China Life, which shares the same birth and glory with the nation, recently officially celebrated its 75th anniversary. The development over these 75 years has been a vigorous growth from a single spark to a raging fire, a leap from participating in the industry to leading it, and an elevation from domestic leadership to world-class status.
Such achievements are attributed to China Life's company strategy that adapts to the times and moves with the trend at every stage. It has consistently made the right choices in the industry's selection between speed and quality, scale and efficiency at every historical crossroads. Moreover, China Life has always practiced the original mission of serving the country with finance and the people with insurance. As a central enterprise and a leader in the industry, it has been committed to serving the "great matters of the nation," integrating its own development into the national strategy.
Recently, the third "National Ten Articles" policy for the insurance industry was introduced, marking the official arrival of a new era of high-quality development for the insurance industry. At the same time, the positioning of "finance as a national instrument" has further strengthened industry confidence and stimulated development vitality.
Achievements, confidence, and the future often complement each other. After achieving remarkable development, China Life Insurance Company Limited (hereinafter referred to as "China Life Insurance Company"), as a core member of China Life Insurance (Group) Company, has a future full of imagination.
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"Pioneer" navigation: Multi-dimensional high-quality development continues to advance, and seventy-five years have achieved comprehensive leapfrog growth.
Continuous breakthroughs are the most distinctive feature of China Life Insurance Company's development in recent years. Both the indicators that continue to break through and set the best levels in the same period of history, and the company strategy that adapts to the times and moves with the trend, are the best proof of this.
In the first half of 2024, during the transformation and tough stage of the insurance industry, especially when the growth rate of the life insurance industry slowed down due to the high base number, China Life Insurance Company achieved high-quality growth in many indicators, showing the transformation and development of the pioneer. Data shows that as of June 30, 2024, the company's total assets and investment assets both exceeded 6 trillion yuan, reaching 6.22 trillion yuan and 6.09 trillion yuan, respectively, with an increase of 10.1% and 12.5% over the end of the previous year, respectively. The embedded value exceeded 1.4 trillion yuan, ranking first in the industry. In the first half of 2024, the operating income was 234.216 billion yuan, a year-on-year increase of 23.3%; the net profit attributable to the mother company was 38.278 billion yuan, a year-on-year increase of 10.6%; the premium scale set the best level in the same period of history, with a total premium of 489.566 billion yuan, a year-on-year increase of 4.1%; the new business value in the first half of the year reached 32.262 billion yuan, a year-on-year increase of 18.6% compared to the restated results of 2023...
The good data is the current stage result, and more importantly, there is a clear growth expectation for the future. The optimization of the business structure and the steady increase of long-term business have opened up the space for future high-quality development. At the same time, the channel reform has also achieved significant results. Under the in-depth promotion of the marketing system reform, the individual insurance channel has not only achieved the stabilization and rebound of the number of agents but also strengthened the premium income and new business value. Moreover, the layout of the new marketing model "Seed Plan" has also初见成效; the value contribution of the bank insurance channel has increased after "unifying reporting and action", and the dual-wheel drive of growth has officially taken shape.
Looking deeper, this is also due to the forward-looking value transformation of China Life Insurance Company, and the strategy is clear and precise at different stages. It is reported that since 2014, China Life Insurance Company has begun value transformation, including implementing a new basic law, optimizing the sales team and improving productivity, and actively reducing lump-sum business, etc., transforming from a scale and speed type to a scale and benefit type, and is committed to building a world-class life insurance company. This action is not only very bold in the industry but also very forward-looking. As a result, many important indicators at that time were improved, and the quality of business and team quality were stable and rising. Subsequently, China Life Insurance Company has achieved several important node breakthroughs. In 2016, its first-year term premium ratio exceeded the lump-sum premium for the first time, and in 2017, the premium income reached the 50 billion platform.In 2019, China Life Insurance Company initiated a series of reforms called the "Dingxin Project," completing the adjustment of its organizational structure and the optimization of its business model. The company promoted the transformation of its sales force towards professionalism and vocationalization, significantly strengthening recruitment, selection, and management, and driving business development with an effective team. At the same time, the company implemented a classified and graded management system for its institutions, focusing on grassroots and frontline operations, and introduced a market-oriented compensation and performance management system. The "Dingxin Project" planned to lay the foundation in one year, build the framework in two years, and see results in three years. By 2020, the total premium scale of China Life Insurance Company exceeded the 600 billion yuan mark, reaching 612.265 billion yuan, while indicators such as embedded value and new business value ranked first in the industry.
