China Life Insurance Co equity, debt and subsidiaries

Accuracy score :
97%

China Life Insurance Co

Summary (from the latest annual and quarterly  report – 2018)

  • Total equity: 48.5 billion USD
  • Market Cap is 60.6 billion USD ( the last price of the stock is 10.74 USD)
  • Commanding around 19% share, China Life Insurance is a dominant player in the Chinese life insurance industry. The firm offers group and individual life insurance through exclusive agents, bancassurance, and other marketing platforms
  • Total equity has increased from 45.5 billion USD in 2016 to 48.5 billion in 2018
  • The company has 7 billion USD in cash on account
  • Total equity – cash on account = 48.5 billion USD – 7 billion USD = 41.5 billion USD
  •  In 2018 the total debt was 3 billion USD                                                                                                                                               (In 2016 total debt was 8 billion USD)
  • The company's revenue has increased in the latest 2017 annual report  to 96.5 billion USD from 81 billion in 2016
  • Net income in 2017 was 4.8 billion USD, Net income in 2016 was 2.85 billion USD
  • In 2017, the company paid 1 billion USD dividend to its shareholders

 

Opinion about the company

Fundamentally it is a good company and in the future, we can expect its growth (Total debt is 3 billion USD, big amount of cash on company's account, ROE is around 11 %).

 

China Life Insurance company is a large state-owned financial insurance enterprise. Commanding around 19% share, China Life Insurance is a dominant player in the Chinese life insurance industry. The firm offers group and individual life insurance through exclusive agents, bancassurance, and other marketing platforms. While the bulk of profits stem from life insurance policies, additional operations include short-term policies such as accident and health insurance. The company is currently undergoing a business transformation toward the sale of long-term protection products and away from short-term and single-premium products. China Life has more than 600,000 agents nationwide, making its cost of acquiring new customers relatively low.

China Life has been listed among “The Fortune Global 500” for 16 consecutive years, ranking 42nd in 2018, a drastic increase compared with 290th in 2003. After the dual-listing in New York and Hong Kong in December 2003, China Life Insurance Company Limited returned to China A share market in January 2007. It is the first insurance company triple-listed in New York, Hong Kong and Shanghai.

 

China Life Insurance standalone subsidiaries and acquisitions are :

  • In 2016, China Life became the largest single shareholder of China Guangfa Bank with 43.686 percent of the total shares (worth around 5 billion USD)
  • Other acquisitions include : CITIC Securities, Soochow Securities, Bank of Hangzhou, China Great Wall Asset Management Co, COFCO Futures and Chongqing Trust (worth around 4 billion USD)
  • China Life had invested around 8 billion USD in emerging industries. Successful investing stories involved model enterprises or projects like DiDi, Uber, Alibaba Group, Ant Financial, Jingdong, Shunfeng Express, Baidu Fund, and Cainiao Logistics Network, etc.
  • China Life had invested around 15 billion USD in: health and senior care sectors, sectors such as electric power, energy, consumption and telecommunication

 

 

Total =32 billion USD

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