Exhibit 99.1
中國人壽保險股份有限公司
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 COMPANYNOTE
(FIRST QUARTER OF 2023)
COMPANY PROFILE AND CONTACT INFORMATION
Name of the Company in Chinese: | 中國人壽保險股份有限公司 | |
Name of the Company in English: | China Life Insurance Company Limited | |
Legal Representative: | Bai Tao | |
Registered Address: | 16 Financial Street, Xicheng District, Beijing, P.R. China | |
Registered Capital (Working Capital): | RMB28.265 billion |
Note:
This summary of solvency quarterly report is prepared in accordance with the relevant requirements under the “Solvency Regulatory Rules II for Insurance Companies” issued by the China Banking and Insurance Regulatory Commission (the “CBIRC”) and the “Notice for Defining the Policy of Transitional Period for the Implementation by Life Insurance Companies of the ‘Solvency Regulatory Rules for Insurance Companies No 15: Public Disclosure of Solvency Information’ issued by the Solvency Supervision Department of the CBIRC”.
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Corporate License Number of Insurance Institution (Insurance Business License): | No. 000005 | |
Business Commencement Date: | June 30, 2003 | |
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; personal insurance services, consulting and agency businesses; sale of securities investment funds; other businesses approved by the national insurance regulatory departments. | |
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”) | |
Contact Name: | He Zheng | |
Contact Office Telephone Number: | 010-63631371 | |
Contact Mobile Phone Number: | 13671210021 | |
Contact Email Address: | c-rossinfo@e-chinalife.com |
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1. | STATEMENT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS AND THE MANAGEMENT |
This report has been approved by the Chairman of the Board of Directors of the Company. The Chairman of the Board of Directors and the management of the Company warrant that the information contained in this report is true, accurate, complete and legally compliant and there are no false representations, misleading statements contained in or material omissions from this report, and severally and jointly accept legal responsibility for the above.
The statement is hereby given.
2. | BASIC INFORMATION |
(1) | Shareholding Structure, Shareholders and Their Changes During the Reporting Period |
1) | Shareholding structure and its changesNote |
Unit: Ten thousand shares
Category | At the beginning of the period | Changes in the 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 and distribution of dividend | Equity transfer | Sub-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 its annual report. |
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2) | Effective controller |
The effective controller of the Company is the Ministry of Finance of the PRC. As at the end of the reporting period, the equity and controlling relationship between the Company and its effective controller is set out below:
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3) | Top ten shareholders (in the descending 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 the number of shares held by the shareholder or the amount of capital contribution during the period | Number of shares held by the shareholder or the amount of capital contribution as at the end of the period | Shareholding percentage as at the end of the period | Number of shares pledged | Number of shares frozen | ||||||||||||||||||||
China Life Insurance (Group) Company | State-owned legal person | – | 1,932,353 | 68.37 | % | – | – | |||||||||||||||||||
HKSCC Nominees Limited | Overseas legal person | 48 | 732,618 | 25.92 | % | – | – | |||||||||||||||||||
China Securities Finance Corporation Limited | State-owned legal person | – | 70,824 | 2.51 | % | – | – | |||||||||||||||||||
Central Huijin Asset Management Limited | State-owned legal person | – | 11,717 | 0.41 | % | – | – | |||||||||||||||||||
Hong Kong Securities Clearing Company Limited | Overseas legal person | 11 | 4,177 | 0.15 | % | – | – | |||||||||||||||||||
Guosen Securities Co., Ltd. – Founder Fubon CSI Insurance Theme Index Security Investment Fund | Other | -222 | 1,865 | 0.07 | % | – | – | |||||||||||||||||||
Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund | Other | -75 | 1,311 | 0.05 | % | – | – | |||||||||||||||||||
China International Television Corporation | State-owned legal person | – | 1,000 | 0.04 | % | – | – | |||||||||||||||||||
National Social Security Fund Portfolio 114 | State-owned legal person | 938 | 938 | 0.03 | % | – | – | |||||||||||||||||||
China National Nuclear Corporation Capital Holdings Co., Ltd. | State-owned legal person | 895 | 895 | 0.03 | % | – | – | |||||||||||||||||||
Details of shareholders | 1. HKSCC Nominees Limited is a company that holds shares on behalf of the clients of the Hong Kong stock brokers and other participants of the CCASS system. Since the relevant regulations of the Stock Exchange do not require such persons to declare whether their shareholdings are pledged or frozen, HKSCC Nominees Limited is unable to calculate or provide the number of shares that are pledged or frozen. |
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2. The Company was not aware of any connected relationship and concerted parties as defined by the “Measures for the Administration of the Takeover of Listed Companies” among the top ten shareholders of the Company. |
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4) | Shareholdings of the Directors, Supervisors and senior management |
No relevant circumstance occurred during the reporting period.
5) | Equity transfer during the reporting period |
No relevant circumstance required for reporting by the regulatory rules during the reporting period.
(2) | Directors, Supervisors and Senior Management of the Head Office |
1. | Basic information of the Directors, Supervisors and senior management of the head office |
1) | Basic information of the Directors |
Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Bai Tao | March 1963 | Doctoral degree in Economics | May 2022 | Chairman of the Board of Directors, Executive Director | Yin Bao Jian Fu (2022) No. 361 | Chairman of the Board of Directors and the Secretary to the Party Committee of China Life Insurance (Group) Company
Chairman of the Board of Directors of China Guangfa Bank Co., Ltd.
Vice Chairman of China Society for Finance and Banking
Vice chairman of China Enterprise Confederation
Vice chairman of China Enterprise Directors Association | Mr. Bai became the Chairman of the Board of Directors of the Company in May 2022. He has been the Secretary to the Party Committee of China Life Insurance (Group) Company since January 2022 and the Chairman of China Life Insurance (Group) Company since March 2022. From 2016 to 2022, he served as a member of the Party Committee and the Deputy General Manager of China Investment Corporation; the Deputy Secretary to the Party Committee, the Vice Chairman, the President and an Executive Director of The People’s Insurance Company (Group) of China Limited; and the Chairman and the Secretary to the Leading Party Members’ Group of State Development & Investment Corp., Ltd.. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Zhao Peng | April 1972 | Master’s degree in Economics and Master’s degree in Business Administration | As Executive Director and President since October 2022 | Executive Director, President | Yin Bao Jian Fu (2022) No. 762
Yin Bao Jian Xu Ke (2022) No. 736 | Vice President of China Life Insurance (Group) Company | Mr. Zhao became an Executive Director and the President of the Company in October 2022. He has been the Vice President of China Life Insurance (Group) Company since September 2022. He served as the temporary Person in Charge of the Company from August to October 2022. From 2020 to 2022, he served as the Vice President of the Agricultural Development Bank of China. From 2017 to 2020, he successively served as an Assistant to the President and a Vice President of the Company, the Chief Financial Officer of China Life Insurance (Group) Company and an Executive Director of the Company. From 2019 to 2021, he also served as a Director of each of Sino-Ocean Group Holding Limited and China Life Franklin Asset Management Company Limited. | |||||||||
Li Mingguang | July 1969 | Master’s degree in Economics, EMBA for the senior management | As Executive Director since August 2019, as Vice President since November 2014, as Chief Actuary since March 2012 | Executive Director, Vice President, Chief Actuary | Jing Yin Bao Jian Fu (2019) No. 635
Bao Jian Xu Ke (2014) No. 918
Bao Jian Shou Xian (2012) No. 187 | Director of China Life Asset Management Company Limited | Mr. Li became an Executive Director of the Company in August 2019. He has been the Vice President of the Company since November 2014 and the Chief Actuary of the Company since March 2012. From June 2017 to February 2023, he served as the Board Secretary of the Company. From May 2012 to May 2022, he served as the Chief Actuary of China Life Pension Company Limited. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Wang Junhui | July 1971 | Doctoral degree in Finance | August 2019 | Non-executive Director | Jing Yin Bao Jian Fu (2019) No. 635 | Chief Investment Officer of China Life Insurance (Group) Company
President and Director of China Life Asset Management Company Limited
Non-executive Director of China Life Property and Casualty Insurance Company Limited
Director of China Life Insurance (Overseas) Company Limited
Chairman of China Life AMP Asset Management Company Limited
Director of China United Network Communications Limited
Director of China Shimao Investment Company Limited
Director of China World Trade Center Limited
Chairman of the Insurance Asset Management Association of China
Executive Director of the Insurance Association of China | Mr. Wang became a Non-executive Director of the Company in August 2019. He has been the Chief Investment Officer of China Life Insurance (Group) Company and the President of China Life Asset Management Company Limited since August 2016. He has been a Director of China Life Insurance (Overseas) Company Limited since June 2020, the Chairman of China Life Franklin Asset Management Company Limited since September 2016, and the Chairman of China Life AMP Asset Management Company Limited since December 2016. | |||||||||
Lam Chi Kuen | April 1953 | Higher Diploma in Accounting | June 2021 | Independent Director | Yin Bao Jian Fu (2021) No. 503 | Independent Non-executive Director of China Cinda Asset Management Co., Ltd.
