China Life Insurance Co. Ltd. Class A · SSE:601628
China Life Insurance Co. Ltd. Class A — H1 2007 Earnings Presentation
29 slides from China Life Insurance Co. Ltd. Class A's earnings presentation, Aug 28, 2007
Slide 1: 2007 Interim Results
2007 Interim Results 28 August 2007
Slide 2: Forward-looking Statements
Forward-looking Statements Certain statements contained in this presentation may be viewed as “forward-looking statements” with in the meaning of Section 21E of U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other
Slide 3: Agenda
Agenda Section I Highlights Section II Business Review Section III Financial Summary Section IV Investment Performance -2-
Slide 4: Section I Highlights
Section I Highlights
Slide 5: Outstanding Results in First Half 2007
Outstanding Results in First Half 2007 GWP & policy fees RMB 63,753 million + 16.8% Net profit RMB 23,289 million + 159.7% Gross investment income RMB 37,175 million + 111.3% Gross investment yield 5.19% + 1.9 percentage points Total assets RMB 849,804 million + 11.2 over 2006 Shareholder’s equity R
Slide 6: Continued Market Leadership
Continued Market Leadership Life Insurance Company Continued Market Leadership Market Share 1H2007 2005 2006 1H2007 27% China Life 44% 45% 47% 47% Ping An 16% 17% 16% (Life) 10% China Pacific 10% 9% 10% 16% (Life) China Life Ping An(Life) Others 30% 29% 27% China Pacific(Life) Others Source: CIRC No
Slide 7: Improving Corporate Governance Maximizing Corporate Value
Improved Corporate Governance In 1H2007, the Company completed a self-review on corporate Corporate governance according to CSRC requirements. The self-review Governance report was approved by the board of directors on 12 June 2007 Self-Review and subsequently made public after being successfully ap
Slide 8: Proactively Meeting Our Social Responsibility
Proactively Meeting Our Social Responsibility Established China life Assisted in building 18 Charity Foundation with China Life Long March an initial donation Primary Schools of RMB 50 million Focusing on people, caring for life, creating value, serving society Co-launched the Healthy Actively parti
Slide 9: Our Honors
Our Honors 2007 Fortune 500 Ranked 192th, 6th amongst all Chinese companies Our Goals Fortune magazine 2007 World-Famous Brand 500 7th amongst Chinese companies Learning and Word Brand Organisation and USCGC innovation Top 10 Most Valuable Brand Names of China World Brand Lab Optimising resources Mo
Slide 10: Opportunities and Challenges
Opportunities and Challenges Opportunities Challenges Stable macro-economic growth drives robust demand for insurance products. Interest rate hikes and regulatory changes including insurance product Furtherance of Social Security Reform, pricing by CIRC may affect life insurance expanding soci
Slide 11: Section II Business Review
Section II Business Review
Slide 12: Continuous Business Growth
Continuous Business Growth Gross written premiums Gross written premiums and policy fees RMB million RMB million 17.1% 58,854 63,753 50,241 8% 16. 54,580 1H2006 1H2007 Deposits RMB million 4.4% 63,704 60,999 1H2006 1H2007 1H2006 1H2007 - 11 -
Slide 13: Optimized Business Structure
Optimized Business Structure Robust growth in 1st-year GWP Increased percentage of 1st-year regular GWP in FYP RMB million 22.0% 17,337 14,206 93% 92% 1H2006 1H2007 Strong increase in 1st-year regular GWP RMB million % 23.9 16,173 1H2006 1H2007 13,057 1H2006 1H2007 - 12 -
Slide 14: Steady Growth in Individual and Short-term Businesses
Steady Growth in Individual and Short-term Businesses Individual business Group business Accident and short-term health business RMB million RMB million RMB million Short-term Health Accident % (1.5%) 18.2 56,687 8.3% 1,097 1,080 47,958 3,176 2,853 2,672 2,810 1H2006 1H2007 1H2006 1H2007 1H2006 1H20
Slide 15: Distribution Channels Reinforced
Distribution Channels Reinforced Most extensive nationwide distribution network Strongest agent force Largest direct sales force Largest bancassruance network Over 650,000 exclusive agents Over 12,000 direct sales Over 90,000 bancassurance About 17,000 field offices representatives outlets