By the end of 2022, China Life Insurance Company launched a new business strategy—"The Eight Major Projects." Through innovation and breakthroughs in eight areas, including party building leadership, talent construction, marketing reform, resource integration, customer management, government and enterprise cooperation, ecological drive, and digital transformation, the company aims to comprehensively upgrade its development momentum to achieve quality, efficiency, and power transformation.
Now, as the central government repositions the financial industry, the mission and function of the insurance industry need to be brought into play. At this moment, China Life Insurance Company is planning a new round of comprehensive deepening reforms, actively practicing the business philosophy of "three adherences, three improvements, and three breakthroughs," focusing on strengthening core functions and enhancing core competitiveness to build a world-class enterprise and write a new chapter of high-quality development as the "leader" of the life insurance industry.
Growing and prospering together with the nation: From a spark to a prairie fire, leading the industry's development and serving the "great matters of the country"
From a spark to a prairie fire is the development trajectory of China's insurance industry and a vivid portrayal of China Life's steady development.
In 1949, the same year the People's Republic of China was established, the central government approved the establishment of the first domestic insurance company, marking the beginning of China Life's development.
In 1958, domestic insurance business was completely suspended, and the spark of the insurance industry faced a major challenge and barely survived.
In 1980, domestic insurance business was resumed, and the spark did not extinguish, and the fire was just starting.
These were the key years that historically determined the existence or non-existence of insurance.
In 1984, the former People's Insurance Company of China established a life insurance department, igniting the spark of the life insurance industry.In 1996, China Life Insurance Company Limited, the predecessor of China Life Insurance Company, was officially established and began specialized operations.
In 1999, China Life Insurance Company was officially unveiled, with China Life emerging as an independent brand before the world.
The core theme of these years can perhaps be summarized as initiation and exploration. As the market economy system stimulated rapid economic development in China, especially after China joined the World Trade Organization (WTO) at the end of 2001, the high degree of openness in the insurance industry also attracted many foreign institutions, jointly promoting China's life insurance industry into a period of rapid development.
At this time, China Life Insurance Company also ushered in its own milestone:
In 2003, reorganization and restructuring finally ignited a prairie fire, China Life Insurance Company accelerated the pace of reform and development, reorganized and restructured into China Life Insurance (Group) Company, and exclusively initiated the establishment of China Life Insurance Company. On December 17 and 18 of the same year, China Life Insurance Company was listed on the New York Stock Exchange and the Hong Kong Stock Exchange, respectively, creating the largest global IPO record of that year. Three years later, on January 9, 2007, it was listed on the A-share market, becoming the first insurance company to be listed in Hong Kong, Shanghai, and New York, China (it has since withdrawn from the New York Stock Exchange).
Subsequently, China Life Insurance (Group) Company successively opened up asset management, property insurance, pension insurance and other sectors, and the "scale effect" promoted development; after China Life Insurance Company became the single largest shareholder of Guangfa Bank, the comprehensive financial group advantage of China Life Group was established, and the "life insurance +" collaborative advantage of China Life Insurance Company was further strengthened.
The development at that time was influenced by many factors, but it is particularly worth noting the strong promotion of policies. In 2006 and 2014, the State Council issued "Several Opinions on the Reform and Development of the Insurance Industry" and "Several Opinions on Accelerating the Development of the Modern Insurance Service Industry" respectively. China is striving to transform from an insurance power to an insurance powerhouse, and China Life Insurance Company is one of the representative cases.
