What is Brief History of China Life Insurance Company?

Following its establishment, China Life Insurance, then part of PICC, experienced a period where insurance activities were largely integrated within the central bank. By 1959, PICC primarily focused on foreign marine and aviation insurance. This early phase reflects the state's initial approach to insurance, concentrating on specific needs within a centrally planned economy.

The launch of economic reforms in 1979 marked a turning point for the insurance company China. PICC began to re-enter broader insurance offerings, starting with non-life policies. In 1982, it expanded into life insurance, signaling a shift towards a more comprehensive insurance market in China.

The late 1980s and 1990s were crucial for the history of Chinese insurance. The Chinese government started licensing competing insurance companies in 1988, breaking the state-owned monopoly. In 1996, PICC was restructured into PICC Group, and later, in 1999, the group dissolved, leading to the formation of China Life Insurance as a distinct entity.

China Life Insurance achieved significant milestones, including its listing on the Hong Kong and New York Stock Exchanges in December 2003. This IPO raised US$3.5 billion, the largest public offering globally that year. The company also returned to the China A-share market in January 2007, further solidifying its presence.

China Life began diversifying its offerings, including asset management, brokerage, and banking services, to meet the growing financial needs of the Chinese population. By 2016, it became the largest shareholder of China Guangfa Bank, enhancing its integrated financial services. The company expanded its network to over 8,000 field offices and 4,800 branch offices.

While specific 2025 data is unavailable, China Life's 2024 financial performance showcased its strong market position. The company reported a total premium income of approximately CNY 619.8 billion. Its net profit attributable to equity holders was about CNY 30.2 billion, reflecting its robust financial health and strategic growth. This demonstrates China Life's continued dominance in the Chinese insurance market and its ability to generate substantial returns.

The global life insurance premiums are anticipated to grow at an average annual rate of 3% in 2025 and 2026. This growth rate is more than double that of the past decade, driven by macroeconomic trends and demographic changes, indicating a positive outlook for the Chinese insurance market.

The Chinese insurance market is projected to grow significantly. It is expected to increase from USD 779.22 billion in 2025 to USD 1,409.62 billion by 2032. This represents a compound annual growth rate (CAGR) of 8.8%, highlighting robust growth potential for China Life and other key players in the Chinese insurance market.

The 'National 10 Guidelines 3.0,' issued in September 2024, provides a key policy blueprint for the next decade. This aims to establish a high-quality development framework for the insurance industry by 2029 and reshape the sector by 2035. This includes strengthening protection functions, service capabilities, and financial modernization efforts.

China Life anticipates having sufficient capital to meet its insurance business expenditures and new general investment needs in 2025. Future strategic initiatives will likely focus on strengthening asset-liability interaction management and adapting to ongoing regulatory changes, such as tiered agent reforms.