China Life 2628; ADR (LFC)

[winston]

Not vested

DJ MARKET TALK: China Life's Premium Growth Slowdown Expected

0852 [Dow Jones] The slowdown in China Life's (2628.HK) premium growth shouldn't be a surprise, while any pressure following its May data should be limited after the stock's 6.4% decline month-to-Thursday. Its January-May premium income totaled CNY166.5 billion, about 7.5% higher on year, slower compared to its 9.4% on-year rise in January-April and 1Q's 11.5% on-year gain.

Goldman Sachs says in a recent note that the growth outlook for China's life insurance companies is still facing many near-term challenges--though labor costs are rising, income remains low for agents, making recruitment difficult; meanwhile, business margins are also squeezed as commission rates rise to entice new agents.

The stock may stage a modest rebound, if it tracks its ADRs, which end up 0.5% at an equivalent of HK$25.78 on Thursday, compared to its local close of HK$25.65 Thursday (down 2.7%).

Source: Dow Jones Newswire

[winston]

Not vested

Profit tumbles 28pc at biggest insurer
Wednesday, August 24, 2011

China Life Insurance (2682), the nation's biggest insurer, said first-half net profit fell 28 percent from a year ago as declines in the local stock market hurt investment returns.

Net income fell to 12.96 billion yuan (HK$15.68 billion) or 0.46 yuan a share, from 18 billion yuan, or 0.64 yuan a share, a year earlier, the Beijing- based insurer said yesterday.

The benchmark Shanghai Composite Index slid 1.6 percent in the first half, reducing the value of China Life's equity holdings, as the government tightened monetary policy.

Growth in net premiums earned slowed to 6.1 percent, from 13 percent a year earlier, as efforts to lower the share of less-profitable, shorter- duration contracts hampered policy sales.

Net realized gains on financial assets slumped more than 90 percent to 601 million yuan. Net investment income, mainly dividends and bond yields, rose 23 percent to 30.3 billion yuan.

The insurer yesterday approved plans to sell as much as 30 billion yuan in subordinated bonds in the mainland.

Source: BLOOMBERG

[winston]

Not vested

DJ MARKET TALK: China Life Off 8.5% Pre-Open; Slew Of Downgrades

0911 [Dow Jones] A slew of earnings, ratings and target downgrades are awaiting China Life (2628.HK), after it posted much weaker-than-expected 1H results.

JPMorgan downgraded China Life to Underweight from Neutral, and slashed its target price by 29% to HK$22.00; on the company's plan to raise CNY30 billion, JPM says the 211% solvency margin ratio post-planned sub-debt issuance "could easily be eroded by further decline in A-share markets."

Separately, Daiwa cut China Life to Outperform from Buy, and lowered its target price to HK$34.97 vs HK$40.73; it notes China's Life's 1H VNB (value of new business) growth was only 5.5% on-year, far below market expectations.

The stock is indicated to fall 8.5% to HK$21.00 at pre-open.


Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: China Life "Least Preferred" Among Peers - Citi

1148 [Dow Jones] STOCK CALL: Citigroup cuts China Life (2628.HK) target price to HK$25.80 from HK$29.10, reflecting lower NBV (new business value) and EV (embedded value) estimates; it keeps the stock at Hold.

The house only looks for 9% NBV growth and 5% EV growth in 2011, and says China Life remains its "least preferred play;" it continues to favor PICC (2328.HK) and China Pacific Insurance (2601.HK) for better fundamentals; and to play laggard, it prefers Ping An (2318.HK) and China Taiping Insurance (0966.HK).

China Life is down 11.3% at HK$20.35.

Source: Dow Jones Newswire

[winston]

Not vested. And I thought it was short-covering ..

Broker's computer 'glitch' leads to HK$1.5b splurge

Hong Kong broker Sun Hung Kai Financial made a costly mistake yesterday, buying millions of China Life Insurance shares as a result of what it said was an error in its computer system.

Source: SCMP

[winston]

Not vested. A lot of Noise below. The simple question to ask is, whether it's a well run life company or not.

