Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
中國人壽保險股份有限公司
CHINA LIFE INSURANCE COMPANY LIMITED
(A joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock Code: 2628)
2021 FIRST QUARTER REPORT
This announcement is made by China Life Insurance Company Limited (the "Company") pursuant to the inside information provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
1. IMPORTANT NOTICE
- The Company's Board of Directors, the Board of Supervisors, its Directors, Supervisors and Senior Management warrant that the information in this quarterly report is true, accurate and complete and contains no false representations, misleading statements or material omissions, and jointly and severally accept full legal responsibility.
- On 28 April 2021, the Company's 2021 First Quarter Report was considered and approved at the thirty-fifth meeting of the sixth session of the Board of the Company. Of the nine Directors of the Company, eight attended the Board Meeting. Executive Director Mr. Li Mingguang could not attend the meeting due to other business, and gave written authorization to Executive Director Mr. Su Hengxuan to act as proxy to attend and vote at the meeting.
- The financial data of the Company for the first quarter of 2021 have been prepared in accordance with the China Accounting Standards for Business Enterprises and are unaudited. Net profit attributable to equity holders of the Company and equity attributable to equity holders of the Company in the consolidated financial statements have no difference from the relevant data under International Financial Reporting Standards.
- Mr. Wang Bin, Chairman of the Board of the Company, Ms. Huang Xiumei, Vice President in charge of financial affairs, Mr. Li Mingguang, Chief Actuary and Ms. Hu Jin, Head of the Financial Department, confirm that the financial statements in this 2021 first quarter report are true, accurate and complete.
1
2. THE COMPANY'S BASIC INFORMATION
2.1 Major financial data and financial indicators
Currency: RMB | |||
Increase/(decrease) | |||
As at | As at | compared to | |
31 March 2021 | 31 December 2020 | 31 December 2020 | |
Total assets (million) | 4,469,985 | 4,252,410 | 5.1% |
Equity holders' equity (million) | 467,747 | 450,051 | 3.9% |
Ordinary share holders' equity | 16.55 | 15.92 | 3.9% |
per share (RMB per share) | |||
Increase/(decrease) | |||
For the three months | For the three months | compared to the | |
ended 31 March 2021 | ended 31 March 2020 | same period of 2020 | |
Net cash flows from operating | 161,232 | 125,309 | 28.7% |
activities (million) | |||
Net cash flows from | 5.70 | 4.43 | 28.7% |
operating activities per share | |||
(RMB per share) | |||
Operating income (million) | 373,458 | 337,772 | 10.6% |
Net profit attributable to | 28,589 | 17,090 | 67.3% |
equity holders of the Company | |||
(million) | |||
Net profit attributable to | 28,639 | 17,120 | 67.3% |
equity holders of the Company | |||
after deducting non-recurring | |||
items (million) | |||
Earnings per share (basic and | 1.01 | 0.60 | 68.3% |
diluted) (RMB per share) | |||
Basic earnings per share after | 1.01 | 0.60 | 68.3% |
deducting non-recurring items | |||
(RMB per share) | |||
Weighted average ROE (%) | 6.23 | 4.24 | An increase of 1.99 |
percentage points | |||
Weighted average ROE after | 6.24 | 4.25 | An increase of 1.99 |
deducting non-recurring items (%) | percentage points | ||
Note: In calculating the percentage changes of "Ordinary share holders' equity per share", "Net cash flows from operating activities per share", "Earnings per share (basic and diluted)" and "Basic earnings per share after deducting non-recurring items", the tail differences of the basic figures have been taken into account.
2
2.2 Non-recurring items and amounts
RMB million | |
For the reporting period | |
Non-recurring items Note | (from January to March) |
Gains/(losses) on disposal of non-current assets | 14 |
Government subsidies recognized in current gains/(losses) | 60 |
Donations | (38) |
Net non-recurring items other than those mentioned above | (81) |
Effect of income tax | 11 |
Attributable to non-controlling interests | (16) |
Total | (50) |
Note: As an insurance company, investment of insurance funds is one of the major businesses of the Company. Therefore, the non-recurring items do not include fair value gains/(losses) from financial assets at fair value through profit or loss and financial liabilities at fair value through profit or loss, as well as investment income from the disposal of financial assets at fair value through profit or loss and financial liabilities at fair value through profit or loss and available-for-sale financial assets.
