China Life Reports Huge Revenue Generated Life Insurances

A look at the company’s profile:

China Life Insurance Co. Ltd. [002628:HK] is a Chinese based financial company that focuses mainly in the offering of insurance services. Some of the insurance services that are been offered by the company are based on life, accident, and health insurance products and services. The company conducts its business activities within the Chinese domestic regions and no involvement in the oversea regions. China Life was founded and incorporated in February 1949 while its headquarter is located at Beijing, China. The executive leader of the company is Bin Wang with up to 104,160 other employees currently working for the company.

A look at the previous annual financials:

A look at the past annual financial performances of the company shows some steady and consistent growth in most of the major financial indicators. Some of the factors that have been fostering the company’s financial performances all these years are (1) rapidly population growth of China and other neighboring countries, (2) increasing rate of demand and involvement in insurances services and (3) few number of companies operating in the business specialty. A look at the financial report of the Fy20 period been showcased by the management of the company, shows that there is significant improvement in most of the major financial indicators. From the report of the Fy20 period been posted by reuters, some of the major financial indicators such as total revenue, net income and total debt performed as follows;

Total revenue: The financial result of the Fy20 that was posted by reuters revealed that the total revenue generated from business improved positively to CNY804.961 billion which represents an increment by 10.35% year-on-year as compared and analyzed from the CNY729.47 billion that was reported in the Fy19’s financial result. The financial result also diversified that the company’s life, health, accident and others business generated revenue quota of CNY653.09 billion (+9.81%), CNY120.39 billion (+10.85%), CNY16.53 billion (+6.77%) and CNY17.38 billion (+41.43%) respectively.

Net income: The financial report of the company for the Fy20 period revealed that the net income decreased to CNY50.26 billion which represents a decrease by 13.76% year-on-year as compared and analyzed from the CNY58.28 billion that was reported in the Fy19’s financial result. The company has been recording high expenses rate which limits or affects the amount raise as profit by the company.

Total debt: The financial data that was posted by reuters also highlighted that the total debt accumulated by the company slightly decreased to CNY57.21 billion which represents a decrease by 1.56% year-on-year as compared and analyzed from the CNY58.12 billion that was reported in the Fy19’s financial result.

Sources:

https://www.marketscreener.com/quote/stock/CHINA-LIFE-INSURANCE-COMP-6499411/company/

https://www.reuters.com/companies/2628.HK/financials/balance-sheet-annual

https://www.reuters.com/companies/2628.HK/financials/income-statement-annual

https://www.bloomberg.com/profile/company/2628:HK