Stock Code : 2628
CONTENTS
01 PRELUDE
2
Core Competitiveness
2
Honors and Awards
3
Business Highlights
5
Financial Summary
6
02
CHAIRMAN’S
STATEMENT
8
03
MANAGEMENT
DISCUSSION AND
ANALYSIS
11
Review of Business
Operations
11
Business Analysis
13
Analysis of Specific Items
21
Digitalised and Intelligent
Operations and Services
25
Future Prospect
26
04 EMBEDDED VALUE
27
The Company was established in Beijing, China on
30 June 2003 according to the Company Law and
the Insurance Law of the People’s Republic of China.
The Company was successfully listed overseas in
December 2003 and returned to the domestic market
as an A-share listed company in January 2007. The
Company’s registered capital is RMB28,264,705,000.
The Company is a leading life insurance company
in China and possesses an extensive distribution
network comprising exclusive agents, direct sales
representatives, and dedicated and non-dedicated
agencies. The Company is one of the largest
institutional investors in China, and becomes one of
the largest insurance asset management companies in
China through its controlling shareholding in China Life
Asset Management Company Limited. The Company
also has controlling shareholding in China Life Pension
Company Limited.
The Company is a leading provider of life insurance,
annuity insurance, health and accident insurance in
China. As at the end of the Reporting Period, the
Company had approximately 326 million long-term
insurance policies in force. We also had a great
quantity of short-term insurance policies, including
accident insurance, health insurance and term life
insurance, with a term of one year or less.
05 SIGNIFICANT EVENTS
33
Material Litigations or
Arbitrations
33
Major Connected Transactions
33
Material Contracts and Their
Performance
37
Undertakings
38
Alleged Violation of Laws
and Regulations, Penalties
Imposed and Rectification
39
Restriction on Major Assets
39
Other Matters
39
06
CORPORATE
GOVERNANCE
40
Report of the Board of
Directors
40
Report of the Board of
Supervisors
48
Changes in Ordinary
Shares and Shareholders
Information
51
Directors, Supervisors,
Senior Management and
Employees
54
Report of Corporate
Governance
69
07 OTHER INFORMATION
101
Basic Information of the
Company
101
Definitions and Material
Risk Alert
103
08 FINANCIAL REPORT
104
CORE COMPETITIVENESS
Annual Report 2024 | Prelude
02
Long history
and
excellent
brand
The predecessor of the Company, one of the first batch of enterprises to underwrite insurance business in
China, was approved by the Chinese Government for establishment in October 1949. After the restructuring
and reorganisation, the Company was successively listed overseas and domestically. The Company has
been playing the role of an explorer and pioneer in China’s life insurance industry, and through long-term
and continuous brand building, China Life has become one of the famous and strong brands in the world
with growing brand value and influence.
Prominent
principal
business
and sound
financial
strength
The Company sticks to the original role of insurance and further explores the huge potentials of the life
insurance market. The Company has a sound institutional and services network, with its business outlets
and services counters covering both urban and rural areas across China, which forms a powerful distribution
and services network and through which the Company maintains its leading position in China’s life insurance
market and becomes the life insurance service provider within the reach of customers. Through the long-term
development and accumulation, China Life has solid financial strength comparable to world-class enterprises
in the world, with its total assets ranking No. 1 in the life insurance industry in China. As one of the largest
institutional investors in China, the Company becomes one of the largest insurance asset management
companies in China through its controlling shareholding in China Life Asset Management Company Limited.
Professional
and
stable core
team
Convenient
services
and superb
customer
experience
During the long course of its development, the Company has accumulated a wealth of experience in
operation and management and has a stable and professional management team that is well versed in
the art of management in China’s life insurance market. The Company’s core management team and key
personnel comprise those who have in-depth knowledge and understanding of the life insurance market
in China, including the Company’s senior management, experienced underwriting personnel, insurance
actuaries, investment managers and risk management teams. During the Reporting Period, there was no
change of the above personnel which might have a material impact on the Company. The Company has
been pushing forward the reform of the market-oriented remuneration system, continuously stimulating
its internal vitality, and building a talent team that matches its high-quality development.
The Company adheres to the service concept of “honest and trustworthy, professional and efficient,
customer-oriented, and first-class experience”, develops the operation model of “multiple accesses at
the front-end, intelligent centralisation at the headquarters, and comprehensive sharing for operations”,
and has established a customer-oriented digital operation and service system. The Company keeps
considering and catering to demands of its customers, devoting itself to improve customer experience,
and providing customers with “convenient, quality and caring” services. The Company also adheres to
the concept of “people-oriented, caring for life, creating value and serving the community”, with the aim
to consistently contribute to the protection of people’s good life.
The Company implements the “Technology-driven China Life” development strategy in great depth by
adhering to the leading concept of technological innovation. The Company has established digital platforms
closely integrating online and offline resources with teams and outlets as the support and industry-leading
hybrid clouds as the base, creating an open, win-win and diversified digital insurance ecosystem, facilitating
the Company’s digital transformation in all aspects, and accelerating the replacement of old growth drivers
with new ones, through which the Company’s business operation is empowered in all aspects, and the
Company is able to provide smart, convenient, efficient and well-targeted comprehensive financial and
insurance services to the public.
Leading
technologies
and
innovation
empowerment
“2024 Forbes Global 2000”, ranking 116th
Forbes
“Excellent Listed Company”
Hong Kong Ta Kung Wen Wei Media Group, Hong Kong Chinese Enterprises Association, the Chinese Financial Association of
Hong Kong, the Chinese Securities Association of Hong Kong and The Hong Kong Chartered Governance Institute
“14th China Securities ‘Golden Bauhinia Awards’”
The “World’s Top 100 Most Valuable Insurance Brands in 2024”, ranking 3rd
Brand Finance
“Insurance Company of the Year for Brand Excellence”
The Economic Observer
“2024 Excellent Financial Enterprises”
“Annual Insurance Protection Brand Award”
“Annual Innovative Insurance Product Award”
Shanghai Securities News
“2024 ‘Shanghai Securities News – Assessment and Selection of the Golden Wealth Management’”
“Ark Prize for Insurance Company with High-quality Development in 2024”
“Ark Prize for Social Responsibility in the Insurance Industry in 2024”
Securities Times
“Ark Prizes for China’s Insurance Industry in 2024”
“Insurance Company with High-quality Development in 2024”
“Insurance Company with Quality Service in 2024”
“Social Responsibility Pioneer Insurance Company in 2024”
Hexun.com
“22nd Financial Annual Champion Awards”
“Excellent Life Insurance Company of the Year”
“Inclusive Finance Service Institution of the Year”
21st Century Business Herald
“Excellent Case of Financial Competitiveness in the 21st Century (2024)”
HONORS AND AWARDS
Annual Report 2024 | Prelude
03
“Excellent Life Insurance Company of the Year”
“Top 10 Life Insurance Companies”
PBC School of Finance of Tsinghua University and the Editorial Department of Tsinghua Financial Review
“2024 Competitiveness Ranking of the PRC Insurance Institutions”
“Listed Company with Excellent Competitiveness in 2024”
China Business Journal
“Cases of Listed Companies with Excellent Competitiveness in 2024”
“TOP 5 on the Life Insurance List”
“TOP 1 on the Life Insurance List within the Wealth Management Rankings”
“TOP 1 on the Life Insurance List within the Green Finance Rankings”
Southern Weekend
“2024 New Financial Competitiveness List”
“Investment Golden Bull Award for the Insurance Industry”
China Securities Journal
“4th Investment Golden Bull Awards for the Insurance Industry”
“Outstanding ESG Financial Enterprise of the Year”
The Paper
“2024 TOP Financial Rankings”
“Inclusive Insurance Achievement Award”
Chinese Academy of Financial Inclusion of Renmin University of China
“2024 Inclusive Finance Achievement Series Awards”
“Hong Kong Corporate Governance Excellence Award 2024”
The Chamber of Hong Kong Listed Companies and the Centre for Corporate Governance and
Financial Policy of Hong Kong Baptist University
“Hong Kong Corporate Governance & ESG Excellence Award 2024”
Annual Report 2024 | Prelude
04
BUSINESS HIGHLIGHTS
Annual Report 2024 | Prelude
05
Total assets
6,769,546
1,401,146
33,709
million
Investment
assets
6,611,071
million
Net profit attributable
to equity holders
of the Company
106,935
Comprehensive
solvency ratio
207.76%
million
671,457
million
Gross written
premiums
308,251
million
million
million
Gross investment
income
509,675
million
Equity holders’
equity
Embedded value
Value of one
year’s sales
FINANCIAL SUMMARY
Annual Report 2024 | Prelude
06
MAJOR FINANCIAL DATA AND INDICATORS FOR THE PAST FIVE YEARS1
RMB million
Under International Financial Reporting Standards (“IFRSs”)
Major financial data
2024
2023
Change
2022
2021
2020
For the year ended
Total revenues
528,627
344,746
53.3%
370,861
824,933
805,049
Profit before income tax
115,213
44,576
158.5%
70,060
50,340
54,440
Net profit attributable to equity
holders of the Company
106,935
46,181
131.6%
66,680
50,766
50,221
Net profit attributable to ordinary
share holders of the Company
106,935
46,181
131.6%
66,680
50,766
50,020
Net cash inflow/(outflow) from
operating activities
378,795
384,366
-1.4%
345,284
286,446
303,990
As at 31 December
Total assets
6,769,546
5,802,086
16.7%
5,010,068
4,892,480
4,253,544
Including: Investment assets2
6,611,071
5,659,250
16.8%
4,811,893
4,716,420
4,095,541
Total liabilities
6,248,298
5,315,052
17.6%
4,635,095
4,405,346
3,795,975
Including: Insurance contract liabilities
5,825,026
4,859,175
19.9%
4,266,947
N/A
N/A
Equity holders’ equity
509,675
477,093
6.8%
366,021
479,061
450,688
Per share (RMB)
Earnings per share (basic and diluted)3
3.78
1.63
131.6%
2.36
1.80
1.77
Equity holders’ equity per share3
18.03
16.88
6.8%
12.95
16.95
15.95
Ordinary share holders’ equity per share3
18.03
16.88
6.8%
12.95
16.95
15.95
Net cash inflow/(outflow) from
operating activities per share3
13.40
13.60
-1.4%
12.22
10.13
10.76
Major financial ratios (%)
Weighted average ROE
21.59
9.65
An increase
of 11.94
percentage
points
17.26
10.92
11.81
Gearing ratio4
92.30
91.61
An increase
of 0.69
percentage
point
92.52
90.04
89.24
Gross investment yield5
5.50
2.43
An increase
of 3.07
percentage
points
3.90
4.98
5.30
Notes:
1.
Since 1 January 2023, the Company has adopted IFRS 9 – Financial Instruments and IFRS 17 – Insurance Contracts. The Company has restated and
presented the comparative information for the year 2022 associated with insurance contracts in accordance with IFRS 17 – Insurance Contracts, and there
is no need for the Company to restate and present the comparative information for the year 2022 associated with financial instruments in accordance
with IFRS 9 – Financial Instruments. There is no need for the Company to restate and present any comparative information for the years 2020 and 2021
in accordance with IFRS 9 – Financial Instruments and IFRS 17 – Insurance Contracts.
2.
As at 31 December 2023 and 31 December 2024, Investment assets = Cash and cash equivalents + Financial assets at fair value through profit or loss
+ Investment in debt instruments at fair value through other comprehensive income + Investment in equity instruments at fair value through other
comprehensive income + Investment in debt instruments at amortised cost + Term deposits + Financial assets purchased under agreements to resell +
Statutory deposits-restricted + Investment properties + Investments in associates and joint ventures. As at 31 December 2022, Investment assets = Cash
and cash equivalents + Securities at fair value through profit or loss + Available-for-sale securities + Held-to-maturity securities + Term deposits + Financial
assets purchased under agreements to resell + Loans (excluding policy loans) + Statutory deposits-restricted + Investment properties + Investments in
associates and joint ventures
3.
In calculating the percentage changes of the “Earnings per share (basic and diluted)”, “Equity holders’ equity per share”, “Ordinary share holders’ equity
per share” and “Net cash inflow/(outflow) from operating activities per share”, the tail differences of the basic figures have been taken into account.
4.
Gearing ratio = Total liabilities/Total assets
5.
In the calculation of the investment yield of the years 2023 and 2024, the average investment assets as the denominator exclude the fair value changes
of investment in debt instruments at fair value through other comprehensive income, so as to reflect the strategic intention of the Company for the
management of assets and liabilities. In the calculation of the investment yield of the year 2022, the data of investment businesses related to IFRS 17
– Insurance Contracts has been restated, while the data of investment businesses related to IFRS 9 – Financial Instruments has not been restated. The
formula used for calculating the investment yield of the year 2022 is the same as that of previous years.
Annual Report 2024 | Prelude
07
INFORMATION ON THE DIFFERENCE BETWEEN THE FINANCIAL STATEMENTS
PREPARED UNDER ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES
AND INTERNATIONAL FINANCIAL REPORTING STANDARDS
Under Accounting Standards for Business Enterprises (“ASBE“), the Company has implemented ASBE No. 25 – Insurance
Contracts (Caikuai [2020] No. 20), ASBE No. 22 – Recognition and Measurement of Financial Instruments (Caikuai [2017]
No. 7) and other standards on financial instruments since 1 January 2024. The Company has restated and presented the
comparative information associated with insurance contracts in accordance with ASBE No. 25 – Insurance Contracts (Caikuai
[2020] No. 20), and there is no need for the Company to restate and present the comparative information associated with
financial instruments in accordance with ASBE No. 22 – Recognition and Measurement of Financial Instruments (Caikuai
[2017] No. 7) and other standards on financial instruments.
The net profit attributable to equity holders of the Company of the year 2024 and the equity holders’ equity as at 31 December
2024 prepared under ASBE are the same as those under IFRSs. For the comparative data, the financial statements under ASBE
were prepared in accordance with ASBE No. 25 – Insurance Contracts (Caikuai [2020] No. 20), ASBE No. 22 – Recognition
and Measurement of Financial Instruments (Caikuai [2006] No. 3) and other standards on financial instruments, the net profit
attributable to equity holders of the Company of the year 2023 was RMB51,184 million, and the equity holders’ equity as at
31 December 2023 was RMB327,784 million; the financial statements under IFRSs were prepared in accordance with IFRS
17 – Insurance Contracts and IFRS 9 – Financial Instruments, the net profit attributable to equity holders of the Company of
the year 2023 was RMB46,181 million, and the equity holders’ equity as at 31 December 2023 was RMB477,093 million.
MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS WITH
CHANGE OF OVER 30% AND THE REASONS FOR CHANGE
RMB million
Items of the
consolidated statement of
financial position
As at
31 December
2024
As at
31 December
2023
Change
Main reasons for change
Cash and cash equivalents
85,505
149,305
-42.7%
The needs for liquidity management
Financial assets sold under
agreements to repurchase
151,564
216,851
-30.1%
The needs for liquidity management
Items of the
consolidated statement of
comprehensive income
2024
2023
Change
Main reasons for change
Investment income
176,461
(9,375)
N/A
Market value fluctuations of financial assets and
proactive investment operations
Investment income from
associates and joint ventures
12,077
8,079
49.5%
An increase in the net profits of associates and joint
ventures
Insurance finance income/
(expenses) from insurance
contracts issued
209,952
127,923
64.1%
An increase in returns on investment assets related
to business measured by the variable fee approach
and an increase in the insurance business scale of
the Company
Income tax
6,273
(2,971)
N/A
Due to the combined impact of income tax payable
and deferred income tax
Net profit attributable to equity
holders of the Company
106,935
46,181
131.6%
By adhering to the principle of asset-liability matching
and the philosophy of long-term investment, value
investment and prudent investment, the Company
seized market opportunities for cross-cycle fund
allocation, and continuously optimised the structure
of equity investments. The stock market rebounded
rapidly after experiencing low-level fluctuations in
2024, leading to a substantial year-on-year increase in
the Company’s gross investment income.
Annual Report 2024 | Chairman’s Statement
08
CHAIRMAN’S
STATEMENT
2024 was the critical year for implementing the “14th Five-
Year Plan”. Guided by Xi Jinping Thought on Socialism
with Chinese Characteristics for a New Era, China Life
deeply implemented the guiding principles of the 20th
CPC National Congress, and the second and third plenary
sessions of the 20th CPC Central Committee, as well as
the deployments of the Central Financial Work Conference
and the Central Economic Work Conference. With a focus
on the goal of contributing to building the country into a
financial powerhouse, the Company adhered to the “people-
centric” approach, firmly fulfilling its functions as a “shock
absorber” for economic operation and a “stabiliser” for
social development. By prioritising high-quality development,
the Company steadfastly pushed forward its development
in finance with Chinese characteristics, serving the overall
interests of Chinese-style modernisation.
Over the past year, the external environment was complex
and severe. As a series of policies that significantly
influenced the industry were implemented, the challenge
of balancing multiple objectives was unprecedented.
The Company made proactive and pioneering efforts,
and achieved comprehensive improvements in the scale,
value, growth, quality, structure, efficiency and safety of
its business and operations. Key performance indicators
reached record highs, operational quality and efficiency
were significantly enhanced, comprehensive strength
was continuously bolstered, and market leading position
was further solidified, which represented an impressive
performance report brought by high-quality development.
During the Reporting Period, total assets and investment
assets experienced rapid growth, reaching RMB6.77 trillion
and RMB6.61 trillion, respectively. Gross written premiums1
amounted to RMB671,457 million, and embedded value
surpassed RMB1.4 trillion, maintaining industry leadership
positions in both business scale and value. Net profit
attributable to equity holders of the Company exceeded
RMB100 billion, reaching RMB106,935 million. Solvency
adequacy remained at a relatively high level. The Company
was honored with over 40 awards, including the “14th
China Securities Golden Bauhinia Awards – Excellent Listed
Company”, the “Ark Prize for Insurance Company with High-
quality Development in 2024”, and the “Investment Golden
Bull Award for the Insurance Industry”. It has consistently
received a Grade A rating in the evaluation of operations of
1
The data regarding premiums (including gross written premiums, premiums from new policies, first-year regular premiums, first-year regular premiums
with a payment duration of ten years or longer, renewal premiums, single premiums and short-term insurance business premiums, etc.) in this report are
relevant data under ASBE No. 25 – Direct Insurance Contracts (Caikuai [2006] No. 3), ASBE No. 26 – Reinsurance Contracts (Caikuai [2006] No. 3) and
the Regulations regarding the Accounting Treatment of Insurance Contracts (Caikuai [2009] No. 15).
Annual Report 2024 | Chairman’s Statement
09
insurance companies by the Insurance Association of China
for nine consecutive years, with top rankings in asset-liability
management capability assessments. We kept sharing the
benefits of the high-quality development with investors, and
implemented interim dividends for the first time. Together
with the proposed 2024 final cash dividends, total annual
dividends amounted to RMB18,372 million, maintaining a
high and stable level of dividend payouts.
We strengthened our functional roles and effectively
served the overall interests of national development.
With a profound understanding of the due role of the
insurance industry, we remained committed to the political
and people-centric nature of insurance, aiming to balance the
functional value and social value. We deeply served the multi-
tiered social security system, continuously supported the
enhancement of the national governance system, and actively
facilitated the construction of a modern industrial system. We
diligently fulfilled our commitments to supporting livelihood
protection, with the new insurance coverage exceeding
RMB200 trillion for the year and nearly 25 million claims
settled, thereby significantly boosting resilience to social
risks. Our efforts to improve the “third-pillar” service quality
positioned our third-pillar private pension and commercial
annuity insurance businesses ranking first in the industry.
Inclusive insurance benefited a wider range of groups,
with the scale of supplementary major medical expenses
insurance and long-term care insurance businesses steadily
expanding, and agricultural-related insurance providing
insurance protection for 270 million rural residents. As the
practitioner of “long-term capital” and “patient capital”,
we remained committed to our core mission, serving
the real economy more comprehensively and precisely
and fostering the development of new quality productive
forces. In 2024, our investments in the real economy
surpassed RMB4.62 trillion, investments contributing to
the construction of a modern industrial system and serving
the national and regional strategies amounted to RMB2.37
trillion and RMB3.03 trillion, respectively. We explored long-
term investment models for insurance funds and pioneered
the establishment of a private securities investment fund,
further underscoring our roles as the main force for serving
the real economy and maintaining financial stability. Due
to our commitment to green development, and notable
achievements in environmental, social and governance
practices, our MSCI ESG rating advanced to Grade A.
We deepened our asset-liability management and
significantly enhanced business value and profitability.
We advanced boldly with the times, prioritising business
development and focusing on value creation and profitability
improvement. We continuously enhanced the systematic,
forward-looking and proactive aspects of asset-liability
management, actively implemented the rules on “aligning
sales practices with regulatory filings”, strengthened cost
control and refined management, and further diversified our
products and businesses. As a result, the liability quality
of new business was consistently improved, product
structure was more balanced, remarkable results in cost
reduction and efficiency improvement were achieved, and
the efficiency in resource allocation was further improved.
Our capabilities for sustainable operations and value creation
became stronger, demonstrating new resilience and vitality,
with our market-leading competitive edge becoming more
prominent. During the Reporting Period, we solidified our
development foundation, with gross written premiums
reaching a new height from a high base, and the value of one
year’s sales growing rapidly, up by 24.3% year on year. By
adhering to the principle of asset-liability matching and the
philosophy of long-term investment, value investment and
prudent investment, and maintaining strategic consistency,
we seized market opportunities for cross-cycle fund
allocation and actively engaged in counter-cyclical equity
investments and medium- to long-term deployment, thus
achieving satisfactory investment results, with gross
investment income reaching RMB308,251 million and
the gross investment yield reaching 5.50%. The synergy
and alignment between assets and liabilities significantly
enhanced operational quality and efficiency, which brought
about the significant increase in our net profit attributable
to equity holders of the Company.
We prioritised integrity while driving innovation, and
accelerated our transformation and development.
Capitalising on prevailing trends and integrating into
the financial reform landscape, we persistently pursued
innovation and continuously evolved our business models,
expedited product innovation and services optimisation, so
as to enhance our insurance protection capabilities and
service quality, further strengthen our core competitiveness,
and lift the Company’s high-quality development to a new
level. To better meet the growing needs of the public for
insurance protection and wealth management, we stepped
up our efforts in the development of old-age finance,
accelerated the growth of commercial annuity insurance,
and achieved promising results in diversifying our health
insurance business. Our health service management model
Annual Report 2024 | Chairman’s Statement
10
has taken shape, and the three senior-care product lines,
namely retirement communities, retirement apartments,
and healthcare and senior-care sojourn facilities, have gone
into operation. The synergy between the healthcare and
senior-care ecosystem, integrated finance and our principal
insurance business gained momentum, with significant
ecological empowerment on the business value growth.
Our sales system reforms progressed as planned. With
the largest sales force in the industry, we accelerated the
transformation towards a specialised, professional and
integrated individual agent team. Indicators such as new
agent development, retention and productivity of the sales
force were consistently improved, and the deployment
of new sales models advanced steadily. We cultivated
new development momentums with a digital engine,
strengthened the foundation of digital empowerment, and
deepened the application of big data and artificial intelligence,
steadily enhancing our digital operational capabilities.
As a life insurance company processing over 20 million
claims annually, we made substantial strides in advancing
digitalisation of operations and maintained a leading position
in claims settlement efficiency. The brand influence of
“China Life Good Services”, known for “convenient, quality
and caring”, continued to grow. We have ranked first in the
industry for two consecutive years in life insurance service
quality index, and consistently achieved the highest level
in the industry in the assessment of consumer protection
conducted by industry regulator.
We coordinated business development and risk control,
and our risk prevention and control measures were robust
and effective. By embedding risk prevention and control into
our overall development strategy, we proactively adapted
to stringent regulatory trend, and further enhanced our
internal control, compliance and risk management systems
to fortify an effective security net against systemic risks,
thereby ensuring high-quality development with high-level
security. Our digital transformation in risk control yielded
positive results, enhancing the quality and efficiency of risk
prevention and control through real-time, centralised and
intelligent approaches. As a result, our multi-dimensional risk
analysis model became more efficient, the risk monitoring
network and early warning system became more responsive,
and the full-coverage and penetrating risk perception system
was further refined, with strengthened risk prevention
across key areas. We embedded compliance management
into all levels and aspects of our business operations and
management, and successfully passed the domestic and
international dual-standard certification and supervision audit
of our compliance management system. Our integrated
risk rating under China Risk Oriented Solvency System
(“C-ROSS”) and SARMRA scores remained among the top
of the industry.
With ambitious aspirations, we are to embark on a challenging
but lofty journey ahead. 2025 marks the final year of the
“14th Five-Year Plan” and is also a crucial year for further
deepening reforms comprehensively. As we navigate this
new journey in the new era, we will fully implement the
decisions and strategies of the CPC Central Committee,
position ourselves as effective executors, action-takers, and
hard-workers for further deepening reforms. We will be
deeply engaged in the “Five Priorities” of finance, hold on
to our primary responsibilities and principal business, with
a sharper focus on core functions, value creation, reforms
and transformation, and consolidation of foundation, so as
to expedite high-quality development of the Company, and
strive towards the goal of building the Company into a world-
class life insurance company with Chinese characteristics,
distinguished by “exceptional business development,
innovation-driven growth, efficient coordination, and modern
governance”.
By Order of the Board
Cai Xiliang
Chairman
26 March 2025
MANAGEMENT
DISCUSSION
AND ANALYSIS
Annual Report 2024 | Management Discussion and Analysis
11
REVIEW OF BUSINESS OPERATIONS
In 2024, the Company pursued its original aspiration and
mission of providing insurance services for the people
and concentrated on its primary responsibilities and
principal business. Following the main guideline of high-
quality development, it upheld the business philosophy of
the “three consistencies” (strengthening Party building,
promoting reforms and guarding against risks), the “three
enhancements” (stabilising business growth, increasing
business value and emphasising on sales force), and the
“three breakthroughs” (optimising services, facilitating
integration and cutting costs), and prioritised the “Five
Priorities” of finance, to further advance reforms and
innovations, leading to comprehensive improvements in
multiple objectives including scale, value, growth, quality,
structure, efficiency and safety of its business and
operations. The Company has received a Grade A rating in
the evaluation of operations of insurance companies by the
Insurance Association of China for nine consecutive years,
and ranked first in the industry for two consecutive years
in life insurance service quality index. In the integrated risk
rating for insurance companies, it has maintained a Class A
rating for 26 consecutive quarters.
The Company achieved new breakthroughs in its
operational performance. By incorporating the concept of
asset-liability management into every aspect of its business
operations and management, it strengthened cost reduction
and efficiency improvement, and strived to improve resource
allocation efficiency, thus attaining remarkable achievements
in its business development. During the Reporting Period,
the Company’s gross written premiums amounted to
RMB671,457 million, reaching a new height from a high
base, with a year-on-year increase of 4.7%, and its leading
advantage remaining solidified. In 2024, the Company
stepped up on cost control and underwriting management,
continued to strengthen the allocation of underlying positions
in fixed-income investments, and properly navigated the
equity market dynamics, with gross investment income
reaching RMB308,251 million, a significant increase of
150.4% compared to the corresponding period of last year.
With effective synergy between assets and liabilities, the
net profit attributable to equity holders of the Company
surpassed RMB100 billion, achieving the best performance
in history, reaching RMB106,935 million, a substantial year-
on-year increase of 131.6%.
Annual Report 2024 | Management Discussion and Analysis
12
The Company actively pursued high-quality development.
By remaining committed to the diversification in products and
businesses, it maintained balanced business development,
further optimised its business structure, and significantly
reduced the guarantee rates associated with new business
liabilities. During the Reporting Period, first-year regular
premiums reached RMB119,077 million, sustaining steady
growth from the high base of the previous year. In particular,
first-year regular premiums with a payment duration of ten
years or longer amounted to RMB56,603 million, a year-
on-year increase of 14.3%, achieving rapid growth, and its
proportion in the first-year regular premiums rose by 3.54
percentage points year on year, continuously strengthening
the Company’s long-term competitive advantage. Renewal
premiums grew by 6.2% year on year, further solidifying
the development foundation. The policy persistency rate of
14 months reached 91.60%, an increase of 1.20 percentage
points year on year. The Company owned the largest sales
force in the industry. As at the end of the Reporting Period,
the number of its total sales force was 666,000. With an
increase in both the scale of high-performance agents and
the productivity per agent, the Company achieved remarkable
results in enhancing the quality and efficiency of its sales
force. The value of one year’s sales achieved rapid growth,
marking a year-on-year increase of 24.3% based on the 2023
economic assumptions, and reaching RMB33,709 million
under the 2024 economic assumptions, which continued
to lead the industry.
The Company further enhanced its comprehensive
strengths. As at the end of the Reporting Period, the
Company’s total assets and investment assets both
surpassed RMB6 trillion, reaching RMB6.77 trillion and
RMB6.61 trillion, respectively. Equity holders’ equity
exceeded RMB500 billion for the first time, amounting to
RMB509,675 million, a year-on-year increase of 6.8%. The
comprehensive solvency ratio was 207.76%, and the core
solvency ratio was 153.34%, both maintaining at relatively
high levels. Its embedded value exceeded RMB1.4 trillion,
consistently leading the industry. The number of long-term
in-force policies held by the Company was 326 million.
Key Performance Indicators
RMB million
2024
2023
Gross written premiums
671,457
641,380
Premiums from new policies
214,172
210,813
Including: First-year regular premiums
119,077
112,573
First-year regular premiums with a
payment duration of ten years or longer
56,603
49,522
Renewal premiums
457,285
430,567
Gross investment income
308,251
123,082
Net profit attributable to equity holders of the Company
106,935
46,181
Value of one year’s sales (using 2024 economic assumptions)
33,709
–
Including: Individual agent channel
31,313
–
Value of one year’s sales (using 2023 economic assumptions)
45,805
36,860
Including: Individual agent channel
41,016
34,646
Policy persistency rate (14 months)1 (%)
91.60
90.40
Policy persistency rate (26 months)1 (%)
85.60
79.10
Surrender rate2 (%)
1.01
1.11
As at
31 December
2024
As at
31 December
2023
Embedded value
1,401,146
1,260,567
Number of long-term in-force policies (hundred million)
3.26
3.28
Notes:
1.
The persistency rate for long-term individual life insurance policy is an important operating performance indicator for life insurance companies. It measures
the ratio of in-force policies in a pool of policies after a certain period of time. It refers to the proportion of policies that are still effective during the
designated month in the pool of policies whose issue date was 14 or 26 months ago.
2.
Surrender rate, which is for long-term insurance business, is the proportion of the surrender payment to the sum of the reserves at the beginning of the
period and the premiums. Items such as surrender payment, reserves and premiums are relevant data under ASBE No. 25 – Direct Insurance Contracts
(Caikuai [2006] No. 3), ASBE No. 26 – Reinsurance Contracts (Caikuai [2006] No. 3) and the Regulations regarding the Accounting Treatment of Insurance
Contracts (Caikuai [2009] No. 15).
Annual Report 2024 | Management Discussion and Analysis
13
11.2%
24.3%
457,285
13,129
81,966
119,077
21,737
76,503
112,573
430,567
45,805
36,860
1,401,146
1,260,567
Gross written premiums
breakdown (RMB million)
Renewal premiums
Single premiums
Short-term
insurance premiums
First-year
regular premiums
2024
2023
Embedded value (RMB million)
As at 31 December 2024
As at 31 December 2023
2024
2023
Value of one year’s sales
(using 2023 economic assumptions) (RMB million)
Single premiums
Renewal premiums
First-year
regular premiums
Short-term
insurance premiums
BUSINESS ANALYSIS
Figures of Gross Written Premiums
Gross Written Premiums Categorised by Business
RMB million
2024
2023
Life insurance business
538,711
512,622
First-year business
129,683
130,839
First-year regular
116,557
109,112
Single
13,126
21,727
Renewal business
409,028
381,783
Health insurance business
119,136
114,023
First-year business
71,198
65,655
First-year regular
2,520
3,460
Single
68,678
62,195
Renewal business
47,938
48,368
Accident insurance business
13,610
14,735
First-year business
13,291
14,319
First-year regular
–
1
Single
13,291
14,318
Renewal business
319
416
Total
671,457
641,380
Note: Single premiums in the above table include premiums from short-term insurance business.
During the Reporting Period, gross written premiums from the life insurance business of the Company amounted to
RMB538,711 million, a year-on-year increase of 5.1%. Gross written premiums from the health insurance business were
RMB119,136 million, a year-on-year increase of 4.5%. Gross written premiums from the accident insurance business were
RMB13,610 million, a year-on-year decrease of 7.6%.
Annual Report 2024 | Management Discussion and Analysis
14
Gross Written Premiums Categorised by Channel
RMB million
2024
2023
Individual agent channel1
529,033
501,580
First-year business of long-term insurance
100,683
92,127
First-year regular
100,248
91,807
Single
435
320
Renewal business
409,823
391,218
Short-term insurance business
18,527
18,235
Bancassurance channel
76,201
78,748
First-year business of long-term insurance
29,476
40,191
First-year regular
18,776
20,735
Single
10,700
19,456
Renewal business
46,299
38,112
Short-term insurance business
426
445
Group insurance channel
27,625
28,154
First-year business of long-term insurance
1,742
1,946
First-year regular
10
15
Single
1,732
1,931
Renewal business
1,149
1,234
Short-term insurance business
24,734
24,974
Other channels2
38,598
32,898
First-year business of long-term insurance
305
46
First-year regular
43
16
Single
262
30
Renewal business
14
3
Short-term insurance business
38,279
32,849
Total
671,457
641,380
Notes:
1.
Gross written premiums of individual agent channel mainly include premiums of the general sales team and the upsales team, etc.
2.
Gross written premiums of other channels mainly include premiums of government-sponsored health insurance business and online sales, etc.
Annual Report 2024 | Management Discussion and Analysis
15
Insurance Business
Analysis of Insurance Business
Individual Agent Channel
Aiming at high-quality development, the individual agent
channel focused on value creation and deeply promoted
channel transformation. A steady growth was achieved on
a high base in all business performance indicators, and the
business structure was significantly optimised. During the
Reporting Period, gross written premiums from the individual
agent channel were RMB529,033 million, a year-on-year
increase of 5.5%. In particular, renewal premiums were
RMB409,823 million, a year-on-year increase of 4.8%. First-
year regular premiums were RMB100,248 million, a year-on-
year increase of 9.2%. First-year regular premiums with a
payment duration of ten years or longer were RMB56,564
million, a year-on-year increase of 14.3%, and its proportion
in the first-year regular premiums was 56.42%, an increase
of 2.50 percentage points year on year. The value of one
year’s sales of the individual agent channel rose by 18.4%
year on year based on the 2023 economic assumptions.
In 2024, the individual agent channel pushed forward its sales
system reforms in greater depth. The existing sales force
consistently pursued the concept of “team buildup based
on customer resources” to further refine the customer-
centric business operation and management system of
the channel, thereby facilitating a steady transformation
towards a specialised, professional, and integrated sales
force. With a focus on optimising agent recruitment and
development and increasing productivity, the “6+1” key
initiatives for the individual agent channel were fully
advanced, which continuously promoted the iterative
upgrade of key technologies for team buildup. The “Seed
Program”, launched under the deployment of new sales
model, progressed as planned, with the pilot program being
initiated in 24 cities, carrying out effective exploration of
new models, new tracks and new future opportunities. As
at the end of the Reporting Period, the number of agents of
the channel was 615,000, which remained relatively stable,
including 394,000 agents from the general sales team and
221,000 agents from the upsales team. The quality of the
sales force sustained the positive trend of improvement
over the years, with a gradual increase in both the scale and
proportion of high-performance agents. The productivity of
the sales force was steadily increased from a high base, and
the monthly average first-year regular premiums per agent
rose by 15.0% year on year.
Bancassurance Channel
The bancassuarance channel seized the opportunities of
high-quality development, optimised the business operation
and management system, and actively pushed forward the
channel transformation. With effective implementation of the
rules on “aligning sales practices with regulatory filings”, the
Company strengthened commission and expenses control,
achieving remarkable results in cost reduction and efficiency
improvement, which led to a significant increase in both
new business margin of one year’s sales and contribution
of value of one year’s sales of the channel. Meanwhile, the
Company vigorously expanded its distribution network, with
a continuous increase in the number of cooperative banks. It
also consistently enhanced the professional development of
its sales force, and further enriched bancassurance products.
The business scale of the channel remained stable due to the
above-mentioned measures. During the Reporting Period,
gross written premiums from the bancassurance channel
were RMB76,201 million, first-year regular premiums were
RMB18,776 million, and the proportion of renewal premiums
in the gross written premiums from the channel was 60.76%.
The number of account managers of the bancassurance
channel was 19,000.
100,248
529,033
91,807
501,580
9.2%
5.5%
Gross written premiums of individual
agent channel (RMB million)
615,000
Agents of individual
agent channel
2024
2023
First-year regular premiums
78,748
18,776
76,201
78,748
20,735
Gross written premiums of
bancassurance channel (RMB million)
19,000
Account managers of
bancassurance channel
2023
2024
First-year regular premiums
Annual Report 2024 | Management Discussion and Analysis
16
Group Insurance Channel
The group insurance channel maintained a focus on profitability
and consistently implemented a “diversified development”
strategy with targeted measures to expand key segments,
so as to facilitate steady development across all business
lines. During the Reporting Period, gross written premiums
from the group insurance channel were RMB27,625 million,
a year-on-year decrease of 1.9%. In particular, short-term
insurance premiums were RMB24,734 million, a year-on-year
decrease of 1.0%. As at the end of the Reporting Period,
the number of direct sales representatives of the group
insurance channel was 32,000, with per-capita productivity
increasing by 8.2% compared to the corresponding period
of last year, achieving steady improvement.
Short-term insurance premiums
24,734
27,625
24,974
28,154
Direct sales representatives
of group insurance channel
2024
2023
Gross written premiums of
group insurance channel (RMB million)
32,000
Other Channels
During the Reporting Period, gross written premiums
from other channels amounted to RMB38,598 million, an
increase of 17.3% year on year. The Company proactively
participated in a variety of government-sponsored health
insurance businesses and supported the construction of a
multi-tiered medical security system. As at the end of the
Reporting Period, the Company participated in undertaking
over 200 supplementary major medical expenses insurance
programs, 80 long-term care insurance programs and over
130 city-customised commercial medical insurance projects.
Online Insurance Business
The Company continued to promote the development of the
online insurance business by optimising its online insurance
business operation system featuring centralised operations
and unified management, so as to provide customers with
a quality service experience. In 2024, the online insurance
business recorded total premiums2 of RMB82,620 million, a
year-on-year increase of 8.7%. Specifically, the Company’s
online insurance business which integrated online and offline
sales remained stable, and the online exclusive business3
showing a rapid development trend. The Company took
the “Zhen E Plan” (振E計劃) as a key initiative to drive
the redesign and upgrade of the “China Life Insurance
Mall”, offering internet users a “China Life proprietary online
flagship store” with rich content, diversified products, easy
navigation and attentive service, which further enhanced
the channel’s independent operations and improved the
customers’ online experience.
Integrated Financial Business
The Company consistently engaged in the construction of
a “life insurance +” integrated financial ecosystem, with a
view to empowering its high-quality development. With a
focus on satisfying the diverse needs of its customers, the
Company has offered a variety of products and services
in conjunction with China Life group members, so as to
provide customers with one-stop and all-round solutions
of high-quality financial and insurance services. In 2024,
premiums of CLP&C cross-sold by the Company through
collaboration were RMB24,688 million, with the number
of insurance policies increasing by 5.2% year on year. The
scale of business of Pension Company cross-sold by the
Company through collaboration was RMB23,829 million.
The Company entrusted CGB to sell its bancassurance
products, with the first-year regular premiums amounting
to RMB1,442 million. The Company also actively explored
the synergy between insurance and investment businesses,
continuously deepened its cooperation with AMC and CLI,
etc., and further innovated and explored new insurance-
investment interactive models.
2
Including premiums from online insurance business acquired by different sales channels of the Company.
3
The online life insurance business under the regulator caliber.
Annual Report 2024 | Management Discussion and Analysis
17
Inclusive Healthcare and Integrated Senior-care Service
System
In 2024, the Company adhered to the “customer-centric”
approach, actively engaging in the construction of a multi-
tiered social security system. It pursued ongoing exploration
and innovation in the fields of inclusive healthcare and
integrated senior-care services and steadily advanced system
construction, with the objective of creating a comprehensive
and multi-tiered ecosystem for healthcare and senior-care
services.
With respect to the “insurance + healthcare services”,
the Company focused on customers’ health needs to
continuously enrich its health services. It launched inclusive
services such as AI-driven health reports interpretation and
VIP value-added services, providing customers with nearly a
million health management service benefits and convenient
medical healthcare access to promote their health. The
Company developed and promoted insurance products
that integrated health protection with health management,
incorporating health management services into certain mid-
to-high-end medical insurance products. It offered health
management services across more than a hundred city-
customised commercial health insurance programs. The
Company strengthened the standardised management of
health management services, continuously enhanced its
capabilities in this area, and developed a standardised and
professional health management service system. With
respect to the “insurance + senior-care services”, the
Company adhered to the philosophy of building a senior-
care ecosystem that “gives children peace of mind, and
reassures the senior people”. By leveraging the long-
term and stable advantages of insurance funds, it steadily
advanced the diversified supply of senior-care services and
accelerated the deployment of such services in key strategic
regions, endeavouring to construct a senior-care ecosystem
with China Life characteristics. The Company promoted
the deployment of three major senior-care product lines,
namely continuing care retirement communities (CCRC),
“city center” retirement apartments, and healthcare and
senior-care sojourn facilities. As at the end of the Reporting
Period, the Company had launched 17 residential senior-care
services projects in a total of 14 cities and introduced three
“Sui Xin Ju” (隨心居) sojourn products. It also researched
and explored the home-based senior-care services to address
the diversified senior-care needs of customers, thereby
empowering the growth of principal insurance business.
The Company consistently advanced the buildup of its
exclusive team of China Life senior-care services planners,
aiming to further satisfy the demands of its customers for
the comprehensive senior-care and insurance protection
services.
Analysis of Insurance Products
By diligently implementing the requirements of the new
“Ten National Guidelines” and proactively addressing the
“Five Priorities” of finance, the Company captured the
essence of high-quality development, strengthened the
coordinated management of assets and liabilities, so as to
adapt to evolving market conditions, and enhance its ability
in market perception and product innovation. In 2024, the
Company newly developed and upgraded over a hundred
products, continuously meeting the growing needs of the
public for insurance protection and wealth management.
Serving the national economy and people’s livelihood,
the Company remained steadfast in implementing
national strategies. It effectively implemented the “Five
Priorities” of finance, offering protection for people’s
livelihood. In relation to old-age finance, the Company
adapted to demographic trends in population age structure
and proactively responded to the demands of the silver
economy by vigorously developing commercial annuity
insurance, and continuously enriching the third-pillar private
pension insurance product portfolios across all channels. The
scale of third-pillar private pension business and the number
of customers served continued to grow accordingly, with
the number of new products of third-pillar private pension,
premiums from new policies, number of insurance policies,
and number of customers served all ranking first in the
industry. In relation to inclusive finance, the Company
continuously enriched its high-quality inclusive insurance
system, bolstering supply of insurance protection for specific
groups such as farmers, low-income individuals, new industry
practitioners and new urban residents, students and children,
and specific professions. It expanded its service reach on
an ongoing basis, broadened the coverage of the inclusive
insurance system, and simplified product terms to facilitate
customers to better understand the functions of insurance
products, thereby enhancing the accessibility of insurance
services. In relation to digital finance, the Company achieved
new breakthroughs in the provision of diverse online
products designed to meet the protection needs of online
customers concerning senior-care, death and accidents,
while considering the payment preferences of young online
customers. In relation to science and technology finance
and green finance, the Company actively contributed to
the advancement of solutions for technology insurance and
green insurance protection.
Annual Report 2024 | Management Discussion and Analysis
18
Remaining committed to innovation-driven growth,
the Company enriched its diverse product offerings. It
continued to advance product innovation, actively researched
evolving trends of market demands, and enhanced product
development agility, with an aim to build a high-quality
product supply system. Firstly, the Company further enriched
the product system for various customer groups. By aligning
with the protection needs of individuals at different life
cycles, including children, young adults, and the senior
people, it optimised insurance coverage and enhanced
insurance protection functions. Secondly, the Company
promoted the development of health insurance across
multiple areas through innovative approaches, and offered
comprehensive health insurance products that offer general
Top Five Insurance Products in terms of Gross Written Premiums in 2024
RMB million
Insurance product
Gross
written
premiums
Standard
premiums
from new
policiesNote
Major sales channel
Surrender
payment
China Life Xin Yao Long Teng Endowment Insurance
(國壽鑫耀龍騰兩全保險)
37,380
11,217
Mainly through the
channel of exclusive
individual agents
111
China Life Xin Xiang Wei Lai Endowment Insurance
(國壽鑫享未來兩全保險)
37,218
–
Mainly through the
channel of exclusive
individual agents
337
China Life Xin Yu Jin Sheng Endowment Insurance
(國壽鑫裕金生兩全保險)
34,274
–
Mainly through the
channel of exclusive
individual agents
439
China Life Xin Fu Lin Men Annuity Insurance
(國壽鑫福臨門年金保險)
33,536
–
Mainly through the
channel of exclusive
individual agents
1,180
China Life Critical Illness Group Health Insurance for
Rural and Urban Citizens (type A)
(國壽城鄉居民大病團體醫療保險(A型))
30,962
30,962
Through other channels
–
Note: Standard premiums are calculated in accordance with the calculation methods set forth in the “Notice on Establishing the Industry Standard of Standard
Premiums in the Life Insurance Industry” (Bao Jian Fa [2004] No. 102) and the “Supplementary Notice of the ‘Notice on Establishing the Industry
Standard of Standard Premiums in the Life Insurance Industry’” (Bao Jian Fa [2005] No. 25) of the former China Insurance Regulatory Commission.
or specialised options. The Company introduced its first
critical illness product with simplified underwriting, gender-
specific disease products, brain disease-specific products,
and lifelong long-term care products, thereby broadening
the coverage of health insurance products and services.
It improved health protection for substandard groups,
covering malignant tumors, actively incorporated innovative
drugs into protection coverage, and provided solutions for
different health protections, including cardiovascular and
cancer diseases. Thirdly, the Company promoted the positive
functions of products in effective asset-liability interaction,
consistently enriching the supply of semi-priced products
such as participating insurance product for different customer
groups.
Annual Report 2024 | Management Discussion and Analysis
19
Investment Business
In 2024, bond market interest rates declined significantly,
and quality assets were scarce. The stock market rebounded
rapidly after experiencing low-level fluctuations, with
significant structural differentiation. Under the complicated
market environment, the Company maintained strategic
consistency by adhering to the principle of asset-liability
matching and the philosophy of long-term investment, value
investment and prudent investment, and seized market
opportunities for cross-cycle fund allocation, resulting in a
substantial year-on-year increase in investment income. In
respect of fixed-income investments, the Company flexibly
adjusted its allocation pace and product strategies, and
continued to strengthen the allocation of underlying positions.
In respect of equity investments, it capitalised on market
opportunities to engage in counter-cyclical investments and
medium- to long-term deployment, consistently advancing
balanced allocations and optimised structure. In respect of
alternative investments, the Company concentrated on high-
quality entities as well as core assets, and made innovation
in investment models, for the purpose of stabilising the
size of allocations in this regard. As a whole, the Company
maintained a stable portfolio with high-quality assets.
Investment Portfolios
RMB million
Items
As at 31 December 2024
As at 31 December 2023
Amount
Percentage
Amount
Percentage
Categorised by investment object
Fixed-maturity financial assets
4,911,524
74.29%
4,119,072
72.78%
Term deposits
438,455
6.63%
413,255
7.30%
Bonds
3,903,074
59.04%
3,159,774
55.83%
Debt-type financial products1
523,721
7.92%
484,828
8.57%
Other fixed-maturity investments2
46,274
0.70%
61,215
1.08%
Equity financial assets
1,269,086
19.19%
1,099,601
19.43%
Common stocks
501,083
7.58%
430,200
7.60%
Funds3
306,551
4.64%
206,963
3.66%
Other equity investments4
461,452
6.97%
462,438
8.17%
Investment properties
12,319
0.19%
12,753
0.23%
Cash and others5
116,065
1.76%
169,064
2.99%
Investments in associates and joint ventures
302,077
4.57%
258,760
4.57%
Total
6,611,071
100.00%
5,659,250
100.00%
Categorised by accounting method
Financial assets at fair value through profit or loss
1,908,098
28.86%
1,705,375
30.13%
Investment in debt instruments at amortised cost
196,754
2.98%
211,349
3.74%
Investment in debt instruments at fair value
through other comprehensive income
3,458,895
52.32%
2,744,169
48.49%
Investment in equity instruments at fair value
through other comprehensive income
171,817
2.60%
138,005
2.44%
Investments in associates and joint ventures
302,077
4.57%
258,760
4.57%
Others
573,430
8.67%
601,592
10.63%
Total
6,611,071
100.00%
5,659,250
100.00%
Notes:
1.
Debt-type financial products include debt investment schemes, trust schemes, asset-backed plans, credit asset-backed securities, specialised asset
management plans, and asset management products, etc.
2.
Other fixed-maturity investments include statutory deposits-restricted and interbank certificates of deposits, etc.
3.
Funds include equity funds, bond funds and money market funds, etc. In particular, the balances of money market funds as at 31 December 2024 was
RMB2,095 million.
4.
Other equity investments include private equity funds, unlisted equities, preference shares and equity investment plans, etc.
5.
Cash and others include cash, cash at banks, short-term deposits, and financial assets purchased under agreements to resell, etc.
Annual Report 2024 | Management Discussion and Analysis
20
Investment Income
RMB million
2024
2023
Gross investment income
308,251
123,082
Net investment income
195,674
185,866
Net income from fixed-maturity investments
146,587
144,216
Net income from equity investments
34,489
29,117
Net income from investment properties
93
102
Investment income from cash and others
2,428
4,352
Share of profit of associates and joint ventures
12,077
8,079
+ Realised disposal gains
(4,245)
(31,280)
+ Unrealised gains or losses
118,160
(32,786)
– Expected credit losses of investment assets
(264)
(1,282)
– Impairment losses of investment assets
1,602
–
Net investment yield
3.47%
3.70%
Gross investment yield
5.50%
2.43%
Note: In the calculation of the investment yield, the average investment assets as the denominator exclude the fair value changes of investment in debt
instruments at fair value through other comprehensive income, so as to reflect the strategic intention of the Company for the management of assets
and liabilities.
In 2024, the Company’s net investment income was
RMB195,674 million, an increase of RMB9,808 million
from the corresponding period of 2023, and the net
investment yield was 3.47%, down by 23 basis points
from the corresponding period of 2023. In 2024, the gross
investment income was RMB308,251 million, an increase of
RMB185,169 million from the corresponding period of 2023,
and the gross investment yield was 5.50%, up by 307 basis
points from the corresponding period of 2023.
Credit Risk Management
The Company’s credit asset investments mainly included
credit bonds and debt-type financial products, which
concentrated on sectors such as banking, transportation,
non-banking finance, public utilities, and energy. As at the
end of the Reporting Period, over 98% of the credit bonds
held by the Company were rated AAA by external rating
institutions, whereas over 99% of the debt-type financial
products were rated AAA by external rating institutions. In
general, the asset quality of the Company’s credit investment
products was in good condition, and the credit risks were
well controlled.
The Company insisted on a prudent investment philosophy.
Based on a disciplined and scientific internal rating system
and a multi-dimensional management mechanism of risk
limits, the Company prudently scrutinised credit profiles of
targets and risk exposure concentration before investing and
carried out ongoing tracking after investment, effectively
controlling credit risks through early identification, early
warning, early exposure and early disposal.
Major Investments
During the Reporting Period, there was no material equity
investment or non-equity investment of the Company that
was subject to disclosure requirements.
As at the end of the Reporting Period, the Company’s
investment assets reached RMB6,611,071 million, an
increase of 16.8% from the end of 2023. The percentage
of investment in major assets categories remained stable.
Among the major types of investments, the percentage of
investment in bonds increased to 59.04% from 55.83%
as at the end of 2023, the percentage of term deposits
decreased to 6.63% from 7.30% as at the end of 2023, the
percentage of investment in debt-type financial products
decreased to 7.92% from 8.57% as at the end of 2023, and
the percentage of investment in stocks and funds (excluding
money market funds) increased to 12.18% from 11.23% as
at the end of 2023.
Annual Report 2024 | Management Discussion and Analysis
21
ANALYSIS OF SPECIFIC ITEMS
Insurance Revenue
Insurance revenue primarily includes expected insurance service expenses incurred in the current period, amortisation of
contractual service margin, changes in the risk adjustment for non-financial risk, amortisation of insurance acquisition cash
flows, and allocations using the premium allocation approach, etc., all recognised within the insurance period.
RMB million
2024
2023
Change
Insurance revenue
208,161
212,445
-2.0%
Contracts measured using the premium allocation approach
51,286
52,147
-1.7%
Contracts not measured using the premium allocation approach
156,875
160,298
-2.1%
Insurance Service Expenses
Insurance service expenses primarily include incurred claims and other expenses, amortisation of insurance acquisition cash
flows, and losses and reversals of losses on onerous contracts, etc.
RMB million
2024
2023
Change
Insurance service expenses
180,544
150,353
20.1%
Contracts measured using the premium allocation approach
51,873
51,331
1.1%
Contracts not measured using the premium allocation approach
128,671
99,022
29.9%
Insurance Finance Income/(expenses) from Insurance Contracts Issued
Insurance finance income/(expenses) from insurance contracts issued refers to the profit or loss arising from insurance
contracts relating to the effect of time value of money and financial risk, of which the amount for contracts measured using
the variable fee approach is the amount recognised in profit or loss arising from the corresponding investment assets.
RMB million
2024
2023
Change
Insurance finance income/(expenses) from
insurance contracts issued
209,952
127,923
64.1%
Annual Report 2024 | Management Discussion and Analysis
22
Insurance Contract Liabilities
RMB million
As at
31 December
2024
As at
31 December
2023
Change
Contracts measured using the premium allocation approach
35,570
33,770
5.3%
Contracts not measured using the premium allocation approach
5,789,456
4,825,405
20.0%
Total of insurance contract liabilities
5,825,026
4,859,175
19.9%
Liabilities for incurred claims
64,339
62,108
3.6%
Liabilities for remaining coverage
5,760,687
4,797,067
20.1%
Total of insurance contract liabilities
5,825,026
4,859,175
19.9%
Including: Contractual service margin
742,488
769,137
-3.5%
As at the end of the Reporting Period, the insurance contract
liabilities of the Company were RMB5,825,026 million, an
increase of 19.9% from the end of 2023, primarily due to
the combined impacts of the accumulation of insurance
liabilities from new policies and renewals and the change
in market interest rates.
The contractual service margin of insurance contracts was
RMB742,488 million, a year-on-year decrease of 3.5%. The
contractual service margin for insurance contracts initially
recognised in the current period was RMB57,708 million, a
year-on-year increase of 12.9%.
Analysis of Cash Flows
Liquidity Sources
The Company’s cash inflows mainly come from insurance
premiums received, interest, dividend and bonus, and
proceeds from sale and maturity of investment assets. The
primary liquidity risks with respect to these cash inflows are
the risk of surrender by contract holders and policyholders,
as well as the risks of default by debtors, interest rate
fluctuations and other market volatilities. The Company
closely monitors and manages these risks.
The Company’s cash and bank deposits can provide it with a
source of liquidity to meet normal cash outflows. As at the
end of the Reporting Period, the balance of cash and cash
equivalents was RMB85,505 million. In addition, the vast
majority of its term deposits in banks allow it to withdraw
funds on deposits, subject to a penalty interest charge. As
at the end of the Reporting Period, the amount of term
deposits was RMB438,455 million.
The Company’s investment portfolio also provides it with
a source of liquidity to meet unexpected cash outflows.
The Company is also subject to market liquidity risk due to
the large size of its investments in some of the markets
in which it invests. In some circumstances, some of its
holdings of investment securities may be large enough to
have an influence on the market value. These factors may
adversely affect its ability to sell these investments or sell
them at a fair price.
Liquidity Uses
The Company’s principal cash outflows primarily relate to
the payables for the liabilities associated with its various life
insurance, annuity, accident insurance and health insurance
products, operating expenses, income taxes and dividends
that may be declared and paid to its equity holders. Cash
outflows arising from the Company’s insurance activities
primarily relate to benefit payments under these insurance
products, as well as payments for policy surrenders,
withdrawals and policy loans.
The Company believes that its sources of liquidity are
sufficient to meet its current cash requirements.
Annual Report 2024 | Management Discussion and Analysis
23
Consolidated Cash Flows
The Company has established a cash flow testing system, and conducts regular tests to monitor the cash inflows and
outflows under various scenarios and adjusts the asset portfolio accordingly to ensure sufficient sources of liquidity.
