China Life’s total premiums, embedded value, and new business value in 2023 will continue to lead the industry
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On March 28, China Life Insurance Company Limited (hereinafter referred to as “China Life Insurance Company”) held simultaneous performance press conferences in Beijing and Hong Kong, attracting more than 100 domestic and foreign media to participate in offline reporting. In the past year, my country’s macro-economy has shown an upward trend, but at the same time, complexity continues to rise. In the changing market environment, China Life Insurance Company has maintained its strategic focus and its operating performance has continued to improve.
Annual report data shows that in 2023, China Life Insurance Company’s embedded value, total premiums, and total assets exceeded 1.26 trillion, 640 billion, and 5.89 trillion respectively, all reaching new highs, ranking first in the industry. At the same time, new single premiums and new business value achieved double growth, with one-year new business value rising to 36.860 billion, maintaining its leading position in the industry.
“Stronger resilience” was the footnote written by Li Mingguang, President of China Life Insurance Company, on the performance of the past year at the results conference. He said, “In 2023, in the face of profound changes in the internal and external situation, the company will coordinate the current and long-term, debt With assets, development and security, we not only seize the opportunity of restorative development and quickly form a positive trend; we also take long-term measures to consolidate our roots and lay a good foundation for the company’s long-term growth.”
Those who serve the “big country” are powerful and promising
Serving the real economy, the stock investment scale exceeds 4 trillion
Finance is an important weapon of the country and the blood of the national economy. The Central Financial Work Conference emphasized that the insurance industry should play its role as an economic shock absorber and social stabilizer. China Life Insurance Company, as the “leader” of the industry, actively serves the national strategy and contributes to social and economic construction.
In 2023, the coverage and availability of inclusive insurance services of China Life Insurance Company will be significantly improved. Annual report data shows that the company’s critical illness insurance covers nearly 350 million people, long-term care insurance projects cover more than 38 million people, and the number of urban customized insurance projects reaches a record high; it actively builds a multi-level pension insurance system, and its commercial pension insurance business develops rapidly. The pilot program of personal pension business has been promoted, and the pension service system and ecological construction have been continuously improved.
At the same time, China Life Insurance Company’s ability to serve the real economy continues to increase. In 2023, the company’s stock investment in serving the real economy will exceed 4 trillion yuan, and its green investment stock will exceed 460 billion yuan. We continued to deepen the construction of the ESG system and won the “2023 Forbes China ESG Innovation Enterprise” award. Effectively supporting the overall revitalization of rural areas, China Life Insurance Company’s “Rural Revitalization Insurance” became the only insurance industry project selected for the “4th Global Best Poverty Reduction Case”.
Practice high-quality development in both quantity and quality
Leading the industry in embedded value, total premiums and new business value
2023 is the year when the economy resumes development after the epidemic prevention and control period. The macroeconomic environment is becoming more complex and uncertain, interest rates are running at low levels, and the stock market structure is clearly differentiated. Under the changing circumstances, China Life Insurance Company persisted in coordinating the effective improvement of quality and reasonable growth of quantity, and while helping to promote economic and social development, it also achieved its own high-quality development.
Annual report data shows that in 2023, the embedded value and total premiums of China Life Insurance Company were 1.260567 billion yuan and 641.380 billion yuan respectively, both reaching new highs and ranking first in the industry. New policy premiums were 210.813 billion yuan, a year-on-year increase of 14.1%; first-year regular premiums were 112.573 billion yuan, a year-on-year increase of 16.7%; first-year regular premiums of ten years and above were 49.522 billion yuan, a year-on-year increase of 18.4%, three The growth rates exceeded double digits, hitting a new high in the past three years.
At the same time, the total assets and investment assets of China Life Insurance Company reached new peaks, reaching 5.89 trillion yuan and 5.67 trillion yuan respectively; the 14-month policy persistence rate increased by 7.4 percentage points; the number of long-term insurance policies in effect increased to 3.28 Billion copies. The value of one year’s new business is 36.860 billion yuan under the economic assumption in 2023, with a growth rate of 11.9% on the same basis; it is 41.035 billion yuan under the economic assumption in 2022, with a growth rate of 14% on the same basis. Achieved rapid growth on a high base and continued to lead the industry.
In addition, China Life Insurance Company has strengthened its asset and liability management, and its insurance business has continued to optimize its structure while maintaining scale growth. In a complex market environment, the company adopts a long-term perspective that spans cycles and allocates large categories of assets. Under International Financial Reporting Standards, the net profit attributable to shareholders of the parent company in 2023 will reach 46.181 billion yuan. The overall scale is still considerable, demonstrating strong development resilience.
Focus on key reforms, whether they are successful or not
Individual insurance sales force exceeds 630,000, the first in the industry to stabilize
The government work report released by this year’s Two Sessions stated that “vigorously promote the construction of a modern industrial system and accelerate the development of new productivity. Continuously shape new drivers of development and new advantages, and promote social productivity to achieve new leaps.” In the face of new trends in social and economic development, China Life Insurance Company adheres to the principle of reform and innovation, uses new quality productivity to build a new development model, continues to promote a series of reforms including the “Eight Major Projects”, continuously improves the ability to accurately deliver products and services, and promotes the upgrading of business models.