In fact, from the birth and listing of China Life Insurance Company to its development to date, it has always played multiple roles, not only as a participant and witness in the industry, but also as a leader and promoter in the industry. With its leading resources and experience, it has provided other market entities with a reference for reform in terms of system and mechanism, product services, channels, and even management concepts, always leading the industry.
It is worth noting that China Life Insurance Company not only leads the development of the industry as a "leader" but also actively plays the role of a state-owned enterprise, serving the "great matters of the country". For example, in terms of old-age care, in the first half of 2024, the insured elderly population exceeded 96.32 million people; in terms of promoting the development of new quality productive forces and serving the real economy, as of June 30, 2024, the stock investment scale of self-reliance in science and technology exceeded 320 billion yuan, and the investment scale in serving the real economy broke through 4.25 trillion yuan; in terms of rural revitalization, in the first half of 2024, China Life Insurance Company provided risk protection of 50.41 trillion yuan for 180 million rural people, and paid 8.072 billion yuan to 2.31 million people; in terms of green and low-carbon, in the first half of 2024, the green insurance amount reached 572.923 billion yuan, and as of June 30, 2024, the green investment stock scale exceeded 470 billion yuan.
Future with the country: deeply participate in the construction of a multi-level social security system, and integrate its own development into the national strategy.China Life, born and growing alongside the People's Republic, is closely aligning with the era's proposition of serving Chinese-style modernization by integrating its development into national strategies.
Recently, the third "National Ten Articles" policy for the insurance industry was officially introduced, marking the arrival of a new era of high-quality development for the insurance sector. Two significant directions should not be overlooked: one is the future development space indicated from the product perspective, where the third pillar of pension insurance, health insurance, inclusive insurance, and variable return insurance have great potential; the other is leveraging the role of patient capital from insurance funds to actively serve the real economy.
As a state-owned large financial insurance enterprise that has been walking alongside the nation, China Life Insurance Company has been utilizing the unique functions and roles of insurance, deeply participating in the construction of a multi-layered social security system. It has been actively engaged in major illness insurance, policy-based long-term care insurance, corporate annuities, and individual pension funds, and has achieved remarkable results.
Data shows that as of June 30, 2024, China Life Insurance Company has undertaken more than 200 major illness insurance projects, over 70 policy-based long-term care insurance projects, and more than 120 city-customized commercial medical insurance projects, managing over 400 health protection entrusted management projects. In the realm of big health and elderly care, the China Life big health platform offers more than a hundred service items, and has laid out 17 institutional elderly care projects in 14 cities, accumulating nearly 4 trillion yuan in insurance reserves with elderly care attributes.
Insurance funds are characterized by long investment terms and large fund scales, naturally matching the concept of "long-term capital" and "patient capital." China Life Insurance Company actively assumes the role of a main force in serving the real economy and a ballast stone in maintaining financial stability, providing precise and efficient services for the development of new quality productive forces.
Only through hard work can a nation prosper. The financial industry, as a "national strategic asset," is an important force in comprehensively advancing the construction of a strong country and the great cause of national rejuvenation through Chinese-style modernization. At the same time, the "five major articles" have also pointed out the direction for the financial industry. China Life Insurance Company has integrated the writing of the "five major articles" into every specific business, making it more grounded and warmer. Whether it is using funds to support new quality productive forces, providing "insurance" strength for scientific and technological innovation, green insurance, green industry investment, or providing targeted protection and financial assistance for inclusive groups, offering truly matching products and services for the elderly, and integrating digitalization into every aspect of operation and management, these are all solid actions for success.
"All things thrive when they have their roots, and all affairs succeed when they follow their paths." China Life Insurance Company has always adhered to the core corporate culture of "cultivating oneself for the sake of others, and achieving others for the sake of oneself," and has always practiced the original mission of serving the country with finance and the people with insurance. In the process of playing the role of an economic shock absorber and a social stabilizer, it fully demonstrates the mission and value of a leading life insurance enterprise.