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China Life Insurance Co
(2628)
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Rating:78Outperform
Price Target:
HK$27.00
â–¼(-8.23% Downside)
Action:Reiterated
Date:08/30/26
The score is driven primarily by improving financial performance (stronger profitability and solid cash generation) and very attractive valuation (low P/E with a meaningful dividend yield). Technicals are supportive with price above key moving averages and positive MACD, though elevated stochastic suggests momentum may be getting stretched. The main risk factor is the recent increase in debt alongside historically volatile revenue.
Positive Factors
Profitability Improvement
The sharp improvement in revenue and profitability indicates stronger recent operating performance and greater earnings capacity. If margins remain above recent annual levels, China Life should have more resources to support policy growth, absorb claims volatility, and reinforce its competitive position.
Negative Factors
Recent Debt Increase
The recent step-up in debt reduces the balance-sheet flexibility that has historically supported China Life. Higher leverage can constrain capital allocation and leave less room to absorb adverse claims or investment outcomes, making debt levels an important medium-term factor.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Improvement
The sharp improvement in revenue and profitability indicates stronger recent operating performance and greater earnings capacity. If margins remain above recent annual levels, China Life should have more resources to support policy growth, absorb claims volatility, and reinforce its competitive position.
Read all positive factors
China Life Insurance Co (2628) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.03T
Dividend Yield4.72%
Average Volume (3M)46.17M
Price to Earnings (P/E)3.9
Beta (1Y)1.21
Revenue Growth38.17%
EPS Growth134.02%
CountryHK
Employees96,257
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)9.38
Shares Outstanding7,441,175,000
10 Day Avg. Volume58,368,512
30 Day Avg. Volume46,167,394
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.17
Price to Sales (P/S)1.15
P/FCF Ratio1.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$35.88Price Target Upside21.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)5.39
Revenue Forecast (FY)HK$638.06B
China Life Insurance Co Business Overview & Revenue Model
Company Description
Operating across the People's Republic of China, China Life Insurance Company Limited, supported by its various subsidiaries, serves as a prominent provider of life insurance services. The company structures its extensive operations into four prin...
How the Company Makes Money
China Life primarily makes money from (1) underwriting income and fee-related income from selling insurance policies and (2) investment income generated by investing premiums (insurance funds) collected from policyholders.
1) Premium income from ...
China Life Insurance Co Earnings Call Summary
Earnings Call Date:Oct 30, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Apr 01, 2027
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with record-high premiums and net profit, coupled with significant growth in investment income and improved operational efficiency. However, concerns about volatility under new accounting standards and challenges in transitioning the product mix were also highlighted.Positive Updates
Record-High Gross Written Premiums
The company's gross written premiums reached RMB 600 billion, a record high, with a year-on-year increase of 5.1%.
Negative Updates
High Volatility Concerns
Concerns were raised about increased volatility in profitability and net assets under new accounting standards.
Read all updates
Q3-2024 Updates
Positive
Negative
Record-High Gross Written Premiums
The company's gross written premiums reached RMB 600 billion, a record high, with a year-on-year increase of 5.1%.