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2.3 Total number of shareholders and the particulars of top ten shareholders as at the end of the reporting period
Total number of shareholders as at | Number of A Share shareholders: 176,897 | |||||
the end of the reporting period | Number of H Share shareholders: 25,886 | |||||
Particulars of top ten shareholders of the Company | Unit: Share | |||||
Number of | ||||||
shares subject | Number of | |||||
Percentage of | Total number | to selling | shares pledged | |||
Name of shareholder | Nature of shareholder | shareholding | of shares | restrictions | or frozen | |
China Life Insurance (Group) | State-owned legal person | 68.37% | 19,323,530,000 | - | - | |
Company | ||||||
HKSCC Nominees Limited | Overseas legal person | 25.93% | 7,329,086,030 | - | - | |
China Securities Finance Corporation | State-owned legal person | 2.51% | 708,240,246 | - | - | |
Limited | ||||||
Central Huijin Asset Management | State-owned legal person | 0.42% | 119,719,900 | - | - | |
Limited | ||||||
Hong Kong Securities Clearing | Overseas legal person | 0.18% | 51,756,584 | - | - | |
Company Limited | ||||||
China Universal Asset Management | Other | 0.05% | 15,015,845 | - | - | |
Co., Limited - Industrial and | ||||||
Commercial Bank of China | ||||||
Limited - China Universal - | ||||||
Tianfu Bull No. 53 Asset | ||||||
Management Plan | ||||||
Industrial and Commercial Bank of | Other | 0.04% | 10,010,242 | - | - | |
China Limited - SSE 50 Exchange | ||||||
Traded Index Securities Investment | ||||||
Fund | ||||||
China International Television | State-owned legal person | 0.04% | 10,000,000 | - | - | |
Corporation | ||||||
China National Nuclear Corporation | State-owned legal person | 0.03% | 8,950,800 | - | - | |
Feng Xiang | Domestic natural person | 0.03% | 8,501,804 | - | - | |
1. | HKSCC Nominees Limited is a company that holds shares on behalf of the clients of the Hong | |||||
Kong stock brokers and other participants of the CCASS system. The relevant regulations of | ||||||
The Stock Exchange of Hong Kong Limited do not require such persons to declare whether | ||||||
their shareholdings are pledged or frozen. Hence, HKSCC Nominees Limited is unable to | ||||||
calculate or provide the number of shares that are pledged or frozen. | ||||||
Details of shareholders | 2. | China Universal Asset Management Co., Limited - Industrial and Commercial Bank of China | ||||
Limited - China Universal - Tianfu Bull No.53 Asset Management Plan has Industrial and | ||||||
Commercial Bank of China Limited as its asset trustee. Industrial and Commercial Bank of | ||||||
China Limited - SSE 50 Exchange Traded Index Securities Investment Fund has Industrial and | ||||||
Commercial Bank of China Limited as its fund depositary. Save as above, the Company was | ||||||
not aware of any connected relationship and concerted parties as defined by the "Measures for | ||||||
the Administration of the Takeover of Listed Companies" among the top ten shareholders of | ||||||
the Company. | ||||||
4
-
Total number of preference share holders, top ten preference share holders, and the particulars of top ten preference share holders with no selling restrictions as at the end of the reporting period
□ Applicable ✓ Not applicable - Quarterly business analysis
Since 2021, as the external environment for development has been complicated and ever- changing, and the long-term and severe impact brought by the COVID-19 pandemic has become increasingly prominent, China has seen uneven economic recovery, and the insurance industry still remains to gain full recovery. During the reporting period, by closely upholding the strategic deployment of "China Life Revitalization" and the high-quality development requirements, the Company proactively responded to the challenges brought by the pandemic, well proceeded with various tasks and achieved a steady development, with its business profitability increasing effectively. Firstly, the overall business development of the
Company remained stable, although it was under pressure as a result of the high base in the comparative period of the previous year. In the first quarter of 2021, revenues from insurance business1 of the Company reached RMB323,892 million, an increase of 5.2% year on year. In particular, renewal premiums amounted to RMB221,443 million, an increase of 11.7% year on year. Short-terminsurance premiums amounted to RMB33,584 million, an increase of 2.3% year on year. As affected by the COVID-19pandemic, the release of insurance demands slowed down, and the development of the Company's new policy business was under pressure. First-yearregular premiums amounted to RMB68,276 million, of which, first-yearregular premiums with a payment duration of ten years or longer were RMB19,656 million. With the high base in 2020, value of new business for the first quarter of 2021 decreased by 13.2% year on year. The surrender rate was 0.38%, an increase of 0.10 percentage point year on year. Secondly, the Company continued to focus on enhancing sales force quality while stabilizing its quantity, and carried out its day-to-day management in a more stringent manner. With the implementation of the customer-centricsales deployment of "Yi Ti Duo Yuan" in greater depth, the Company adhered to the strategy of "productive agents-drivenbusiness", strengthened its day-to-daymanagement, attached great importance to its quality enhancement, and consistently pushed forward high-qualitydevelopment of the sales force. As at the end of the reporting period, the Company's total sales force was 1.357 million, of which, the number of agents of the individual agent business sector was 1.282 million, which generally remained stable. Thirdly, the Company optimized its asset allocation on account level and diversified investment strategies of asset classes, which laid down a solid foundation for the Company's investment income of the whole year. As at the end of the reporting period, the Company's investment assets reached RMB4,282,189 million, an increase of 4.5% from the
