China Life Insurance Company Limited: Company Profile and SWOT Analysis by WMIntelligence

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									China Life Insurance Company Limited

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China Life Insurance Company                                          Financial Snapshot

Limited                                                               Operating Performance

Fast Facts                                                            The company reported revenue of US$57,343.81
                                                                      million during the fiscal year 2010 (2010). The
                                    12F, China Life Plaza, Beijing,   company's revenue grew at a CAGR of 18.96%
Headquarters Address
                                    100033,China                      during 2006–2010, with an annual growth of 14.68%
                                                                      over 2009. In 2010, the company recorded an
Telephone                           + 86 10 85659999
                                                                      operating margin of 10.55%, as against 12.24% in
                                                                      2009.
Fax                                 + 86 10 85252210

Website                             www.e-chinalife.com               Revenue and Margins

Ticker Symbol, Stock Exchange       601628, Shanghai Stock Exchange

Number of Employees                 103,220

Fiscal Year End                     December

Revenue (in US$ million)            57,343.81

Revenue (in CNY million)            388,791.00




SWOT Analysis

Strengths                           Weaknesses

Diversified products and services   Decline in solvency ratio

Leading market position             Increase in operating expenses

Strong distribution network

Strong top-line performance

Opportunities                       Threats

Launch of E-business                Fierce competition ahead

Rising interest rate                Natural calamities

Straetegic growth intiatives        Stock market fluctuations




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China Life Insurance Company Limited - SWOT Profile                                                       Page 1
China Life Insurance Company Limited

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators ...................................................................................................................9
      2.2.1       Total Revenues and Operating Profit ................................................................................................................9
      2.2.2       Total Premiums Earned ...................................................................................................................................10
      2.2.3       Asset, Liabilities and Capex .............................................................................................................................11
    2.3       Key Competitors ...................................................................................................................................................12
3     Recent Developments ........................................................................................................................... 13
4     SWOT Analysis ...................................................................................................................................... 14
    4.1       SWOT Analysis - Overview ..................................................................................................................................14
    4.2       Strengths ..............................................................................................................................................................14
    4.3       Weaknesses .........................................................................................................................................................15
    4.4       Opportunities ........................................................................................................................................................15
    4.5       Threats .................................................................................................................................................................16
5     Company Statement .............................................................................................................................. 17
6     History .................................................................................................................................................... 19
7     Key Employees ...................................................................................................................................... 20
8     Key Employee Biographies................................................................................................................... 21
9     Locations and Subsidiaries .................................................................................................................. 22
    9.1       Head Office ..........................................................................................................................................................22
    9.2       Other Locations and Subsidiaries ........................................................................................................................22
10    Appendix ................................................................................................................................................ 23
    10.1      Methodology .........................................................................................................................................................23
    10.2      Ratio Definitions ...................................................................................................................................................23
    10.3      Disclaimer.............................................................................................................................................................27




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China Life Insurance Company Limited - SWOT Profile                                                                                                                         Page 2
China Life Insurance Company Limited

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List of Tables

Table 1: Major Products and Services....................................................................................................................................6
Table 2: Key Ratios - Annual ..................................................................................................................................................7
Table 3: Key Ratios - Interim ..................................................................................................................................................8
Table 4: Key Capital Market Indicators ..................................................................................................................................8
Table 5: History.....................................................................................................................................................................19
Table 6: Key Employees .......................................................................................................................................................20
Table 7: Key Employee Biographies ....................................................................................................................................21
Table 8: Subsidiaries ............................................................................................................................................................22
Table 9: Locations ................................................................................................................................................................22




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China Life Insurance Company Limited - SWOT Profile                                                                                                                        Page 3
China Life Insurance Company Limited

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List of Figures

Figure 1: Total Revenues and Operating Profit ......................................................................................................................9
Figure 2: Total Premiums Earned.........................................................................................................................................10
Figure 3: Financial Position ..................................................................................................................................................11




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China Life Insurance Company Limited - SWOT Profile                                                                                                                  Page 4
China Life Insurance Company Limited

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1 Business Analysis

1.1   Company Overview

China Life Insurance Company Limited (China Life) is one of the leading life insurance companies in China. The company
offers a range of insurance products, including individual life insurance, group life insurance, annuity and health insurance
products. It also offers accident and short-term health insurance products and related services to individuals and group
customers. These products and services are offered through exclusive agents, dedicated and non-dedicated agencies,
and direct sales representatives. As of December 31, 2010, the company had 129.0 million individual and group life
insurance policies, annuity contracts, and long-term health insurance policies in force. China Life is headquartered in
Beijing, China.

1.2   Business Description

China Life Insurance Company Limited (China Life) is one of the leading companies in life insurance market in China. The
company offers a range of life, annuity, and health insurance products for individual and corporate customers. The
company‟s products and services are distributed through a network of exclusive agents, direct sales representatives, and
dedicated and non-dedicated agencies.

China Life‟s business activities are classified into four reportable segments, Individual Life Insurance business; Group life
insurance business; Short-term insurance business; and Corporate and other.

The company, through its Individual Life Insurance business segment, offers a range of life insurance and annuity
products to individuals through about 706,000 agents operating in 18,953 field offices throughout China and other non-
dedicated agencies located at branch offices of banks, banking operations of post offices and other organizations. In
addition, it offers a range of long-term products, including long-term health and long-term accident insurance products,
meaning products having a term of more than one year at the date of their issuance. Furthermore, it offers various life
insurance and annuity products to individuals, which covers the whole length of a policyholder‟s life. Its individual life
insurance and annuity products consist of whole life and term life insurance, endowment insurance and annuities.
Moreover, the segment offers participating and non-participating life insurance and annuities to individuals. As of
December 31, 2010, the company had 78.12 million non-participating policies and 50.61 million participating policies. Of
these, about 53.20 million non-participat
								
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