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    Is China Life’s New Subsidiary Agreements Quietly Redefining Its Risk Strategy (SEHK:2628)?

    Simply Wall St·12/08/2025 10:17:03
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    • China Life Insurance Company Limited recently held its Second Extraordinary General Meeting, where shareholders considered resolutions on investment and management agreements with several subsidiaries that shape how capital and operations are coordinated across the group.
    • This focus on group-wide investment and management frameworks highlights how China Life Insurance may be refining internal collaboration to support its evolving product mix and risk profile.
    • We’ll now examine how this renewed focus on investment and management agreements with subsidiaries could influence China Life Insurance’s broader investment narrative.

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    China Life Insurance Investment Narrative Recap

    To own China Life Insurance, you need to be comfortable with a large, complex life insurer that leans heavily on investment income and disciplined capital allocation. The upcoming Extraordinary General Meeting looks more like housekeeping around group capital and operations than a change to the key near term catalyst, which is how well the company can keep translating recent investment income strength into sustainable earnings while managing the risk that future market volatility and liability costs could pressure returns.

    Among recent announcements, the most relevant to this meeting is China Life’s guidance for a roughly 50% to 70% year on year increase in net profit for the first nine months of 2025, supported by higher investment returns and asset liability management work. That kind of earnings power is exactly what the new investment and management agreements are designed to sit alongside, but it also sharpens the focus on how exposed results remain to swings in investment income and the cost of supporting long duration insurance promises.

    Yet behind the stronger profits, investors should be aware of how sensitive future earnings could be to...

    Read the full narrative on China Life Insurance (it's free!)

    China Life Insurance's narrative projects CN¥746.6 billion revenue and CN¥67.9 billion earnings by 2028. This requires 33.5% yearly revenue growth and an earnings decrease of CN¥41.7 billion from CN¥109.6 billion today.

    Uncover how China Life Insurance's forecasts yield a HK$28.58 fair value, in line with its current price.

    Exploring Other Perspectives

    SEHK:2628 Community Fair Values as at Dec 2025
    SEHK:2628 Community Fair Values as at Dec 2025

    The Simply Wall St Community’s 2 fair value estimates for China Life range from HK$28.58 to HK$96.78, showing how far apart individual views can be. When you set that against the current reliance on elevated investment income, it underlines why many readers may want to compare several different outlooks on how sustainable today’s profitability really is.

    Explore 2 other fair value estimates on China Life Insurance - why the stock might be worth over 3x more than the current price!

    Build Your Own China Life Insurance Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.