1 Revenues from insurance business is consistent with Premium Income in the attached income statement.
5
end of 2020. The Company continued to allocate to the liability-matching portfolios with long duration, made allocation to non-standardfixed-income assets and quasi-fixed income assets on a rolling basis to reinforce the safety cushion, and strived to improve its equity investment capability to gain excess returns. In the first quarter of 2021, the Company well coordinated strategic allocation and tactical operation based on market conditions, leveraged the strengths of asset managers within and outside the Company, diversified the types of fixed-income assets, and proactively managed equity exposures, so as to consistently optimize its position structure. In the first quarter of 2021, the Company registered gross investment income2 of RMB65,112 million, an increase of 43.3% year on year, and the gross investment yield3 reached 6.44%. The net investment income4 was RMB41,395 million, an increase of 8.7% year on year, and the net investment yield5 was 4.08%.
During the reporting period, net profit attributable to equity holders of the Company was RMB28,589 million, an increase of 67.3% year on year. As at the end of the reporting period, the core solvency ratio and comprehensive solvency ratio of the Company were 266.35% and 275.16%, respectively.
For the remaining period of 2021, the Company will implement the new development concept in all aspects, continue to maintain high-quality development, further push forward the "China Life Revitalization" initiative, adhere to the strategic core of "Three Major Transformations, Dual Centers and Dual Focuses, Asset-liability Interaction", and uphold the operational guideline of "prioritizing business value, strengthening sales force, achieving stable growth, upgrading technology, optimizing customer services and guarding against risks". The Company will strive to maintain the steady business growth, improve the quality of its sales force, foster new driving forces with perseverance, and firmly defend the bottom line of risk prevention and control, so as to make new progress in the "China Life Revitalization" initiative.
2
3
4
5
Gross investment income = Net investment income + Net realized gains on investment assets + Fair value gains/losses - Impairment losses of investment assets
Gross investment yield = {[(Gross investment income - Interest paid for financial assets sold under agreements to repurchase)/((Investment assets at the end of the previous year - Financial assets sold under agreements to repurchase at the end of the previous year - Derivative financial liabilities at the end of the previous year + Investment assets at the end of the period - Financial assets sold under agreements to repurchase at the end of the period - Derivative financial liabilities at the end of the period)/2)]/90}×365
Net investment income includes interest income from debt investments, interest income from deposits, dividend and bonus from equity investments, interest income from loans, net income from investment properties, and income from investments in associates and joint ventures, etc.
Net investment yield = {[(Net investment income - Interest paid for financial assets sold under agreements to repurchase)/((Investment assets at the end of the pervious year - Financial asset sold under agreements to repurchase at the end of the previous year + Investment assets at the end of the period - Financial assets sold under agreements to repurchase at the end of the period)/2)]/90}×365
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3. SIGNIFICANT EVENTS
3.1 Particulars of and reasons for changes in major accounting items and financial indicators of the Company
- Applicable □ Not applicable
- Changes in key financial indicators and the reasons
RMB million | ||||
As at | As at | |||
31 March | 31 December | Increase/ | ||
Key financial indicators | 2021 | 2020 | (decrease) | Main reasons |
Total assets | 4,469,985 | 4,252,410 | 5.1% | Accumulation of the assets |
from insurance business and | ||||
investment business | ||||
Total liabilities | 3,995,040 | 3,795,479 | 5.3% | An increase in insurance |
reserves | ||||
Equity holders' equity | 467,747 | 450,051 | 3.9% | Due to the effect of profits |
during the Reporting Period | ||||
For the three | For the three | |||
months ended | months ended | |||
31 March | 31 March | Increase/ | ||
Key financial indicators | 2021 | 2020 | (decrease) | Main reasons |
Operating profit | 35,252 | 21,130 | 66.8% | An increase in investment |
income | ||||
Net profit attributable to equity | 28,589 | 17,090 | 67.3% | An increase in investment |
holders of the Company | income | |||
7
- Material changes in major accounting items and the reasons
