Exhibit 99.1
CHINA LIFE INSURANCE COMPANY LIMITED
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 2628)
SUMMARY OF SOLVENCY QUARTERLY REPORT OF INSURANCE COMPANY
(FIRST QUARTER OF 2016)
| 1. | BASIC INFORMATION |
| (1) | Basic Information of the Company |
| Name of the Company in Chinese: |  | |||
| Name of the Company in English: | China Life Insurance Company Limited | |||
| Legal Representative: | Yang Mingsheng | |||
| Registered Address: | 16 Financial Street, Xicheng District, Beijing, P.R. China | |||
| Business Scope: | Life, health, accident and other types of personal insurance businesses; reinsurance of the personal insurance businesses; funds management business permitted by national laws and regulations or approved by the State Council of the PRC, personal insurance services, consulting and agency businesses; other businesses approved by the national insurance regulatory departments. (Businesses which are subject to approvals by regulatory departments shall be conducted after the relevant approvals have been obtained.) | |||
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| Business Area: | the People’s Republic of China, for the purpose of this report, excluding the Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan region (the “PRC”) |
| (2) | Shareholding Structure, Shareholders and Their Changes |
| 1) | Shareholding Structure (Unit: ten thousand shares or RMB ten thousand) |
| Category | At the beginning of the period | Changes in number of shares or shareholding percentage during the period | At the end of the period | |||||||||||||||||||||||||||||
| Shares or capital contribution | Percentage (%) | Capital injection by shareholders | Capital reserve transfer or distribution of dividend | Equity transfer | Total | Shares or capital contribution | Percentage (%) | |||||||||||||||||||||||||
RMB ordinary shares | 2,082,353 | 73.67 | — | — | — | — | 2,082,353 | 73.67 | ||||||||||||||||||||||||
Overseas listed foreign shares | 744,118 | 26.33 | — | — | — | — | 744,118 | 26.33 | ||||||||||||||||||||||||
Total | 2,826,471 | 100.00 | — | — | — | — | 2,826,471 | 100.00 | ||||||||||||||||||||||||
| Note: | Currently, there is no feature in the shareholders’ information enquiry platform that can track down the type of shareholders according to the classification of “state-owned shares, corporate legal shares, foreign invested shares and natural person shares”. As such, the above information is presented by the Company based on the shareholding structure as disclosed in the annual report. |
| 2) | Effective Controller |
The effective controller of the Company is the Ministry of Finance of the PRC. The equity and controlling relationship between the Company and its effective controller is set out below:
| Ministry of Finance of the PRC | ||||||
 | 100% | |||||
| China Life Insurance (Group) Company | ||||||
| 68.37% | |||||
| China Life Insurance Company Limited | ||||||
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| 3) | Top Ten Shareholders (in the order of their shareholding percentage in the Company as at the end of the period. Unit: ten thousand shares) |
| Name of shareholder | Nature of shareholder | Changes in during the period | Number of the period | Shareholding period | Number of or frozen | |||||||||||||
China Life Insurance (Group) Company | State-owned | 0 | 1,932,353 | 68.37 | % | 0 | ||||||||||||
HKSCC Nominees Limited | Foreign | -42 | 731,359 | 25.88 | % | 0 | ||||||||||||
China Securities Finance Corporation Limited | State-owned | 3,617 | 55,686 | 1.97 | % | 0 | ||||||||||||
Central Huijin Asset Management Limited | State-owned | 0 | 11,972 | 0.42 | % | 0 | ||||||||||||
Industrial and Commercial Bank of China Limited – China Southern Flexible Allocation of Consumption and Vitality of Hybrid Securities Investment Fund | Other | 2,528 | 5,965 | 0.21 | % | 0 | ||||||||||||
China National Nuclear Corporation | State-owned | 0 | 2,000 | 0.07 | % | 0 | ||||||||||||
China International Television Corporation | State-owned | 0 | 1,845 | 0.07 | % | 0 | ||||||||||||
China Universal Asset Management Co., Ltd – Industrial and Commercial Bank of China Limited – China Universal – Tianfu Bull No. 53 Asset Management Plan | Other | 0 | 1,502 | 0.05 | % | 0 | ||||||||||||