RMB million
2024
2023
Change
Main reasons for change
Net cash inflow/(outflow) from
operating activities
378,795
384,366
-1.4%
–
Net cash inflow/(outflow) from
investing activities
(354,620)
(424,236)
-16.4%
The needs for investment
management
Net cash inflow/(outflow) from
financing activities
(86,759)
60,273
N/A
The needs for liquidity
management
Foreign exchange gains/(losses) on
cash and cash equivalents
28
64
-56.3%
–
Net increase/(decrease) in
cash and cash equivalents
(62,556)
20,467
N/A
–
Solvency Ratio
An insurance company shall have the capital commensurate with its risks and business scale. According to the nature
and capacity of loss absorption by capital, the capital of an insurance company is classified into the core capital and the
supplementary capital. The core solvency ratio is the ratio of core capital to minimum capital, which reflects the adequacy
of the core capital of an insurance company. The comprehensive solvency ratio is the ratio of the sum of core capital and
supplementary capital to minimum capital, which reflects the overall capital adequacy of an insurance company.
RMB million
As at
31 December
2024
As at
31 December
2023
Core capital
767,446
710,527
Actual capital
1,039,821
981,594
Minimum capital
500,489
449,160
Core solvency ratio
153.34%
158.19%
Comprehensive solvency ratio
207.76%
218.54%
As at the end of the Reporting Period, the Company’s comprehensive solvency ratio was 207.76%, a decrease of 10.78
percentage points from the end of 2023, and the Company’s core solvency ratio was 153.34%, a decrease of 4.85
percentage points from the end of 2023, all continuing to stay at relatively high levels. Due to the impacts of the downward
trend in solvency reserve assessment interest rates, business development, investment assets allocation, and dividends to
shareholders, the solvency ratios decreased compared to those at the end of 2023.
Sale of Material Assets and Equity
During the Reporting Period, there was no sale of material assets and equity of the Company.
Annual Report 2024 | Management Discussion and Analysis
24
Major Subsidiaries and Associates of the Company1
RMB million
Company name
Major business scope
Registered
capital
Shareholding
Total
assets
Net
assets
Net
profit
China Life Asset
Management
Company
Limited
Management and utilisation of proprietary funds; acting as
agent or trustee for asset management business; consulting
business relevant to the above businesses; other asset
management business permitted by applicable PRC laws and
regulations.
4,000
60%
23,994
21,116
3,857
China Life
Pension
Company
Limited
Group pension insurance and annuity; individual pension
insurance and annuity; short-term health insurance; accident
insurance; reinsurance of the above insurance businesses;
business for the use of insurance funds that are permitted
by applicable PRC laws and regulations; pension insurance
asset management product business; management of funds
in RMB or foreign currency as entrusted by entrusting parties
for the retirement benefit purpose; other businesses permitted
by the NFRA.
3,400
70.74% is
held by the
Company, and
3.53% is held
by AMC
60,802
8,184
1,246
China Life
Property
and Casualty
Insurance
Company
Limited2
Property loss insurance; liability insurance; credit insurance
and bond insurance; short-term health insurance and accident
insurance; reinsurance of the above insurance businesses;
business for the use of insurance funds that are permitted
by applicable PRC laws and regulations; other businesses
permitted by the NFRA.
27,800
40%
149,517
37,248
1,947
China Guangfa
Bank Co., Ltd.
Taking public deposits; granting short-term, mid-term and long-
term loans; handling settlements in and out of China; honoring
bills and offering discounting services; issuing financial bonds;
issuing, paying for and underwriting government bonds as an
agent; sales and purchases of negotiable securities such as
government bonds and financial bonds; engaging in inter-bank
borrowings; providing letters of credit service and guarantee;
engaging in bank card business; acting as payment and receipt
agent and insurance agent; providing safe deposit box services;
taking deposits and granting loans in foreign currency; foreign
currency remittance; foreign currency exchange; international
settlements; foreign exchange settlements and sales; inter-
bank foreign currency borrowings; honoring bills of exchange
and offering discounting services in foreign currency; granting
foreign currency loans; granting foreign currency guarantees;
sales and purchases of negotiable securities other than
shares in a foreign currency for itself and as an agent; issuing
negotiable securities other than shares in a foreign currency for
itself and as an agent; sales and purchases of foreign exchange
on its own account and on behalf of its customers; issuing and
making payments for foreign credit card as an agent; offshore
financial operations; assets and credit verification, consultation
and notarisation businesses; other businesses approved by the
NFRA and other relevant authorities.
21,790
43.686%
3,644,993
299,011
15,284
Notes:
1.
For details, please refer to Note 10 and Note 31(b) in the Notes to the Consolidated Financial Statements in this annual report.
2.
CLP&C has not adopted IFRS 9 – Financial Instruments and IFRS 17 – Insurance Contracts. Therefore, the financial data presented in this table is calculated
in accordance with IFRS 39 – Financial Instruments and IFRS 4 – Insurance Contracts.
Structured Entities Controlled by the Company
Details of structured entities controlled by the Company are set out in Note 31(b) in the Notes to the Consolidated Financial
Statements in this annual report.
Annual Report 2024 | Management Discussion and Analysis
25
DIGITALISED AND INTELLIGENT
OPERATIONS AND SERVICES
In 2024, in line with the development trends of the digital
economy era, the Company held on to the “customer-
centric” approach and the data-driven strategy to accelerate
the advancement of digital finance practices and deepen
the integration of digitalised and intelligent technology with
operations and services, which led to new enhancements
in areas such as data value extraction, new digitalised and
intelligent infrastructure, operational quality and efficiency,
service experience, and consumer rights protection. The
Company continously built the “China Life Good Services”
sub-brand featured with “convenient, quality and caring”
services, aiming to offer robust support for its business
development through high-quality, digitalised and intelligent
operations and services.
The release of data value was accelerated. The Company
efficiently managed the largest and longest-spanning life
insurance data, and established a full lifecycle management
system for data. The real-time capabilities, accuracy,
consistency and security of data enhanced significantly on
a high level, and precisely empowered the entire operational
and service processes of the Company, achieving a
regulatory reporting data accuracy rate of 99.9999%. The
Company shared its advanced data management expertise
by participating as the leader of the insurance industry in
the formulation of first national data standard by the National
Data Administration, the “White Paper on the Standardisation
of Data Element Circulation”, and appointing personnel to
serve as members of the National Technical Committee on
Data Standardisation Administration of China (全國數據標準
化技術委員會), which effectively advanced the construction
of national data standards.
Digitalised and intelligent infrastructure empowered
development. Committed to comprehensive technological
autonomy, the Company accelerated the transformation of its
data centres towards intelligent, streamlined and distributed
architectures to create more flexible, secure and reliable new
digitalised and intelligent infrastructure, which effectively
supported the rapid growth of its business and the swift
implementation of cutting-edge technologies. AI large model
technology was applied in various business scenarios such
as intelligent underwriting, sales force training and office
system collaboration. With the China Life APP, which has
nearly 160 million registered customers, as the core, the
Company created a digital operations and services matrix
that enables real-time customer access. Over the year, the
Company served over 3,000 million customers, settled nearly
25 million claims, and achieved intelligent processing rates
of insurance underwriting and policy administration of 95.2%
and 99%, respectively. Claims settlement efficiency led the
industry, with the “Full-process Claims Settlement without
Manual Services” rolled out in 27 provinces. The number
of customers benefiting from “Advanced Claims Payment”
doubled year on year, and “Direct Claims Payment” could
settle claims in seconds at the earliest.
The quality and efficiency of digitalised and intelligent
operations were both enhanced. By promoting the
nationwide sharing of operational resources, the Company
consistently improved its capabilities for integrated intelligent
operational coordination. The shared model was extensively
applied in business operations and customer services, with
processing efficiency in areas such as insurance underwriting
and claims settlement increasing by over 26%. Customer
waiting times for online customer services were reduced by
18.9%. The centralised anti-money laundering work model
was reformed, with operations consolidated from provincial,
municipal, and county levels nationwide, resulting in an
efficiency increase of over three times. Risk prevention
and control were shifted from “post-event handling” to
the critical stages of “prevention prior to the event” and
“control during the event”, further strengthening the lines
of defense for risk control through digital means.
The supply of heart-warming services became increasingly
enriched. The Company continuously developed a service
system that offers “one-click access online and convenient
presence offline”. Throughout the year, over 580 service
centers were upgraded. The 95519 customer service hotline
maintained a high manual call answering rate of 98.0%,
while the number of customers served through one-stop
online customer services increased by 49.4% year on year.
VIP services were enriched with new health and medical
benefits, such as rehabilitation care and high-end physical
examination, and the number of customers served via VIP
services increased by 26.8% year on year. Through both
online and offline touchpoints, the Company provided heart-
warming and age-friendly services to more than 27 million
person-time over the year.
The consumer protection was further enhanced for the
benefit of the public. The Company further developed a
“comprehensive consumer protection” paradigm featuring
all-employee participation, full coverage and whole-chain
management. It actively promoted the integration of consumer
protection into all business processes, improved consumer
protection management systems, and strengthened digital
capabilities in consumer protection management, including
consumer protection review and assessment, and customer
complaint management. The “consumer protection +”
education and promotion continued to expand its coverage,
with the number of consumers reached through related
activities increasing by 52.5% year on year. The Company
has ranked first in the industry for two consecutive years
in life insurance service quality index, and consistently
achieved the highest level in the industry in the assessment
of consumer protection conducted by industry regulator,
with customer satisfaction staying at a high level.
Annual Report 2024 | Management Discussion and Analysis
26
FUTURE PROSPECT
Industry Landscape and Development Trends
The third plenary session of the 20th CPC Central Committee
and the Central Financial Work Conference have provided
guidance for the development of the insurance industry. The
insurance industry has increasingly become a key participant
and contributor to the national governance and social security
systems. In 2025, China will support sustained economic
recovery and improvement by implementing more proactive
fiscal policies and moderately accommodative monetary
policies, enhancing the people’s livelihood-oriented approach
of macroeconomic policies, and executing a coordinated
“policy toolkit”, which provides a solid foundation for
the long-term and continuous growth of the industry.
The people’s aspirations for a better life are continuously
evolving, accelerating the release of their demands for
insurance protection, wealth management, and healthcare
and senior-care services. The role of insurance funds as
“long-term capital” and “patient capital” will become
increasingly significant, with vast potential for leveraging
functions as a “shock absorber” for economic operation
and a “stabiliser” for social development. The industry is
entering a new era of strategic development opportunities.
The main themes of stringent regulation, risk prevention,
and high-quality development in the industry are becoming
clearer, with the ongoing implementation of a series of
policies such as the dynamic adjustment mechanism for the
product’s guaranteed return and the rules on “aligning sales
practices with regulatory filings”, creating a more secure and
orderly development environment for the industry.
Development Strategies and Business Plans of the
Company
In 2025, the Company will continue to adhere to the overall
principle of seeking progress while maintaining stability, and
firmly uphold the core philosophy of “three consistencies”,
“three enhancements” and “three breakthroughs” for
high-quality development. It will focus on core functions to
strengthen, optimise, and expand its primary responsibilities
and principal business, and prioritise value creation by
upgrading its development model. It will emphasise on
transformation and reforms to continuously cultivate new
momentums for business development, and also concentrate
on consolidating its foundation to comprehensively lead and
ensure high-quality development. The Company aims to
achieve stable and healthy development across all business
sectors, consolidate its market-leading position in business
scale and value, and ensure a steady improvement of its
sales force in both quantity and quality.
Potential Risks
At present, the external environment remains complex
and volatile, with profound changes in demographic and
economic structures, as well as the interest rate environment.
The insurance industry of China is at a pivotal stage of
overcoming challenges while pursuing transformation
and upgrading. The asset-liability interaction management
needs to be strengthened urgently, the benefits of sales
system reforms will take time to be realised, and the
foundation for cost reduction, efficiency improvement, and
sustainable development requires further reinforcement. In
the forthcoming period, the Company will prioritise high-
quality development as its primary objective, take deepening
reforms as the fundamental approach, further enhance
its capability to address risks, and make great efforts to
build a world-class life insurance company with Chinese
characteristics.
The Company anticipates that it will have sufficient capital to
meet its insurance business expenditures and new general
investment needs in 2025. At the same time, the Company
will make corresponding financing arrangements based
on capital market conditions if it plans to implement any
business development strategies in the future.
EMBEDDED
VALUE
Annual Report 2024 | Embedded Value
27
BACKGROUND
China Life Insurance Company Limited prepares financial
statements to public investors in accordance with the
relevant accounting standards. An alternative measure of
the value and profitability of a life insurance company can be
provided by the embedded value method. Embedded value is
an actuarially determined estimate of the economic value of
the life insurance business of an insurance company based
on a particular set of assumptions about future experience,
excluding the economic value of future new business.
In addition, the value of one year’s sales represents an
actuarially determined estimate of the economic value arising
from new life insurance business issued in one year based
on a particular set of assumptions about future experience.
China Life Insurance Company Limited believes that
reporting the Company’s embedded value and value of one
year’s sales provides useful information to investors in two
respects. First, the value of the Company’s in-force business
represents the total amount of shareholders’ interest in
distributable earnings, in present value terms, which can
be expected to emerge over time, in accordance with the
assumptions used. Second, the value of one year’s sales
provides an indication of the value created for investors
by new business activity based on the assumptions used
and hence the potential of the business. However, the
information on embedded value and value of one year’s sales
should not be viewed as a substitute of financial measures
under the relevant accounting basis. Investors should not
make investment decisions based solely on embedded value
information and the value of one year’s sales.
It is important to note that there is no universal standard which
defines the form, calculation methodology or presentation
format of the embedded value of an insurance company.
Hence, differences in definition, methodology, assumptions,
accounting basis and disclosures may cause inconsistency
when comparing the results of different companies.
Also, the calculation of embedded value and value of one
year’s sales involves substantial technical complexity and
estimates can vary materially as key assumptions are
changed. Therefore, special care is advised when interpreting
embedded value results.
The values shown below do not consider the future financial
impact of transactions between the Company and CLIC, CLI,
AMC, Pension Company, CLP&C, and etc.
Annual Report 2024 | Embedded Value
28
DEFINITIONS OF EMBEDDED VALUE
AND VALUE OF ONE YEAR’S SALES
The embedded value of a life insurer is defined as the sum
of the adjusted net worth and the value of in-force business
allowing for the cost of required capital.
“Adjusted net worth” is equal to the sum of:
• Net assets, defined as assets less corresponding policy
liabilities and other liabilities valued; and
• Net-of-tax adjustments for relevant differences between
the market value and the book value of assets, together
with relevant net-of-tax adjustments to certain liabilities.
The market value of assets can fluctuate significantly over
time due to the impact of the prevailing market environment.
Hence the adjusted net worth can fluctuate significantly
between valuation dates.
The “value of in-force business” and the “value of one
year’s sales” are defined here as the discounted value of
the projected stream of future shareholders’ interest in
distributable earnings for existing in-force business at the
valuation date and for one year’s sales in the 12 months
immediately preceding the valuation date.
The value of in-force business and the value of one year’s
sales have been determined using a traditional deterministic
discounted cash flow methodology. This methodology
makes implicit allowance for all risks that are not considered
in valuation process (e.g. risks in accordance with solvency
capacity, cash flow adequacy, and business characteristics)
and the economic cost of required capital through the use
of a risk-adjusted discount rate.
PREPARATION AND REVIEW
The embedded value and the value of one year’s sales
were prepared by China Life Insurance Company Limited
in accordance with the “CAA Standards of Actuarial
Practice: Appraisal of Embedded Value” issued by the China
Association of Actuaries (“CAA”). KPMG Advisory (China)
Co., Ltd. performed a review of China Life’s embedded
value and value of one year’s sales. The review statement
is contained in the “Independent Actuaries Review Opinion
Report on Embedded Value of China Life Insurance Company
Limited” section.
ASSUMPTIONS
Economic assumptions: The calculations are based upon
assumed corporate tax rate of 25% for all years. The overall
investment return of the Company is assumed to be 4% per
annum. 17% grading to 21% (remaining level thereafter) of
the investment return is assumed to be exempt from income
tax. The investment return and tax exempt assumptions are
based on the Company’s strategic asset mix and expected
future returns. Considering the risks associated with different
business characteristics, the risk-adjusted discount rate for
traditional business is assumed to be 8% per annum, and
the risk-adjusted discount rate for semi-priced business is
assumed to be 7.2% per annum.
Other operating assumptions such as mortality, morbidity,
lapses and expenses are based on the Company’s recent
operating experience and expected future outlook.
Annual Report 2024 | Embedded Value
29
SUMMARY OF RESULTS
The embedded value as at 31 December 2024 and the corresponding results as at 31 December 2023 are shown below:
Components of Embedded Value
RMB million
ITEMS
31 December
2024
31 December
2023
A Adjusted Net Worth
897,831
675,760
B Value of In-Force Business before Cost of Required Capital
597,126
648,848
C Cost of Required Capital
(93,811)
(64,040)
D Value of In-Force Business after Cost of Required Capital (B + C)
503,315
584,807
E Embedded Value (A + D)
1,401,146
1,260,567
Note: Numbers may not be additive due to rounding.
The value of one year’s sales for the 12 months ended 31 December 2024 and for the corresponding period of last year
is shown below:
Components of Value of One Year’s Sales
RMB million
31 December
2024
31 December
2024
31 December
2023
ITEMS
(Using 2023
Economic
Assumptions)
A Value of One Year’s Sales before Cost of Required Capital
39,587
50,400
45,184
B Cost of Required Capital
(5,878)
(4,595)
(8,324)
C Value of One Year’s Sales after Cost of Required Capital (A + B)
33,709
45,805
36,860
Including: Value of One Year’s Sales of Individual Agent Channel
31,313
41,016
34,646
The new business margin of one year’s sales of individual agent channel for the 12 months ended 31 December 2024 and
for the corresponding period of last year is shown below:
New Business Margin of One Year’s Sales of Individual Agent Channel
31 December
2024
31 December
2024
31 December
2023
(Using 2023
Economic
Assumptions)
By First Year Premium
25.7%
33.7%
29.9%
By Annual Premium Equivalent
26.2%
34.3%
31.3%
Note: First Year Premium is the written premium used for calculation of the value of one year’s sales and Annual Premium Equivalent is calculated as the
sum of 100 percent of first year regular premiums and 10 percent of single premiums.
Annual Report 2024 | Embedded Value
30
MOVEMENT ANALYSIS
The following analysis tracks the movement of the embedded value from the start to the end of the Reporting Period:
Analysis of Embedded Value Movement in 2024
RMB million
ITEMS
A Embedded Value at the Start of Year
1,260,567
B Expected Return on Embedded Value
99,809
C Value of New Business in the Period
33,709
D Operating Experience Variance
681
E Investment Experience Variance
64,061
F Methodology, Model and Assumption Changes
(146,489)
G Market Value and Other Adjustments
106,457
H Exchange Gains or Losses
17
I
Shareholder Dividend Distribution and Capital Changes
(17,807)
J Others
141
K Embedded Value as at 31 December 2024 (sum A through J)
1,401,146
Notes: Items B through J are explained below:
B
Reflects expected impact of covered business, and the expected return on investments supporting the 2024 opening net worth.
C
Value of one year’s sales for the 12 months ended 31 December 2024.
D
Reflects the difference between actual operating experience in 2024 (including mortality, morbidity, lapse, and expenses etc.) and the assumptions.
E
Compares actual with expected investment returns during 2024.
F
Reflects the effects of appraisal methodology and model enhancement, and assumption changes.
G
Change in the market value adjustment from the beginning of year 2024 to 31 December 2024 and other adjustments.
H
Reflects the gains or losses due to changes in exchange rate.
I
Reflects dividends distributed to shareholders during 2024.
J
Other miscellaneous items.
Annual Report 2024 | Embedded Value
31
SENSITIVITY RESULTS
Sensitivity tests were performed using a range of alternative assumptions. In each of the sensitivity tests, only the assumption
referred to was changed, with all other assumptions remaining unchanged. The results are summarised below:
Sensitivity Results
RMB million
Value of In-Force
Business after Cost of
Required Capital
Value of One Year’s
Sales after Cost of
Required Capital
Base case scenario
503,315
33,709
1. Risk discount rate +50bps
474,562
31,936
2. Risk discount rate -50bps
534,492
35,610
3. 10% increase in investment return
632,972
42,332
4. 10% decrease in investment return
374,256
25,110
5. 10% increase in expenses
495,312
30,296
6. 10% decrease in expenses
511,318
37,123
7. 10% increase in mortality rate for non-annuity products and
10% decrease in mortality rate for annuity products
498,611
32,844
8. 10% decrease in mortality rate for non-annuity products and
10% increase in mortality rate for annuity products
507,995
34,579
9. 10% increase in lapse rates
507,707
32,896
10. 10% decrease in lapse rates
498,840
34,590
11. 10% increase in morbidity rates
493,979
31,786
12. 10% decrease in morbidity rates
512,716
35,634
13. Allowing for diversification in calculation of VIF
537,977
–
Annual Report 2024 | Embedded Value
32
INDEPENDENT ACTUARIES REVIEW
OPINION REPORT ON EMBEDDED
VALUE OF CHINA LIFE INSURANCE
COMPANY LIMITED
China Life Insurance Company Limited (“China Life”) has
prepared embedded value results as at 31 December 2024
(“EV Results”). The disclosure of these EV Results, together
with a description of the methodology and assumptions that
have been used, are shown in the Embedded Value section.
China Life has retained KPMG Advisory (China) Limited
(“KPMG Advisory” or “We”) to review its EV Results.
Scope of Work
Our scope of work covered:
• a review of the methodology used to develop the
embedded value and value of one year’s sales as at 31
December 2024, in accordance with the “CAA Standards
of Actuarial Practice: Appraisal of Embedded Value”
issued by CAA;
• a review of the economic and operating assumptions
used to develop embedded value and value of one year’s
sales as at 31 December 2024; and
• a review of China Life’s EV Results, including embedded
value, value of one year’s sales, analysis of embedded
value movement from 31 December 2023 to 31 December
2024, and the sensitivity analysis of value of in-force
business and value of one year’s sales.
Basis of Opinion, Reliance and Limitation
We carried out our review work based on the “CAA Standards
of Actuarial Practice: Appraisal of Embedded Value”. In
carrying out our review, we have relied on the completeness
and accuracy of audited and unaudited data and information
provided by China Life.
The determination of embedded value is based on a range
of assumptions on future operations and investment
performance. The future actual experiences are affected
by internal and external factors, many of which are not
entirely controlled by China Life. Hence the future actual
experiences may deviate from these assumptions.
This report is addressed solely to China Life in accordance
with the terms of our engagement letter. To the fullest
extent permitted by applicable law, we do not accept or
assume any responsibility, duty of care or liability to anyone
other than China Life for or in connection with our review
work, the opinions we have formed, or for any statements
set forth in this report.
Opinion
Based on the scope of work above, we have concluded that:
• The embedded value methodology and assumptions
used by China Life are in line with the “CAA Standards
of Actuarial Practice: Appraisal of Embedded Value” and
are consistent with the available market information.
This methodology is commonly used by life and health
insurance companies in China;
• The economic assumptions used by China Life have taken
into account the current investment market conditions
and the investment strategy of China Life;
• The operating assumptions used by China Life have taken
into account the past experience and the expectation of
future experience; and
• The embedded value and related results of China Life
are consistent with the methodology and assumptions
described in the Embedded Value section. On this basis,
the overall results are reasonable.
For and on behalf of
KPMG Advisory (China) Limited
Zhenhua Lu, FSA
26 March 2025
Annual Report 2024 | Significant Events
SIGNIFICANT
EVENTS
MATERIAL LITIGATIONS OR
ARBITRATIONS
During the Reporting Period, the Company was not involved
in any material litigation or arbitration.
MAJOR CONNECTED
TRANSACTIONS
Continuing Connected Transactions
During the Reporting Period, the following continuing
connected transactions were carried out by the Company
pursuant to Rule 14A.76(2) of the Rules Governing the
Listing of Securities on the HKSE (the “Listing Rules”),
including the insurance sales framework agreement
between the Company and CLP&C, the asset management
agreement between the Company and AMC, the framework
agreement between the Company and China Life Capital,
and the framework agreements entered into by China Life
AMP with the Company, CLIC and CLI, respectively. These
continuing connected transactions were subject to the
reporting, announcement and annual review requirements
but were exempt from the independent shareholders’
approval requirement under the Listing Rules. CLIC, the
controlling shareholder of the Company, holds 60% of the
equity interest in CLP&C and 100% of the equity interest
in CLI and China Life Capital. Therefore, each of CLIC,
CLP&C, CLI and China Life Capital constitutes a connected
person of the Company. AMC is held as to 60% and 40%
by the Company and CLIC, respectively, and is therefore
a connected subsidiary of the Company. China Life AMP
is a subsidiary of AMC, and is therefore also a connected
subsidiary of the Company.
During the Reporting Period, the continuing connected
transaction carried out by the Company that was subject to
the reporting, announcement, annual review and independent
shareholders’ approval requirements under Chapter 14A of
the Listing Rules included the agreement for entrusted
investment and management and operating services with
respect to alternative investments with insurance funds
between the Company and CLI. Such agreement and
the transactions thereunder have been approved by the
independent shareholders of the Company.
33
Annual Report 2024 | Significant Events
4
The 2025-2027 policy management agreement renewed by the Company and CLIC was subject to the reporting, announcement and annual review
requirements but was exempt from the independent shareholders’ approval requirement under Chapter 14A of the Listing Rules.
During the Reporting Period, the Company also carried out
certain continuing connected transactions, including the
policy management agreement between the Company and
CLIC4, and the asset management agreement between
CLIC and AMC, which were exempt from the reporting,
announcement, annual review and independent shareholders’
approval requirements under Chapter 14A of the Listing
Rules.
The Company has complied with the disclosure requirements
under Chapter 14A of the Listing Rules in respect of the
above continuing connected transactions. When conducting
the above continuing connected transactions during the
Reporting Period, the Company has followed the pricing
policies and guidelines formulated at the time when such
transactions were entered into.
Policy Management Agreement
The Company and CLIC entered into the 2022-2024 policy
management agreement on 31 December 2021, with a term
from 1 January 2022 to 31 December 2024. Pursuant to
the agreement, the Company accepted CLIC’s entrustment
to provide policy administration services relating to the
non-transferred policies. The Company acted as a service
provider under the agreement and did not acquire any
rights or assume any obligations as an insurer under the
non-transferred policies. The calculation method of the
service fee equaled to, for each annual payment period,
the sum of (1) the number of non-transferred policies in
force as of the last day of the period, multiplied by RMB14;
and (2) 2.5% of the actual premiums in respect of the
non-transferred policies collected during the period. The
annual cap in respect of the service fee paid by CLIC to the
Company for each of the three years ended 31 December
2024 was RMB491 million. The Company and CLIC entered
into the 2025-2027 policy management agreement on 31
December 2024, with a term from 1 January 2025 to 31
December 2027. Pursuant to the agreement, the Company
will continue to accept CLIC’s entrustment to provide policy
administration services relating to non-transferred policies.
The annual cap in respect of the service fee to be paid by
CLIC to the Company for each of the three years ending 31
December 2027 is RMB503 million.
For the year ended 31 December 2024, the service fee paid
by CLIC to the Company amounted to RMB457.21 million.
Insurance Sales Framework Agreement
The Company and CLP&C entered into the 2021 insurance
sales framework agreement on 20 February 2021, with a
term of two years from 8 March 2021 to 7 March 2023,
which could be automatically extended for one year to 7
March 2024. Pursuant to the agreement, CLP&C entrusted
the Company to act as an agent to sell selected insurance
products within the authorised regions, and paid an agency
service fee to the Company in consideration of the services
provided. The Company and CLP&C entered into the 2024
insurance sales framework agreement on 23 February 2024,
with a term of three years from 8 March 2024 to 7 March
2027. Pursuant to the agreement, CLP&C will continue to
entrust the Company to act as an agent to sell selected
insurance products within the authorised regions, and pay
an agency service fee to the Company in consideration
of the services provided. The agency service fee shall be
calculated by the parties at a certain percentage of the
insurance premiums actually earned from the insurance
agency business. The annual caps for the three years ending
31 December 2026 are RMB2,620 million, RMB2,840 million
and RMB3,110 million, respectively.
For the year ended 31 December 2024, CLP&C paid the
Company an agency service fee of RMB1,730.00 million.
Asset Management Agreements
Asset Management Agreement between the Company
and AMC
The Company and AMC entered into the 2023-2025 asset
management agreement on 1 January 2023, with a term
from 1 January 2023 to 31 December 2025. Pursuant to the
2023-2025 asset management agreement, AMC agreed to
invest and manage assets entrusted to it by the Company,
on a discretionary basis, within the scope granted by the
Company and in accordance with the requirements of
applicable laws and regulations, regulatory requirements
and the investment guidelines given by the Company. In
consideration of AMC’s services in respect of investing and
managing various categories of assets entrusted to it by the
Company under the agreement, the Company agreed to pay
AMC a service fee, including a fixed investment management
service fee and a variable management service fee. The fixed
investment management service fee is determined based on
the type of investment products and the size of assets under
management, and the variable management service fee is
determined based on the Company’s appraisal of AMC’s
investment performance with reference to the standards set
out in the investment guidelines. The annual caps for the
three years ending 31 December 2025 are RMB4,000 million,
RMB5,000 million and RMB6,000 million, respectively.
For the year ended 31 December 2024, the Company paid
AMC a service fee of RMB3,701.04 million.
34
Annual Report 2024 | Significant Events
Asset Management Agreement between CLIC and AMC
CLIC and AMC entered into the 2023-2025 asset management
agreement on 29 December 2022, with a term from 1
January 2023 to 31 December 2025. Pursuant to the 2023-
2025 asset management agreement, AMC agreed to invest
and manage assets entrusted to it by CLIC, on a discretionary
basis, subject to the investment guidelines and instructions
given by CLIC. In consideration of AMC’s services in respect
of investing and managing assets entrusted to it by CLIC
under the agreement, CLIC agreed to pay AMC a service
fee, including a basic service fee and a variable performance-
based management fee. The basic service fee is determined
based on the type of investment products and the size of
assets under management, and the variable performance-
based management fee is determined based on CLIC’s
appraisal of AMC’s investment performance with reference
to the standards set out in the investment guidelines. The
annual cap for each of the three years ending 31 December
2025 is RMB500 million.
For the year ended 31 December 2024, CLIC paid AMC a
service fee of RMB110.24 million.
Agreement for Entrusted Investment and Management
and Operating Services with respect to Alternative
Investments with Insurance Funds between the
Company and CLI
As approved by the 2022 Annual General Meeting of the
Company, the Company and CLI entered into the 2023-2025
agreement for entrusted investment and management and
operating services with respect to alternative investments
with insurance funds (the “2023-2025 Alternative Investment
Agreement”) on 30 June 2023. The 2023-2025 Alternative
Investment Agreement is for a term from 1 July 2023 to
31 December 2024, and can be automatically renewed for
one year. Pursuant to the 2023-2025 Alternative Investment
Agreement, CLI will invest and manage assets entrusted
to it by the Company, on a discretionary basis, within
the scope of utilisation of insurance funds as specified
by the regulatory authorities and in accordance with the
requirements of applicable laws and regulations and the
investment guidelines of the Company, and the Company
will pay CLI the investment management service fee,
product management fee, real estate operation management
service fee and performance reward in respect of the
investment and management services provided by CLI
to the Company. The entrusted assets under the 2023-
2025 Alternative Investment Agreement include insurance
asset management products, financial products, equity/real
estate funds and public REITs products (which are mainly
conducted by way of strategic fund and restricted to the
participation in strategic placement). In addition, CLI will
provide the operating services to the Company with respect
to the equity/real estate funds invested by the Company at
its own discretion and entrusted by it to CLI for operation and
management, and the Company will pay CLI the entrusted
operation fee in this regard. For the three years ending
31 December 2025, the annual caps on the contractual
amount of assets newly entrusted by the Company to CLI
for investment and management are RMB120,000 million (or
its equivalent in foreign currency), RMB140,000 million (or
its equivalent in foreign currency) and RMB150,000 million
(or its equivalent in foreign currency), respectively, and the
annual caps on the fees for the investment and management
services payable by the Company to CLI (including the
investment management service fee, product management
fee, real estate operation management service fee and
performance reward) and the entrusted operation fee in
relation to the operating services are RMB1,500 million (or
its equivalent in foreign currency), RMB1,800 million (or its
equivalent in foreign currency) and RMB2,200 million (or its
equivalent in foreign currency), respectively.
For the year ended 31 December 2024, the fees for the
investment and management services (including the
investment management service fee, product management
fee, real estate operation management service fee and
performance reward) and the entrusted operation fee in
relation to the operating services paid by the Company to
CLI amounted to RMB729.20 million, and the contractual
amount of assets newly entrusted by the Company to CLI
for investment and management was RMB64,956.42 million.
Cooperation Framework Agreement for Investment
Management with Insurance Funds between the
Company and China Life Capital
The Company and China Life Capital entered into the 2023-
2025 framework agreement on 28 December 2022, with a
term from 1 January 2023 to 31 December 2025. Pursuant
to the agreement, the Company will subscribe in the capacity
of the limited partner for the fund products of which China
Life Capital or any of its subsidiaries serves (individually
and jointly with third parties) as the general partner, and/
or the fund products of which China Life Capital serves as
the manager (including the fund manager and co-manager).
For each of the three years ending 31 December 2025,
the annual cap for the subscription by the Company in the
capacity of the limited partner of the fund products of which
China Life Capital or any of its subsidiaries serves as the
general partner is RMB5,000 million, and the annual cap
for the management fee charged by China Life Capital as
the general partner or the manager of the fund products is
RMB500 million.
For the year ended 31 December 2024, the amount of
subscription by the Company in the capacity of the limited
partner of the fund products of which China Life Capital or
any of its subsidiaries serves as the general partner was
RMB4,900.00 million, and the management fee charged by
China Life Capital as the general partner or the manager of
the fund products was RMB149.53 million.
35
Annual Report 2024 | Significant Events
Framework Agreements with China Life AMP
Framework Agreement between the Company and
China Life AMP
The Company and China Life AMP entered into the 2023-
2025 framework agreement on 30 December 2022, with a
term of three years from 1 January 2023 to 31 December
2025. Pursuant to the agreement, the Company and China
Life AMP will conduct certain daily transactions, including
the subscription and redemption of fund products and private
asset management. Pricing of the transactions under the
agreement shall be determined by the parties through arm’s
length negotiations with reference to industry practices.
For each of the three years ending 31 December 2025,
the annual cap of the subscription price and corresponding
subscription fee for the subscription of fund products is
RMB20,000 million, the annual cap of the redemption price
and corresponding redemption fee for the redemption of
fund products is RMB20,000 million, and the annual cap of
the management fee payable by the Company for the private
asset management is RMB700 million.
For the year ended 31 December 2024, the subscription price
and corresponding subscription fee for the subscription of
fund products were RMB10,926.13 million, the redemption
price and corresponding redemption fee for the redemption
of fund products were RMB10,824.39 million, and the
management fee paid by the Company for the private asset
management was RMB62.65 million.
Framework Agreement between CLIC and China Life
AMP
CLIC and China Life AMP entered into the 2023-2025
framework agreement on 9 December 2022, with a term
of three years from 1 January 2023 to 31 December 2025.
Pursuant to the agreement, CLIC will subscribe for or redeem
the fund units of the funds managed by China Life AMP, and
pay the relevant fees. Pricing of the transactions under the
agreement shall be determined by the parties through arm’s
length negotiations with reference to industry practices.
For each of the three years ending 31 December 2025,
the annual cap of the subscription price and corresponding
subscription fee for the subscription of fund products is
RMB2,000 million, and the annual cap of the redemption
price and corresponding redemption fee for the redemption
of fund products is RMB2,000 million.
For the year ended 31 December 2024, there was no relevant
transaction between CLIC and China Life AMP.
Framework Agreement between CLI and China Life
AMP
CLI and China Life AMP entered into the 2023-2025
framework agreement on 29 December 2022, with a term
of three years from 1 January 2023 to 31 December 2025.
Pursuant to the agreement, CLI and its subsidiaries will
conduct certain daily transactions with China Life AMP,
including the subscription and redemption of fund products
and private asset management. Pricing of the transactions
under the agreement shall be determined by the parties
through arm’s length negotiations with reference to
industry practices. For each of the three years ending 31
December 2025, the annual cap of the subscription price
and corresponding subscription fee for the subscription of
fund products is RMB2,000 million, the annual cap of the
redemption price and corresponding redemption fee for the
redemption of fund products is RMB2,000 million, and the
annual cap of the management fee payable by CLI and its
subsidiaries for the private asset management is RMB20
million.
For the year ended 31 December 2024, the subscription
price and corresponding subscription fee for the subscription
of fund products were RMB140.00 million, the redemption
price and corresponding redemption fee for the redemption
of fund products were RMB349.61 million, and the
management fee paid by CLI and its subsidiaries for the
private asset management was RMB0 million.
Confirmation by Auditor
The Board has received a comfort letter from the auditor
of the Company with respect to the above continuing
connected transactions which were subject to the reporting,
announcement and/or independent shareholders’ approval
requirements, and the letter stated that during the Reporting
Period:
•
nothing has come to the auditors’ attention that
causes them to believe that the disclosed continuing
connected transactions have not been approved by
the Company’s Board of Directors;
•
for transactions involving the provision of goods or
services by the Company, nothing has come to the
auditors’ attention that causes them to believe that
the transactions were not, in all material respects, in
accordance with the pricing policies of the Company;
•
nothing has come to the auditors’ attention that
causes them to believe that the transactions were not
entered into, in all material respects, in accordance
with the relevant agreements governing such
transactions; and
•
nothing has come to the auditors’ attention that
causes them to believe that the amounts of the
continuing connected transactions have exceeded the
total amount of the annual caps set by the Company.
36
Annual Report 2024 | Significant Events
Confirmation by Independent Directors
The Company’s Independent Directors have reviewed
the above continuing connected transactions which were
subject to the reporting, announcement and/or independent
shareholders’ approval requirements, and confirmed that:
•
the transactions were entered into in the ordinary
and usual course of business of the Company;
•
the transactions were conducted on normal
commercial terms;
•
the transactions were entered into in accordance
with the agreements governing those continuing
connected transactions, and the terms are fair and
reasonable and in the interests of shareholders of
the Company as a whole; and
•
the amounts of the above transactions have not
exceeded the relevant annual caps.
Other Major Connected Transactions
Capital Injection to China Life Qihang Phase I
(Tianjin) Equity Investment Fund Partnership
(Limited Partnership)
As approved by the thirty-seventh meeting of the seventh
session of the Board of Directors of the Company, the
Company (as the limited partner) entered into a supplemental
agreement to a partnership agreement with China Life
Properties Investment Management Company Limited
(“China Life Properties”, as the general partner) on 6 June
2024, to increase its capital contribution to China Life
Qihang Phase I (Tianjin) Equity Investment Fund Partnership
(Limited Partnership) (the “Partnership”) and to extend the
term of the Partnership from six years to ten years. Upon
completion of the capital injection by the Company, the total
capital contribution by all partners of the Partnership will be
increased from RMB9,001,000,000 to RMB13,901,000,000,
of which the capital contribution by the Company will be
increased from RMB9,000,000,000 to RMB13,900,000,000.
Of the Company’s additional capital contribution, it is
expected that not more than RMB3,100,000,000 will be
applied for the acquisition of 49.895% equity interest in
and relevant debts of Beijing Xingtai Tonggang Real Estate
Co., Ltd. (the “Project Company”). The Project Company is
mainly responsible for the development and operation of
Project INDIGO II, a flagship commercial complex located
in Dawangjing Business Circle, Beijing. Upon completion
of the acquisition, the Project Company will not become a
subsidiary of the Company or the Partnership.
China Life Properties is an indirect wholly-owned subsidiary
of CLIC, and therefore a connected person of the Company.
The above transaction constituted a one-off connected
transaction of the Company that was subject to the reporting
and announcement requirements but was exempt from the
independent shareholders’ approval requirement under Rule
14A.76(2) of the Listing Rules.
The Company has complied with the disclosure requirement
under Chapter 14A of the Listing Rules in respect of the
above one-off connected transaction.
Statement on Claims, Debt Transactions and
Guarantees etc. of a Non-operating Nature with
Related Parties
During the Reporting Period, the Company was not involved
in claims, debt transactions or guarantees of a non-operating
nature with related parties.
MATERIAL CONTRACTS AND THEIR
PERFORMANCE
During the Reporting Period, the Company neither acted as
trustee, contractor or lessee of other companies’ assets,
nor entrusted, contracted or leased its assets to other
companies, the profit or loss from which accounted for
10% or more of the Company’s profits for the Reporting
Period, nor were there any such matters that occurred in
previous periods but subsisted during the Reporting Period.
During the Reporting Period, China Life Insurance Company
Limited neither gave external guarantees nor provided
guarantees to its holding subsidiaries. As at the end of the
Reporting Period, the external guarantee balance of the
holding subsidiaries of the Company was RMB296 million5.
5
The guarantee occurred before the company became a holding subsidiary of the Company in 2023, and did not involve the provision of guarantee for the
Company’s shareholders, effective controller or their related parties.
37
Annual Report 2024 | Significant Events
Entrusted investment management during the Reporting
Period or any entrusted investment management occurred
in previous periods but subsisted during the Reporting
Period: Investment is one of the principal businesses of
the Company. The Company mainly adopts the mode of
entrusted investment for management of its investment
assets, and has established a diversified framework of
entrusted investment management with China Life’s internal
managers playing the key role and the external managers
offering effective supports. The internal managers include
AMC and its subsidiaries, and CLI and its subsidiaries. The
external managers comprise both domestic and overseas
managers, including fund companies, securities companies
and other professional investment management institutions.
The Company selected different investment managers based
on the purpose of allocation of various types of investments,
their risk features and the expertise of different managers,
so as to establish a great variety of investment portfolios
and improve the efficiency of insurance fund utilisation. The
Company entered into entrusted investment management
agreements or asset management contracts with all
managers and supervised the managers’ daily investment
performance through the measures such as investment
guidelines, asset custody and performance appraisals. The
Company also adopted risk control measures in respect of
specific investments based on the characteristics of different
managers and investment products.
Except as otherwise disclosed in this report, the Company
had no other material contracts during the Reporting Period.
UNDERTAKINGS MADE BY
THE PARTIES INCLUDING
THE COMPANY’S EFFECTIVE
CONTROLLER, SHAREHOLDERS,
RELATED PARTIES, ACQUIRERS AND
THE COMPANY WHICH ARE EITHER
GIVEN OR EFFECTIVE DURING THE
REPORTING PERIOD
Prior to the listing of the Company’s A Shares (30 November
2006), land use rights were injected by CLIC into the
Company during its reorganisation. Out of these, four pieces
of land (with a total area of 10,421.12 square meters) had
not had its formalities in relation to the change of ownership
completed. Further, out of the properties injected into the
Company, there were six properties (with a gross floor
area of 8,639.76 square meters) in respect of which the
formalities in relation to the change of ownership had not
been completed. CLIC undertook to assist the Company in
completing the above-mentioned formalities within one year
of the date of listing of the Company’s A Shares, and in the
event that such formalities could not be completed within
such period, CLIC would bear any potential losses to the
Company due to the defective ownership.
CLIC strictly followed these commitments. As at the end of
the Reporting Period, save for the two properties and related
land of the Company’s Shenzhen Branch, the ownership
registration formalities of which had not been completed
due to historical reasons, all other formalities in relation
to the change of land and property ownership had been
completed. The Shenzhen Branch of the Company continues
to use such properties and land, and no other parties have
questioned or hindered the use of such properties and land
by the Company.
The Company’s Shenzhen Branch and the other co-owners
of the properties have issued a letter to the governing
department of the original owner of the properties in
respect of the confirmation of ownership of the properties,
requesting it to report the ownership issue to the State-
owned Assets Supervision and Administration Commission
of the State Council (“SASAC”), and requesting the SASAC
to confirm the respective shares of each co-owner in the
properties and to issue written documents in this regard to
the department of land and resources of Shenzhen, so as
to assist the Company and the other co-owners to complete
the formalities in relation to the division of ownership of
the properties.
38
Annual Report 2024 | Significant Events
Given that the change of ownership of the above two
properties and related land use rights were directed by the
co-owners, and all formalities in relation to the change of
ownership were proceeded slowly due to reasons such as
issues rooted in history and government approvals, CLIC,
the controlling shareholder of the Company, made further
commitment as follows: CLIC will assist the Company
in completing, and urge the co-owners to complete, the
formalities in relation to the change of ownership in respect
of the above two properties and related land use rights as
soon as possible. If the formalities cannot be completed
due to the reasons of the co-owners, CLIC will take any
other legally practicable measures to resolve the issue and
will bear any potential losses suffered by the Company as
a result of the defective ownership.
ALLEGED VIOLATION OF LAWS
AND REGULATIONS BY, PENALTIES
IMPOSED ON AND RECTIFICATION
OF THE COMPANY AND ITS
CONTROLLING SHAREHOLDERS,
EFFECTIVE CONTROLLER,
DIRECTORS, SUPERVISORS OR
SENIOR MANAGEMENT
During the Reporting Period, the Company was not
investigated for suspected crimes according to law, and none
of its controlling shareholders, effective controller, Directors,
Supervisors and senior management were subject to any
compulsory measures for suspected crimes according to
law. The Company or its controlling shareholders, effective
controller, Directors, Supervisors and senior management
were not subject to any criminal punishment, investigation
by the CSRC for alleged violation of laws and regulations,
administrative penalty by the CSRC, or material administrative
penalty by other competent authorities, nor were they
detained by the disciplinary inspection and supervision
authorities for alleged serious violation of disciplines or
laws or duty-related crimes which had an impact on their
performance of duties. None of the Company’s Directors,
Supervisors and senior management were subject to any
compulsory measures by other competent authorities for
alleged violation of laws and regulations which had an impact
on their performance of duties.
RESTRICTION ON MAJOR ASSETS
The major assets of the Company are financial assets. During
the Reporting Period, there was no major asset of the
Company being seized, detained or frozen that is subject
to the disclosure requirements.
OTHER MATTERS
The “Resolution on the Issue of Capital Supplementary
Bonds by the Company” was considered and approved at the
First Extraordinary General Meeting 2023 of the Company.
As approved by the NFRA and the People’s Bank of China,
the Company issued capital supplementary bonds in a total
amount of RMB35 billion in the National Interbank Bond
Market on 24 September 2024. The issue was completed
on 26 September 2024. The proceeds from the issue of
the bonds will be used, in accordance with applicable
laws and regulatory approvals, to replenish the Company’s
supplementary tier 1 capital, enhance its solvency, create
conditions for the positive development of the Company’s
business, and support its sustained and stable growth.
39
Annual Report 2024 | Corporate Governance
40
CORPORATE
GOVERNANCE
REPORT OF THE BOARD OF DIRECTORS
Directors of the Company during the Reporting Period and up to the date of this report were as follows:
EXECUTIVE
DIRECTORS
Cai Xiliang (Chairman)
Li Mingguang
Liu Hui
Ruan Qi
Bai Tao
appointed on 4 December 2024
appointed on 17 May 2024
appointed on 17 May 2024
resigned on 30 September 2024
NON-EXECUTIVE
DIRECTORS
Wang Junhui
Hu Jin
Hu Rong
Zhuo Meijuan
appointed on 14 November 2024
appointed on 14 November 2024
retired on 27 June 2024
INDEPENDENT
DIRECTORS
Lam Chi Kuen
Zhai Haitao
Chen Jie
Lu Feng
Huang Yiping
appointed on 19 November 2024
resigned on 19 November 2024
Annual Report 2024 | Corporate Governance
41
PRINCIPAL BUSINESS
The Company is a leading life insurance company in China
and possesses an extensive distribution network comprising
exclusive agents, direct sales representatives, and dedicated
and non-dedicated agencies, providing products and services
such as individual and group life insurance, accident and
health insurance. The Company is one of the largest
institutional investors in China, and becomes one of the
largest insurance asset management companies in China
through its controlling shareholding in AMC. The Company
also has controlling shareholding in Pension Company.
BUSINESS REVIEW
Overall Operation of the Company during the
Reporting Period
For details of the overall operation of the Company during
the Reporting Period, the future development of its business
and the principal risks faced by it, please refer to the
sections headed “Management Discussion and Analysis”
and “Internal Control and Risk Management” in this annual
report. These discussions form part of the “Report of the
Board of Directors”.
Environmental and Social Responsibilities
In pursuit of its strategic goal of “building a world-class and
responsible life insurance company” in ESG, the Company
further advanced its ESG and green finance management
and practices, and established an ESG management model
with China Life’s characteristics. The Company’s MSCI ESG
rating was upgraded to A, positioning it at the forefront of
the PRC life insurance industry.
Work on Green Finance
The Company deepened its deployment of green finance by
introducing a variety of financial services aimed at supporting
the construction of an ecological civilisation, which
continuously released the effectiveness of green finance and
contributed to the comprehensive green transformation of
economic and social development. It consistently solidified
its capabilities in green insurance services, providing
diversified insurance protection plans, including accident,
medical and life insurance, to upstream and downstream
enterprises operating along the green industry chain. The
Company continuously enhanced its capabilities in green
investment management, integrating ESG considerations
throughout the investment process and actively supporting
green transportation, green transformation, green rural
industries and the “One Belt One Road” green low-carbon
construction.
Work on Low-carbon Operation
By adopting an environmentally friendly operational model
and proactively addressing climate change, the Company
took concrete actions to support the “dual carbon” strategy.
It further enhanced its capabilities in green operations and
consistently optimised carbon footprint management. In
2024, the paperless insurance application rate for individual
long-term insurance policies reached 99.9%, the utilisation
rate of individual online claims settlement was 96.7%, and
the claims settled by electronic invoices exceeded 9.09
million. The Company made steady progress in developing
its climate risk management system and launched climate
risk scenario analysis and stress testing to evaluate the
scope of potential impacts of climate risks on investments,
operations and products, thereby creating a framework for
climate risk scenario and stress test analysis.
Work on Social Responsibility
With a steadfast commitment to the “people-centric”
development philosophy and leveraging its strengths
on principal business, the Company fulfilled its social
responsibilities through actions. It focused on deepening
and refining inclusive finance, aiming to be a key provider
in the multi-tiered social security system. The Company
participated in carrying out over 200 supplementary major
medical expenses insurance programs to reduce people’s
medical expense burden. It undertook a total of 80 long-term
care insurance programs and implemented over 130 city-
customised commercial medical insurance projects, thereby
expanding the depth of inclusive insurance protection.
In response to the aging population and the demand for
diversified pension security, the Company advanced its
pension business, with the number of newly underwriting
elderly individuals reaching 140 million and the third-pillar
private pension business ranking first in the industry in
2024. The Company developed a distinctive healthcare and
senior-care services ecosystem, launching 17 residential
senior-care services projects in a total of 14 cities. Actively
engaging in social welfare practices, the Company made
continuous contributions to charitable undertakings, donating
RMB21 million to the China Life Foundation in 2024. It
encouraged its employees to take active part in volunteer
service activities to collaboratively build a better society,
boasting over 350 youth volunteer service teams and more
than 3,000 registered youth volunteers, and conducting over
600 volunteer service activities in 2024.
Specific Work on Consolidation of Achievements in
Poverty Alleviation and Rural Revitalisation Undertakings
In 2024, the Company strengthened its corporate
responsibility, coordinated its joint forces from all fronts
to offer assistance, and continued to improve its long-term
mechanism for assistance, so as to make every effort to
enhance the quality and efficiency of finance and insurance
serving rural revitalisation. The Company dispatched 1,027
cadres staying at villages for assistance, and undertook
projects in 1,445 assistance localities, an increase of 274
from the previous year. It devoted assistance funds of RMB5
million for the year and purchased over RMB31 million
agricultural products for assistance, helping farmers to
improve both production and income. The Company made
substantial efforts to develop insurance business in response
to the demands of rural residents for diversified insurance
protection and offered risk protection of RMB32 trillion for 270
million rural residents within the year. The claims payment
Annual Report 2024 | Corporate Governance
42
of RMB15,800 million were made to 4.63 million people,
which helped guard against the bottom line of poverty.
Based on the characteristics of rural residents, the Company
commenced insurance business related to rural revitalisation
and developed four new products in the rural revitalisation
series to provide multi-level insurance protections, offering
risk protection of RMB2.6 trillion for the year. The Company
learned and practiced the experience acquired from “Ten
Million Projects”, strived to make innovation in assistance
measures, and expanded the coverage of assistance, so as
to enhance the effectiveness of assistance initiatives and
facilitate rural revitalisation in all aspects.
Compliance by the Company with the Relevant
Laws and Regulations that have a Significant Impact
The Company adhered to the code of conduct of “being
trustworthy, assuming risks, emphasising on services and
being legal compliant” and promoted the compliance culture
and concepts of “being compliant on a proactive basis,
and creating value from compliance”, thereby creating the
compliance environment of “starting from the top level and
having responsibility for all to be compliant”. The Company
strictly observed and effectively implemented applicable
laws and regulations and regulatory requirements, such
as the Insurance Law, the Company Law, the Securities
Law, the “Consumer Rights Protection Law”, the “Personal
Information Protection Law”, the “Anti-Money Laundering
Law”, the “Regulations on Preventing and Dealing with
Illegal Fund-raising”, the “Provisions on the Administration of
Insurance Companies”, the “Measures for the Administration
of the Utilisation of Insurance Funds”, the “Standards
for the Corporate Governance of Banking and Insurance
Institutions”, the “Provisions on the Administration of
Solvency of Insurance Companies”, the “Measures for the
Administration of Connected Transactions of Banking and
Insurance Institutions”, the “Measures for the Administration
of Banking and Insurance Supervision and Statistics”, the
“Measures for the Administration of Operational Risks of
Banking and Insurance Institutions”, the “Measures for
the Administration of Insurance Sales”, the “Measures for
the Administration of Criminal Cases Involving Financial
Institutions” and the “Anti-insurance Fraud Measures”,
consistently improved its systems and mechanisms, and
stringently implemented the spirit and requirements of major
regulatory documents on insurance product development
and design, information disclosure, sales management,
insurance agents management, protection of consumers’
rights and interests and customers’ information, corporate
governance, fund utilisation, solvency management,
connected
transactions
management,
reinsurance
management, data governance, anti-money laundering,
criminal case management, and anti-insurance fraud, etc.,
as released by the NFRA, for the purpose of further carrying
out compliance management responsibilities at all levels and
across various lines. The Company consistently optimised
the compliance management framework of “three lines of
defense” to ensure that the three lines of defense performed
their own functions and responsibilities and collaborated
with each other, which formed a joint force in compliance
management. The Company also consolidated its foundation
in all aspects for its steady and healthy development and
firmly held on to the bottom line of the systematic risk,
which guaranteed the healthy and high-quality development
of the Company on an ongoing basis.
Relationship between the Company and its
Customers
Being customer-centric all along, the Company was
committed to offering high-quality services to customers
and provided insurance services and value-added services
for more than 600 million customers on a cumulative basis6.
The Company placed significant emphasis on the protection
of consumers’ rights and interests, embedding it as a crucial
element in its efforts to serve the Party and the overall
interests of national development, prevent and mitigate
risks, and advance high-quality development. The Company
integrated the protection of consumers’ rights and interests
throughout its entire business process, further optimised
the development of the systems and mechanisms for the
protection of consumers’ rights and interests, promoted the
effective operation of various mechanisms for the protection
of consumers’ rights and interests such as consumer
protection review, consumer information disclosure,
consumer information protection, and consumer education
and promotion, etc., with an aim of gradually standardising and
regulating the protection of consumers’ rights and interests
and advancing the implementation of a “comprehensive
consumer protection” paradigm. In 2024, the Company’s
educational and promotional activities increased by 55.4%
year on year, with the number of consumers involved rising
by 52.5% year on year.
Please also refer to the “Digitalised and Intelligent Operations
and Services” in the section headed “Management
Discussion and Analysis” in this annual report.
6
The cumulative number of customers served refers to policyholders and insured customers under all individual insurance policies underwritten by the
Company, including terminated individual insurance policies, but excluding group insurance policies and group retained business insurance policies.
Annual Report 2024 | Corporate Governance
43
Relationship between the Company and its
Employees
The Company created a harmonious labour relationship
according to law and entered into employment contracts
with its employees in a timely manner. The Company
strengthened the management of employees in all aspects
by establishing the following mechanisms: an employee
management mechanism with the characteristics of
focus on grassroots, combination of training and working
of employees, hierarchical responsibilities and unified
standards; a performance management mechanism that was
strategy-based and results-oriented, adopted hierarchical
classification, and focused on application; and a remuneration
distribution mechanism that was based on the principles of
salary determined by position, remuneration paid based
on performance, emphasis on incentives and preference
for grassroots, and was compatible with the high-quality
development requirements of the Company. The Company
also emphasised on the cultivation and development of
employees by building and optimising a “four-in-one” talent
training system targeting new employees, professional
talents, young cadres, and management cadres at all levels,
pursued classification of employees for training with an
equal emphasis on full coverage, integrated cultivation
and training throughout the growth process of cadres and
employees, and continued to focus on empowerment. The
Company attached importance to humanistic concern by
constantly improving the mechanism for communication
with employees, safeguarding the legitimate rights and
interests of employees in a practical manner and encouraging
employees to arrange vacations and annual leave in a
scientific way, with an aim to achieve work-life balance.