RMB million | ||||
As at | As at | |||
31 March | 31 December | Increase/ | ||
Key financial indicators | 2021 | 2020 | (decrease) | Main reasons |
Cash fund | 86,022 | 57,605 | 49.3% | The needs for liquidity |
management | ||||
Premiums receivables | 54,051 | 20,730 | 160.7% | The accumulation of renewal |
premiums | ||||
Unearned premium reserves | 32,489 | 14,701 | 121.0% | An increase in short-term |
insurance business and timing | ||||
differences of business | ||||
schedule | ||||
For the three | For the three | |||
months ended | months ended | |||
31 March | 31 December | Increase/ | ||
Key financial indicators | 2021 | 2020 | (decrease) | Main reasons |
Investment income | 73,484 | 51,729 | 42.1% | An increase in investment |
income of equity assets | ||||
Fair value gains/(losses) | (7,269) | (5,411) | 34.3% | Due to the fluctuation of the |
market value of financial assets | ||||
at fair value through profit or | ||||
loss | ||||
Surrenders | 12,308 | 7,740 | 59.0% | An increase in surrender of |
certain insurance products due to | ||||
the pandemic | ||||
Income tax expenses | 6,149 | 3,760 | 63.5% | An increase in the Company's |
profit | ||||
8
-
Explanation and analysis of significant events and their impacts and solutions
□ Applicable ✓ Not applicable - Undertakings were not implemented in due time during the reporting period
✓ Applicable □ Not applicable
Prior to the listing of the Company's A Shares (30 November 2006), land use rights were injected by China Life Insurance (Group) Company (the "CLIC") into the Company during its reorganization. Out of these, four pieces of land (with a total area of 10,421.12 square meters) had not had its formalities in relation to the change of ownership completed. Further, out of the properties injected into the Company, there were six properties (with a gross floor area of 8,639.76 square meters) in respect of which the formalities in relation to the change of ownership had not been completed. CLIC undertook to complete the above-mentioned formalities within one year of the date of listing of the Company's A Shares, and in the event such formalities could not be completed within such period, CLIC would bear any potential losses to the Company in relation thereto.
CLIC strictly followed these commitments. As at the end of the reporting period, save for the two properties and related land of the Company's Shenzhen Branch, the ownership registration formalities of which had not been completed due to historical reasons, all other formalities in relation to the change of land and property ownership had been completed. The Shenzhen Branch of the Company continues to use such properties and land, and no other parties have questioned or hindered the use of such properties and land by the Company.
The Company's Shenzhen Branch and the other co-owners of the properties have issued a letter to the governing department of the original owner of the properties in respect of the confirmation of ownership of the properties, requesting it to report the ownership issue to the State-owned Assets Supervision and Administration Commission of the State Council ("SASAC"), and requesting the SASAC to confirm the respective shares of each co-owner in the properties and to issue written documents in this regard to the department of land and resources of Shenzhen, so as to assist the Company and the other co-owners to complete the formalities in relation to the division of ownership of the properties.
Given that the change of ownership of the above two properties and related land use rights were directed by the co-owners, and all formalities in relation to the change of ownership were proceeded slowly due to reasons such as issues rooted in history and government approvals, CLIC, the controlling shareholder of the Company, made further commitment as follows: CLIC will assist the Company in completing, and urge the co-owners to complete the formalities in relation to the change of ownership in respect of the above two properties and related land use rights as soon as possible. If the formalities cannot be completed due to the reasons of the co-owners, CLIC will take any other legally practicable measures to resolve the issue and will bear any potential losses suffered by the Company as a result of the defective ownership.
9
3.4 Warnings and explanation for any forecasted losses or significant changes (as compared to the same period of last year) in accumulated net profit from the beginning of the year to the end of the next reporting period
- Applicable ✓ Not applicable
This announcement is published in both Chinese and English. Should there be any inconsistency between the Chinese and English version, the Chinese version shall prevail.
