Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
NEW CHINA LIFE INSURANCE COMPANY LTD.
(A joint stock company incorporated in the People's Republic of China with limited liability)
(Stock Code: 01336)
THIRD QUARTER REPORT 2021
This announcement is made by New China Life Insurance Company Ltd. (the "Company") pursuant to the provisions regarding disclosure of inside information under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The financial data in the Third Quarter Report 2021 of the Company have been prepared in accordance with the PRC Accounting Standards for Business Enterprises and are unaudited.
IMPORTANT INFORMATION
- The board of directors (the "Board"), the board of supervisors and directors, supervisors and members of senior management of the Company guarantee the correctness, accuracy and completeness of the contents of this report, and that there is no false representation, misleading statement or material omission in this report, and are legally liable for this report jointly and severally.
- Mr. LI Quan, the chief executive officer and president of the Company, Mr. YANG Zheng, the chief financial officer (financial principal) of the Company, Mr. GONG Xingfeng, the chief actuary of the Company and Mr. ZHANG Tao, the officer in charge of the accounting department of the Company guarantee the correctness, accuracy and completeness of financial statements of this report.
- The financial statements for the third quarter of 2021 of the Company have been prepared in accordance with the PRC Accounting Standards for Business Enterprises and are unaudited.
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§1 KEY FINANCIAL DATA
1.1 Key accounting data and financial indicators
Unit: RMB in millions | ||||||||||
Increase/ | Increase/ | |||||||||
For the | decrease | decrease | ||||||||
three months | over the | For the nine | over the | |||||||
ended 30 | corresponding | months ended | corresponding | |||||||
September | period of | 30 September | period of | |||||||
Items | 2021 | last year | 2021 | last year | ||||||
Operating revenue | 51,913 | 1.6% | 183,988 | 8.4% | ||||||
Net profit attributable | ||||||||||
to shareholders of the | ||||||||||
Company | 1,408 | -51.2% | 11,954 | 7.6% | ||||||
Net profit attributable | ||||||||||
to shareholders of the | ||||||||||
Company after deducting | ||||||||||
non-recurring items | 1,441 | -50.2% | 11,978 | 7.1% | ||||||
Net cash flows from | ||||||||||
operating activities | N/A | N/A | 57,798 | 3.9% | ||||||
Basic weighted | ||||||||||
average earnings per | ||||||||||
share attributable to | ||||||||||
shareholders of the | ||||||||||
Company (RMB) | 0.45 | -51.6% | 3.83 | 7.6% | ||||||
Diluted weighted | ||||||||||
average earnings per | ||||||||||
share attributable to | ||||||||||
shareholders of the | ||||||||||
Company (RMB) | 0.45 | -51.6% | 3.83 | 7.6% | ||||||
Weighted average return | ||||||||||
on equity attributable | ||||||||||
to shareholders of the | ||||||||||
Company | 1.33% | -1.79pt(1) | 11.50% | -0.86pt | ||||||
Note:
1. Pt represents percentage point(s) in this report.
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Increase/ | ||||||||
decrease as | ||||||||
As at 30 | As at 31 | compared to | ||||||
September | December | the end of | ||||||
2021 | 2020 | last year | ||||||
Total assets | 1,061,702 | 1,004,376 | 5.7% | |||||
Equity attributable to shareholders of | ||||||||
the Company | 104,758 | 101,667 | 3.0% | |||||
1.2 Non-recurring items and amount | ||||||||
Unit: RMB in millions | ||||||||
For the three | For the nine | |||||||
months ended | months ended | |||||||
30 September | 30 September | |||||||
Non-recurring items | 2021 | 2021 | ||||||
Gains/(Losses) on disposal of non-current assets | -(1) | (3) | ||||||
Custody fee from entrusted operation | 10 | 37 | ||||||
Gains/(Losses) on other non-recurring items | (53) | (65) | ||||||
Less: Effect on the amount of income tax expenses | 10 | 7 | ||||||
Attribute to minority shareholders (after tax) | - | - | ||||||
Total | (33) | (24) | ||||||
Notes:
- "-"means less than RMB500,000.
- Investment business (the utilization of insurance funds) is one of the main businesses of an insurance company. The change of fair value gains or losses arising from holding or disposal of financial assets and financial liabilities and investment income are the recurring items of the Company.
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1.3 Other key indicators | |||||
Unit: RMB in millions | |||||
As at 30 | As at 31 | ||||
September | December | ||||
2021/For the | 2020/For the | ||||
nine months | nine months | ||||
ended 30 | ended 30 | ||||
September | September | ||||
2021 | 2020 | Change | |||
Investment assets (1) | 1,018,414 | 965,653 | 5.5% | ||
Premium income | 136,562 | 134,355 | 1.6% | ||
Premiums earned | 134,882 | 131,421 | 2.6% | ||
Growth rate of earned premiums | 2.6% | 24.9% | -22.3pt | ||
Net claims expense | 33,811 | 42,468 | -20.4% | ||
In: Claims and death, invalid and | |||||
medical benefits | 9,723 | 7,569 | 28.5% | ||
Maturity benefits and annuity paid | 25,412 | 35,850 | -29.1% | ||
Less: Claims recoverable from | |||||
reinsurers | (1,324) | (951) | 39.2% | ||
Surrender rate (2) | 1.5% | 1.1% | 0.4pt | ||
Notes:
- Investment assets of unit-linked contracts account are included in investment assets.
- Surrender rate = surrenders for the reporting period/(balance of life insurance and long-term health insurance contract liabilities at the beginning of the period + premium income of long- term insurance contracts).
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1.4 Solvency
New China Life Insurance Company Ltd. calculated and disclosed core capital, actual capital, minimum capital, core solvency margin ratio and comprehensive solvency margin ratio according to the Solvency Regulatory Rules (No. 1-17) for Insurance Companies. As required by the China Banking and Insurance Regulatory Commission, solvency margin ratios of a domestic insurance company in the PRC must meet the prescribed thresholds.
Unit: RMB in millions | |||
As at 30 | As at 30 | ||
September | June | ||
2021 | 2021 | ||
Core capital | 281,242 | 285,025 | |
Actual capital | 291,242 | 295,025 | |
Minimum capital | 111,151 | 109,401 | |
Core solvency margin ratio (1) | 253.03% | 260.53% | |
Comprehensive solvency margin ratio (1) | 262.02% | 269.67% | |
Note:
1. Core solvency margin ratio = core capital/minimum capital; comprehensive solvency margin ratio = actual capital/minimum capital.
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New China Life Insurance Co. Ltd. published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 11:32:05 UTC.