China Life Insurance’s NVB could see 17% YoY growth: Nomura

Net profit, on the other hand, could contract 15% YoY.

In the first quarter of 2024 (Q1’24), China Life Insurance's new business value (NBV) could see a robust growth of 17% year-on-year (YoY), according to Nomura research. 

However, net profit might witness a decline of 15% YoY under International Financial Reporting Standards (IFRS), and 6% YoY under the old Accounting Standards for Business Enterprises (ASBE).

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Nomura estimates China Life's net profit to stand at CNY23.3b for Q1’24, marking a 15% YoY decrease, with an annualised return on equity (ROE) dropping by 6.3 percentage points to 19.1%, although still maintaining a decent level. 

Total investment yield could also feel a slight dip of 0.2 percentage points YoY, settling at 4.0%, under the new IFRS accounting standards.