By Order of the Board
China Life Insurance Company Limited
Heng Victor Ja Wei
Company Secretary
As at the date of this announcement, the Board of Directors of the Company comprises:
Executive Directors: | Wang Bin, Su Hengxuan, Li Mingguang |
Non-executive Directors: | Yuan Changqing, Wang Junhui |
Independent Non-executive Directors: | Chang Tso Tung Stephen, Robinson Drake Pike, |
Tang Xin, Leung Oi-Sie Elsie | |
Hong Kong, 28 April 2021 |
10
4. APPENDIX
4.1 Balance sheet as at 31 March 2021 (unaudited)
RMB million (Unless otherwise stated) | ||||||||
As at | As at | As at | As at | |||||
31 March | 31 December | 31 March | 31 December | |||||
2021 | 2020 | 2021 | 2020 | |||||
ASSETS | Group | Group | Company | Company | ||||
Assets | ||||||||
Cash fund | 86,022 | 57,605 | 63,675 | 50,688 | ||||
Financial assets at fair value through profit or loss | 153,583 | 161,564 | 108,359 | 127,398 | ||||
Securities purchased under agreements to resell | 7,339 | 7,947 | 6,545 | 5,888 | ||||
Interest receivables | 46,697 | 45,147 | 45,653 | 44,509 | ||||
Premiums receivables | 54,051 | 20,730 | 54,051 | 20,730 | ||||
Receivables from reinsurers | 741 | 1,135 | 741 | 1,135 | ||||
Unearned premium reserves receivable from reinsurers | 728 | 523 | 728 | 523 | ||||
Claim reserves receivable from reinsurers | 291 | 209 | 291 | 209 | ||||
Reserves for life insurance receivables from reinsurers | 633 | 570 | 633 | 570 | ||||
Reserves for long-term health insurance receivables | ||||||||
from reinsurers | 3,760 | 3,658 | 3,760 | 3,658 | ||||
Other receivables | 12,036 | 14,988 | 9,273 | 12,459 | ||||
Loans | 675,303 | 658,535 | 653,776 | 638,849 | ||||
Term deposits | 550,786 | 545,667 | 518,980 | 521,886 | ||||
Available-for-sale financial assets | 1,294,078 | 1,215,603 | 1,264,491 | 1,187,153 | ||||
Held-to-maturity investments | 1,246,052 | 1,189,369 | 1,245,124 | 1,188,509 | ||||
Long-term equity investments | 248,587 | 239,584 | 328,636 | 289,596 | ||||
Statutory deposits | 6,333 | 6,333 | 5,653 | 5,653 | ||||
Investment properties | 14,106 | 14,217 | 6,115 | 6,162 | ||||
Constructions in progress | 11,406 | 11,332 | 10,600 | 10,567 | ||||
Fixed assets | 40,606 | 40,438 | 38,813 | 38,624 | ||||
Right-of-use assets | 2,796 | 3,076 | 2,659 | 2,823 | ||||
Intangible assets | 8,258 | 8,335 | 7,510 | 7,572 | ||||
Deferred tax assets | 161 | 87 | - | - | ||||
Other assets | 5,623 | 5,748 | 5,372 | 5,489 | ||||
Separate account assets | 9 | 10 | 9 | 10 | ||||
Total Assets | 4,469,985 | 4,252,410 | 4,381,447 | 4,170,660 | ||||
Wang Bin | Huang Xiumei | Li Mingguang | Hu Jin |
Chairman | Vice President in | Chief Actuary | Head of |
charge of Accounting Affairs | Financial Department |
11
4.1 Balance sheet as at 31 March 2021 (unaudited) (continued)
LIABILITIES AND EQUITY
Liabilities
Short-term borrowings
Financial liabilities at fair value through profit or loss Securities sold under agreements to repurchase Premiums received in advance
Brokerage and commission payable Reinsurance payable
Salary and welfare payable Taxes payable Dividends payable Claims payable Policyholder dividends payable Other payable Policyholder deposits Unearned premium reserves Claim reserves
Reserves for life insurance
Reserves for long-term health insurance Long-term borrowings
Bonds payable Lease liabilities Deferred tax liabilities Other liabilities Separate account liabilities
Total liabilities
Equity
Share capital
Capital reserve
Accumulated other comprehensive income
Surplus reserve
General reserve
Retained earnings
Attributable to equity holders of the Company
Non-controlling interests
Total equity
Total liabilities and equity
Wang Bin | Huang Xiumei |
Chairman | Vice President in |
charge of Accounting Affairs |
RMB million (Unless otherwise stated)
As at | As at | As at | As at | |||||||
31 March | 31 December | 31 March | 31 December | |||||||
2021 | 2020 | 2021 | 2020 | |||||||
Group | Group | Company | Company | |||||||
1,575 | 1,641 | - | - | |||||||
5,275 | 3,732 | - | - | |||||||
108,474 | 122,249 | 102,694 | 116,584 | |||||||
2,987 | 53,021 | 2,987 | 53,021 | |||||||
6,754 | 7,051 | 6,754 | 7,051 | |||||||
486 | 1,036 | 486 | 1,036 | |||||||
10,977 | 11,811 | 9,522 | 10,553 | |||||||
4,756 | 1,080 | 4,297 | 634 | |||||||
- | 13 | - | - | |||||||