Hong Kong Securities Clearing Company Limited | Foreign | 516 | 1,487 | 0.05 | % | 0 | ||||||||||||
Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund | Other | 43 | 1,243 | 0.04 | % | 0 | ||||||||||||
Total | — | 6,662 | 2,745,412 | 97.13 | % | 0 | ||||||||||||
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| (3) | Subsidiaries, Joint Ventures and Associated Corporations |
| Company name | Type of company | Number of shares held or cost (ten thousand shares or RMB ten thousand) | Shareholding percentage (%) | |||||||||||||||||||||||||
| At the beginning of the period | At the end of the period | Change in amount | At the beginning of the period | At the end of the period | Change in percentage | |||||||||||||||||||||||
1 | China Life (Suzhou) Pension and Retirement Investment Company Limited | Subsidiary | 80,000 | 80,000 | 0 | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||||||||
2 | Annoroad Gene Technology (Beijing) Co., Ltd. | Associated Corporation | 25,000 | 25,000 | 0 | 16.67 | % | 16.67 | % | 0.00 | % | |||||||||||||||||
3 | China Life (Sanya) Healthy Investment Company Limited | Joint venture | 30,600 | 30,600 | 0 | 51.00 | % | 51.00 | % | 0.00 | % | |||||||||||||||||
4 | China Life Pension Company Limited | Subsidiary | 240,516 | 240,516 | 0 | 70.74 | % | 70.74 | % | 0.00 | % | |||||||||||||||||
5 | China Life Asset Management Company Limited | Subsidiary | 240,000 | 240,000 | 0 | 60.00 | % | 60.00 | % | 0.00 | % | |||||||||||||||||
6 | China Life Property and Casualty Insurance Company Limited | Associated Corporation | 600,000 | 600,000 | 0 | 40.00 | % | 40.00 | % | 0.00 | % | |||||||||||||||||
7 | China Guangfa Bank Co., Ltd | Associated Corporation | 308,048 | 308,048 | 0 | 20.00 | % | 20.00 | % | 0.00 | % | |||||||||||||||||
8 | COFCO Futures Company Limited | Associated Corporation | 29,620 | 29,620 | 0 | 35.00 | % | 35.00 | % | 0.00 | % | |||||||||||||||||
9 | Sino-Ocean Land Holdings Limited | Associated Corporation | 225,352 | 225,346 | -6 | 29.99 | % | 29.99 | % | 0.00 | % | |||||||||||||||||
10 | Shanghai Rui Chong Investment Co., Limited | Subsidiary | 619,900 | 619,900 | 0 | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||||||||
11 | Golden Phoenix Tree Limited | Subsidiary | N/A | N/A | N/A | 100.00 | % | 100.00 | % | 0.00 | % | |||||||||||||||||
12 | CL AMP Zengjinbao Money Market Fund | Structured entity | 15,111 | 15,237 | 126 | 57.67 | % | 46.46 | % | -11.21 | % | |||||||||||||||||
13 | CL AMP Zunxiang Bond Securities Investment Fund | Structured entity | 15,001 | 15,001 | 0 | 17.30 | % | 18.22 | % | 0.92 | % | |||||||||||||||||
14 | CL AMP Xinqianbao Money Market Fund | Structured entity | 20,111 | 20,237 | 126 | 78.21 | % | 56.12 | % | -22.09 | % | |||||||||||||||||
15 | CL AMP Core Industry Mixed Fund | Structured entity | 0 | 10,000 | 10,000 | 0.00 | % | 41.69 | % | 41.69 | % | |||||||||||||||||
| Note 1: | The figures shown in the “Number of shares held or cost” under items numbered 1, 2, 3 and 10 in this table are the amount of investment cost (Unit: RMB ten thousand). |
| Note 2: | Golden Phoenix Tree Limited is a company incorporated in Hong Kong. Under the new Companies Ordinance (Cap. 622 of the Laws of Hong Kong) which took effect on March 3, 2014, all Hong Kong companies having a share capital shall adopt a no-par system and the par value system has been abolished. Relevant concepts such as nominal value, share premium and requirement for authorized capital have been abolished. |
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| (4) | Basic Information of the Directors, Supervisors and Senior Management |
| 1) | Basic Information of the Directors |
| Name | Age | Academic qualification (degree) | Commencement date | Position | Approval document No. for job | Positions and part- time jobs held in affiliates and other entities | Key working experience in the recent five years | |||||||