Independent Non-executive Director of Luks Group (Vietnam Holdings) Company Limited | Mr. Lam became an Independent Director of the Company in June 2021. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Zhai Haitao | January 1969 | Master’s degrees in International Affairs and Business Administration | October 2021 | Independent Director | Yin Bao Jian Fu (2021) No. 778 | President and Founding Partner of Primavera Capital Group
Independent Director of China Everbright Environment Group Limited
Independent Director of China Everbright Water Limited
Independent Director of Lianyin Venture Capital Co., Ltd. (a wholly-owned subsidiary of China UnionPay Group) | Mr. Zhai became an Independent Director of the Company in October 2021. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Huang Yiping | March 1964 | Doctoral degree in Economics | July 2022 | Independent Director | Yin Bao Jian Fu (2022) No. 450 | Jinguang Chair Professor of Finance and Economics and the Associate Dean of the National School of Development of Peking University
Director of the Institute of Digital Finance of Peking University
Deputy Secretary-General of China Society for Finance and Banking
Chairman of the Professional Committee of FinTech Development and Research of the National Internet Finance Association of China
Chairman of the Academic Committee of China Finance 40 Forum
Member of Chinese Economists 50 Forum
Member of the Decision-making Advisory Committee of Guangdong Provincial People’s Government
Director of Shanghai Pu Shan New Finance Development Foundation | Mr. Huang became an Independent Director of the Company in July 2022. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||
Invited Expert (Advisor) of the 2nd Fintech Cooperation Committee of Asian Financial Cooperation Association
Vice Chairman of the Professional Committee on the Study of Regional Finance of the Society of Public Finance of China
Executive Director and Vice Chairman of the Ninth Session of the Board of Directors and member of the Academic Committee of China Institute of Rural Finance
Editor in Chief of China Economic Journal
Deputy Editor in Chief of Asian Economic Policy Review
Independent Director of Ant Group Co., Ltd. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Chen Jie | April 1970 | Doctoral degree in Civil and Commercial Law | July 2022 | Independent Director | Yin Bao Jian Fu (2022) No. 450 | Director and researcher of the Commercial Law Research Unit of the Institute of Law of Chinese Academy of Social Sciences
Member of Chinese Legal System Committee of China Democratic League
Vice Chairman of China Business Law Society
Executive Director of the Institute of Commercial Law of China Law Society
Executive Director of the Institute of Securities Law of China Law Society
Director of the Institute of Insurance Law of China Law Society
Member of the Securities and Futures Expert Group of the China Securities Regulatory Commission
Member of the Appeal Review Committee of the Shenzhen Stock Exchange | Ms. Chen became an Independent Director of the Company in July 2022. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Expert Member on “Holding Shares and Exercising Shareholders’ Rights” of China Securities Investor Services Center
Member of the Expert Advisory Committee of Beijing Financial Court
Arbitrator of Beijing Arbitration Commission/ Beijing International Arbitration Center
Arbitrator of Shenzhen Court of International Arbitration
Arbitrator of China International Economic and Trade Arbitration Commission
Arbitrator of Shanghai International Economic and Trade Arbitration Commission |
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2) | Basic information of the Supervisors |
Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Cao Weiqing | September 1965 | Master’s degree in Economics | October 2022 | Chairman of the Board of Supervisors | Yin Bao Jian Fu (2022) No. 762 | Mr. Cao became the Chairman of the Board of Supervisors of the Company in November 2022. He is a member of the Party Committee of the Company. He successively served as the Secretary to the Discipline Inspection Committee, the Chairman of the Board of Supervisors and a Vice President of China Life Asset Management Company Limited from 2016 to 2022. | ||||||||||
Niu Kailong | September 1974 | Doctoral degree in Economics | October 2021 | Non-Employee Representative Supervisor | Yin Bao Jian Fu (2021) No. 778 | General Manager of the Strategic Planning Department of China Life Insurance (Group) Company President of China Life Institute of Finance | Mr. Niu became a Supervisor of the Company in October 2021. | |||||||||
Wang Xiaoqing | October 1965 | Bachelor’s degree in Engineering | December 2019 | Employee Representative Supervisor | Jing Yin Bao Jian Fu (2019) No. 1110 | Ms. Wang became a Supervisor of the Company in December 2019. She has successively served as the Deputy General Manager and the General Manager of the Risk Management Department of the Company since April 2018. She served as the Secretary to the Discipline Inspection Committee of Tibet Autonomous Region Branch of the Company from May 2016 to April 2018. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Lai Jun | May 1964 | Bachelor’s degree | October 2021 | Employee Representative Supervisor | Yin Bao Jian Fu (2021) No. 778 | Mr. Lai became a Supervisor of the Company in October 2021. He has been the General Manager of the Human Resources Department of the Company since May 2021. From 2015 to 2021, he successively served as the Person in Charge, the Deputy General Manager (responsible for daily operations) and the General Manager of Hainan Branch, as well as the General Manager of Xinjiang Branch of the Company. | ||||||||||
Hu Zhijun | July 1971 | Master’s degree in Management | July 2022 | Employee Representative Supervisor | Yin Bao Jian Fu (2022) No. 450 | Ms. Hu became a Supervisor of the Company in July 2022. She has been the General Manager of the Audit Department of the Company since October 2022. She served as the General Manager of the Asset Management Department of the Company from December 2014 to October 2022. |
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3) | Basic information of the senior management of the head office |
Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Ruan Qi | July 1966 | EMBA for the senior management | April 2018 | Vice President, Chief Risk Officer | Yin Bao Jian Xu Ke (2018) No. 63 | Mr. Ruan became the Vice President of the Company in April 2018. He has been the Chief Risk Officer of the Company since December 2022. He served as the Chief Information Technology Officer of the Company from January 2018 to April 2018. He served as the Chief Information Technology Officer and the General Manager (at the general manager level of the provincial branches) of the Information Technology Department of the Company from October 2016 to January 2018. | ||||||||||
Zhan Zhong | July 1968 | Bachelor’s degree in Engineering | July 2019 | Vice President | Jing Yin Bao Jian Fu (2019) No. 493 | Director of Sino-Ocean Group Holding Limited | Mr. Zhan became the Vice President of the Company in July 2019. He served as the Marketing Director of the Company from August 2017 to July 2019, and the General Manager of the Individual Insurance Sales Department of the Company from July 2014 to August 2019. He served as an Employee Representative Supervisor of the Company from July 2015 to August 2017. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Yang Hong | February 1967 | EMBA for the senior management | July 2019 | Vice President | Jing Yin Bao Jian Fu (2019) No. 493 | Ms. Yang became the Vice President of the Company in July 2019. She served as the Operation Director of the Company from March 2018 to July 2019, and the General Manager of the Operation and Service Center of the Company from January 2018 to August 2019. She successively served as the Deputy General Manager (responsible for daily operations) and General Manager of the Research and Development Center, the General Manager (at the general manager level of the provincial branches) of the Business Management Department, and the General Manager (at the general manager level of the provincial branches) of the Process and Operation Management Department of the Company from 2011 to 2018. | ||||||||||