56,987 | 55,031 | 56,987 | 55,031 | |||||||
124,427 | 122,510 | 124,427 | 122,510 | |||||||
16,768 | 15,975 | 14,308 | 15,021 | |||||||
296,220 | 288,202 | 296,220 | 288,202 | |||||||
32,489 | 14,701 | 32,489 | 14,701 | |||||||
21,404 | 21,991 | 21,404 | 21,991 | |||||||
2,994,175 | 2,768,584 | 2,994,175 | 2,768,584 | |||||||
174,767 | 167,949 | 174,767 | 167,949 | |||||||
17,897 | 17,915 | - | - | |||||||
34,993 | 34,992 | 34,993 | 34,992 | |||||||
2,452 | 2,664 | 2,317 | 2,416 | |||||||
10,320 | 15,286 | 10,776 | 15,705 | |||||||
70,848 | 68,035 | 24,333 | 25,308 | |||||||
9 | 10 | 9 | 10 | |||||||
3,995,040 | 3,795,479 | 3,913,945 | 3,721,299 | |||||||
28,265 | 28,265 | 28,265 | 28,265 | |||||||
54,387 | 53,954 | 53,639 | 53,206 | |||||||
43,599 | 54,862 | 43,281 | 54,465 | |||||||
86,027 | 86,027 | 85,979 | 85,979 | |||||||
43,059 | 43,047 | 42,313 | 42,313 | |||||||
212,410 | 183,896 | 214,025 | 185,133 | |||||||
467,747 | 450,051 | |||||||||
7,198 | 6,880 | |||||||||
474,945 | 456,931 | 467,502 | 449,361 | |||||||
4,469,985 | 4,252,410 | 4,381,447 | 4,170,660 | |||||||
Li Mingguang | Hu Jin | |||||||||
Chief Actuary | Head of | |||||||||
Financial Department |
12
4.2 Income statement for the first quarter of 2021 (unaudited)
RMB million (Unless otherwise stated) | ||||||||||
For the three months | For the three months | |||||||||
ended 31 March | ended 31 March | |||||||||
2021 | 2020 | 2021 | 2020 | |||||||
Group | Group | Company | Company | |||||||
1 | Operating income | 373,458 | 337,772 | 372,255 | 336,859 | |||||
Premiums earned | 304,756 | 289,518 | 304,756 | 289,518 | ||||||
Premium income | 323,892 | 307,776 | 323,892 | 307,776 | ||||||
Including: Reinsurance premium income | - | 1 | - | 1 | ||||||
Less: Premiums ceded to reinsurers | (1,553) | (1,293) | (1,553) | (1,293) | ||||||
Change in unearned premium reserves | (17,583) | (16,965) | (17,583) | (16,965) | ||||||
Investment income | 73,484 | 51,729 | 72,734 | 50,872 | ||||||
Including: Share of profit of associates and | ||||||||||
3,015 | 3,007 | 3,039 | 3,076 | |||||||
joint ventures | ||||||||||
Other gains | 111 | 15 | 58 | 12 | ||||||
Fair value gains/(losses) | (7,269) | (5,411) | (6,451) | (4,575) | ||||||
Foreign exchange gains/(losses) | 144 | 58 | 48 | 121 | ||||||
Other operating income | 2,218 | 1,862 | 1,096 | 910 | ||||||
Gains/(losses) on disposal of assets | 14 | 1 | 14 | 1 | ||||||
2 | Operating expenses | (338,206) | (316,642) | (337,372) | (315,768) | |||||
Surrenders | (12,308) | (7,740) | (12,308) | (7,740) | ||||||
Claims expense | (43,033) | (35,530) | (43,033) | (35,530) | ||||||
Less: Claims recoverable from reinsurers | 1,433 | 673 | 1,433 | 673 | ||||||
Increase in insurance contracts reserve | (231,822) | (216,583) | (231,822) | (216,583) | ||||||
Less: Insurance reserves recoverable from reinsurers | 247 | (56) | 247 | (56) | ||||||
Policyholder dividends resulting from participation | ||||||||||
in profits | (8,127) | (6,591) | (8,127) | (6,591) | ||||||
Tax and surcharges | (365) | (218) | (330) | (202) | ||||||
Underwriting and policy acquisition costs | (27,843) | (34,569) | (27,843) | (34,569) | ||||||
Administrative expenses | (9,367) | (9,654) | (8,793) | (9,159) | ||||||
Less: Expenses recoverable from reinsurers | 83 | 62 | 83 | 62 | ||||||
Other operating expenses | (5,962) | (5,553) | (5,737) | (5,190) | ||||||
Impairment losses | (1,142) | (883) | (1,142) | (883) | ||||||
Wang Bin | Huang Xiumei | Li Mingguang | Hu Jin |
Chairman | Vice President in | Chief Actuary | Head of |
charge of Accounting Affairs | Financial Department |
13
4.2 Income statement for the first quarter of 2021 (unaudited) (continued)
RMB million (Unless otherwise stated) | ||||||||||||
For the three months | For the three months | |||||||||||
ended 31 March | ended 31 March | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
Group | Group | Company | Company | |||||||||
3 | Operating profit | 35,252 | 21,130 | 34,883 | 21,091 | |||||||
Add: Non-operating income | 12 | 12 | 10 | 9 | ||||||||
Less: Non-operating expenses | (130) | (60) | (130) | (57) | ||||||||
4 | Net profit before income tax | 35,134 | 21,082 | 34,763 | 21,043 | |||||||
Less: Income tax expenses | (6,149) | (3,760) | (5,808) | (3,540) | ||||||||
5 | Net profit | 28,985 | 17,322 | 28,955 | 17,503 | |||||||