The Company consistently valued the rights and interests
of employees by actively promoting the construction of a
corporate democratic management system with employee
representative meetings as the fundamental form to protect
the democratic rights of employees and facilitate joint
development between employees and the Company. The
Company and its provincial branches have comprehensively
established the system of employee representative
meetings, safeguarding all meeting rights according to law
and consistently following up on the implementation of
resolutions to effectively oversee the handling of proposals.
At the first meeting of the third session of the employee
representative meeting of the Company, 79 proposals were
submitted, covering areas such as the work environment
and welfare benefits, with 78 implemented, achieving a
implementation rate of 99%. On 12 December 2024, the
Company successfully convened the first meeting of the
fourth session of the employee representative meeting and
the first meeting of the second session of the member
representative meeting in accordance with the “Trade Union
Law”, the “Constitution of the All-China Federation of Trade
Unions”, the “Regulations for the Election of Grassroot Trade
Unions” and the provisions and requirements of the higher-
level trade unions, with 205 employee representatives in
attendance. During the meetings, representatives diligently
performed their duties, listened to and reviewed the “Report
on Business Operation and Management of China Life
Insurance Company Limited”, and listened to and adopted
the “Report on Financial Position of China Life Insurance
Company Limited”, the “Report on the Solicitation and
Completion of Proposals from Employee Representatives”
and the “Report on the Amendments to and Issuance
of the ‘Measures for the Administration of Employment
of China Life Insurance Company Limited’”. A total of
44 proposals were solicited at this session of employee
representative meetings, focusing on key areas such as
business expansion, internal management and employee
care. The employee representatives offered valuable advice
for the Company’s development, which effectively leveraged
the role of employee representative meetings in corporate
democratic management.
For details regarding the Company’s employees (including the
number of employees, professional composition, education
levels, employee diversity, remuneration policy and training
plans), please refer to the section headed “Directors,
Supervisors, Senior Management and Employees” in this
annual report.
For information during the Reporting Period such as the
environmental and social responsibilities of the Company, the
relationship between the Company and its customers, and
the relationship between the Company and its employees,
please also refer to the full text of the 2024 Environmental,
Social and Governance & Social Responsibility Report
separately disclosed by the Company on the website of the
SSE (www.sse.com.cn) and the HKExnews website of Hong
Kong Exchanges and Clearing Limited (www.hkexnews.hk)
simultaneously.
FORMULATION AND IMPLEMENTATION OF
PROFIT DISTRIBUTION POLICY
In accordance with Article 217 of the Articles of
Association, the Basic Principles of the Company’s
Profit Distribution Policy are as follows:
•
The Company shall take the investment return for
investors into full account and allocate the required
percentage of the Company’s realised distributable
profits to shareholders as dividends each year;
•
The Company shall maintain a sustainable and steady
profit distribution policy and at the same time take
into consideration the Company’s long-term interest,
general interest of all the shareholders and the
sustainable development of the Company;
•
The Company shall give priority to cash dividends as
its profit distribution manner.
Annual Report 2024 | Corporate Governance
44
In accordance with Article 218 of the Articles of
Association, the Company’s Profit Distribution
Policy is as follows:
•
Profit distribution modes: The Company may
distribute dividends in the form of cash or shares
or a combination of cash and shares. If practicable,
the Company may distribute interim dividends. The
Company’s dividends shall not bear interest, save
in the case where the Company fails to distribute
the dividends to the shareholders on the day when
dividends were due to have been distributed;
•
Conditions for and percentage of distribution of
cash dividends: If the Company makes profits in a
given year and the cumulative undistributed profit is
positive, the Company shall distribute dividends in the
form of cash and the cumulative profits distributed in
cash over the past three years by the Company shall
be no less than thirty percent (30%) of the average
annual distributable profits in recent three years;
•
Conditions for distribution of share dividends: If
the Company’s operation is sound and the Board
of Directors is of the opinion that share dividends
distribution is in the interest of all the Company’s
shareholders since the Company’s stock price does
not match the Company’s share capital, the Company
may propose a share dividends distribution plan if
the conditions for cash dividends listed above are
satisfied.
In addition, the Company’s profit distribution is required
to comply with relevant regulatory requirements. If the
Company’s core solvency ratio or comprehensive solvency
ratio does not meet the minimum requirements, the
regulatory authorities may adopt regulatory measures
against the Company due to its failure to meet the minimum
requirements, which may restrict the Company’s ability to
distribute dividends to its shareholders.
In accordance with Article 219 of the Articles of
Association, the Procedures of Reviewing the
Company’s Profit Distribution Proposal are as
follows:
The Company’s profit distribution proposal shall be reviewed
by the Board of Directors. The Board of Directors shall have
a sufficient discussion of the reasonableness of the profit
distribution proposal. After a special resolution regarding the
proposal is reached and independent opinions have been
given by the Company’s Independent Directors, the proposal
shall be submitted to the Company’s general meeting for
approval. In reviewing the profit distribution proposal, the
Company shall provide online voting mechanism to the
shareholders. When deliberating on specific cash dividend
proposal by the Company’s general meeting, the Company
shall make active communication with shareholders,
especially small- and medium-sized shareholders, through
various channels. The Company shall also fully solicit
opinions and appeals from shareholders, and give timely
reply to concerns of small- and medium-sized shareholders.
Profit Distribution Plan and Public Reserves
Capitalisation Plan for the Year 2024 and the
Distribution of Cash Dividends for the Recent Three
Fiscal Years
According to the 2024 interim profit distribution plan approved
at the First Extraordinary General Meeting 2024 held on 30
October 2024, based on 28,264,705,000 shares in issue,
the Company has distributed 2024 interim cash dividends
of RMB0.20 per share (inclusive of tax) to all shareholders
of the Company, totalling approximately RMB5,653 million.
In accordance with the profit distribution plan for the year
2024 approved by the Board on 26 March 2025, based on
28,264,705,000 shares in issue, the Company proposed
to distribute 2024 final cash dividends of RMB0.45 per
share (inclusive of tax) to all shareholders of the Company,
totalling approximately RMB12,719 million. The foregoing
profit distribution plan is subject to the approval by the
2024 Annual General Meeting. If the Company’s profit
distribution plan for the year 2024 is approved, together with
the 2024 interim cash dividends distributed by the Company,
annual cash dividends in 2024 will be RMB0.65 per share
(inclusive of tax), totalling approximately RMB18,372 million,
representing 17% of the net profit attributable to equity
holders of the Company in the consolidated statements.
Dividends payable to domestic shareholders are declared,
valued and paid in RMB. Dividends payable to shareholders
of the Company’s overseas-listed foreign shares are declared
and valued in RMB and paid in the currency of the jurisdiction
in which the overseas-listed foreign shares are listed (if the
Company is listed in more than one jurisdiction, dividends
shall be paid in the currency of the Company’s principal
jurisdiction of listing as determined by the Board). The
Company shall pay dividends to shareholders of overseas-
listed foreign shares in conformity with the PRC regulations
on foreign exchange control. If no such regulations are in
place, the applicable exchange rate is the average closing
rate published by the People’s Bank of China one week
before the date of declaration of the distribution of dividends.
No public reserve capitalisation is provided for in the profit
distribution plan for the year.
The profit distribution policy of the Company complied
with the Articles of Association and the examination and
approval procedures of the Company. It clearly defined
the dividend distribution standards and percentages, with
comprehensive decision-making procedures and system.
Small- and medium-sized shareholders of the Company
have sufficient opportunities to express their opinions and
appeals, and their legitimate rights have been well protected.
The Independent Directors diligently considered the profit
distribution policy and expressed their independent opinions
in this regard.
Annual Report 2024 | Corporate Governance
45
The distribution of cash dividends for the recent three fiscal
years:
RMB million
Cumulative amount of cash dividends
for the recent three fiscal years
(inclusive of tax) (1)
44,376
Cumulative amount of repurchases and
cancellation for the recent three fiscal
years (2)
–
Cumulative amount of cash dividends and
repurchases and cancellations for the
recent three fiscal years (3)=(1)+(2)
44,376
Average annual net profit attributable to
equity holders of the Company for the
recent three fiscal years (4)
53,376
Cash dividend ratio for the recent three fiscal
years (%) (5)=(3)/(4)
83
Net profit attributable to equity holders of the
Company in the consolidated statements
for the most recent fiscal year
106,935
Undistributed profits at the end of the year
in the statements of the Company for the
most recent fiscal year
357,928
DISTRIBUTABLE RESERVES
As at 31 December 2024, the distributable reserves of the
Company was RMB357,928 million.
PROPERTY, PLANT AND EQUIPMENT
Details of the movement in property, plant and equipment
of the Company are set out in Note 7 in the Notes to the
Consolidated Financial Statements in this annual report.
SHARE CAPITAL
Details of the movement in share capital of the Company
are set out in Note 32 in the Notes to the Consolidated
Financial Statements in this annual report.
MANAGEMENT CONTRACTS
No management or administration contracts for the whole
or substantial part of any business of the Company were
entered into during the Reporting Period.
PENSION PLAN
Full-time employees of the Company are covered by various
government-sponsored pension plans, under which the
employees are entitled to a monthly pension based on certain
formulae. These government agencies are responsible for
the pension liability to these employees upon retirement.
The Company contributes on a monthly basis to these
pension plans for full-time employees. All contributions made
under the government-sponsored pension plans described
above are fully attributable to employees of the Company
at the time of the payment and the Company is unable
to forfeit any amounts contributed by it to such plans.
In addition to the government-sponsored pension plans,
the Company established an employee annuity fund plan
pursuant to the relevant laws and regulations in the PRC,
whereby the Company is required to contribute to the plan
at fixed rates of the employees’ salary costs. Contributions
made by the Company under the annuity fund plan that is
forfeited in respect of those employees who resign from
their positions prior to the full vesting of the contributions
will be recorded in the public account of the annuity fund and
shall not be used to offset any contributions to be made by
the Company in the future. All funds in the public account
will be attributed to the employees whose accounts are in
normal status after the approval procedures are completed
as required. Under these plans, the Company has no legal
or constructive obligation for retirement benefit beyond the
contributions made.
INTEREST-BEARING LOANS AND OTHER
BORROWINGS
As at the end of the Reporting Period, the interest-bearing
loans and other borrowings of the Company included a bank
loan of GBP7 million with a maturity date on 16 April 2025
and a bank loan of GBP275 million with a maturity date
on 16 May 2025, both of which are fixed rate bank loans.
Interest-bearing loans and other borrowings also included
a bank loan of USD952 million with a maturity date on 22
September 2025 and a bank loan of EUR427 million with
a maturity date on 8 September 2026, both of which are
floating rate bank loans. Details of the interest-bearing loans
and other borrowings of the Company are set out in Note
15 in the Notes to the Consolidated Financial Statements
in this annual report.
CHARITABLE DONATIONS
The total amount of charitable donations made by the
Company during the Reporting Period was approximately
RMB22.50 million.
INFORMATION OF TAX DEDUCTION FOR
HOLDERS OF LISTED SECURITIES
Shareholders of the Company are taxed and/or enjoy tax
relief for the dividend income received from the Company
in accordance with the “Individual Income Tax Law of
the People’s Republic of China”, the “Enterprise Income
Tax Law of the People’s Republic of China”, and relevant
administrative rules, governmental regulations and regulatory
documents. Please refer to the announcements published by
the Company on the website of the SSE on 5 July 2024 and 7
November 2024 for the information on income tax in respect
of the dividend distributed to A Share shareholders during
the Reporting Period, and the announcements published
by the Company on the HKExnews website of Hong Kong
Exchanges and Clearing Limited on 27 June 2024 and 30
October 2024 for the information on income tax in respect
of the dividend distributed to H Share shareholders during
the Reporting Period.
Annual Report 2024 | Corporate Governance
46
PURCHASE, SALE OR REDEMPTION OF THE
COMPANY’S SECURITIES
During the Reporting Period, the Company and its subsidiaries
did not purchase, sell or redeem any of the Company’s listed
securities (including the sale of treasury shares). As at the
end of the Reporting Period, the Company did not hold any
treasury shares.
H SHARE STOCK APPRECIATION RIGHTS
No H Share stock appreciation rights of the Company were
granted or exercised in 2024. The Company will deal with
such rights and related matters in accordance with the PRC
governmental policies.
DAY-TO-DAY OPERATIONS OF THE BOARD
Details of the Board meetings and the Board’s performance
of its duties during the Reporting Period are set out in the
section headed “Report of Corporate Governance” in this
annual report.
DIRECTORS’ AND SUPERVISORS’ SERVICE
CONTRACTS
None of the Directors or Supervisors has entered into any
service contracts with the Company and its subsidiaries that
are not terminable within one year or can only be terminated
by the Company with payment of compensation (other than
statutory compensation).
INTERESTS OF DIRECTORS AND SUPERVISORS
(AND THEIR CONNECTED ENTITIES) IN
MATERIAL TRANSACTIONS, ARRANGEMENTS
OR CONTRACTS
None of the Directors or Supervisors (and their connected
entities) is or was materially interested, directly or indirectly,
in any transaction, arrangement or contract of significance
entered into by the Company or its controlling shareholders
or any of their respective subsidiaries at any time during the
Reporting Period or subsisted at the end of the Reporting
Period.
DIRECTORS’ AND SUPERVISORS’ RIGHTS TO
ACQUIRE SHARES
No arrangements to which the Company, any of its
subsidiaries or holding companies, or any subsidiary of the
Company’s holding companies is a party, and whose objects
are, or one of whose objects is, to enable Directors or
Supervisors (including their spouses and children under the
age of 18) to acquire benefits by means of the acquisition
of shares in, or debentures of, the Company or any other
body corporate, subsisted at any time during the Reporting
Period or at the end of the Reporting Period.
DISCLOSURE OF INTERESTS OF DIRECTORS,
SUPERVISORS AND THE CHIEF EXECUTIVE IN
THE SHARES OF THE COMPANY
As at the end of the Reporting Period, none of the Directors,
Supervisors and the chief executive of the Company had
any interests or short positions in the shares, underlying
shares or debentures of the Company or its associated
corporations (within the meaning of Part XV of the Securities
and Futures Ordinance (the “SFO”)) as recorded in the
register required to be kept by the Company pursuant to
Section 352 of the SFO or which had to be notified to the
Company and the HKSE pursuant to the Model Code for
Securities Transactions by Directors of Listed Issuers (the
“Model Code”) as set out in Appendix C3 to the Listing
Rules.
COMPLIANCE WITH THE CODE FOR SECURITIES
TRANSACTIONS BY DIRECTORS AND
SUPERVISORS OF THE COMPANY
The Board has established written guidelines on no less
exacting terms than the Model Code for Directors and
Supervisors of the Company in respect of their dealings
in the securities of the Company. After making specific
inquiries to all the Directors and Supervisors of the Company,
they confirmed that they had complied with the Model Code
and the Company’s own guidelines during the Reporting
Period.
PERMITTED INDEMNITY PROVISION
The Company made appropriate insurance arrangement with
respect to legal actions that might be faced by its Directors
in connection with corporate activities, and such insurance
arrangement was in force during the Reporting Period and
up to the date of this report.
PRE-EMPTIVE RIGHTS AND ARRANGEMENTS
FOR SHARE OPTIONS AND SHARE AWARDS
According to the Articles of Association and relevant PRC
laws, there is no provision for any pre-emptive rights of the
shareholders of the Company. At present, the Company
does not have any arrangements for share options or share
awards.
RESPONSIBILITY STATEMENT OF DIRECTORS
ON FINANCIAL REPORTS
The Directors are responsible for overseeing the preparation
of the financial report for each financial period which gives
a true and fair view of the Company’s financial position,
performance results and cash flows for that period. To the
best knowledge of the Directors, there was no event or
condition during the Reporting Period that might have a
material adverse effect on the continuing operation of the
Company.
Annual Report 2024 | Corporate Governance
47
BOARD’S STATEMENT ON INTERNAL CONTROL
In accordance with the requirements of the “Standard
Regulations on Corporate Internal Control”, the Board
conducted an assessment on internal control relating to the
Company’s financial reporting functions, and confirmed that
its internal control was effective as at 31 December 2024.
MAJOR CUSTOMERS
In 2024, the gross written premiums received from the
Company’s five largest customers accounted for less than
5% of the Company’s gross written premiums for the year.
There is no related party of the Company among the five
largest customers.
SUFFICIENCY OF PUBLIC FLOAT
Based on the information publicly available to the Company
and within the knowledge of the Directors as at the latest
practicable date (26 March 2025), not less than 25% of the
issued share capital of the Company (being the minimum
public float applicable to the shares of the Company) was
held in public hands.
AUDITORS
Taking into account the requirements of the Company
for audit services and in compliance with the relevant
regulations for selection and appointment of auditors, after
conducting the tender process and evaluating the results,
and as approved by the 2023 Annual General Meeting of
the Company, Ernst & Young Hua Ming LLP and Ernst &
Young (the two aforesaid auditors are collectively referred
to as “EY”) have been appointed as the PRC and overseas
auditors of the Company for the year 2024, who will hold
office until the conclusion of the 2024 Annual General
Meeting. EY served as the Company’s auditors for the first
year.
Remuneration paid by the Company to the auditors is
subject to the approval at the shareholders’ general meeting,
pursuant to which the Board is authorised to determine
the amount and make payment. Audit fees paid by the
Company to the auditors will not affect the independence
of the auditors.
Remuneration paid by the Company to EY in 2024 was as
follows:
RMB million
Service/Nature
Fees
Audit, review and agreed-upon
procedures fee
48.28
Including: Internal control audit fee
4.00
Non-audit services fee (tax services and
consultation services)
6.42
Total
54.70
PricewaterhouseCoopers
Zhong
Tian
LLP
and
PricewaterhouseCoopers, the PRC and overseas auditors
of the Company for the year 2023, had retired as the auditors
of the Company upon conclusion of the 2023 Annual General
Meeting. The Company had communicated with the auditors
originally engaged by it in connection with the change of
auditors, and such auditors did not raise any objection
against the change.
The Company is taking active actions to proceed with
the selection and appointment of its auditors for the
year 2025, and investors are advised to pay attention to
the announcements made by the Company in its listed
jurisdictions for the further development in this regard.
By Order of the Board
Cai Xiliang
Chairman
26 March 2025
Annual Report 2024 | Corporate Governance
48
REPORT OF THE BOARD OF
SUPERVISORS
Pursuant to the Company Law and the Articles of Association,
the Company has established a Board of Supervisors.
The Board of Supervisors performs the following duties
in accordance with the Company Law, the Articles of
Association and the “Procedural Rules for the Board of
Supervisors Meetings”: to examine the finances of the
Company; to monitor whether the Directors, President, Vice
Presidents and other senior management of the Company
have acted in contravention of laws, regulations, the
Articles of Association and resolutions of the shareholders’
general meetings when discharging their duties; to review
the financial information of the Company such as financial
reports, results reports and profit distribution plans to
be approved by the Board; to propose the convening of
extraordinary shareholders’ general meetings, to propose
resolutions at shareholders’ general meetings and to perform
any other duties under the laws, regulations and regulatory
rules of the Company’s listed jurisdictions.
The Board of Supervisors consists of Non-employee
Representative
Supervisors,
such
as
shareholder
representatives, and Employee Representative Supervisors,
of which the Employee Representative Supervisors shall
not be less than one-third of the Board of Supervisors.
Non-employee Representative Supervisors, such as
shareholder representatives, shall be elected and removed
by a shareholders’ general meeting while Employee
Representative Supervisors shall be elected and removed
by employees of the Company in a democratic manner.
The Board of Supervisors is accountable to the shareholders
and reports its work to the shareholders’ general meeting
according to relevant laws. It is also responsible for
appraising the Company’s operations, financial reports,
connected transactions and internal control, etc. during the
Reporting Period.
Meetings of the Board of Supervisors are convened by
the Chairman of the Board of Supervisors. According to
the Articles of Association, the Company formulated the
“Procedural Rules for the Board of Supervisors Meetings”
and established protocols for the Board of Supervisors
meetings. Board of Supervisors meetings are categorised
as regular or ad-hoc meetings in accordance with the degree
of pre-planning involved. There are at least three regular
meetings each year, mainly to adopt and review financial
reports and periodic reports, and examine the financial
condition and internal control of the Company. Ad-hoc
meetings are convened when necessary.
In 2024, the Company successfully completed the re-election
of its Board of Supervisors, with the eighth session of the
Board of Supervisors of the Company being elected at the
2023 Annual General Meeting and the twelfth extraordinary
meeting of the third session of the employee representative
meeting of the Company. Currently, the eighth session of
the Board of Supervisors comprises Mr. Cao Weiqing, an
Employee Representative Supervisor, Mr. Gu Haishan, a
Non-employee Representative Supervisor, Ms. Ye Yinglan
and Mr. Dong Haifeng, both being Employee Representative
Supervisors, with Mr. Cao Weiqing acting as the Chairman
of the Board of Supervisors. In June 2024, Mr. Niu Kailong
retired as a Supervisor of the Company due to the expiration of
the term of the seventh session of the Board of Supervisors.
In October 2024, Mr. Lai Jun resigned from his position
as a Supervisor of the Company due to the reason of age.
MEETINGS AND ATTENDANCE
During the Reporting Period, seven meetings were held
by the Board of Supervisors of the Company. Attendance
records of individual Supervisors are as follows:
Name of
Supervisor
Number of
meetings
attended in
person/Number
of meetings
required to
attend
Number of
meetings
attended by
proxies/Number
of meetings
required to
attend
Cao Weiqing
7/7
0/7
Gu Haishan
2/2
0/2
Ye Yinglan
6/7
1/7
Dong Haifeng
4/4
0/4
During the Reporting Period, attendance records of the
resigned and retired Supervisors at the meetings of the
Board of Supervisors are as follows:
Name of
Supervisor
Number of
meetings
attended in
person/Number
of meetings
required to
attend
Number of
meetings
attended by
proxies/Number
of meetings
required to
attend
Niu Kailong
3/3
0/3
Lai Jun
5/5
0/5
Notes:
1.
The number of meetings attended in person includes meetings attended
on-site and by way of telephone or video conference.
2.
Supervisors who were unable to attend any meeting of the Board of
Supervisors authorised other Supervisors to attend and vote at the
meeting on their behalf.
Annual Report 2024 | Corporate Governance
49
ACTIVITIES OF THE BOARD OF SUPERVISORS
Convening and attending meetings of the Board of
Supervisors and diligently discharging their duties. In 2024,
pursuant to the regulatory requirements of the jurisdictions
where the Company is listed, the Articles of Association
and the “Procedural Rules for the Board of Supervisors
Meetings” of the Company, the Board of Supervisors held
seven meetings in total, during which 38 proposals were
considered and four reports were debriefed. All Supervisors
earnestly expressed their views, actively participated in
discussions and diligently discharged their duties, thereby
providing valuable advice for the business development of
the Company. The matters considered and supervised by
the Board of Supervisors included the Company’s periodic
reports and financial reports, annual and interim profit
distribution plans, remuneration of senior management, anti-
money laundering work, consumer rights protection work,
connected transactions, audit reports of senior management,
special audit reports, internal control and risk management.
Attending and participating in corporate governance meetings
and actively exercising their supervisory role. In 2024, the
Board of Supervisors attended the 2023 Annual General
Meeting and the First Extraordinary General Meeting 2024
of the Company, and participated in the meetings of the
Board. All members of the Board of Supervisors participated
in the meetings of the Audit Committee, the Nomination
and Remuneration Committee, the Risk Management and
Consumer Rights Protection Committee, the Strategy and
Assets and Liabilities Management Committee, and the
Connected Transactions Control Committee, respectively,
in accordance with the work allocation among Supervisors
determined by the Board of Supervisors. By attending these
meetings, all Supervisors diligently discharged their duties,
oversaw the procedures for convening meetings, carefully
listened to the matters considered at the meetings, and
participated in discussions when necessary, thus proactively
pushing forward the further enhancement of corporate
governance.
Keeping abreast of the business operations of the Company
on a regular basis and paying attention to any major solvency
risks that might arise in the course of its business operations.
Members of the Board of Supervisors kept abreast of the
business operations of the Company on a regular basis by
reviewing the financial reports of the Company, supervised its
financial operation and paid attention to any major solvency
risks that might arise in the course of its business operations.
Through their participation in meetings of the Board and the
specialised Board committees, all Supervisors understood
the management of solvency risks of the Company and
performed their supervisory function with respect to the
decision-making of the Company on solvency risks.
Supervising the performance of duties by the Board and
senior management in reputational risk management.
Members of the Board of Supervisors listened to an annual
reputational risk management report prepared by the senior
management through participation in the meetings of the
Board and the Risk Management and Consumer Rights
Protection Committee, so as to supervise the performance of
duties by the Board and senior management in reputational
risk management.
Organising the evaluations of the performance of duties
by Directors and Supervisors. The Board of Supervisors
commenced the evaluations of the performance of duties
by Directors and Supervisors in accordance with the
“Measures for the Evaluation of the Performance of Duties
by Directors and Supervisors” of the Company. Based on the
performance of duties by Directors and Supervisors in 2024,
the members of the Board of Supervisors evaluated and
scored each of the Directors of the Company by reference
to the information regarding the performance of duties by
Directors obtained during their participation of meetings
of the Board and various specialised Board committees,
and evaluated and scored each of the Supervisors of the
Company through a combination of self-assessment by and
mutual assessment among Supervisors, and eventually
formed evaluation opinions on individual Directors and
Supervisors, which therefore improved the mechanism
for the supervision and evaluation of duty performance of
Directors and Supervisors. The final evaluation by the Board
of Supervisors concluded that all members of both the
Board and the Board of Supervisors of the Company were
competent in their performance of duties in 2024.
Proactively engaging in investigation and research, examining
and gaining insights into the Company’s business operations
and development. In 2024, according to the work plan of the
Board of Supervisors of the Company, the members of the
Board of Supervisors conducted investigation and research on
Xiamen Branch and Longyan Branch in Fujian Province with
respect to, among others, the implementation of the spirits of
the third plenary session of the 20th CPC Central Committee
and the central inspection and rectification, business
development and market benchmarking, consumer rights
protection, and risk prevention and control, communicated
in person with relevant branch representatives for exchange
of ideas, and actively listened to the relevant advice and
recommendations, which provided support for the Board of
Supervisors to gain a deeper understanding of the business
development of branches, and enhance its performance of
duties and decision-making in a scientific manner.
Annual Report 2024 | Corporate Governance
50
Attending training courses and constantly enhancing
performance of duties by the Supervisors. In 2024, the
members of the Board of Supervisors further developed
and refreshed their knowledge reserve by actively attending
various special training courses organised by the securities
exchanges of the Company’s listed jurisdictions, listed
companies associations and the Company itself, so as to
enhance their performance of duties. All members of the
Board of Supervisors attended the on-site training program
on anti-money laundering and a special training course for
directors and supervisors in 2024 as organised by the Listed
Companies Association of Beijing (the “LCAB”).
INDEPENDENT OPINION OF THE BOARD OF
SUPERVISORS ON CERTAIN MATTERS
During the Reporting Period, the Board of Supervisors of
the Company performed its supervisory duties in a diligent
manner in accordance with the requirements of the Company
Law, the Articles of Association and the “Procedural Rules
for the Board of Supervisors Meetings”. The Board of
Supervisors had no objection in respect of the matters
under its supervision during the Reporting Period.
The Company’s operations in compliance with law. During
the Reporting Period, the Company operated in compliance
with the law. Its operations and decision-making procedures
were in compliance with the Company Law and the Articles
of Association. All Directors and senior management of the
Company observed the principles of diligence and integrity,
and performed their duties conscientiously. The Board of
Supervisors is not aware of any of them having violated any
law, regulation, or any provision in the Articles of Association
or harmed the interests of the Company in the course of
discharging their duties.
The authenticity of the financial report. The Company’s
annual financial report truly reflected its financial position
and operating results. Ernst & Young Hua Ming LLP and
Ernst & Young have performed audits and issued standard
and unqualified auditors’ reports in respect of the financial
statements for the year 2024 in accordance with the China
Standards on Auditing of PRC Certified Public Accountants
and the International Standards on Auditing, respectively.
Acquisition and sale of assets. During the Reporting Period,
the prices for acquisition and sale of assets by the Company
were fair and reasonable. The Board of Supervisors is not
aware of any insider trading, any acts harming the interests
of shareholders or incurring any loss to the Company’s
assets.
Connected transactions. During the Reporting Period, the
connected transactions of the Company were on commercial
terms. The Board of Supervisors is not aware of any acts
harming the interests of the Company.
Internal control system and self-evaluation report on internal
control. During the Reporting Period, the Company continued
to improve its internal control system, and enhance the
effectiveness of such system. The Board of Supervisors
of the Company reviewed the self-evaluation report on the
Company’s internal control and did not raise any objection
against the self-evaluation report of the Board regarding the
Company’s internal control.
Information disclosure. The Company performed its
obligation of information disclosure in strict compliance
with the regulatory requirements, seriously implemented
various information disclosure management systems, and
disclosed information in a timely and fair manner. The Board
of Supervisors is not aware of any false representations,
misleading statements or material omissions during the
Reporting Period. The Board of Supervisors reviewed the
periodic reports prepared by the Board and provided written
opinions on its review.
By Order of the Board of Supervisors
Cao Weiqing
Chairman of the Board of Supervisors
26 March 2025
Annual Report 2024 | Corporate Governance
51
CHANGES IN ORDINARY SHARES AND SHAREHOLDERS INFORMATION
CHANGES IN SHARE CAPITAL
During the Reporting Period, there was no change in the total number of shares and the share capital structure of the
Company.
ISSUE AND LISTING OF SECURITIES
As at the end of the Reporting Period, the Company had not issued any securities in the last three years. During the
Reporting Period, there was no change in the total number of shares and the share structure of the Company due to bonus
issues or placings, nor were there any internal employees’ shares.
INFORMATION ON SHAREHOLDERS AND EFFECTIVE CONTROLLER
Total Number of Shareholders and their Shareholdings
Total number of ordinary
share shareholders as at
the end of the Reporting
Period
No. of A Share shareholders:
83,273
No. of H Share shareholders:
23,405
Total number of ordinary
share shareholders as at
the end of the month prior
to the disclosure of the
annual report
No. of A Share shareholders:
85,299
No. of H Share shareholders:
23,235
Particulars of Top Ten Shareholders of the Company
Unit: Shares
Name of shareholder
Nature of shareholder
Percentage of
shareholding
Number of
shares held as
at the end of
the Reporting
Period
Increase/
Decrease
during the
Reporting
Period
Number of
shares subject
to selling
restrictions
Number
of shares
pledged or
frozen
China Life Insurance (Group) Company
State-owned legal person
68.37% 19,323,530,000
–
–
–
HKSCC Nominees Limited
Overseas legal person
25.94%
7,331,228,476
+3,704,674
–
–
China Securities Finance Corporation Limited
State-owned legal person
2.51%
708,240,246
–
–
–
Central Huijin Asset Management Limited
State-owned legal person
0.41%
117,165,585
–
–
–
Hong Kong Securities Clearing Company
Limited
Overseas legal person
0.29%
82,473,605
+38,118,666
–
–
Industrial and Commercial Bank of China
Limited – SSE 50 Exchange Traded Index
Securities Investment Fund
Other
0.11%
31,302,670
+10,995,967
–
–
Industrial and Commercial Bank of China
Limited – Huatai-PineBridge CSI 300
Exchange Traded Index Securities
Investment Fund
Other
0.10%
28,745,434
+16,342,701
–
–
China Construction Bank Corporation – E
Fund CSI 300 Exchange Traded Index
Initiative Securities Investment Fund
Other
0.07%
19,836,747
+15,928,600
–
–
Industrial and Commercial Bank of China
Limited – Huaxia CSI 300 Exchange Traded
Index Securities Investment Fund
Other
0.05%
13,186,665
+9,786,700
–
–
National Social Security Fund Portfolio 114
Other
0.05%
13,000,000
+1,000,000
–
–
Annual Report 2024 | Corporate Governance
52
Notes:
1.
The above shares are tradable shares not subject to selling restrictions. As at the end of the Reporting Period, except for the unknown situation regarding
HKSCC Nominees Limited, none of the other shareholders of the Company as described above have lent their shares through refinancing.
2.
HKSCC Nominees Limited is a company that holds shares on behalf of the clients of the Hong Kong stock brokers and other participants of the CCASS
system. The relevant regulations of the HKSE do not require such persons to declare whether their shareholdings are pledged or frozen. Hence, HKSCC
Nominees Limited is unable to calculate or provide the number of shares that are pledged or frozen.
3.
Industrial and Commercial Bank of China Limited – SSE 50 Exchange Traded Index Securities Investment Fund, Industrial and Commercial Bank of China
Limited – Huatai-PineBridge CSI 300 Exchange Traded Index Securities Investment Fund and Industrial and Commercial Bank of China Limited – Huaxia
CSI 300 Exchange Traded Index Securities Investment Fund have Industrial and Commercial Bank of China Limited as their fund depositary. Save as above,
the Company was not aware of any connected relationship and concerted parties as defined by the “Measures for the Administration of the Takeover of
Listed Companies” among the top ten shareholders of the Company.
Information relating to the Controlling Shareholder and Effective Controller
The controlling shareholder of the Company is CLIC, and its relevant information is set out below:
Name of company
China Life Insurance (Group) Company
Legal representative
Cai Xiliang
Date of incorporation
22 August 1996 (CLIC’s predecessor was PICC (Life) Co., Ltd. incorporated in August 1996.
It was renamed as China Life Insurance Company, a company approved for formation
by the State Council in January 1999. With the approval of the former China Insurance
Regulatory Commission in 2003, China Life Insurance Company was restructured as CLIC.)
Major businesses
Insurance services including receipt of premiums and payment of benefits in respect of
the in-force life, health, accident and other types of personal insurance business, and the
reinsurance business; holding or investing in domestic and overseas insurance companies
or other financial insurance institutions; funds application business permitted by PRC laws
and regulations or approved by the State Council of the PRC; other businesses approved
by insurance regulatory agencies.
Shareholdings in other
subsidiaries and affiliates
listed in China or abroad
during the Reporting Period
As at 31 December 2024, CLIC held 1,785,098,644 H shares of Town Health International
Medical Group Limited (which is one of the companies listed in China or abroad in which
CLIC has over 5% of the total share capital), representing 26.35% of its total shares.
The effective controller of the Company is the Ministry of Finance. The equity and controlling relationship between the
Company and its effective controller is set out as below:
90%
10%
68.37%
Ministry of Finance of the PRC
National Council for Social
Security Fund
China Life Insurance
(Group) Company
China Life Insurance
Company Limited
During the Reporting Period, there was no change to the controlling shareholder and the effective controller of the Company.
As at the end of the Reporting Period, there was no other corporate shareholder holding more than 10% of the shares in
the Company.
Annual Report 2024 | Corporate Governance
53
INTERESTS AND SHORT POSITIONS IN THE SHARES AND UNDERLYING SHARES OF THE COMPANY
HELD BY SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS UNDER HONG KONG LAWS AND
REGULATIONS
So far as is known to the Directors, Supervisors and the chief executive of the Company, as at 31 December 2024, the
following persons (other than the Directors, Supervisors and the chief executive of the Company) had interests or short
positions in the shares or underlying shares of the Company which would fall to be disclosed to the Company under the
provisions of Divisions 2 and 3 of Part XV of the SFO (Chapter 571 of the Laws of Hong Kong), or which were recorded
in the register required to be kept by the Company pursuant to Section 336 of the SFO, or as otherwise notified to the
Company and the HKSE:
Name of substantial
shareholder
Capacity
Class of shares
Number of
shares held
Percentage of
the respective
class of shares
Percentage of
the total number
of shares in
issue
China Life Insurance
(Group) Company
Beneficial owner
A Shares
19,323,530,000 (L)
92.80%
68.37%
BlackRock, Inc. (Note 1)
Interest in controlled
corporation
H Shares
455,221,964 (L)
2,922,000 (S)
6.12%
0.04%
1.61%
0.01%
Citigroup Inc. (Note 2)
Interest in controlled
corporation,
approved lending
agent
H Shares
448,533,110 (L)
28,858,612 (S)
370,282,684 (P)
6.02%
0.38%
4.97%
1.59%
0.10%
1.31%
FMR LLC (Note 3)
Interest in controlled
corporation
H Shares
438,809,640 (L)
5.90%
1.55%
The letter “L” denotes a long position. The letter “S” denotes a short position. The letter “P” denotes interest in a lending pool.
(Note 1):
BlackRock, Inc. was interested in a total of 455,221,964 H shares of the Company in accordance with the provisions of Part XV of the SFO. Of
these shares, BlackRock Investment Management, LLC, BlackRock Financial Management, Inc., BlackRock Institutional Trust Company, National
Association, BlackRock Fund Advisors, BlackRock Advisors, LLC, BlackRock Japan Co., Ltd., BlackRock Asset Management Canada Limited,
BlackRock Investment Management (Australia) Limited, BlackRock Asset Management North Asia Limited, BlackRock (Netherlands) B.V., BlackRock
Advisors (UK) Limited, BlackRock Asset Management Ireland Limited, BLACKROCK (Luxembourg) S.A., BlackRock Investment Management (UK)
Limited, BlackRock Asset Management Deutschland AG, BlackRock Fund Managers Limited, BlackRock Life Limited, BlackRock (Singapore) Limited,
BlackRock Asset Management Schweiz AG and Aperio Group, LLC were interested in 2,423,000 H shares, 11,907,000 H shares, 106,040,736 H
shares, 183,848,000 H shares, 631,000 H shares, 7,809,397 H shares, 4,988,000 H shares, 4,578,000 H shares, 23,838,423 H shares, 9,011,322
H shares, 271,000 H shares, 76,619,958 H shares, 281,000 H shares, 8,783,749 H shares, 333,000 H shares, 8,519,993 H shares, 266,554 shares,
3,561,000 H shares, 103,000 H shares and 1,407,832 H shares, respectively. All of these entities are either controlled or indirectly controlled
subsidiaries of BlackRock, Inc. Of these 455,221,964 H shares, 5,097,000 H shares were cash settled unlisted derivatives.
BlackRock, Inc. held by way of attribution a short position as defined under Part XV of the SFO in 2,922,000 H shares (0.04%). Of these 2,922,000
H shares, 2,682,000 H shares were cash settled unlisted derivatives.
(Note 2):
Citigroup Inc. was interested in a total of 448,533,110 H shares in accordance with the provisions of Part XV of the SFO. Of these shares, Citibank,
N.A., Citigroup First Investment Management Limited, Citigroup Global Markets Hong Kong Limited, Citigroup Global Markets Funding Luxembourg
S.C.A., Citigroup Global Markets Limited, Citibank (Switzerland) AG and Citibank Europe plc were interested in 398,188,499 H shares, 6,644,905 H
shares, 38,489,634 H shares, 1,283 H shares, 2,419,006 H shares, 1,119,634 H shares and 1,670,149 H shares, respectively. All of these entities
are either controlled or indirectly controlled subsidiaries of Citigroup Inc.
Included in the 448,533,110 H shares, 370,282,684 H shares (4.97%) were interest in the lending pool, as defined under Section 5(4) of the
Securities and Futures (Disclosure of Interests – Securities Borrowing and Lending) Rules. Of these 448,533,110 H shares, 3,261,000 H shares
were physically settled listed derivatives, 26,896,552 H shares were physically settled unlisted derivatives and 1,967,564 H shares were cash
settled unlisted derivatives.
Citigroup Inc. held a short position as defined under Part XV of the SFO in 28,858,612 H shares (0.38%). Of these 28,858,612 H shares, 6,443,000
H shares were physically settled listed derivatives, 7,058,248 H shares were physically settled unlisted derivatives and 128,285 H shares were
cash settled unlisted derivatives.
(Note 3):
FMR LLC was interested in a total of 438,809,640 H shares of the Company in accordance with the provisions of Part XV of the SFO. Of these shares,
Fidelity Management & Research Company LLC, Fidelity Management & Research (Hong Kong) Limited, Fidelity Institutional Asset Management
Trust Company and FIAM LLC were interested in 165,804,208 H shares, 134,649,344 H shares, 15,951,407 H shares and 87,588,803 H shares,
respectively. All of these entities are either controlled or indirectly controlled subsidiaries of FMR LLC.
Save as disclosed above, the Directors, Supervisors and the chief executive of the Company are not aware of any other
party who, as at 31 December 2024, had an interest or short position in the shares and underlying shares of the Company
which was recorded in the register required to be kept by the Company pursuant to Section 336 of the SFO.
Annual Report 2024 | Corporate Governance
54
DIRECTORS, SUPERVISORS, SENIOR MANAGEMENT AND EMPLOYEES
DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
Current Directors, Supervisors and Senior Management
Name
Position
Gender
Date of birth
Term
Salary/
Remuneration
paid in RMB
ten thousands
Other benefits,
social insurance,
housing
provident fund
and enterprise
annuity fund
paid by the
Company
in RMB ten
thousands
Total
emoluments
received from
the Company
during the
Reporting
Period in RMB
ten thousands
(before tax)
Whether
received
emolument
from connected
parties of the
Company
Cai Xiliang
Chairman of the Board
Executive Director
Male
August 1966
Since 4 December 2024
–
–
–
Yes
Li Mingguang
Executive Director
President
Male
July 1969
Appointed as an Executive Director
since 16 August 2019,
President since November 2023
–
–
–
Yes
Liu Hui
Executive Director
Vice President
Chief Investment Officer
Board Secretary
Female
February 1970
Appointed as an Executive Director
since 17 May 2024,
a Vice President since July 2023,
Chief Investment Officer since
December 2023,
Board Secretary since January 2025
125.30
36.59
161.89
No
Ruan Qi
Executive Director
Vice President
Chief Risk Officer
Chief Network Security
Officer
Male
July 1966
Appointed as an Executive Director
since 17 May 2024,
a Vice President since April 2018,
Chief Risk Officer since
December 2022,
Chief Network Security Officer since
March 2024
125.30
34.59
159.89
No
Wang Junhui
Non-executive Director
Male
July 1971
Since 16 August 2019
–
–
–
Yes
Hu Jin
Non-executive Director
Female
November 1971
Since 14 November 2024
–
–
–
Yes
Hu Rong
Non-executive Director
Male
March 1977
Since 14 November 2024
–
–
–
Yes
Lam Chi Kuen
Independent Director
Male
April 1953
Since 29 June 2021
42.00
0
42.00
No
Zhai Haitao
Independent Director
Male
January 1969
Since 14 October 2021
42.00
0
42.00
Yes
Chen Jie
Independent Director
Female
April 1970
Since 13 July 2022
42.00
0
42.00
No
Lu Feng
Independent Director
Male
July 1957
Since 19 November 2024
3.50
0
3.50
No
Cao Weiqing
Chairman of the Board
of Supervisors
Male
September 1965
Since 4 November 2022
134.25
34.56
168.81
No
Gu Haishan
Non-employee
Representative
Supervisor
Male
June 1974
Since 9 October 2024
–
–
–
Yes
Ye Yinglan
Employee Representative
Supervisor
Female
October 1974
Since 21 June 2023
90.44
28.10
118.54
No
Dong Haifeng
Employee Representative
Supervisor
Male
August 1978
Since 2 July 2024
34.52
11.82
46.34
No
Annual Report 2024 | Corporate Governance
55
Name
Position
Gender
Date of birth
Term
Salary/
Remuneration
paid in RMB
ten thousands
Other benefits,
social insurance,
housing
provident fund
and enterprise
annuity fund
paid by the
Company
in RMB ten
thousands
Total
emoluments
received from
the Company
during the
Reporting
Period in RMB
ten thousands
(before tax)
Whether
received
emolument
from connected
parties of the
Company
Bai Kai
Vice President
Male
June 1974
Since August 2023
125.30
35.24
160.54
No
Xu Chongmiao
Chief Compliance Officer
Person in Charge of
Compliance
Male
October 1969
Appointed as Chief Compliance Officer
since April 2024,
Person in Charge of Compliance since
July 2018
106.60
32.86
139.46
No
Hou Jin
Chief Actuary
Female
January 1980
Appointed as Chief Actuary since
November 2023
82.80
27.52
110.32
No
Hu Zhijun
Person in Charge of
Audit
Female
July 1971
Since November 2023
97.76
28.39
126.15
No
Yuan Ying
Person in Charge of
Finance
Female
February 1978
Since July 2024
31.07
11.41
42.48
No
Total
/
/
/
/
1,082.84
281.08
1,363.92
/
Notes:
1.
None of the current Directors, Supervisors and senior management of the Company held any shares of the Company during the Reporting Period.
2.
According to the Articles of Association, Directors of the Company serve for a term of three years and may be re-elected. However, Independent Directors
may not serve for more than six years. Supervisors of the Company serve for a term of three years and may be re-elected.
3.
The positions of the Directors, Supervisors and senior management in this report reflect their positions as at the date of this report. The emoluments are
calculated based on their terms of office during the Reporting Period.
4.
According to the requirements of the relevant measures for the administration of remuneration of the Company, the final amount of emoluments of
the current Directors, Supervisors and senior management of the Company is currently subject to review and approval. The result of the review will be
disclosed when the final amount is confirmed.
5.
As elected by the First Extraordinary General Meeting 2024 of the Company and the eighth meeting of the eighth session of the Board of Directors
convened on the same day and upon approval by the NFRA, Mr. Cai Xiliang served as the Chairman of the Board and an Executive Director of the Company
from 4 December 2024.
As elected by the First Extraordinary General Meeting 2023 of the Company and upon approval by the NFRA, Ms. Liu Hui and Mr. Ruan Qi served as
Executive Directors of the Company from 17 May 2024.
As elected by the 2023 Annual General Meeting of the Company and upon approval by the NFRA, Ms. Hu Jin and Mr. Hu Rong served as Non-executive
Directors of the Company from 14 November 2024, and Mr. Lu Feng served as an Independent Director of the Company from 19 November 2024.
6.
As elected by the 2023 Annual General Meeting of the Company and upon approval by the NFRA, Mr. Gu Haishan served as a Non-employee Representative
Supervisor of the Company from 9 October 2024.
As elected by the twelfth extraordinary meeting of the third session of the employee representative meeting of the Company and upon approval by the
NFRA, Mr. Dong Haifeng served as an Employee Representative Supervisor of the Company from 2 July 2024.
7.
As considered and approved by the seventh meeting of the eighth session of the Board of Directors of the Company and upon approval by the NFRA,
Ms. Liu Hui served as the Board Secretary of the Company from 10 January 2025.
As considered and approved by the thirty-seventh meeting of the seventh session of the Board of Directors of the Company, Mr. Xu Chongmiao served
as the Chief Compliance Officer of the Company from 26 April 2024.
As considered and approved by the thirty-sixth meeting of the seventh session of the Board of Directors of the Company and upon approval by the NFRA,
Ms. Yuan Ying served as the Person in Charge of Finance of the Company from 10 July 2024.
Annual Report 2024 | Corporate Governance
56
Resigned and Retired Directors, Supervisors and Senior Management
Name
Previous position
Gender
Date of birth
Term
Salary/
Remuneration
paid in RMB ten
thousands
Other benefits,
social insurance,
housing
provident fund
and enterprise
annuity fund paid
by the Company
in RMB ten
thousands
Total
emoluments
received from the
Company during
the Reporting
Period in RMB
ten thousands
(before tax)
Whether received
emolument from
connected parties
of the Company
Reason for changes
Bai Tao
Chairman of the Board
Executive Director
Male
March 1963
31 May 2022
– 30 September 2024
–
–
–
Yes
Resigned due to the
adjustment of work
arrangements
Zhuo Meijuan
Non-executive Director
Female
July 1964
21 June 2023 – 27 June 2024
–
–
–
Yes
Retired due to the
expiration of her term
of office
Huang Yiping
Independent Director
Male
March 1964
13 July 2022
– 19 November 2024
38.50
0
38.50
No
Resigned due to his
reappointment as a
member of the Monetary
Policy Committee of the
People’s Bank of China
Niu Kailong
Non-employee Representative
Supervisor
Male
September 1974
14 October 2021
– 27 June 2024
–
–
–
Yes
Retired due to the
expiration of his term
of office
Lai Jun
Employee Representative
Supervisor
Male
May 1964
14 October 2021
– 14 October 2024
79.51
22.26
101.77
No
Resigned due to the
reason of age
Yang Hong
Vice President
Female
February 1967
July 2019 – March 2024
30.81
9.49
40.30
No
Resigned due to the
adjustment of work
arrangements
Zhao Guodong
Vice President
Male
November 1967
August 2023 – July 2024
62.65
17.26
79.91
No
Resigned due to the
adjustment of work
arrangements
Board Secretary
February 2023 – July 2024
Hu Jin
Person in Charge of Finance
Female
November 1971
February 2023 – March 2024
–
–
–
Yes
Resigned due to the
adjustment of work
arrangements
Total
/
/
/
/
211.47
49.01
260.48
/
/
Notes:
1.
None of the resigned or retired Directors, Supervisors and senior management of the Company held any shares of the Company during the Reporting
Period.
2.
This table sets out the information of Directors, Supervisors and senior management who resigned or retired during the period from the beginning of the
Reporting Period to the date of this report.
3.
The emoluments are calculated based on the terms of office of the resigned and retired Directors, Supervisors and senior management during the Reporting
Period.
4.
According to the requirements of the relevant measures for the administration of remuneration of the Company, the final amount of emoluments of the
resigned and retired Directors, Supervisors and senior management of the Company is currently subject to review and approval. The result of the review
will be disclosed when the final amount is confirmed.
Annual Report 2024 | Corporate Governance
57
Personal Profile of Current Directors, Supervisors, Senior Management and Company Secretary
DIRECTORS
Mr. Cai Xiliang, born in 1966, Chinese
Mr. Cai Xiliang became the Chairman of the Board of Directors of the Company in
December 2024. He has been the Chairman of the Board of Directors of China Life
Insurance (Group) Company since November 2024. He served as the Chairman of each
of China Life Asset Management Company Limited and China Life Property and Casualty
Insurance Company Limited from November 2022 to March 2025. Mr. Cai served as the
Vice Chairman and the President of China Life Insurance (Group) Company from July
2022 to August 2024. From 2016 to 2022, he served as the Deputy Secretary of the
Party Committee, the Vice Chairman and the General Manager of China Export & Credit
Insurance Corporation, and a member of the Party Committee and the Deputy General
Manager of CITIC Group Corporation. Mr. Cai graduated from Shanghai University of
Finance and Economics with a master’s degree in economics.
Mr. Li Mingguang, born in 1969, Chinese
Mr. Li became an Executive Director of the Company in August 2019. He has been the
Secretary of the Party Committee of the Company since July 2023 and the President
of the Company since November 2023. He has been a member of the Party Committee
and a Vice President of China Life Insurance (Group) Company since April 2023 and
November 2023, respectively. From July 2023 to July 2024, he served as the Chairman
of China Life Investment Management Company Limited. Mr. Li joined the Company
in 1996 and successively served as the Responsible Actuary, the General Manager of
the Actuarial Department, the Chief Actuary, the Board Secretary, a Vice President
and the temporary Person in Charge of the Company. He graduated from Shanghai
Jiaotong University with a bachelor’s degree in 1991, Central University of Finance and
Economics with a master’s degree in 1996 and Tsinghua University with an EMBA in
2010. Mr. Li is a Fellow of the China Association of Actuaries (FCAA) and a Fellow of
the Institute and Faculty of Actuaries (FIA). He was the Chairman of the first session
of the China Actuarial Working Committee and the Secretary-general of both the first
and the second sessions of the China Association of Actuaries. He is currently the Vice
Chairman of the China Association of Actuaries. Mr. Li receives a special government
allowance from the State Council.
Ms. Liu Hui, born in 1970, Chinese
Ms. Liu became an Executive Director of the Company in May 2024. She has been
a Vice President of the Company since July 2023, the Chief Investment Officer of
the Company since December 2023, and the Board Secretary of the Company since
January 2025. She has been a Director of China Guangfa Bank Co., Ltd. since January
2024, a Director of China Life Asset Management Company Limited since August 2023,
and a Director of China Life Franklin Asset Management Company Limited since April
2023. From 2014 to 2022, Ms. Liu served as a Vice President of China Life Investment
Holding Company Limited, and an Executive Director and a Vice President of China Life
Investment Management Company Limited. Ms. Liu successively obtained a bachelor’s
degree in economics from Renmin University of China and a master’s degree in business
administration from Tsinghua University, and is a senior economist.
Annual Report 2024 | Corporate Governance
58
Mr. Ruan Qi, born in 1966, Chinese
Mr. Ruan became an Executive Director of the Company in May 2024. He has been a
Vice President of the Company since April 2018, the Chief Risk Officer of the Company
since December 2022, and the Chief Network Security Officer of the Company since
March 2024. Mr. Ruan has been a Director of China Life Property and Casualty Insurance
Company Limited since April 2024. He has been the temporary Person in Charge and
a Director of China Life Ecommerce Company Limited since January 2024 and May
2023, respectively. He has been the Chairman of Wonders Information Co., Ltd. since
July 2023. He successively served as the General Manager (at the general manager
level of the provincial branches) of the Information Technology Department and the
Chief Information Technology Officer of the Company from 2016 to 2018. Mr. Ruan
served as the General Manager of China Life Data Center and the General Manager (at
the general manager level of the provincial branches) of the Information Technology
Department of the Company from 2014 to 2016, and the Deputy General Manager and
the General Manager of the Information Technology Department of the Company from
2004 to 2014. He successively served as the Deputy Division Chief of the Computer
Division, the Deputy Manager (responsible for daily operations) and the Manager of
the Information Technology Department of Fujian Branch of the Company from 2000
to 2004. Mr. Ruan graduated from Beijing Institute of Posts and Telecommunications
in August 1987, majoring in computer science and communications with a bachelor’s
degree in engineering, and from Xiamen University with a master’s degree in business
administration for senior management (EMBA) in December 2007, and is a senior
engineer.
Mr. Wang Junhui, born in 1971, Chinese
Mr. Wang became a Non-executive Director of the Company in August 2019. He has
been the Chairman of China Life Pension Company Limited since November 2023 and the
Chief Investment Officer of China Life Insurance (Group) Company since August 2016.
He has been a Director of China United Network Communications Limited since March
2021. From 2004 to 2023, he successively served as an Assistant to the President, a
Vice President and the President of China Life Asset Management Company Limited,
and the President of China Life Investment Holding Company Limited. Mr. Wang
graduated from the School of Computer Science of Beijing University of Technology with
a bachelor’s degree in software in 1995 and from Chinese Academy of Fiscal Sciences
of the Ministry of Finance of the PRC with a doctoral degree in finance in 2008, and is
a senior economist.
Annual Report 2024 | Corporate Governance
59
Ms. Hu Jin, born in 1971, Chinese
Ms. Hu became a Non-executive Director of the Company in November 2024. She has
been the General Manager of the Finance Department of China Life Insurance (Group)
Company since June 2024. She has been a Director of each of China Life Insurance
(Overseas) Company Limited and China Life Asset Management Company Limited since
January 2024 and September 2024, respectively. From 2013 to 2024, she successively
served as the Deputy General Manager of the Finance Department, the Deputy General
Manager of the Accounting Department, the General Manager of the Shared Service
Center (Financial Sector), the General Manager of the Finance Department and the Person
in Charge of Finance of the Company, and the Deputy General Manager (responsible for
daily operations) of the Finance Department of China Life Insurance (Group) Company.
Ms. Hu graduated from Renmin University of China in 1993, majoring in accounting
with a bachelor’s degree in economics, and obtained a master’s degree in economics
in 2006. She is admitted as a certified public accountant in the PRC, and is a principal
senior accountant. She was listed in the “Financial Talent Pool” and “Accounting Talent
Pool” of the Ministry of Finance of the PRC in 2020, and was a member of the Financial
Accounting Expert Working Group of the Ministry of Finance of the PRC in 2019.
Mr. Hu Rong, born in 1977, Chinese
Mr. Hu became a Non-executive Director of the Company in November 2024. He has been
the Person in Charge of Compliance of China Life Insurance (Group) Company since April
2024. He has been the Deputy General Manager of the Legal Compliance Department and
the Deputy General Manager (responsible for daily operations) of the Risk Management
Department of China Life Insurance (Group) Company since December 2023. He has
been a Supervisor of China Life Insurance (Overseas) Company Limited since January
2025. He served as the Deputy General Manager (responsible for daily operations) of the
Risk Management Department/Internal Control and Compliance Department of China Life
Insurance (Group) Company from September 2023 to December 2023. He successively
served as an Assistant to the General Manager of the Supervision Department and an
Assistant to the General Manager and the Deputy General Manager (responsible for daily
operations) of the Legal and Compliance Department of China Life Investment Holding
Company Limited, the Deputy General Manager (responsible for daily operations) and
the General Manager of the Risk Management and Legal Compliance Department and
the General Manager of the Infrastructure Investment Business Department of China
Life Investment Management Company Limited from 2016 to 2023. Mr. Hu successively
graduated from Xiamen University and the People’s Public Security University of China,
and possesses a master’s degree in law.