| Yang Mingsheng | 60 | Master’s degree in Economics | Since May 22, 2012 | Chairman, Executive Director | Bao Jian Shou Xian (2012) No. 644 | Chairman of China Life Insurance (Group) Company Chairman of China Life Property and Casualty Insurance Company Limited Chairman of China Life Insurance (Overseas) Company Limited Chairman of China Life Asset Management Company Limited | Mr. Yang has been the Chairman and an Executive Director of the Company since May 2012. He has been the Chairman of China Life Insurance (Group) Company since March 2012, the Chairman of China Life Property and Casualty Insurance Company Limited since March 2012, the Chairman of China Life Insurance (Overseas) Company Limited since January 2013, and the Chairman of China Life Asset Management Company Limited since December 2013. He acted as the Vice Chairman of the China Insurance Regulatory Commission from 2007 to 2012. | |||||||
| Lin Dairen | 57 | Bachelor’s degree in Medicine | Since October 27, 2008 | Executive Director | Bao Jian Shou Xian (2008) No. 1194 | Non-executive Director of China Life Property and Casualty Insurance Company Limited Non-executive Director of China Life Pension Company Limited Non-executive Director of China Life Asset Management Company Limited Chairman of the China Life Foundation Vice Chairman of the Insurance Institute of China Vice Chairman of the Insurance Association of China Director of the Life Insurance Committee of the Insurance Association of China Non-executive Director of China Insurance Security Fund Co., Ltd. | Mr. Lin has been an Executive Director of the Company since October 2008, and was appointed as the President of the Company by the Board in March 2014. He serves concurrently as a Non- executive Director of China Life Property and Casualty Insurance Company Limited, China Life Pension Company Limited and China Life Asset Management Company Limited. He served as the Vice President of the Company from 2003 to March 2014, and an Executive Director and the President of China Life Pension Company Limited from November 2006 to March 2014. | |||||||
| Xu Hengping | 57 | Hunan University, majoring in Finance | Since July 11, 2015 | Executive Director | Bao Jian Xu Ke (2015) No. 718 | Mr. Xu has been the Chief Operating Officer of the Company since August 2010 and the Vice President of the Company since November 2014. | ||||||||
| Xu Haifeng | 56 | Master’s degree in Business Administration | Since July 11, 2015 | Executive Director | Bao Jian Xu Ke (2015) No. 718 | Director of China Life Ecommerce Company Limited | Mr. Xu has been the Business Controller of the Company since February 2014, and concurrently serves as the General Manager of the Hebei Branch of the Company. He has been the Vice President of the Company since November 2014. |
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| Name | Age | Academic qualification (degree) | Commencement date | Position | Approval document No. for job qualification | Positions and part- time jobs held in affiliates and other entities | Key working experience in the recent five years | |||||||
| Miao Jianmin | 51 | Doctorate in Economics | Since October 27, 2008 | Non-executive Director | Bao Jian Shou Xian (2008) No. 1194 | Vice Chairman and President of China Life Insurance (Group) Company Director of China Life Asset Management Company Limited Chairman of Insurance Asset Management Association of China Executive Director of China Finance 40 Forum Director of China World Trade Center Limited Director of China Shimao Investment Company Limited | Mr. Miao has been a Non-executive Director of the Company since October 2008. | |||||||
| Zhang Xiangxian | 60 | Master’s degree in Business Administration for senior management | Since July 24, 2012 | Non-executive Director | Bao Jian Shou Xian (2012) No. 870 | Vice President of China Life Insurance (Group) Company | Mr. Zhang has been a Non-executive Director of the Company since July 2012. | |||||||
| Wang Sidong | 54 | Bachelor’s degree in Arts | Since July 24, 2012 | Non-executive Director | Bao Jian Shou Xian (2012) No. 870 | Vice President of China Life Insurance (Group) Company Director of China Life Pension Company Limited Chairman of China Life Investment Holding Company Limited Director of Shanghai China Insurance Building Director of China World Trade Center Limited Director of China Shimao Investment Limited Company Director of China World Trade Center Co., Ltd. Director of China Huarong Asset Management Co., Ltd. Director of China Life Ecommerce Company Limited | Mr. Wang has been a Non-executive Director of the Company since July 2012. | |||||||