According to operating continuity: | ||||||||||||
- Net profit from continuing operations | 28,985 | 17,322 | 28,955 | 17,503 | ||||||||
According to ownership of the company: | ||||||||||||
- Equity holders of the Company | 28,589 | 17,090 | ||||||||||
- Non-controlling interests | 396 | 232 | ||||||||||
6 | Earnings per share | |||||||||||
Basic earnings per share | RMB1.01 | RMB0.60 | ||||||||||
Diluted earnings per share | RMB1.01 | RMB0.60 |
Wang Bin | Huang Xiumei | Li Mingguang | Hu Jin |
Chairman | Vice President in | Chief Actuary | Head of |
charge of Accounting Affairs | Financial Department |
14
4.2 Income statement for the first quarter of 2021 (unaudited) (continued)
RMB million (Unless otherwise stated) | |||
For the three months | For the three months | ||
ended 31 March | ended 31 March | ||
2021 | 2020 | 2021 | 2020 |
Group | Group | Company | Company |
7 Other Comprehensive income | (11,404) | (7,200) | (11,247) | (7,828) | ||||
Other comprehensive income attributable to equity | ||||||||
holders of the Company (net of tax) | (11,326) | (7,178) | ||||||
Other comprehensive income that may be | ||||||||
reclassified to profit or loss | (11,278) | (7,081) | (11,199) | (7,731) | ||||
Fair value gains/(losses) on available-for-sale | ||||||||
financial assets | 6,562 | (3,096) | 6,547 | (3,792) | ||||
Less: Amount transferred to net profit from | ||||||||
other comprehensive income | (18,955) | (7,654) | (18,860) | (7,605) | ||||
Portion of fair value changes on available- | ||||||||
for-sale financial assets attributable to | ||||||||
participating policyholders | 1,780 | 2,694 | 1,780 | 2,694 | ||||
Other comprehensive income that may be | ||||||||
transferred to profit or loss under the equity | ||||||||
method | (673) | 839 | (673) | 951 | ||||
Exchanges differences on translating foreign | ||||||||
operations | 8 | 136 | 7 | 21 | ||||
Other comprehensive income that will not be | ||||||||
reclassified to profit or loss | (48) | (97) | (48) | (97) | ||||
Other comprehensive income that may not be | ||||||||
transferred to profit or loss under the equity | ||||||||
method | (48) | (97) | (48) | (97) | ||||
Other comprehensive income attributable to | ||||||||
non-controlling interests (net of tax) | (78) | (22) | ||||||
8 Total Comprehensive income | 17,581 | 10,122 | 17,708 | 9,675 | |||
- Attributable to equity holders of the Company | 17,263 | 9,912 | |||||
- Attributable to non-controlling interests | 318 | 210 |
Wang Bin | Huang Xiumei | Li Mingguang | Hu Jin |
Chairman | Vice President in | Chief Actuary | Head of |
charge of Accounting Affairs | Financial Department |
15
4.3 Cash flow statement for the first quarter of 2021 (unaudited)
RMB million (Unless otherwise stated) | ||||||||||||
For the three months | For the three months | |||||||||||
ended 31 March | ended 31 March | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
Group | Group | Company | Company | |||||||||
1 Cash flows from operating activities | ||||||||||||
Premiums received | 240,417 | 204,687 | 240,417 | 204,687 | ||||||||
Net increase in policyholder deposits | 8,182 | 9,691 | 8,182 | 9,691 | ||||||||
Net cash received from financial assets at fair value | ||||||||||||
through profit or loss | 12,096 | - | 18,426 | 750 | ||||||||
Net cash received from financial liabilities at fair value | ||||||||||||
through profit or loss | 1,893 | 181 | - | - | ||||||||
Cash received from other operating activities | 2,749 | 2,439 | 1,348 | 1,123 | ||||||||
Sub-total of cash inflows from operating activities | 265,337 | 216,998 | 268,373 | 216,251 | ||||||||
Cash paid for claims | (53,385) | (40,254) | (53,385) | (40,254) | ||||||||
Net cash paid for reinsurance business | (193) | (176) | (193) | (176) | ||||||||
Cash paid for brokerage and commission fees | (28,140) | (31,696) | (28,140) | (31,696) | ||||||||
Cash paid for policyholder dividends | (3,838) | (1,637) | (3,838) | (1,637) | ||||||||
Cash paid to and for employees | (6,250) | (5,912) | (6,012) | (5,640) | ||||||||
Cash paid for taxes and surcharges | (4,255) | (4,947) | (3,684) | (4,381) | ||||||||
Net cash paid for financial assets at fair value | ||||||||||||
through profit or loss | - | (683) | - | - | ||||||||
Cash paid for other operating activities | (8,044) | (6,384) | (8,017) | (5,959) | ||||||||