Annual Report 2024 | Corporate Governance
60
Mr. Lam Chi Kuen, born in 1953, Chinese
Mr. Lam became an Independent Director of the Company in June 2021. He is currently
an Independent Non-executive Director of each of China Cinda Asset Management Co.,
Ltd. and Luks Group (Vietnam Holdings) Company Limited. He served as an Independent
Non-executive Director of China Pacific Insurance (Group) Co., Ltd. from 2013 to 2019.
Mr. Lam, a practicing certified public accountant in Hong Kong for approximately 35
years, was a partner and senior consultant of Ernst & Young from 1992 to 2013 and
has extensive experience in accounting, auditing and financial management. Mr. Lam
received a Higher Diploma in Accounting from the Hong Kong Polytechnic College (the
current Hong Kong Polytechnic University). He is a member of the Hong Kong Institute
of Certified Public Accountants and a senior member of the Association of Chartered
Certified Accountants.
Mr. Zhai Haitao, born in 1969, Chinese
Mr. Zhai became an Independent Director of the Company in October 2021. He is the
President and Founding Partner of Primavera Capital Group, and an Independent Non-
executive Director of China Everbright Water Limited. From 2000 to 2009, Mr. Zhai
worked at and held various positions in Goldman Sachs Group, including the Managing
Director, the Chief Representative of its Beijing Office, the Director of the Strategic
Cooperation Office between Goldman Sachs Group and Industrial and Commercial Bank
of China, and the Credit Rating Consultant of the Ministry of Finance of the PRC and
China Development Bank. From 1995 to 1998, he was the Deputy Representative of
the People’s Bank of China Representative Office for the Americas based in New York.
From 1990 to 1995, Mr. Zhai worked at the International Department of the People’s
Bank of China. Mr. Zhai holds a master’s degree in international affairs from Columbia
University, a master’s degree in business administration from New York University and
a bachelor’s degree in economics from Peking University.
Annual Report 2024 | Corporate Governance
61
Ms. Chen Jie, born in 1970, Chinese
Ms. Chen became an Independent Director of the Company in July 2022. She is the
Director and a researcher of the Commercial Law Research Unit of the Institute of
Law, a professor and doctoral tutor of Chinese Academy of Social Sciences. She is a
member of the Chinese Legal System Committee of China Democratic League, as well
as the Vice Chairman of China Business Law Society, an Executive Director of each
of the Institute of Commercial Law and the Institute of Securities Law of China Law
Society. Ms. Chen is also a member of each of the Appeal Review Committee and
Legal Professional Advisory Committee of Shenzhen Stock Exchange, a member of
each of the Expert Advisory Committee of Beijing Financial Court and Expert Advisory
Committee of Chengyu Financial Court, and an arbitrator of each of Beijing Arbitration
Commission/Beijing International Arbitration Center, Shenzhen Court of International
Arbitration, China International Economic and Trade Arbitration Commission, Shanghai
International Economic and Trade Arbitration Commission and Shanghai Arbitration
Commission. Ms. Chen has been an Independent Director of GigaDevice Semiconductor
Inc. since December 2024 and an Independent Director of Deppon Logistics Co., Ltd.
since October 2022. Ms. Chen obtained a bachelor’s degree in law from East China
College of Political Science and Law, a master’s and doctoral degrees in law from
Peking University, and a post-doctoral qualification from the Institute of Law of Chinese
Academy of Social Sciences.
Mr. Lu Feng, born in 1957, Chinese
Mr. Lu became an Independent Director of the Company in November 2024. He is a
professor of economics of the National School of Development and the chair professor
of the Alumni College Development Fund of Peking University. He concurrently serves
as a member of the Academic Committee of China Finance 40 Forum. Mr. Lu taught
at the Economics Department of the University of Leeds of the United Kingdom from
1994 to 1995 and the Economics Department of Renmin University of China from
1985 to 1989, and previously visited and conducted research at Harvard University of
the United States, The Australian National University and the Institute of Development
Studies of the United Kingdom. He was also a consultation specialist of the Ministry
of Human Resources and Social Security and the Ministry of Agriculture of the PRC, a
member of the Advisory Committee of “ASEAN + 3 Macroeconomic Research Office
(AMRO)”, an international organisation, and a member of the Consultation Committee
of World Development Report 2016 of the World Bank. Mr. Lu obtained a bachelor’s
degree in law and master’s degree in economics from Renmin University of China and
a doctoral degree in economics from the University of Leeds of the United Kingdom.
Annual Report 2024 | Corporate Governance
62
Mr. Cao Weiqing, born in 1965, Chinese
Mr. Cao became the Chairman of the Board of Supervisors of the Company in November
2022. He has been a member and the Deputy Secretary of the Party Committee of
the Company since 2022. He successively served as the Secretary of the Discipline
Inspection Committee, the Chairman of the Board of Supervisors and a Vice President
of China Life Asset Management Company Limited from 2016 to 2022. He served as
the Deputy General Manager (at the general manager level of the provincial branches)
of Hebei Branch of the Company from 2014 to 2016, and concurrently acted as the
Secretary of the Discipline Inspection Committee and the Chairman of the Labour Union
of such branch. From 2002 to 2014, he successively served as the Deputy General
Manager of the Personnel Department of China Life Insurance Company, as well as the
Deputy General Manager and General Manager of the Strategic Planning Department
and the General Manager of the Equity Management Department of China Life Insurance
(Group) Company. Mr. Cao graduated from Nankai University with a master’s degree in
economics, and is a senior economist.
Mr. Gu Haishan, born in 1974, Chinese
Mr. Gu became a Supervisor of the Company in October 2024. He has been the Director
of the Audit Bureau and the General Manager of the Audit Center of China Life Insurance
(Group) Company since June 2024, and the Person in Charge of Audit of China Life
Insurance (Group) Company since April 2024. He successively served as the Deputy
General Manager (at the level of an assistant to the departmental general manager
of the head office) of the Company’s Shenzhen Branch, an Assistant to the General
Manager of the Asset Management Department, an Assistant to the General Manager
of the Real Estate Project Investment Department, an Assistant to the General Manager
and the Deputy General Manager of the Asset Management Department, the Deputy
Director (responsible for daily operations) and Director of the Management Office of the
Science Park and the General Manager of the Asset Management Department of the
Company, and the Person in Charge of Audit, the Deputy Director of the Audit Bureau
and the Deputy General Manager (responsible for daily operations) of the Audit Center
of China Life Insurance (Group) Company. Mr. Gu graduated from Tsinghua University
with a master’s degree in engineering.
SUPERVISORS
Annual Report 2024 | Corporate Governance
63
Ms. Ye Yinglan, born in 1974, Chinese
Ms. Ye became a Supervisor of the Company in June 2023. She has been the General
Manager of the Asset Management Department of the Company since November
2023. She served as the General Manager of the Integrated Finance Department of the
Company from June 2023 to February 2025. Ms. Ye joined the Company in 1999 and
successively served as an Assistant to the General Manager and the Deputy General
Manager of the Finance Department, the Deputy General Manager, the Deputy General
Manager (responsible for daily operations) and the General Manager of the Finance
Management Department, and the General Manager of the Fund Sales Management
Department of the Company from 2009 to 2023. Ms. Ye graduated from Wuhan University
with a doctoral degree in economics.
Mr. Dong Haifeng, born in 1978, Chinese
Mr. Dong became a Supervisor of the Company in July 2024. He has been the Director
of the General Office/Office for Rural Revitalisation of the Company since July 2022. Mr.
Dong joined the Company in 2001 and successively served as an Assistant to the General
Manager and the Deputy General Manager of the Strategy and Marketing Department,
the Deputy Director of the General Office/Office for Poverty Alleviation, and the Deputy
Director of the General Office/Office for Rural Revitalisation of the Company from 2016
to 2022. Mr. Dong graduated from Zhongnan University of Economics and Law with a
master’s degree in economics.
Annual Report 2024 | Corporate Governance
64
Mr. Bai Kai, born in 1974, Chinese
Mr. Bai became a Vice President of the Company in August 2023. He has been the
Chairman of the Board of Directors of China Life Nianfeng Insurance Agency Co., Ltd.
since February 2024. He successively served as the Deputy General Manager, the
Deputy General Manager (responsible for daily operations) and the General Manager of
Hubei Branch, and an Assistant to the President of the Company from 2017 to 2023, and
the General Manager of Huanggang Branch in Hubei Province and the Deputy General
Manager of Qingdao Branch of the Company from 2011 to 2017. Mr. Bai graduated
from Party School of the CPC Hubei Provincial Committee, majoring in economics and
management, and was a postgraduate.
Mr. Xu Chongmiao, born in 1969, Chinese
Mr. Xu became the Chief Compliance Officer of the Company in April 2024. He has been
the Person in Charge of Compliance of the Company since July 2018, and the General
Manager of the Legal and Compliance Department and the Legal Officer of the Company
since September 2014. He has been a Director of China Insurance Security Fund Co.,
Ltd. since December 2024. From 2006 to 2014, he successively served as the Deputy
General Manager of the Legal Affairs Department, the Deputy General Manager of the
Legal and Compliance Department and the Legal Officer at the general manager level
of the Company. From 2000 to 2006, he successively served as the Deputy Division
Chief of the Regulations Division of the Development and Research Department and
a senior regulations researcher of the Legal Affairs Department of the Company. Mr.
Xu graduated from Fudan University in August 1991, majoring in economic law with a
bachelor’s degree in law, and from Renmin University of China in July 1996 and July
2005, respectively, majoring in economic law with master’s and doctoral degrees in law.
Mr. Xu is admitted as a lawyer and certified public accountant in the PRC, and receives
a special government allowance from the State Council.
SENIOR MANAGEMENT
Mr. Li Mingguang, Ms. Liu Hui, Mr. Ruan Qi, please see the section “Directors” for their personal profiles.
Ms. Hou Jin, born in 1980, Chinese
Ms. Hou became the Chief Actuary of the Company in November 2023. She has been
the General Manager of the Actuarial Department of the Company since September
2023. She served as the General Manager of the Product Department of the Company
from November 2023 to February 2025. Ms. Hou successively served as a senior actuary
(Grade III), an Assistant to the General Manager and the Deputy General Manager of
the Actuarial Department and the temporary Chief Actuary of the Company from 2017
to 2023. Ms. Hou successively graduated from Southwestern University of Finance and
Economics and Nankai University, with a bachelor’s degree and a master’s degree in
economics, and is a full member of the China Association of Actuaries and a member
of the Society of Actuaries.
Annual Report 2024 | Corporate Governance
65
Ms. Hu Zhijun, born in 1971, Chinese
Ms. Hu became the Person in Charge of Audit of the Company in November 2023. She
has been the General Manager of the Audit Department of the Company since October
2022. She was a Supervisor of the Company from July 2022 to June 2023. Ms. Hu
joined the Company in 2006 and successively served as an Assistant to the General
Manager and the Deputy General Manager of Tianjin Branch, the Deputy General Manager
and the Secretary of the Discipline Inspection Committee of Beijing Branch, and the
General Manager of the Asset Management Department of the Company from 2009
to October 2022. Prior to joining the Company, she worked at China Packing Import &
Export Tianjin Company and other companies. Ms. Hu graduated from Tianjin Institute
of Finance and Economics in 1993, majoring in accounting with a bachelor’s degree in
economics, and from Nankai University in 2006, majoring in corporate management with
a master’s degree in management. Ms. Hu is admitted as a certified public accountant in
the PRC. She is a principal senior accountant and the national leading accounting talent
recognised by the Ministry of Finance of the PRC in the first session of its assessment
and selection, and was listed in the “Financial Talent Pool” of the Ministry of Finance
of the PRC.
Ms. Yuan Ying, born in 1978, Chinese
Ms. Yuan became the Person in Charge of Finance of the Company in July 2024. She
has been the Deputy General Manager (responsible for daily operations) of the Finance
Department of the Company since December 2023. She has been a Director of China
Life Nianfeng Insurance Agency Co., Ltd. since September 2024. She successively served
as an Assistant to the General Manager of the Accounting Department, and an Assistant
to the General Manager and the Deputy General Manager of the Finance Department
of the Company from 2018 to 2023. Ms. Yuan graduated from Peking University with
a master’s degree in management.
Annual Report 2024 | Corporate Governance
66
Mr. Heng Victor Ja Wei, born in 1977, British
Mr. Heng is the managing partner of Morison Heng. He holds a Master of Science
degree of the Imperial College of Science, Technology and Medicine, the University of
London, and is a member of The Hong Kong Institute of Certified Public Accountants
and a fellow of The Association of Chartered Certified Accountants. Mr. Heng has over
20 years of experience in accounting and auditing for private and public companies and
financial consultancy. He serves as an Independent Non-executive Director of each of Lee
& Man Chemical Company Limited, Matrix Holdings Limited, TradeGo Fintech Limited
and Veson Holdings Limited, all of which are listed on the main board of the HKSE, as
well as an Independent Non-executive Director of Bacui Technologies International Ltd.,
which is listed on the Singapore Exchange.
COMPANY SECRETARY
Positions Held by Current Directors, Supervisors and Senior Management in Shareholders of the Company
Name
Name of shareholder
Position
Term
Cai Xiliang
China Life Insurance (Group) Company
Chairman
Since November 2024
Li Mingguang
China Life Insurance (Group) Company
Vice President
Since November 2023
Wang Junhui
China Life Insurance (Group) Company
Chief Investment Officer
Since August 2016
Hu Jin
China Life Insurance (Group) Company
General Manager of the
Finance Department
Since June 2024
Hu Rong
China Life Insurance (Group) Company
Person in Charge of
Compliance
Since April 2024
Deputy General Manager
of the Legal Compliance
Department and the Deputy
General Manager (responsible
for daily operations) of
the Risk Management
Department
Since December 2023
Gu Haishan
China Life Insurance (Group) Company
Person in Charge of Audit
Since April 2024
Director of the Audit Bureau
and the General Manager of
the Audit Center
Since June 2024
Annual Report 2024 | Corporate Governance
67
Remuneration of Directors, Supervisors and Senior
Management
Decision-making procedures for the remuneration of Directors,
Supervisors and senior management: The remuneration of
Directors and Supervisors are approved by shareholders
at general meetings, whereas the remuneration of senior
management is approved by the Board of Directors.
Abstention from voting by Directors during the discussion
of their remuneration at Board meetings: The “Proposal in
relation to the Remuneration of Directors and Supervisors
of the Company” and the “Proposal in relation to the
Remuneration of Directors and Supervisors of the Company
for the Year 2023” were considered and approved at the
thirty-sixth meeting of the seventh session of the Board of
Directors and the tenth meeting of the eighth session of the
Board of Directors of the Company, respectively. The Board
of Directors agreed to submit the proposals to the general
meeting for approval, and all Directors abstained from voting
during the discussion of their remuneration.
Specific recommendations given by the Nomination and
Remuneration Committee with respect to the remuneration
of Directors, Supervisors and senior management: The
“Proposal in relation to the Remuneration of Directors and
Supervisors of the Company” and the “Proposal in relation to
the Remuneration of Senior Management of the Company”,
the “Proposal in relation to the Remuneration of Directors
and Supervisors of the Company for the Year 2023” and
the “Proposal in relation to the Remuneration of Senior
Management of the Company for the Year 2023” were
considered and approved at the fourteenth meeting of the
Nomination and Remuneration Committee of the seventh
session of the Board of Directors and the fifth meeting
of the Nomination and Remuneration Committee of the
eighth session of the Board of Directors of the Company,
respectively. Having been fully reviewed by the Directors
present at the meeting, the Nomination and Remuneration
Committee unanimously approved the proposals and agreed
to submit the same to the Board of Directors for review.
Basis for determination of the remuneration of Directors,
Supervisors and senior management: The remuneration
of Directors, Supervisors and senior management are
determined based on the operating results of the Company
and the performance appraisal conducted by the Board of
Directors, and in accordance with the measures for the
administration of remuneration of the Company.
Actual payment of remuneration to Directors, Supervisors
and senior management: During the Reporting Period, the
remuneration actually received by all Directors, Supervisors
and senior management (including the resigned and retired
Directors, Supervisors and senior management) from the
Company totalled RMB16.2440 million. In accordance
with the relevant requirements of the measures for the
administration of remuneration of the Company, the standard
for performance-based bonuses (as part of the remuneration)
payable to Directors, Supervisors and senior management of
the Company in 2024 has not yet been determined.
EMPLOYEES AND BRANCHES
Employees
Number of employees of the Company
96,650
Number of employees of the
Company’s major subsidiaries
2,039
Employees in total
98,689
Retired employees of the Company and
its major subsidiaries for which extra
costs have to be incurred
79
As at the end of the Reporting Period, the composition of
the employees of the Company and its major subsidiaries
is as follows:
Class of professional composition
Number of
employees
Management and administration
19,229
Sales and sales management
43,231
Finance and auditing
4,562
Insurance verification, claim processing
and customer services
22,076
Other expertise and technicians
6,120
Others
3,471
Total
98,689
Class of education level
Number of
employees
Master and above
7,586
Bachelor
71,710
College diploma
17,445
Secondary school
783
Others
1,165
Total
98,689
Annual Report 2024 | Corporate Governance
68
Employee Diversity
The Company attached great importance to the enhancement
of its development and competitiveness arising from the
diversity of its employees. As at the end of the Reporting
Period, there were four female members in the senior
management of the Company, accounting for 50% of the
senior management; the percentage of female employees
of the Company and its major subsidiaries was 57%.
Remuneration Policy for Employees
The Company has established a remuneration and incentive
system with reference to employee’s positions, the
Company’s performance and market conditions. In accordance
with the regulatory requirements and its needs for business
operations and management, the Company has developed
the systems for the deferred payment of remuneration
and the recovery and deduction of performance-based
remuneration for Directors, Supervisors, senior management
and personnel in key positions in 2023, so as to balance the
relationship between short-term and long-term objectives, as
well as returns and risks, ensure that remuneration incentives
align with high-quality performance and prevent aggressive
business practices and illegal activities, which consistently
promoted the stable operations and sustainable development
of the Company. During the Reporting Period, performance-
based remuneration was recovered and deducted for a total
of 2 individuals, amounting to RMB1.1064 million in total
(including suspending unpaid portion).
Training Plans
In 2024, the Company focused on enhancing the qualities
and abilities of its cadres and employees in all aspects.
According to the “four-in-one” training system, the
Company collaborated closely with Party schools, colleges
and universities to provide continuous employment and
on-the-job training for leading cadres at the headquarters,
provincial, municipal and county levels. It launched training
programs for young and middle-aged cadres as well as
rotation training for young cadres in talent pools, and
advanced full coverage of the three-year and four-stage
training program for new employees. Focusing on nurturing
professional talents across various business lines and
sectors, the Company further refined its training systems
and mechanisms, developed a team of full-time and part-
time lecturers and a training management team, optimised
training methods and approaches through innovation, and
strived to enhance training quality and efficiency, which
ensured a supply of high-quality talents for the Company’s
high-quality development.
Branches
As at the end of the Reporting Period, the Company had
approximately 18,000 branches (including branches at the
provincial or prefecture level, sub-branches, sales offices
and sales & services offices).
Annual Report 2024 | Corporate Governance
69
accountable to shareholders of the Company with respect to
the assets and resources entrusted to it by the shareholders,
and performs its duties on corporate governance. All members
of the Board have taken initiatives to look into the Company’s
affairs and have had a comprehensive understanding of the
Company’s businesses. They have devoted sufficient time
in performing their duties as Directors with due care and in
a diligent and efficient manner. By setting up mechanisms
including regular reporting of business development
strategies and marketing tactics, the management of the
Company can periodically report the business operations,
development strategies and marketing tactics to the Board,
which provides a basis for the Board’s decision-making.
The Company has actively promoted the development of
corporate governance, continuously improved its corporate
governance structure and enhanced its scientific decision-
making ability. In order to improve the decision-making
efficiency of the specialised Board committees, the Board
has established five specialised Board committees, i.e.
the Audit Committee, the Nomination and Remuneration
Committee, the Risk Management and Consumer Rights
Protection Committee, the Strategy and Assets and Liabilities
Management Committee, and the Connected Transactions
Control Committee. These specialised Board committees
conduct studies on specific matters, hold meetings both
on a regular and an ad-hoc basis, communicate with the
management, provide advice and recommendations for the
Board’s consideration, and deal with matters entrusted or
With the establishment of a corporate governance system
with reasonably designed structure, well-developed
mechanism, strict rules and regulations, as well as high
efficiency in operation as its core objectives, the Company
constantly promotes the development of its corporate
governance, strictly performs its obligation of information
disclosure, enhances its transparency and actively serves
the interests of public investors so as to enhance its image
and position in the capital market.
The Company has set up a corporate governance structure
with well-defined duties and responsibilities strictly in
accordance with relevant laws, regulations and regulatory
requirements, including the Company Law and the Securities
Law. The corporate governance structure of the Company
generally meets the regulatory requirements of its listed
jurisdictions and the relevant provisions. The Company has
carried out its corporate governance procedures strictly in
accordance with relevant laws, regulations and regulatory
requirements, including the Company Law and the Securities
Law, as well as the requirements of its Articles of Association
and procedural rules. The shareholders’ general meeting,
Board of Directors and Board of Supervisors of the Company
have been functioning independently and coordinately.
In accordance with the regulatory requirements of its listed
jurisdictions and the relevant provisions of its Articles of
Association, the Company has continuously improved the
decision-making mechanism of the Board. The Board is
REPORT OF CORPORATE GOVERNANCE
OVERVIEW OF CORPORATE GOVERNANCE
The Company implements good corporate governance policies and strongly believes that through fostering sound corporate
governance, further enhancing its transparency and establishing an effective system of accountability, the Company can
operate in a more systematic manner, make decisions in a more scientific way, and boost the confidence of investors.
Board of
Directors
Shareholders’
General Meeting
Board of
Supervisors
Audit
Committee
Nomination
and
Remuneration
Committee
Risk Management
and
Consumer Rights
Protection
Committee
Corporate Governance Structure Chart
Strategy and
Assets and
Liabilities
Management
Committee
Connected
Transactions
Control
Committee
Board Secretary
Company Secretary
Board of Directors’ Office/
Board of Supervisors’ Office/
Investor Relations Department
Annual Report 2024 | Corporate Governance
70
authorised by the Board, for the purposes of improving the
Board’s efficiency and intensifying the Board’s functions.
The Board of Supervisors of the Company has carried out its
work and diligently performed its duties in accordance with
the Articles of Association and the “Procedural Rules for the
Board of Supervisors Meetings”. Members of the Board of
Supervisors attended the shareholders’ general meetings
and the Board of Supervisors meetings, participated in
the Board meetings and the meetings of the specialised
Board committees based on their work allocation, and
conducted investigations on local branches to have an in-
depth understanding of the implementation of the decisions
made by the Board, so as to diligently perform their role of
supervision.
The Company has made information disclosure in a timely,
open and transparent manner pursuant to the requirements
of the listing rules of its listed jurisdictions. The Company has
continuously improved its management of investor relations
and enriched its communication with investors in both
form and substance, thus ensuring that all its shareholders
enjoy equal rights and have access to information about the
Company in an open, fair, true and accurate manner.
The Company has intensified its management of subsidiaries
on an ongoing basis by optimising the management
mechanism. The Company has formulated the “Measures
for the Administration of Subsidiaries and Major Associates”
to strengthen its management of performance of duties
by the Directors, Supervisors and senior management
designated to non-wholly owned subsidiaries and major
associates, as well as its support to their duty performance,
thereby increasing the Company’s management and control
of subsidiaries in corporate governance.
The Company has applied the principles of the Corporate
Governance Code (the “CG Code”) as set out in Appendix
C1 to the Listing Rules of the HKSE. Save for code provision
C.2.1 of the CG Code, the Company has complied with all
code provisions of the CG Code during the Reporting Period.
Pursuant to code provision C.2.1, the roles of chairman
and chief executive should be separate and not be held
by the same individual. After Mr. Bai Tao resigned as the
Chairman of the Board of the Company on 30 September
2024, Mr. Li Mingguang assumed the roles and duties of
the Chairman of the Board while continuing to act as the
President of the Company, which deviated from the above
code provision C.2.1. However, such arrangement was
temporary. Under the oversight of other Board members, the
Board maintained an appropriately balanced power structure
to ensure adequate checks and protect the interests of the
Company and its shareholders. With the appointment of Mr.
Cai Xiliang as the new Chairman of the Board effective from
4 December 2024, the Company has re-complied with code
provision C.2.1 of the CG Code.
During the Reporting Period, the Company was awarded
the “Hong Kong Corporate Governance Excellence Award
2024”. It was also awarded, among others, Grade A in the
assessment by the SSE of information disclosure of listed
companies for the year 2023-2024, the “Most Honored
Company in Asia” in the assessment and selection of the
“2024 Best Management Team in Asia” awards by the
Institutional Investor, and the “Best Practice Case of the
Board of Directors’ Office of Listed Companies for the Year
2024” by the China Association for Public Companies (the
“CAPCO”).
SHAREHOLDERS’ GENERAL MEETING
The shareholders’ general meeting, as an organ of the
highest authority of the Company, exercises its duties and
functions in accordance with relevant laws. Its duties and
powers include the election, appointment and removal of
Directors and Non-employee Representative Supervisors,
review and approval of the reports of the Board of Directors
and the Board of Supervisors, review and approval of the
annual budget and final accounts of the Company, and
any other matters required by the Articles of Association
to be approved by way of resolution of the shareholders’
general meeting. The Company ensures that all shareholders
are equally treated so as to ensure that the rights of all
shareholders are protected, including the right of access to
information in relation to, and the right to vote in respect of,
major matters of the Company. The Company has the ability
to operate and manage its business autonomously, and is
separate and independent from its controlling shareholder
in its business operations, personnel, assets and financial
matters.
Shareholders’ general meetings convened during the Reporting Period are as follows:
Session of the meeting
Date of the meeting
Index for websites on which
resolutions were published
Date of publication of
resolutions
2023 Annual General Meeting
27 June 2024
www.sse.com.cn
www.hkexnews.hk
www.e-chinalife.com
27 June 2024
First Extraordinary General
Meeting 2024
30 October 2024
www.sse.com.cn
www.hkexnews.hk
www.e-chinalife.com
30 October 2024
Annual Report 2024 | Corporate Governance
71
Attendance records of the resigned or retired Directors at
the shareholders’ general meetings convened during the
Reporting Period are as follows:
Name of Director
Type of Director
Number of
shareholders’
general
meetings
required to
attend for
the year
Number of
meetings
attended in
person
Bai Tao
Executive Director
1
1
Zhuo Meijuan
Non-executive Director
1
0
Huang Yiping
Independent Director
2
2
BOARD
The Board is the standing decision-making body of the
Company and its main duties include: performing the
function of corporate governance of the Company, convening
shareholders’ general meetings, implementing resolutions
passed at such meetings, improving the Company’s corporate
governance policies, approving the Company’s development
strategies and operation plans, formulating and supervising
the Company’s financial policies, annual budgets and financial
reports, providing an objective evaluation on the Company’s
operating results in its financial reports and other disclosure
documents, dealing with senior management personnel
matters, arranging for Directors and senior management
to attend various training courses, attaching importance to
the enhancement of their professional quality, reviewing
the compliance policies of the Company, assessing the
internal control systems of the Company and reviewing
the compliance by the Company with the CG Code. The
day-to-day management and operation of the Company
are delegated to the management. The responsibilities of
Non-executive Directors and Independent Directors include,
without limitation, regularly attending meetings of the Board
and the specialised Board committees of which they are
members, providing opinions at meetings of the Board and
the specialised Board committees, resolving any potential
conflict of interest, serving on the Audit Committee, the
Nomination and Remuneration Committee and other
specialised Board committees, and inspecting, supervising
and reporting on the performance of the Company. The
Board is accountable to the shareholders of the Company
and reports to them.
In 2024, the Company successfully completed the re-
election of its Board of Directors, with the eighth session
of the Board of Directors of the Company elected at the
2023 Annual General Meeting of the Company. Currently, the
Board of the Company comprises eleven members, including
four Executive Directors, three Non-executive Directors and
four Independent Directors. The number of Independent
Directors complies with the minimum requirement of three
Independent Directors and the requirement that at least
one-third of the Board be represented by Independent
Nineteen proposals, including the “Proposal in relation to
the Report of the Board of Directors of the Company for the
Year 2023”, the “Proposal in relation to the Report of the
Board of Supervisors of the Company for the Year 2023”, the
“Proposal in relation to the Financial Report of the Company
for the Year 2023” and the election of Directors of the
eighth session of the Board of Directors, were considered
and approved by a combination of on-site and online voting,
and the “Duty Report of the Independent Directors of the
Company for the Year 2023” and the “Report on the Overall
Status of Connected Transactions of the Company for the
Year 2023” were debriefed and reviewed at the 2023 Annual
General Meeting held in Beijing on 27 June 2024.
Two proposals, namely the “Proposal in relation to the
Election of Mr. Cai Xiliang as an Executive Director of the
Eighth Session of the Board of Directors of the Company”
and the “Proposal in relation to the 2024 Interim Profit
Distribution Plan of the Company”, were considered and
approved by a combination of on-site and online voting at
the First Extraordinary General Meeting 2024 held in Beijing
on 30 October 2024.
Attendance records of the current Directors at the
shareholders’ general meetings convened during the
Reporting Period are as follows:
Name of Director
Type of Director
Number of
shareholders’
general
meetings
required to
attend for
the year
Number of
meetings
attended in
person
Cai Xiliang
Executive Director
0
0
Li Mingguang
Executive Director
2
2
Liu Hui
Executive Director
2
2
Ruan Qi
Executive Director
2
1
Wang Junhui
Non-executive Director
2
2
Hu Jin
Non-executive Director
0
0
Hu Rong
Non-executive Director
0
0
Lam Chi Kuen
Independent Director
2
2
Zhai Haitao
Independent Director
2
2
Chen Jie
Independent Director
2
2
Lu Feng
Independent Director
0
0
Annual Report 2024 | Corporate Governance
72
Directors under the regulatory rules of the industry and its
listed jurisdictions. All members of the Board have devoted
sufficient time in dealing with the affairs of the Board
and attended the relevant training courses organised by
external regulatory authorities and the Company according
to regulatory requirements. They have referred to regulatory
documents on a regular basis so as to keep themselves
informed of the regulatory development in a timely manner.
The Company has applied director’s liability insurances for its
Directors, which provide protection to Directors for liabilities
that might arise in the course of their performance of duties
according to law and facilitate Directors to fully perform
their duties. So far as the Company is aware, no financial,
business, family or other material relationship exists among
members of the Board of Directors, the Board of Supervisors
and the senior management.
In 2024, Independent Directors of the Board of the Company
possessed extensive experience in various fields, such as
macro economy, financial management, legal compliance,
accounting and auditing. The Company also complies with
the requirement of the Listing Rules of the HKSE that at least
one of its Independent Directors has appropriate professional
qualifications or accounting qualifications or related financial
management expertise. As required under the Listing Rules
of the SSE and the HKSE, the Company has obtained a
written confirmation from each of its Independent Directors in
respect of their independence. The Company is of the opinion
that all of the Independent Directors are independent of the
Company and strictly perform their duties as Independent
Directors. Pursuant to the Articles of Association, Directors
shall be elected at the shareholders’ general meeting for a
term of three years and may be re-elected on expiry of the
three-year term. However, Independent Directors may not
serve for more than six years.
The Company has developed a well-established procedure
for nomination and election of Directors, under which the
Board shall, when nominating Directors, consider their
professional ability and conduct, and also take into account
the requirement for diversity of the Board members.
Complementarity among the Board members in aspects
including but not limited to gender, age, culture, educational
background, professional experience, skills and expertise will
be considered in the selection of candidates for Directors.
The Company will also take into account factors based
on its own business model and specific needs from time
to time. The ultimate decision will be based on merit and
contribution that the selected candidates will bring to the
Board. The Board and the Nomination and Remuneration
Committee will from time to time discuss the measurable
objective for achieving diversity of the Board. In relation to
gender diversity, the Company sets its phased objective
for 2024 as having three female Directors to serve on the
Board. The above objective of gender diversity has been
achieved as scheduled. The Company will also continue
to take active actions in identifying female Directors and
management members. The Company believes that the
gender diversity in the Board would bring more inspiration
to the Board and enhance the business development of the
Company. Currently, the Board of the Company comprises
eleven members with extensive experience in various
fields, such as financial management, macro economy,
financial accounting, law and management. The diversified
composition of the Board is as follows:
Directors by type
Executive
Director
Non-executive
Director
Independent
Director
Number of Directors
4 persons
3 persons
4 persons
Directors by location
Mainland China
Hong Kong, China
Number of Directors
9 persons
2 persons
Directors by gender
Male
Female
Number of Directors
8 persons
3 persons
Meetings of the Board are held both on a regular and an ad-
hoc basis. Regular meetings are convened at least four times
a year for the examination and approval of proposals, such
as annual report, interim report, quarterly reports, related
financial reports, and major business operations of the year.
Meetings are convened by the Chairman of the Board and a
notice is given to all Directors 14 days before such meetings.
Agendas and related documents are sent to the Directors
at least 3 days prior to such meetings. In 2024, all notices,
agendas and related documents in respect of such regular
Board meetings were sent to Directors in compliance with
the above requirements. By fully reviewing all the relevant
proposals, the Board has confirmed that the information
contained in its periodic reports and financial reports is true,
accurate and complete and contains no false representations,
misleading statements or material omissions, and no event
or situation which would have material adverse impacts on
the Company’s ongoing operation has been found.
The practice of obtaining Board consent through the
circulation of written resolutions does not constitute a
regular Board meeting. An ad-hoc Board meeting may be
convened in urgent situations if requisitioned by any of
the following: shareholders representing over one-tenth of
voting shares, Directors constituting more than one-third
of the total number of Directors, the Board of Supervisors,
more than two Independent Directors, the Chairman of the
Board or the President of the Company. If the resolution
to be considered at such ad-hoc Board meetings has been
circulated to all the Directors and more than half of the
Directors having voting rights approve such resolution by
signing the resolution in writing, the ad-hoc Board meeting
need not be physically convened and such resolution in
writing shall become an effective resolution.
Annual Report 2024 | Corporate Governance
73
Board meetings convened during the Reporting Period are as follows:
Session of the meeting
Date of
the meeting
Resolutions adopted at the meeting
Thirty-fourth meeting of the
seventh session of the Board
25 January 2024
Four proposals, including the “Proposal in relation to the Asset
Strategic Allocation Plan of the Company for the Years from
2024 to 2026”, were considered and approved.
Thirty-fifth meeting of the
seventh session of the Board
28 February 2024
One proposal, namely the “Proposal in relation to the ‘Product
Tracing Report of the Company for 2023’”, was considered
and approved.
Thirty-sixth meeting of the
seventh session of the Board
27 March 2024
44 proposals, including the “Proposal in relation to the Financial
Report of the Company for the Year 2023” and the “Proposal
in relation to the Remuneration of Directors and Supervisors
of the Company”, were considered and approved, and six
reports, including the “Report on the Business Operations
and Management of the Company for 2023”, were debriefed.
Thirty-seventh meeting of the
seventh session of the Board
26 April 2024
13 proposals, including the “Proposal in relation to the First
Quarter Report of the Company for 2024” and the “Proposal
in relation to the ‘Report of Corporate Governance of the
Company for the Year 2023’”, were considered and approved,
and four reports, including the “Report on the Company’s
Business Operations for the First Quarter of 2024 and Work
Arrangement for the Next Stage”, were debriefed.
Thirty-eighth meeting of the
seventh session of the Board
24 May 2024
Three proposals, including the “Proposal in relation to the
Nomination of Mr. Lu Feng as a Candidate for Independent
Directors of the Eighth Session of the Board of Directors of
the Company”, were considered and approved.
Thirty-ninth meeting of the
seventh session of the Board
11 June 2024
Three proposals, including the “Proposal in relation to the
‘Capital Planning of the Company for the Years from 2024
to 2026’” and the “Proposal in relation to the Appointment
of the Auditors of the Company for the Year 2024”, were
considered and approved.
Fortieth meeting of the
seventh session of the Board
26 June 2024
Three proposals, including the “Proposal in relation to the
Arrangement for the 2024 Interim Profit Distribution of the
Company”, were considered and approved.
First meeting of the eighth
session of the Board
27 June 2024
Two proposals, including the “Proposal in relation to the
Composition of Specialised Committees of the Eighth Session
of the Board of Directors of the Company”, were considered
and approved.
Second meeting of the eighth
session of the Board
10 July 2024
One proposal, namely the “Proposal in relation to the
Designation of Ms. Liu Hui to Assume the Roles and Duties
of the Board Secretary of the Company”, was considered
and approved.
Third meeting of the eighth
session of the Board
15 July 2024
One proposal, namely the “Proposal in relation to the Financing
Arrangement for Project Jincheng”, was considered and
approved.
Annual Report 2024 | Corporate Governance
74
If a Director is materially interested in a matter to be
considered by the Board, the Director having such conflict
of interest shall have no voting right on the matter to be
considered and shall not be counted in the quorum for
the Board meeting. All Directors shall have access to the
advice and services of the Board Secretary and the Company
Session of the meeting
Date of
the meeting
Resolutions adopted at the meeting
Fourth meeting of the eighth
session of the Board
25 July 2024
Two proposals, including the “Proposal in relation to the
Solvency Report of the Company for the Second Quarter of
2024”, were considered and approved.
Fifth meeting of the eighth
session of the Board
29 August 2024
Ten proposals, including the “Proposal in relation to the
Financial Report of the Company for the First Half of 2024”,
were considered and approved, and six reports, including the
“Report on the Company’s Business Operations for the First
Half of 2024 and Work Arrangement for the Second Half of
2024”, were debriefed.
Sixth meeting of the eighth
session of the Board
30 September 2024
Three proposals, including the “Proposal in relation to the
Election of Mr. Li Mingguang, an Executive Director of the
Company, to Assume the Roles and Duties of the Chairman
of the Board of Directors”, were considered and approved.
Seventh meeting of the eighth
session of the Board
11 October 2024
One proposal, namely the “Proposal in relation to the
Nomination of Ms. Liu Hui as the Board Secretary of the
Company”, was considered and approved.
Eighth meeting of the eighth
session of the Board
30 October 2024
13 proposals, including the “Proposal in relation to the Election
of Mr. Cai Xiliang as the Chairman of the Eighth Session of
the Board of Directors of the Company” and the “Proposal in
relation to the Third Quarter Report of the Company for 2024”,
were considered and approved, and two reports, including
the “Report on the Company’s Business Operations for the
First Three Quarters of 2024 and Work Arrangement for the
Fourth Quarter of 2024”, were debriefed.
Ninth meeting of the eighth
session of the Board
15 November 2024
One proposal, namely the “Proposal in relation to the
Nomination of Ms. Hou Jin as an Assistant to the President
of the Company”, was considered and approved.
Tenth meeting of the eighth
session of the Board
17 December 2024
18 proposals, including the “Proposal in relation to the Results
of Performance Appraisal of Senior Management of the
Company for the Year 2023” and the “Proposal in relation
to the Renewal of the ‘Policy Management Agreement’ for
the Years from 2025 to 2027 between the Company and
China Life Insurance (Group) Company”, were considered
and approved, and one report, namely the “Audit Report on
the Solvency Risk Management System of the Company for
the Year 2024”, was debriefed.
Secretary. Detailed minutes of Board meetings regarding
matters considered by the Board and decisions reached,
including any concerns raised by Directors or dissenting
views expressed, are kept by the Board Secretary. Minutes
of Board meetings are available upon reasonable notice for
inspection and comment upon by Directors.
Annual Report 2024 | Corporate Governance
75
Currently, the eighth session of the Board of the Company
comprises the following members: Mr. Cai Xiliang, the
Chairman of the Board and an Executive Director, Mr. Li
Mingguang, Ms. Liu Hui and Mr. Ruan Qi, all being Executive
Directors, Mr. Wang Junhui, Ms. Hu Jin and Mr. Hu Rong,
all being Non-executive Directors, and Mr. Lam Chi Kuen,
Mr. Zhai Haitao, Ms. Chen Jie and Mr. Lu Feng, all being
Independent Directors. In June 2024, Ms. Zhuo Meijuan
retired as a Non-executive Director of the Company due
to the expiration of the term of the seventh session of
the Board. Due to the adjustment of work arrangements,
Mr. Bai Tao resigned from his positions as the Chairman
of the Board and an Executive Director of the Company in
September 2024. Due to his reappointment as a member
of the Monetary Policy Committee of the People’s Bank
of China, Mr. Huang Yiping resigned from his position as
an Independent Director of the Company and the relevant
positions in the specialised Board committees in March
2024, which took effect in November 2024.
In 2024, all members of the Board further developed and
refreshed their information and knowledge in aspects such
as laws and regulations of securities markets, regulatory
trends, macro economy and the development trend of the
insurance industry by attending special training courses on
certain topics as organised by the securities exchanges of the
Company’s listed jurisdictions, listed companies associations
and the Company itself. All current members of the Board of
the Company attended the on-site training program on anti-
money laundering. Mr. Li Mingguang, an Executive Director,
attended a training course for the chairman of the board of
directors and general managers as organised by the CAPCO
and a special training course for directors and supervisors
in 2024 as organised by the LCAB. Ms. Liu Hui and Mr.
Ruan Qi, both being Executive Directors, attended a training
course of the SSE for the first-time directors, supervisors and
senior management of listed companies in 2024 (Session
IV) and a special training course of the LCAB for directors
and supervisors in 2024. Mr. Wang Junhui, a Non-executive
Director, attended a special training course of the LCAB for
directors and supervisors in 2024.
Furthermore, in accordance with Rule 3.09D of the Listing
Rules of the HKSE, during the Reporting Period, Ms. Liu
Hui, Mr. Ruan Qi, Ms. Hu Jin, Mr. Hu Rong, Mr. Lu Feng
and Mr. Cai Xiliang, the new Directors, obtained the legal
advice referred to in Rule 3.09D of the Listing Rules of
the HKSE from Latham & Watkins LLP, the legal adviser
of the Company as to the laws of Hong Kong, on 8 May
2024, 8 May 2024, 25 July 2024, 25 July 2024, 25 July
2024 and 13 November 2024, respectively (all prior to their
appointments), and each Director has confirmed that he/
she understood all requirements under the Listing Rules
of the HKSE that are applicable to him/her as a director of
a listed issuer and the possible consequences of making a
false declaration or giving false information to the HKSE.
Pursuant to the “Measures for the Evaluation of the
Performance of Duties by Directors and Supervisors” of
the Company and other requirements, and after taking into
account the actual situation of its corporate governance,
the Company conducted an evaluation of the performance
of duties by Directors. Based on the self-assessment of
Directors and the evaluation of the Board of Supervisors, all
members of the Board of the Company were evaluated as
competent in their performance of duties in 2024.
Meetings and Attendance
During the Reporting Period, a total of 17 meetings (including 5 regular Board meetings and 12 ad-hoc Board meetings)
were held by the Board of the Company, of which 10 meetings were convened by way of on-site meeting, 7 meetings by
way of participation through communication tools. Attendance records of the current individual Directors are as follows:
Name of Director
Type of Director
Number of
meetings
required to
attend
Number of
meetings
attended in
person
Number of
meetings
participated
through
communication
tools
Number of
meetings
attended
by proxies
Number of
meetings
absent
Cai Xiliang
Executive Director
1
1
0
0
0
Li Mingguang
Executive Director
17
10
7
0
0
Liu Hui
Executive Director
13
8
5
0
0
Ruan Qi
Executive Director
13
6
5
2
0
Wang Junhui
Non-executive Director
17
7
7
3
0
Hu Jin
Non-executive Director
2
2
0
0
0
Hu Rong
Non-executive Director
2
2
0
0
0
Lam Chi Kuen
Independent Director
17
10
7
0
0
Zhai Haitao
Independent Director
17
9
7
1
0
Chen Jie
Independent Director
17
9
7
1
0
Lu Feng
Independent Director
1
1
0
0
0
Annual Report 2024 | Corporate Governance
76
Performance of Duties by Independent Directors
Currently, a total of four Independent Directors serve on the
Board of the Company, accounting for over one-third of the
total number of members of the Board and being in line with
the requirements of relevant laws and regulations, as well as
the Articles of Association. These four Independent Directors
possess extensive experience in various fields, such as
macro economy, financial management, legal compliance,
accounting and auditing, and serve as the Chairmen/
Chairpersons of the specialised Board committees. Other
than receiving their remuneration as Independent Directors
of the Company, they do not have any business or financial
interest in the Company and its subsidiaries, nor hold any
management positions in the Company. The Company has
received annual confirmation letters for self-inspection
from each of the Independent Directors to confirm their
independence and, after the assessment of the Board,
considered them to satisfy the criteria for independent
directors and the requirements of independence under the
regulatory rules of the Company’s listed jurisdictions.
Attendance of Meetings by Independent Directors
In 2024, all Independent Directors diligently fulfilled their
responsibilities by attending meetings of the Board and the
specialised committees, and special meetings of Independent
Directors convened by the Company, providing independent
opinions on matters considered by the Board in an objective
and fair manner, including connected transactions, the
nomination of Directors and senior management and their
remunerations, and annual and interim profit distribution
plans, thereby supporting the Board in making decisions in
a scientific manner. The Independent Directors remained
focused on the business operations and management of
the Company and proactively engaged in the development
of the specialised Board committees. They enhanced
communications with the management and functional
departments of the Company, attentively listened to relevant
work reports, and concentrated on matters related to the
Company’s strategic planning, major investment decisions,
Attendance records of the resigned or retired Directors of the Company at the Board meetings convened during the
Reporting Period are as follows:
Name of Director
Type of Director
Number of
meetings
required to
attend
Number of
meetings
attended in
person
Number of
meetings
participated
through
communication
tools
Number of
meetings
attended
by proxies
Number of
meetings
absent
Bai Tao
Executive Director
12
4
6
2
0
Zhuo Meijuan
Non-executive Director
7
3
3
1
0
Huang Yiping
Independent Director
16
7
7
2
0
Note: Directors who were unable to attend any meeting of the Board authorised other Directors to attend and vote at the meeting on their behalf.
key personnel appointments and removals, enterprise-wide
risk management, and amendments to important systems.
They actively discussed the details of proposals from the
Board and the specialised Board committees, and prompted
the relevant departments of the Company to provide
additional information as necessary in a timely manner.
In 2024, the Independent Directors of the Company gave
their consent to the matters resolved by the Board and the
specialised Board committees of the Company.
Communications between Independent Directors and All
Parties of the Company
In 2024, the Independent Directors of the Company held a
separate special meeting with the Chairman of the Board,
during which the Independent Directors put forward their own
views and opinions on various aspects such as the macro-
environment, business development, and risk management,
etc., based on their experience in their respective professional
fields. They gave constructive advice and recommendations
on matters including the transformation and development,
product strategy, and technological resource integration of
the Company, providing valuable advice to the Chairman of
the Board of the Company on advancing the high-quality
development of the Company.
Investigation and Research by Independent Directors and
the Trainings for Them
The Company placed a high value on communication with
its Independent Directors, organising on-site inspections
as well as investigation and research activities on its
investment projects to provide the Independent Directors
with insights into the overall post-investment management
of its real estate investments. Furthermore, the Independent
Directors of the Company listened to a special report on
product development with the topic of “From Product
Design to Benefit Creation”, which offered them a deeper
understanding of the product development process within
the framework of the Company’s asset-liability interaction
management strategy.
Annual Report 2024 | Corporate Governance
77
In the meanwhile, the Independent Directors further
developed and refreshed their professional knowledge by
actively attending special training courses on certain topics
as organised by the securities exchanges of the Company’s
listed jurisdictions, listed companies associations and the
Company itself. In 2024, the four Independent Directors of
the Company attended the on-site training program of the
Company on anti-money laundering. Mr. Lam Chi Kuen, Mr.
Zhai Haitao and Ms. Chen Jie, all being Independent Directors,
attended the SSE’s “Zero Tolerance and Disclosure Policy for
Securities Violations” corporate listing series, a special course
on the “Highlights and Advice of Anti-fraud Performance by
Independent Directors of Listed Companies”, a training
course of the CAPCO on the development of independent
directors’ capabilities and a special training course of the
LCAB for directors and supervisors in 2024. Mr. Lu Feng, an
Independent Director, obtained the legal advice referred to
in Rule 3.09D of the Listing Rules of the HKSE prior to his
appointment, and attended a pre-appointment training course
of the SSE for independent directors and a special course
on the “Highlights and Advice of Anti-fraud Performance by
Independent Directors of Listed Companies”.
Performance of Other Duties
In 2024, the Independent Directors of the Company seriously
listened to the issues that domestic and overseas investors
were concerned about from results briefings, ensuring the
communication and exchange of opinions with small- and
medium-sized shareholders. There were no obstacles
encountered by the four Independent Directors of the
Company during their performance of duties. In 2024,
the Company provided various materials to Independent
Directors, which facilitated them to comprehend information
associated with the insurance industry. Independent
Directors have access to adequate resources and may obtain
external professional advice to ensure the performance of
their duties. All Independent Directors obtained information
relating to the operation and management of the Company
through various channels, which therefore formed the basis
of their scientific and prudent decisions.
The Company believes that the composition of the Board
of Directors of the Company (including the number and
proportion of Independent Directors) and the above
mechanism for the performance of duties by Independent
Directors can ensure that independent views and input are
available to the Board of Directors.
CHAIRMAN AND PRESIDENT
As at the date of this report for disclosure, Mr. Cai Xiliang is
the Chairman of the Board of the Company. The Chairman
of the Board is the legal representative of the Company,
primarily responsible for convening and presiding over Board
meetings, ensuring the implementation of Board resolutions,
attending annual general meetings and arranging attendance
by Chairmen/Chairpersons of Board committees to answer
questions raised by shareholders, signing securities issued
by the Company and other important documents, providing
leadership for the Board to ensure that the Board works
effectively and performs its responsibilities, encouraging all
Directors to make a full and active contribution to the Board’s
affairs, and promoting a culture of openness and debate.
The Chairman of the Board is accountable to and reports to
the Board. As at the date of this report for disclosure, Mr. Li
Mingguang is the President of the Company. The President
is responsible for the day-to-day operations of the Company,
mainly including implementing strategies, policies, operation
plans and investment schemes approved by the Board,
formulating the Company’s internal management structure
and fundamental management systems, drawing up basic
rules and regulations of the Company, submitting to the
Board any requests for appointment or removal of senior
management and exercising other rights granted to him
under the Articles of Association and by the Board. The
President is fully accountable to the Board for the operations
of the Company.
BOARD OF SUPERVISORS
The composition of the Board of Supervisors and the
profile of each Supervisor are set forth in the section
headed “Directors, Supervisors, Senior Management and
Employees” of this report, and the details of the duty
performance of the Board of Supervisors are set forth in
the section headed “Report of the Board of Supervisors”.
AUDIT COMMITTEE
Currently, the Audit Committee of the eighth session of
the Board of the Company comprises Mr. Lam Chi Kuen,
Mr. Zhai Haitao and Ms. Chen Jie, all being Independent
Directors, with Mr. Lam Chi Kuen acting as the Chairman. All
members of the Audit Committee have extensive experience
in financial matters. The principal duties of the committee are
to review and supervise the preparation of the Company’s
financial reports, assess the effectiveness of the Company’s
internal control system, supervise the Company’s internal
audit system and its implementation, and recommend
the engagement or replacement of external auditors and
other tasks in relation to internal and external audits. The
committee is also responsible for communications between
the internal and external auditors and the establishment of
the internal whistleblowing mechanism of the Company.
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78
Meetings and Attendance
During the Reporting Period, seven meetings were held by the Audit Committee of the Board of the Company. Attendance
records of individual members are as follows:
Name of member
Position
Number of
meetings
attended in
person/Number
of meetings
required to
attend
Number of
meetings
attended by
proxies/Number
of meetings
required to
attend
Lam Chi Kuen
Independent Director, Chairman of the Audit
Committee of the eighth session of the Board
7/7
0/7
Zhai Haitao
Independent Director, member of the Audit
Committee of the eighth session of the Board
7/7
0/7
Chen Jie
Independent Director, member of the Audit
Committee of the eighth session of the Board
6/7
1/7
Notes:
1.
The number of meetings attended in person includes meetings attended on-site and by way of telephone or video conference.
2.
Directors who were unable to attend any meeting of specialised Board committees authorised other Directors to attend and vote at the meeting on their
behalf.
The meetings convened are as follows:
Meetings convened
Description
26 March 2024
Thirteenth meeting of the Audit Committee
of the seventh session of the Board
Thirteen proposals, including the “Proposal in relation to the Financial
Report of the Company for the Year 2023” and the “Proposal in
relation to the Appointment of PricewaterhouseCoopers for the
Implementation of the Agreed-upon Procedures of the Company for
the First Quarter of 2024”, were considered and approved.
25 April 2024
Fourteenth meeting of the Audit Committee
of the seventh session of the Board
Four proposals, including the “Proposal in relation to the First Quarter
Report of the Company for 2024”, were considered and approved,
and two reports, namely the “Report of PricewaterhouseCoopers
on the Results of Agreed-upon Procedures for the First Quarter of
2024” and the “Audit Report on the Asset and Liability Management
of the Company for the Year 2023”, were debriefed.
11 June 2024
Fifteenth meeting of the Audit Committee
of the seventh session of the Board
Two proposals, namely the “Proposal in relation to the Appointment
of Auditors for the Interim Review of the Company for 2024” and the
“Proposal in relation to the Appointment of Auditors of the Company
for the Year 2024”, were considered and approved.
26 June 2024
Sixteenth meeting of the Audit Committee
of the seventh session of the Board
One report, namely the “Report of Ernst & Young on the Interim
Review Plan for 2024”, was debriefed.
28 August 2024
First meeting of the Audit Committee
of the eighth session of the Board
Three proposals, including the “Proposal in relation to the Financial
Report of the Company for the First Half of 2024”, were considered
and approved, and one report, namely the “Report of Ernst & Young
on the Interim Review for 2024”, was debriefed.
Annual Report 2024 | Corporate Governance
79
Performance of Duties by the Audit Committee
In 2024, the Audit Committee of the Board of the
Company performed its relevant duties and functions
in strict compliance with the “Procedural Rules for the
Audit Committee Meetings”. During meetings of the
Audit Committee, all members reviewed the proposals in
relation to, among others, the audit of the Company, its
financial reports, selection and appointment of external
auditors, nomination of the Person in Charge of Finance,
internal control and compliance, and actively participated in
discussions at the meetings.
Reviewing and approving financial information of the
Company and the disclosure thereof. The Audit Committee
of the Board, according to its duties, reviewed and approved
the Company’s financial reports for the year 2023, the first
quarter of 2024, the first half of 2024 and the third quarter
of 2024. The Audit Committee was of the view that the
financial reports of the Company reflected the overall
situation of the Company in a true, accurate and complete
manner. By reviewing and monitoring the completeness of
financial statements, annual report and accounts, interim
report and quarterly reports of the Company, examining
significant matters such as financial statements and reports,
and focusing on changes in accounting estimates, changes
in major accounting items, compliance with accounting
standards, information on the difference between the
financial statements prepared under ASBE and IFRSs
and the major accounting policies under new accounting
standards, the Audit Committee guaranteed the accuracy,
completeness and consistency of the financial information
publicly disclosed by the Company.
Supervising and assessing the internal audits of the
Company. In 2024, the internal audit department of the
Company regularly updated the Audit Committee on the
progress of the Company’s internal audits, the development
of its audit system and significant audit matters. The Audit
Committee of the Board reviewed the proposals of the
Company in relation to, among others, the internal audit
work for 2023 and the internal audit work for the first half
of 2024, communicated any matters of concern in a timely
and effective manner, further understood the duties of the
Company’s audit department, and supervised the compliance
and effectiveness of the internal audit function. The Audit
Committee was of the view that the internal audit function
of the Company was effective during the Reporting Period.
Selecting and appointing external auditors and overseeing
their performance of duties. In 2024, the Audit Committee
was involved in selecting and appointing the auditors
for the interim review for 2024 and the auditors for the
annual audit for 2024 of the Company by reviewing the
overall arrangements and tender documents related to
such selection and appointment and having its members
participated in the on-site bid evaluations for the selection
and appointment of auditors. The Audit Committee performed
its review duty in a compliant manner and examined the
qualifications, professional capabilities and independence,
etc. of external auditors. It reviewed the “Proposal in relation
to the Appointment of Auditors for the Interim Review of
the Company for 2024” and the “Proposal in relation to
the Appointment of Auditors of the Company for the Year
2024”, and agreed to submit such proposals to the Board of
the Company for consideration. The Audit Committee highly
valued communication with external auditors and supervised
the performance of duties by the external auditors in a
diligent and responsible way. Besides regular meetings,
the Audit Committee convened communication meetings in
advance with external auditors so as to discuss the annual
audit plan of the Company, determine the service scope of
the annual audit, listen to the report given by the auditors
with respect to the results of the audit on and review of
periodic financial reports of the Company, and gave opinions
and advice on the agreed-upon procedures proposed annually
and quarterly by the external auditors of the Company and
the pre-approval of the service scope. Based on the duty
performance of the auditors for the annual audit, the Audit
Committee reported to the Board of the Company on its
oversight of the auditors’ performance for the year 2024.