| Liu Jiade | 53 | Bachelor’s degree in Economics | Since July 11, 2015 | Non-executive Director | Bao Jian Xu Ke (2015) No. 718 | Vice President of China Life Insurance (Group) Company Chairman of China Life Pension Company Limited Director of China Guangfa Bank Co., Ltd. Supervisor of Sinopec Sales Company Limited Member of the Accounting Informatization Committee of the Ministry of Finance | Mr. Liu served as the Vice President of the Company from 2003 to March 2014. He is the Vice President of China Life Insurance (Group) Company and the Chairman of China Life Pension Company Limited. | |||||||
| Anthony Francis Neoh | 69 | Bachelor’s degree in Law, Doctorate in Law, honoris causa | Since June 21, 2010 | Independent Director | Bao Jian Shou Xian (2010) No. 710 | Independent Non-executive Director of CITIC Limited Independent Non-executive Director of the Industrial and Commercial Bank of China Co., Ltd. | Mr. Neoh has been an Independent Director of the Company since June 2010. | |||||||
| Chang Tso Tung Stephen | 67 | Bachelor’s degree in Science | Since October 20, 2014 | Independent Director | Bao Jian Xu Ke (2014) No. 864 | Independent Non-executive Director of Kerry Properties Limited Independent Non-executive Director of China Cinda Asset Management Co., Ltd. Independent Non-executive Director of Hua Hong Semiconductor Limited | Mr. Chang has been an Independent Director of the Company since October 2014. |
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| Name | Age | Academic qualification (degree) | Commencement date | Position | Approval document No. for job qualification | Positions and part- time jobs held in affiliates and other entities | Key working experience in the recent five years | |||||||
| Robinson Drake Pike | 64 | Master’s degree in Economics | Since July 11, 2015 | Independent Director | Bao Jian Xu Ke (2015) No. 718 | Member of the four-member Committee of Inspection of Peregrine Fixed Income Limited | Mr. Pike served as the Managing Director of Goldman Sachs and the Chief Representative of the Beijing Representative Office of Goldman Sachs International Bank UK from August 2011 to May 2014. | |||||||
| Tang Xin | 44 | Doctorate degree in Law | Since March 7, 2016 | Independent Director | Bao Jian Xu Ke (2016) No. 150 | Member of the Listing Committee of the Shanghai Stock Exchange Chairman of the Independent Director Committee of the Listed Companies Association of the PRC Independent Director of Harvest Fund Management Co., Ltd. Independent Director of GF Securities Co., Ltd. Independent Director of Oriza Holdings Co., Ltd. | Mr. Tang served as an Independent Director of China Spacesat Co., Ltd. from 2008 to 2014, an Independent Director of each of SDIC Power Holdings Co., Ltd. and Changjiang Securities Company Limited from 2009 to 2013, and an Independent Director of Beijing Rural Commercial Bank Co., Ltd. from 2009 to 2015. |
| 2) | Basic Information of the Supervisors |
| Name | Age | Academic qualification (degree) | Commencement date | Position | Approval document No. for job qualification | Positions and part- and other entities | Key working experience in the recent five years | |||||||
| Miao Ping | 58 | Correspondence College of Yangzhou University, majoring in Economics and Management | Since July 11, 2015 | Chairman of the Supervisory Committee | Bao Jian Xu Ke (2015) No. 718 | Mr. Miao has been the Vice President of the Company since December 2009 and an Executive Director of the Company since July 2014. He became the Chairman of the Supervisory Committee of the Company in July 2015. | ||||||||
| Shi Xiangming | 56 | Bachelor’s degree in Science | Since May 25, 2009 | Supervisor | Bao Jian Shou Xian (2012) No. 870 | Mr. Shi has been a Supervisor of the Company since May 2009, and has been the General Manager of the Supervisory Department of the Company since September 2008. | ||||||||
| Xiong Junhong | 47 | PhD in Finance | Since October 20, 2014 | Supervisor | Bao Jian Xu Ke (2014) No. 864 | Deputy General Manager of the Strategic Planning Department of China Life Insurance (Group) Company | Ms. Xiong has been a Supervisor of the Company since October 2014. | |||||||