Read all positive updates
Company Guidance
During the earnings call for Q3 2024, the executives provided comprehensive guidance on the company's financial performance and strategic focus areas. The company reported gross written premiums of RMB 600 billion, marking a year-on-year increase of 5.1%, with renewal premiums increasing by 7.5% to RMB 410.7 billion and first-year regular premiums rising by 6.8% to RMB 113.2 billion. The surrender rate decreased to 0.74%, enhancing operational quality. Investment income also saw a significant rise, with gross investment income reaching RMB 261.4 billion, up by 152%, and the net investment income at RMB 144.7 billion, an increase of 3.9%. The company's total assets amounted to RMB 6.48 trillion, reflecting an 11.7% growth. Additionally, the core solvency ratio stood at 154.58%, while the comprehensive solvency ratio was at 211.64%, both indicating robust financial health. The management emphasized their commitment to a customer-centric approach, focusing on diversified products and optimizing asset-liability management to ensure sustainable, high-quality growth.China Life Insurance Co Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 630.49B | 605.11B | 512.20B | 396.47B | 822.30B | 848.11B |
| Gross Profit | 560.11B | 603.33B | 510.40B | 394.74B | 66.12B | 85.99B |
| EBITDA | 159.12B | 186.52B | 120.24B | 57.00B | 34.16B | 61.28B |
| Net Income | 265.28B | 154.08B | 106.94B | 51.18B | 32.08B | 50.77B |
Balance Sheet | ||||||
| Total Assets | 8.09T | 7.59T | 6.77T | 5.89T | 5.25T | 4.89T |
| Cash, Cash Equivalents and Short-Term Investments | 154.50B | 143.32B | 86.52B | 2.41T | 1.87T | 1.49T |
| Total Debt | 223.84B | 36.79B | 49.27B | 48.97B | 49.34B | 55.86B |
| Total Liabilities | 7.41T | 6.98T | 6.25T | 5.42T | 4.81T | 4.40T |
| Stockholders Equity | 664.08B | 595.21B | 509.68B | 460.11B | 436.17B | 478.58B |
Cash Flow | ||||||
| Free Cash Flow | 332.90B | 456.87B | 374.82B | 384.06B | 348.89B | 280.97B |
| Operating Cash Flow | 702.60B | 459.93B | 378.80B | 388.23B | 351.97B | 286.45B |
| Investing Cash Flow | -594.42B | -547.37B | -354.62B | -428.10B | -164.96B | -393.73B |
| Financing Cash Flow | -85.69B | 144.34B | -86.76B | 60.27B | -120.09B | 111.14B |
China Life Insurance Co Technical Analysis
Negative
29.42
Price Trends
27.21
Negative
27.44
Negative
28.06
Negative
Market Momentum
-1.11
Negative
37.83
Neutral
69.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2628, the sentiment is Negative. The current price of 29.42 is above the 20-day moving average (MA) of 24.84, above the 50-day MA of 27.21, and above the 200-day MA of 28.06, indicating a bearish trend. The MACD of -1.11 indicates Negative momentum. The RSI at 37.83 is Neutral, neither overbought nor oversold. The STOCH value of 69.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2628.
China Life Insurance Co Risk Analysis
China Life Insurance Co disclosed 44 risk factors in its most recent earnings report. China Life Insurance Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
China Life Insurance Co Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$163.68B | 3.54 | 38.57% | 7.99% | 44.36% | 53.14% | |
78 Outperform | HK$1.03T | 3.95 | 39.88% | 4.72% | 38.17% | 134.02% | |
77 Outperform | HK$60.95B | 1.89 | 33.37% | 7.25% | 18.51% | 293.61% | |
70 Outperform | HK$780.14B | 12.65 | 19.05% | 2.63% | 13.31% | 36.76% | |
70 Outperform | HK$320.14B | 6.67 | 13.91% | 6.89% | 9.37% | -11.20% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | HK$1.03T | 9.71 | 9.64% | 6.32% | -7.57% | -25.97% |
* Financial Sector Average
HK:2628
China Life Insurance Co
23.88
0.30
1.26%
HK:2318
Ping An Insurance Company of China
49.74
-3.82
-7.13%
HK:1299
AIA Group
75.40
-2.64
-3.38%
HK:2601
China Pacific Insurance (Group) Co
26.22
-3.48
-11.71%
HK:0966
China Taiping Insurance Holdings Co
16.96
0.37
2.20%
HK:1336
New China Life Insurance Co., Ltd. Class H
38.84
-6.86
-15.01%
China Life Insurance Co Corporate Events
China Life details Q3 2026 solvency report under updated regulatory standards
Oct 30, 2026
China Life Insurance Company Limited has released a summary of its solvency quarterly report for the third quarter of 2026, prepared under the Solvency Regulatory Rules II and updated standards issued by China’s financial regulators. The dis...
China Life Reports Strong Q3 2026 Growth, Maintains Market Lead and Robust Solvency
Oct 30, 2026
In the first three quarters of 2026, China Life Insurance Company Limited reported steady business growth, supported by a customer-centric strategy and deepened asset-liability interaction. The insurer maintained a gross investment yield of 3.23%,...
