China Life Insurance (601628) 2019 Third Quarterly Report Review: Net Profit and New Business Value High-Growth Agents Quality Rise

China Life Insurance (601628) 2019 Third Quarterly Report Review: Net Profit and New Business Value High-Growth Agents Quality Rise

Investment Highlights The company achieved high growth in net profit for the first three quarters of 2019.

The company achieved a total operating income of 64.2 million yuan in the first three quarters of 2019, an increase of 15 per year.

4%, the net profit attributable to the parent company is 5.77 million yuan, an annual increase of 190.

4%, the preliminary results of significant growth include: 1.

Last year’s base is inevitable; 2.

2. Tax cuts release profits; 3.

Investment income increased significantly compared with the same period last year.

The value of new business maintained high growth, and the premium structure continued to be optimized.

In the first three quarters of 2019, the company’s new single premium (including short-term insurance) increased by 6 per year.

5%, of which the growth rate of premiums for long-term insurance is 4.

7%, the main reasons for the new order growth faster than peers include better sales of starters this year and short-term insurance with a continuous growth rate of up to 31%.

The company’s premium structure continued to be optimized, with long-term new single premiums accounting for 98% in the medium term.

07%, an increase of 8.

45 averages, the proportion of premiums paid in the first year of ten years and above reached 51.

06%, an increase of 15 over the same period last year.

72 units.

The increase in new single premiums combined with the increase in the value rate brought by the optimization of premium structure has enabled the company to realize new business value in the first three quarters20.

4% annual high growth rate.

The quality of agents rose, which added a good foundation for future premium growth.

As of the end of the third quarter of 2019, the total sales force of the company was 195, an increase of 10 from the end of last year.


2%, of which the number of individual agents is 166.

30,000 people, an increase of 15.

6% (of which, Q3’s agent increased by 9 percentage points in a 南京桑拿网 single quarter), the company’s agent grew faster than its peers, and is expected to gradually become the sales volume of savings products, which will have a positive effect on agent income.

In essence, the average monthly effective sales manpower of individual insurance channels and the manpower for selling specific protection products have sometimes increased by 37.

4% and 49.


The company’s investment side performed well, and its net investment yield and total investment yield improved significantly compared to the same period last year.

The company’s first three quarters of net investment income investment4.

83%, 21 basis points higher than the same period last year.

72%, an increase of 231 basis points over the same period last year.

The initial performance of the company’s investment side includes: 1.

The marketization reform of the company’s investment management center has brought positive effects to the improvement of the company’s investment capabilities; 2.

The company allocated bonds early on fixed income assets and increased the acquisition of some non-standard assets; 3.

The company achieved higher returns while controlling risk exposure on equity assets.

We slightly adjusted the company’s EVPS in 2019, 33 in 2020 and 2021.
43 yuan, 38.

27 yuan and 43.

53 yuan, EPS is 2 respectively.
18 yuan, 2.

11 yuan and 2.

50 yuan to 2019.

At 29 closing prices, the corresponding PEVs are 0.


81 and 0.

71, the corresponding PEs are 14, respectively.

18, 14.

63 and 12.

35, we give a prudent overweight rating.

Risk warning: New single premiums are lower than expected, interest rates are down, and investment returns are down.