Zhao Guodong | November 1967 | Bachelor’s degree | October 2019 | Assistant to the President, Board Secretary | Jing Yin Bao Jian Fu (2019) No. 851 Yin Bao Jian Fu (2023) No. 83 | Mr. Zhao became an Assistant to the President of the Company in October 2019. He has been the Board Secretary of the Company since February 2023. He served as the General Manager of Jiangsu Branch of the Company from July 2018 to October 2022. During the period from 2016 to 2018, he successively served as the Deputy General Manager (responsible for daily operations) and the General Manager of Chongqing Branch, and the General Manager of Hunan Branch of the Company. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Bai Kai | June 1974 | Postgraduate | April 2022 | Assistant to the President | Yin Bao Jian Fu (2022) No. 283 | Mr. Bai became an Assistant to the President of the Company in April 2022. He served as the General Manager of Hubei Branch of the Company from March 2020 to November 2022. During the period from 2017 to 2020, he successively served as the Deputy General Manager and the Deputy General Manager (responsible for daily operations) of Hubei Branch of the Company. | ||||||||||
Xu Chongmiao | October 1969 | Doctoral degree in Law | July 2018 | Compliance Officer | Yin Bao Jian Xu Ke (2018) No. 593 | Mr. Xu became the Compliance Officer of the Company in July 2018. He has been the General Manager of the Legal and Compliance Department and the Legal Officer of the Company since September 2014. | ||||||||||
Liu Fengji | October 1969 | EMBA for the senior management | December 2021 | Person in Charge of Audit | Yin Bao Jian Fu (2021) No. 1032 | Mr. Liu became the Person in Charge of Audit of the Company in December 2021. During the period from October 2021 to December 2021, he served as a temporary Person in Charge of Audit of the Company. From February 2021 to September 2022, he served as the General Manager of the Audit Department of the Company. During the period from February 2018 to February 2021, he served as the General Manager of Tianjin Branch of the Company. From 2016 to 2018, he successively served as the Person in Charge, the Deputy General Manager (responsible for daily operations) and the General Manager of Qinghai Branch of the Company. |
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Name | Month and year of birth | Academic qualification (degree) | Month and year of commencement | 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 | |||||||||
Hu Jin | November 1971 | Master’s degree in Economics | February 2023 | Person in Charge of Finance | Yin Bao Jian Fu (2023) No. 82 | Ms. Hu became the Person in Charge of Finance of the Company in February 2023. She has been the General Manager of the Finance Department of the Company since June 2020. From October 2022 to February 2023, she served as a temporary Person in Charge of Finance of the Company. From June 2020 to March 2021, she served as the General Manager of the Shared Service Center (Financial Segment) of the Company. From August 2019 to June 2020, she served as the Deputy General Manager (responsible for daily operations) of the Finance Department and concurrently acted as the Deputy General Manager of the Shared Service Center (Financial Segment) of the Company. From 2013 to 2019, she successively served as the Deputy General Manager of the Finance Department, the Deputy General Manager of the Accounting Department and the Deputy General Manager (responsible for daily operations) of the Accounting Department of the Company. |
All information set forth in the table 1) – 3) is as at the end of the reporting period, and this table only provides the basic information of the 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 tables under the basic information of the Directors and Supervisors.
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2. | The changes of the Directors, Supervisors and senior management during the reporting period and as at the disclosure date of the summary of this report: |
1) | Due to the adjustment of work arrangements, Ms. Zhang Di ceased to be an Assistant to the President and the Chief Investment Officer from January 2023. |
2) | In accordance with the resolution adopted by the seventh session of the Board of Directors of the Company and upon approval by the CBIRC, Ms. Hu Jin served as the Person in Charge of Finance of the Company from February 24, 2023. |
3) | In accordance with the resolution adopted by the seventh session of the Board of Directors of the Company and upon approval by the CBIRC, Mr. Zhao Guodong served as the Board Secretary of the Company from February 24, 2023. |
4) | Due to the adjustment of work arrangements, Mr. Li Mingguang, being an Executive Director, the Vice President, the Chief Actuary and the Board Secretary of the Company, tendered his letter of resignation to the Board of Directors of the Company on February 24, 2023, with his decision of not concurrently serving as the Board Secretary of the Company. The resignation took effect from the date when the letter was served to the Board of Directors. |
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(3) | Subsidiaries, Joint Ventures and Associated Corporations |
Unit: RMB million
No. | Company name | Type of company | Number of shares held or cost | 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 amount | |||||||||||||||||||||||
1 | China Life Asset Management Company Limited | Subsidiary | 1,680 | 1,680 | – | 60.00% | 60.00% | – | ||||||||||||||||||||
2 | China Life Pension Company Limited | Subsidiary | 2,626 | 2,626 | – | 70.74% | 70.74% | – | ||||||||||||||||||||
3 | China Life Sales Company Limited | Subsidiary | – | – | – | 90.81% | 90.81% | – | ||||||||||||||||||||
4 | New Aldgate Limited | Subsidiary | 1,168 | 1,168 | – | 100.00% | 100.00% | – | ||||||||||||||||||||
5 | Wuhu Yuanxiang Tianyi Investment Management Partnership (Limited Partnership) | Subsidiary | 502 | 502 | – | 99.98% | 99.98% | – | ||||||||||||||||||||
6 | Wuhu Yuanxiang Tianfu Investment Management Partnership (Limited Partnership) | Subsidiary | 502 | 502 | – | 99.98% | 99.98% | – | ||||||||||||||||||||
7 | Shanghai Yuan Shu Yuan Pin Investment Management Partnership (Limited Partnership) | Subsidiary | 540 | 521 | -19 | 99.98% | 99.98% | – | ||||||||||||||||||||
8 | Shanghai Yuan Shu Yuan Jiu Investment Management Partnership (Limited Partnership) | Subsidiary | 540 | 521 | -19 | 99.98% | 99.98% | – | ||||||||||||||||||||
9 | Shanghai Wansheng Industry Partnership (Limited Partnership) | Subsidiary | 4,036 | 4,048 | 12 | 99.98% | 99.98% | – | ||||||||||||||||||||
10 | Shanghai Rui Chong Investment Co., Limited | Subsidiary | 6,100 | 6,100 | – | 100.00% | 100.00% | – | ||||||||||||||||||||
11 | Ningbo Meishan Bonded Port Area Guo Yang Guo Sheng Investment Partnership (Limited Partnership) | Subsidiary | 2,835 | 2,835 | – | 90.00% | 90.00% | – | ||||||||||||||||||||
12 | Ningbo Meishan Bonded Port Area Bai Ning Investment Partnership (Limited Partnership) | Subsidiary | 1,680 | 1,680 | – | 99.98% | 99.98% | – | ||||||||||||||||||||
13 | Golden Phoenix Tree Limited | Subsidiary | – | 264 | 264 | 100.00% | 100.00% | – | ||||||||||||||||||||
14 | Glorious Fortune Forever Limited | Subsidiary | – | – | – | 100.00% | 100.00% | – | ||||||||||||||||||||
15 | China Life Qihang Phase I (Tianjin) Equity Investment Fund Partnership (Limited Partnership) | Subsidiary | 6,916 | 6,916 | – | 99.99% | 99.99% | – | ||||||||||||||||||||
16 | China Life Guangde (Tianjin) Equity Investment Fund Partnership (Limited Partnership) | Subsidiary | 1,316 | 1,316 | – | 99.95% | 99.95% | – | ||||||||||||||||||||
17 | China Life (Suzhou) Pension and Retirement Investment Company Limited | Subsidiary | 2,181 | 2,181 | – | 100.00% | 100.00% | – | ||||||||||||||||||||
18 | China Life (Beijing) Health Management Company Limited | Subsidiary | 1,530 | 1,530 | – | 100.00% | 100.00% | – | ||||||||||||||||||||
19 | Beijing China Life Pension Industry Investment Fund (Limited Partnership) | Subsidiary | 2,392 | 2,602 | 210 | 99.90% | 99.90% | – | ||||||||||||||||||||
20 | Sunny Bamboo Limited | Subsidiary | 2,359 | 2,359 | – | 100.00% | 100.00% | – | ||||||||||||||||||||
21 | Golden Bamboo Limited | Subsidiary | 3,101 | 3,101 | – | 100.00% | 100.00% | – | ||||||||||||||||||||
22 | Fortune Bamboo Limited | Subsidiary | 2,435 | 2,435 | – | 100.00% | 100.00% | – | ||||||||||||||||||||
23 | CL Hotel Investor, L.P. | Subsidiary | 285 | 285 | – | 100.00% | 100.00% | – | ||||||||||||||||||||
24 | CBRE Global Investors U.S. Investment I, LLC | Subsidiary | 4,111 | 4,111 | – | 99.99% | 99.99% | – |