| Zhan Zhong | 47 | Bachelor’s degree in Computer and Automation | Since July 11, 2015 | Employee Representative Supervisor | Bao Jian Xu Ke (2015) No. 718 | Mr. Zhan served as the General Manager of the Company’s Qinghai Branch from January 2014 to June 2014. He has been the General Manager of the Individual Insurance Division of the Company (general manager level of provincial branches) since July 2014. | ||||||||
| Wang Cuifei | 52 | Bachelor’s degree in Economic Management | Since July 11, 2015 | Employee Representative Supervisor | Bao Jian Xu Ke (2015) No. 718 | Ms. Wang served as the General Manager of the Sales Inspection Department of the Company from March 2009 to August 2014. She has been the General Manager of the Customer Services Department of the Company since September 2014. |
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| 3) | Basic Information of the Senior Management of the Head Office |
| Name | Age | Academic qualification (degree) | Commencement date | Position | Approval document No. for job qualification | Positions and part- time jobs held in affiliates and other entities | Key working experience in the recent five years | |||||||
| Li Mingguang | 46 | Master’s degree in Economics, EMBA | As Vice President since November 2014 and as Chief Actuary since March 2012 | Vice President, Chief Actuary | Bao Jian Xu Ke (2014) No. 918 | Executive Director of the China Association of Actuaries Special Executive Director of the Insurance Institute of China | Mr. Li became the Vice President of the Company in November 2014, and the Chief Actuary of the Company in March 2012. Mr. Li joined the Company in 1996 and subsequently served as Deputy Director, Director, Assistant to the General Manager of the Product Development Department, Responsible Actuary of the Company and General Manager of the Actuarial Department. | |||||||
| Yang Zheng | 45 | Master’s degree in Business Administration | November 2014 | Vice President | Bao Jian Xu Ke (2014) No. 918 | Member of the eighth session of the Board of the Accounting Society of China Member of the National Accounting Informatization and Standardization Technical Committee Member of the third session of China Insurance Solvency Regulatory Standard Committee Member of the first session of the China Accounting Standards Committee of the Ministry of Finance of the PRC | Mr. Yang became the Vice President of the Company in November 2014. He became the Chief Financial Officer of the Company since April 2013. He served as the Qualified Accountant of the Company since 2006, and an Assistant to the General Manager, the Deputy General Manager and the General Manager of the Finance Department of the Company since 2005. Mr. Yang has been a Director of China Life Asset Management Company Limited since 2009, a Director of Sino-Ocean Land Holdings Limited since 2011, and a Director of China Life Franklin Asset Management Company Limited since 2014. | |||||||
| Xiao Jianyou | 47 | Double Bachelor’s degrees in Medicine and Law | July 2015 | Assistant to the President | Bao Jian Xu Ke (2015) No. 757 | Mr. Xiao became an Assistant to the President of the Company in July 2015. He has been the General Manager of the Company’s Jiangsu Branch since January 2014. From April 2013 to January 2014, he was the Deputy General Manager (responsible for daily operation) of the Company’s Jiangsu Branch. From 2006 to 2013, he held various positions at the Company, including the Deputy General Manager and General Manager of Taizhou Branch in Jiangsu Province, and the General Manager of the Personal Insurance Department, Marketing Director, Assistant to the General Manager and Deputy General Manager of Jiangsu Branch. |
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| Name | Age | Academic qualification (degree) | Commencement date | Position | Approval document No. for job qualification | Positions and part- time jobs held in affiliates and other entities | Key working experience in the recent five years | |||||||
