China Lifes Earnings Dip Daily Markets
Reported operating earnings during the first half of 2011 of RMB0.46 (US$0.07) per share, witnessing a 28.1% decline from RMB0.64 (US$0.10) per share in the first half of 2010.Net income also declined substantially to RMB12.96 billion (US$2.03 billion) from RMB18.03 billion (US$2.82 billion) in the year-ago period.
China Life’s net income reduced due to increased impairment losses and traditional insurance contract liabilities. However, the company’s efforts to improve the efficiency of its sales team, boost product innovation, improve support services and actively manage macro-economic and regulatory changes helped in increasing premiums.
The company’s total revenue also rose 5.6% to RMB227.47 billion (US$35.56 billion) from RMB215.39 billion (US$33.67 billion) in the prior-year period. Net premium earned during the reported period increased 6.1% to RMB194.85 billion (US$30.46 billion) from RMB183.59 billion (US$28.7 billion) in the year-ago period.
Total insurance benefits, claims and expenses increased to RMB213.71 billion (US$33.41 billion) from RMB194.86 billion (US$30.46 billion) in the comparable period of last year. Investment income increased 22.6% year over year to RMB30.31 billion (US$4.74 billion), while other income increased 9.4% year-over-year.