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No. | Company name | Type of company | Number of shares held or cost | 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 amount | |||||||||||||||||||||||
25 | COFCO Futures Company Limited | Associated corporation | 1,339 | 1,339 | – | 35.00% | 35.00% | – | ||||||||||||||||||||
26 | CCB Trust Sharing No. 9 Urbanization Investment Private Equity Fund | Associated corporation | 1,223 | 1,223 | – | 30.57% | 30.57% | – | ||||||||||||||||||||
27 | AVIC Investment Holding Limited | Associated corporation | 6,000 | 6,000 | – | 16.70% | 16.70% | – | ||||||||||||||||||||
28 | China Life Property and Casualty Insurance Company Limited | Associated corporation | 9,600 | 9,600 | – | 40.00% | 40.00% | – | ||||||||||||||||||||
29 | China United Network Communications Limited | Associated corporation | 21,801 | 21,801 | – | 10.03% | 10.03% | – | ||||||||||||||||||||
30 | Wonders Information Co., Ltd. | Associated corporation | 3,298 | 3,898 | 600 | 18.21% | 18.21% | – | ||||||||||||||||||||
31 | Shanghai Jinshida Winning Software Technology Co., Limited | Associated corporation | 192 | 192 | – | 18.31% | 18.31% | – | ||||||||||||||||||||
32 | GLP Guoyi (Zhuhai) Acquisitions Fund (Limited Partnership) | Associated corporation | 7,301 | 7,301 | – | 81.63% | 81.63% | – | ||||||||||||||||||||
33 | Sinopec Sichuan to East China Gas Pipeline Co., Ltd. | Associated corporation | 20,000 | 20,000 | – | 43.86% | 43.86% | – | ||||||||||||||||||||
34 | China Power Investment Nuclear Power Co., Ltd. | Associated corporation | 8,000 | 8,000 | – | 26.76% | 26.76% | – | ||||||||||||||||||||
35 | China Guangfa Bank Co., Ltd. | Associated corporation | 53,199 | 53,199 | – | 43.69% | 43.69% | – | ||||||||||||||||||||
36 | Annoroad Gene Technology (Beijing) Co., Ltd. | Associated corporation | 250 | 250 | – | 13.09% | 13.09% | – | ||||||||||||||||||||
37 | Sino-Ocean Group Holding Limited | Associated corporation | 11,246 | 11,246 | – | 29.59% | 29.59% | – | ||||||||||||||||||||
38 | Nanning China Life Shenrun Investment Development Fund Partnership (Limited Partnership) | Joint venture | 3,780 | 3,780 | – | 60.00% | 60.00% | – | ||||||||||||||||||||
39 | Jiangsu China Life Jiequan Equity Investment Center (Limited Partnership) | Joint venture | 2,129 | 2,129 | – | 60.00% | 60.00% | – | ||||||||||||||||||||
40 | China Life Vanke No. 1 (Jiaxing) Health Pension Industrial Investment Partnership (Limited Partnership) | Joint venture | 195 | 195 | – | 59.82% | 59.82% | – | ||||||||||||||||||||
41 | China Life Vanke No. 2 (Jiaxing) Health Pension Industrial Investment Partnership (Limited Partnership) | Joint venture | 195 | 195 | – | 59.82% | 59.82% | – | ||||||||||||||||||||
42 | China Life Qiaocheng (Shenzhen) Investment Partnership (Limited Partnership) | Joint venture | 8,451 | 8,451 | – | 84.99% | 84.99% | – | ||||||||||||||||||||
43 | China Life Beautiful Village (Danjiangkou) Industrial Fund Partnership (Limited Partnership) | Joint venture | 3 | 33 | 30 | 39.50% | 39.50% | – | ||||||||||||||||||||
44 | China Life Haikong (Hainan) Healthy Investment Co., Ltd. | Joint venture | 230 | 230 | – | 51.00% | 51.00% | – | ||||||||||||||||||||
45 | China Life (Sanya) Health Investments Co., Ltd. | Joint venture | 306 | 306 | – | 51.00% | 51.00% | – | ||||||||||||||||||||
46 | Beijing China Life Communications Construction City Development Investment Fund (Limited Partnership) | Joint venture | 15,331 | 14,731 | -600 | 50.00% | 50.00% | – | ||||||||||||||||||||
47 | RXR 1285 Holdings JV LLC | Joint venture | 1,215 | 1,215 | – | 51.55% | 51.55% | – |
Note: | The figures shown in the “Number of shares held or cost” column in this table refer to the amount of investment cost. |
– 22 –
(4) | Violation of Laws and Regulations |
1) | Administrative punishments imposed on the Company by financial regulators and other governmental departments during the reporting period: |
During the reporting period, 24 administrative punishments were imposed on the divisions of the Company at all levels, with an amount of penalty totaling RMB5.4753 million. Such punishments included, among others, warning, penalty and confiscation of illegal gains. For specific information, please logon to the official website of the Company (www.e-chinalife.com, route query: Home Page – Public Information Disclosure – Information of Significant Events) for inspection.
2) | Administrative punishments imposed on the Directors, Supervisors and senior management of the Head Office of the Company by financial regulators and other governmental departments during the reporting period: |
In March 2023, Mr. Lai Jun, an Employee Representative Supervisor of the Company, received a warning from the CBIRC, Xinjiang Office, with a fine of RMB40,000, in connection with his liabilities for Xinjiang Branch’s violations of laws and regulations in preparing and providing false reports during the period when he was the General Manager of Xinjiang Branch.
3) | Violation of laws by the Directors, Supervisors, management officers at the departmental level of the Head Office or above and senior management officers of the provincial branches of the Company during the reporting period that resulted in them being transferred to judicial authorities: |
No relevant circumstance occurred during the reporting period.
4) | Regulatory measures adopted by the CBIRC against the Company during the reporting period: |
During the reporting period, one regulatory measure was adopted by the CBIRC and its local offices against the Head Office of the Company and there were 57 regulatory measures against its branches at the provincial level and below.
– 23 –
3. | KEY INDICATORS |
(1) | Solvency Ratio Indicators |
Unit: RMB million
Predicted | ||||||||||||
figures of the | ||||||||||||
Following | ||||||||||||
Figures of | Figures of | Quarter | ||||||||||
the Current | the Preceding | under the | ||||||||||
Items | Quarter | Quarter | Basic Scenario | |||||||||
Admitted assets | 5,371,644 | 5,173,709 | 5,447,146 | |||||||||
Admitted liabilities | 4,314,852 | 4,166,108 | 4,366,024 | |||||||||
Actual capital | 1,056,792 | 1,007,601 | 1,081,122 | |||||||||
Core Tier 1 capital | 683,678 | 651,956 | 701,378 | |||||||||
Core Tier 2 capital | 58,088 | 47,733 | 67,925 | |||||||||
Supplementary Tier 1 capital | 312,501 | 305,977 | 309,297 | |||||||||
Supplementary Tier 2 capital | 2,525 | 1,935 | 2,522 | |||||||||
Minimum capital for quantitative risk | 510,900 | 494,962 | 520,994 | |||||||||
Minimum capital for control risk | -8,123 | -7,672 | -8,284 | |||||||||
Additional minimum capital | – | – | – | |||||||||
Minimum capital | 502,777 | 487,290 | 512,710 | |||||||||
Core solvency surplus | 238,989 | 212,399 | 256,593 | |||||||||
Comprehensive solvency surplus | 554,015 | 520,311 | 568,412 | |||||||||
Core solvency ratio | 147.53% | 143.59% | 150.05% | |||||||||
Comprehensive solvency ratio | 210.19% | 206.78% | 210.86% |
– 24 –
(2) | Regulatory and Monitoring Indicators of Liquidity Risk |
Unit: RMB million
Figures of | Figures of | |||||||
the Current | the Preceding | |||||||
Name of Indicators | Quarter | Quarter | ||||||
Liquidity coverage ratio | ||||||||
Overall liquidity coverage ratio of the Company under the basic scenario1 (LCR1) | ||||||||
within 3 months | 155% | 132% | ||||||
within 12 months | 113% | 114% | ||||||
Overall liquidity coverage ratio of the Company under the required testing stressed scenario2 (LCR2) | ||||||||
within 3 months | 647% | 593% | ||||||
within 12 months | 192% | 199% | ||||||
Liquidity coverage ratio without considering asset realization under the required testing stressed scenario3 (LCR3) | ||||||||
within 3 months | 146% | 141% | ||||||
within 12 months | 97% | 90% | ||||||
Overall liquidity coverage ratio of the Company under the self-testing stressed scenario2 (LCR2) | ||||||||
within 3 months | 2652% | 2147% | ||||||
within 12 months | 689% | 793% | ||||||
Liquidity coverage ratio without considering asset realization under the self-testing stressed scenario3 (LCR3) | ||||||||
within 3 months | 663% | 555% | ||||||
within 12 months | 379% | 392% | ||||||
Backtracking adverse deviation rate of net cash flow from operating activities4 | 15% | 113% | ||||||
Cumulative net cash flow of the current year | 39,862 | 65,443 | ||||||
Net cash flow of the preceding fiscal year | 65,443 | 2,901 | ||||||
Net cash flow of the fiscal year prior to the preceding fiscal year | 2,901 | 1,890 | ||||||
Net cash flow from operating activities5 | 171,093 | 395,035 | ||||||