DJ MARKET TALK: GS Upgrades China Life To Buy Vs Neutral

1358 [Dow Jones] STOCK CALL: Goldman Sachs upgrades China Life (2628.HK) to Buy versus Neutral, as its H-shares are trading 14% below its ex-growth valuation. It says the stock offers attractive value with limited downside.

"More importantly, we see potential valuation upside if China Life reveals sensible reform initiatives in 4Q11, to improve its competitiveness."

It adds, the potential CPI decline in China may lead to some monetary easing in 2012, benefiting premium sale and A-share performance, which is likely to boost China Life's investment value.

The stock is up 2.5% at HK$18.90.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: China Life +1.2%; But Top Line Growth Subdued
- CS

0946 [Dow Jones] China Life (2628.HK) is up 1.2% at HK$19.34 but lags the HSI's 1.5% rebound, after it reports premium income for the January to September period totaled CNY264.2 billion, up 2.8% on year.

Credit Suisse highlights that top line growth remains subdued, which is mainly driven by a volume drop in the bancassurance channel, coupled with a slowdown in agency channel due to the clean-up effort China Life has been making since last year.

The house also highlights that the China life insurance sector has experienced a slowdown in business this year, and expects the weak trend to continue into the end of the year.

Still, it keeps China Life at Outperform with a HK$30.00 target due to the stock's "medium-term value."

Source: Dow Jones Newswire

[winston]

Stock slump slashes China Life net
Friday, October 28, 2011

China Life Insurance (2628), the world's largest life insurer by market value, posted a bigger-than- expected 45.7 percent drop in third-quarter profit, as a slumping stock market hit investment returns, sending a chilling message to investors ahead of the upcoming initial public offering of smaller rival New China Life.

China Life's net income during the July- September period fell to 3.75 billion yuan (HK$4.58 billion) from 6.9 billion yuan a year earlier, missing market expectations of 4.52 billion yuan.

Net profit was "impacted by lower investment returns and higher asset depreciation due to market volatility," China Life said in a statement to the Shanghai Stock Exchange.

China's stock market tumbled 15 percent during the third quarter and is still struggling.

A further 10 percent drop in the stock market from end-September levels would hurt China's Life's annual earnings by 6.1 percent, investment bank China International Capital Corp (CICC) forecast.

Market volatility has also hurt sales of certain insurance products, including investment-linked policies, as clients are increasingly drawn to higher- yielding investment products sold at commercial banks.

In a sign of slowing business growth, China Life's premium income grew only 2.8 percent during the first nine months of the year, compared with a 13 percent pace in 2010.

Many analysts expect the trend of market sluggishness and slower premium growth to extend into the fourth quarter, damping demand for insurance stocks even as their valuations have fallen to levels last seen during the worst of the 2008 global financial crisis.

China Life shares gained 4.8 percent to HK$19.66 before the result announcement.

Source: REUTERS

[winston]

not vested

DJ MARKET TALK: 60%-70% Chance China Life Will Underperform -MS

1514 [Dow Jones] China Life's (2628.HK) 4-session 16.8% rally may be a good chance to sell or even set up as the short end of a pair trade, according to "tactical idea" from Morgan Stanley.

It believes China Life share price will fall relative to the country index over the next 30 days, and estimates that "there is about a 60% to 70% or 'likely' probability for the scenario."

MS says this is because the stock has traded up recently, "making short term valuation much less compelling."

It says China Life is trading above MS' target price target of HKD$22, despite weak fundamentals. China Life is up 2.2% at HK$23.20.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: China Life Down 5.1%; Subdued Topline Growth - CS

1141 [Dow Jones] STOCK CALL: China Life (2628.HK) is down 5.1% at HK$21.25, vs the HSI's 1.9% fall, likely due to some profit-taking pressure, after the stock's 8.0% month-to-Tuesday rise, as investors are disllusioned by its weak October premium data.

Credit Suisse notes that China Life's top-line growth remains subdued, which is mainly driven by a volume drop in the bancassurance channel, due to the enforcement of the CBRC ban on agents in branches and macro economic factors, coupled with a slowdown in agency channels due to the clean-up effort China Life has been making since last year.

"The key challenge for China Life in our view is improving the duration mix of its regular premium business, which is likely to take time." It keeps the stock at Outperform with a target of HK$27.50.

Source: Dow Jones Newswire