China Life's Net Profit Drops 65% as Chinese Economy Slows
China Life Insurance Co. Ltd. (NYSE: LFC), a leading life insurance company in China, announced its net profit in 2018 decreased 64.7 percent to $1.7 billion compared with 2017.
The sharp decrease came as the Chinese life insurance industry was under pressure in 2018, the company said, and it suffered a sharp decline in investment returns from weakening stock markets.
The Beijing-based company said gross premiums amounted to $80 billion, representing an increase of 4.7 percent year-over-year. Its market share, which remained in first place among life insurance companies in China, was 20.4 percent.
In 2018, faced with challenging domestic and overseas' economic and financial situations, the insurance industry as a whole underwent a general restructuring. China Life said it undertook a successful strategy of quality improvement in its sales division, which increased in size during the period.
Shares of China Life closed today in New York at $12.98, up 3 cents per share.
China Life said it had 285 million long-term individual and group life insurance policies, annuity contracts, and long-term health insurance policies in force at the end of 2018. It also provides individual and group accident and short-term health insurance policies and services.
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