Sub-total of cash outflows from operating activities | (104,105) | (91,689) | (103,269) | (89,743) | ||||||||
Net cash flows from operating activities | 161,232 | 125,309 | 165,104 | 126,508 | ||||||||
Wang Bin | Huang Xiumei | Li Mingguang | Hu Jin |
Chairman | Vice President in | Chief Actuary | Head of |
charge of Accounting Affairs | Financial Department |
16
4.3 Cash flow statement for the first quarter of 2021 (unaudited) (continued)
RMB million (Unless otherwise stated) | |||||||||||
For the three months | For the three months | ||||||||||
ended 31 March | ended 31 March | ||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||
Group | Group | Company | Company | ||||||||
2 Cash flows from investing activities | |||||||||||
Cash received from sales and redemption of | |||||||||||
investments | 170,016 | 225,176 | 168,044 | 221,265 | |||||||
Cash received from investment income | 42,280 | 34,741 | 39,182 | 34,102 | |||||||
Net cash received from disposals of fixed assets, | |||||||||||
intangible assets and other long-term assets | 19 | 2 | 19 | 2 | |||||||
Net cash received from securities purchased under | |||||||||||
agreements to resell | 608 | - | - | - | |||||||
Net cash received from the disposal of subsidiaries | |||||||||||
and other business units | - | 591 | 30 | 953 | |||||||
Sub-total of cash inflows from investing activities | 212,923 | 260,510 | 207,275 | 256,322 | |||||||
Cash paid for investments | (320,236) | (283,748) | (329,960) | (273,907) | |||||||
Net increase in policy loans | (11,542) | (4,461) | (11,542) | (4,461) | |||||||
Cash paid for acquisition of fixed assets, intangible | |||||||||||
assets and other long-term assets | (1,064) | (1,738) | (980) | (1,706) | |||||||
Net cash paid from securities purchased under | |||||||||||
agreements to resell | - | (27,118) | (657) | (28,619) | |||||||
Sub-total of cash outflows from investing activities | (332,842) | (317,065) | (343,139) | (308,693) | |||||||
Net cash flows from investing activities | (119,919) | (56,555) | (135,864) | (52,371) | |||||||
Wang Bin | Huang Xiumei | Li Mingguang | Hu Jin |
Chairman | Vice President in | Chief Actuary | Head of |
charge of Accounting Affairs | Financial Department |
17
4.3 Cash flow statement for the first quarter of 2021 (unaudited) (continued)
RMB million (Unless otherwise stated) | |||||||||||||
For the three months | For the three months | ||||||||||||
ended 31 March | ended 31 March | ||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||
Group | Group | Company | Company | ||||||||||
3 Cash flows from financing activities | |||||||||||||
Cash received from investment | 3,741 | 4,479 | - | - | |||||||||
Including: Cash received from the investment | |||||||||||||
of non-controlling interests by | |||||||||||||
subsidiaries | 3,741 | 4,479 | - | - | |||||||||
Cash received from borrowings | - | 124 | - | - | |||||||||
Sub-total of cash inflows from financing activities | 3,741 | 4,603 | - | - | |||||||||
Cash paid for dividends and interests and repaid | |||||||||||||
for lenders | (2,090) | (2,107) | (1,991) | (1,871) | |||||||||
Net cash paid for securities sold under agreements | |||||||||||||
to repurchase | (13,775) | (53,743) | (13,890) | (54,551) | |||||||||
Cash paid for other financing activities | (754) | (549) | (340) | (263) | |||||||||
Sub-total of cash outflows from financing activities | (16,619) | (56,399) | (16,221) | (56,685) | |||||||||
Net cash flows from financing activities | (12,878) | (51,796) | (16,221) | (56,685) | |||||||||
4 Effect of changes in foreign exchange rate on cash | |||||||||||||
and cash equivalents | (30) | 16 | (33) | 23 | |||||||||
5 Net increase in cash and cash equivalents | 28,405 | 16,974 | 12,986 | 17,475 | |||||||||
Add: Opening balance of cash and cash equivalents | 56,629 | 53,306 | 50,692 | 48,802 | |||||||||
6 Closing balance of cash and cash equivalents | 85,034 | 70,280 | 63,678 | 66,277 | |||||||||
Wang Bin | Huang Xiumei | Li Mingguang | Hu Jin |
Chairman | Vice President in | Chief Actuary | Head of |
charge of Accounting Affairs | Financial Department |
18
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China Life Insurance Co. Ltd. published this content on 28 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2021 08:38:08 UTC.