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China Life's (LFC) 2017 Results Improve on Higher Revenues

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China Life Insurance Co. Ltd’s  LFC) net profit attributable to equity holders was $5.1 billion (RMB 32.2 billion) at the end of 2017, reflecting 68.6% year-over-year growth. The upside was primarily driven by higher revenues.

Operational Update

For 2017, the company generated total revenues of $103 billion (RMB 643.4 billion), an increase of 19% year over year.

The company’s gross written premium was $82 billion (RMB 512 billion), up 19% year over year.

The company's gross investment income was $20.6 billion (RMB 129 billion), a 19% rise year over year.

China Life Insurance Company Limited Price, Consensus and EPS Surprise

China Life Insurance Company Limited Price, Consensus and EPS Surprise | China Life Insurance Company Limited Quote

 

Financial Update

As of Dec 31, 2017, total assets came in at $463.5 billion (RMB 2,897 billion), up 7.4% from year-end 2016.

As of Dec 31, 2017, total liabilities came in at $411.5 billion (RMB 2,572 billion), up 7.7% from year-end 2016.

As of Dec 31, 2017, total shareholders’ equity came in at $51.4 billion (RMB 321 billion), up 5.66% from year-end 2016.

Dividend Update

The board of directors has recommended a final dividend payment of 6.4 cents (RMB 0.40) per share (inclusive of tax). This proposal is subject to the approval at the 2017 Annual General Meeting to be held on Jun 6, 2018.           

Solvency Ratio

The company’s core and comprehensive solvency ratios reached 277.61% and 277.65%, respectively.

Zacks Rank and Performance of Other Multiline Insurers

China Life carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players from the insurance industry having reported fourth-quarter earnings, the bottom line of Brown & Brown, Inc. BRO, MGIC Investment Corporation MTG  and The Progressive Corporation PGR beat the respective Zacks Consensus Estimate.

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Brown & Brown, Inc. (BRO) : Free Stock Analysis Report
 
China Life Insurance Company Limited (LFC) : Free Stock Analysis Report
 
MGIC Investment Corporation (MTG) : Free Stock Analysis Report
 
The Progressive Corporation (PGR) : Free Stock Analysis Report
 
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