China Life profit drops to 47b yuan for three quarters
China Life Insurance (2628) said its net profit for the first three quarters fell 18.4 percent to 47.08 billion yuan (HK$54.36 billion).
The decline is mainly due to the update of discount rate assumptions for reserves of traditional insurance contracts, the adjustment of the pre-tax deduction policy, and the change in gross investment income, the insurer said.
In the first nine months, China Life's operating income increased by 10.8 percent to 691.57 billion yuan. The new business value grew by 2.7 percent year-on-year.
The third-quarter net profit dropped by 17.7 percent to 16.54 billion yuan.
Meanwhile, the People's Insurance Co (Group) of China (1339) also saw its net profit drop by 12.3 percent to 18.74 billion yuan for the first three quarters.
The insurance income grew 3.6 percent to 456.13 billion yuan during the period, while investment income rose by 21.6 percent to 44.89 billion yuan.
PICC's third-quarter net profit inched up 4.8 percent to 6.13 billion yuan.