Net cash flow from operating activities of participating account6 | -19,595 | 30,237 | ||||||
Net cash flow from operating activities of universal account7 | 44,520 | 48,039 | ||||||
Proportion of cash and liquidity management tools8 | 3.80% | 3.18% | ||||||
Quarterly average of financing leverage ratio9 | 1.45% | 2.21% | ||||||
Proportion of domestic fixed-income assets under (including) class AA10 | 0.20% | 0.04% | ||||||
Proportion of listed stock investment with a shareholding of over 5%11 | 0.56% | 0.77% | ||||||
Proportion of receivables12 | 1.05% | 0.41% | ||||||
Proportion of holding related-party assets13 | 1.95% | 2.48% |
– 25 –
Notes:
1. | Overall liquidity coverage ratio of the Company under the basic scenario = (Cash inflows of the Company under the basic scenario + Book value of cash and cash equivalents at the valuation date) ÷ Cash outflows of the Company under the basic scenario × 100% |
2. | Overall liquidity coverage ratio of the Company under the stressed scenario = (Cash inflows of the Company under the stressed scenario + Book value of cash and cash equivalents at the valuation date + the amount of realizable liquid asset reserves) ÷ Cash outflows of the Company under the stressed scenario × 100% |
3. | Liquidity coverage ratio without considering asset realization under the stressed scenario = (Cash inflows of the Company under the stressed scenario + Book value of cash and cash equivalents at the valuation date) ÷ Cash outflows of the Company under the stressed scenario × 100% |
4. | Backtracking adverse deviation rate of net cash flow from operating activities = (Actual value of net cash flow from operating activities – Predicted value of net cash flow from operating activities) ÷ Absolute value of the predicted value of net cash flow from operating activities |
5. | Net cash flow from operating activities = Cumulative cash inflows from operating activities of the current year – Cumulative cash outflows from operating activities of the current year |
6. | Net cash flow from operating activities of participating account = Cumulative cash inflows from operating activities of participating account of the current year – Cumulative cash outflows from operating activities of participating account of the current year |
7. | Net cash flow from operating activities of universal account = Cumulative cash inflows from operating activities of universal account of the current year – Cumulative cash outflows from operating activities of universal account of the current year |
8. | Proportion of cash and liquidity management tools = Book value of cash and liquidity management tools at the end of the period ÷ Ending balance of total assets after deducting the balance of bonds sold under agreements to repurchase and assets held in separate accounts × 100% |
9. | Quarterly average of financing leverage ratio = Arithmetic average of total balance of inter-bank lending and bonds sold under agreements to repurchase at the end of each month within a quarter ÷ Ending balance of total assets × 100% |
10. | Proportion of domestic fixed-income assets under (including) class AA = Book value of domestic fixed-income assets under (including) class AA at the end of the period ÷ Ending balance of total assets after deducting the balance of bonds sold under agreements to repurchase and assets held in separate accounts × 100% |
11. | Proportion of listed stock investment with a shareholding of over 5% = Total book value of listed stock investment with a shareholding of over 5% ÷ Ending balance of total assets × 100% |
12. | Proportion of receivables = (Book value of premiums receivable at the end of the period + Book value of reinsurance accounts receivable at the end of the period) ÷ Ending balance of total assets × 100% |
13. | Proportion of holding related-party assets = Total investment assets of counterparties (who are related parties) held ÷ Ending balance of total assets × 100% |
– 26 –
(3) | Key Operating Indicators |
Unit: RMB million | ||||||||
| ||||||||
Figures of | Cumulative | |||||||
the Current | Figures of the | |||||||
Name of Indicators | Quarter | Current Year | ||||||
| ||||||||
Gross written premiums | 327,221 | 327,221 | ||||||
Net income | 16,997 | 16,997 | ||||||
Total assets | 5,342,002 | 5,342,002 | ||||||
Net assets | 465,126 | 465,126 | ||||||
Insurance contracts liabilities | 4,114,951 | 4,114,951 | ||||||
Basic earnings per share (RMB) | 0.63 | 0.63 | ||||||
Net assets yield1 | 3.75% | 3.75% | ||||||
Total assets yield2 | 0.32% | 0.32% | ||||||
Net Investment yield3 | 1.02% | 1.02% | ||||||
Comprehensive investment yield4 | 1.22% | 1.22% | ||||||
|
Notes:
1. | Net assets yield = Net profit ÷ [(Net assets at the beginning of the period + Net assets at the end of the period) ÷ 2] × 100% |
2. | Total assets yield = Net profit ÷ [(Total assets at the beginning of the period + Total assets at the end of the period) ÷ 2] × 100% |
3. | Net investment yield = (Investment income + Profit and loss from fair value changes + Profit and loss from exchange – Impairment loss of investment assets – Taxes and surcharges of investment – Interest expense) ÷ Average balance of funds application during the reporting period × 100% |
4. | Comprehensive investment yield = (Investment income + Profit and loss from fair value changes + Profit and loss from exchange + Net change in fair value of financial assets available for sale – Impairment loss of investment assets – Taxes and surcharges of investment – Interest expense) ÷ Average balance of funds application during the reporting period × 100% |
The key operating indicators are the results of data calculated according to the “Solvency Regulatory Rules for Insurance Companies No.18: Solvency Report”.
4. | RISK MANAGEMENT CAPABILITY |
(1) | Type of the Company |
1) | In accordance with the requirements under Article 5 and Article 6 of the “Solvency Regulatory Rules for Insurance Companies No. 12: Solvency Aligned Risk Management Requirements and Assessment” with respect to the criteria for classification of companies, the Company is a Type I insurance company. |
– 27 –
2) | The Company is a life insurance company established in Beijing, China on June 30, 2003 according to the Company Law and the Insurance Law of the People’s Republic of China, and was listed overseas in December 2003 and returned to the domestic market as an A-share listed company in January 2007. |
3) | In 2022, the Company had written premium of RMB690,730 million (unaudited), total assets of RMB5,145,794 million and 36 provincial branches. |
(2) | Assessment Results of the Recent Solvency Aligned Risk Management Requirements and Assessment |
The CBIRC conducted an assessment of Solvency Aligned Risk Management Requirements and Assessment (SARMRA) on the Company in 2022. According to the “Letter of Opinions from the Solvency Supervision Department of the CBIRC Regarding the 2022 SARMRA On-site Assessment of China Life Insurance Company Limited” (Yin Bao Jian Chang Fu [2023] No. 14), the Company got a score of 84.83 in the 2022 assessment and the respective scores in nine areas are as follows:17.05 in the foundation and environment of risk management, 8.01 in the objectives and tools of risk management, 8.5 in insurance risk management, 8.33 in market risk management, 8.5 in credit risk management, 8.38 in operational risk management, 8.74 in strategic risk management, 8.6 in reputational risk management, and 8.72 in liquidity risk management.
(3) | Measures for the Improvement of Risk Management Adopted During the Reporting Period and Their Progress |
Firstly, the Company further proceeded with the construction of its risk management system. In accordance with the “Regulatory Rules on the Second Phase Project of China Risk-Oriented Solvency System (C-ROSS)” issued by the CBIRC, the Company made amendments to the internal rules and regulations in connection with risk management such as the “Measures for the Administration of Reputational Risk of China Life Insurance Company Limited” and devoted more efforts to refine and optimize the internal rules and regulations on risk management, so as to enhance the operability of such internal rules and regulations. Further, the Company paid more attention to the implementation of the internal rules and regulations, gave full play to the functions of various risk management tools and risk control measures, and made further improvements to SARMRA and the mechanism on Integrated Risk Rating (IRR), aiming to enhance its ability of risk management through rectification of any issues identified.
