China Life Insurance is set to announce its first-half results on Wednesday. Here are the key details:
Net Profit Forecast
According to an analyst poll conducted by Visible Alpha, China Life is expected to report a 22% increase in net profit, reaching 31.03 billion yuan ($4.28 billion) for the six-month period ending June 30. This compares to a net profit of CNY25.42 billion in the same period last year.
Revenue Forecast
The Visible Alpha poll also estimates a 6.6% year-on-year increase in first-half revenue, reaching CNY551.00 billion.
What to Watch
Premium Income
In the first quarter, China Life saw a 3.9% increase in premium income compared to the previous year, reaching CNY327.22 billion. Investors will closely monitor the rate of growth in this key source of earnings.
Investment Strategy
During the first quarter, China Life adjusted its allocation to bonds due to interest rate increases in certain regions. With domestic bond yields now declining, investors are keenly observing the company's investment strategy. In Q1, investment income rose 6.3% compared to the previous year, reaching CNY57.37 billion.
Sales Force
After facing challenges in agent recruitment and retention during the Covid-19 pandemic, China Life's sales force size appears to have stabilized. Investors are interested in the size and productivity of the sales team. As of March, the company's total sales force numbered approximately 722,000, slightly lower than the figure of 729,000 at the end of 2022 and significantly reduced from 890,000 at the end of 2021.
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