China Life Insurance Co., Ltd. (referred to as China Life) has been incurring losses for 8 consecutive years, with total losses amounting to 1.8 billion RMB. High surrender rates, compliance risks, and high cost liabilities have put China Life on the brink of survival.
Established in 2015, China Life has faced operational challenges since its inception. According to a report by “Manager Magazine” on May 26, the company’s annual reports from 2016 to 2024 have indicated varying figures in terms of insurance business income. From 2016 to 2024, the company achieved insurance business income (based on annual disclosure) of 125 million yuan, 435 million yuan, 1.336 billion yuan, 2.023 billion yuan, 3.273 billion yuan, 5.164 billion yuan, 6.514 billion yuan, 5.739 billion yuan, and 5.25 billion yuan. During the same period, the company’s net profits were 5 million yuan, -142 million yuan, -156 million yuan, -57 million yuan, -94 million yuan, -66 million yuan, -251 million yuan, -623 million yuan, and -494 million yuan respectively. The data shows that the cumulative losses have exceeded 1.8 billion yuan over the past nine years.
In terms of business growth rate, although premium income rose from 125 million yuan in 2016 to 65.14 billion yuan in 2022, there was an 11.89% year-on-year decline in premium income in 2023, marking the first negative growth since its establishment. By 2023, the net loss reached 623 million yuan, representing a 148% increase from the previous year.
China Life’s first quarter report for this year shows that the company achieved insurance business income of 20.08 billion yuan in the first quarter, a significant decrease of 35.3% year-on-year, and a net profit of 250 million yuan. The financial report indicates that due to market conditions, the growth of new policy premiums has been weak, but the profit situation has slightly improved compared to the same period last year. Nevertheless, the downward trend in interest rates has led to a continuous expansion of non-operating losses.
As of the end of the first quarter of 2025, China Life’s core solvency adequacy ratio and comprehensive solvency adequacy ratio were 70.6% and 131.4% respectively, with solvency nearing the red line for monitoring. According to regulatory requirements, the core solvency adequacy ratio of insurance companies should not be less than 50%, and the comprehensive solvency adequacy ratio should not be less than 100%.
China Life Insurance Co., Ltd. is a nationwide life insurance company approved by the China Banking and Insurance Regulatory Commission, jointly initiated and founded by China United Insurance Group Co., Ltd. and China United Property Insurance Co., Ltd., with its headquarters in Beijing and a registered capital of 2.6 billion RMB.