Secondly, the Company continued to optimize the top-level design for risk management to strengthen the coordinating and leading roles of the Board of Directors and its specialized committees in risk management. In this design, the function of the Risk Management Committee on overall risk management and control was highlighted. The Committee organized and held the first meeting of the Risk Management Committee for 2023, further strengthened its efforts to keep track of outstanding risks and key issues, and enhanced its capability in risk prevention and defusion in a practical manner.
– 28 –
Thirdly, the Company consistently promoted the construction of information-oriented and intelligent risk management. An in-depth analysis was made in respect of the needs of the Company for connection to the risk systems and its demand for risk data for the purpose of improving the risk management system of the Company on an ongoing basis. The Company consistently improved the indicators for monitoring suspicious transactions to increase the ability of its system for anti-money laundering information management to monitor suspicious transactions. The Company also comprehensively promoted the intelligent early warning system for sale risks and the contact persons system for workplace risk control, and consistently enhanced its ability in risk monitoring and early warning, so as to vigorously reinforce its risk prevention and control at the grassroot level.
(4) | Self-assessment on Risk Management |
The Company did not conduct an annual self-assessment on solvency risk management in this quarter.
During the quarter, the Company continued to proceed with rectification and upgrading measures, sorted out and refined all existing issues on an individual basis, stepped up its efforts to rectify such issues, and continuously enhanced its capability of risk management, after taking into account the feedback from the CBIRC’s inspection in 2018 and the 2022 self-assessment results.
5. | INTEGRATED RISK RATING (IRR) (CLASSIFICATION REGULATION) |
(1) | Information of the Company’s IRR |
To date, according to the C-ROSS Supervision Information System of the CBIRC, the results of the IRR of the Company in the third and fourth quarters of 2022 were AAA and AA Category, respectively.
(2) | Self-assessment on Risk Management |
The Company conducts an assessment on the insurance risk, market risk, credit risk, strategic risk, operational risk, reputational risk, liquidity risk and other risks faced by it on a quarterly basis, and a comprehensive risk management quarterly report will be prepared and submitted to the President’s Office of the Company for review.
– 29 –
For strategic risk, as the development of the PRC has entered a period of both strategic opportunities and risk challenges with increasing uncertainty and unpredictability, the Company pays additional attention on the prevention and control of financial risks, and is always committed to offering comprehensive risk protection to the whole society as the cornerstone of its business. The Company continued to facilitate the upgrade of products and services, marketing system and ecological platform, aimed to make progress while maintaining stability in business development, and prepared a report of the management team of the Company on business operation and management every quarter and an evaluation report on the implementation of medium- to long-term planning every year through the regular monitoring and evaluation of strategic plan implementation, so as to strengthen the management of strategic risk. In general, the high-quality development tended to be stable with good momentum for growth.
For operational risk, the Company improved the operation of its risk management mechanism, consistently optimized the development of three management tools, namely loss data room for operational risk, self-assessment on risk control, and key risk indicators monitoring, to build an operational risk management system featuring full chain. The Company continued to strengthen management and control, devoted more efforts to offer training and education, increased awareness on risk compliance, and effectively integrated the requirements for operational risk management into all levels, lines, processes and aspects of business operation and management. The Company also conducted an analysis on the loss data for operational risk as well as key risk indicators monitoring on a quarterly basis, and prepared the quarterly report for submission to its management for review.
For reputational risk, the Company strictly and closely monitored public opinions through the real-time monitoring of media around the clock for seven days a week, and strengthened its efforts to analyze public opinions by grasping their main characteristics and development trends, in order to seize the initiative to address the public opinions. The public opinions on the Company remained stable in general and there was no major incident of reputational risk for the Company in this quarter.
For liquidity risk, the Company constantly stepped up its effort in liquidity risk management, monitored the regulatory indicators and monitoring indicators for liquidity risk on a quarterly basis, and carried out stress tests on cash flows in accordance with the requirements under the “Solvency Regulatory Rules for Insurance Companies No. 13: Liquidity Risk” and its own regulations.
6. | SIGNIFICANT EVENTS |
(1) | Branches |
Provincial branches newly approved for operation during the reporting period:
No event involving major branches occurred.
– 30 –
(2) | Material Reinsurance Contracts |
1) | Material reinsurance inward contracts entered into during the reporting period: |
No event involving material reinsurance inward contracts occurred.
2) | Material reinsurance outward contracts entered into during the reporting period: |
No event involving material reinsurance outward contracts occurred.
(3) | Top Three Products During the Reporting Period in Terms of Surrender Payment and Comprehensive Surrender Rate |
1) | Top three products during the reporting period in terms of surrender payment |
Unit: RMB million
Name of products | | Type of products | | Sales channel | Current quarter | | Cumulative figures for the year | | ||||||||||||||||
Surrender payment | Surrender rate | Surrender payment | Surrender rate | |||||||||||||||||||||
China Life Xin Ying Annuity Insurance (Type A) (國壽鑫盈年金保險(A款)) | Traditional | Exclusive individual agent, etc. | 3,982 | 45.56 | % | 3,982 | 45.56 | % | ||||||||||||||||
Kang Ning Whole Life Insurance (康寧終身保險) | Traditional | Exclusive | 682 | 0.18 | % | 682 | 0.18 | % | ||||||||||||||||
China Life Happy Life Annuity Insurance (Participating Insurance) (國壽美滿一生年金 保險 (分紅型)) | Participating | Exclusive | 652 | 0.41 | % | 652 | 0.41 | % |
2) | Top three products during the reporting period in terms of comprehensive surrender rate |
Unit: RMB million
Name of products | | Type of products | | Sales channel | Current quarter | | Cumulative figures for the year | | ||||||||||||||||
Surrender payment | Surrender rate | Surrender payment | Surrender rate | |||||||||||||||||||||
China Life Xin Ying Annuity Insurance (Type A) (國壽鑫盈年金保險(A款)) | Traditional | Exclusive individual agent, etc. | 3,982 | 45.56 | % | 3,982 | 45.56 | % | ||||||||||||||||
China Life Xin Ying Annuity Insurance (Type B) (國壽鑫盈年金保險(B款)) | Traditional | Exclusive | 7 | 21.86 | % | 7 | 21.86 | % | ||||||||||||||||
China Life Supplemental Care for lifetime long-term health insurance (國壽附加關愛一生 長期健康保險) | Traditional | Exclusive | 0.01 | 21.39 | % | 0.01 | 21.39 | % |
The surrender rate is the result of data calculated according to the formula of comprehensive surrender rate set out in the “Solvency Regulatory Rules for Insurance Companies No. 18: Solvency Report”.
– 31 –
(4) | Major Investments |
Major investments made during the reporting period:
Unit: RMB million
No. | Type | Investment target | Time of investment | Investment amount | Book value at the end of the | |||||||||||||||||||||
At the beginning of the period | At the end of the period | Change | ||||||||||||||||||||||||
1 | Subsidiary | Shanghai Wansheng Industry Partnership (Limited Partnership) | January 2023 | 4,036 | 4,048 | 12 | 4,048 | |||||||||||||||||||
2 | Subsidiary | Golden Phoenix Tree Limited | February 2023 | – | 264 | 264 | 264 | |||||||||||||||||||
3 | Subsidiary | Beijing China Life Pension Industry Investment Fund (Limited Partnership) | March 2023 | 2,392 | 2,602 | 210 | 2,602 | |||||||||||||||||||
4 | Associated corporation | Wonders Information Co., Ltd. | January 2023 | 3,298 | 3,898 | 600 | 2,936 | |||||||||||||||||||
5 | Joint venture | China Life Beautiful Village (Danjiangkou) Industrial Fund Partnership (Limited Partnership) | March 2023 | 3 | 33 | 30 | 33 |
It was determined after an assessment that the above major investments had no material impact on the solvency ratios of the Company.
(5) | Significant Investment Losses |
Significant investment losses incurred during the reporting period:
No event involving significant investment losses occurred.
(6) | Major Financing Activities |
Major financing activities carried out during the reporting period:
No event involving major financing activities occurred.
