China Life net profit surges 94.8% in 2007

Updated: 2008-03-26 09:36

HONG KONG  - The net profit of China Life, a Chinese mainland-based insurance giant, surge 94.8 percent year on year to 38.88 billion yuan (5.48 billion US dollars), the company said in its annual results released Tuesday.

The results were within market expectations, analysts said.

Earnings per share was at 1.38 yuan (0.19 US dollars). The directors proposed an annual dividend of 0.42 yuan per share for 2007 to all shareholders, the company said.

The life insurance leader said its revenues for 2007 rose 29.9 percent year on year to 191.37 billion yuan (26.95 billion US dollars). Gross written premiums and policy fees added 12.5 percent to reach 111.89 billion yuan (14.34 billion US dollars).

Net investment income reflected in the operating results was 44. 02 billion yuan (6.2 billion US dollars), representing a surge of 76.5 percent year on year.

Company president Wan Feng said the growth momentum of China's insurance sector remained strong in 2007, with investment yields on insurance funds reaching new high and the company continued to focus on sales of traditional and participating products.

The company maintained its leading position with a market share of 39.7 percent in life insurance in China while trying to optimize its business structure, he said.

Looking ahead, China Life said it expected keen competition as well as uncertainty in the capital markets in 2008, adding that it would continue to reform operational and management systems, transform its model of development and optimize business structure.

Established in Beijing in 2003 and listed in New York, Hong Kong and Shanghai, China Life is a leading life insurance company in the Chinese mainland. Its assets totaled 933.7 billion yuan as of December 31, 2007, up 22.1 percent year on year. (7.1 yuan = 1 US dollar)

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