Supervising and assessing the effectiveness of internal
control of the Company. The Audit Committee of the Board
provided guidance to the Company on the management of
internal control, devised the working plan for internal control
assessment, reviewed the work report on assessment
of internal control, and inspected the rectification of
problems identified in the internal control pursuant to the
“Standard Regulations on Corporate Internal Control” and
other domestic and overseas regulatory requirements.
Meetings convened
Description
29 October 2024
Second meeting of the Audit Committee
of the eighth session of the Board
One proposal, namely the “Proposal in relation to the Third Quarter
Report of the Company for 2024”, was considered and approved,
and one report, namely the “Report of Ernst & Young on the Results
of Agreed-upon Procedures for the Third Quarter of 2024 and the
Annual Review Plan”, was debriefed.
17 December 2024
Third meeting of the Audit Committee of the
eighth session of the Board
One proposal, namely the “Proposal in relation to the Amendments
to the ‘Accounting System of the Company’”, was considered and
approved.
Annual Report 2024 | Corporate Governance
80
The Audit Committee earnestly performed its duties and
responsibilities and monitored the Company to carry out its
work in compliance with laws and regulations pursuant to
the relevant requirements of the NFRA and the securities
exchanges of the Company’s listed jurisdictions. As required
by its duties and responsibilities, the Audit Committee
reviewed the annual work report on and working plan for
internal control assessment, and the annual compliance
report of the Company to ensure that its work was conducted
strictly according to the relevant regulatory requirements in
a reasonable and efficient manner.
NOMINATION AND REMUNERATION
COMMITTEE
Currently, the Nomination and Remuneration Committee of
the eighth session of the Board comprises Ms. Chen Jie,
an Independent Director, Mr. Wang Junhui, a Non-executive
Director, and Mr. Lam Chi Kuen, an Independent Director,
with Ms. Chen Jie acting as the Chairperson. The Nomination
and Remuneration Committee is mainly responsible
for reviewing the structure of the Board, its number of
members and composition and drawing up plans for the
appointment, succession and appraisal criteria of Directors
and senior management. The committee is also responsible
for formulating training and remuneration policies for the
senior management of the Company. The Nomination and
Remuneration Committee, as an advisor to the Board on the
nomination of Directors, shall first discuss and agree on the
list of candidates to be nominated as new Directors, following
which such candidates are recommended to the Board.
The Board shall then determine whether such candidates
should be proposed for election at the shareholders’ general
meeting. The major criteria considered by the Nomination
and Remuneration Committee and the Board are educational
background, management and research experience in the
insurance industry, and the candidates’ commitment to the
Company. As to the nomination of Independent Directors,
the Nomination and Remuneration Committee will give
special consideration to the independence of the relevant
candidates. The Nomination and Remuneration Committee
determines, with delegated responsibility by the Board, the
specific remuneration packages of all Executive Directors
and senior management. The fixed salary of the Executive
Directors and other members of senior management are
determined in accordance with market levels and their
respective positions, and the amount of their performance-
related bonuses is determined according to the results of
performance appraisals. Directors’ fees and the volume of
stock appreciation rights to be granted are determined with
reference to market levels and the actual circumstances of
the Company.
Meetings and Attendance
During the Reporting Period, eight meetings were held by the Nomination and Remuneration Committee of the Board of
the Company. Attendance records of individual members are as follows:
Name of member
Position
Number of
meetings
attended in
person/Number
of meetings
required to
attend
Number of
meetings
attended by
proxies/Number
of meetings
required to
attend
Chen Jie
Independent Director, Chairperson of the
Nomination and Remuneration Committee of the
eighth session of the Board
7/8
1/8
Wang Junhui
Non-executive Director, member of the Nomination
and Remuneration Committee of the eighth
session of the Board
6/8
2/8
Lam Chi Kuen
Independent Director, member of the Nomination
and Remuneration Committee of the eighth
session of the Board
8/8
0/8
Notes:
1.
The number of meetings attended in person includes meetings attended on-site and by way of telephone or video conference.
2.
Directors who were unable to attend any meeting of specialised Board committees authorised other Directors to attend and vote at the meeting on their
behalf.
Annual Report 2024 | Corporate Governance
81
The meetings convened are as follows:
Meetings convened
Description
26 March 2024
Fourteenth meeting of the Nomination and
Remuneration Committee of the seventh
session of the Board
Twenty proposals, including the “Proposal in relation to the
Remuneration of Directors and Supervisors of the Company”, were
considered and approved.
25 April 2024
Fifteenth meeting of the Nomination and
Remuneration Committee of the seventh
session of the Board
Three proposals, including the “Proposal in relation to the Nomination
of Mr. Xu Chongmiao as the Chief Compliance Officer of the
Company”, were considered and approved.
24 May 2024
Sixteenth meeting of the Nomination and
Remuneration Committee of the seventh
session of the Board
One proposal, namely the “Proposal in relation to the Nomination of
Mr. Lu Feng as a Candidate for Independent Directors of the Eighth
Session of the Board of Directors of the Company”, was considered
and approved.
30 September 2024
First meeting of the Nomination and
Remuneration Committee of the eighth
session of the Board
One proposal, namely the “Proposal in relation to the Nomination of
Mr. Cai Xiliang as a Candidate for Executive Directors of the Eighth
Session of the Board of Directors of the Company”, was considered
and approved.
11 October 2024
Second meeting of the Nomination and
Remuneration Committee of the eighth
session of the Board
One proposal, namely the “Proposal in relation to the Nomination of
Ms. Liu Hui as the Board Secretary of the Company”, was considered
and approved.
29 October 2024
Third meeting of the Nomination and
Remuneration Committee of the eighth
session of the Board
One proposal, namely the “Proposal in relation to the Performance
Target Contracts of Senior Management of the Company for the
Year 2024”, was considered and approved.
15 November 2024
Fourth meeting of the Nomination and
Remuneration Committee of the eighth
session of the Board
One proposal, namely the “Proposal in relation to the Nomination
of Ms. Hou Jin as an Assistant to the President of the Company”,
was considered and approved.
17 December 2024
Fifth meeting of the Nomination and
Remuneration Committee of the eighth
session of the Board
Three proposals, including the “Proposal in relation to the
Remuneration of Directors and Supervisors of the Company for the
Year 2023”, were considered and approved.
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82
Performance of Duties by the Nomination and
Remuneration Committee
In 2024, the Nomination and Remuneration Committee of
the Board of the Company performed its relevant duties and
functions in strict compliance with the “Procedural Rules for
the Nomination and Remuneration Committee Meetings”. All
members of the Nomination and Remuneration Committee
performed their obligations in a responsible manner and
reviewed the proposals on the nomination of Directors of
the eighth session of the Board and senior management of
the Company, their business objectives and performance
appraisal results, the remuneration of Directors, Supervisors
and senior management, and the reports on the duty
performance of the Audit Committee and the Nomination
and Remuneration Committee. During meetings of the
Nomination and Remuneration Committee of the Board,
all members actively participated in discussions and gave
guiding opinions on the proposals considered and discussed
at the meetings.
Nomination and proposed appointment of Directors and
senior management officers of the Company and the Board
diversity policy. The Company firmly believes that the Board
diversity may enhance the decision-making capability of the
Board, and considers the Board diversity as a key factor for
maintaining a sound corporate governance standard and
achieving the sustainable development of the Company.
In 2024, in accordance with the “Procedural Rules for the
Nomination and Remuneration Committee Meetings” and
the Board diversity policy, the Nomination and Remuneration
Committee actively participated in the re-election of the
Board and reviewed the proposals on the nomination of the
candidates for Directors of the eighth session of the Board.
The Nomination and Remuneration Committee seriously
reviewed the structure of the Board, its number of members
and composition (including taking into account diversity
factors, such as gender, age, cultural and educational
background, skills, expertise and experience), fully reviewed
the professional qualifications and industrial background of
the candidates for Directors of the eighth session of the
Board and members of the Board committees, and examined
the independence and qualifications of the candidates
for Independent Directors and provided opinions on its
review. Furthermore, the Nomination and Remuneration
Committee reviewed the proposals on the nomination of
senior management of the Company, and conducted a
careful assessment on the qualifications, skills, expertise
and experience of candidates to ensure that the candidates
met the requirements set by the Company, and agreed to
submit such proposals to the Board for consideration.
Proposing remuneration policy of Directors, Supervisors and
senior management of the Company. The Nomination and
Remuneration Committee of the Board took into account
various factors such as business development management,
strategic investment decisions, and corporate governance,
reviewed the proposals on the remuneration of Directors,
Supervisors and senior management of the Company for
the year 2023, approved the terms of service contracts
between the Company and each of the Executive Directors,
Non-executive Directors and Independent Directors and
pushed forward the signing of service contracts between
the Company and all Directors.
Carrying out the evaluation of the performance of duties
by Directors, Supervisors and senior management of the
Company and their performance appraisal. The Nomination
and Remuneration Committee of the Board reviewed
proposals on the results of evaluating the performance of
duties by Directors of the Company for the year 2023, the
results of performance appraisal of senior management of
the Company for the year 2023 and the performance target
contracts of senior management for the year 2024, and made
recommendations to the Board in respect of matters such
as the determination of performance target, performance
appraisal procedures and results.
RISK MANAGEMENT AND CONSUMER RIGHTS
PROTECTION COMMITTEE
Currently, the Risk Management and Consumer Rights
Protection Committee of the eighth session of the Board
comprises Mr. Lu Feng, an Independent Director, Mr. Ruan Qi,
an Executive Director, Ms. Hu Jin and Mr. Hu Rong, both being
Non-executive Directors, and Ms. Chen Jie, an Independent
Director, with Mr. Lu Feng acting as the Chairman. The Risk
Management and Consumer Rights Protection Committee
is mainly responsible for formulating the Company’s system
of risk control benchmarks, establishing well-developed risk
management and internal control systems and the system for
the management of consumer rights protection, reviewing
the Company’s risk preference, risk tolerance and the work
reports from the senior management and the consumer
rights protection department, formulating the Company’s
risk management policy and major policy on consumer rights
protection, reviewing the assessment reports in relation
to the Company’s risk management and internal control,
studying major investigation findings on risk management
and internal control matters and the business management’s
response to these findings as delegated by the Board or on
its own initiative, dealing with major disagreements, major
risk emergency events or crisis events in risk management,
and supervising and directing the senior management and
the relevant departments to resolve any issues identified
during the rectification process in a timely manner.
Annual Report 2024 | Corporate Governance
83
6.
Mr. Wang Junhui ceased to be a member of the Risk Management and
Consumer Rights Protection Committee from November 2024. During
his tenure as a member of the Risk Management and Consumer Rights
Protection Committee in 2024, the Risk Management and Consumer
Rights Protection Committee convened five meetings, four of which
Mr. Wang Junhui attended in person.
7.
Ms. Zhuo Meijuan retired as a Non-executive Director of the Company
and a member of the Risk Management and Consumer Rights Protection
Committee due to the expiration of her term of office in June 2024.
8.
The number of meetings attended in person includes meetings attended
on-site and by way of telephone or video conference.
9.
Directors who were unable to attend any meeting of specialised Board
committees authorised other Directors to attend and vote at the meeting
on their behalf.
Notes:
1.
Due to his reappointment as a member of the Monetary Policy
Committee of the People’s Bank of China, Mr. Huang Yiping resigned
as an Independent Director of the Company and the Chairman of the
Risk Management and Consumer Rights Protection Committee of the
Board in March 2024, which took effect in November 2024.
2.
Mr. Lu Feng became the Chairman of the Risk Management and
Consumer Rights Protection Committee of the Board in November 2024.
3.
Mr. Ruan Qi became a member of the Risk Management and Consumer
Rights Protection Committee of the Board in May 2024.
4.
Ms. Hu Jin became a member of the Risk Management and Consumer
Rights Protection Committee of the Board in November 2024.
5.
Mr. Hu Rong became a member of the Risk Management and Consumer
Rights Protection Committee of the Board in November 2024.
Meetings and Attendance
During the Reporting Period, six meetings were held by the Risk Management and Consumer Rights Protection Committee
of the Board of the Company. Attendance records of individual members are as follows:
Name of member
Position
Number of
meetings
attended in
person/Number
of meetings
required to
attend
Number of
meetings
attended by
proxies/Number
of meetings
required to
attend
Lu Feng
Independent Director, Chairman of the Risk
Management and Consumer Rights Protection
Committee of the eighth session of the Board
1/1
0/1
Ruan Qi
Executive Director, member of the Risk
Management and Consumer Rights Protection
Committee of the eighth session of the Board
3/3
0/3
Hu Jin
Non-executive Director, member of the Risk
Management and Consumer Rights Protection
Committee of the eighth session of the Board
1/1
0/1
Hu Rong
Non-executive Director, member of the Risk
Management and Consumer Rights Protection
Committee of the eighth session of the Board
1/1
0/1
Chen Jie
Independent Director, member of the Risk
Management and Consumer Rights Protection
Committee of the eighth session of the Board
5/6
1/6
Attendance records of the resigned or retired Directors at meetings are as follows:
Name of member
Number of
meetings
attended in
person/Number
of meetings
required to
attend
Number of
meetings
attended by
proxies/Number
of meetings
required to
attend
Huang Yiping
2/5
3/5
Zhuo Meijuan
2/3
1/3
Annual Report 2024 | Corporate Governance
84
The meetings convened are as follows:
Meetings convened
Description
24 January 2024
Fourteenth meeting of the Risk Management
and Consumer Rights Protection Committee
of the seventh session of the Board
Three proposals, including the “Proposal in relation to the Risk
Compliance Analysis on the Asset Strategic Allocation Plan of the
Company for the Years from 2024 to 2026”, were considered and
approved.
26 March 2024
Fifteenth meeting of the Risk Management
and Consumer Rights Protection Committee
of the seventh session of the Board
Eleven proposals, including the “Proposal in relation to the Business
Plan of the Company for the Years from 2024 to 2026”, were
considered and approved, and one report, namely the “Report on
the Assessment and Management of Liquidity Risk of the Company
for the Year 2023”, was debriefed.
25 April 2024
Sixteenth meeting of the Risk Management
and Consumer Rights Protection Committee
of the seventh session of the Board
One proposal, namely the “Proposal in relation to the Financial
Budget of the Company for the Year 2024”, was considered and
approved.
28 August 2024
First meeting of the Risk Management and
Consumer Rights Protection Committee of
the eighth session of the Board
Two proposals, including the “Proposal in relation to the ‘Report
on the Enterprise-wide Risk Management of the Company for the
Second Quarter of 2024’”, were considered and approved, and one
report, namely the “Report on the Notification of the Regulator’s
Assessment of the Consumer Rights Protection of the Company and
the Rectification Measures Taken for the Year 2023”, was debriefed.
29 October 2024
Second meeting of the Risk Management
and Consumer Rights Protection Committee
of the eighth session of the Board
Two proposals, including the “Proposal in relation to the Amendments
to the ‘Measures for the Administration of Operational Risks of the
Company’”, were considered and approved.
17 December 2024
Third meeting of the Risk Management and
Consumer Rights Protection Committee of
the eighth session of the Board
Five proposals, including the “Proposal in relation to the Authorisation
for the Company’s Investment in Financial Products for the Year
2025”, were considered and approved, and one report, namely the
“Audit Report on the Solvency Risk Management System of the
Company for 2024”, was debriefed.
Annual Report 2024 | Corporate Governance
85
Performance of Duties by the Risk Management and
Consumer Rights Protection Committee
In 2024, the Risk Management and Consumer Rights
Protection Committee of the Board of the Company
performed its duties and functions in strict compliance
with the “Procedural Rules for the Risk Management
and Consumer Rights Protection Committee Meetings”.
All members of the Risk Management and Consumer
Rights Protection Committee performed their obligations
in a responsible manner and reviewed the proposals in
relation to the internal control system of the Company, its
risk management and consumer rights protection. During
meetings of the Risk Management and Consumer Rights
Protection Committee, all members actively participated
in discussions and gave guiding opinions on the proposals
considered and discussed at the meetings.
Reviewing the risk analysis on major matters concerning
the business operations and management of the Company.
In line with the regulatory requirements of the former
China Banking and Insurance Regulatory Commission on
the C-ROSS, the Risk Management and Consumer Rights
Protection Committee assessed the risks of major matters
concerning the business operations and management of the
Company, consistently focused on the various risks faced
by the Company and their management, and reviewed and
approved the proposals in relation to the business plan of
the Company for the years from 2024 to 2026, the risk
compliance analysis on the asset strategic allocation plan
of the Company for the years from 2024 to 2026 and the
authorisation for investment for the year 2025, and provided
guiding opinions on risk control for major matters concerning
the business operations and management of the Company.
Reviewing the assessment reports on business risk and
internal control of the Company. The Risk Management and
Consumer Rights Protection Committee closely monitored
and controlled and effectively prevented internal and
external risks of the Company, and assisted the Board in
reviewing the assessment reports on business risk and
internal control of the Company, according to the national
and international regulatory requirements. The Risk
Management and Consumer Rights Protection Committee
reviewed in advance the reports on risk management such
as the annual and interim reports on the enterprise-wide
risk management of the Company, the audit report on the
solvency risk management system for the year 2024 and
the report on the assessment and management of liquidity
risk of the Company for the year 2023, which offered
professional support to the Board’s decision-making in a
scientific manner.
Reviewing the reports in relation to consumer rights
protection on a regular basis. The Risk Management and
Consumer Rights Protection Committee reviewed the
report on the consumer rights protection of the Company
for the year 2023, the internal appraisal results of consumer
rights protection for the year 2023 and the detailed rules
for assessment and appraisal indicators of consumer rights
protection for the year 2024, the work proposal for consumer
rights protection for 2024, the report on the notification of
the regulator’s assessment of consumer rights protection
and the rectification measures taken for the year 2023,
and the special audit report on consumer rights protection
for 2024.
Optimising the system of the Company in relation to internal
control and risk management. The Risk Management and
Consumer Rights Protection Committee assisted the Board
in optimising the system of the Company in relation to
internal control and risk management, considered the
proposals in relation to the formulation of the rules on the
management of consumer rights protection of the Company,
the amendments to the measures for the administration
of case prevention of the Company, the amendments to
the measures for the administration of operational risks of
the Company, the amendments to the measures for the
administration of risks of money laundering and terrorist
financing of the Company and the amendments to the
measures for the administration of liquidity risks of the
Company. Further, the Company regularly notified the Risk
Management and Consumer Rights Protection Committee
of its integrated risk rating results given by the NFRA.
STRATEGY AND ASSETS AND LIABILITIES
MANAGEMENT COMMITTEE
Currently, the Strategy and Assets and Liabilities
Management Committee of the eighth session of the
Board comprises Mr. Zhai Haitao, an Independent Director,
Mr. Li Mingguang and Ms. Liu Hui, both being Executive
Directors, Mr. Wang Junhui, a Non-executive Director,
and Mr. Lu Feng, an Independent Director, with Mr. Zhai
Haitao acting as the Chairman. The Strategy and Assets and
Liabilities Management Committee of the Company is mainly
responsible for the drawing-up of long-term development
strategies of the Company, conducting studies on important
matters concerning assets and liabilities management and
the relevant policies and systems, the system for the
application and management of insurance funds, major
strategic investment decisions and major asset strategic
allocation plan, and making recommendations in respect
thereof.
Annual Report 2024 | Corporate Governance
86
Notes:
1.
Due to his reappointment as a member of the Monetary Policy Committee
of the People’s Bank of China, Mr. Huang Yiping resigned as an
Independent Director of the Company and a member of the Strategy
and Assets and Liabilities Management Committee of the Board in March
2024, which took effect in November 2024.
2.
Mr. Lu Feng became a member of the Strategy and Assets and Liabilities
Management Committee of the Board in November 2024.
Meetings and Attendance
During the Reporting Period, six meetings were held by the Strategy and Assets and Liabilities Management Committee
of the Board of the Company. Attendance records of individual members are as follows:
Name of member
Position
Number of
meetings
attended in
person/Number
of meetings
required to
attend
Number of
meetings
attended by
proxies/Number
of meetings
required to
attend
Zhai Haitao
Independent Director, Chairman of the Strategy
and Assets and Liabilities Management Committee
of the eighth session of the Board
6/6
0/6
Li Mingguang
Executive Director, member of the Strategy and
Assets and Liabilities Management Committee of
the eighth session of the Board
5/6
1/6
Liu Hui
Executive Director, member of the Strategy and
Assets and Liabilities Management Committee of
the eighth session of the Board
3/3
0/3
Wang Junhui
Non-executive Director, member of the Strategy
and Assets and Liabilities Management Committee
of the eighth session of the Board
5/6
1/6
Lu Feng
Independent Director, member of the Strategy and
Assets and Liabilities Management Committee of
the eighth session of the Board
1/1
0/1
Attendance record of the resigned Director at meetings is as follows:
Name of member
Number of
meetings
attended in
person/Number
of meetings
required to
attend
Number of
meetings
attended by
proxies/Number
of meetings
required to
attend
Huang Yiping
2/5
3/5
3.
Ms. Liu Hui became a member of the Strategy and Assets and Liabilities
Management Committee of the Board in May 2024.
4.
The number of meetings attended in person includes meetings attended
on-site and by way of telephone or video conference.
5.
Directors who were unable to attend any meeting of specialised Board
committees authorised other Directors to attend and vote at the meeting
on their behalf.
Annual Report 2024 | Corporate Governance
87
The meetings convened are as follows:
Meetings convened
Description
24 January 2024
Sixteenth meeting of the Strategy and Assets
and Liabilities Management Committee of the
seventh session of the Board
Two proposals, including the “Proposal in relation to the Asset
Strategic Allocation Plan of the Company for the Years from 2024
to 2026”, were considered and approved.
26 March 2024
Seventeenth meeting of the Strategy
and Assets and Liabilities Management
Committee of the seventh session of the
Board
Five proposals, including the “Proposal in relation to the Business
Plan of the Company for the Years from 2024 to 2026”, were
considered and approved.
25 April 2024
Eighteenth meeting of the Strategy
and Assets and Liabilities Management
Committee of the seventh session of the
Board
One proposal, namely the “Proposal in relation to the Financial
Budget of the Company for the Year 2024”, was considered and
approved, and one report, namely the “Report on the Situation
Relevant to the Assets and Liabilities Management of the Company
for the Year 2023”, was debriefed.
28 August 2024
First meeting of the Strategy and Assets and
Liabilities Management Committee of the
eighth session of the Board
Two proposals, including the “Proposal in relation to the Company’s
Budget for Investment in Fixed Assets for the Year 2024”, were
considered and approved.
29 October 2024
Second meeting of the Strategy and Assets
and Liabilities Management Committee of the
eighth session of the Board
One proposal, namely the “Proposal in relation to the Results of
Performance Appraisal of the Company for the Year 2023”, was
considered and approved.
17 December 2024
Third meeting of the Strategy and Assets and
Liabilities Management Committee of the
eighth session of the Board
Four proposals, including the “Proposal in relation to the Management
Guidelines on the Investment by China Life Investment Management
Company Limited under the Entrustment of the Company for the
Year 2025”, were considered and approved.
Annual Report 2024 | Corporate Governance
88
Performance of Duties by the Strategy and Assets
and Liabilities Management Committee
In 2024, the Strategy and Assets and Liabilities Management
Committee of the Board of the Company performed its
relevant duties and functions in strict compliance with
the “Procedural Rules for the Strategy and Assets and
Liabilities Management Committee Meetings”. All members
of the Strategy and Assets and Liabilities Management
Committee carefully reviewed the proposals on the three-
year business plan of the Company, annual investment
plan and authorisation, relevant systems on assets and
liabilities management, and sustainable development
strategies, and listened to the report on the situation relevant
to the assets and liabilities management for the previous
year. Members of the Strategy and Assets and Liabilities
Management Committee diligently performed their duties.
During meetings of the Strategy and Assets and Liabilities
Management Committee, all members actively participated
in discussions and gave professional advices.
Reviewing annual asset allocation plan and entrusted
investments of the Company. The Strategy and Assets and
Liabilities Management Committee reviewed the proposals
on the asset allocation plans of the Company, including the
asset strategic allocation plan for the years from 2024 to
2026, asset allocation plan for the year 2024, the investment
plan for self-use real estate for the year 2024 and related
authorisation, the management guidelines on the investment
by CLI under the entrustment of the Company for the year
2025, the authorisation of investment in financial products
for the year 2025, the authorisation of investment in single
asset management plan for the year 2025, and the overseas
investment plan for the year 2025 and related authorisation
of investment.
Discussing the Company’s development plans and major
strategic projects. The Strategy and Assets and Liabilities
Management Committee reviewed the proposals on the
medium- and long-term development plan and sustainable
development strategy of the Company, including the
business plan of the Company for the years from 2024 to
2026, evaluation report on the outline of the “14th Five-
Year” development plan of the Company for the year 2023,
and the report concerning sustainable development for 2023.
Listening to the report concerning assets and liabilities
management of the Company. The Strategy and Assets
and Liabilities Management Committee listened to the
report on the situation relevant to the assets and liabilities
management of the Company for the year 2023, and followed
up to understand the overall management of assets and
liabilities of the Company.
CONNECTED TRANSACTIONS CONTROL
COMMITTEE
Currently, the Connected Transactions Control Committee
of the eighth session of the Board comprises Ms. Chen
Jie, Mr. Lam Chi Kuen, Mr. Zhai Haitao and Mr. Lu Feng,
all being Independent Directors, with Ms. Chen Jie acting
as the Chairperson. The principal duties of the Connected
Transactions Control Committee are to confirm connected
parties of the Company, manage, examine and approve
connected transactions to control risks relating to connected
transactions, and focus on the compliance, fairness and
necessity of connected transactions, which provide an
important basis for the Board’s decision-making in connected
transactions management.
Annual Report 2024 | Corporate Governance
89
3.
The number of meetings attended in person includes meetings attended
on-site and by way of telephone or video conference.
4.
Directors who were unable to attend any meeting of specialised Board
committees authorised other Directors to attend and vote at the meeting
on their behalf.
Notes:
1.
Due to his reappointment as a member of the Monetary Policy Committee
of the People’s Bank of China, Mr. Huang Yiping resigned as an
Independent Director of the Company and a member of the Connected
Transactions Control Committee of the Board in March 2024, which took
effect in November 2024.
2.
Mr. Lu Feng became a member of the Connected Transactions Control
Committee of the Board in November 2024.
Meetings and Attendance
During the Reporting Period, five meetings were held by the Connected Transactions Control Committee of the Board of
the Company. Attendance records of individual members are as follows:
Name of member
Position
Number of
meetings
attended in
person/Number
of meetings
required to
attend
Number of
meetings
attended by
proxies/Number
of meetings
required to
attend
Chen Jie
Independent Director, Chairperson of the
Connected Transactions Control Committee of
the eighth session of the Board
4/5
1/5
Lam Chi Kuen
Independent Director, member of the Connected
Transactions Control Committee of the eighth
session of the Board
5/5
0/5
Zhai Haitao
Independent Director, member of the Connected
Transactions Control Committee of the eighth
session of the Board
5/5
0/5
Lu Feng
Independent Director, member of the Connected
Transactions Control Committee of the eighth
session of the Board
1/1
0/1
Attendance record of the resigned Director at meetings is as follows:
Name of member
Number of
meetings
attended in
person/Number
of meetings
required to
attend
Number of
meetings
attended by
proxies/Number
of meetings
required to
attend
Huang Yiping
2/4
2/4
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90
Approving connected transactions. The Connected
Transactions Control Committee reviewed the proposals
on major connected transactions, such as the matters
associated with the follow-on offering and post-investment
of the Qihang Fund of the Company, fully discussed the
necessity, feasibility and major risks of the connected
transactions, and made recommendations to the Board in
respect thereof.
Performance of Duties by the Connected
Transactions Control Committee
In 2024, the Connected Transactions Control Committee
of the Board of the Company performed its duties and
functions in strict compliance with the “Procedural Rules for
the Connected Transactions Control Committee Meetings”.
During meetings of the Connected Transactions Control
Committee, all members reviewed the proposals in relation
to the connected transactions of the Company, fully
understood the necessity, feasibility and relevant risks of
connected transactions, actively participated in discussions
and gave opinions.
Confirming connected parties of the Company. The
Connected Transactions Control Committee reviewed the
“Report on Confirming the List of Connected Parties of the
Company as of 31 December 2023” and the “Report on
Confirming the List of Connected Parties of the Company
as of 30 June 2024”, and reported to the Board in respect
thereof.
The meetings convened are as follows:
Meetings convened
Description
26 March 2024
Fifteenth meeting of the Connected
Transactions Control Committee of the
seventh session of the Board
Two proposals, including the “Proposal in relation to the ‘Report on the
Overall Status of Connected Transactions of the Company for the Year
2023’”, were considered and approved, and one report, namely the
“Report on Confirming the List of Connected Parties of the Company
as of 31 December 2023”, was debriefed.
25 April 2024
Sixteenth meeting of the Connected
Transactions Control Committee of the
seventh session of the Board
One proposal, namely the “Proposal in relation to Matters Associated
with the Follow-on Offering of the Qihang Fund”, was considered
and approved.
26 June 2024
Seventeenth meeting of the Connected
Transactions Control Committee of the
seventh session of the Board
One proposal, namely the “Proposal in relation to Matters Associated
with the Post-investment of the Qihang Fund”, was considered and
approved.
28 August 2024
First meeting of the Connected Transactions
Control Committee of the eighth session of
the Board
One proposal, namely the “Proposal in relation to the Execution of the
‘Agreement Deposit Contract for RMB’ between the Company and
China Guangfa Bank Co. Ltd.”, was considered and approved, and
one report, namely the “Report on Confirming the List of Connected
Parties of the Company as of 30 June 2024”, was debriefed.
17 December 2024
Second meeting of the Connected
Transactions Control Committee of the eighth
session of the Board
Five proposals, including the “Proposal in relation to the Renewal of
the ‘Policy Management Agreement’ for the Years from 2025 to 2027
between the Company and China Life Insurance (Group) Company”,
were considered and approved.
Annual Report 2024 | Corporate Governance
91
Approving framework agreements for daily connected
transactions. The Connected Transactions Control Committee
reviewed the proposals on the framework agreements for
daily connected transactions, such as the execution of
the “Agreement Deposit Contract for RMB” between the
Company and CGB, the renewal of the “Policy Management
Agreement” for the years from 2025 to 2027 between
the Company and CLIC, the execution of the “Agreement
for Package Transactions in relation to the Entrustment of
CLP&C as an Agent to Sell Insurance Products” between the
Company and CLP&C, the execution of the “Sales Agency
Agreement in relation to the Entrustment of the Company as
an Agent to Sell Pension Products (Agreement for Package
Transactions)” and the “Agency Agreement in relation to
the Entrustment of Pension Company as an Agent to Sell
Insurance Products (Agreement for Package Transactions)”
between the Company and Pension Company, and the
renewal of the asset management agreement between
the Company and China Life Franklin Asset Management
Company Limited, and fully reviewed the necessity,
compliance and fairness of the daily connected transactions
of the Company, which offered professional support to the
Board’s decision-making in a scientific manner.
Reviewing the implementation of the system for connected
transactions management. The Connected Transactions
Control Committee reviewed the proposal on the report on
the overall status of connected transactions of the Company
for the year 2023.
INDEPENDENCE OF THE COMPANY FROM ITS
CONTROLLING SHAREHOLDER
Employees: The Company is independent in the aspects
of employment, human resources and remuneration
management.
Assets: The Company owns all assets relating to the operation
of its principal business. At present, the Company does not
provide any guarantee for its shareholders. The Company’s
assets are independent, complete, and independent of the
shareholders of the Company and other related parties.
Finance: The Company has established a separate financial
department, and developed an independent financial
accounting system and financial management system;
further, the Company makes financial decisions on its own;
it employs separate financial personnel, opens separate
accounts with banks and does not share bank accounts
with CLIC; the Company, as a separate taxpayer, pays taxes
individually according to law.
Organisation: The Company has established a well-developed
organisational system, under which internal bodies such as
the Board of Directors and the Board of Supervisors operate
separately. There is no subordinate relationship between
such internal bodies and the functional departments of the
Company’s controlling shareholder.
Business operations: The Company independently develops
personal insurance businesses, including life insurance, health
insurance and accident insurance businesses; reinsurance
relating to the above insurance businesses; funds application
business permitted by applicable PRC laws and regulations
or approved by the State Council; as well as all types of
personal insurance services, consulting business and agency
business; sale of securities investment funds; and other
businesses approved by the insurance administrative and
regulatory authorities of the PRC. The Company currently
possesses the “Insurance Permit” (institution number:
000005) issued by an insurance administrative and regulatory
authority. The Company is independently engaged in the
businesses as prescribed in its business scope according
to law, has separate sales and agency channels and is
licensed to use licensed trademarks without consideration.
The completeness and independence of the Company’s
business operations will not be adversely affected by its
relationship with related parties.
PERFORMANCE APPRAISAL AND INCENTIVES
FOR SENIOR MANAGEMENT
The Company implements a term-of-service and target-
related responsibility system for senior management.
Performance target contracts are entered into between the
Chairman of the Board and the President, and between the
President and other senior management of the Company.
The performance target contract system is an important tool
in disassembling the strategic goals of the Company in a
scientific manner, which is conducive towards the breakdown
of targets and transmission of responsibility, enhancing the
implementation capability of the Company and ensuring
the successful completion of its annual business targets.
The performance appraisal criteria listed in the individual
performance target contracts of senior management are
partially linked to the business targets of the Company
and partially formulated with reference to the duties and
functions of their respective positions. The remuneration
for senior management mainly comprises position
compensation, performance rewards, welfare benefits and
medium- and long-term incentives. A mechanism for the
recovery and deduction of performance-based remuneration
is also established to balance the relationships between the
current and long-term needs as well as the revenue and risk
by making full use of remuneration tools.
SHAREHOLDERS’ INTERESTS
To safeguard shareholders’ interests, in addition to the
right to participate in the Company’s affairs by attending
shareholders’ general meetings, shareholders have the right
to convene extraordinary shareholders’ general meetings
under certain circumstances. If the number of Directors is
less than the number stipulated in the Company Law or two-
thirds of the number specified by the Articles of Association,
or the uncovered losses incurred amount to one-third of the
Company’s total share capital, or if the Board or the Board
of Supervisors deems necessary, or more than half of the
Annual Report 2024 | Corporate Governance
92
Directors (including at least two Independent Directors)
request, or shareholders holding 10% or more shares of
the Company make a requisition, the Board shall convene
an extraordinary shareholders’ general meeting within two
months. Where shareholders holding 10% or more shares
request an extraordinary shareholders’ general meeting, such
shareholders shall make a request in writing to the Board
with a clear agenda. The Board shall, upon receipt of such
a written request, convene a meeting as soon as possible.
If the Board fails to convene a meeting within 30 days of
the receipt of such a written request, shareholders making
such a request may convene a meeting by themselves at
the cost of the Company within four months of the receipt
by the Board of such a written request.
In accordance with the Articles of Association, when the
Company convenes the shareholders’ general meeting,
shareholders individually or in aggregate holding 3% or more
of the shares of the Company shall have the right to submit
proposals to the Company. The Company should include
such matters that fall into the scope of the functions and
powers of the shareholders’ general meeting in the agenda
of the meeting. Shareholders individually or in aggregate
holding 3% or more of the shares of the Company may
submit provisional proposals in writing to the convenor
sixteen days prior to the shareholders’ general meeting.
The provisional proposals shall fall into the scope of the
functions and powers of the shareholders’ general meeting
and specify explicit topics and specific resolutions. According
to the new Company Law effective from 1 July 2024, the
shareholding threshold for shareholders entitled to submit
such proposals has been reduced to 1%.
Shareholders may put forward enquiries to the Board
through the Board Secretary or the Company Secretary, or
put forward proposals at shareholders’ general meetings
through their proxies. The Company has made available its
contact details in its correspondence with shareholders to
enable such enquiries or proposals to be properly directed.
CORPORATE CULTURE
By rooting in a financial culture with Chinese characteristics,
the Company consistently adheres to the core corporate
cultural philosophy of “success for you, success by you”
(“Double Success”) and embraces the corporate mission
of “serving the overall interests of national development
and safeguarding people’s wellbeing”. Such philosophy
and mission are deeply integrated into the development
strategy of the Company, serving as a crucial driver for
achieving business objectives. The Double Success culture,
underscoring the harmonious coexistence and mutual growth
with the Party and the state, society, industry, customers,
shareholders, internal corporate entities and employees,
as well as striving and dedicating with a profound sense
of national pride, provides cultural support for building
a world-class life insurance company with Chinese
characteristics. In 2024, the Company organised a variety
of cultural development initiatives, such as the “Upstream
with Double Success” China Life Orator Corporate Culture
Speech Contest and the “China Life Drama Star” short
video competition, to stimulate employees’ enthusiasm
for participation and continuously enhance their sense of
identity with the Company. Through diverse educational,
training, and promotional activities, the Company actively
cultivates and practices the financial culture with Chinese
characteristics and the Double Success corporate culture,
fully leveraging the role of culture in uniting and inspiring
its workforce.
INFORMATION DISCLOSURE AND INVESTOR
RELATIONS
The Company has established a well-developed, effective
and practical information disclosure management system in
strict compliance with the regulatory laws and regulations,
relevant rules and self-regulatory requirements of its listed
jurisdictions and the insurance industry, constantly enhanced
the quality of information disclosure on the basis of strict
compliance with laws and regulations, and continued to
improve the effectiveness of information disclosure and
transparency of information. Focusing on investor concerns,
the Company has continued to deeply engage in making
disclosure of information that have significant impacts
on investors’ value judgments and investment decisions,
enriched the contents of information for voluntary disclosure,
and provided the capital market and investors with simple
and clear, more targeted and effective information, for
the purpose of facilitating investors, especially medium
and small investors, to better understand the Company’s
strategies and business highlights, and ensuring that
investors obtain true, accurate and complete information
in a compliant and effective manner. The Company has
also regularly organised training courses and promotional
activities relating to the relevant rules of information
disclosure and corporate governance. It has properly arranged
information disclosure on the basis that the differences
between the laws and regulations of its listed jurisdictions
in the PRC and overseas, and the differences between the
regulatory requirements of its listed jurisdictions and the
insurance industry, are well defined. The Company has
strictly managed its inside information and carried out the
registration and filing procedures on persons who have
knowledge of inside information in compliance with law,
strengthened the confidentiality of inside information, and
safeguarded the legitimate rights and interests of investors,
with a view to maintaining the fairness, impartiality and
openness of information disclosure of the Company. In 2024,
the Company was awarded Grade A in the assessment by
the SSE of information disclosure of listed companies for
the year of 2023-2024.
Annual Report 2024 | Corporate Governance
93
The Company has attached great importance to its contact
and communication with domestic and overseas investors,
and developed investor relations in a proactive way
with its stringent attitude and innovative thinking. It has
kept abreast of the pace of technological development,
consistently made innovation in its communications with
and services to investors, and offered various channels to
facilitate such investors in keeping abreast of any major
business development of the Company in a timely manner.
The Company has set up the “Investor Relations” section on
its official website at www.e-chinalife.com and the “China
Life Investor Relations” WeChat public account, to facilitate
investors in accessing announcements, operating results
materials and other information for public disclosure as
published by the Company on the stock exchanges of its listed
jurisdictions in the PRC and overseas. In addition, investors
may call the investor relations hotline of the Company at
86-10-63631241 or email the investor relations email address
at ir@e-chinalife.com if they have any further inquiries. The
Company will respond to such inquiries in a timely manner.
In 2024, the Company held four results briefings and two
shareholders’ general meetings, to facilitate convenient and
open interaction with all shareholders through online live
broadcasts or offline meetings, with the Chairman, President,
Independent Directors, and senior management members of
the Company participating in these activities multiple times.
The senior management of the Company also communicated
offline with nearly 100 institutional investors globally
through non-deal roadshows for annual and interim results.
Further, the Company constantly enhanced the efficiency
of communication between the Company and the capital
market through a variety of communication channels and
means, including holding online and offline conferences with
investors and analysts, attending investors’ meetings, timely
updating information on the “Investor Relations” section
on its official website, and responding to enquiries from
investors and analysts. The Company’s investor relations
team followed up on shareholder interactions through
meetings with investors and analysts. The Company also
focused on the protection of medium and small investors,
actively responded to any enquiries from them, and kept in
close contact with investors by various means such as email,
phone and internet. On 26 March 2025, the “Measures for
Market Value Management of China Life Insurance Company
Limited” was considered and approved at the thirteenth
meeting of the eighth session of the Board of Directors of
the Company to further enhance efforts related to market
value management. The Company reviews its policy for
communication with shareholders once a year and considers
that such policy remains effective based on the feedbacks
received from investors and the capital market on investor
relations. In 2024, the Company was honored with the “Best
Investor Activity” award in the assessment and selection of
Greater China Investor Relations hosted by the international
publication “Investor Relations Magazine”, and also received
the “Best Practice of 2023 Annual Report Presentation
Meetings” award from the CAPCO, among other accolades.
CHANGES OF THE ARTICLES OF ASSOCIATION
During the Reporting Period, no amendment was made to
the Articles of Association by the Company.
TRAINING OF COMPANY SECRETARY
Mr. Heng Victor Ja Wei, the Company Secretary, took no
less than 15 hours of relevant professional training in 2024,
satisfying the requirements under the Listing Rules.
INTERNAL CONTROL AND RISK MANAGEMENT
The Company has consistently proceeded with tasks in
compliance with the regulatory requirements of relevant
regulatory authorities, such as the SSE and the HKSE, with
respect to corporate internal control.
Internal Control
The Company has been devoting significant effort to the
promotion of internal control and the construction of internal
control-related systems. In accordance with the requirements
of the “Standard Regulations on Corporate Internal Control”,
the “Implementation Guidelines for Corporate Internal
Control”, the “Rules Governing the Listing of Securities on
The Stock Exchange of Hong Kong Limited”, and the “Basic
Standards of Internal Control for Insurance Companies”
issued by the NFRA, the Company has carried out a lot
of work on its internal control system construction, rules
implementation and risk management by centering on its
corporate governance structure. The Company has also
formulated and issued the “Internal Control Implementation
Manual of China Life Insurance Company Limited (2024
Edition)” to strengthen the implementation of internal
control standards and internal control assessments, and
actively promoted the culture and philosophy of internal
control, thereby continuously enhancing the internal control
of the Company.
Pursuant to the relevant requirements of the SSE, the
Company is required to release an internal control self-
assessment report simultaneously with the publication of
its 2024 annual report. The Company has completed the
internal control self-assessment as required by the SSE for
the year ended 31 December 2024. Such assessment is
conducted on an annual basis and in two stages, namely,
interim assessment and supplementary test. The Company
has confirmed after the assessment that the relevant
internal controls were effective. The Company has also
received from its independent auditors an unqualified opinion
on the effectiveness of its internal controls in relation to
financial reporting as at 31 December 2024. The Company’s
assessment report and the report of its independent auditors
will be included as an attachment to its annual report
submitted to the SSE.
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It is the responsibility of the Board of the Company to
establish and effectively implement well-established
internal control systems, assess their effectiveness and
disclose the report on the internal control assessment. The
Board and its Audit Committee are responsible for leading
the implementation of internal control measures of the
Company, and the Board of Supervisors supervises the
internal control assessments performed by the Board. The
Company has established the Risk Management Department
in its headquarters and branches, which conducts tests
on the management level, assesses the effectiveness of
the establishment and implementation of internal control
systems in accordance with the regulatory requirements of
the jurisdictions where the Company is listed, and reports
to the Board, the Audit Committee and the management.
In compliance with regulatory requirements and having
considered the characteristics of its business and
management requirements, the Company has established
and implemented a series of internal control measures and
procedures with respect to currency and funds, insurance
business, external investments, physical assets, information
technology, financial reporting and information disclosure
to ensure the safety and integrity of its assets. By strictly
complying with relevant PRC laws and regulations as well
as the internal rules and regulations of the Company, the
quality of accounting information has been improved.
A relatively well-developed internal control system has been
established in terms of team-building, sales and operations,
and system management for the sales channels, such as
individual insurance, bancassurance, group insurance and
health insurance. This internal control system regulates
the relevant authorisations and operational workflows, and
effectively adopts the measures to prevent and manage risks
relating to the operation of exclusive agents. The Company
has promulgated clear regulations for the workflows and
authorisations relating to the verification of insurance policies,
insurance claims and insurance preservation. The Company
has also formulated business operation standards and
service quality standards, developed systems of business,
document and file management, and further regulated the
management of business approval authority to strengthen
its control over business risk and improve the quality of its
services.
In accordance with relevant laws and regulations such as
the “Accounting Law of the People’s Republic of China” and
the “Enterprise Accounting Standards — Basic Standards”
and specific standards and taking into account the needs
of the Company for its business development, operation
and management, the Company has formulated and issued
the “Accounting System of China Life Insurance Company
Limited”. The accounting units of the Company at all
levels have implemented this in strict compliance with the
requirements of the accounting system and various basic
systems to regulate work relating to financial accounting and
preparation of financial reports. The accounting units of the
Company at all levels have assigned positions in a reasonable
manner, clearly defined duties and responsibilities of such
positions and their scope of authority on management, and
strictly prohibited employees from serving incompatible
positions concurrently, thus exercising control over financial
risks in an efficient manner.
The Company has created a rigorous information disclosure
system with well-developed workflows, including the
provisions governing the basic responsibilities of periodic
report disclosures, the major errors in periodic report
disclosures and the responsibility attribution as set forth in
the “Rules for the Administration of Information Disclosures
of China Life Insurance Company Limited”. As at the end of
the Reporting Period, there were no major errors in periodic
report disclosures of the Company. The “Measures for
the Administration of Registration of Persons Who Have
Knowledge of Inside Information of China Life Insurance
Company Limited” has been introduced to enhance the
confidentiality of inside information of the Company and
to register and submit information concerning persons
who have knowledge of inside information. The relevant
requirements under the “System of Internal Reporting
of Material Information of China Life Insurance Company
Limited” have been incorporated into the indicator system
under the internal control report of the Company. Persons
responsible for reporting material information obtain and
identify potential material information at the level of operation
and management by making use of various information
technologies, and submit and report such information to the
President and the Board of the Company as early as possible.
The Board then makes the final decision on whether to
release the material information, and discloses the same
to such extent as it considers reasonable and practicable.
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95
The Company has established a well-developed system
relating to investment decisions in accordance with the
relevant laws and regulations and based on the actual
situation of investment management. The system defines
the approval and decision-making authority, authorisation
mechanism and specific decision-making procedures for
investment management. All major investment decisions
shall be approved and implemented in strict compliance with
the internal decision-making process of the Company and the
requirements of its investment management system. The
Investment Decisions Committee is a permanent body of the
Company for investment decisions, which is responsible for
reviewing major investments and providing support to any
investment decisions made by the management.
The Company has established a comprehensive information
technology system to cover all aspects of IT work and
formed a closed-loop control mechanism focusing on
centralised review and publication, periodic inspection and
continuous improvement. By conducting measures such
as the inspection and evaluation of system implementation
on a regular basis, the Company has facilitated the
effective implementation of the system and enhanced the
standardisation and normalisation of various IT work. Further,
the Company has constantly promoted the construction
of the systems of information safety and risk control, and
formulated and implemented a series of effective information
safety control measures at various stages of the life cycle
of the IT system, thereby effectively ensuring the safe and
steady operation of the Company. In 2024, the Company
conducted several internal and external risk assessments
to promote construction by inspection, with a view to
consistently enhancing its capability in management and
control of information safety risks.
The Risk Management Department, the Audit Department
and the Legal and Compliance Department of the Company
are responsible for the supervision and inspection of the
Company’s internal control measures. The Company identifies
issues in the areas of system design, control implementation
and risk management in a timely manner through the
adoption of various measures such as walk-through tests,
control tests and risk analysis. It also eliminates loopholes,
guards against risks and reduces losses by adopting various
measures to improve systems, enhance legal compliance
and pursue accountability. In 2024, the Company actively
adapted to the stringent financial regulatory environment
both domestically and internationally and strictly complied
with the regulatory requirements to constantly improve
the organisational structure of internal audit, and further
strengthened the mechanism for internal audit management,
which effectively performed the supervisory role of audit.
The Company carried out the economic responsibility
audit on its key responsible persons at all levels, the
senior management audit on part of senior management
of its headquarters and deputy heads of its branches at
the provincial level, organised and performed a series of
special audits closely related to the Company’s business
objectives, and conducted a variety of special audits on
anti-money laundering, connected transactions, assets and
liabilities management, solvency risk management system,
application of funds, protection of consumers’ rights and
interests, reputational risk management, risk management of
financial derivative transactions, compliance of intermediary
business, and insurance fraud risk management pursuant
to regulatory requirements. Meanwhile, the Company
has put more efforts on the application of audit results,
consistently strengthened the supervision and direction of
rectification measures for any issues identified in audits,
handover of the issues concerned and the responsibility
attribution, proceeded with the integration of rectification
measures, further improved the closed-loop management of
internal audits, and facilitated its standardised management
and compliance operation. The Company has consistently
strengthened the construction of its compliance management
system and improved the operational mechanism for
compliance management on an ongoing basis, with a view
to effectively identifying, guarding against and mitigating
material compliance risks. The Company has also played
an active role in advocating the business philosophy of
“creating value from compliance” and made a serious
effort towards fostering a corporate culture of “being
compliant on a proactive basis”, “starting from the top
level” and “having responsibility for all to be compliant”.
In November 2024, the Company successfully passed the
initial supervisory audit for certification under the national
standard GB/T 35770-2022 and the international standard
ISO 37301:2021. The Company will continue to deeply
engage in building a law-based company by upholding the
compliance objective of managing itself according to law and
practicing the compliance philosophy of good faith business
operations. It will remain focused on core tasks to enhance
its ability to serve the overall interests in a compliant manner,
concentrate on safe development to improve compliance risk
management and control capabilities, and focus on value
creation to optimise the use of compliance resources. By
fully leveraging the functions and roles of the three lines
of defense mechanism in compliance management, the
Company will coordinate and implement risk prevention
and control measures before, during and after events to
promote operations, guard against risks, and create value
through high-quality and efficient compliance management.
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Risk Management
Risk Management System
The Company has established an organisational system
for comprehensive risk management with the ultimate
responsibility assumed by the Board, under the direct
leadership of the management, having reliance on the risk
management departments and with the close cooperation
among the relevant functional departments, and developed a
5-tier organisational structure for risk management covering
the corporate governance level, the headquarters level, the
provincial branches level, the municipal branches level, and
the county sub-branches level. With the reliance on the
5-tier risk management and control structure, the Company
has put in place three lines of defense that focus on risk
management: the first line of defense consists of branches
and sub-branches at all levels and various functional
departments that identify, assess, address, monitor and
report risks at the front end of business; the second line
of defense is composed of the Risk Management and
Consumer Rights Protection Committee of the Board, as
well as the Risk Management Committee and the Risk
Management Department of the Company that take the lead
in formulating the system, standards and limits for a variety
of risks and make recommendations to address such risks;
the third line of defense comprises the Audit Committee
of the Board, as well as the internal audit department,
the Office of the Discipline Inspection Committee and
other departments of the Company that supervise the risk
management workflows established by the Company and
the procedures and actions for control of various risks. The
three lines of defense have been coordinated with each
other in a proactive manner to organise and commence any
work in relation to risk management. By establishing the
organisational structure of risk control, the Company has
gradually established a criss-cross network of risk control
systems, with the risk management departments at all levels
as leading bodies, the relevant functional departments as
main bodies, the vertical decision-making control system and
horizontal interactive collaboration mechanism as supporting
systems and the comprehensive risk management as focus,
thus laying a strong foundation for the Company to achieve a
comprehensive risk management system with full coverage,
all-employee participation and effective workflows.
Work in relation to Risk Management
Pursuant to the requirements of the NFRA on the C-ROSS,
the Company pushed forward the solvency risk management
system construction, and built a “1+7+N” comprehensive
risk management system with the “Comprehensive Risk
Management Rules” as the general principles, seven types
of risks (including insurance risk, market risk, credit risk,
operational risk, strategic risk, reputational risk and liquidity
risk) as the key focuses, and having reliance on a series of
implementing rules for business such as the “Measures
for the Administration of Risk Preference System”. The
Company consistently reinforced the mechanism for
formation, transmission and application of the risk preference
system, creating a system for the normal management of
risk preference with the statement on risk preference as the
carrier, and the risk tolerance and limit indicators as the focus.
Through the combination of risk preference with various lines
of operation and management, the Company maintained a
good interaction between risk management and business
development. The Company conducts a self-assessment
on solvency risk management capability every year so as
to fully assess all work in relation to risk management
from the soundness of the system and the effectiveness
of its implementation. The Company conducted specific
rectification against its own shortcomings and weaknesses,
which enhanced its risk management standard in all aspects.
In the SARMRA under the C-ROSS (Phase II) Regulation
conducted by the NFRA, the Company’s capability of solvency
risk management ranked among the top of life insurance
companies. The Company followed the requirements
under anti-money laundering laws and regulations, kept
on improving the system for money-laundering risk
management and performed the anti-money laundering
obligations under the law, with a view to enhancing both
the quality and efficiency of its anti-money laundering work.
Meanwhile, pursuant to external regulatory requirements,
the Company carried out self-inspections and rectifications in
key risk areas, which effectively improved its precautionary
capabilities in these areas. In 2024, the Company made
significant efforts to advance the informatisation of risk
management and actively applied advanced technologies
such as big data and artificial intelligence, to enhance the
intelligence of its money-laundering risk management. It
developed a money-laundering risk situational awareness
platform that created a customer and transaction database
with 2,500 million data entries, which enabled daily,
transaction-level quantification of money-laundering risks.
The money-laundering risk situational awareness platform
project was awarded first place in the financial services
category in the division list of the 2024 “Data Elements X”
competition. With significant advancements in areas such
as intelligent pre-warning systems for sales risks and the
integrated risk management platform, the informatisation
and intelligence level of risk management were substantially
elevated, which provided robust support for the high-quality
development of the Company.
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Risk Identification and Control
The major risks of the Company in the course of business
operation and management include insurance risk, market
risk, credit risk, operational risk, strategic risk, reputational
risk, liquidity risk, information safety risk, ESG risk and
fraud risk.
Insurance Risk
Insurance risk refers to the risk that exposes insurance
companies to unexpected losses due to the adverse deviation
of the actual situation from the projections of assumptions
such as loss ratio, expense rate and lapse rate.
The Company assessed and monitored insurance risks
through sensitivity analysis and other actuarial appraisal
methods, with a focus on the impact of mortality rate,
morbidity rate, lapse rate, expense rate and other relevant
assumptions on the Company’s operating results. The
Company managed insurance risks through the following
mechanisms and processes: (1) establishing an organisational
structure and a system for insurance risk management, so
that insurance risk management can be performed within
a scientific, comprehensive and effective management
system; (2) devising a system for risk limit indicators and
carrying out normal monitoring analysis, so as to contain
risks within a controllable range; (3) implementing an
effective product development and management system
to strictly control product pricing risks, and strengthening
empirical analysis to offer support to pricing assumptions
and assessing assumptions, in order to prevent and control
insurance risks from the front end of products; (4) effectively
guarding against adverse selection risks and insurance
frauds through the establishment and implementation of a
well-developed system for verification of insurance policies
and claims, as well as the practical operation regulations;
(5) transferring and mitigating insurance risks through a
scientific and reasonable reinsurance arrangement; and
(6) strengthening expenses management and enhancing
efficiency in resource utilisation. In 2024, the Company
managed insurance risks in a regulated and orderly manner,
with sufficient and reasonable provisions of minimum capital
for insurance risks. The Company will continuously keep
a watch on the development trend of insurance risks and
further enhance its capability of managing insurance risks.
Market Risk
Market risk refers to the risk that exposes the Company
to unexpected losses due to adverse movement in (among
others) interest rate, equity prices, real estate prices and
exchange rates.
In order to address the market risks, the Company continued
to pay attention to the risk exposures of interest rates, equity
prices, real estate prices and exchange rates, monitored
value at risk/mark to market (VaR/MTM), yield volatility,
duration and other key market risk indicators on a regular
basis, set up a 2-tier risk limit indicator and corresponding
threshold values, carried out sensitivity analyses and stress
tests to measure the risk losses to the Company under
stress scenarios, gave pre-warning of market risks and
formulated contingency plans for emergencies. Currently,
the proportion of each investment asset is in line with the
requirements of the NFRA and the internal management
provisions of the Company. According to the results of the
risk indicator monitoring and stress tests, the market risk
of the Company was within a normal controllable range.
The Company primarily adopted the following risk control
measures in 2024: (1) stepping up efforts on the study of
macro economy, currency and financial policies to assess
domestic and international economic and market trends in
a timely manner; (2) reviewing the risks of major assets
categories and the characteristics of their returns on a
regular basis, so as to constantly optimise the model of asset
allocation; (3) constantly tracking and assessing open market
equity exposure and making reasonable allocations; (4)
enhancing asset-liability interaction and effectively managing
the gap arising from the duration mismatch of assets and
liabilities; (5) facilitating the advancement of systems to
improve risk monitoring and pre-warning functions; and
(6) consistently reinforcing efforts to identify and monitor
investment concentration risk and diversifying risks in a
reasonable manner.
