Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

China Life Says 2012 Profit May Fall 40% on Market Slide

China Life Insurance Co., the nation’s biggest insurer, said profit probably fell about 40 percent last year on lower investment yields and increased impairment losses because of weakness in capital markets. Shares dropped.

Net income was 18.3 billion yuan ($2.9 billion) for 2011, the Beijing-based company said in a statement to the Hong Kong stock exchange yesterday. The insurer in October reported its first quarterly loss since 2008, at 2.2 billion yuan. Profit for the first nine months of 2012 was 7.4 billion yuan, down 56 percent from the same period a year earlier.

“That’s in line with market expectations as they already reported a big profit decline for the first three quarters,” said Olive Xia, a Shanghai-based analyst at Core Pacific-Yamaichi International Ltd. “The mark-to-market gains in equity holdings in the fourth quarter can’t yet be booked as income due to accounting rules, but the first quarter this year should look better as they’ll have opportunities to reduce positions” and lock in profit, she said.

The benchmark Shanghai Composite Index slid 5.2 percent in the first nine months of 2012, eroding the value of insurers’ stock holdings, as China’s economic expansion slowed. China Life booked 29 billion yuan in impairment losses for that period, an almost fivefold gain from a year earlier. The equity gauge rebounded 8.8 percent in the fourth quarter and 4.3 percent so far this year amid signs of an acceleration in economic growth.

China Life declined 1.7 percent to HK$22.90 as of 9:36 a.m. in Hong Kong trading, while the benchmark Hang Seng Index fell 0.2 percent. The shares are down 8.7 percent this year, while the Hang Seng Index is up 1.4 percent.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.