(7) | Major Connected Transactions |
Major connected transactions occurred during the reporting period:
Major connected transactions have been disclosed on the official website of the Company. For specific information, please logon to the official website of the Company (www.e-chinalife.com, route query: Home Page – Public Information Disclosure – Information of Special Events) for inspection.
– 32 –
(8) | Material Guarantees |
1) | Executed material guarantee contracts existed during the reporting period: |
No event involving material guarantee contracts occurred.
2) | Outstanding material guarantee contracts existed as of the date of the solvency report: |
No event involving outstanding material guarantee contracts occurred.
(9) | Other Significant Events |
No other significant event occurred that had a material effect on the solvency of the Company.
7. | MANAGEMENT ANALYSIS AND DISCUSSION |
(1) | Change of Solvency Ratios and the Reasons therefor |
As at March 31, 2023, the core solvency ratio and comprehensive solvency ratio of the Company were 147.53% and 210.19%, respectively, representing the increase of 3.94 percentage points and 3.41 percentage points as compared to those as at the end of the previous quarter. The main reason for the change is divided into two aspects: firstly, actual capital increased by RMB49,191 million from the end of the previous quarter, as a result of which the comprehensive solvency ratio increased by 10.09 percentage points. In particular, admitted assets rose by RMB197,935 million from the end of the previous quarter, which was primarily due to an increase of RMB119,104 million in investment assets and an increase of 41,636 million in cash and liquidity management tools; and admitted liabilities rose by RMB148,744 million from the end of the previous quarter, which was mainly attributable to an increase of RMB213,472 million in reserve liabilities and a decrease of RMB37,453 million in payables and advance receipts. Secondly, the minimum capital rose by RMB15,487 million from the end of the previous quarter, as a result of which the comprehensive solvency ratio decreased by 6.68 percentage points. In particular, the minimum capital for insurance risk grew by RMB548 million, the minimum capital for market risk rose by RMB16,368 million, and the minimum capital for credit risk increased by RMB3,053 million. In general, the core solvency ratio and comprehensive solvency ratio of the Company are well above the regulatory requirements, and the Company has sufficient solvency.
– 33 –
(2) | Change of Regulatory Indicators for Liquidity Risk and the Reasons therefor |
As at the end of the first quarter of 2023, the regulatory indicators for liquidity risk of the Company were conformed to the regulatory standards. There was no significant change in the liquidity coverage ratio as compared to that of the previous quarter. Backtracking of net cash flow from operating activities has shown positive deviation, and the net cash flow of the first quarter amount to RMB39,862 million. Pursuant to the provisions of the “Solvency Regulatory Rules for Insurance Companies No. 13: Liquidity Risk” and the relevant requirements, the Company has 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.
(3) | Analysis of the Change in the IRR Results |
According to the C-ROSS Supervision Information System of the CBIRC, the result of the IRR of the Company in the fourth quarter of 2022 was AA Category, which maintained at A Category.
(4) | Analysis of the Key Risks Faced by the Company |
As the development of the PRC has entered a period of both strategic opportunities and risk challenges with increasing uncertainty and unpredictability, the correlation and contagion of various risks in the insurance industry are amplified under the current macro-economic situation and the new media environment. Any risk, once occurred, may not only affect the business operation of the Company but also pose challenges to the entire industry. For the next stage, the Company will close monitor risks in key areas such as real estate, small and medium-sized financial institutions and debts of local governments, strengthen the research and analysis of market risks such as interest rate risk and equity price, and take an active role in improving the management of market risk and credit risk. In the meanwhile, the reputational risk will be one of the key risks faced by the Company. In addition to the common disputes including policy surrender, sales and claims settlement, issues such as disputes over renewal of policies, privacy protection and insurance discrimination will gradually become the new areas of focus of public opinions with respect to consumer protection. These public opinions are topics of attraction that can easily stir up negative emotions of the public, and the illegal policy surrender may also add fuel to the fire, which will bring additional pressure to the reputational risk management of the Company.
Subsequently, the Company will give additional focus on the above key risks on a daily basis and keep track of their development on a monthly basis, dig out the reasons for such risks, pinpoint their sources, set out governance measures against them, and ensure that the risks are preventable and controllable through dynamic management.
– 34 –
8. | OPINIONS FROM EXTERNAL INSTITUTIONS |
(1) | Reports Received from External Institutions During the Reporting Period |
1) | Audit reports received from auditors during the reporting period: |
PricewaterhouseCoopers Zhong Tian LLP, an auditor engaged by the Company, issued an audit report (PricewaterhouseCoopers Zhong Tian Te Shen Zi (2023) No. 0423), and was of the view that the special financial statements for solvency issued by the Company on December 31, 2022 were prepared, in all material respects, in accordance with the basis of preparation set forth in Note 2 in the notes to the special financial statement for solvency (such as the “Solvency Regulatory Rules II for Insurance Companies”, the “Notice of the CBIRC Regarding the Printing and Issue of the Solvency Regulatory Rules II for Insurance Companies” (Yin Bao Jian Fa [2021] No. 51), the “Notice of the CBIRC Regarding the Matters Relevant to the Implementation of the Solvency Regulatory Rules II for Insurance Companies” (Yin Bao Jian Fa [2021] No. 52) and the 2022 Financial Statements and Relevant Financial and Accounting Records approved by the Board of Directors of the Company, etc.).
PricewaterhouseCoopers Zhong Tian LLP, an auditor engaged by the Company, issued an audit report on internal control (PricewaterhouseCoopers Zhong Tian Te Shen Zi (2023) No. 0437), and was of the view that the Company maintained an effective internal control over financial reporting in all material respects as of December 31, 2022 in accordance with the “Standard Regulations on Corporate Internal Control” and the relevant requirements.
PricewaterhouseCoopers Zhong Tian LLP, an auditor engaged by the Company, issued an audit report (PricewaterhouseCoopers Zhong Tian Shen Zi (2023) No. 10089), and was of the view that the consolidated and company balance sheets as at December 31, 2022, as well as the consolidated and company income statements, the consolidated and company cash flow statements and the consolidated and company statements of changes in shareholders’ equity for the year 2022 and the notes to the financial statements were prepared, in all material respects, in accordance with the “Enterprise Accounting Standards”, which gave a fair view of the consolidated and company’s financial position as at December 31, 2022, and the consolidated and company’s performance results and cash flows for the year 2022.
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PricewaterhouseCoopers Zhong Tian LLP, an auditor engaged by the Company, issued an audit report (PricewaterhouseCoopers Zhong Tian Te Shen Zi (2023) No. 0440), and was of the view that the income statement for participating insurance for the year 2022, the balance sheet for participating insurance as at December 31, 2022 and the notes to the financial statements were prepared, in all material respects, in accordance with the basis of preparation set forth in Note 2 in the notes to the special financial statements for participating insurance.
PricewaterhouseCoopers Zhong Tian LLP, an auditor engaged by the Company, issued an audit report (PricewaterhouseCoopers Zhong Tian Te Shen Zi (2023) No. 0420), and was of the view that the balance sheet for separate accounts of investment-linked insurance of the Company as at December 31, 2022, the investment income statement and the statement of changes in net assets for the year 2022 and the notes to the financial statements were prepared, in all material respects, in accordance with the basis of preparation set forth in Note 2 in the notes to the financial statements for investment-linked insurance accounts.
2) | Review reports received during the reporting period: |
No relevant circumstance occurred during the reporting period.
3) | Credit rating reports received from rating agencies during the reporting period: |
The Company received announcements on the credit rating information from two rating agencies, namely China Chengxin and China Credit Rating. China Chengxin maintained the corporate credit rating of the Company as AAA, with stable outlook; and China Credit Rating maintained the corporate credit rating of the Company as AAA+, with stable outlook. In comparison with the results of the previous period, the results of credit rating were unchanged. The Company will continue to keep a close eye on its own credit rating.
(2) | Change of External Institutions During the Reporting Period |
No relevant circumstance occurred during the reporting period.
