China Life Insurance 2020 net profit tumbles to $7.7b

Gross written premiums rose 8% to $93.6b.

China Life Insurance saw its 2020 net profit drop 13.8% YoY to $7.7b (CNY50.27b), according to an announcement.

The fall was triggered by the combined impact of the update of discount rate assumptions for reserves of traditional insurance contracts, the adjustment of the policy on pre-tax deduction of underwriting and policy acquisition costs adopted in 2019, and the change in gross investment income.

Gross written premiums climbed 8% to $93.6b (CNY612.3b). Premiums from new policies inched up 7% to $29.6b (CNY193.9b), with first-year regular premiums amounting to $17.6b (CNY115.4b) which accounted for 98% of long-term first-year premiums.

The insurer’s embedded value jumped 13.8% to $164b (CNY1.072t).