CHINA LIFE POSTS 97% GROWTH IN REVENUE FOR 2007 BUT WARNS OF TURBULENT TIMES AHEAD
China’s largest insurer, China Life, enjoyed a near doubling of its earnings in 2007, bringing in 38.8 billion yuan compared to the 19.96 billion it raised in 2006. It also recorded a 42% gain in profit, based mainly on a strong performance in terms of its investment returns during the second half of the year. Premiums grew by 12.5% to 111.9 billion yuan while China Life’s embedded value rose to 252.6 billion yuan, an increase of 38.8% on the 2006 figure. Although the results exceeded analysts’ expectations, China Life sounded a note of caution about the times ahead warning that a more turbulent investment environment could restrict the possibility of repeating last year’s performance. The 2007 figures were helped greatly by the 95% rise of the Shanghai benchmark index which reached a record high in October before beginning a relative retreat. However, China Life’s chairman stated that “in 2008, the company will face further challenges in view of the keen competition in the insurance industry and the uncertainty of the capital markets”.
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