Credit Risk
Credit risk refers to the risk that exposes the Company to
unexpected losses due to non-performance or delay in the
performance of contractual obligations by counterparties, or
adverse changes in their credit standings.
The credit risks that the Company is exposed to mainly
relate to investment deposits, bond investments, non-
standard financial product investments and reinsurance
arrangements, etc.
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Credit Risk of Investment Business
To address the credit risks of investment business, the
Company developed and continuously improved the
organisational structure of credit risk management,
and constantly optimised the process for credit risk
management. Meanwhile, the Company established
and made amendments to the management system
and strengthened the implementation of such a system
pursuant to the regulatory requirements and management
practices, strengthened the research on risks, and kept
on improving risk analysis, assessment, monitoring, pre-
warning and emergency response standards. By relying
on information technology, the Company consistently
enhanced the standard of quantitative analysis on credit
risks and diversified the methods used for risk management
and control. The Company primarily adopted the following
measures in 2024: (1) further improving the centralised credit
rating process and system functions to enhance the credit
risk management standard; (2) optimising the credit risk limit
management system in multiple dimensions to improve the
mechanism for prevention of credit risks prior to investment;
(3) strengthening the monitoring of credit risk indicators for
the purposes of indicating risk exposure and any change of
risk distribution in an effective manner and closely tracking
down negative information; and (4) deepening efforts on the
research of key industries and key regions, and the credit
risk outlook to enhance the capability of the Company in
risk management and control during and after investment.
Reinsurance Credit Risk
Reinsurance credit risk refers to the credit risk that may
possibly be faced by the Company in connection with the
obligations to be undertaken by reinsurers due to their
failure to perform reinsurance contracts. To address the
reinsurance credit risks, the Company adopted the following
measures: (1) properly setting self-retained risk limits through
an effective reinsurance management system, and using
reinsurance as an effective tool to transfer risks to reinsurers
with a high level of solvency; (2) reviewing the relevant
information of a reinsurer in the reinsurance registration
system in strict compliance with the regulatory requirements
prior to the execution of a reinsurance contract to ensure
that the reinsurer in cooperation with the Company complies
with the regulatory requirements; and (3) conducting credit
assessments on reinsurers through internal rating to select
reinsurers that have higher credit standing to mitigate credit
risks.
Operational Risk
Operational risk refers to the risk of losses arising from
the issues found in internal procedures, employees and IT
systems, as well as external events.
The Company consistently implemented regulatory
requirements and its operational risk management strategies,
optimised the operational risk management system, and
regulated the operational risk management processes,
so as to enhance the effectiveness of operational risk
management on an ongoing basis. The Company established
an operational risk management system that combines three
management tools, namely self-assessment of operational
risk and its control, loss database for operational risks, and
key risk indicators, and further reinforced the operational risk
management at all levels of branches, in order to facilitate
the vertical expansion of the operational risk management
network and achieve the integration of operational risk
management and control with its business development. The
operational risk control measures adopted by the Company
mainly included the following: (1) developing an operational
risk management process and method compatible with the
nature, scale and risk characteristics of the Company’s
business, including the identification, assessment, control,
monitoring and reporting mechanisms; (2) establishing a
loss database for operational risks to carry out the loss
data collection and analysis of operational risks on a regular
basis; (3) establishing a key indicator room for operational
risks to conduct regular monitoring of the key indicators for
operational risks and taking relevant control measures against
them; (4) conducting self-assessments on operational risks
and their control measures on a regular basis and identifying
any areas in the management and control of operational
risks that were vulnerable, with a view to constantly
increasing the capability of the Company in operational risk
management; and (5) fostering a culture of operational risk
management by organising and conducting training courses
on operational risk management. In 2024, the operational
risk management of the Company was satisfactory, and
losses from operational risks were controllable. As the
management foundation of the Company for operational
risks was consistently solidified, the quality and efficiency
of its risk management were further enhanced.
Strategic Risk
Strategic risk refers to the risk of mismatch between
strategies, market conditions and capabilities of the Company
arising from ineffective formulation or implementation of
strategies or changes in operational environment.
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The Company set up a relatively well-developed system for
strategic risk management, and established an organisational
system for strategic risk management with the ultimate
responsibility assumed by the Board, under the direct
leadership of the management and with the division of
labour and collaboration among the relevant functional
departments. In 2024, the Company enhanced its strategic
study concerning macro economy, regulatory policies and
industry developments. In response to changes in the external
development and environment, it continuously optimised its
development strategies by strengthening the management
of both business and investment strategies. The Company
accelerated reforms in key areas, enhanced core functions,
and improved core competitiveness to ensure alignment
between its strategies and capabilities. Meanwhile, the
Company further optimised the work mechanisms and
processes for strategic study, formulation, implementation
and assessment. It strengthened daily monitoring and
analysis of the system for strategic risk indicators, conducted
its strategic risk emergency exercise for the first time, and
created a closed-loop strategic risk management system
through diverse initiatives, thereby ensuring effective
implementation of strategic risk management. In 2024,
the Company maintained the robustness of its strategic
risk management system and the effectiveness of its
implementation. With good alignment between its strategy,
the market environment, and the Company’s capabilities,
the achievements in strategic risk management were
significant, thus contributing to improvements in the scale,
value, growth, quality, structure, efficiency and safety of its
business and operations.
Reputational Risk
Reputational risk refers to the risk of negative comments on
the Company from stakeholders, the public and the media
as a result of the behaviours of the Company’s divisions at
all levels, practitioners or external events, thereby causing
losses, damaging brand value, being detrimental to the
normal operation of the Company, and even affecting
market and social stability. Reputational risk may exist in any
aspect of the Company’s operation and management. The
Company highly values its reputation and has incorporated
reputational risk management into the corporate governance
and comprehensive risk management system to prevent
reputational risk.
In 2024, the Company made further improvement to its
system for reputational risk management to enhance the
standard of reputational risk management on an ongoing
basis. The Company consistently proceeded with all tasks
across the entire process, such as the identification,
evaluation and disposal of reputational risks, so as to
properly address and dispose of any reputational incidents
and effectively protect brand reputation. It optimised
disposal mechanisms, diversified response measures,
and reinforced primary management responsibilities. By
advancing its digital transformation, the Company achieved
online management and data retention throughout the
entire process, which improved the quality and efficiency
of reputational risk management. The Company maintained
a focus on source control of reputational risk, conducted
ongoing reputational risk investigations and rectifications,
organised special assessments and inspections of
reputational risk management, and classified and tracked
key issues and high-risk areas, for the purpose of further
enhancing governance at the source. Targeted training and
exercises were conducted to raise awareness of reputational
risks and foster a culture of reputational risk management.
Liquidity Risk
Liquidity risk refers to the risk that the Company does not
have access to sufficient funds in time or at reasonable
costs to meet its liabilities or other payment obligations as
they become due.
The Company established a system for liquidity risk
management to define the organisational structure and
responsibilities of liquidity risk management. Further,
the Company developed the processes covering the
identification, evaluation, monitoring, response and disposal,
reporting, and rectification of liquidity risk, and organised
regular emergency exercises on liquidity risks. Overall,
the liquidity risk of the Company was insignificant. The
Company will constantly step up its effort on liquidity risk
management pursuant to the regulatory requirements and its
own provisions to ensure the performance of its obligation
to give insurance benefits as scheduled.
Information Safety Risk
Information safety risk refers to the operational, legal and
reputational risks caused by natural factors, human factors,
technological loopholes or management defects in the
process of applying information technology in the Company.
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The Company attached great importance to information safety
risk management. Firstly, the Company set up organisational
support for information safety. It established an organisational
system for internet security across the Company. An
Internet Security and Informationisation Commission and
an Information Safety Committee were established at the
headquarters level for organising the information safety
risk management of the Company. A leading group and
working group of information safety were established at
all levels of divisions for the specific implementation of
information safety. Secondly, the Company developed and
strictly implemented various systems and mechanisms to
ensure the standardisation of information management.
Thirdly, the Company optimised the safety management
requirements for the full life cycle of its IT system. By
conducting safety tests and quality checks on the IT system
before and after it was put online, the Company consistently
enhanced the safety of such system. The Company also
formulated contingency plans of the IT system for regular
exercises to enhance its emergency response capability.
With the help from the enterprise general control center,
the Company developed a joint prevention and joint control
mechanism for the entire network, thus achieving the
centralised analysis and coordinated disposal of various
safety risks. In addition, the Company constantly stepped up
efforts on, among others, awareness training, promotion and
education, and phishing simulation to raise the information
safety awareness of employees, thus fostering a corporate
culture of “everyone places emphasis on safety”. In 2024,
there was no circumstance where the Company’s operation
was affected due to the breakdown of computers or security
breach.
In 2024, the Company actively implemented the legal
provisions of national laws such as the “Data Security
Law” and the “Personal Information Protection Law” to
strictly protect critical data and personal information, so as to
safeguard the legitimate rights and interests of customers.
It established a comprehensive data governance structure
and data management system and mechanism, optimised
the roles and responsibilities of divisions at all levels for
data safety management, improved standards for data
classification and categorisation management and strategies
for data security protection. The Company conducted pre-
assessment, in-process control and post-monitoring of data
security risks associated with data processing activities,
implemented classified security protection measures for the
full life cycle such as the collection, transmission and storage
of data in an efficient manner, and developed a 3-dimensional
data security protection system, which facilitated data
development and utilisation while maximising data value,
all under the assurance of data security.
ESG Risk
The Company assesses ESG material issues once a year in
view of the external economic, social and macro environment
as well as its own development strategy, discusses and
determines the risks and opportunities faced by it in relation
to ESG, and regards the management and escalation of key
issues as its priority of work in ESG for the year. The Board
reviews and confirms the assessment results, taking into
consideration the key issues as part of its formulation of an
overall strategy, and supervising the management of such
issues and their performance. In 2024, the Company further
strengthened its ESG risk management, through which
top five ESG risks were identified as follows: information
safety, climate change, corruption, human resources and
customer relationship management, and talent attraction
and retention. The Company has devised the management
strategy against the above risks in order to keep track with
the risk development trend in a timely manner.
Fraud Risk
The Company promoted the fraud risk management on
an ongoing basis, played an active role in increasing the
awareness of fraud risk prevention, and proceeded with all
tasks against frauds in an effective manner. The Company
has established an organisational system for fraud risk
management with the ultimate responsibility assumed by
the Board, under the direct leadership of fraud risk managers
and with the close cooperation among the functional
departments. With its implementation of comprehensive
risk management, the Company identified control points
in a variety of business activities for fraud risks. The
Company also proceeded with all tasks against frauds in
active cooperation with regulatory authorities and industry
associations, and attached great importance to fostering
anti-fraud culture through education on anti-fraud alert and
promotion. As a result, the capability of fraud risk prevention
and control of the Company was effectively improved.
For other analysis on the insurance risk, market risk, credit
risk and liquidity risk of the Company, please refer to the
“Risk Management” section in the Notes to the Consolidated
Financial Statements of this annual report.
It should be stated that the risk management and internal
control of the Company are designed with the objectives
to reasonably ensure the legal compliance of business
operation and management, safety of assets, truthfulness
and completeness of financial reports and relevant
information, improvement of operating efficiency and effect,
and accomplishment of development strategy. Given the
inherent limitations on risk management and internal control,
the Company can only provide reasonable assurance with
respect to the accomplishment of the above objectives.
OTHER
INFORMATION
Annual Report 2024 | Other Information 101
BASIC INFORMATION OF THE COMPANY
Registered name in Chinese
中國人壽保險股份有限公司（簡稱「中國人壽」）
Registered name in English
China Life Insurance Company Limited (“China Life”)
Legal representative
Cai Xiliang
Registered office address/
Current office address
16 Financial Street, Xicheng District, Beijing, P.R. China
(On 21 October 2010, the registered address of the Company was changed
from No. 16 Chaowai Avenue, Chaoyang District, Beijing, P.R. China to the
current address)
Postal code
100033
Telephone
86-10-63633333
Investor relations hotline
86-10-63631241
Customer service hotline
95519
Fax
86-10-66575722
Website
www.e-chinalife.com
Email
ir@e-chinalife.com
Hong Kong office address
16/F, Tower A, China Life Centre, One Harbour Gate, 18 Hung Luen Road,
Hung Hom, Kowloon, Hong Kong
Telephone
852-29192628
Annual Report 2024 | Other Information
102
CONTACT INFORMATION
Board Secretary
Securities Representative
Name
Liu Hui
Li Yinghui
Office address
16 Financial Street, Xicheng District,
Beijing, P.R. China
16 Financial Street, Xicheng District,
Beijing, P.R. China
Telephone
86-10-63631241
86-10-63631191
Fax
86-10-66575112
86-10-66575112
Email
ir@e-chinalife.com
liyh@e-chinalife.com
* Ms. Li Yinghui, Securities Representative of
the Company, is also the main contact person
of the external Company Secretary engaged by
the Company
INFORMATION DISCLOSURE AND PLACE FOR OBTAINING THE REPORT
Media and websites for the
Company’s A Share disclosure
Shanghai Securities News (www.cnstock.com)
Securities Times (www.stcn.com)
Securities Daily (www.zqrb.cn)
CSRC’s designated website for the
Company’s annual report disclosure
www.sse.com.cn
The Company’s H Share
disclosure websites
HKExnews website of Hong Kong Exchanges and
Clearing Limited at www.hkexnews.hk
The Company’s website at www.e-chinalife.com
The Company’s annual report
may be obtained at
16 Financial Street, Xicheng District, Beijing, P.R. China
STOCK INFORMATION
Stock type
Exchanges on which the stocks
are listed
Stock short name
Stock code
A Share
Shanghai Stock Exchange
China Life
601628
H Share
The Stock Exchange of Hong Kong
Limited
China Life
2628
OTHER RELEVANT INFORMATION
H Share registrar and
transfer office
Computershare Hong Kong
Investors Services Limited
Address: Shops 1712-1716, 17th Floor,
Hopewell Centre, 183 Queen’s Road
East, Wanchai, Hong Kong
Domestic legal adviser
King & Wood Mallesons
International legal adviser
Latham & Watkins LLP
Auditors of the Company
Domestic auditor
Overseas auditor
Ernst & Young Hua Ming LLP
Ernst & Young
Address: Rooms 01-12, Level 17,
Ernst & Young Tower, Oriental
Plaza, No.1 East Changan Avenue,
Dongcheng District, Beijing, P.R. China
Address: 27/F, One Taikoo Place, 979
King’s Road, Quarry Bay, Hong Kong
Name of the Signing Auditors:
Gu Hong, Xia Xinran
Name of the Certified Auditor:
Andy Ng
Annual Report 2024 | Other Information 103
DEFINITIONS AND MATERIAL RISK ALERT
In this report, unless the context otherwise requires, the following expressions have the following meanings:
China Life, the Company7
China Life Insurance Company Limited and its subsidiaries
CLIC
China Life Insurance (Group) Company, the controlling shareholder of the Company
AMC
China Life Asset Management Company Limited, a non-wholly owned subsidiary of
the Company
Pension Company
China Life Pension Company Limited, a non-wholly owned subsidiary of the
Company
China Life AMP
China Life AMP Asset Management Company Limited, an indirect non-wholly
owned subsidiary of the Company
CGB
China Guangfa Bank Co., Ltd., an associate of the Company
CLP&C
China Life Property and Casualty Insurance Company Limited, a non-wholly owned
subsidiary of CLIC
CLI
China Life Investment Management Company Limited, a wholly-owned subsidiary
of CLIC
China Life Capital
China Life Capital Investment Company Limited, an indirect wholly-owned
subsidiary of CLIC
Ministry of Finance
Ministry of Finance of the People’s Republic of China
NFRA
National Financial Regulatory Administration
CSRC
China Securities Regulatory Commission
HKSE
The Stock Exchange of Hong Kong Limited
SSE
Shanghai Stock Exchange
Company Law
Company Law of the People’s Republic of China
Insurance Law
Insurance Law of the People’s Republic of China
Securities Law
Securities Law of the People’s Republic of China
Articles of Association
Articles of Association of China Life Insurance Company Limited
C-ROSS (Phase II) Regulation
Solvency Regulatory Rules II for Insurance Companies
SARMRA
Solvency Aligned Risk Management Requirements and Assessment
China or PRC
For the purpose of this report, “China” or “PRC” refers to the People’s Republic
of China, excluding the Hong Kong Special Administrative Region of the People’s
Republic of China, the Macau Special Administrative Region of the People’s
Republic of China and Taiwan region of the People’s Republic of China
ESG
Environmental, Social and Governance
RMB
Renminbi Yuan
Material Risk Alert:
The risks faced by the Company primarily include risks relating to macro trends, insurance risk, market risk, credit risk,
operational risk, strategic risk, reputational risk, liquidity risk, information safety risk, ESG risk and fraud risk, etc. The Company
has adopted various measures to manage and control different risks effectively. For details, please refer to the “Future
Prospect” in the section headed “Management Discussion and Analysis” and the “Internal Control and Risk Management”
in the section headed “Corporate Governance” of this report.
7
Except for “the Company” referred to in the Consolidated Financial Statements.
104
Annual Report 2024 | Financial Report
Ernst & Young
27/F, One Taikoo Place
979 King’s Road
Quarry Bay, Hong Kong
安永會計師事務所
香港鰂魚涌英皇道979號
太古坊一座27樓
Tel電話: +852 2846 9888
Fax傳真: +852 2868 4432
ey.com
To the shareholders of China Life Insurance Company Limited
(Incorporated in the People’s Republic of China with limited liability)
OPINION
We have audited the consolidated financial statements of China Life Insurance Company Limited (the “Company”) and its
subsidiaries (the “Group”) set out on pages 109 to 228, which comprise the consolidated statement of financial position as
at 31 December 2024, and the consolidated statement of comprehensive income, the consolidated statement of changes
in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including material accounting policy information.
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the
Group as at 31 December 2024, and of its consolidated financial performance and its consolidated cash flows for the year
then ended in accordance with IFRS Accounting Standards issued by the International Accounting Standards Board and
have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance.
Independent Auditor’s Report
FINANCIAL
REPORT
105
Annual Report 2024 | Financial Report
Independent Auditor’s Report (continued)
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (“ISAs”) issued by the International
Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group
in accordance with the HKICPA’s Code of Ethics for Professional Accountants (the “Code”), and we have fulfilled our other
ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the performance
of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial
statements. The results of our audit procedures, including the procedures performed to address the matters below, provide
the basis for our audit opinion on the accompanying consolidated financial statements.
Key audit matter
How our audit addressed the key audit matter
Valuation of insurance contract liabilities
As at 31 December 2024, the Group’s insurance contract
liabilities amounted to RMB5,825,026 million, representing
93.23% of total liabilities. Since the measurement of
insurance contract liabilities involves significant accounting
estimates and judgments by management, which may have
a substantial impact on the insurance contract liabilities,
we have identified it as a key audit matter:
The valuation of insurance contract liabilities involves
significant judgement and estimates over the eligibility for
the measurement approach, the determination of coverage
unit and the uncertain future cash flows.
Complex actuarial models and actuarial assumptions with
highly judgemental nature are used to support the valuation
of insurance contract liabilities. Key assumptions include
mortality, morbidity, lapse rates, discount rates, expenses,
policy dividends and risk adjustment for non-financial risk,
etc.
Refer to Notes 2.8, 4.1, 5.1 and 14 to the consolidated
financial statements.
With the support of our internal experts, we performed the
following audit procedures:
• Evaluated the appropriateness of the accounting policies
related to the measurement of insurance contract liabilities;
• Evaluated and tested the design and operating effectiveness
of key controls over the valuation of insurance contract
liabilities;
• Evaluated and tested the design and operating effectiveness
of the related IT systems and controls over the valuation
of insurance contract liabilities;
• Evaluated the reasonableness of key judgements and
assumptions, including comparing the key judgements
and assumptions with the company’s historical data and
applicable industry experiences;
• Evaluated the appropriateness of the valuation approaches
of insurance contract liabilities. Performed independent
recalculation on insurance contract liabilities of selected
typical insurance products or groups of insurance contracts;
• Tested the completeness and accuracy of the underlying
data used in the valuation of insurance contract liabilities;
• Evaluated the overall reasonableness of the insurance
contract liabilities by performing analytical review and
assessing the impact of changes in assumptions.
106
Annual Report 2024 | Financial Report
Independent Auditor’s Report (continued)
KEY AUDIT MATTERS (continued)
Key audit matter
How our audit addressed the key audit matter
Fair value of level 3 financial assets
At 31 December 2024, the financial assets which was
measured at fair value and categorized as level 3 amounted
RMB636,783 million, accounting for 9.41% of the Group’s
total assets.
We identified valuation of Level 3 financial assets as a
key audit matter, as it involved significant management
estimates and judgements in the assessment of valuation
methodologies and significant unobservable inputs, and
could be significantly impacted by use of different valuation
methodologies and changes in significant unobservable
inputs.
Refer to Notes 2.4, 4.2 and 5.4 to the consolidated financial
statements.
With the support of our internal experts, we performed the
following audit procedures:
• Evaluated and tested the design and operating effectiveness
of key controls over the valuation of Level 3 financial assets;
• Evaluated the appropriateness of the valuation methodologies
adopted by the Group, including comparing them to industry
practice and acceptable valuation methods;
• Evaluated the reasonableness of the key parameters used
in the fair value measurement of Level 3 financial assets,
including comparing significant unobservable inputs with
third-party or market data;
• Performed independent valuation for Level 3 financial
assets on a sample basis and compared our results to the
management record.
OTHER INFORMATION INCLUDED IN THE ANNUAL REPORT
The directors of the Company are responsible for the other information. The other information comprises the information
included in the Annual Report other than the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements
or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
RESPONSIBILITIES OF THE DIRECTORS FOR THE CONSOLIDATED
FINANCIAL STATEMENTS
The directors of the Company are responsible for the preparation of the consolidated financial statements that give a true
and fair view in accordance with IFRS Accounting Standards and the disclosure requirements of the Hong Kong Companies
Ordinance, and for such internal control as the directors determine is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors of the Company are responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors of the Company either intend to liquidate the Group or to cease operations, or have
no realistic alternative but to do so.
The directors of the Company are assisted by the Audit Committee in discharging their responsibilities for overseeing the
Group’s financial reporting process.
107
Annual Report 2024 | Financial Report
Independent Auditor’s Report (continued)
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED
FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Our report is made solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept
liability to any other person for the contents of this report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal
control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and review of the audit work performed for purposes of the group
audit. We remain solely responsible for our audit opinion.
108
Annual Report 2024 | Financial Report
Independent Auditor’s Report (continued)
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED
FINANCIAL STATEMENTS (continued)
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance in
the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Ng Chi Keung.
Ernst & Young
Certified Public Accountants
Hong Kong
26 March 2025
Consolidated Statement of Financial Position
As at 31 December 2024
109
Annual Report 2024 | Financial Report
The notes on pages 116 to 228 form an integral part of these consolidated financial statements.
As at
31 December
2024
As at
31 December
2023
Notes
RMB million
RMB million
ASSETS
Property, plant and equipment
7
54,030
53,710
Right-of-use assets
8
1,557
1,480
Investment properties
9
12,319
12,753
Investments in associates and joint ventures
10
302,077
258,760
Term deposits
11.1
438,455
413,255
Statutory deposits – restricted
11.2
6,591
6,520
Investment in debt instruments at amortised cost
11.3
196,754
211,349
Investment in debt instruments at fair value through other
comprehensive income
11.4
3,458,895
2,744,169
Investment in equity instruments at fair value through other
comprehensive income
11.5
171,817
138,005
Financial assets at fair value through profit or loss
11.6
1,908,098
1,705,375
Reinsurance contract assets
14.3
30,738
25,846
Other assets
13
31,712
37,318
Deferred tax assets
27
40,026
24,431
Financial assets purchased under agreements to resell
11.7
30,560
19,759
Accrued investment income
412
51
Cash and cash equivalents
85,505
149,305
Total assets
6,769,546
5,802,086
As at 31 December 2024
110
Annual Report 2024 | Financial Report
Consolidated Statement of Financial Position (continued)
The notes on pages 116 to 228 form an integral part of these consolidated financial statements.
As at
31 December
2024
As at
31 December
2023
Notes
RMB million
RMB million
LIABILITIES AND EQUITY
Liabilities
Insurance contract liabilities
14.2
5,825,026
4,859,175
Reinsurance contract liabilities
14.3
160
188
Interest-bearing loans and other borrowings
15
12,758
12,857
Bonds payable
16
35,194
36,166
Other liabilities
17
140,931
126,750
Deferred tax liabilities
147
–
Current tax liabilities
237
309
Premiums received in advance
28,760
48,878
Financial assets sold under agreements to repurchase
18
151,564
216,851
Financial liabilities at fair value through profit or loss
53,521
13,878
Total liabilities
6,248,298
5,315,052
Equity
Share capital
32
28,265
28,265
Reserves
33
119,033
145,933
Retained earnings
362,377
302,895
Attributable to equity holders of the Company
509,675
477,093
Non-controlling interests
11,573
9,941
Total equity
521,248
487,034
Total liabilities and equity
6,769,546
5,802,086
Approved and authorised for issue by the Board of Directors on 26 March 2025.
Cai Xiliang
Li Mingguang
Director
Director
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024
111
Annual Report 2024 | Financial Report
The notes on pages 116 to 228 form an integral part of these consolidated financial statements.
2024
2023
Notes
RMB million
RMB million
Insurance revenue
20
208,161
212,445
Interest income
21
120,958
122,994
Investment income
22
176,461
(9,375)
Investment income from associates and joint ventures
10
12,077
8,079
Other income
10,970
10,603
Total revenues
528,627
344,746
Insurance service expenses
23
(180,544)
(150,353)
Allocation of reinsurance premiums paid
(5,071)
(4,726)
Less: Amounts recovered from reinsurers
5,449
4,438
Insurance finance income/(expenses) from insurance contracts
issued
24
(209,952)
(127,923)
Less: Reinsurance finance income/(expenses) from reinsurance
contracts held
671
616
Finance costs
(4,200)
(5,308)
Expected credit losses
25
207
1,217
Other impairment losses
(1,611)
–
Other expenses
(18,363)
(18,131)
Profit before income tax
26
115,213
44,576
Income tax
27
(6,273)
2,971
Net profit
108,940
47,547
Attributable to:
– Equity holders of the Company
106,935
46,181
– Non-controlling interests
2,005
1,366
Basic and diluted earnings per share
28
RMB3.78
RMB1.63
For the year ended 31 December 2024
112
Annual Report 2024 | Financial Report
Consolidated Statement of Comprehensive Income (continued)
The notes on pages 116 to 228 form an integral part of these consolidated financial statements.
2024
2023
RMB million
RMB million
Other comprehensive income
(56,687)
(21,699)
Other comprehensive income attributable to equity holders of the
Company (net of tax)
(56,770)
(21,741)
Other comprehensive income that may be reclassified to profit or loss
in subsequent periods:
Changes in fair value of investment in debt instruments at fair value
through other comprehensive income
219,720
74,843
Allowance for credit losses on investment in debt instruments at fair
value through other comprehensive income
(378)
(892)
Share of other comprehensive income of associates and joint ventures
under the equity method
3,287
(51)
Exchange differences on translating foreign operations
(66)
325
Financial changes in insurance contracts
(288,811)
(97,940)
Financial changes in reinsurance contracts
2,667
679
Other comprehensive income that may not be reclassified to profit or
loss in subsequent periods:
Changes in fair value of investment in equity instruments at fair value
through other comprehensive income
6,266
1,122
Share of other comprehensive income of associates and joint ventures
under the equity method
554
660
Financial changes in insurance contracts
(9)
(487)
Non-controlling interests
83
42
Total comprehensive income for the year, net of tax
52,253
25,848
Attributable to:
– Equity holders of the Company
50,165
24,440
– Non-controlling interests
2,088
1,408
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
113
Annual Report 2024 | Financial Report
The notes on pages 116 to 228 form an integral part of these consolidated financial statements.
Attributable to equity holders of the Company
Non-
controlling
interests
Total
Share
capital
Reserves
Retained
earnings
RMB million
(Note 32)
(Note 33)
As at 1 January 2023
28,265
159,784
278,074
8,958
475,081
Net profit
–
–
46,181
1,366
47,547
Other comprehensive income
–
(21,741)
–
42
(21,699)
Total comprehensive income
–
(21,741)
46,181
1,408
25,848
Transactions with shareholders
Appropriation to reserves (Note 33)
–
7,604
(7,604)
–
–
Dividends declared
–
–
(13,850)
–
(13,850)
Dividends to non-controlling interests
–
–
–
(425)
(425)
Reserves to retained earnings (Note 33)
–
(94)
94
–
–
Others
–
380
–
–
380
Total transactions with shareholders
–
7,890
(21,360)
(425)
(13,895)
As at 31 December 2023
28,265
145,933
302,895
9,941
487,034
Appropriation to reserves (Note 2.1.3)
–
19,762
(19,762)
–
–
As at 1 January 2024
28,265
165,695
283,133
9,941
487,034
Net profit
–
–
106,935
2,005
108,940
Other comprehensive income
–
(56,770)
–
83
(56,687)
Total comprehensive income
–
(56,770)
106,935
2,088
52,253
Transactions with shareholders
Appropriation to reserves (Note 33)
–
11,889
(11,889)
–
–
Dividends declared (Note 30)
–
–
(17,807)
–
(17,807)
Dividends to non-controlling interests
–
–
–
(463)
(463)
Reserves to retained earnings (Note 33)
–
(2,005)
2,005
–
–
Others
–
224
–
7
231
Total transactions with shareholders
–
10,108
(27,691)
(456)
(18,039)
As at 31 December 2024
28,265
119,033
362,377
11,573
521,248
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
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The notes on pages 116 to 228 form an integral part of these consolidated financial statements.
2024
2023
RMB million
RMB million
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax
115,213
44,576
Adjustments for:
Investment income
(176,461)
9,375
Interest income
(120,958)
(122,994)
Expected credit losses
(207)
(1,217)
Other impairment losses
1,611
–
Insurance contracts and reinsurance contracts held
580,024
460,499
Depreciation and amortisation
5,029
5,016
Foreign exchange gains/(losses)
25
381
Investment income from associates and joint ventures
(12,077)
(8,079)
Decrease/(increase) in financial assets at fair value through profit or loss, net
–
(13,777)
Increase/(decrease) in financial liabilities at fair value through profit or loss, net
–
(2,187)
Receivables and payables
(11,751)
5,877
Income tax paid
(1,653)
(1,036)
Interest received – financial assets at fair value through profit or loss
–
7,317
Dividends received – financial assets at fair value through profit or loss
–
615
Net cash inflow/(outflow) from operating activities
378,795
384,366
CASH FLOWS FROM INVESTING ACTIVITIES
Disposals and maturities
2,029,653
1,019,894
Purchases
(2,503,459)
(1,721,536)
Investments in associates and joint ventures
(37,955)
(4,217)
Decrease/(increase) in term deposits, net
(24,551)
80,787
Decrease/(increase) in financial assets purchased under agreements to resell, net
(8,417)
21,837
Interest received
151,721
145,824
Dividends received
38,388
33,373
Cash paid related to other investing activities
–
(198)
Net cash inflow/(outflow) from investing activities
(354,620)
(424,236)
For the year ended 31 December 2024
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Consolidated Statement of Cash Flows (continued)
The notes on pages 116 to 228 form an integral part of these consolidated financial statements.
2024
2023
RMB million
RMB million
CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in financial assets sold under agreements to
repurchase, net
(65,875)
67,129
Cash received from borrowings
65
43
Interest paid
(8,650)
(7,921)
Repayment of borrowings and bonds
(35,138)
(577)
Dividends paid to equity holders of the Company
(17,807)
(13,850)
Dividends paid to non-controlling interests
(458)
(418)
Proceeds from issue of bonds
35,000
–
Payment of lease liabilities
(1,074)
(1,149)
Capital injected into subsidiaries by non-controlling interests, net
7,178
18,035
Cash received related to other financing activities
–
750
Cash paid related to other financing activities
–
(1,769)
Net cash inflow/(outflow) from financing activities
(86,759)
60,273
Foreign exchange gains/(losses) on cash and cash equivalents
28
64
Net increase/(decrease) in cash and cash equivalents
(62,556)
20,467
Cash and cash equivalents
Beginning of the period
148,061
127,594
End of the period
85,505
148,061
Analysis of balances of cash and cash equivalents
Cash at banks and in hand
85,118
147,453
Short-term bank deposits
387
608
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
116
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1 ORGANISATION AND PRINCIPAL ACTIVITIES
China Life Insurance Company Limited (the “Company”) was established in the People’s Republic of China (“China” or
the “PRC”) on 30 June 2003 as a joint stock company with limited liability as part of a group restructuring of China Life
Insurance (Group) Company (“CLIC”, formerly China Life Insurance Company) and its subsidiaries (the “Restructuring”).
The Company and its subsidiaries are hereinafter collectively referred to as the “Group”. The Group’s principal activities are
the underwriting of life, health, accident and other types of personal insurance business; reinsurance for personal insurance
business; fund management business permitted by national laws and regulations or approved by the State Council of the
People’s Republic of China, etc.
The Company is a joint stock company incorporated in the PRC with limited liability. The address of its registered office is
16 Financial Street, Xicheng District, Beijing, the PRC. The Company is listed on the Stock Exchange of Hong Kong Limited,
and the Shanghai Stock Exchange.
These consolidated financial statements are presented in millions of Renminbi (“RMB million”) unless otherwise stated. These
consolidated financial statements have been approved and authorised for issue by the Board of Directors on 26 March 2025.
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.
2.1 Basis of preparation
The Group has prepared these consolidated financial statements in accordance with IFRS® Accounting Standards, amendments
to IFRS Accounting Standards and interpretations issued by the International Accounting Standards Board (“IASB”). These
consolidated financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing
of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and the applicable disclosure requirements
of the Hong Kong Companies Ordinance. The Group has prepared the consolidated financial statements under the historical
cost convention, except for financial assets and liabilities measured at fair value, assets or liabilities held for insurance
contracts and reinsurance contracts, certain property, plant and equipment at deemed cost as part of the restructuring
process. The preparation of financial statements in compliance with IFRS Accounting Standards requires the use of certain
material estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements are disclosed in Note 4.
2.1.1 New accounting standards and amendments adopted by the Group for the first time for the
financial year beginning on 1 January 2024
Standards/Amendments
Content
Effective for
annual periods
beginning on or after
Amendments to IAS 1
Classification of Liabilities as Current or Non-current
1 January 2024
Amendments to IAS 1
Non-Current Liabilities with Covenants
1 January 2024
Amendments to IFRS 16
Lease Liabilities in a sale and Leaseback
1 January 2024
Amendments to IAS 7, “Statement of
Cash Flows” and IFRS 7, “Financial
Instruments: Disclosures”
Financing Arrangements of Supplier
1 January 2024
The above amendments to the standards did not have any significant impact on the consolidated financial statements of
the Group for the year ended 31 December 2024.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.1 Basis of preparation (continued)
2.1.2 New accounting standards and amendments that are issued but not yet effective and have not
been early adopted by the Group for the financial year beginning on 1 January 2024
Standards/Amendments
Content
Effective for
annual periods
beginning on or after
IFRS 18 (i)
Presentation and Disclosure in Financial Statements
1 January 2027
IFRS 19
Subsidiaries without Public Accountability:
Disclosures
1 January 2027
Amendments to IFRS 9 and IFRS 7
Amendments to the Classification and
Measurement of Financial Instruments
1 January 2026
Amendments to IFRS 10 and IAS 28
Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture
No mandatory effective
date yet determined
but available
for adoption
Amendments to IAS 21
Lack of Convertibility
1 January 2025
Annual Improvements to IFRS
Accounting Standards—Volume 11
Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10
and IAS7.
1 January 2026
(i)
IFRS 18 replaces IAS 1 Presentation of Financial Statements. While a number of sections have been brought forward from IAS 1 with limited changes,
IFRS 18 introduces new requirements for presentation within the statement of profit or loss, including specified totals and subtotals. Entities are required
to classify all income and expenses within the statement of profit or loss into one of the five categories: operating, investing, financing, income taxes
and discontinued operations and to present two new defined subtotals. IFRS 18 and the consequential amendments to other IFRS Accounting Standards
are effective for annual periods beginning on or after 1 January 2027 with earlier application permitted. Retrospective application is required.
The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
The Group is currently assessing the impact on the Group’s consolidated financial statements.
2.1.3 Appropriation to reserves on 1 January 2024
Pursuant to the relevant PRC laws and regulations, the Company appropriated 10% of its net profit prepared in accordance
with the Accounting Standards for Business Enterprises (“ASBE”) to statutory reserve fund and the general reserve
separately. In 2017, the Ministry of Finance of the PRC (referred to as the “MOF”) issued the ASBE No. 22 – Recognition
and Measurement of Financial Instruments (Caikuai [2017] No. 7), ASBE No. 23 – Transfer of Financial Assets (Caikuai [2017]
No. 8), ASBE No. 24 – Hedge Accounting (Caikuai [2017] No. 9), and ASBE No. 37 – Presentation of Financial Instruments
(Caikuai [2017] No. 14). In 2020, the MOF issued ASBE No. 25 – Insurance Contracts (Caikuai [2020] No. 20). The Company
adopted these aforementioned accounting standards for its financial statements prepared in accordance with the ASBE from
1 January 2024. As a result, the Company adjusted the retained earnings and reappropriated the amount of the reserves
based on the impact of application of the new accounting standards on 1 January 2024.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.2 Consolidation
The consolidated financial statements include the financial statements of the Company and its subsidiaries for the year
ended 31 December 2024. Subsidiaries are those entities which are controlled by the Group (including the structured
entities controlled by the Group). Control is achieved when the Group is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically,
the Group controls an investee if and only if the Group has:
• power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee);
• exposure, or rights, to variable returns from its involvement with the investee; and
• the ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
• the contractual arrangement with the other vote holders of the investee;
• rights arising from other contractual arrangements; and
• the Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over
the subsidiary and ceases when the Group loses control of the subsidiary.
Profit or loss and each component of OCI are attributed to the equity holders of the Company and to the non-controlling
interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made
to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All
intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of
the Group are eliminated in full upon consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If
the Group loses control over a subsidiary, it:
• derecognises the assets (including goodwill) and liabilities of the subsidiary;
• derecognises the carrying amount of any non-controlling interests;
• derecognises the cumulative translation differences recorded in equity;
• recognises the fair value of the consideration received;
• recognises the fair value of any investment retained;
• recognises any surplus or deficit in profit or loss; and
• reclassifies the Group’s share of components previously recognised in OCI to profit or loss or retained earnings, as
appropriate, as if the Group had directly disposed of the related assets or liabilities.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.2 Consolidation (continued)
The consolidated financial statements incorporate the financial statements of the combining entities or businesses in
business combination under common control as if they had been combined from the date when the combining entities
or businesses first came under the control of the ultimate holding company. The net assets of the combining entities or
businesses are consolidated using the carrying amount from the ultimate holding company’s perspective. No amount is
recognised for goodwill or excess of the Group’s interest in the book value of the net assets over cost at the time of the
common control combination, to the extent of the continuation of the ultimate holding company’s interest. The consolidated
statement of comprehensive income includes the results of each of the combining entities or businesses from the earliest
date presented or since the date when the combining entities or businesses first came under common control, where this
is a shorter period, regardless of the date of the common control combination.
The comparative financial data have been restated to reflect the business combinations under common control occurred during
this year. Transaction costs, including professional fees, registration fees, costs of furnishing information to shareholders,
costs or losses incurred in combining operations of the previously separate businesses and other costs incurred in relation
to the common control combination that is to be accounted for by using the merger accounting method are recognised as
expenses in the period in which they are incurred.
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group, other than
common control combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets
transferred, the liabilities incurred and the equity interest issued by the Group. The consideration transferred includes the fair
value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed
as incurred. Identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair value at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises
any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the
acquiree’s net assets.
The excess of the aggregate of the consideration transferred, the fair value of any non-controlling interest in the acquiree,
and the fair value of any previous equity interest in the acquiree at the acquisition date over the fair value of the net
identifiable assets acquired and liabilities assumed is recorded as goodwill. If this is less than the fair value of the net assets
of the subsidiary acquired in the case of a bargain purchase, the Group re-assesses whether it has correctly identified all
of the assets acquired and all of the liabilities assumed, and reviews the procedures used to measure the amounts to be
recognised at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired
over the aggregate consideration transferred, then the gain is recognised in profit or loss. Goodwill is tested annually for
impairment and carried at cost less accumulated impairment losses. If there is any indication that goodwill is impaired,
recoverable amount is estimated and the difference between carrying amount and recoverable amount is recognised as an
impairment charge. Impairment losses on goodwill are not reversed in subsequent periods. Gains or losses on the disposal
of an entity take into consideration the carrying amount of goodwill relating to the entity sold.
The investments in subsidiaries are accounted for only in the Company’s statement of financial position at cost less
impairment. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments. Cost
also includes direct attributable costs of investment. The results of subsidiaries are accounted for by the Company on the
basis of dividends received and receivable.
Transactions with non-controlling interests
The Group treats transactions with non-controlling interests that do not result in loss of controls as equity transactions.
For shares purchased from non-controlling interests, the difference between any consideration paid and the relevant share
acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposal of shares
to non-controlling interests are also recorded in equity.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.2 Consolidation (continued)
Transactions with non-controlling interests (continued)
When the Group ceases to have control or significant influence, any retained interest in the entity is re-measured to its fair
value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the
purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition,
any amounts previously recognised in OCI in respect of that entity are accounted for as if the Group had directly disposed
of the related assets or liabilities. This may mean that amounts previously recognised in OCI are reclassified to profit or loss.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the
amounts previously recognised in OCI is reclassified to profit or loss as appropriate.
2.3 Associates and joint ventures
Associates are entities over which the Group has significant influence, generally accompanying a shareholding of between
20% and 50% of the voting rights of the investee. Significant influence is the power to participate in the financial and
operating policy decisions of the investee, but is not control or joint control over those policies.
Joint ventures are the type of joint arrangements whereby the parties that have joint control of the arrangement have
rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement,
which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
Investments in associates and joint ventures are accounted for using the equity method of accounting and are initially
recognised at cost.
The Group’s share of post-acquisition profit or loss of its associates and joint ventures is recognised in net profit, and its
share of post-acquisition movements in OCI is recognised in the consolidated statement of comprehensive income. The
cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s
share of losses in an associate or joint venture equals or exceeds its interest in the associate or joint venture, including
any other unsecured receivables, the Group does not recognise further losses unless it has obligations to make payments
on behalf of the associate or joint venture.
Unrealised gains on transactions between the Group and its associates or joint ventures are eliminated to the extent of the
Group’s interests in the associates or joint ventures. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred. Associates and joint ventures’ accounting policies have been changed
where necessary to ensure consistency with the policies adopted by the Group. The Group adjusts the financial statements
of its associates and joint ventures for insurance companies that have not adopted IFRS 9 and IFRS 17 in accordance with
the Group’s accounting policies and recognizes investment income and other comprehensive income, etc. accordingly.
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable
assets of acquired associates or joint ventures at the date of acquisition. Goodwill on acquisitions of associates and joint
ventures is included in investments in associates and joint ventures and is tested for impairment as part of the overall
balance. Impairment losses on goodwill are not reversed. Gains or losses on the disposal of an entity take into consideration
the carrying amount of goodwill relating to the entity sold.
The Group determines at each reporting date whether there is any objective evidence that the investments in associates and
joint ventures are impaired. If this is the case, an impairment loss is recognised for the amount by which the investment’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the investment’s fair value less
costs of disposal and value in use. The impairment of investments in the associates and joint ventures is reviewed for
possible reversal at each reporting date.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.4 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. A financial asset or a financial liability is recognised when the Group becomes a party to the
contractual provisions of the instrument.
Purchase and sale of investments are recognised on the trade date, when the Group commits to purchase or sell assets.
At initial recognition, financial assets or financial liabilities not at fair value through profit or loss are measured at fair value
plus or minus transaction costs (such as related charges and commissions) that are directly attributable to the acquisition
or issue of such financial assets or financial liabilities. For financial assets and financial liabilities at fair value through profit
or loss, transaction costs are recognised in profit or loss.
2.4.1 Financial assets
Classification and measurement
Based on the Group’s business model for managing the financial assets and the contractual cash flow characteristics of the
financial assets, financial assets are classified as: financial assets at amortised cost, investment in debt instruments at fair
value through other comprehensive income, investment in equity instruments at fair value through other comprehensive
income, and financial assets at fair value through profit or loss. When, and only when, the Group changes the business
model for managing financial assets, the Group shall reclassify all affected financial assets.
Debt instruments
Debt instruments are those financial instruments that meet the definition of a financial liability from the issuer’s perspective.
Classification and subsequent measurement of debt instruments depend on:
(a) the Group’s business model for managing assets; and
(b) cash flow characteristics of financial assets (whether the cash flows are solely payments of principal and interest on
the principal amount outstanding).
Based on these factors, the Group classifies its debt instruments into the following three measurement categories:
i. Financial assets at amortised cost
The financial asset is held within a business model whose objective is to collect the contractual cash flows, and the
contractual cash flow characteristics are consistent with a basic lending arrangement, which gives rise on specified dates
to the contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, and
the financial assets are not designated as at fair value through profit or loss, so they are measured at amortised cost. The
interest income of such financial assets is recognised using the effective interest rate method. Impairment losses and foreign
exchange gains or losses are recognised in profit or loss. The gains or losses arising from derecognition are recognised
directly in profit or loss. The financial assets held by the Group mainly include cash and cash equivalents, investment in
debt instruments at amortised cost, financial assets purchased under agreements to resell, term deposits, etc.
ii. Investments in debt instruments at fair value through other comprehensive income
The financial asset is held within a business model whose objectives are both collecting the contractual cash flows and
selling such financial assets, and the contractual cash flow characteristics are consistent with a basic lending arrangement. In
addition, the financial assets are not designated as at fair value through profit or loss. Such financial assets are measured at
fair value through other comprehensive income, and interest income is recognised using the effective interest rate method.
Impairment losses and foreign exchange gains or losses are recognised in profit or loss for the current period. When such
financial assets are derecognised, the cumulative changes in fair value recognised in other comprehensive income are
carried forward to profit or loss for the current period.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.4 Financial instruments (continued)
2.4.1 Financial assets (continued)
Classification and measurement (continued)
Debt instruments (continued)
iii. Financial assets at fair value through profit or loss
Debt instruments held by the Group that are not measured at amortised cost or fair value through other comprehensive
income are classified as financial assets at fair value through profit or loss. These financial assets are subsequently measured
at fair value. Net gains or losses, including any interest or dividend income, are recognised in profit or loss within investment
income. The interest income of debt instruments under this type of financial asset is calculated based on the coupon rate.
Equity instruments
Equity instruments are financial instruments that meet the definition of equity instruments when analysed from the issuer’s
perspective.
All equity instruments held by the Group are subsequently measured at fair value, and gains or losses are recognised in
profit or loss. However, on initial recognition of an equity investment that is not held for trading, the Group may irrevocably
elect to present subsequent changes in the instrument’s fair value in other comprehensive income, and no provision for
impairment is required. Dividend income is recognised in profit or loss for the period (except for those clearly represent
a recovery of part of the cost of the investments). Other net gains and losses (including exchange gains and losses) are
recognised in other comprehensive income, and may not be subsequently transferred to profit or loss. Changes in the
fair value of equity instruments measured at fair value through profit and loss, including any dividend income and foreign
exchange gains and losses, are recognised in profit or loss within investment income. Dividend incomes on these equity
instruments, which are generally determined at the amounts to be distributed by the investees, are recognised when the
Group’s right to receive the payment is established.
Equity instruments classified as financial assets at fair value through profit or loss. After the initial confirmation, gains or
losses arising from changes in the fair value of such financial assets (including dividend income earned and exchange gains
or losses) are recognised in profit or loss for the period and shown in investment income. Dividend income from equity
instruments is generally determined by the amount distributed by the investee and is recognised when the Group’s right
to receive dividends is established.
Impairment
Expected credit losses (“ECL”) refer to the weighted average of credit losses with the respective risks of a default occurring
as the weights. Credit loss refers to the difference between all contractual cash flows discounted at the original effective
interest rate or credit-adjusted effective interest rate for credit-impaired financial assets and receivable under the contract
and all cash flows expected to be received, which is the present value of all cash shortfalls.
The Group recognises credit losses the basis of the ECL for cash and cash equivalents, term deposits, statutory deposits,
financial assets purchased under agreements to resell, investment in debt instrument at amortised cost, investment in debt
instrument at fair value through other comprehensive income, as well as other receivables etc.
Giving consideration to reasonable and supportable information on past events, current conditions and forecasts of future
economic conditions weighted by the probability of default, the Group recognises the ECL as the probability-weighted
amount of the present value of the difference between the cash flows receivable from the contract and the cash flows
expected to be collected.
At each reporting date, the ECL of financial instruments at different stages is measured respectively. 12-month ECL is
recognised for financial instruments in Stage 1 which do not have a significant increase in credit risk since initial recognition;
lifetime ECL is recognised for financial instruments in Stage 2 which have had a significant increase in credit risk since initial
recognition but are not deemed to be credit-impaired; and lifetime ECL is recognised for financial instruments in Stage 3
that has been credit-impaired.
For the year ended 31 December 2024
123
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.4 Financial instruments (continued)
2.4.1 Financial assets (continued)
Impairment (continued)
For the financial instruments in Stage 1 and Stage 2, the Group calculates the interest income by applying the effective
interest rate to the gross carrying amount (before net of expected credit losses). For the financial instruments in Stage 3,
the interest income is calculated by applying the effective interest rate to the amortised cost (net of expected credit losses).
The Group recognises the impairment gain or loss into profit or loss for the period. For debt instruments classified as fair
value through other comprehensive income, the Group recognises the loss allowance in profit or loss, meanwhile adjusts
other comprehensive income, which does not decrease the carrying amount of the financial assets.
Derecognition
A financial asset is derecognised when one of the following criteria is met: (i) the contractual rights to receive the cash
flows from the financial asset has expired, (ii) the financial asset has been transferred and the Group transfers substantially
all the risks and rewards of ownership of the financial asset to the transferee, or (iii) the financial asset has been transferred
and the Group has not retained control of the financial asset, although the Group neither transfers nor retains substantially
all the risks and rewards of ownership of the financial asset.
When an investment in equity instruments measured at fair value through other comprehensive income is derecognised,
the cumulative gain or loss previously recognised in other comprehensive income should be transferred out and recognised
in retained earnings. For other financial assets, when they are derecognised, their cumulative gains or losses previously
recognised in other comprehensive income should be transferred out and recognised in profit or loss.
2.4.2 Financial liabilities
Financial liabilities are classified into financial liabilities at amortised cost and financial liabilities at fair value through profit
or loss at initial recognition.
Financial liabilities at amortized cost consist primarily of interest-bearing loans and other borrowings, financial assets
sold under agreements to repurchase, bonds payable and liabilities arising from certain investment contracts without a
discretionary participation feature (presented in other liabilities). Such financial liabilities are initially recognised at fair value,
net of transaction costs incurred, and using the effective interest rate method for subsequent measurement.
Financial liabilities at fair value through profit or loss mainly include liabilities arising from certain investment contracts without
discretionary participation features (pension annuity products that do not transfer insurance risk), which are designated on
initial recognition for subsequent measurement at fair value, with all realized or unrealized gains and losses recognised in
profit or loss.
The Group retains substantially all the risk and rewards of ownership of securities sold under agreements to repurchase which
generally mature within 180 days from the transaction date. Therefore, securities sold under agreements to repurchase are
classified as secured borrowings. The Group may be required to provide additional collateral based on the fair value of the
underlying securities. Securities sold under agreements to repurchase are recorded at amortised cost, i.e., their cost plus
accrued interest at the end of the reporting period. The underlying asset of securities sold under agreements to repurchase
continue to be carried on the consolidated statement of financial position.
Bonds payable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest
rate method. Amortised cost is calculated by taking into account any discount or premium at acquisition and transaction costs.
A financial liability is derecognised or partly derecognised when the underlying present obligation is discharged or partly
discharged. The difference between the carrying amount of the derecognised part of the financial liability and the consideration
paid is recognised in profit or loss for the current period.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.5 Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement of assets and liabilities is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:
• in the principal market for the asset or liability; or
• in the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Group at the measurement date.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised
within the fair value hierarchy, described in Notes 5.4, 9 and 12 based on the lowest level input that is significant to the
fair value measurement as a whole.
For assets and liabilities that are measured at fair value on a recurring basis, the Group determines whether transfers
have occurred between each level in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.
2.6 Cash and cash equivalents
Cash amounts represent cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments
with original maturities of 90 days or less, whose carrying value approximates fair value.
2.7 Financial assets purchased under agreements to resell
The Group purchases securities under agreements to resell substantially identical securities. These agreements are classified
as secured loans and are recorded at amortised cost, i.e., their costs plus accrued interests at the end of the reporting
period, which approximates fair value. The amounts advanced under these agreements are reflected as assets in the
consolidated statement of financial position. The Group does not take physical possession of financial assets purchased
under agreements to resell. Sale or transfer of the securities is not permitted by the respective clearing house on which
they are registered while the lent capital is outstanding. In the event of default by the counterparty, the Group has the right
to the underlying securities held by the clearing house.
2.8 Insurance Contracts
2.8.1 Definition
The contracts issued by the Group are classified into insurance contracts and investment contracts.
An insurance contract is a contract under which the issuer of the contract accepts significant insurance risk from the
policyholder by agreeing to compensate the policyholder if a specified insured event adversely affects the policyholder. The
Group assesses the extent to which insurance risk is transferred within a contract, conducting a test for the presence of
significant insurance risk, thereby determining whether the contract should be classified as an insurance contract. Insurance
contracts are those contracts that transfer significant insurance risk.
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2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.1 Definition (continued)
When the Group performs tests on significant insurance risk, it determines that a contract transfers significant insurance
risk if the following conditions are met:
(a) at least in one scenario that has commercial substance, an insured event specified by the contract could cause the Group
to pay significant additional amounts, even if the insured event is extremely unlikely, or even if the expected present
value of the contingent cash flows is a small proportion of the expected present value of the remaining cash flows
from the insurance contract. Absence of discernible effect on the economics indicates lack of commercial substance.
The additional amounts refer to the present value of amounts payable if an insured event occurs that exceed those that
would be payable if no insured event had occurred (including claims handling and assessment costs);
(b) at least in one scenario that has commercial substance, an insured event specified by the contract could cause the
Group to incur a loss on a present value basis. However, even if a reinsurance contract does not expose the issuer to
the possibility of a significant loss, that contract is deemed to transfer significant insurance risk if it transfers to the
reinsurer substantially all the insurance risk relating to the reinsured portions of the underlying insurance contracts.
Investment contracts issued by the Group have the legal form of insurance contracts but do not transfer significant insurance
risks. The Group accounts for the investment contract with discretionary participation features applying the accounting
treatments for insurance contracts. An investment contract with discretionary participation features is a financial instrument
that provides a particular investor with the contractual right to receive guaranteed and additional amounts. The additional
amounts are subject to the returns on a specified pool of items at the discretion of the issuer, and are expected to be a
significant portion of the total contractual benefits. For liabilities arising from investment contracts without discretionary
participation features, the Group accounts for these contracts according to note 2.4.2.
An insurance contract is an insurance contract with direct participation features if all the following conditions are met at
the inception of the contracts:
(a) the contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items;
(b) an amount equal to a substantial share of the fair value returns on the underlying items is expected to be paid to the
policyholder; and
(c) a substantial proportion of any change in the amounts to be paid to the policyholder is expected to vary with the change
in fair value of the underlying items.
Reinsurance contract is an insurance contract issued by the reinsurer to compensate the cedent for claims arising from
one or more insurance contracts issued by the cedent.
The Group adopts different models for different types of insurance contracts. Insurance contracts with direct participation
features are measured using the variable fee approach. The Group simplifies the measurement using the premium allocation
approach for insurance contracts and reinsurance contracts with coverage of one year or less or contract groups where
there is no significant difference between the results of measuring liabilities for remaining coverage using the premium
allocation approach and the results of measuring such liabilities using general measurement model. Other types of insurance
and reinsurance contracts are measured using the general measurement model.
The Group assesses the classification of contracts using its expectations at inception of the contracts and does not reassess
the conditions afterwards, unless the contracts are modified.
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.2 Combination
The Group treats a series of insurance contracts with the same counterparty or related counterparties which may achieve
an overall commercial effect, as a whole in order to report the substance of such contracts.
2.8.3 Separation
An insurance contract may contain one or more components, the Group separates the following components:
(a) embedded derivatives meeting the separation conditions of accounting policies for financial instruments under IFRS
9 – Financial Instruments;
(b) distinct investment components, but the investment components that meet the definition of investment contracts with
discretionary participation features are still accounted for applying the accounting policies for insurance contracts;
(c) promises to transfer distinct goods or services other than insurance contract services.
Investment component is the amount that an insurance contract requires to repay to policyholders regardless of whether
an insured event occurs.