Slide 16: Business Innovation
Business Innovation Marketing innovation We have built a collection and repeat sales team comprising 25,000 individual agents. Channel innovation We are building a team of financial advisors to serve high-end individual We have been test-running our customers in some first- and tele-sales cent
Slide 17: Customer Service Innovation
Customer Service Innovation Join hands with China Life for a Life of Harmony campaign and first China Life Customer Day Customer – June 16 of every year set as “China Life Customer Day” services China Life 1+N customer service brand innovation – Standardise VIP service plan and supporting manual
Slide 18: Business Strategy in 2H2007
Business Strategy in 2H2007 First- and second-tier cities are the focus of our geographic Balanced growth strategy. We will continue to reinforce our leadership in first- and between urban second-tier cities. and rural market Rural market is an important arena for future competition. We will fur
Slide 19: Section III Financial Summary
Section III Financial Summary
Slide 20: Strong Revenue Growth
Strong Revenue Growth Net premiums earned and policy fees Total revenues RMB million RMB million 16.9% 63,417 54,248 101,429 .6 % 39 72,665 1H2006 1H2007 Net investment income and realised/unrealised gains RMB million Net Investment Income Net Realized Gains Net Fair Value Gains 24,071 % 2. 2 11 11,
Slide 21: Enhanced Cost Efficiency
Enhanced Cost Efficiency Administrative & acquisition-related expenses as % of total revenues Note RMB million Administrative and Consolidated cost ratio Enhanced budget management acquisition-related cost 15,484 and optimised financial resources allocation 10,878 Strengthened fixed asset management
Slide 22: Improved Profitability and Return to Shareholders
Improved Profitability and Return to Shareholders Strong profit growth Increased return to shareholders RMB million RMB Net profit ROE Basic and diluted EPS 23,289 15.1% 0.82 e tag n r cents .49 i pepo % 7 B0 9.7 4. RM 15 10.4% 8,966 0.33 1H2006 1H2007 1H2006 1H2007 1H2006 1H2007 - 21 -
Slide 23: Solid Financial Strength
Solid Financial Strength Growing total assets Strong solvency ratio RMB million 11.2% 849,804 764,395 440% 350% 12/31/2006 06/30/2007 Increasing shareholders’ equity RMB million 12/31/ 2006 06/30/2007 % 19.9 167,493 139,665 Solvency ratio reinforced by changes in solvency reporting standards set by
Slide 24: Section IV Investment Performance
Section IV Investment Performance
Slide 25: Substantial Increase in Investment Assets and Investment Income
Substantial Increase in Investment Assets and Investment Income Investment assets Total investment income RMB million RMB million % 37,175 1.3 11 % 11.6 766,325 17,596 686,804 1H2006 1H2007 Net investment income RMB million 24,071 % 2.2 11 11,341 12/31/2006 06/30/2007 1H2006 1H2007 Note: Investment
Slide 26: Significant Increase in Investment Yield
Significant Increase in Investment Yield Significant increase in Favourable market conditions investment yield Yields from fund and stock investment 6% improved substantially thanks to a bullish market. More equity investment opportunities 5% 5.19% opened along with new investment channels, whic
Slide 27: Optimised Investment Portfolio
Optimised Investment Portfolio 2007 1H 2006 Change Debt securities 51.8% 52.1% 0.3% Term deposits 22.5% 25.6% 3.1% Equity securities 16.7% 13.9% 2.8% Cash and cash 7.5% 7.3% 0.2% equivalents Others 1.5% 1.1% 0.4% - 26 -
Slide 28: Investment Innovation and Expansion
Investment Innovation and Expansion Actively look for Continue to seek investment opportunities strategic investment in infrastructure sector opportunities such as energy and transportation Explore investment innovation in light of Start investing overseas future integrated on a progressive basis op
Slide 29: Thank you!
Thank you! - 28 -
China Life Insurance Company — H1 2007 Earnings Presentation on 6ix