CHINA LIFE'S Q1 HURT BY INVESTMENTS

Weaker investment performance hurt first quarter profits at China's largest life insurer China Life Insurance. Gross written premiums and policy fees at China Life were up 39.5% during the quarter to Yuan101.6bn. But the company saw its earnings for the period down 61% year-on-year at Yuan3.47bn. The result included a Yuan5.5bn loss on the fair value of its investment portfolio caused by the dramatic falls in the Shanghai stock market earlier this year. In the first quarter of 007, the insurer benefited from a Yuan3.9bn fair value gain. Investment income in the first quarter this year at China Life totalled Yuan15.1bn, down 10% on the performance a year ago. According to Reuters, Shanghai's stock market has fallen by nearly a third this year. However the insurer's profits benefited last year when the Shanghai stock exchange saw its value grow 97%. China Life has begun actively investing in offshore equities, including initial public offerings in Hong Kong.