After the Group identifies and separates the non-insurance components that meet the above conditions for separation, the
Group applies the accounting policies related to insurance contracts to the remaining portion.
2.8.4 Classification
The Group identifies portfolios of insurance contracts as contracts subject to similar risks and are managed together.
A group of insurance contracts consists of one or more insurance contracts issued within a period of no longer than one
year and with similar levels of profitability.
The Group divides a portfolio of insurance contracts into a minimum of the following groups:
(a) a group of contracts that is onerous at initial recognition;
(b) a group of contracts that at initial recognition has no significant possibility of becoming onerous subsequently;
(c) a group of the remaining contracts in the portfolio.
Portfolios of reinsurance contracts held are assessed for aggregation separately from portfolios of insurance contracts issued.
The Group divides the same portfolio of reinsurance contracts held into at least the following groups of contracts:
(a) a group of contracts for which there is a net gain at initial recognition;
(b) a group of contracts for which, at initial recognition, there is no significant possibility of a net gain arising subsequently;
(c) a group of the remaining contracts in the portfolio.
The Group classifies reinsurance contracts held within a period of no longer than one year into the same group of reinsurance
contracts held.
These groups represent the level of aggregation at which insurance contracts are initially recognised and measured. The
Group does not reassess the composition of the groups subsequently.
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.5 Recognition
The Group recognizes a group of insurance contracts it issues from the earliest of the following:
(a) the beginning of the coverage period of the group of contracts, the coverage period refers to the period during which
the Group provides insurance contract services;
(b) the date when the first payment from a policyholder becomes due, or the date when the first payment is received by
the Group if there is no contractual due date;
(c) when it becomes onerous.
Reinsurance contracts held are recognised from the earliest of the following:
(a) the beginning of the coverage period of the group of reinsurance contracts held; and
(b) the date the Group recognizes an onerous group of underlying insurance contracts.
For the reinsurance contracts held that provide proportionate coverage, they are recognised from the earlier of the following:
(a) the later of the beginning of the coverage period or that any underlying insurance contract is initially recognised;
(b) the date the Group recognizes an onerous group of underlying insurance contracts.
2.8.6 Measurement of insurance contracts
(i) General provisions (general measurement model)
Initial measurement
On initial recognition, the Group shall measure a group of insurance contracts at the total of the fulfilment cash flows and
the contractual service margin.
Fulfilment cash flows comprise the following:
(a) estimates of future cash flows directly related to the insurance contract;
(b) an adjustment to reflect the time value of money and the financial risks; and
(c) a risk adjustment for non-financial risk.
The fulfilment cash flows do not reflect the non-performance risk of the Group.
The Group defines insurance acquisition cash flows as cash flows arising from the costs of selling, underwriting and starting
a group of insurance contracts that are directly attributable to the portfolio of insurance contracts to which the group belongs.
The Group may estimate the future cash flows at a higher level of aggregation and then allocate the resulting fulfilment
cash flows to individual groups of contracts.
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.6 Measurement of insurance contracts (continued)
(i) General provisions (general measurement model) (continued)
Initial measurement (continued)
The estimates of future cash flows:
(a) estimates of future cash flows are unbiased probability-weighted averages;
(b) reflect the perspective of the Group, provided that the estimates of any relevant market variables are consistent with
observable market prices for those variables;
(c) reflect conditions existing at the reporting date; and
(d) are estimated separately from adjustment for the time value of money and financial risk, unless the most appropriate
measurement technique combines these estimates.
The Group includes in the measurement of a group of insurance contracts all the future cash flows within the boundary of
each contract in the group and does not measure future cash flows outside the boundary of the contract group.
Cash flows are within the boundary of an insurance contract if the Group has the right to require policyholders to pay
premiums or has a substantive obligation to provide policyholders with insurance contract services.
A substantive obligation to provide insurance contract services ends when:
(a) the Group has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or
level of benefits that fully reflects those risks; or
(b) the Group has the practical ability to reassess the risks of the portfolio of insurance contracts that contains the contract
and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio; and the pricing of the
premiums up to the date when the risks are reassessed does not take into account the risks that relate to periods after
the reassessment date.
The Group uses appropriate discount rate to adjust the estimates of future cash flows to reflect the time value of money
and the financial risks related to those cash flows, to the extent that the financial risks are not included in the estimates
of cash flows. The discount rates applied to scope out of the future cash flows shall:
(a) reflect the time value of money, the characteristics of the cash flows and the liquidity characteristics of the insurance
contracts; and
(b) be consistent with observable current market prices for financial instruments with cash flows whose characteristics are
consistent with those of the insurance contracts, excluding the effect of factors that influence such observable market
prices but do not affect the future cash flows of the insurance contracts.
The risk adjustment for non-financial risk is applied to the present value of the estimated future cash flows, to reflect the
compensation that the Group requires for bearing the uncertainty about the amount and timing of the cash flows that arises
from non-financial risk.
The contractual service margin is a component of the liability for the group of insurance contracts that represents the
unearned profit the Group will recognise as it provides insurance contract services in the future.
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.6 Measurement of insurance contracts (continued)
(i) General provisions (general measurement model) (continued)
Initial measurement (continued)
On initial recognition, the contractual service margin is an amount arising from:
(a) the fulfilment cash flows;
(b) the derecognition at the date of initial recognition of any asset for insurance acquisition cash flows and any other asset
or liability previously recognised for cash flows related to the group of contracts;
(c) any cash flows arising from the contracts in the group at that date.
If the total amount represents net cash inflows, the Group recognizes it as contract service margin. If the total amount
represents net cash outflows, the Group recognizes a loss.
Subsequent measurement
The insurance contract liabilities are subsequently measured by the Group at the reporting date at the total of the liabilities
for remaining coverage and the liabilities for incurred claims.
The liability for remaining coverage includes the fulfilment cash flows related to unexpired coverage period allocated to the
group at the reporting date and the contractual service margin of the group at that date.
The liability for incurred claims includes the fulfilment cash flows related to claims and other related expenses incurred
allocated to the group at the reporting date.
For insurance contracts without direct participation features, the carrying amount of the contractual service margin of a
group of insurance contracts at the reporting date is adjusted by the Group to reflect the effect of the following changes
at the group of contracts level:
(a) the effect of any new contracts added to the group;
(b) interest accreted on the carrying amount of the contractual service margin for contracts measured using the general
measurement model. Interest accreted on the contractual service margin is measured at the locked-in discount rates.
The locked-in discount rates are determined at the date of initial recognition of a group of contracts, applied to nominal
cash flows that do not vary based on the returns on any underlying items;
(c) changes relating to future service; except for
• when the changes result in a decrease in the carrying amount of the contractual service margin, and the changes
exceed the carrying amount of the contractual service margin. The contractual service margin is reduced to zero, and
the excess is recognised in insurance service expenses and a loss component is recognised within the liabilities for
remaining coverage;
• the above changes adjust the loss component within the liabilities for remaining coverage with correspondence to
insurance service expenses. When the changes exceed the amount of loss component, the loss component should be
reduced to zero. The remaining should be reinstating the contractual service margin.
(d) the effect of any currency exchange differences on the contractual service margin; and
(e) the amount recognised as insurance revenue because of the services provided in the period. The Group rationally
determines the coverage units of the groups of contracts in each period of the coverage period based on the pattern
of provision of insurance contract services, and recognises insurance revenue accordingly over the current and future
periods by amortising the carrying amount of the contractual service margin as adjusted for (a) to (d) above.
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.6 Measurement of insurance contracts (continued)
(i) General provisions (general measurement model) (continued)
Subsequent measurement (continued)
Changes in fulfilment cash flows that related to future services mainly comprise:
(a) experience adjustments arising from premiums received in the period that related to future services and related cash
flows, measured at the discount rates determined on initial recognition;
(b) changes in estimates of the present value of future cash flows in the liabilities for remaining coverage, measured at the
discount rates determined on initial recognition, except for those that relate to the effects of the time value of money,
financial risk and changes therein;
(c) differences between the amount of investment components that were expected to be payable in the period and the
amount of investment components that actually became payable;
(d) differences between the amount of policy loans that were expected to be receivable in the period and the amount of
policy loans that actually became receivable;
(e) changes in risk adjustment for non-financial risk that relate to future service.
(ii) Measurement of groups of insurance contracts with direct participation features (variable fee approach)
The measurement of variable fee approach is consistent with the general measurement model except for the accounting
policies listed below.
The Group applies the variable fee approach to measure the insurance contracts with direct participation features. The Group
estimates the fulfilment cash flows of the groups of insurance contracts with direct participation features at the difference
between the fair value of the underlying items and the variable fee.
The variable fee reflects the consideration received by the Group for providing investment-related services by managing the
underlying items on behalf of the policyholder, and is equal to the Group’s share of the fair value of the underlying items
less the fulfilment cash flows that do not vary based on the return on the underlying items.
For groups of insurance contracts measured using the variable fee approach, the carrying amount of the contractual service
margin of a group of contracts at each reporting date equals the carrying amount at the start of the reporting period adjusted
for:
(a) the effect of any new contracts added to the group;
(b) the change in the amount of the Group’s share of the fair value of the underlying items, except to the extent that:
• the decrease in the amount of the Group’s share of the fair value of the underlying items exceeds the carrying amount
of the contractual service margin, giving rise to a loss;
• the increase in the amount of the Group’s share of the fair value of the underlying items reverses the loss component
of the liabilities for remaining coverage.
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.6 Measurement of insurance contracts (continued)
(ii) Measurement of groups of insurance contracts with direct participation features (variable fee approach) (continued)
(c) the changes in fulfilment cash flows relating to future service and do not vary based on the returns of the fair value of
underlying items, except to the extent that:
• such increases in the fulfilment cash flows exceed the carrying amount of the contractual service margin, giving rise to
a loss;
• such decreases in the fulfilment cash flows are allocated to the loss component of the liabilities for remaining coverage.
(d) the effect of any currency exchange differences on the contractual service margin; and
(e) the amount recognised as insurance revenue because of the services provided in the period. The Group identifies the
coverage units of the groups of contracts for the coverage period in accordance with the insurance contract service
provided, and recognised in the insurance revenue of the current period and subsequent periods accordingly by allocating
the carrying amount of the contractual service margin as adjusted for (a) to (d) above.
(iii) Measurements for onerous insurance contracts
If a group of insurance contracts is onerous at the date of initial recognition, or if additional loss caused by contracts added
to the group of onerous contracts, the Group recognizes a loss as insurance service expenses in profit or loss for the net
outflow for the group of onerous contracts, resulting in the carrying amount of the liabilities for remaining coverage for the
group being equal to the fulfilment cash flows and the contractual service margin of the group being zero.
A group of insurance contracts becomes onerous (or more onerous) on subsequent measurement if it meets one of
the following conditions, the Group recognizes a loss as insurance service expenses in profit or loss and increases loss
component of the liabilities for remaining coverage:
(a) the amount of unfavorable changes relating to future service in the fulfilment cash flows changes in estimates of future
cash flows and the risk adjustment for non-financial risk exceed the carrying amount of the contractual service margin;
(b) for a group of insurance contracts with direct participation features, the decrease in the amount of the Group’s share
of the fair value of the underlying items exceed the carrying amount of the contractual service margin.
After a loss is recognised, the Group allocates the subsequent changes in fulfilment cash flows of the liabilities for remaining
coverage specified as follows on a systematic basis between the loss component and the liabilities for remaining coverage
excluding the loss component:
(a) estimates of the present value of future cash flows for claims and expenses released from the liabilities for remaining
coverage because of incurred insurance service expenses;
(b) changes in the risk adjustment for non-financial risk recognised in profit or loss because of the release from risk; and
(c) insurance finance income or expenses.
Any amounts allocated to the loss component of the liabilities for remaining coverage are not recognised as insurance revenue.
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.6 Measurement of insurance contracts (continued)
(iii) Measurements for onerous insurance contracts (continued)
After the Group has recognised a loss on an onerous group of insurance contracts, the subsequent measurements are:
(a) for any subsequent increases relating to future service in fulfilment cash flows allocated to the group arising from
changes in estimates of future cash flows and the risk adjustment for non-financial risk, and any subsequent decreases
in the amount of the Group’s share of the fair value of the underlying items, the Group recognizes a loss as insurance
service expenses in profit or loss and increases the liabilities for remaining coverage;
(b) for any subsequent decreases relating to future service in fulfilment cash flows allocated to the group arising from
changes in estimates of future cash flows and the risk adjustment for non-financial risk, and any subsequent increases
in the amount of the Group’s share of the fair value of the underlying items, the Group reverses the insurance service
expenses in profit or loss and decreases the loss component of the liabilities for remaining coverage until that component
is reduced to zero, the Group adjusts the contractual service margin only for the excess of the decrease over the amount
allocated to the loss component.
(iv) Simplified approach for measurement of groups of insurance contracts (premium allocation approach)
The Group uses the premium allocation approach for measuring the group of insurance contracts with a coverage period
of each contract in the group is one year or less, or the Group reasonably expects that the measurement of the liabilities
for remaining coverage for the group using the premium allocation approach that would not differ materially from the one
that would be produced using general measurement model.
Initial measurement
On initial recognition, the Group measures the liabilities for remaining coverage based on the premiums received minus the
insurance acquisition cash flows, minus (or add) the amount of the assets for insurance acquisition cash flows and other
related assets or liabilities that is derecognised at the initial recognition.
Subsequent measurement
The carrying amount of insurance contracts liabilities issued at the reporting date is the sum of the liabilities for remaining
coverage and the liabilities for incurred claims.
At the reporting date, the carrying amount of the liabilities for remaining coverage is the carrying amount at the start of
the reporting period plus the premiums received in the period, minus insurance acquisition cash flows, plus any amounts
relating to the amortization of insurance acquisition cash flows recognised as insurance service expenses in the reporting
period, plus any adjustment to a financing component, minus the amount recognised as insurance revenue for services
provided in that period, and minus any investment component paid or transferred to the liabilities for incurred claims.
If, at any time during the coverage period, relevant facts and circumstances indicate that a group of insurance contracts is
onerous, the Group will recognise a loss in profit or loss and increase the liabilities for remaining coverage.
The Group recognises the liabilities for incurred claims of the insurance contracts as the amount of fulfilment cash flow
related to the incurred compensation.
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.7 Measurement of groups of reinsurance contracts held
(i) Groups of reinsurance contracts not measured using the premium allocation approach
On initial recognition, the Group measures a group of reinsurance contracts held at the total of the fulfilment cash flows and
the contractual service margin. The contractual service margin represents the net cost or net gain the Group will recognize
as it receives insurance contract services from the reinsurer.
The fulfilment cash flows for the group of reinsurance contracts held include estimates of future cash flows, an adjustment
to reflect the time value of money and the financial risks and a risk adjustment for non-financial risk, which relate directly to
fulfil insurance contracts. The Group determines the risk adjustment for non-financial risk so that it represents the amount
of risk being transferred by the holder of the group of reinsurance contracts to the issuer of those contracts.
The cash flows are within the contract boundary if they arise from substantive rights and obligations of the Group that exist
during the reporting period in which the Group is obligated to pay premiums to the reinsurer or in which the Group has a
substantive right to receive services from the reinsurer.
On initial recognition for a group of reinsurance contracts held, the Group calculates the sum of:
(a) the fulfilment cash flows;
(b) the amount derecognised at that date of any asset or liability previously recognised for cash flows related to the group
of reinsurance contracts held;
(c) any cash flows arising from the reinsurance contracts held in the group at that date;
(d) loss-recovery component of assets for remaining coverage of reinsurance contracts held.
The Group recognizes any net cost or net gain of the above total amounts as a contractual service margin.
The assets for reinsurance contracts held is subsequently measured by the Group at each reporting date at the total of the
asset for remaining coverage and the asset for incurred claims.
The asset for remaining coverage includes the fulfilment cash flows related to unexpired coverage period allocated to the
group of reinsurance contracts held at the reporting date and the contractual service margin of the group at that date.
The asset for incurred claims includes the fulfilment cash flows related to recovery of claims and other related expenses
incurred allocated to the group of reinsurance contracts held at the reporting date.
If the reinsurance contract held is entered into before or at the same time as the onerous underlying insurance contracts are
recognised, when the Group recognises a loss on initial recognition of an onerous group of underlying insurance contracts
or on addition of onerous underlying insurance contracts to a group, the Group recognises a loss-recovery component of
the asset for remaining coverage for such groups of reinsurance contracts held by multiplying:
(a) the loss recognised on the underlying insurance contracts; and
(b) the percentage of claims on the underlying insurance contracts the Group expects to recover from the group of reinsurance
contracts held.
The Group recognises the amount calculated above as an adjustment to contractual service margin and simultaneously as
recoveries of insurance service expenses from reinsurers in profit or loss of the period.
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.7 Measurement of groups of reinsurance contracts held (continued)
(i) Groups of reinsurance contracts not measured using the premium allocation approach (continued)
When the Group measures the groups of reinsurance contracts held, it adjusts the loss-recovery component to reflect
changes in the loss components of the onerous underlying insurance contracts, with the carrying amount of the loss-recovery
component not exceeding the portion of the carrying amount of the loss components of the onerous underlying insurance
contracts that the Group expects to recover from the group of reinsurance contracts held.
The Group measures the contractual service margin at each reporting date for a group of reinsurance contracts held as the
carrying amount determined at the start of the reporting period, adjusted for:
(a) the effect of contracts added to the group of contracts in the period on the contractual service margin;
(b) interest accreted on the carrying amount of the contractual service margin, measured at the discount rates determined
at the date of initial recognition of a group of contracts, to nominal cash flows that do not vary based on the returns on
any underlying items;
(c) the loss-recovery component of the asset for remaining coverage recognised on initial recognition of an onerous group
of underlying insurance contracts or on addition of onerous underlying insurance contracts to a group, and reversals of
a loss recovery component of the asset for remaining coverage to the extent those reversals are not changes in the
fulfilment cash flows of the group of reinsurance contracts held;
(d) the changes in the fulfilment cash flows relating to future service, other than the change resulting from a change in
fulfilment cash flows allocated to a group of underlying insurance contracts that does not adjust the contractual service
margin for the group of underlying insurance contracts, or the change resulting from recognition or reversal of losses
from onerous groups of underlying contracts measured applying the premium allocation approach;
(e) the effect of any currency exchange differences in the period arising on the contractual service margin;
(f) the amortisation of the contractual service margin in the period. The Group rationally determines the coverage units
of the group of reinsurance contracts held in each period of the coverage period based on the pattern of receipt of
insurance contract services, and recognises profit or loss accordingly over the current and future periods by amortising
the carrying amount of the contractual service margin as adjusted for (a) to (e) above.
(ii) Groups of reinsurance contracts measured using the premium allocation approach
The Group applies the same principles to measure the groups of insurance contracts issued and the groups of reinsurance
contracts held using the premium allocation approach.
When a group of reinsurance contracts held is measured using the premium allocation approach, for the amount recognised
and reversed by the loss-recovery component of asset for remaining coverage recovered from reinsurers, the Group adjusts
the carrying amount of asset for remaining coverage recovered from reinsurers in the group of reinsurance contracts while
recognising the amounts recovered from reinsurers.
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.8 Investment contracts with discretionary participation features
In addition to the requirements for insurance contracts set out above, the recognition and measurement for investment
contract with discretionary participation features are modified as follows:
(a) the date of initial recognition is the date the Group becomes party to the contract;
(b) the contract boundary is modified so that cash flows are within the contract boundary if they result from a substantive
obligation of the Group to deliver cash at a present or future date. The Group has no substantive obligation to deliver
cash if the Group has the practical ability to set a price for the promise to deliver the cash that fully reflects the amount
of cash promised and related risks;
(c) the allocation of the contractual service margin is modified so that the Group recognizes the contractual service margin
over the duration of the group of contracts in a systematic way that reflects the transfer of investment services under
the contract.
2.8.9 Modification and derecognition
If the terms of an insurance contract are modified, the Group derecognizes the original contract and recognizes the modified
contract as a new contract, if any of the conditions below are satisfied:
(a) if the modified terms had been included at contract inception:
• the modified contract would have been excluded from the scope of the accounting policies related to insurance contracts;
• the Group would have separated different components from the host insurance contract, resulting in a different insurance
contract to which the accounting policies related to insurance contracts would have applied;
• the modified contract would have had a substantially different contract boundary; or
• the modified contract would have been included in a different group of contracts.
(b) the original contract met the definition of an insurance contract with direct participation features, but the modified
contract no longer meets that definition, or vice versa; or
(c) the Group applied the premium allocation approach to the original contract, but the modifications mean that the contract
no longer meets the eligibility criteria for that approach.
If a contract modification meets none of the conditions above, the Group treats changes in cash flows caused by the
modification as changes in estimates of fulfilment cash flows.
The Group derecognizes an insurance contract when it is extinguished, i.e. when the obligation specified in the insurance
contract expires or is discharged or cancelled.
2.8.10 Presentation
(i) Insurance revenue
The Group recognizes the reduction in the liabilities for remaining coverage because of services provided in the period as
insurance revenue.
The amount of insurance revenue recognised in the reporting period depicts the transfer of promised services at an amount
that reflects the portion of consideration that the Group expects to be entitled to in exchange for those services.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.10 Presentation (continued)
(i) Insurance revenue (continued)
For contracts not measured using the premium allocation approach, insurance revenue includes the following:
(a) Amounts related to the changes in the liabilities for remaining coverage;
• claims and other related expenses incurred in the period measured at the amounts expected at the beginning of the
period, excluding:
a) amounts allocated to the loss component;
b) repayments of investment components;
c) amounts that relate to transaction-based taxes collected on behalf of third parties; and
d) insurance acquisition cash flows.
• the changes in the risk adjustment for non-financial risk, excluding:
a) changes included in insurance finance income or expenses;
b) changes that relate to future service that adjust the contractual service margin; and
c) amounts allocated to the loss component.
• amounts of the contractual service margin amortised; and
• other.
(b) The Group determines insurance service expenses related to insurance acquisition cash flows in a systematic way on
the basis of the passage of time. The Group recognizes the same amount as insurance revenue to reflect the portion
of the premiums that relate to recovering those cash flows.
For groups of insurance contracts measured using the premium allocation approach, the Group recognises insurance revenue
based on the passage of time over the coverage period of a group of contracts.
(ii) Insurance service expenses
The Group recognises the increase in the liabilities for incurred claims because of claims and expenses incurred in the
period and any subsequent changes in fulfilment cash flows relating to incurred claims and incurred expenses as insurance
service expenses.
Insurance service expenses include the following:
(a) claims and other related expenses incurred in the period, excluding investment components;
(b) amortisation of insurance acquisition cash flows;
(c) changes that relate to past service – changes in the fulfilment cash flow relating to the liabilities for incurred claims;
and
(d) changes that relate to future service – changes in the fulfilment cash flow that result in onerous contract losses or
reversals of those losses.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.10 Presentation (continued)
(ii) Insurance service expenses (continued)
For contracts not measured using the premium allocation approach, amortisation of insurance acquisition cash flows is
reflected in insurance service expenses in the same amount as insurance acquisition cash flows recovery reflected within
insurance revenue. For contracts measured using the premium allocation approach, amortisation of insurance acquisition
cash flows is based on the passage of time.
(iii) Allocation of reinsurance premiums paid
The Group recognises the reduction in the asset for remaining coverage because of insurance contract services received
from the reinsurer in the period as allocation of reinsurance premiums paid. The Group treats amounts from the reinsurer
that it expects to receive that are not contingent on claims of the underlying contracts as the reduction to the allocation
of reinsurance premiums paid. Allocation of reinsurance premiums paid excludes any investment components of the
reinsurance contracts held.
(iv) Amounts recovered from reinsurers
The increase in the carrying amount of the incurred claims for reinsurance contracts held incurred due to the incurred claims
and other directly attributable expenses in the current period, as well as the subsequent changes in the related fulfilment
cash flows, are recognised as the amounts recovered from reinsurers. The Group does not include the investment component
of the reinsurance contracts held when recognizing the amounts recovered from reinsurers.
(v) Financial changes in insurance contracts
Insurance finance income or expenses comprises the change in the carrying amount of the group of insurance contract
liabilities and reinsurance contract assets arising from:
(a) the effect of the time value of money and changes in the time value of money;
(b) the effect of financial risk and changes in financial risk.
The Group disaggregates the financial changes in insurance contracts into insurance finance income or expenses from
insurance contracts issued, reinsurance finance income or expenses from reinsurance contracts held and other comprehensive
income.
For the contracts not measured using the variable fee approach, the changes in carrying amount of insurance contract
liabilities arising from the financial risk changing, such as discount rate, are recognised in other comprehensive income; For
the contracts measured using the variable fee approach, insurance finance income or expenses equal to the amounts that
can eliminate accounting mismatches arising from profit or loss from underlying items, and the remainders are recognised
in other comprehensive income.
2.8.11 The effect of accounting estimates made in interim financial statements
For the treatment result of accounting estimates for insurance contracts and reinsurance contracts held made in interim
financial statements, the Group has elected to adjust it in subsequent interim periods or in the annual reporting period.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
2 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
2.8 Insurance Contracts (continued)
2.8.12 Transition date approach
As at 1 January 2022, the Group applied IFRS 17 retroactively. When it was impracticable to use the full retrospective
approach, the modified retrospective approach or the fair value approach were adopted by the Group. In accordance with
IFRS 17, the comparative financial statements of the Group have been restated.
(i) Modified retrospective approach
Contracts without direct participation features
For contracts without direct participation features, the Group determines the contractual service margin or loss component
of the liabilities for remaining coverage at the transition date as:
(a) the Group estimates the future cash flows at the date of initial recognition of a group of insurance contracts as the
amount of the future cash flows at the transition date, adjusted by the cash flows that occurred between the date of
initial recognition of a group of insurance contracts and the transition date;
(b) the risk adjustment for non-financial risk on initial recognition was determined by adjusting the amount at transition date
or earlier date (if applicable) for the expected release of risk before transition date. The expected release of risk was
determined with reference to the release of risk for similar insurance contracts that the Group issued at transition date;
(c) when the Group recognises contractual service margin at initial recognition, interest accreted on the carrying amount
of the contractual service margin during the period, measured at the discount rates determined on initial recognition.
The amount of the contractual service margin recognised in profit or loss before transition date was determined by
comparing the remaining coverage units at transition date with the coverage units provided under the group of contracts
before that date; and
(d) when the Group recognises the loss component at initial recognition, the amount allocated to the loss component before
transition date is determined on a systematic and rational basis.
Contracts with direct participation features
For contracts with direct participation features, the Group determines the contractual service margin or loss component of
the liabilities for remaining coverage at the transition date as:
(a) based on the amount that fair value of the underlying items minus the fulfilment cash flows at transition date and
appropriately adjusted the relevant cash flow and non-financial risk adjustment before transition date;
(b) if (a) result in a contractual service margin, the amount of the contractual service margin recognised in profit or loss
before transition date was determined by comparing the remaining coverage units at transition date with the coverage
units provided under the group of contracts before that date;
(c) if (a) result in a loss component, the Group adjust the loss component to nil and increase the liabilities for remaining
coverage excluding the loss component by the same amount.
(ii) Fair value approach
For the groups of contracts that are measured under the fair value approach, the Group determines the contractual service
margin or loss component of the liabilities for remaining coverage at transition date as the difference between the fair value
of a group of contracts at that date and the fulfilment cash flows at that date.
The fair value of the group of contracts is calculated using the present value method, based on reasonable and supportable
information available at the transition date.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
3 SUMMARY OF OTHER ACCOUNTING POLICIES
3.1 Segment reporting
The Group’s operating segments are presented in a manner consistent with the internal management reporting provided
to the operating decision maker – president office for deciding how to allocate resources and for assessing performance.
Operating segment refers to the segment within the Group that satisfies the following conditions: i) the segment generates
income and incurs costs from daily operating activities; ii) management evaluates the operating results of the segment to
make resource allocation decision and to evaluate the business performance; and iii) the Group can obtain relevant financial
information of the segment, including financial condition, operating results, cash flows and other financial performance
indicators.
3.2 Foreign currency translation
The Company’s functional currency is RMB. Each entity in the Group determines its own functional currency and items
included in the financial statements of each entity are measured using that functional currency. The reporting currency of
the consolidated financial statements of the Group is RMB. Transactions in foreign currencies are translated at the exchange
rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at
the exchange rates ruling at the end of the reporting period. Exchange differences arising in these cases are recognised
in net profit.
3.3 Derivative instruments
Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently
re-measured at their fair value. Except for those related to hedge accounting, the resulting gain or loss of derivative financial
instruments is recognised in net profit. All derivatives are carried as financial assets when fair value is positive and as
financial liabilities when fair value is negative.
3.4 Property, plant and equipment
Property, plant and equipment, are stated at historical costs less accumulated depreciation and any accumulated impairment
losses, except for those acquired prior to 30 June 2003, which are stated at deemed cost less accumulated depreciation
and any accumulated impairment losses.
Depreciation
The historical costs of property, plant and equipment comprise its purchase price, including import duties and non-refundable
purchase taxes, and any directly attributable costs of bringing the asset to its working condition and location for its intended
use. Expenditure incurred after terms of property, plant and equipment have been put into operation, such as repairs and
maintenance, is normally charged to the statement of comprehensive income in the period in which it is incurred. In situations
where the recognition criteria are satisfied, the expenditure for a major inspection is capitalised in the carrying amount
of the assets as a replacement. Where significant parts of property, plant and equipment are required to be replaced at
intervals, the Group recognises such parts as individual assets with specific useful lives and depreciates them accordingly.
Depreciation is computed on a straight-line basis to write down the cost of each asset to its residual value over its estimated
useful lives as follows:
Estimated useful lives
Buildings
15 to 35 years
Office equipment, furniture and fixtures
3 to 11 years
Motor vehicles
4 to 8 years
Leasehold improvements
Over the shorter of the remaining term of the lease and
the useful lives
The residual values, depreciation method and useful lives are reviewed periodically to ensure that the method and period of
depreciation are consistent with the expected pattern of economic benefits from items of property, plant and equipment.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
3 SUMMARY OF OTHER ACCOUNTING POLICIES (continued)
3.4 Property, plant and equipment (continued)
Depreciation (continued)
Assets under construction mainly represent buildings under construction, which are stated at cost less any impairment
losses and are not depreciated, except for those acquired prior to 30 June 2003, which are stated at deemed cost less any
accumulated impairment losses. Cost comprises the direct costs of construction and capitalised borrowing costs on related
borrowed funds during the period of construction. Assets under construction are reclassified to the appropriate category of
property, plant and equipment, investment properties or other assets when completed and ready for use.
Impairment and gains or losses on disposals
Property, plant and equipment are reviewed for impairment losses whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised in net profit for the amount by which
the carrying amount of the asset exceeds its recoverable amount, which is the higher of an asset’s net selling price and
value in use.
The gain or loss on disposal of an item of property, plant and equipment is the difference between the net sales proceeds
and the carrying amount of the relevant asset, and is recognised in net profit.
3.5 Leases
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset for a period of a time, the Group
assesses whether, throughout the period of use, the lessee has the right to obtain substantially all of the economic benefits
from use of the identified asset and the right to direct the use of the identified asset.
As a lessee
Initial measurement
At the commencement date of the lease, the Group recognises right-of-use assets representing the right to use the leased
assets, including buildings. The Group measures the lease liability at the present value of the lease payments that are not
paid at that date, except for short-term leases and leases of low-value assets. For short-term leases with a lease term of not
more than 12 months and low-value asset leases with a lower value when the individual asset is new, the Group chooses
not to recognise the right of use assets and lease liabilities and recognises the relevant rental expenses in profit or loss or
the cost of the relevant asset on a straight-line basis over each period of the lease term. In calculating the present value
of the lease payments, the lease payments are discounted using the interest rate implicit in the lease. If that rate cannot
be readily determined, the Group uses its own incremental borrowing rate.
The lease term is the non-cancellable period of a lease when the Group has the right to use lease assets. When the Group
has an option to extend a lease and is reasonably certain to exercise that option to extend a lease, the lease term also
comprises the periods covered by the option to extend the lease. When the Group has an option to terminate the lease
and is reasonably certain not to exercise that option, the lease term also comprises the periods covered by the option to
terminate the lease. The Group reassesses whether it is reasonably certain to exercise an extension option, to exercise a
purchase option or not to exercise a termination option, upon the occurrence of either a significant event or a significant
change in circumstances that are within the control of the Group and affects whether the Group is reasonably certain to
exercise the commensurate options.
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Notes to the Consolidated Financial Statements (continued)
3 SUMMARY OF OTHER ACCOUNTING POLICIES (continued)
3.5 Leases (continued)
As a lessee (continued)
Subsequent measurement
The Group applies the straight-line method in depreciating the right-of-use assets. If it is reasonably certain that ownership
of a leased asset transfers to the Group at the end of the lease term, the leased asset is depreciated under the remaining
useful life of the asset. If it cannot be reasonably determined that ownership of a leased asset transfers to the Group at
the end of the lease term, the Group depreciates the right-of-use asset from the commencement date to the earlier of the
end of the lease term or the end of the useful life of the right-of-use asset.
The Group uses a constant periodic rate of interest to calculate interest on the lease liability in each period during the lease
term and recognises the interest in profit or loss.
Variable lease payments not included in the measurement of the lease liability are recognised in profit or loss in the period
in which the event or condition that triggers the payment occurs.
After the commencement date of a lease, when there is a change in substance fixed payments, a change in the amounts
expected to be payable under a residual value guarantee, a change in future lease payments resulting from a change in an
index or a rate used to determine those payments, a change in the assessment or actual exercise situation of a purchase
option, an extension option or a termination option, the Group uses the changed present value of lease payments to
remeasure the lease liability and adjust the carrying amount of right-of-use asset accordingly. If the carrying amount of the
right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Group
recognises any remaining amount of the remeasurement in profit or loss.
As a lessor
At the commencement date of the lease, leases in which the Group does not transfer substantially all the risks and rewards
incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-
line basis over the lease terms and is included in revenue in the statement of profit or loss.
3.6 Investment properties
Investment properties are interests in land use rights and buildings that are held to earn rental income and/or for capital
appreciation, rather than for the supply of services or for administrative purposes.
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment
properties are stated at cost less accumulated depreciation and any impairment loss.
Depreciation is computed on the straight-line basis over the estimated useful lives. The estimated useful lives of investment
properties are 15 to 35 years.
Overseas investment properties, that are held by the Group in the form of property ownership, equity investment, or other
forms, have expected useful lives not longer than 50 years, determined based on the usage in their locations.
The useful lives and depreciation method are reviewed periodically to ensure that the method and period of depreciation
are consistent with the expected pattern of economic benefits from the individual investment properties.
An investment property is derecognised when either it has been disposed of or when the investment property is permanently
withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or
disposal of an investment property are recognised in the statement of comprehensive income in the year of retirement or
disposal. A transfer to, or from, an investment property is made when, and only when, there is evidence of a change in use.
For the year ended 31 December 2024
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3 SUMMARY OF OTHER ACCOUNTING POLICIES (continued)
3.7 Employee benefits
Pension benefits
Full-time employees of the Group are covered by various government-sponsored pension plans, under which the employees
are entitled to a monthly pension based on certain formulae. These government agencies are responsible for the pension
liability to these employees upon retirement. The Group contributes on a monthly basis to these pension plans. All
contributions made under the government-sponsored pension plans described above are fully attributable to employees
at the time of the payment and the Group is unable to forfeit any amounts contributed by it to such plans. In addition to
the government-sponsored pension plans, the Group established an employee annuity fund plan pursuant to the relevant
laws and regulations in the PRC, whereby the Group is required to contribute to the plan at fixed rates of the employees’
salary costs. Contributions made by the Group under the annuity fund plan that is forfeited in respect of those employees
who resign from their positions prior to the full vesting of the contributions will be recorded in the public account of the
annuity fund and shall not be used to offset any contributions to be made by the Group in the future. All funds in the
public account will be attributed to the employees whose accounts are in normal status after the approval procedures are
completed as required. Under these plans, the Group has no legal or constructive obligation for retirement benefit beyond
the contributions made.
Housing benefits
All full-time employees of the Group are entitled to participate in various government-sponsored housing funds. The Group
contributes on a monthly basis to these funds based on certain percentages of the salaries of the employees. The Group’s
liability in respect of these funds is limited to the contributions payable in each year.
Stock appreciation rights
Compensation under the stock appreciation rights is measured based on the fair value of the liabilities incurred and is
expensed over the vesting period. Valuation techniques including option pricing models are used to estimate fair value of
relevant liabilities. The liability is re-measured at the end of each reporting period to its fair value until settlement. Fair value
changes in the vesting period are included in administrative expenses and changes after the vesting period are included in
net fair value gains through profit or loss in net profit. The related liability is included in other liabilities.
3.8 Premiums received in advance
The advance premiums received by the Group are mainly premiums received for insurance contracts that have not yet met
the criteria for initial recognition.
3.9 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of equity instruments are shown
in equity as a deduction, from the proceeds.
3.10 Current and deferred income taxation
Income tax expense for the period comprises current and deferred tax. Income tax is recognised in net profit, except to
the extent that it relates to items recognised directly in OCI where the income tax is recognised in OCI.
Current income tax assets and liabilities for the current period are calculated on the basis of the tax laws enacted or
substantively enacted at the end of each reporting period in the jurisdictions where the Company and its subsidiaries
operate and generate taxable income. Management periodically evaluates positions taken with respect to situations in
which applicable tax regulations are subject to interpretation.
Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. Substantively enacted tax rates
are used in the determination of deferred income tax.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries, associates and joint
ventures except where the timing of the reversal of the temporary difference can be controlled and it is probable that the
temporary difference will not be reversed in the foreseeable future.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
3 SUMMARY OF OTHER ACCOUNTING POLICIES (continued)
3.10 Current and deferred income taxation (continued)
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to
be utilised. Conversely, previously unrecognised deferred tax assets are reassessed by the end of each reporting period
and are recognised to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilised.
Deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the end of the reporting period.
Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legally enforceable right to set off
current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income tax
levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to
settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in
each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
3.11 Provisions and contingencies
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is
probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated.
Provisions are not recognised for future operating losses.
A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. It
can also be a present obligation arising from past events that is not recognised because it is not probable that outflow of
economic resources will be required, or the amount of obligation cannot be measured reliably.
A contingent liability is not recognised in the consolidated statement of financial position but is disclosed in the notes to the
consolidated financial statements. When a change in the probability of an outflow occurs so that such outflow is probable
and can be reliably measured, it will then be recognised as a provision.
3.12 Dividend distribution
Dividend distribution to the Company’s equity holders is recognised as a liability in the Group’s consolidated financial
statements in the year in which the dividends are approved by the equity holders of the Company.
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The Group makes estimates and assumptions that affect the reported amounts of income, expenses, assets and liabilities.
Estimates and judgements are continually evaluated and based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. The Group exercises significant
judgement in making appropriate assumptions. It is possible that actual results may be different from the estimates and
judgements referred to below. The actual result may have significant differences in accordance with changes in accounting
estimates and professional judgement.
4.1 Insurance contracts
4.1.1 Portfolios of contracts
The Group identifies portfolios of insurance contracts as contracts subject to similar risks and are managed together. The
Group makes judgments about whether it has similar risk factors and management methods.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
4.1 Insurance contracts (continued)
4.1.2 Investment components
The Group has established rules to unbundle non-distinct investment components. Generally, for relevant contracts, the
Group determines the non-distinct investment components based on cash surrender values and similar contractual terms.
4.1.3 Determination of coverage unit
The Group’s unit of coverage is determined by considering the benefits provided by each contract and its expected duration
of insurance coverage. For policies that include investment return services or investment-related services, the amount
corresponding to the investment return service or investment-related service is the investment component or one of the
amounts that the policyholder is entitled to recover.
4.1.4 Estimates of future benefit payments and premiums arising from insurance contracts not using
the premium allocation approach
Fulfilment cash flows are determined on the basis of the Group’s estimates of future benefits, premiums and related
expenses, taking into account the risk adjustment for non-financial risk. The discount rate, mortality rate, morbidity rate,
lapse rate, expense assumption and policy dividend assumption used for the estimation of future cash flows are determined
according to the latest empirical analysis, current conditions and forecasts of the future.
The judgments and estimates used in the valuation process will affect the amount recognised in the consolidated financial
statements for insurance contracts and reinsurance contracts held.
The description of the above assumptions is detailed in Note 14.1.
4.2 Financial instruments
The critical estimates and judgements are those associated with investment classification, the recognition of impairment
and the measurement of fair value.
4.2.1 Classification of financial assets
Significant judgements made by the Group in the classification of financial assets include business model and analysis on
contractual cash flow characteristics.
The Group’s assessment of the business model is performed on a financial asset portfolio basis, and determined on the basis
of scenarios which are reasonably expected to occur, taking into account: how cash flows were realised in the past, how the
performance are evaluated and reported to the entity’s key management personnel; the risks that affect the performance
and the way in which those risks are assessed and managed; and how managers of the business are compensated, etc.
When assessing whether contractual cash flow characteristics of financial assets are consistent with basic lending
arrangement, key judgements made by the Group include: the possibility of changes in timing or amount of the principal
during the duration due to reasons such as early repayment; whether interest only includes considerations for time value
of money, credit risks, other basic lending risks, costs and profits. For example, whether the prepayment amount only
reflects the principal outstanding and the interest on the principal outstanding, as well as the reasonable compensation for
the early termination of the contract.
4.2.2 Measurement of ECL
The Group calculates ECL through default risk exposure and ECL rate, and determines the ECL rate based on default
probability and default loss rate. In determining the ECL rate, the Group uses data such as internal historical credit loss
experience, and adjusts historical data based on current conditions and forward-looking information.
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Notes to the Consolidated Financial Statements (continued)
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
4.2 Financial instruments (continued)
4.2.3 Fair value of financial instruments
Fair value, in the absence of an active market, is estimated by using valuation techniques, applying currently applicable and
sufficiently available data, and the valuation techniques supported by other information, mainly include market approach
and income approach, reference to the recent arm’s length transactions, current market value of another instrument which
is substantially the same, and by using the discounted cash flow analysis and option pricing models.
When using valuation techniques to determine the fair value of financial instruments, the Group would choose the input value
in consistent with market participants, considering the transactions of related assets and liabilities. All related observable
market parameters are considered in priority, including interest rate, foreign exchange rate, commodity prices and share
prices or index. When related observable parameters are unavailable or inaccessible, the Group uses unobservable parameters
and makes estimates for credit risk, market volatility and liquidity adjustments.
For the description of valuation techniques, please refer to Note 5.4. Using different valuation techniques and parameter
assumptions may lead to significant differences of fair value estimations.
4.3 Impairment of investments in subsidiaries, associates and joint ventures
The Group assesses whether there are any indicators of impairment for investments in subsidiaries, associates and joint
ventures at the end of each reporting period. Investments in subsidiaries, associates and joint ventures are tested for
impairment when there are indicators that the carrying amounts may not be recoverable. An impairment exists when the
carrying value of investments in subsidiaries, associates and joint ventures exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in use. The calculation of the fair value less costs of disposal is
based on available data from binding sales transactions in an arm’s length transaction of similar assets or observable market
prices less incremental costs for disposing of investments in subsidiaries, associates and joint ventures. When value in use
calculations are undertaken, the Group must estimate the expected future cash flows from investments in subsidiaries,
associates and joint ventures and choose a suitable discount rate in order to calculate the present value of those cash flows.
4.4 Income tax measurement and recognition of deferred tax assets
The Group is subject to income tax in numerous jurisdictions. During the normal course of business, certain transactions
and activities for which the ultimate tax determination is uncertain, the Group needs to exercise significant judgement when
determining the income tax. If the final settlement results of the tax matters are different from the amounts recorded,
these differences will impact the final income tax expense and deferred tax for the period.
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be
available against which the loss and timing difference can be utilised. The Group recognizes the amount of deferred tax
assets based on a reasonable expectation of future taxable profits.
4.5 Determination of control over investee
The Group applies its judgement to determine whether the control indicators set out in Note 2.2 indicate that the Group
controls structured entities such as funds and asset management products.
The Group issues certain structured entities (e.g. funds and asset management products), and acts as a manager for such
entities according to the contracts. Meanwhile, the Group may be exposed to variability of returns as a result of holding
shares of the structured entities. In addition, the Group may also hold structured entities initiated and managed by other asset
management institutions (such as trust schemes). Determining whether the Group controls such structured entities usually
focuses on the assessment of the aggregate economic interests of the Group in the entities (including any carried interests
and expected management fees) and the decision-making rights on the entity. As at 31 December 2024, the Group has
consolidated some funds issued and managed by the Company’s subsidiary, China Life AMP Asset Management Company
(“CL AMP”), some debt investment schemes and asset management products issued and managed by the Company’s
subsidiary, China Life Asset Management Company Limited (“AMC”) and some trust schemes, Equity Investment Plan
and debt investment schemes issued and managed by third parties in the consolidated financial statements. Please refer
to Note 31(b) for the details.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT
Risk management is carried out by the Company’s Risk Management Committee under policies approved by the Company’s
Board of Directors.
The Group issues contracts that transfer insurance risk or financial risk or both. This section summarises these risks and
the way the Group manages them.
5.1 Insurance risk
5.1.1 Types of insurance risks
The risk under any one insurance contract is the possibility that an insured event occurs and the uncertainty about the
time and amount of the resulting claim. By the very nature of an insurance contract, this risk is random and therefore
unpredictable. For a portfolio of insurance contracts where the theory of probability is applied to the pricing and provisioning
for the insurance contract liabilities, the main risk to the Group is that actual claims are paid in excess of the carrying
value of the insurance contract liabilities. This occurs when the frequency or severity of claims and benefits exceeds the
estimates. Insurance events are random, and the actual number of claims and the amount of benefits paid will vary each
year from estimates established using statistical techniques.
The business of the Group mainly comprises long-term individual and group life insurance, annuity insurance, accident
insurance and health insurance, as well as short-term individual and group accident and health insurance. For the Group’s
insurance business, factors such as epidemics, natural disasters, accidents, profound lifestyle changes, constant improvements
in medical and social conditions may affect frequency, timing, and amounts of claims. Insurance risk is also affected by
policyholders’ rights to terminate contracts, reduce premiums, refuse to pay premiums or exercise annuity conversion rights.
Thus, insurance risk is also subject to policyholders’ behaviours and decisions.
Experience shows that the greater the number of similar policies underwritten, the more the risks are diversified, the smaller
the relative variability of the expected outcome will be. The Group has developed its insurance underwriting strategy to
diversify the types of insurance risks accepted and within each of these categories to achieve a sufficiently large population
to reduce the variability of the expected outcome.
The Group manages insurance risks through effective reinsurance agreements, ceding on a quota share basis, a surplus
basis, and a catastrophe excess of loss reinsurance to cover insurance liability risk. Reinsurance contracts cover almost
all products, which contain risk liabilities. The products reinsured include: life insurance, accident and health insurance or
death, disability, accident and illness in terms of product category or function, respectively. These reinsurance agreements
spread insured risk to a certain extent and reduce the effect of potential losses to the Group. However, the Group’s direct
insurance liabilities to the policyholder are not eliminated under the reinsurance arrangements. The Group collaborates with
multiple reinsurance companies to mitigate reliance on any single reinsurer.
5.1.2 Concentration of insurance risks
Currently, the Group’s insurance operation is mainly located in the PRC. There are no significant differences among the
regions where the Group underwrites insurance contracts.
For the year ended 31 December 2024
147
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.1 Insurance risk (continued)
5.1.3 Sensitivity analysis
Sensitivity analysis of contracts not measured using the premium allocation approach
Significant assumptions involved in calculation of insurance contract liabilities include mortality, morbidity, lapse rate and
discount rate, etc.
If holding all other variables constant, the Group considers the expected effect of changes in assumptions on mortality,
morbidity and lapse rate on consolidated profit before income tax and consolidated other comprehensive income before
income tax for the year, and considers the effect of risk mitigation on insurance contracts and reinsurance contracts held,
as follows. For effect of changes in assumption on discount rate, please refer to Note 5.2.1(i).
For the year ended 31 December
2024
2023
Assumptions
Changes in
assumptions
Effect on profit before
income tax
Effect on other comprehensive
income before income tax
Effect on profit before
income tax
Effect on other comprehensive
income before income tax
Before
reinsurance
After
reinsurance
Before
reinsurance
After
reinsurance
Before
reinsurance
After
reinsurance
Before
reinsurance
After
reinsurance
RMB million
RMB million
Mortality/Morbidity rate
Increase by 10%
(6,458)
(4,560)
(9,008)
(5,975)
(5,407)
(3,556)
(4,928)
(3,184)
Mortality/Morbidity rate
Decrease by 10%
6,523
4,579
9,777
6,589
5,540
3,651
5,299
3,471
Lapse rate
Increase by 10%
2,307
2,031
11,224
10,860
2,499
2,229
5,505
5,294
Lapse rate
Decrease by 10%
(1,644)
(1,355)
(11,338)
(10,956)
(2,606)
(2,322)
(5,562)
(5,340)
Sensitivity analysis of contracts measured using the premium allocation approach
Changes in factors such as the amount of contractual claims measured using the premium allocation approach have the
potential to affect changes in the assumed level of the reserve for outstanding claims, which in turn affects the simultaneous
changes in the reserve for outstanding claims.
if holding all other variables constant, the Group considers the following expected effect of changes in claim ratios assumption
on consolidated profit before income tax for the year.
Without considering the ceded business, holding all other variables constant, if claim ratios are 100 basis points higher or
lower than the current assumption, the consolidated pre-tax profit is expected to be RMB253 million (as at 31 December
2023: RMB249 million) lower or higher, respectively; With consideration of ceded business, holding all other variables
constant, if claim ratios are 100 basis points higher or lower than the current assumption, the consolidated pre-tax profit is
expected to be RMB242 million (as at 31 December 2023: RMB238 million) lower or higher, respectively.
For the year ended 31 December 2024
148
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.1 Insurance risk (continued)
5.1.3 Sensitivity analysis (continued)
Sensitivity analysis of contracts not measured using the premium allocation approach (continued)
The following table indicates the claim development for contracts measured using the premium allocation approach without
taking into account the impacts of ceded business:
Contracts measured using the premium allocation approach (accident year)
2020
2021
2022
2023
2024
Total
RMB million
Estimated accumulated undiscounted
claims expenses (before
reinsurance)
Year end
53,369
57,727
55,256
62,411
68,200
1 year later
53,202
57,642
54,879
61,693
2 years later
52,769
56,890
55,294
3 years later
52,043
57,072
4 years later
52,105
Accumulated claims expenses paid
(52,020)
(56,908)
(54,899)
(59,710)
(46,478)
(270,015)
Total liabilities – Accident years from
2020 to 2024
85
164
395
1,983
21,722
24,349
Total liabilities – Accident years
before 2020
44
Effect of indirect claims expenses,
risk adjustment for non-financial
risk and discounting, etc.
5,107
Total liabilities for incurred claims
29,500
The following table indicates the claim development for contracts measured using the premium allocation approach with
taking into account the impacts of ceded business:
Contracts measured using the premium allocation approach (accident year)
2020
2021
2022
2023
2024
Total
RMB million
Estimated accumulated undiscounted
claims expenses (after reinsurance)
Year end
52,774
56,651
53,416
60,896
66,629
1 year later
52,405
56,125
52,694
59,873
2 years later
51,938
55,395
53,535
3 years later
51,234
55,574
4 years later
51,296
Accumulated claims expenses paid
(51,212)
(55,425)
(53,164)
(58,333)
(45,471)
(263,605)
Total liabilities – Accident years from
2020 to 2024
84
149
371
1,540
21,158
23,302
Total liabilities – Accident years
before 2020
44
Effect of indirect claims expenses,
risk adjustment for non-financial
risk and discounting, etc.
3,132
Total liabilities for incurred claims
26,478
For the year ended 31 December 2024
149
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.2 Financial risk
The Group’s activities are exposed to a variety of financial risks. The key financial risk is that proceeds from the sale of
financial assets will not be sufficient to fund the obligations arising from the Group’s insurance and investment contracts.
The most important components of financial risk are market risk, credit risk and liquidity risk.
The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the financial performance of the Group. Risk management is carried out by a designated
department under policies approved by management. The responsible department identifies, evaluates and manages
financial risks in close cooperation with the Group’s operating units. The Group provides written principles for overall risk
management, as well as written policies covering specific areas, such as managing market risk, credit risk, and liquidity risk.
The Group manages financial risk by holding an appropriately diversified investment portfolio as permitted by laws and
regulations designed to reduce the risk of concentration in any one specific industry or issuer. The structure of the investment
portfolio held by the Group is disclosed in Note 11.
The sensitivity analyses below are based on a change in an assumption while holding all other assumptions constant. In
practice this is unlikely to occur, and changes in some of the assumptions may be correlated, such as change in interest
rate and change in market price.
5.2.1 Market risk
(i) Interest rate risk
Interest rate risk refers to the risk that the value of financial instruments and the measurement results of insurance
contracts will fluctuate due to changes in market interest rates. The Group’s financial assets are principally comprised of
debt instruments which are exposed to interest rate risk. Changes in the level of interest rates could have a significant
impact on the Group’s investment return, as well as an impact on the measurement of the Group’s insurance contracts
and reinsurance contracts held.
The Group manages interest rate risk through adjustments to portfolio structure and duration, and, to the extent possible,
by matching the duration of its assets and liabilities.
The sensitivity analysis for interest rate risk illustrates how changes in interest income, the fair value of future cash flows of
a financial instrument, insurance contract liabilities and other items will fluctuate because of changes in market interest rates.
As at 31 December 2024, if market interest rates were 50 basis points higher or lower with all other variables held constant,
profit before income tax for the year would have been RMB23,873 million or RMB56,871 million (as at 31 December 2023:
RMB6,026 million or RMB14,179 million) higher or lower, respectively, mainly as a result of higher or lower interest income
on floating rate instruments, the fair value gains or losses on fixed and floating rate instruments and the change of insurance
contract liabilities. Other comprehensive income before income tax would have been RMB331 million or RMB12,537 million
(as at 31 December 2023: RMB9,899 million or RMB20,803 million) higher or lower, respectively, mainly due to the fair
value gains or losses on investments in debt instruments at fair value through other comprehensive income, and the change
of insurance contract liabilities.
(ii) Price risk
Price risk arises mainly from the volatility of market prices of the financial instruments held by the Group. The Group is
subject to increased price risk mainly because of the volatility of capital markets. The Group’s insurance contracts using
the variable fee approach are exposed to price risk.
The Group manages price risk by holding an appropriately diversified investment portfolio as permitted by laws and regulations
designed to reduce the risk of price concentration in any one specific industry or issuer.
For the year ended 31 December 2024
150
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.2 Financial risk (continued)
5.2.1 Market risk (continued)
(ii) Price risk (continued)
As at 31 December 2024, if the prices of all the Group’s equity investments had increased or decreased by 10% with all
other variables held constant, profit before income tax for the year would have been RMB79,887 million or RMB80,200
million (as at 31 December 2023: RMB68,496 million or RMB68,842 million) higher or lower, respectively, mainly due to fair
value gains or losses on listed equities and securities investment funds at fair value through profit or loss and the change
of insurance contract liabilities. Other comprehensive income before income tax would have been RMB3,998 million or
RMB3,936 million higher or lower (as at 31 December 2023: decrease by RMB1,775 million or increase by RMB1,795 million),
respectively, mainly as a result of fair value gains or losses on investment in equity instruments at fair value through other
comprehensive income, and the change of insurance contract liabilities.
(iii) Currency risk
Currency risk is the volatility of fair value or future cash flows of financial instruments resulted from changes in foreign
currency exchange rates. The Group’s currency risk exposure mainly arises from cash and cash equivalents, term deposits,
Financial assets at fair value through profit or loss, Investment in equity instruments at fair value through other comprehensive
income, Investment in debt instruments at fair value through other comprehensive income, Investment in debt instruments
at amortised cost, interest-bearing loans and other borrowings denominated in currencies other than the functional currency,
such as US dollar, HK dollar, GB pound and EUR.