| Zheng Yong | 53 | Master’s degree in Law | June 2013 | Board Secretary | Bao Jian Fa Gai (2013) No. 546 | Mr. Zheng became the Board Secretary of the Company in June 2013. He previously held positions as the Department Head of the Ministry of Justice of the PRC, a practicing lawyer of Beijing Longan Law Firm, China Legal Service Ltd. (Hong Kong) and Beijing DeHeng Law Offices, the Deputy General Manager of the Department of Legal Affairs, the Company Secretary, and the General Manager of the Legal and Compliance Department of the Company, and an Executive Director and Vice President of China Guangfa Bank Co., Ltd. |
| Note: | This table only provides the basic information of senior management officers of the Head Office who are not Directors or Supervisors. For details of other senior management officers of the Head Office, please refer to the respective tables under the basic information of Directors and Supervisors. |
| (5) | Contact Person and Contact Information with Respect to the Public Disclosure of Solvency Information |
| Name of Contact Person: | Wu Hongliang | |||||
| Office Phone Number: | 010-63631778 | |||||
| Fax Number: | 010-66575011 | |||||
| E-mail: | wuhl@e-chinalife.com | |||||
| 2. | KEY INDICATORS |
| Items | Figures of the Current Quarter | Figures of the Preceding Quarter | ||||||
Core solvency surplus (RMB ten thousand) | 45,844,870.75 | 43,822,627.21 | ||||||
Core solvency ratio (%) | 316.24 | % | 324.10 | % | ||||
Comprehensive solvency surplus (RMB ten thousand) | 52,674,711.82 | 50,652,350.11 | ||||||
Comprehensive solvency ratio (%) | 348.45 | % | 359.02 | % | ||||
The latest integrated risk rating | A Category | A Category | ||||||
Gross written premiums (RMB ten thousand) | 20,164,828.56 | 5,351,045.01 | ||||||
Net profit (RMB ten thousand) | 499,208.09 | 68,525.90 | ||||||
Net asset (RMB ten thousand) | 31,269,994.67 | 32,090,817.41 | ||||||
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| 3. | ACTUAL CAPITAL |
| Items | Figures of the Current Quarter | Figures of the Preceding Quarter | ||||||
Admitted assets (RMB ten thousand) | 253,508,749.51 | 243,839,671.48 | ||||||
Admitted liabilities (RMB ten thousand) | 179,632,789.17 | 173,632,048.51 | ||||||
Actual capital (RMB ten thousand) | 73,875,960.34 | 70,207,622.97 | ||||||
Core tier one capital (RMB ten thousand) | 66,267,061.16 | 62,598,841.96 | ||||||
Core tier two capital (RMB ten thousand) | 779,058.11 | 779,058.11 | ||||||
Supplementary tier one capital (RMB ten thousand) | 6,829,841.07 | 6,829,722.90 | ||||||
Supplementary tier two capital (RMB ten thousand) | 0 | 0 | ||||||
| 4. | MINIMUM CAPITAL |
| Items | Figures of the Current Quarter | Figures of the Preceding Quarter | ||||||
Minimum capital for quantitative risk (RMB ten thousand) | 21,201,248.52 | 19,555,272.86 | ||||||
Minimum capital for insurance risk (RMB ten thousand) | 6,324,419.04 | 6,052,544.29 | ||||||
Minimum capital for market risk (RMB ten thousand) | 21,242,494.85 | 20,087,313.44 | ||||||
Minimum capital for credit risk (RMB ten thousand) | 2,590,947.81 | 2,533,921.59 | ||||||
Risk diversification effect (RMB ten thousand) | 4,470,221.86 | 4,305,840.39 | ||||||
Loss absorption effect (RMB ten thousand) | 4,486,391.32 | 4,812,666.07 | ||||||
Minimum capital for qualitative risk (RMB ten thousand) | 0 | 0 | ||||||
Additional capital (RMB ten thousand) | 0 | 0 | ||||||
Counter-cyclical additional capital (RMB ten thousand) | 0 | 0 | ||||||
Additional capital for DSII (RMB ten thousand) | 0 | 0 | ||||||
Additional capital for GSII (RMB ten thousand) | 0 | 0 | ||||||
Other additional capital (RMB ten thousand) | 0 | 0 | ||||||
Minimum capital (RMB ten thousand) | 21,201,248.52 | 19,555,272.86 | ||||||
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| 5. | INTEGRATED RISK RATING |
The Integrated Risk Rating (IRR), i.e. the classification regulation, is a regulatory exercise in which the China Insurance Regulatory Commission (the “CIRC”) conducts a comprehensive analysis of and assessment on the inherent risks and control risks of insurance companies by using a risk- oriented approach and in accordance with the relevant information, classifies such insurance companies into different regulatory categories according to their respective solvency risks, and adopts regulatory policies or measures in respect thereof accordingly.
