, China

China Life reports slow increase of 1.3% in net profit in 2021

Growth was dragged by a decline in new business value and personnel challenges.

China’s biggest life insurer China Life Insurance has had a slow year, reporting only a 1.3% increase in net profit in 2021.

Profits were mostly dragged by new business value (NBV) which fell by 23% to $7.04b, implying a 31% decline in the second half of 2021 according to a report by OCBC Investment Research.

Individual agent NBV was also down 26% year-on-year (YoY) to $6.74b (accounting for about 96% of total NBV). The report identified that the decline of individual agent NBV was partly due to a smaller agent force, which fell 40% in 2021 due to continued challenges from the pandemic.

According to the analyst of the report, there the first half of 2022 has a challenging outlook with the recent resurgence of the pandemic in China to weigh in further on consumer sentiment and willingness to add longer-term protection products.

“Key issues we are keeping a watch on for the coming quarters include updates on the strategy of its new chairman, agency force recruitment trends as well as efforts on enhancing agency productivity and retention rate of its existing sales force,” the report said.

You may also like:

Allianz acquires Aetna’s Thai business 

Asia suffered $72b weather and catastrophe-related losses in 2021

Hong Kongers might be missing out these tax benefits on insurance products

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Filipino gamers hold promise for FWD
The insurer plans to support other games and aspects of the gaming ecosystem beyond esports.