China Life Nine-Month Profit Estimated to Have Tumbled 60%by
Insurer’s profit in year-earlier period was 33.84 billion yuan
Declines in investment income hurt profit, China Life says
China Life Insurance Co., the nation’s largest insurer, estimated that profit in the first nine months fell 60 percent as investment income declined, said Li Yinghui, a Beijing-based investor relations officer, on Tuesday.
China Life’s net income attributable to equity holders in the first nine months of last year was 33.84 billion yuan ($5 billion), or 1.2 yuan per share, the company said in a filing with the Hong Kong stock exchange. China Life didn’t provide a profit figure for the same period this year. Its shares fell 2.2 percent in Hong Kong at 11:28 a.m. and 1.q percent in Shanghai.
The benchmark Shanghai Composite Index has tumbled 13 percent so far this year, hurting the value of Chinese insurers’ stock holdings. China Life reported that its first-half profit tumbled 67 percent as market declines hurt investment returns.
“The estimated decrease in the results for the third quarter of 2016 is mainly attributable to the decrease in investment income,” China Life said in the statement. Also contributing to the decline was an update to investment yield assumptions used to calculate reserves for traditional insurance products, the company said.