6.8% year-on-year [2] - **Ten-Year and Above First-Year Premiums**: 52.6 billion RMB, a significant increase of 17.7% [2] - **Short-Term Premiums**: 73.7 billion RMB, up 6.3% [2] - **Surrender Rate**: 0.74%, a decrease of 0.14 percentage points year-on-year [2] New Business Value - **New Business Value Growth**: Increased by 25.1% compared to the same period in 2023 [3] - **Sales Force**: Total sales personnel reached 694,000, with a stable and improving structure [3] - **Sales Channels**: New marketing models, such as the "Seed Plan," have shown initial success in 24 cities [4] Investment Performance - **Total Investment Income**: 261.4 billion RMB, a year-on-year increase of 15.2% [4] - **Net Investment Income**: 144.7 billion RMB, up 3.9% year-on-year [4] - **Total Assets**: 6.48 trillion RMB, with investment assets at 6.36 trillion RMB, reflecting growth of 11.7% and 12.3% respectively since the beginning of 2024 [4] - **Core Solvency Ratio**: 154.58%, with a comprehensive solvency ratio of 211.64% [4] Profitability - **Net Profit**: 104.5 billion RMB, a remarkable increase of 174% year-on-year [5] - **Historical Peaks**: Both total premiums and net profit have reached historical highs [5] Strategic Focus - **Customer-Centric Approach**: Emphasis on customer needs and risk management [5] - **Product Diversification**: Plans to enhance product offerings, particularly in response to market conditions [6] - **Long-Term Investment Strategy**: Focus on value investment and asset-liability matching [4][15] Market Conditions and Future Outlook - **Market Volatility**: Acknowledgment of the impact of market fluctuations on profitability and investment strategies [10][38] - **Dividend Policy**: Future dividends will consider business needs, solvency, and profitability levels [10][11] - **Product Structure Adjustments**: Plans to increase the proportion of participating and whole life insurance products in response to market demand [27][29] Risk Management - **Liability Management**: Comprehensive strategies to manage liability costs, with a projected decrease of 50 basis points in new business liability costs for 2025 [14] - **Investment Strategy**: Continued focus on equity investments while maintaining a balanced approach to risk [15] Additional Insights - **Sales Channel Integration**: Ongoing efforts to streamline sales processes and improve efficiency [17] - **Training and Development**: Continuous training for sales personnel to adapt to new product offerings and market conditions [19][34] Analyst Questions - **Product Structure and Risk Sales**: Inquiry about the current product structure and the proportion of risk products sold [6] - **Impact of Interest Rate Changes**: Discussion on how changes in interest rates affect product value and profitability [9] - **Long-Term Value Creation**: Emphasis on aligning shareholder returns with long-term value creation strategies [28] This summary encapsulates the key financial metrics, strategic initiatives, and market outlook discussed during the earnings call, providing a comprehensive overview of China Life Insurance Company's performance and future direction.

Investment Rating - The investment rating for China Life Insurance (601628) is maintained at "Buy" [1] Core Views - The report highlights that China Life's net assets have grown rapidly, and the "Seed Plan" is advancing faster than expected. The company's performance for the first nine months of 2024 (9M24) aligns with previous profit forecasts, driven by a significant rebound in total investment income after a period of low stock market fluctuations. The cumulative net profit attributable to shareholders for 9M24 increased by 173.9% year-on-year, and by 194.1% on a comparable basis [1][7][10] Summary by Relevant Sections Earnings Forecast and Valuation - The forecasted net profit attributable to shareholders for 2024, 2025, and 2026 is 86.2 billion, 38.4 billion, and 42.3 billion respectively, with a significant year-on-year growth rate of 308.2% for 2024 [1][13] - The expected new business value (NBV) for 2024 is 36.0 billion, with a growth rate of 8.9% [1] Key Investment Points - The report notes that the insurance service revenue for 9M24 increased by 15.7% year-on-year, outperforming peers due to improved contract service margins and cash flow from policy acquisition. The investment yield has turned positive, contributing significantly to net profit [1][10] - The cumulative new business value (NBV) for 9M24 accelerated, with a year-on-year growth of 25.1%, and a quarterly growth rate exceeding 50% for Q3 2024. The company achieved a new single premium of 197.5 billion, a slight increase of 0.4% year-on-year [1][10] Financial Performance - The total investment income for Q1 2024 saw a year-on-year increase of 152.4%, with a simple annualized total/net investment yield of 5.38%/3.26% [1][10] - The net assets at the end of the reporting period increased by 19.4% year-on-year to 566.7 billion, driven by profit release and positive contributions from other comprehensive income [1][10] Sales and Marketing Strategy - The total sales force at the end of the period was 694,000, showing a year-on-year decrease of 3.6% but a quarter-on-quarter increase of 1.3%. The company is actively implementing the "Seed Plan" in 24 cities, achieving initial success [1][10]

