“The first brother of life insurance” China Life Insurance Company Limited(601628) 2021 annual report was released on March 24.
The annual report shows that China Life Insurance Company Limited(601628) achieved a net profit attributable to shareholders of 50.92 billion yuan in 2021, with a year-on-year increase of 1.3%; The board of directors of the company proposes to pay an annual cash dividend of RMB 0.65 per share (including tax).
China Life Insurance Company Limited(601628) said that the company’s overall operation was stable and its investment performance was good, and the discount rate assumption of traditional insurance reserve was updated according to the market information on the balance sheet date.
As of the closing on the 24th, China Life Insurance Company Limited(601628) reported 25.54 yuan / share, down 0.62%, with a market value of 606 billion yuan.
premium income increased by 1.0% year on year
The report shows that China Life Insurance Company Limited(601628) achieved a premium income of 618327 billion yuan in 2021, a year-on-year increase of 1.0%; The renewal premium was 442463 billion yuan, a year-on-year increase of 5.8%. As of December 31, 2021, the embedded value reached 1203008 billion yuan, an increase of 12.2% over the end of 2020. Affected by factors such as the epidemic situation and the slow release of insurance demand, the company achieved a new policy premium of 175864 billion yuan.
By business, the total premium of life insurance business in China Life Insurance Company Limited(601628) 2021 was 481311 billion yuan, an increase of 0.1% year-on-year; The total premium of health insurance business was 120609 billion yuan, a year-on-year increase of 4.8%; The total premium of accident insurance business was 16.407 billion yuan, a year-on-year decrease of 1.1%.
At present, the life insurance industry is facing the pain of transformation, China Life Insurance Company Limited(601628) is no exception. According to the annual report, as of the end of 2021, China Life Insurance Company Limited(601628) total sales staff was 890000, down 568000 from 1458000 at the end of 2020 and 958000 from 1848000 at the end of 2019.
As a major channel valued by various insurance companies in recent years, the premium growth rate of Bancassurance channel also leads the sales channels of China Life Insurance Company Limited(601628) . In 2021, the total premium of China Life Insurance Company Limited(601628) bancassurance channel reached 49.326 billion yuan, an increase of 19.6% year-on-year. The first year’s regular premium reached 16.11 billion yuan, a year-on-year increase of 2.3%.
total investment income exceeds 214 billion yuan
The report shows that as of December 31, 2021, China Life Insurance Company Limited(601628) total assets reached 4891085 billion yuan, an increase of 15.0% over the end of 2020. The company’s investment assets reached 4716829 billion yuan, an increase of 15.1% over the end of 2020.
In 2021, China Life Insurance Company Limited(601628) achieved a net investment income of 188770 billion yuan, an increase of 25.987 billion yuan over 2020, a year-on-year increase of 16.0% China Life Insurance Company Limited(601628) said that this was mainly due to the company’s continued increase in the allocation of long-term bonds and the increase in the contribution of investment income of associates and joint ventures in recent years.
According to the report, China Life Insurance Company Limited(601628) 2021 achieved a total investment income of 214057 billion yuan, an increase of 15.461 billion yuan over 2020, a year-on-year increase of 7.8%. The total return on investment was 4.98%. Affected by the fluctuation of the equity market, after considering the net change in the fair value of available for sale financial assets included in other comprehensive income in the current period, the comprehensive return on investment is 4.87%.
China Life Insurance Company Limited(601628) relevant person in charge said that in 2021, China’s bond yield fluctuated in a narrow range, from high to low, and the annual interest rate center declined; The A-share market is in a volatile pattern with significant industry differentiation China Life Insurance Company Limited(601628) life insurance companies take asset liability management as the guide in fund utilization, firmly implement medium and long-term strategic asset allocation planning, and flexibly carry out tactical allocation operation according to market changes.
“First, grasp the window period of relatively high interest rates in the first half of the year, focus on interest rate bonds, strengthen long-term asset allocation and further narrow the duration gap; second, prudently control the equity risk exposure in the open market, reduce portfolio volatility and lock in earnings; third, increase the innovation of alternative investment models, promote forward-looking industry layout and build a diversified investment portfolio.” The person in charge said.
green investment totaling over 300 billion yuan
In 2021, China Life Insurance Company Limited(601628) invested more than 2.7 trillion yuan in the real economy, increased the scale of investment by nearly 770 billion yuan, and served the national regional development strategy by more than 1.4 trillion yuan.
In terms of green investment, China Life Insurance Company Limited(601628) anchored the ESG strategic goal of “building a world-class and responsible life insurance company”, and identified the starting point through green investment, green sales, green operation, green office and other aspects. The cumulative green investment exceeded 300 billion yuan, a year-on-year increase of 4 times. Asset management subsidiary Guoshou asset launched the first ESG bond index and equity index in China’s insurance asset management industry. Fully promote rural revitalization and optimize the supply of Rural Revitalization insurance products.
China Life Insurance Company Limited(601628) also give play to the advantages of its main business, serve the overall situation of national development, actively make progress, play the role of the main force, actively serve the construction of a healthy China, actively respond to the national strategy of population aging, and actively participate in the construction of a multi-level social security system. Serious illness insurance projects covered more than 350 million people, long-term care insurance projects covered 23 million people, and urban customized commercial medical insurance projects covered more than 10 million people. The pilot work of exclusive commercial old-age insurance was carried out in an orderly manner.
