China Life(601628) 申万宏源·2024-11-05 03:41Investment Rating - The report maintains a "Buy" rating for China Life Insurance [2][5]. Core Insights - China Life Insurance reported a significant increase in net profit for the first three quarters, achieving a year-on-year growth of 173.9% to 1,045.23 billion yuan, driven by a recovery in the stock market and substantial investment returns [2]. - The company's new business value (NBV) growth exceeded expectations, with a year-on-year increase of 25.1%, indicating a solid improvement in agent scale and sales structure [3]. - The total investment asset scale reached 6.36 trillion yuan, reflecting a 12.3% increase from the beginning of the year, with notable performance in equity markets contributing to profit growth [4]. Summary by Sections Financial Performance - For Q3, the net profit reached 662.45 billion yuan, marking a year-on-year increase of 1,767.1% [2]. - The total investment income for the first three quarters rose by 152.4% to 2,614.19 billion yuan, with fair value changes contributing significantly [2][4]. - The annualized net investment yield was reported at 3.26%, while the total investment yield was 5.38% [4]. Business Growth - New single premium growth turned positive, with a year-on-year increase of 0.4% to 1,975.09 billion yuan, and a substantial quarterly increase of 46.4% in Q3 [3]. - The proportion of first-year premiums for ten-year and above policies increased by 3.9 percentage points to 26.6% [3]. - The sales force reached 694,000 agents, with a quarter-on-quarter growth of 1.3% [3]. Profit Forecast - The report projects net profits of 1,187 billion yuan, 1,231 billion yuan, and 1,443 billion yuan for 2024, 2025, and 2026 respectively, reflecting a significant upward revision from previous estimates [5][6].