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company, with current prices at 41.88 RMB and 16.50 HKD respectively [2]. Core Insights - The company achieved a significant year-on-year profit growth of 174%, driven by improved investment performance [2]. - For the first three quarters of 2024, the company reported operating revenue of 427.18 billion RMB, a year-on-year increase of 54.8%, and a net profit attributable to shareholders of 104.52 billion RMB, up 173.9% [4][5]. - The annualized total investment return rate reached 5.4%, with a substantial increase in investment income driven by a rebound in the stock market [6]. Summary by Sections Revenue Performance - The company reported a total operating revenue of 427.18 billion RMB for the first three quarters of 2024, reflecting a 54.8% increase year-on-year [4]. - The net profit attributable to shareholders was 104.52 billion RMB, marking a 173.9% increase year-on-year [4]. Profitability and Investment Returns - The annualized net investment return rate was recorded at 3.3%, while the annualized total investment return rate was 5.4% [6]. - The investment income for the first three quarters was 261.42 billion RMB, a year-on-year increase of 152.4% [6]. Business Structure and New Business Value - The new business value (NBV) grew by 25.1% year-on-year, with a total new premium income of 197.51 billion RMB, reflecting a 0.4% increase [5]. - The first-year premium income for regular premium business was 113.18 billion RMB, up 6.8% year-on-year [5]. Sales Force and Marketing Strategy - The total sales force stood at 694,000, a decrease of 3.6% year-on-year, but showed a quarter-on-quarter increase of 1.3% [4]. - The company is optimizing its sales team structure, leading to improved performance metrics, including a 17.7% increase in monthly average first-year premium per person [4].

公司报告 | 季报点评 中国人寿（601628） 证券研究报告 中国人寿 24Q3 业绩点评：三季报利润弹性尽显，重 点关注权益走势带来的净利润边际变化 事件：公司 24Q3 单实现归母净利润 662.45 亿元，同比+1767.1%； 24 年前三季度实现归母净利润 1045.2 亿元，同比+173.9%。 投资端：债市股市大幅上涨带动投资收益释放，利率中枢持续下行新配 固收资产承压。 23 年前三季度，公司实现净投资收益 1447.1 亿，同口径同比+3.9%， 净投资收益率为 3.26%，较 23 年同期-0.55Pct；实现总投资收益 2614.2 亿元，同口径同比+152.4%，总投资收益率 5.38%，较 23 年 同期+2.57Pct。我们认为债券利率中枢持续下移压制净投资收益表现， 但债券票面价格上涨叠加三季度权益市场上行带动公司总投资收益大 幅提升，带动利润弹性释放。 保费收入及新业务价值：Q3 单季环比改善，个险人力企稳回升。 24 年前三季度，首年期交保费收入 1131.8 亿元，同比+6.8%（24H 同比-0.1%，增速提升 6.9Pct），Q3 单季改善显著；其中十年期及以 上首年 ...

F熄证券 非银金融/保险Ⅱ 公 司 研 究 权益持仓高充分受益股市回暖，人力规模和质效延续提升 中国人寿（601628.SH） 2024 年 10 月 31 日 投资评级：买入（维持） ——中国人寿 2024Q3 业绩点评 开 源 证 券 证 券 研 究 报 告 公司信息更新报告 | --- | --- | |-------------------------|-------------| | 日期 | 2024/10/30 | | 当前股价 ( 元 ) | 42.38 | | 一年最高最低 ( 元 ) | 48.40/25.09 | | 总市值 ( 亿元 ) | 11,978.58 | | 流通市值 ( 亿元 ) | 8,825.01 | | 总股本 ( 亿股 ) | 282.65 | | 流通股本 ( 亿股 ) | 208.24 | | 近 3 个月换手率 (%) | 4.05 | 股价走势图 -40% -20% 0% 20% 40% 60% 2023-10 2024-02 2024-06 2024-10 中国人寿 沪深300 数据来源：聚源 相关研究报告 《三季度业绩超预期，新准则下权益 弹性突出—中国 ...

证券研究报告 金融公司|公司点评|中国人寿（601628） 净利润增速显著提升，代理人数已企稳 回升 请务必阅读报告末页的重要声明 glzqdatemark1 2024年10月31日 证券研究报告 |报告要点 中国人寿发布 2024 年三季报，前三季度公司实现归母净利润 1045.23 亿元,相同口径下同比 增长 194.1%；NBV 同比增长 25.1%，增速继续提升。鉴于公司负债端具备较强的稳健性以及资 产端弹性更大，我们维持"买入"评级。 |分析师及联系人 SAC：S0590522100001 SAC：S0590524080001 刘雨辰 朱丽芳 请务必阅读报告末页的重要声明 1 / 5 金融公司|公司点评 glzqdatemark2 2024年10月31日 中国人寿(601628) 净利润增速显著提升，代理人数已企稳回升 | --- | --- | --- | |--------|----------------------|------------------| | | | | | 行 | 业： | 非银金融 / 保险Ⅱ | | | 投资评级： | 买入（维持） | | | 当前价格： | 42.3 ...

