Is China Life Insurance Company Limited LFC A Good Stock To Buy?

China Life’s unlisted parent company announced its intention to diversify its insurance business to include property insurance and develop an insurance intermediary agent business as well as add other financial services. China Life itself announced its intention to diversify into new services, such as asset management, brokerage services, and banking in the near future. In the meantime, China Life had emerged as the dominant player in what many expected to become the world’s fastest-growing and largest life insurance market. Yet the former members of PICC Group began moving toward an opening of its share capital at the beginning of the 2000s. In 2000, China Life announced its intention to diversify its own shareholding in advance of a future public offering. In the meantime, the company continued to build up its business across China, solidifying its dominant position in 29 of the country’s 30 major markets.

Starr’s company eventually evolved into U.S. leader American Insurance Group. At first the PICC monopoly continued to operate its various insurance services, integrating the assets of the former independent insurance sector. By 1952, PICC represented a national network of 1,300 branches and 3,000 agency outlets.

Yet the Chinese government, in its effort to develop its regime, determined that insurance was superfluous in a state where the government was meant to provide for all social welfare for its citizens. PICC’s role was reduced to providing insurance covering the country’s foreign policy needs, such as for the marine and aviation sectors. Following the reform, PICC was converted into a department of the government’s central bank. Following the revolution, the Mao government set up the People’s Insurance Company of China (PICC), which took over all insurance interests on the mainland. Tai Ping’s leadership fled to Taiwan in 1950, reestablishing the company’s operations there.

  • First-half new business value, or NBV, growth increased to 19.9% year on year from the 7.7% growth in the first quarter, beating our expectation for about 15.0% growth.
  • That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
  • In 2000, China Life announced its intention to diversify its own shareholding in advance of a future public offering.
  • Morningstar analysts hand-select direct competitors or comparable companies to
    provide context on the strength and durability of 02628’s
    competitive advantage.
  • PICC began offering life insurance policies again in 1982, targeting the small but growing numbers of middle-class and wealthy Chinese, as well as government officials.

China has indicated its intention to expand into other financial areas, such as asset management, brokering, and banking. With headquarters in Beijing and commanding about 20% market share, China Life Insurance is the largest life insurance company in China. The firm offers group and individual life insurance through exclusive agents, bancassurance, and other marketing platforms. While the bulk of profits stem from life insurance policies, additional operations include short-term policies such as accident and health insurance. The company is undergoing a business transformation toward the sale of long-term protection products and away from short-term and single-premium products. The success of its IPO encouraged China Life to begin eyeing expansion into new markets in 2004.

The chart shows the growth of an initial investment of $10,000 in China Life Insurance Company Limited, comparing it to the performance of the S&P 500 index or another benchmark. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. Morningstar analysts hand-select direct competitors or comparable companies to
provide context on the strength and durability of 02628’s
competitive advantage.

Monthly Dividends

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A number of local groups appeared, however, and played an important role in developing the life insurance market among the indigenous population. The Chinese government began a wider opening of the country’s insurance market in the early 1990s. By the end of the decade, the government had granted licenses to a total of 16 companies–including such returning groups as Tai Ping Insurance Company and China Insurance Company. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Despite the restructuring, PICC Group was somewhat hampered in its alexander elder growth. The arrival of AIG had introduced a new tied-agency system into the market, encouraging the development of branch networks. Yet PICC Group, as a state-owned enterprise, was initially barred from developing its own network of branch offices and tied agents.

China Life Insurance: NBV Growth Ahead of Expectation, Agent Headcount Stable

Its operations were then broken up into three subsidiaries, PICC Life, PICC Property, and PICC Reinsurance. PICC Group initially operated under whats forex trading the control of the People’s Bank of China. China Life Insurance Company Limited granted a 0.00% dividend yield in the last twelve months.

Company Histories

As a result, the company was forced to cede the leadership spot in two of the country’s most important markets, Beijing, captured by Ping An, and Shanghai, taken by China Pacific. Following largely in-line results, we retain our fair value estimate for China Life at CNY 19 per A share and HKD 20 per H share. With the H shares trading at a sharp discount to the A shares, we prefer the H share over the expensive A share.

China Life Insurance’s First-Half Net Profit Dropped 8.0% on Year — Earnings Review

Tai Ping developed strongly through the 1930s, adding nearly 20 branches in major cities in China as well as elsewhere in southeast Asia. The company also opened some 400 secondary offices across the Chinese mainland, before adding representative offices in Europe and in the Americas. High-growth stocks tend to represent the technology, ulcer index indicator healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. Tai Ping in the meantime had been joined by a growing number of other Chinese-owned insurance companies.

Hedge fund activity in China Life Insurance Company Limited (NYSE:LFC)

The newly minted shares were issued to shareholders after the market closes on Tuesday, May 26th 2015. An investor that had 100 shares of stock prior to the split would have 300 shares after the split. The information contained herein does not constitute investment advice and made available for educational purposes only. Prices and returns on equities are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling.

How has 02628 performed historically compared to the market?

BEIJING–China Life Insurance Co. (2628.HK) said its third-quarter net profit rose 22% from a year earlier, due to higher premium income and strong growth in investment income. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. 12 employees have rated China Life Insurance Chief Executive Officer Yang Mingsheng on Yang Mingsheng has an approval rating of 57% among the company’s employees.

Among these were China Insurance Company, founded in 1931 in Shanghai, which opened a life insurance subsidiary, China Life Insurance Company in 1933. Later insurance market entries included Ming An Insurance Company, established in Hong Kong in 1949. By then, China boasted more than 240 insurance companies–some 180 of which were Chinese owned.

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