TAIPEI: China Life Insurance Co reported here the other day a record-high net income of NT$5.71 billion (US$182.42 million) for the first half of the year due to increased capital gains and interest income amid favorable global bond and equities markets.
The figure represented annual growth of 103 percent from NT$2.82 billion during the same period last year, Taipei-based China Life said in a company statement.
In the first six months, the company accumulated NT$70.01 billion in insurance premiums, of which NT$35.96 billion were first-year premiums from new policies.
The company said its embedded value expanded last quarter as the proportion of new policy subscriptions increased to 42 percent from 19 percent in the first quarter. Embedded value is a gauge of an insurer’s profitability and financial standing, which changes in line with adjustments to net worth, current value of life policies and capital costs.
China Life said that revenue generated from insurance products tailored for older generations grew by 44 percent year-on-year in the first half, due to Taiwan’s rapidly aging population.
The company expects the long-term care and retiree market to continue growing, becoming the company’s growth engine, the statement said.
The company also attributed its stellar performance in the first half to contribution from its 19.99 percent-owned Chinese subsidiary, CCB Life Insurance Co Ltd.
CCB Life Insurance recorded a net income of 290 million yuan (US$46.7 million) in the first half, exceeding the 170 million yuan it earned for the full year last year by 203 percent, China Life said.
CCB Life Insurance, a joint venture with China Construction Bank, operates 16 provincial-level branches in China. In the first half, the company reported 25.42 billion yuan in total premium revenue, up 113 percent from a year earlier.