Investment Rating - Maintains an "Overweight" rating with a target price of CNY 60.71 per share, corresponding to a 2024 P/EV of 1.10x [3][7] Core Views - The company's net profit attributable to shareholders for the first three quarters of 2024 increased by 173.2% YoY, driven by a significant improvement in investment income due to the recovery of the equity market [5][7] - The New Business Value (NBV) met expectations, with a YoY increase of 25.1% in the first three quarters of 2024, supported by stable agent numbers and improved quality [7] - The investment asset scale grew steadily, reaching CNY 6.4 trillion by the end of Q3 2024, up 12.3% from the beginning of the year, with a total investment yield of 5.38% in the first three quarters, up 2.57 percentage points YoY [7] Financial Performance - The company's revenue for 2024E is projected to be CNY 445,527 million, a 29% increase from 2023A, with net profit attributable to shareholders expected to reach CNY 112,417 million, a 143% increase YoY [8] - Earnings per share (EPS) for 2024E is forecasted at CNY 3.98, with a return on equity (ROE) of 20% [8] - The company's total investment yield for 2024E is expected to be 6.5%, with a net investment yield of 3.6% [11] Business Highlights - The individual insurance channel achieved stable growth in agent numbers, with 641,000 agents by the end of Q3 2024, up 1.1% from the beginning of the year, and a 17.7% YoY increase in monthly per capita first-year premium [7] - The proportion of first-year premium with a term of 10 years or more reached 46.4% in the first three quarters of 2024, up 2.6 percentage points from the end of the first half [7] Valuation Metrics - The company's P/E ratio for 2024E is 10.65x, with a P/B ratio of 2.12x and a P/EV ratio of 0.77x [12] - The embedded value per share for 2024E is projected to be CNY 54.8, with a dividend yield of 1.2% [12]

Investment Rating - The report maintains a "Recommended" rating for China Life Insurance (601628) [1] Core Views - The company achieved a significant increase in net profit, reaching CNY 104.52 billion for the first three quarters of 2024, representing a year-on-year growth of 173.9% [1] - The new business value (NBV) increased by 25.1% compared to the same period in 2023, supported by a slight increase in new policies and improved value rates [1] - The company’s total investment assets reached CNY 6.36 trillion, with net and total investment returns of 3.26% and 5.38%, respectively, showing a mixed performance compared to the previous year [1] Financial Performance Summary - For the first three quarters of 2024, the company reported total premiums of CNY 608.25 billion, a year-on-year increase of 5.1%, with new policy growth turning positive at 0.4% [1] - The company’s investment income was significantly boosted by a rebound in the equity market, leading to a notable increase in total investment returns [1] - The report forecasts earnings per share (EPS) for 2024-2026 at CNY 3.86, CNY 3.17, and CNY 3.19, respectively, with a target price of CNY 53.96 for 2025 [1][2]

Investment Rating - The report maintains an "Outperform" rating for China Life Insurance (601628 SH) [1][3] Core Views - China Life Insurance achieved a record high net profit attributable to parent company of RMB 145 2 billion in the first three quarters, up 173 9% YoY [1] - The company's operating revenue reached RMB 4271 8 billion, a significant increase of 54 8% YoY [1] - Insurance service income under the new accounting standards grew 15 7% YoY to RMB 1578 5 billion, ranking first among listed insurers [1] - The company's product structure continues to optimize, with long-term insurance accounting for an increasing proportion [1] - The individual insurance channel has stabilized with 641 thousand agents, and the monthly per capita first-year regular premium increased by 17 7% YoY [1] - The company's investment income reached RMB 2614 2 billion, up 152 4% YoY, with a total investment yield of 5 38%, ranking first among listed insurers [1] Financial Performance - Total premium income reached RMB 6082 5 billion, up 5 1% YoY [1] - New business value increased by 25 1% YoY, with first-year regular premiums for 10 years and above accounting for 46 4% of total first-year regular premiums, up 4 3 percentage points YoY [1] - The company's OCI equity assets reached RMB 1514 4 billion, up 19 4% from the beginning of the year [1] - Fair value change gains and losses reached RMB 1476 6 billion, significantly contributing to revenue and profit [1] Financial Forecasts - The report raises EPS forecasts for 2024-2026 to RMB 1 51/1 93/2 30 per share (previously RMB 1 45/1 80/2 09 per share) [1] - P EV ratios are expected to be 0 94x/0 86x/0 79x for 2024-2026 [1] - Operating revenue is projected to grow at 8 39%/4 30%/4 26% in 2024-2026 [2] - Net profit attributable to parent company is expected to increase by 102 02%/27 96%/19 15% in 2024-2026 [2] - Embedded value per share is forecasted to grow at 3 90%/9 30%/8 62% in 2024-2026 [2] Industry Position - As the leader in China's life insurance industry, China Life Insurance demonstrates strong performance resilience [1] - The company continues to release transformation dividends on the liability side, benefiting the stabilization of core value indicators [1] - The company's transformation measures in product and business diversification are yielding results [1]

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