The CIRC conducts assessment on our IRR on a quarterly basis. The results of our IRR in the recent two quarters (being the fourth quarter and the third quarter of 2015) were both A Category.
| 6. | RISK MANAGEMENT |
The CIRC conducts assessments on the solvency risk management of insurance companies on a regular basis. In accordance with the “Notice of the CIRC Concerning the Matters Relevant to the Formal Implementation of the China Risk Oriented Solvency System (CROSS)” (Bao Jian Fa (2016) No. 10), the CIRC will organize its local branches to conduct regulatory assessments on the solvency risk management of insurance companies during the period from April to October 2016. At present, the CIRC has not conducted a regulatory assessment on our solvency risk management.
| 7. | LIQUIDITY RISK |
| 1) | Regulatory Indicators of Liquidity |
| Name of Indicators | Figures of the Current Quarter | Figures of the Preceding Quarter | ||||||
Actual net cash flows (RMB million) | 69,866 | 26,102 | ||||||
Comprehensive liquidity ratio (%) | — | — | ||||||
Comprehensive liquidity ratio within 3 months (%) | 428 | 251 | ||||||
Comprehensive liquidity ratio within 1 year (%) | 317 | 273 | ||||||
Comprehensive liquidity ratio within 1-3 years (%) | 962 | 463 | ||||||
Comprehensive liquidity ratio within 3-5 years (%) | 67,272 | 11,089 | ||||||
Comprehensive liquidity ratio beyond 5 years (%) | 25 | 27 | ||||||
Overall liquidity coverage of the Company (%) | 2,411 | 2,089 | ||||||
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| 2) | Analysis of Liquidity Risk and Measures Addressing Such Risk |
The Company has sufficient cash flows with good liquidity indicators, such as the comprehensive liquidity ratio and the liquidity coverage ratio. Pursuant to the requirements of the “No. 12 Solvency Regulatory Rules for Insurance Companies: Liquidity Risk” and the relevant regulations, we have established a well-developed liquidity risk management mechanism to monitor various regulatory indicators for liquidity risk on a quarterly basis, with a view to preventing liquidity risk in an effective manner.
| 8. | REGULATORY MEASURES ADOPTED BY REGULATORY AUTHORITIES AGAINST THE COMPANY |
During the Reporting Period, there were no circumstances where the CIRC had adopted any significant regulatory measures against the Company.
By Order of the Board |
China Life Insurance Company Limited Heng Victor Ja Wei |
Company Secretary |
April 28, 2016
As at the date of this announcement, the board of directors of the Company comprises:
| Executive Directors: | Yang Mingsheng, Lin Dairen, Xu Hengping, Xu Haifeng | |||
| Non-executive Directors: | Miao Jianmin, Zhang Xiangxian, Wang Sidong, Liu Jiade | |||
| Independent Non-executive Directors: | Anthony Francis Neoh, Chang Tso Tung Stephen, Robinson Drake Pike, Tang Xin | |||
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