China Life Insurance to Host Webcast for 2026 Third-Quarter Results
Oct 22, 2026
China Life Insurance Company Limited, one of China’s leading life insurance providers, focuses on offering life insurance and related financial services to a wide customer base in the mainland, while maintaining an active presence in Hong Ko...
China Life to Offload Majority Stake in Pension Subsidiary to Controlling Shareholder
Oct 21, 2026
China Life Insurance Company Limited has agreed that by the end of 2026 it will transfer a large part of its stake in its pension insurance subsidiary to its controlling shareholder, China Life Insurance (Group) Company (CLIC). The listed company ...
China Life Schedules Board Meeting to Approve First Three-Quarter Results
Oct 20, 2026
China Life Insurance Company Limited has scheduled a board meeting for 30 October 2026 to review and approve its unaudited financial results for the first three quarters ended 30 September 2026. The figures will be prepared under China Accounting ...
China Life sets up RMB6 billion connected investment partnership
Sep 24, 2026
China Life Insurance Company Limited plans to form a partnership with CLCD as general partner and CL Wuxi Fund and other investors as limited partners, with total committed capital capped at RMB6 billion and the insurer contributing up to RMB4.5 b...
China Life Insurance Updates Interim Dividend and Tax Details for H Shareholders
Sep 24, 2026
China Life Insurance Company Limited has declared an interim ordinary cash dividend of RMB 0.358 per share for the six months ended 30 June 2026, equivalent to HKD 0.41615 per share based on an exchange rate of RMB 1 to HKD 1.16244. The update cla...
China Life Wins Strong Shareholder Backing for Interim Dividend at Extraordinary Meeting
Sep 24, 2026
China Life Insurance Company Limited reported that shareholders approved a resolution at its second extraordinary general meeting of 2026, held in Beijing, with no shareholders required to abstain from voting. The meeting drew participation from 1...
China Life Pension Unit to Commit RMB2 Billion to New RMB20 Billion Investment Partnership
Sep 24, 2026
China Life Insurance’s pension subsidiary plans to form a large investment partnership with China Life Property Casualty and other investors, creating a fund with total capital commitments of RMB20 billion. The pension unit will contribute ...
China Life Calls EGM to Approve RMB10.1 Billion Interim Dividend
Sep 2, 2026
China Life Insurance Company Limited has called a Second Extraordinary General Meeting for 24 September 2026 in Beijing, with shareholders asked to approve the company’s interim profit distribution plan. The meeting will determine the propos...
China Life Publishes Q2 2026 Solvency Report Summary Under Updated Rules
Aug 27, 2026
China Life Insurance Company Limited has released its solvency quarterly report summary for the second quarter of 2026, prepared under the Solvency Regulatory Rules II and recent optimization notices issued by Chinese financial regulators. The dis...
China Life Declares Interim 2026 Dividend and Sets H-Share Tax Terms
Aug 27, 2026
China Life Insurance Company Limited has declared an interim ordinary cash dividend of RMB 0.358 per share for the six months ended 30 June 2026, subject to shareholder approval on 24 September 2026. The dividend, for the financial year ending 31 ...
China Life books surging profit and record new business in strong H1 2026
Aug 27, 2026
China Life reported a strong start to China’s 15th Five-Year Plan with significant growth in assets, profitability and new business in the first half of 2026. Total assets rose to RMB8.09 trillion and net assets to RMB677.9 billion, while em...
China Life Insurance Clears All Resolutions at 2026 Extraordinary Meeting
Aug 20, 2026
China Life Insurance Company Limited reported that all resolutions proposed at its first extraordinary general meeting of 2026 were approved, following a poll conducted both onsite and online in Beijing. The meeting was chaired by board chairman C...
China Life Insurance to Webcast 2026 Interim Results Briefing for Investors
Aug 19, 2026
China Life Insurance Company Limited plans to publish its 2026 interim results on the HKExnews website of Hong Kong Exchanges and Clearing Limited on 27 August 2026. The disclosure forms part of the insurer’s ongoing efforts to keep investor...
China Life Schedules Board Meeting to Approve 2026 Interim Results
Aug 17, 2026
China Life Insurance Company Limited has scheduled a board meeting for 27 August 2026 to review and approve its interim results for the six months ended 30 June 2026. The meeting will also address other board business, signaling the company’...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.