First, the upgrade of operations and customer services and the continuous advancement of digital construction of financial technology. According to the information disclosed in the annual report, China Life Insurance Company’s nationwide intensive shared operation model, the first in the industry, has completed full coverage of the production field, and the timeliness of underwriting, preservation, and claims settlement has increased by more than 27%. Continue to promote innovative service models such as “claims prepayment” and medical electronic invoice reminders for claim settlement. The pilot enables manual claims settlement throughout the entire process, and the average processing time is increased by over 90%. China Life insists on being characterized by high technology, high efficiency and high quality, creating “simple, quality and warm” China Life services and accelerating the development of new productivity.
Secondly, the reform of the marketing system has been fully rolled out, and the quality and quantity of the sales team have improved. The reform of the marketing system of China Life Insurance Company continues to advance. The implementation of the three major reform measures of upgrading the existing team, building a new team, and empowering the team has accelerated, and the transformation and upgrading of the sales team towards specialization, professionalism, and comprehensiveness has accelerated. Annual report data shows that as of the end of 2023, the company’s individual insurance sales force ranks first in the industry at 634,000, and its team size is the first to stabilize in the industry; the monthly average first-year regular premium per capita has increased by 28.6% year-on-year, and the team’s production capacity has steadily increased.
At the same time, China Life Insurance Company regards the construction of health care ecology as a long-term development strategy. The construction of the elderly care ecosystem has accelerated, the layout of elderly care projects in key cities has been gradually expanded, and the diversified service supply capabilities have continued to improve. Annual report data shows that the company will add 7 new institutional pension project layouts and 5 urban home-based pension model pilots in 2023, build a team of exclusive planners for China Life Pension, and actively participate in the construction of the third pillar of the national pension insurance system, personal pension business The scale ranks at the forefront of the industry.
Efforts to prevent and control risks are effective
C-ROSS Phase II SARMRA assessment remains at the forefront of the industry
Insurance is an industry that operates and manages risks. With the establishment of the goal of “financial power”, high-quality development continues to advance, which also puts forward new requirements for risk prevention and control in the insurance industry.
“We insist on taking risk prevention and control as the eternal theme of our work,” Bai Tao, chairman of China Life Insurance Company, said at the results conference. As the world’s largest life insurance company, China Life Insurance Company has always been a “pioneer” in the industry in building risk prevention and control and compliance management systems. The annual report shows that the company’s score in the C-ROSS Phase II SARMRA assessment is firmly among the top among personal insurance companies, and its comprehensive risk rating continues to maintain a Class A rating. And last year, it successfully passed the dual-standard certification of domestic and international compliance management systems.
In addition, annual report data also shows that in recent years, China Life Insurance Company’s product supply has become more diversified, its investment allocation has been continuously optimized, and its risk prevention and control capabilities have been further improved. Under the new C-ROSS regulations, the company’s core solvency adequacy ratio and comprehensive solvency adequacy ratio reached 158.19% and 218.54% respectively, an increase of 14.6 and 11.8 percentage points respectively from the end of 2022.
Insurance industry has huge potential
Seize development opportunities with four “firsts”
Against the background of the continued improvement of the domestic economy, regarding the development prospects of the industry, Bai Tao said at the performance conference, “China is still one of the most dynamic and potential insurance markets in the world, and China’s personal insurance industry is still at a A period of important strategic opportunities.” But at the same time, he also pointed out, “We also realize that the current market environment has undergone profound changes and the industry has entered a period of high-quality development.”
Bai Tao proposed four “firsts” to set the tone for China Life’s future development.Make high-quality development the top priority.We will insist on accelerating development, continuously promote new business value, embedded value, premium scale, comprehensive strength, and brand influence to new heights, and consolidate our leading position in the domestic market. At the same time, we strive to become better and stronger by benchmarking against world-class standards, and continuously improve our investment management capabilities, product innovation capabilities, cost control capabilities, and customer reach capabilities.The second is to take reform and innovation as the first driving force.Conduct in-depth research on economic and social transformation, accelerate reform and innovation based on China Life’s own advantages and characteristics, seize new opportunities in the silver age economy, new urbanization and other fields, strengthen product and service innovation, expand customer base; accelerate the reform of the marketing system, and strengthen the core competition of the team Strength; actively promote the construction of health care ecosystem and digital transformation, and accelerate the formation of high-quality, efficient and diversified insurance service supply.The third is to regard the talent team as the first resource.Continuously optimize the age structure and professional structure of the team, attract and cultivate a group of professional and market-oriented talents, and provide key support for high-quality development.The fourth is to take preventing and resolving risks as the first guarantee.Strictly implement regulatory requirements, cultivate a compliance culture, enhance the ability to create value through compliance, strictly control key risks, and firmly maintain the bottom line of risk prevention and control.
2023 is an extraordinary year for China’s financial industry. It is also the 20th anniversary of China Life’s share reform and listing. Looking back on the changes over the past two decades, with the rapid development of China’s economy, China Life has achieved performance growth of several times or even dozens of times, and has grown into a “leader” in the global life insurance industry. Looking forward to the future, while promoting its own high-quality development to create long-term value, China Life will focus on five articles: technology finance, green finance, inclusive finance, pension finance, and digital finance to help build a financial power and serve China-style modernization. Continue to contribute “China Life’s power”.
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