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9. | ACTUAL CAPITAL |
(1) | Admitted Assets |
Unit: RMB million | ||||||||||||||||||||||||
Figures of the Current Quarter | Figures of the Preceding Quarter | |||||||||||||||||||||||
Book | Unadmitted | Admitted | Book | Unadmitted | Admitted | |||||||||||||||||||
Items | Value | Value | Value | Value | Value | Value | ||||||||||||||||||
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Cash and liquidity management tools | 200,656 | – | 200,656 | 159,020 | – | 159,020 | ||||||||||||||||||
Investment assets | 4,493,727 | 601 | 4,493,126 | 4,375,374 | 1,352 | 4,374,022 | ||||||||||||||||||
Equities in subsidiaries, joint ventures and associates | 187,585 | -10,206 | 197,791 | 183,553 | -9,814 | 193,367 | ||||||||||||||||||
Reinsurance assets | 7,613 | -27,605 | 35,218 | 7,840 | -27,549 | 35,389 | ||||||||||||||||||
Receivables and prepayments | 370,849 | – | 370,849 | 334,764 | – | 334,764 | ||||||||||||||||||
Fixed assets | 48,755 | – | 48,755 | 49,381 | – | 49,381 | ||||||||||||||||||
Land use rights | 7,241 | – | 7,241 | 7,304 | – | 7,304 | ||||||||||||||||||
Assets held in separate accounts | 7 | – | 7 | 7 | – | 7 | ||||||||||||||||||
Other admitted assets | 25,569 | 7,568 | 18,001 | 28,551 | 8,096 | 20,455 | ||||||||||||||||||
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Total | 5,342,002 | -29,642 | 5,371,644 | 5,145,794 | -27,915 | 5,173,709 | ||||||||||||||||||
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(2) | Admitted Liabilities |
Unit: RMB million | ||||||||
Figures of | Figures of | |||||||
the Current | the Preceding | |||||||
Items | Quarter | Quarter | ||||||
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Reserve liabilities | 3,495,073 | 3,281,601 | ||||||
Financial liabilities | 490,922 | 515,361 | ||||||
Payables and advance receipts | 235,999 | 273,452 | ||||||
Estimated liabilities | – | – | ||||||
Liabilities of separate accounts | 7 | 7 | ||||||
Capital liabilities | 10,232 | 13,717 | ||||||
Other admitted liabilities | 82,619 | 81,970 | ||||||
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Total | 4,314,852 | 4,166,108 | ||||||
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(3) | Actual Capital |
Unit: RMB million | ||||||||
Figures of | Figures of | |||||||
the Current | the Preceding | |||||||
Items | Quarter | Quarter | ||||||
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Core Tier 1 capital | 683,678 | 651,956 | ||||||
Net assets | 465,126 | 441,818 | ||||||
Adjustments to net assets | 218,552 | 210,138 | ||||||
Book value of unadmitted assets | -8,169 | -9,448 | ||||||
Difference between admitted value and book value of long-term equity investments | 10,206 | 9,814 | ||||||
Fair value increment (deducting the effects of impairment, depreciation and income tax) of investment property | – | – | ||||||
Deferred income tax assets (excluding deferred income tax assets caused by operating losses) | -12,620 | -14,935 | ||||||
Catastrophe risk reserves for agricultural insurance | – | – | ||||||
Policy future surplus included in Core Tier 1 capital | 201,530 | 197,158 | ||||||
Amount of capital instrument attributable to liabilities that meets the Core Tier 1 capital standards and could be included in Core Tier 1 capital as required | – | – | ||||||
Other adjustments stipulated by the CBIRC | 27,605 | 27,549 | ||||||
Core Tier 2 capital | 58,088 | 47,733 | ||||||
Preferred stock | – | – | ||||||
Policy future surplus included in Core Tier 2 capital | 68,320 | 61,450 | ||||||
Other Core Tier 2 capital | – | – | ||||||
Less: the amount that should be deducted for exceeding the limit | 10,232 | 13,717 |
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Unit: RMB million | ||||||||
Figures of | Figures of | |||||||
the Current | the Preceding | |||||||
Items | Quarter | Quarter | ||||||
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Supplementary Tier 1 capital | 312,501 | 305,977 | ||||||
Subordinated term debt | – | – | ||||||
Capital supplementary bonds | 34,997 | 34,997 | ||||||
Convertible subordinated debt | – | – | ||||||
Deferred income tax assets (excluding deferred income tax assets caused by operating losses) | 12,620 | 14,935 | ||||||
Amount of fair value increment (deducting the effects of impairment, depreciation and income tax) of investment property (including investment property held by insurance companies through property rights or subsidiaries, etc.) that could be included in the Supplementary Tier 1 capital | – | – | ||||||
Policy future surplus included in the Supplementary Tier 1 capital | 264,884 | 256,045 | ||||||
Other Supplementary Tier 1 capital | – | – | ||||||
Less: the amount that should be deducted for exceeding the limit | – | – | ||||||
Supplementary Tier 2 capital | 2,525 | 1,935 | ||||||
Contingent capital and other Supplementary Tier 2 capital | – | – | ||||||
Policy future surplus included in the Supplementary Tier 2 capital | 2,525 | 1,935 | ||||||
Less: the amount that should be deducted for exceeding the limit | – | – | ||||||
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Total of actual capital | 1,056,792 | 1,007,601 | ||||||
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10. | MINIMUM CAPITAL |
Unit: RMB million | ||||||||
Figures of | Figures of | |||||||
the Current | the Preceding | |||||||
Items | Quarter | Quarter | ||||||
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Minimum capital for quantitative risk | 510,900 | 494,962 | ||||||
Total of minimum capital for life insurance risk | 113,264 | 112,576 | ||||||
Life insurance risk – minimum capital for loss risk | 85,913 | 86,344 | ||||||
Life insurance risk – minimum capital for surrender risk | 58,269 | 56,419 | ||||||
Life insurance risk – minimum capital for expense risk | 14,505 | 14,532 | ||||||
Life insurance risk – risk diversification effect | 45,423 | 44,719 | ||||||
Total of minimum capital for non-life insurance risk | 11,633 | 11,773 | ||||||
Non-life insurance risk – minimum capital for premium and reserve risk | 11,633 | 11,773 | ||||||
Non-life insurance risk – minimum capital for catastrophe risk | – | – | ||||||
Non-life insurance risk – risk diversification effect | – | – | ||||||
Market risk – total of minimum capital | 481,750 | 465,382 | ||||||
Market risk – minimum capital for interest rate risk | 223,893 | 208,029 | ||||||
Market risk – minimum capital for equity price risk | 440,278 | 426,851 | ||||||
Market risk – minimum capital for property price risk | 17,382 | 15,812 | ||||||
Market risk – minimum capital for overseas fixed income asset price risk | 240 | 191 | ||||||
Market risk – minimum capital for overseas equity asset price risk | 32,235 | 34,044 | ||||||
Market risk – minimum capital for exchange rate risk | 5,353 | 5,628 | ||||||
Market risk – risk diversification effect | 237,631 | 225,173 | ||||||
Credit risk – total of minimum capital | 80,538 | 77,485 | ||||||
Credit risk – minimum capital for interest spread risk | 44,619 | 40,774 | ||||||
Credit risk – minimum capital for counterparty default risk | 56,816 | 56,480 | ||||||
Credit risk – risk diversification effect | 20,897 | 19,769 |
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Unit: RMB million | ||||||||
Figures of | Figures of | |||||||
the Current | the Preceding | |||||||
Items | Quarter | Quarter | ||||||
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Quantitative risk diversification effect | 125,043 | 122,699 | ||||||
Loss absorption effect of special types of insurance contracts | 51,242 | 49,555 | ||||||
Loss absorption adjustment – not considering upper bound | 51,242 | 49,555 | ||||||
Upper bound for loss absorption effect adjustment | 213,420 | 206,611 | ||||||
Minimum capital for control risk | -8,123 | -7,672 | ||||||
Additional minimum capital | – | – | ||||||
Counter-cyclical additional minimum capital | – | – | ||||||
Additional minimum capital for D-SII | – | – | ||||||
Additional minimum capital for G-SII | – | – | ||||||
Other additional minimum capital | – | – | ||||||
Total of minimum capital | 502,777 | 487,290 | ||||||
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This announcement is published in both Chinese and English. Should there be inconsistency between the Chinese and English versions, the Chinese version shall prevail.
By Order of the Board | ||
China Life Insurance Company Limited | ||
Heng Victor Ja Wei | ||
Company Secretary |
Hong Kong, April 27, 2023
As at the date of this announcement, the board of directors of the Company comprises:
Executive Directors: | Bai Tao, Zhao Peng, Li Mingguang | |
Non-executive Director: | Wang Junhui | |
Independent Non-executive Directors: | Lam Chi Kuen, Zhai Haitao, Huang Yiping, Chen Jie |
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