The following table summarises primary financial assets and financial liabilities denominated in currencies other than RMB
as at 31 December 2024 (as at 31 December 2023: same), expressed in RMB equivalent:
As at 31 December 2024
US dollar
HK dollar GB pound
EUR
Others
Total
RMB million
Financial assets
Financial assets at fair value through
profit or loss
32,731
38,187
811
2,275
1,486
75,490
Investment in equity instruments at
fair value through other
comprehensive income
–
36,338
–
–
–
36,338
Investment in debt instruments at
fair value through other
comprehensive income
237
–
–
–
–
237
Investment in debt instruments at
amortised cost
157
–
–
–
–
157
Term deposits
3,223
–
–
–
–
3,223
Cash and cash equivalents
1,413
148
43
163
10
1,777
Total
37,761
74,673
854
2,438
1,496
117,222
Financial liabilities
Interest-bearing loans and other borrowings
6,960
–
2,576
3,222
–
12,758
Total
6,960
–
2,576
3,222
–
12,758
For the year ended 31 December 2024
151
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.2 Financial risk (continued)
5.2.1 Market risk (continued)
(iii) Currency risk (continued)
As at 31 December 2023
US dollar
HK dollar
GB pound
EUR
Others
Total
RMB million
Financial assets
Financial assets at fair value through
profit or loss
27,323
40,871
562
1,440
1,079
71,275
Investment in equity instruments at
fair value through other
comprehensive income
–
8,886
–
–
–
8,886
Investment in debt instruments at
fair value through other
comprehensive income
237
–
–
–
–
237
Investment in debt instruments at
amortised cost
189
–
–
–
–
189
Term deposits
2,850
–
–
–
–
2,850
Cash and cash equivalents
2,575
99
52
102
2
2,830
Total
33,174
49,856
614
1,542
1,081
86,267
Financial liabilities
Interest-bearing loans and other borrowings
6,984
–
2,495
3,378
–
12,857
Total
6,984
–
2,495
3,378
–
12,857
As at 31 December 2024, if RMB had strengthened or weakened by 10% against US dollar, HK dollar, GB pound, EUR
and other foreign currencies, with all other variables held constant, profit before income tax for the year would have been
RMB6,813 million (as at 31 December 2023: RMB7,738 million) lower or higher, respectively, mainly as a result of foreign
exchange losses or gains on translation of US dollar, HK dollar, GB pound, EUR and other foreign currencies denominated
financial assets and financial liabilities other than equity instruments at fair value through other comprehensive income
included in the table above. Other comprehensive income before tax recognised in equity instruments at fair value through
other comprehensive income would have been RMB3,634 million (as at 31 December 2023: RMB889 million) lower or
higher due to the foreign exchange. The actual exchange losses in 2024 were RMB25 million (2023: exchange losses in
RMB380 million).
5.2.2 Credit risk
Credit risk is the risk that one party of a financial transaction or the issuer of a financial instrument will fail to discharge its
obligation and cause another party to incur a financial loss. Because the Group’s investment portfolio is restricted to the
types of investments as permitted by the National Financial Regulatory Administration (“NFRA”) and a significant portion
of the portfolio is in government bonds, government agency bonds, corporate bonds with higher credit rating and term
deposits with the state-owned commercial banks, the Group’s overall exposure to credit risk is relatively low.
Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. The Group manages credit
risk through in-house research and analysis of the Chinese economy and the underlying obligors and transaction structures.
Where appropriate, the Group obtains collateral in the form of rights to cash, securities, property and equipment to lower
the credit risk.
For the year ended 31 December 2024
152
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.2 Financial risk (continued)
5.2.2 Credit risk (continued)
Credit risk exposure
The carrying amount of financial assets included on the consolidated statement of financial position represents the maximum
credit risk exposure at the reporting date without taking account of any collateral held or other credit enhancements attached.
The Group had no credit risk exposure relating to off-statement financial position items as at 31 December 2024 and 31
December 2023.
Collateral and other credit enhancements
Financial assets purchased under agreements to resell are pledged by counterparties’ debt securities or term deposits of
which the Group could take the ownership if the owner of the collateral defaults. These structured entities that the Group
has interest in are guaranteed by third parties with higher credit ratings, or by pledging, or by having the fiscal budget
income as the source of repayment, or by borrowers with higher credit ratings.
Measurement of ECL
The Group formulates the credit losses of financial assets at amortized cost, investments in debt financial instruments
at fair value through other comprehensive income, using expected credit loss models according to IFRS 9 requirements.
Parameters for measuring expected credit losses
The parameters and assumptions involved in ECL model are described below:
The Group considers the credit risk characteristics of different financial instruments when determining if there is significant
increase in credit risk. For financial instruments with or without significant increase in credit risk, 12-month or lifetime
expected credit losses are provided respectively. The expected credit loss is the result of discounting the product of EAD,
PD and LGD.
Exposure at Default (EAD): EAD is based on the amounts the Group expects to be owed at the time of default, over the
next 12 months or over the remaining lifetime.
Probability of Default (PD): The PD represents the likelihood of a borrower defaulting on its financial obligation, either over
the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.
Loss Given Default (LGD): LGD represents the Group’s expectation of the extent of loss on a defaulted exposure. LGD
varies by type of counterparty, type and seniority of claim and availability of collateral or other credit support.
Criteria for judging significant changes in credit risk
When considering the impairment stages for financial assets, the Group evaluates the credit risk at initial recognition and
whether there is any significant increase in credit risk for each reporting period. The Group considers various reasonable
supporting information to judge if there is significant increase in credit risk, including the forward-looking information.
The Group sets quantitative and qualitative criteria to judge whether the credit risk has significant increase in credit risk after
initial recognition. The judgement criteria mainly include the PD changes of the debtors, changes of credit risk categories
and other indicators of significant increase in credit risk, etc. In the judgement of whether the financial instruments have
significant increase in credit risk after initial recognition, the Group considers the 30 days past due as one of criteria of
significant increase in credit risk, in accordance with the standard.
For the year ended 31 December 2024
153
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.2 Financial risk (continued)
5.2.2 Credit risk (continued)
Measurement of ECL (continued)
Definition of financial assets that are credit-impaired
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash
flows of that financial asset have occurred. On each reporting date, the Group mainly considers but is not limited to the
following factors when assessing whether the debtor has incurred credit impairment:
• Significant financial difficulty of the issuer or counterparty; or
• A breach of contract, such as a default or past due event; or
• The lender gives the borrower concessions for economic or contractual reasons due to the debtor financial difficulties,
where such concessions are normally reluctant to be made by the borrower; or
• It becoming probable that the borrower will enter bankruptcy or financial re-organisation; or
• Disappearance of an active market for that financial asset because of financial difficulties; or
• Purchase or originate a financial asset at a significant discount that reflects the fact that a credit loss has occurred.
The credit impairment of financial assets may be caused by the joint effects of multiple events, and may not be caused
by separately identifiable events.
Forward-looking information and management overlay
The determinations of 12 months and the lifetime ECL also incorporates forward-looking information. The Group has
performed historical data analysis and identified the key macroeconomic variables associated with credit risk and expected
credit losses for each portfolio, including gross domestic product, the amount of exports and the amount of fixed asset
investment completed, etc. The Group has developed macroeconomic forward looking adjustment model by establishing
a pool of macro-economic indicators, preparing data, filtering model factors, etc.
During the reporting period, the Group adjusted the predicted values of forward-looking economic indicators by synthesis of
available data and considered the possibility of each scenario to determine the final macroeconomic scenarios and weights
for measuring the relevant expected credit loss. The impact of these economic indicators on PD and LGD varies to different
businesses. The Group comprehensively considers internal and external data, statistical analysis to determine the relationship
between these economic indicators with PD and LGD. The Group evaluates and forecasts these economic indicators at least
annually, provides the best estimates for the future, and regularly evaluates the results. Similar to other economic forecasts,
the estimates of economic indicators have high inherent uncertainties, actual results may have significant difference with
estimates. The Group considered the estimates above represented the optimal estimation of possible outcomes.
In the year 2024, the Group updated the forward-looking parameters used in the measurement of ECL in response to changes
in the macroeconomic environment. The cumulative year-on-year growth rate of GDP is expected to range between 3.9% to
5.0% under the base, optimistic, and adverse scenarios for 2025. Within the scenario weighting framework, equal weights
are assigned to the optimistic and adverse scenarios, while the base scenario is allocated a moderately higher weighting.
For the year ended 31 December 2024
154
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.2 Financial risk (continued)
5.2.2 Credit risk (continued)
Measurement of ECL (continued)
Forward-looking information and management overlay (continued)
The following table presents the credit risk exposures of financial instruments under the scope of expected credit loss.
As at 31 December 2024
Carrying amount
Stage 1
Stage 2
Stage 3
Maximum
credit risk
exposure
RMB million
Cash and cash equivalents
85,505
–
–
85,505
Financial assets purchased under agreements to
resell
30,560
–
–
30,560
Term deposits
438,455
–
–
438,455
Statutory deposits – restricted
6,591
–
–
6,591
Investment in debt instruments at amortised
cost
196,505
249
–
196,754
Investment in debt instruments at fair value
through other comprehensive income
3,457,022
1,873
–
3,458,895
Other assets
14,568
–
51
14,619
Total
4,229,206
2,122
51
4,231,379
The Group internally grades the financial instruments based on the credit quality and risk characteristics. The credit rating of
the financial instruments could further be classified into the different levels according to the internal rating scale. As at 31
December 2024, the debt investments held by the Group have sufficient evidence to show that the asset is not expected
to default, or there is no reason to suspect that the asset had incurred default. The related credit risk has not caused a
material impact on the Group’s consolidated financial statements as at 31 December 2024.
The following tables present the changes in the gross carrying amount and impairment provision of the main financial assets.
Stages transfers for the year ended 31 December 2024
Gross carrying amount
Stage of
impairment
1 January
Net increase/
(decrease)
(Note)
Transfer into/
(out) Stage 1
and Stage 2
Transfer into/
(out) Stage 1
and Stage 3
Transfer into/
(out) Stage 2
and Stage 3
Write-offs
31 December
RMB million
Investment in debt instruments
at amortised cost
Stage 1
211,699
(14,459)
(250)
–
–
–
196,990
Stage 2
–
–
250
–
–
–
250
Stage 3
–
–
–
–
–
–
–
Subtotal
211,699
(14,459)
–
–
–
–
197,240
Investment in debt instruments
at fair value through other
comprehensive income
Stage 1
2,735,577
714,649
6,796
–
–
–
3,457,022
Stage 2
8,592
77
(6,796)
–
–
–
1,873
Stage 3
–
–
–
–
–
–
–
Subtotal
2,744,169
714,726
–
–
–
–
3,458,895
Total
2,955,868
700,267
–
–
–
–
3,656,135
Note:
Changes in current year due to purchase, purchased credit-impaired or derecognition except write-offs.
For the year ended 31 December 2024
155
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.2 Financial risk (continued)
5.2.2 Credit risk (continued)
Measurement of ECL (continued)
The following tables present the changes in the gross carrying amount and impairment provision of the main financial
assets (continued).
Impairment provision
Stage of
impairment
Stages transfers for the year ended 31 December 2024
1 January
Net increase/
(decrease)
(Note)
Transfer into/
(out) Stage 1
and Stage 2
Transfer into/
(out) Stage 1
and Stage 3
Transfer into/
(out) Stage 2
and Stage 3
Write-offs
31 December
RMB million
Investment in debt instruments
at amortised cost
Stage 1
350
136
(1)
–
–
–
485
Stage 2
–
–
1
–
–
–
1
Stage 3
–
–
–
–
–
–
–
Subtotal
350
136
–
–
–
–
486
Investment in debt instruments
at fair value through other
comprehensive income
Stage 1
750
(282)
364
–
–
–
832
Stage 2
446
14
(364)
–
–
–
96
Stage 3
236
(236)
–
–
–
–
–
Subtotal
1,432
(504)
–
–
–
–
928
Total
1,782
(368)
–
–
–
–
1,414
Note:
Changes in current year due to purchase, purchased credit-impaired or derecognition except write-offs.
Credit quality
The Group’s financial assets facing credit risk mainly include government bonds, government agency bonds, corporate
bonds and subordinated bonds, etc. As at 31 December 2024, 99.1% (as at 31 December 2023: 99.9%) of the corporate
bonds held by the Group or the issuers of these corporate bonds had credit ratings of AA/A-2 or above. As at 31 December
2024, 100.0% (as at 31 December 2023: 100%) of the subordinated bonds held by the Group either had credit ratings of
AA/A-2 or above, or were issued by national commercial banks. The bonds issuers’ credit ratings are assigned by a qualified
appraisal institution in the PRC and updated at each reporting date.
As at 31 December 2024, 97.8% (as at 31 December 2023: 96.5%) of the Group’s bank deposits are with the four largest
state-owned commercial banks, other national commercial banks and China Securities Depository and Clearing Corporation
Limited (“CSDCC”) in the PRC. The main reinsurance contracts were entered into with state-owned reinsurance companies.
The Group believes these commercial banks, CSDCC and reinsurance companies have a high credit quality. As a result,
the Group concludes that the credit risk associated with term deposits, statutory deposits, cash and cash equivalents and
reinsurance contracts held has not caused a material impact on the Group’s consolidated financial statements as at 31
December 2024 (as at 31 December 2023: same).
For the year ended 31 December 2024
156
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.2 Financial risk (continued)
5.2.3 Liquidity risk
Liquidity risk is the risk that the Group is unable to obtain funds at a reasonable funding cost when required to meet a
repayment obligation and fund its asset portfolio within a certain time.
In the normal course of business, the Group attempts to match the maturity of financial assets to the maturity of insurance
and financial liabilities to reduce liquidity risk.
The following table shows the undiscounted cash flows of financial assets and financial liabilities, insurance assets and
insurance liabilities for contracts not using the premium allocation approach:
Contractual and expected cash flows (undiscounted)
As at 31 December 2024
Without
maturity
Not later
than 1 year
Later than
1 year but
not later
than 3 years
Later than
3 years but
not later
than 5 years
Later than
5 years
RMB million
Financial and insurance assets
Financial assets at fair value through
profit or loss
954,938
182,734
258,146
161,557
563,771
Investment in debt instruments at
amortised cost
–
45,123
98,270
60,139
51,323
Investment in debt instruments at
fair value through other
comprehensive income
–
276,528
480,528
297,260
3,714,798
Investment in equity instruments at
fair value through other
comprehensive income
171,817
–
–
–
–
Term deposits
–
98,921
220,790
158,031
6,513
Statutory deposits – restricted
–
483
2,566
4,202
–
Reinsurance contract assets
–
6,619
2,706
2,759
36,490
Financial assets purchased under
agreements to resell
–
30,560
–
–
–
Cash and cash equivalents
–
85,538
–
–
–
Sub-total
1,126,755
726,506
1,063,006
683,948
4,372,895
Financial and insurance liabilities
Insurance contract liabilities
–
333,654
(116,952)
(400,199)
(8,740,310)
Reinsurance contract liabilities
–
(33)
(53)
(49)
(304)
Financial assets sold under
agreements to repurchase
–
(151,564)
–
–
–
Financial liabilities at fair value
through profit or loss
(53,521)
–
–
–
–
Interest-bearing loans and
other borrowings
–
(10,054)
(3,348)
–
–
Bonds payable
–
(753)
(1,505)
(36,307)
–
Lease liabilities
–
(767)
(679)
(180)
(14)
Sub-total
(53,521)
170,483
(122,537)
(436,735)
(8,740,628)
Net cash inflow/(outflow)
1,073,234
896,989
940,469
247,213
(4,367,733)
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.2 Financial risk (continued)
5.2.3 Liquidity risk (continued)
Contractual and expected cash flows (undiscounted)
As at 31 December 2023
Without
maturity
Not later
than 1 year
Later than
1 year but
not later
than 3 years
Later than
3 years but
not later
than 5 years
Later than
5 years
RMB million
Financial and insurance assets
Financial assets at fair value through
profit or loss
961,659
91,120
197,992
73,100
480,709
Investment in debt instruments at
amortised cost
–
53,387
60,508
60,929
72,291
Investment in debt instruments at
fair value through other
comprehensive income
–
278,043
406,201
365,054
3,558,001
Investment in equity instruments at
fair value through other
comprehensive income
137,942
8
18
19
33
Term deposits
–
188,436
144,278
120,329
–
Statutory deposits – restricted
–
706
1,128
5,461
–
Reinsurance contract assets
–
5,590
2,799
3,011
33,282
Financial assets purchased under
agreements to resell
–
19,800
–
–
–
Cash and cash equivalents
–
149,305
–
–
–
Sub-total
1,099,601
786,395
812,924
627,903
4,144,316
Financial and insurance liabilities
Insurance contract liabilities
–
355,437
14,374
(317,979)
(8,454,552)
Reinsurance contract liabilities
–
(24)
(7)
(6)
(54)
Financial assets sold under
agreements to repurchase
–
(217,237)
–
–
–
Financial liabilities at fair value
through profit or loss
(13,878)
–
–
–
–
Interest-bearing loans and
other borrowings
–
(13,259)
–
–
–
Bonds payable
–
(36,498)
–
–
–
Lease liabilities
–
(757)
(580)
(89)
(22)
Sub-total
(13,878)
87,662
13,787
(318,074)
(8,454,628)
Net cash inflow/(outflow)
1,085,723
874,057
826,711
309,829
(4,310,312)
The cash flows from various insurance contracts presented in the table above are the expected future net cash flows from
existing insurance policies, which consist primarily of cash flows from premiums, claims, expense payments and policy
loans, and do not take into account future net cash flows from new business. The estimate is subject to assumptions
including mortality, morbidity, the lapse rate, and expense assumption, etc. Actual experience may differ from estimates.
As at 31 December 2024, the carrying amount of the Group’s insurance contract liabilities was RMB5,825,026 million (as
at 31 December 2023: RMB4,859,175 million), while the amount that the policyholder can demand reimbursement at any
time was RMB4,198,058 million (as at 31 December 2023: RMB3,795,388 million).
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.2 Financial risk (continued)
5.2.4 Capital management
The Group’s objectives for managing capital are to comply with the insurance capital requirements based on the minimum
capital and actual capital required by the NFRA, prevent risk in operation and safeguard the Group’s ability to continue as a
going concern so that it can continue to provide returns for equity holders and benefits for other stakeholders.
The Group manages capital to ensure its continuous and full compliance with the regulations mainly through monitoring its
quarterly solvency ratios, as well as the solvency ratio based on annual stress testing.
The former China Banking and Insurance Regulatory Commission issued the “Solvency Regulatory Rules II for Insurance
Companies” at the end of 2021. The NFRA issued the “Circular of NFRA on Optimization of Solvency Supervision Standards
for Insurance Companies” in September 2023. The Company has calculated the core and comprehensive solvency ratio, core
capital, actual capital and minimum capital as of 31 December 2024 in accordance with these requirements, as listed below.
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Core capital
767,446
710,527
Actual capital
1,039,821
981,594
Minimum capital
500,489
449,160
Core solvency ratio
153%
158%
Comprehensive solvency ratio
208%
219%
According to the solvency ratios results mentioned above, and the unquantifiable evaluation results of operational risk,
strategic risk, reputational risk and liquidity risk of insurance companies, the former NFRA evaluates the comprehensive
solvency of insurance companies and supervises insurance companies by classifying them into four categories:
i) Category A: solvency ratios meet the requirements, and the operational risk, strategic risk, reputational risk and liquidity
risk are very low;
ii) Category B: solvency ratios meet the requirements, and the operational risk, strategic risk, reputational risk and liquidity
risk are low;
iii) Category C: solvency ratios do not meet the requirements or solvency ratios meet the requirements but one or several
risks in operation, strategy, reputation and liquidity are high;
iv) Category D: solvency ratios do not meet the requirements or solvency ratios meet the requirements but one or several
risks in operation, strategy, reputation and liquidity are severe.
According to the Supervision Information System of the China Risk Oriented Solvency System, the latest Integrated Risk
Rating result of the Company was Category A.
5.3 Disclosures about interest in unconsolidated structured entities
The Group’s interests in unconsolidated structured entities are accounted for in investments in financial assets at fair value
through profit or loss and debt instruments at fair value through other comprehensive income. These structured entities
typically raise funds by issuing securities or other beneficiary certificates. The purpose of these structured entities is primarily
to generate management service fees, or provide finance to public and private infrastructure construction. Refer to Note
4.5 for the Group’s consolidation judgements related to structured entities.
For the year ended 31 December 2024
159
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.3 Disclosures about interest in unconsolidated structured entities (continued)
The Group did not guarantee or provide any financing support for the structured entities that the Group had interest in or
sponsored.
(i) The unconsolidated structured entities that the Group has interest in
The Group believes that the maximum exposure approximates the carrying amount of interest in these unconsolidated
structured entities. The size of unconsolidated structured entities as well as the Group’s carrying amount of the assets
recognised in the consolidated financial statements relating to its interest in unconsolidated structured entities and the
Group’s maximum exposure are shown below:
As at 31 December 2024
Unconsolidated structured entities
Size
Carrying amount
of assets
Maximum
exposure
Interest held
by the Group
RMB million
RMB million
RMB million
Funds managed by affiliated entities
231,395
8,366
8,366
Investment income and
service fee
Funds managed by third parties
Note 1
274,550
274,550
Investment income
Trust schemes managed by affiliated entities
600
467
467
Investment income
Trust schemes managed by third parties
Note 1
93,512
93,512
Investment income
Debt investment schemes managed by affiliated
entities
81,387
38,593
38,593
Investment income and
service fee
Debt investment schemes managed by third parties
Note 1
45,303
45,303
Investment income
Others managed by affiliated entities Note 2
71,965
26,540
26,540
Investment income and
service fee
Others managed by third parties Note 2
Note 1
158,411
158,411
Investment income
As at 31 December 2023
Unconsolidated structured entities
Size
Carrying amount
of assets
Maximum
exposure
Interest held
by the Group
RMB million
RMB million
RMB million
Funds managed by affiliated entities
175,402
9,794
9,794
Investment income and
service fee
Funds managed by third parties
Note 1
174,195
174,195
Investment income
Trust schemes managed by affiliated entities
2,090
1,284
1,284
Investment income
Trust schemes managed by third parties
Note 1
56,551
56,551
Investment income
Debt investment schemes managed by affiliated
entities
73,722
31,035
31,035
Investment income and
service fee
Debt investment schemes managed by third parties
Note 1
45,544
45,544
Investment income
Others managed by affiliated entities Note 2
40,116
9,211
9,211
Investment income and
service fee
Others managed by third parties Note 2
Note 1
103,825
103,825
Investment income
Note 1: Funds, trust schemes, debt investment schemes and others managed by third parties were sponsored by third party financial institutions and the
information related to size of these structured entities were not publicly available.
Note 2: Others included wealth management products, special asset management schemes, and asset-backed plans, etc.
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.3 Disclosures about interest in unconsolidated structured entities (continued)
(ii) The unconsolidated structured entities that the Group has sponsored but does not have interest in
As at 31 December 2024, the size of the unconsolidated structured entities that the Group sponsored but had no interest was
RMB886,017 million (as at 31 December 2023: RMB623,539 million), which were mainly funds, special asset management
schemes, pension security products and pension products, etc., sponsored by the Group to generate management service
fee income. In 2024, the management service fee from these structured entities was RMB1,590 million (2023: RMB1,651
million), which was recorded as other income. The Group did not transfer assets to these structured entities.
5.4 Fair value hierarchy
Level 1 fair value is usually based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can obtain at the measurement date.
Other than Level 1 quoted prices, Level 2 fair value is based on valuation techniques using significant inputs, that are
observable for the asset being measured, either directly or indirectly, for substantially the full term of the asset through
corroboration with observable market data. Observable inputs generally used to measure the fair value of investments
classified as Level 2 include quoted market prices for similar assets in active markets; quoted market prices in markets that
are not active for identical or similar assets and other market observable inputs. This level includes the debt investments
for which quotations are available from pricing services providers. Fair values provided by pricing services providers are
subject to a number of validation procedures by management. These procedures include a review of the valuation models
utilised and the results of these models, as well as the recalculation of prices obtained from pricing services at the end of
each reporting period.
In this instance, the Group’s valuation team may choose to apply an internally developed valuation method to the assets
or liabilities being measured based on unobservable main inputs for valuation, determine the key inputs for valuation, and
analyse the change of the valuation and report it to management. IF key inputs involved in internal valuation services are not
based on observable market data, they reflect assumptions made by management based on judgements and experiences.
The assets and liabilities valued by this method are generally classified as Level 3.
As at 31 December 2024, assets classified as Level 1 accounted for 30.9% of assets measured at fair value on a recurring
basis. Fair value measurements classified as Level 1 include certain securities that are traded in an active exchange market
or interbank market and open-ended funds with public market price quotations. The Group considers a combination of
certain factors to determine whether a market for a financial instrument is active, including the occurrence of trades within
the specific period, the respective trading volume, and the degree to which the implied yields for debt investments for
observed transactions differs from the Group’s understanding of the current relevant market rates and information. Trading
prices from the Chinese interbank market are determined by both trading counterparties and can be observed publicly. The
Group adopted this price of the debt investments traded on the Chinese interbank market at the reporting date as their fair
market value and classified the investments as Level 1. Open-ended funds also have active markets. Fund management
companies publish the net asset value of these funds on their websites on each trade date. Investors subscribe for and
redeem units of these funds in accordance with the funds’ net asset value published by the fund management companies
on each trade date. The Group adopted the unadjusted net asset value of the funds at the reporting date as their fair market
value and classified the investments as Level 1.
As at 31 December 2024, assets classified as Level 2 accounted for 57.6% of assets measured at fair value on a recurring
basis. Valuations are generally obtained from third-party valuation service providers for identical or comparable assets, or
through the use of valuation methodologies using observable market inputs, or recent quoted market prices. Valuation
service providers typically gather, analyse and interpret information related to market transactions and other key valuation
model inputs from multiple sources, and through the use of widely accepted internal valuation models, provide a theoretical
quote on various securities. Debt securities are classified as Level 2 when they are valued at recent trading prices from
the Chinese interbank market or from valuation service providers.
For the year ended 31 December 2024
161
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.4 Fair value hierarchy (continued)
As at 31 December 2024, assets classified as Level 3 accounted for 11.5% of assets measured at fair value on a recurring
basis. They primarily include unlisted securities. Fair values are determined using valuation techniques, including discounted
cash flow valuations and the comparable companies approach. The determination of Level 3 is primarily based on the
significance of certain unobservable inputs used for measurement of the asset’s fair value.
For the accounting policies regarding the determination of fair values of financial assets and liabilities, see Note 4.2.
The following table presents the Group’s quantitative disclosures of the fair value measurement hierarchy for assets and
liabilities measured at fair value as at 31 December 2024:
Fair value measurement using
Total
Quoted prices
in active
markets
Significant
observable
inputs
Significant
unobservable
inputs
Level 1
Level 2
Level 3
RMB million
RMB million
RMB million
RMB million
Financial assets at fair value through profit
or loss
Funds
306,351
200
–
306,551
Common stocks
440,417
513
–
440,930
Government bonds
563
3,342
–
3,905
Government agency bonds
459
8,390
–
8,849
Corporate bonds
4,215
198,663
45
202,923
Subordinated bonds
155,498
192,106
–
347,604
Others
53,853
113,523
429,960
597,336
Investment in equity instruments at fair
value through other comprehensive income
Common stocks
60,153
–
–
60,153
Preferred stocks
–
–
51,444
51,444
Others
17,948
7,470
34,802
60,220
Investment in debt instruments at fair value
through other comprehensive income
Government bonds
455,156
233,599
–
688,755
Government agency bonds
204,114
1,975,710
–
2,179,824
Corporate bonds
14,240
431,981
–
446,221
Subordinated bonds/debts
830
20,399
–
21,229
Others
–
2,334
120,532
122,866
Total
1,713,797
3,188,230
636,783
5,538,810
Liabilities measured at fair value
Financial liabilities at fair value through
profit or loss
(53,521)
–
–
(53,521)
Total
(53,521)
–
–
(53,521)
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.4 Fair value hierarchy (continued)
The following table presents the changes in Level 3 financial instruments for the year ended 31 December 2024:
Investment
in equity
instruments
at fair value
through other
comprehensive
income
Investment
in debt
instruments
at fair value
through other
comprehensive
income
Financial
assets at fair
value through
profit or loss
Total
RMB million
RMB million
RMB million
RMB million
Opening balance
80,062
97,437
429,506
607,005
Purchases
4,000
30,428
45,310
79,738
Total gains/(losses) recorded in profit or loss
–
(4)
9,428
9,424
Total gains/(losses) recorded in other
comprehensive income
2,184
3,314
–
5,498
Disposals or exercised
–
(1,051)
(26,134)
(27,185)
Settlement
–
(9,592)
(28,105)
(37,697)
Closing balance
86,246
120,532
430,005
636,783
For the year ended 31 December 2024
163
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.4 Fair value hierarchy (continued)
The following table presents the Group’s quantitative disclosures of the fair value measurement hierarchy for assets and
liabilities measured at fair value as at 31 December 2023:
Fair value measurement using
Total
Quoted prices
in active
markets
Significant
observable
inputs
Significant
unobservable
inputs
Level 1
Level 2
Level 3
RMB million
RMB million
RMB million
RMB million
Financial assets at fair value through
profit or loss
Funds
206,682
281
–
206,963
Common stocks
400,172
15,241
–
415,413
Government bonds
409
3,213
–
3,622
Government agency bonds
682
6,131
–
6,813
Corporate bonds
7,785
179,308
45
187,138
Subordinated bonds
114,391
201,044
–
315,435
Others
70,539
69,991
429,461
569,991
Investment in equity instruments at fair
value through other comprehensive income
Common stocks
14,273
514
–
14,787
Preferred stocks
–
–
50,445
50,445
Others
32,577
10,579
29,617
72,773
Investment in debt instruments at fair value
through other comprehensive income
Government bonds
250,592
244,238
–
494,830
Government agency bonds
184,458
1,533,140
–
1,717,598
Corporate bonds
9,452
399,469
–
408,921
Subordinated bonds/debts
484
22,268
–
22,752
Others
–
2,631
97,437
100,068
Total
1,292,496
2,688,048
607,005
4,587,549
Liabilities measured at fair value
Financial liabilities at fair value through
profit or loss
(13,878)
–
–
(13,878)
Total
(13,878)
–
–
(13,878)
For the year ended 31 December 2024
164
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Notes to the Consolidated Financial Statements (continued)
5 RISK MANAGEMENT (continued)
5.4 Fair value hierarchy (continued)
The following table presents the changes in Level 3 financial instruments for the year ended 31 December 2023:
Investment
in equity
instruments
at fair value
through other
comprehensive
income
Investment
in debt
instruments
at fair value
through other
comprehensive
income
Financial assets
at fair value
through profit
or loss
Total
RMB million
RMB million
RMB million
RMB million
Opening balance
79,678
82,833
366,818
529,329
Purchases
–
32,703
79,726
112,429
Total gains/(losses) recorded in profit or loss
–
1,042
11,374
12,416
Total gains/(losses) recorded in other
comprehensive income
937
6,872
–
7,809
Disposals or exercised
–
–
(9,110)
(9,110)
Settlement
(553)
(26,013)
(19,302)
(45,868)
Closing balance
80,062
97,437
429,506
607,005
For the assets and liabilities measured at fair value on a recurring basis, during the year ended 31 December 2024,
RMB108,990 million (2023: RMB81,804 million) investments were transferred from Level 1 to Level 2 within the fair value
hierarchy, whereas RMB122,581 million (2023: RMB37,744 million) investments were transferred from Level 2 to Level 1.
As at 31 December 2024, significant unobservable inputs such as discount rate and discounts for lack of marketability were
used in the valuation of primary assets and liabilities at fair value classified as Level 3 (as at 31 December 2023: same).
The table below presents information about the significant unobservable inputs used for primary financial instruments at
fair value classified as Level 3 as at 31 December 2024 (as at 31 December 2023: same):
Valuation techniques
Significant
unobservable inputs
Range
Relationships between fair
value and unobservable
inputs
Comparable companies
method
Discounts for lack of
marketability
as at 31 December 2024:
13%-35%
The fair value is inversely
related to the discounts for
lack of marketability
as at 31 December 2023:
15%-33%
Discounted cash flow
method
Discount rate
as at 31 December 2024:
1.62%-13.00%
The fair value is inversely
related to discount rate
as at 31 December 2023:
1.57%-16.70%
For the year ended 31 December 2024
165
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Notes to the Consolidated Financial Statements (continued)
6 SEGMENT INFORMATION
6.1 Operating segments
The Group operates in the life insurance business segment, the health insurance business segment, the accident insurance
business segment and other businesses segment:
(i) Life insurance business (Life)
Life insurance business relates primarily to the sale of life insurance policies, including those life insurance policies without
significant insurance risk transferred.
(ii) Health insurance business (Health)
Health insurance business relates primarily to the sale of health insurance policies, including those health insurance policies
without significant insurance risk transferred.
(iii) Accident insurance business (Accident)
Accident insurance business relates primarily to the sale of accident insurance policies.
(iv) Other businesses (Others)
Other businesses relate primarily to income and cost of the agency business in respect of transactions with CLIC, etc., as
described in Note 31, and the income and expenses of subsidiaries, as well as related consolidation offsets, etc.
6.2 Allocation basis of income and expenses
Insurance service income and expenses directly related to the segments are directly recognised in each insurance segment.
Interest income, investment income etc., are allocated to each segment by systematic and reasonable method. Other
expenses that are not directly attributable to the portfolio of insurance contracts are not allocated and are directly recognised
in other business segment.
6.3 Allocation basis of assets and liabilities
Insurance service assets and liabilities directly related to the segments are directly recognised in each insurance segment.
Other assets and other liabilities are allocated to each segment by systematic and reasonable method.
6.4 The Group’s external transaction income and assets are predominantly sourced from China (including Hong Kong).
Due to the dispersion of the policyholders in life insurance business, the Group maintains minimal reliance on any single
policyholder.
6.5 The segment information for the year ended 31 December 2023 submitted by the Group to the operating decision-maker
is prepared in accordance with ASBE, among which insurance contracts-related data is prepared in accordance with ASBE
No. 25 – Direct Insurance Contracts (Caikuai [2006] No. 3), ASBE No. 26 – Reinsurance Contracts (Caikuai [2006] No. 3) and
Regulations regarding the Accounting Treatment of Insurance Contracts (Caikuai [2009] No. 15), and financial instruments-
related data is prepared in accordance with ASBE No. 22 – Recognition and Measurement of Financial Instruments (Caikuai
[2006] No. 3), ASBE No. 23 – Transfer of Financial Assets (Caikuai [2006] No. 3), ASBE No. 24 – Hedging (Caikuai [2006]
No. 3) and ASBE No. 37 – Presentation of Financial Instruments (Caikuai [2014] No. 23), etc.
For the year ended 31 December 2024
166
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Notes to the Consolidated Financial Statements (continued)
6 SEGMENT INFORMATION (continued)
For the year ended 31 December 2024
Life
Health
Accident
Others
Total
RMB million
Insurance revenue
137,405
56,844
13,912
–
208,161
Interest income
109,156
7,177
207
4,418
120,958
Investment income
159,176
10,467
303
6,515
176,461
Investment income from associates and
joint ventures
10,647
700
20
710
12,077
Other income
–
–
–
10,970
10,970
Total revenues
416,384
75,188
14,442
22,613
528,627
Insurance service expenses
(119,797)
(46,610)
(14,137)
–
(180,544)
Allocation of reinsurance premiums paid
(958)
(4,006)
(107)
–
(5,071)
Less: Amounts recovered from reinsurers
390
4,794
265
–
5,449
Insurance finance income/(expenses) from
insurance contracts issued
(197,269)
(12,338)
(345)
–
(209,952)
Less: Reinsurance finance income/
(expenses) from reinsurance
contracts held
126
541
4
–
671
Finance costs
(2,935)
(193)
(6)
(1,066)
(4,200)
Expected credit losses
(3,446)
(227)
(7)
3,887
207
Other impairment losses
(2,585)
(170)
(5)
1,149
(1,611)
Other expenses
–
–
–
(18,363)
(18,363)
Profit before income tax
89,910
16,979
104
8,220
115,213
Supplementary Information:
Depreciation and amortisation expenses
2,843
1,106
335
745
5,029
For the year ended 31 December 2024
Segment information
Life
Health
Accident
Others
Total
RMB million
Segment assets
6,125,372
427,088
11,702
205,384
6,769,546
Segment liabilities
5,672,377
374,159
10,159
191,603
6,248,298
For the year ended 31 December 2024
167
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
6 SEGMENT INFORMATION (continued)
For the year ended 31 December 2023
Life
Health
Accident
Others
Elimination
Total
RMB million
I. Operating income
695,053
119,459
14,424
12,655
(3,732)
837,859
Premiums earned
511,355
106,757
14,029
–
–
632,141
Premium income
512,622
114,023
14,735
–
–
641,380
Less: Premiums ceded to reinsurers
(1,267)
(6,110)
(618)
–
–
(7,995)
Change in unearned
premium reserves
–
(1,156)
(88)
–
–
(1,244)
Investment income
177,373
12,287
386
581
–
190,627
Including: Share of profit of associates
and joint ventures
8,816
607
19
(916)
–
8,526
Other gains
87
6
–
51
–
144
Fair value gains/(losses)
3,894
268
8
(1)
–
4,169
Foreign exchange gains/(losses)
165
11
–
(557)
–
(381)
Other operating income
2,110
125
1
12,582
(3,732)
11,086
Including: inter-segment transactions
–
–
–
3,732
(3,732)
–
Gains/(losses) on disposal of assets
69
5
–
(1)
–
73
II. Operating expenses
(689,444)
(117,405)
(13,625)
(8,876)
3,732
(825,618)
Surrenders
(46,383)
(2,335)
(22)
–
–
(48,740)
Claims expense
(103,907)
(63,894)
(7,018)
–
–
(174,819)
Less: Claims recoverable from reinsurers
506
6,164
339
–
–
7,009
Increase in insurance contracts reserve
(375,952)
(31,089)
(170)
–
–
(407,211)
Less: Insurance reserves recoverable from
reinsurers
97
151
39
–
–
287
Policyholder dividends resulting from
participation in profits
(11,614)
(81)
–
–
–
(11,695)
Tax and surcharges
(889)
(202)
(21)
(305)
–
(1,417)
Underwriting and policy acquisition costs
(47,281)
(9,833)
(4,260)
(1,718)
–
(63,092)
Administrative expenses
(24,825)
(10,592)
(2,059)
(3,600)
–
(41,076)
Less: Expenses recoverable from reinsurers
376
342
10
–
–
728
Other operating expenses
(30,238)
(2,629)
(353)
(3,103)
3,732
(32,591)
Including: inter-segment transactions
(3,484)
(240)
(8)
–
3,732
–
Impairment losses
(49,334)
(3,407)
(110)
(150)
–
(53,001)
III. Operating profit
5,609
2,054
799
3,779
–
12,241
Add: Non-operating income
81
6
–
7
–
94
Less: Non-operating expenses
(425)
(29)
(1)
(2)
–
(457)
IV. Net profit before income tax
5,265
2,031
798
3,784
–
11,878
Supplementary Information:
Depreciation and amortisation expenses
2,804
1,118
233
861
–
5,016
The reconciliation of segment information to the consolidated statement of comprehensive income is as follows:
For the year ended 31 December 2023
Segment information
Adjustment
Consolidated statement of
comprehensive income
IFRS 9
IFRS 17
RMB million
Operating income: 837,859
(60,745)
(432,368)
Total revenue: 344,746
Net profit before income tax: 11,878
(6,895)
39,593
Profit before income tax: 44,576
For the year ended 31 December 2024
168
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Notes to the Consolidated Financial Statements (continued)
6 SEGMENT INFORMATION (continued)
As at 31 December 2023
Item
Life
Health
Accident
Others
Elimination
Total
RMB million
I. Assets
Cash fund
132,636
9,135
289
7,506
–
149,566
Financial assets at fair value through profit
or loss
235,852
16,244
513
1,270
–
253,879
Financial assets purchased under
agreements to resell
16,213
1,117
35
122
–
17,487
Interest receivable
47,248
3,254
103
274
–
50,879
Premiums receivable
8,119
12,939
463
–
–
21,521
Unearned premium reserves receivable from
reinsurers
–
586
56
–
–
642
Claim reserves receivable from reinsurers
–
313
334
–
–
647
Reserves for life insurance receivables from
reinsurers
700
–
–
–
–
700
Reserves for long-term health insurance
receivables from reinsurers
–
4,573
–
–
–
4,573
Loans
570,812
30,172
673
1,982
–
603,639
Term deposits
371,105
25,560
808
6,658
–
404,131
Available-for-sale financial assets
2,099,921
144,633
4,569
13,924
–
2,263,047
Held-to-maturity investments
1,591,004
109,581
3,462
2,394
–
1,706,441
Long-term equity investments
215,217
14,823
468
27,098
–
257,606
Statutory deposits
5,278
364
11
680
–
6,333
Separate account assets
7
–
–
8,409
–
8,416
Total distributable assets
5,294,112
373,294
11,784
70,317
–
5,749,507
Undistributable assets
Other assets
138,972
Total
5,888,479
II. Liabilities
Financial liabilities at fair value through profit
or loss
5,106
352
11
–
–
5,469
Financial assets sold under agreements to
repurchase
200,368
13,800
436
2,100
–
216,704
Claims payable
60,979
5,302
311
–
–
66,592
Policyholder deposits
466,619
19,864
–
–
–
486,483
Unearned premium reserves
–
10,490
3,730
–
–
14,220
Claim reserves
–
20,608
3,853
–
–
24,461
Reserves for life insurance
3,981,728
–
1,705
–
–
3,983,433
Reserves for long-term health insurance
–
266,376
–
–
–
266,376
Long-term borrowings
–
–
–
12,719
–
12,719
Separate account liabilities
7
–
–
8,409
–
8,416
Other distributable liabilities
35,745
2,291
71
–
–
38,107
Total distributable liabilities
4,750,552
339,083
10,117
23,228
–
5,122,980
Non-distributable liabilities
Other liabilities
295,457
Total
5,418,437
The reconciliation of segment information to the consolidated statement of financial position is as follows:
As at 31 December 2023
Segment information
Adjustment
Consolidated statement of
financial position
IFRS 9
IFRS 17
Impact of
Deferred tax
RMB million
Assets: 5,888,479
198,743
(279,280)
(5,856)
Assets: 5,802,086
Liabilities: 5,418,437
590
(102,426)
(1,549)
Liabilities: 5,315,052
For the year ended 31 December 2024
169
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
7 PROPERTY, PLANT AND EQUIPMENT
Buildings
Office
equipment,
furniture and
fixtures
Motor
vehicles
Assets under
construction
Leasehold
improvements
Total
RMB million
Cost
As at 1 January 2024
63,486
9,963
1,345
5,183
2,215
82,192
Transfers upon completion
1,986
31
–
(2,168)
147
(4)
Additions
9
895
89
2,813
–
3,806
Disposals
(427)
(160)
(158)
–
(162)
(907)
As at 31 December 2024
65,054
10,729
1,276
5,828
2,200
85,087
Accumulated depreciation
As at 1 January 2024
(18,342)
(7,261)
(1,057)
–
(1,799)
(28,459)
Charge for the year
(2,152)
(942)
(100)
–
(192)
(3,386)
Disposals
355
155
152
–
157
819
As at 31 December 2024
(20,139)
(8,048)
(1,005)
–
(1,834)
(31,026)
Impairment
As at 1 January 2024
(22)
–
–
(1)
–
(23)
Charge for the year
–
–
–
(9)
–
(9)
Disposals
–
–
–
1
–
1
As at 31 December 2024
(22)
–
–
(9)
–
(31)
Net book value
As at 1 January 2024
45,122
2,702
288
5,182
416
53,710
As at 31 December 2024
44,893
2,681
271
5,819
366
54,030
For the year ended 31 December 2024
170
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
7 PROPERTY, PLANT AND EQUIPMENT (continued)
Buildings
Office
equipment,
furniture and
fixtures
Motor
vehicles
Assets under
construction
Leasehold
improvements
Total
RMB million
Cost
As at 1 January 2023
62,954
8,884
1,268
5,026
2,206
80,338
Transfers upon completion
1,619
244
–
(2,063)
192
(8)
Additions
114
1,020
189
2,220
–
3,543
Disposals
(1,201)
(185)
(112)
–
(183)
(1,681)
As at 31 December 2023
63,486
9,963
1,345
5,183
2,215
82,192
Accumulated depreciation
As at 1 January 2023
(16,640)
(6,319)
(1,071)
–
(1,724)
(25,754)
Charge for the year
(2,107)
(1,120)
(95)
–
(240)
(3,562)
Disposals
405
178
109
–
165
857
As at 31 December 2023
(18,342)
(7,261)
(1,057)
–
(1,799)
(28,459)
Impairment
As at 1 January 2023
(24)
–
–
(1)
–
(25)
Charge for the year
–
–
–
–
–
–
Disposals
2
–
–
–
–
2
As at 31 December 2023
(22)
–
–
(1)
–
(23)
Net book value
As at 1 January 2023
46,290
2,565
197
5,025
482
54,559
As at 31 December 2023
45,122
2,702
288
5,182
416
53,710
As at 31 December 2024, the net book value of buildings above which were in process to obtain title certificates was
RMB4,234 million (as at 31 December 2023: RMB4,617 million).
For the year ended 31 December 2024
171
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
8 LEASES
(a) Right-of-use assets
Buildings
Others
Total
RMB million
Cost
As at 1 January 2024
3,570
4
3,574
Additions
1,122
1
1,123
Deductions
(1,371)
(1)
(1,372)
As at 31 December 2024
3,321
4
3,325
Accumulated depreciation
As at 1 January 2024
(2,091)
(3)
(2,094)
Charge for the year
(899)
(1)
(900)
Deductions
1,225
1
1,226
As at 31 December 2024
(1,765)
(3)
(1,768)
Impairment
As at 1 January 2024
–
–
–
As at 31 December 2024
–
–
–
Net book value
As at 1 January 2024
1,479
1
1,480
As at 31 December 2024
1,556
1
1,557
Buildings
Others
Total
RMB million
Cost
As at 1 January 2023
4,201
3
4,204
Additions
636
1
637
Deductions
(1,267)
–
(1,267)
As at 31 December 2023
3,570
4
3,574
Accumulated depreciation
As at 1 January 2023
(2,392)
(2)
(2,394)
Charge for the year
(938)
(1)
(939)
Deductions
1,239
–
1,239
As at 31 December 2023
(2,091)
(3)
(2,094)
Impairment
As at 1 January 2023
–
–
–
As at 31 December 2023
–
–
–
Net book value
As at 1 January 2023
1,809
1
1,810
As at 31 December 2023
1,479
1
1,480
The Group’s right-of-use assets include the above assets and land use rights disclosed in Note 13.
For the year ended 31 December 2024
172
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Notes to the Consolidated Financial Statements (continued)
8 LEASES (continued)
(b) The amounts recognised in profit or loss in relation to leases are as follows:
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Interest on lease liabilities
45
54
Depreciation charge of right-of-use assets
900
939
Expense relating to short-term leases
288
319
Expense relating to leases of low-value assets
(except for short-term lease liabilities)
2
1
Total
1,235
1,313
9 INVESTMENT PROPERTIES
Buildings
RMB million
Cost
As at 1 January 2024
15,222
Additions
4
Deductions
–
As at 31 December 2024
15,226
Accumulated depreciation
As at 1 January 2024
(2,469)
Additions
(438)
Deductions
–
As at 31 December 2024
(2,907)
Net book value
As at 1 January 2024
12,753
As at 31 December 2024
12,319
Fair value
As at 1 January 2024
16,677
As at 31 December 2024
16,060
For the year ended 31 December 2024
173
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Notes to the Consolidated Financial Statements (continued)
9 INVESTMENT PROPERTIES (continued)
Buildings
RMB million
Cost
As at 1 January 2023
15,226
Additions
1
Deductions
(5)
As at 31 December 2023
15,222
Accumulated depreciation
As at 1 January 2023
(2,033)
Additions
(437)
Deductions
1
As at 31 December 2023
(2,469)
Net book value
As at 1 January 2023
13,193
As at 31 December 2023
12,753
Fair value
As at 1 January 2023
16,854
As at 31 December 2023
16,677
The Company leases part of its investment properties to its subsidiaries and charges rentals based on the areas occupied by
the respective entities. These properties are categorised as property, plant and equipment of the Group in the consolidated
statement of financial position.
The Group has no restrictions on the use of its investment properties and no contractual obligations to each investment
property purchased, constructed or developed or for repairs, maintenance and enhancements.
As at 31 December 2024, the Group had no investment properties for which the title certificates were in process to obtain
(as at 31 December 2023: nil).
The fair value of investment properties of the Group as at 31 December 2024 amounted to RMB16,060 million (as at
31 December 2023: RMB16,677 million), which was estimated by the Group having regards to valuations performed by
independent appraisers. The investment properties were classified as Level 3 in the fair value hierarchy.
The Group classifies the fair value of its investment properties within Level 3 of the fair value hierarchy. In determining their
fair value, the market comparison approach is employed as the valuation technique. This method utilises recent average
transaction prices of comparable properties as a baseline, incorporating systematic adjustments for variations factors,
including the time and the conditions of sale, the geographical location, age, decoration, floor area, lot size of the property
and other factors to derive the fair value of investment properties.
Under the above valuation approach, an increase (decrease) in the comprehensive adjustment coefficient will result in
changes in the fair value of investment properties.
For the year ended 31 December 2024
174
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Notes to the Consolidated Financial Statements (continued)
10 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
2024
2023
RMB million
RMB million
Opening balance
258,760
262,485
Change of the cost
34,175
(8,252)
Share of profit or loss
12,077
8,079
Dividends declared
(5,328)
(4,854)
Other equity movements
3,995
1,302
Provision for impairment
(1,602)
–
Closing balance
302,077
258,760
Movements in the current year
Accounting
method
Investment
cost
As at 31
December
2023
Change of
the cost
Share of
profit or loss
Dividends
declared
Other equity
movements
Provision for
impairment
As at 31
December
2024
Percentage
of equity
interest
Accumulated
amount of
impairment
RMB million
RMB million
Associates
China Guangfa Bank Co., Ltd. (“CGB”) (i)
Equity method
53,201
104,645
–
5,745
(765)
2,411
–
112,036
43.686%
–
COFCO Futures Company Limited (“COFCO Futures”)
Equity method
1,339
1,795
–
91
(30)
244
–
2,100
29.58%
–
China Pipe Group Sichuan to East China Gas Pipeline
Co., Ltd. (“Pipeline Company”)
Equity method
10,000
12,104
–
790
(1,063)
9
–
11,840
43.86%
–
China United Network Communications Limited
(“China Unicom”) (ii)
Equity method
21,801
23,052
–
854
(473)
51
–
23,484
10.03%
–
Others (iii)
Equity method
71,407
62,683
1,107
2,381
(1,478)
269
(313)
64,649
(6,680)
Sub-total
157,748
204,279
1,107
9,861
(3,809)
2,984
(313)
214,109
(6,680)
Joint ventures
Joy City Commercial Property Fund L.P. (“Joy City”)
Equity method
6,281
5,414
–
270
(549)
–
–
5,135
66.67%
–
Mapleleaf Century Limited (“MCL”)
Equity method
7,656
3,025
–
(489)
–
100
–
2,636
75.00%
–
Others (iii)
Equity method
83,177
46,042
33,068
2,435
(970)
911
(1,289)
80,197
(1,289)
Sub-total
97,114
54,481
33,068
2,216
(1,519)
1,011
(1,289)
87,968
(1,289)
Total
254,862
258,760
34,175
12,077
(5,328)
3,995
(1,602)
302,077
(7,969)
For the year ended 31 December 2024
175
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Notes to the Consolidated Financial Statements (continued)
10 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (continued)
(i)
The 2023 final dividend of RMB0.0804 in cash per ordinary share was approved and declared in the Annual General Meeting of CGB on 20 June 2024.
The Company received a cash dividend of RMB765 million.
(ii) The 2023 final dividend of RMB0.0524 in cash per ordinary share was approved and declared in the Annual General Meeting of China Unicom on 11 July
2024. The Company received a cash dividend of RMB167 million. The 2024 interim dividend of RMB0.0959 in cash per ordinary share was approved and
declared in the Annual General Meeting of China Unicom on 15 August 2024. The Company received a cash dividend of RMB306 million.
On 31 December 2024, the stock price of China Unicom was RMB5.31 per share.
(iii) The Group invested in real estate, industrial logistics assets and other industries through these enterprises.
(iv) There is no significant restriction for the Group to dispose of its associates and joint ventures.
As at 31 December 2024, the major associates and joint ventures of the Group are as follows:
Name
Place of incorporation
Percentage of equity
interest held
Associates
CGB
PRC
43.686%
COFCO Futures
PRC
29.58%
Pipeline Company
PRC
43.86%
China Unicom
PRC
10.03%
Joint ventures
Joy City
The British Cayman Islands
66.67%
MCL
The British Virgin Islands
75.00%
As at 31 December 2023, the major associates and joint ventures of the Group are as follows:
Name
Place of incorporation
Percentage of equity
interest held
Associates
CGB
PRC
43.686%
COFCO Futures
PRC
35.00%
Pipeline Company
PRC
43.86%
China Unicom
PRC
10.03%
Joint ventures
Joy City
The British Cayman Islands
66.67%
MCL
The British Virgin Islands
75.00%
For the year ended 31 December 2024
176
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
10 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (continued)
The following table illustrates the financial information of the Group’s major associates and joint ventures as at 31 December
2024 and for the year ended 31 December 2024:
CGB
COFCO
Futures
Pipeline
Company
China
Unicom
Joy City
MCL
RMB million
RMB million
RMB million
RMB million
RMB million
RMB million
Total assets
3,644,993
26,518
21,099
672,837
9,530
24,865
Total liabilities
3,345,982
21,787
7,261
304,048
7
13,140
Total equity
299,011
4,731
13,838
368,789
9,523
11,725
Total equity attributable to equity
holders of the associates and
joint ventures
249,012
4,713
13,838
164,847
9,523
11,725
Total adjustments (i)
150
–
340
15,093
(1,821)
(8,210)
Total equity attributable to equity
holders of the associates
and joint ventures after
adjustments
249,162
4,713
14,178
179,940
7,702
3,515
Proportion of the Group’s
ownership
43.686%
29.58%
43.86%
10.03%
66.67%
75.00%
Book balance of the investments
112,036
2,100
11,840
23,484
5,135
2,636
Impairment
–
–
–
–
–
–
Net carrying value of the
investments
112,036
2,100
11,840
23,484
5,135
2,636
Total revenues
69,237
1,218
4,474
399,008
310
769
Net profit/(loss)
15,284
265
1,860
20,601
296
30
Other comprehensive income
5,520
17
–
263
–
223
Total comprehensive income
20,804
282
1,860
20,864
296
253
For the year ended 31 December 2024
177
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Notes to the Consolidated Financial Statements (continued)
10 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (continued)
The following table illustrates the financial information of the Group’s major associates and joint ventures as at 31 December
2023 and for the year ended 31 December 2023:
CGB
COFCO
Futures
Pipeline
Company
China
Unicom
Joy City
MCL
RMB million
RMB million
RMB million
RMB million
RMB million
RMB million
Total assets
3,509,522
26,169
21,814
662,845
9,629
24,127
Total liabilities
3,232,537
22,585
7,430
304,910
7
12,826
Total equity
276,985
3,584
14,384
357,935
9,622
11,301
Total equity attributable to equity
holders of the associates and joint
ventures
231,993
3,571
14,384
159,241
9,622
11,301
Total adjustments (i)
251
–
362
15,565
(1,501)
(7,267)
Total equity attributable to equity
holders of the associates and joint
ventures after adjustments
232,244
3,571
14,746
174,806
8,121
4,034
Proportion of the Group’s ownership
43.686%
35.00%
43.86%
10.03%
66.67%
75.00%
Book balance of the investments
104,645
1,795
12,104
23,052
5,414
3,025
Impairment
–
–
–
–
–
–
Net carrying value of the
investments
104,645
1,795
12,104
23,052
5,414
3,025
Total revenues
69,678
3,779
6,213
379,643
155
973
Net profit/(loss)
16,019
239
3,030
18,713
141
371
Other comprehensive income
2,841
3
–
319
–
(444)
Total comprehensive income
18,860
242
3,030
19,032
141
(73)
(i)
Total adjustments include accounting policy difference adjustments, fair value adjustments and other adjustments.
The Group had no contingent liabilities with the associates and joint ventures as at 31 December 2024 (as at 31 December
2023: same). The Group had a capital contribution commitment of RMB18,970 million with associates and joint ventures
as at 31 December 2024 (as at 31 December 2023: RMB13,638 million). The capital contribution commitment amount has
been included in the capital commitments in Note 36.
For the year ended 31 December 2024
178
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Notes to the Consolidated Financial Statements (continued)
11 FINANCIAL ASSETS
11.1 Term deposits
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Maturing:
Within one year
83,765
174,513
After one year but within five years
348,423
238,951
Over five years
6,500
–
Sub-total
438,688
413,464
Impairment provision
(233)
(209)
Total
438,455
413,255
As at 31 December 2024, the Group’s term deposits of RMB1,104 million were deposited in banks for risk reserves of
enterprise annuity fund investments and risk reserves of personal endowment security management business, which are
restricted to use (as at 31 December 2023: RMB1,506 million).
11.2 Statutory deposits – restricted
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
contractual maturity schedule:
Within one year
345
517
After one year but within five years
6,254
6,010
Sub-total
6,599
6,527
Impairment provision
(8)
(7)
Total
6,591
6,520
Insurance companies in China are required to deposit an amount that equals 20% of their registered capital with banks in
compliance with regulations of the NFRA. These funds may not be used for any purpose other than for paying off debts
during liquidation proceedings.
For the year ended 31 December 2024
179
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Notes to the Consolidated Financial Statements (continued)
11 FINANCIAL ASSETS (continued)
11.3 Investment in debt instruments at amortised cost
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Trust schemes
114,677
123,996
Debt investment plans
70,120
53,255
Others (i)
12,443
34,448
Sub-total
197,240
211,699
Impairment provision
(486)
(350)
Total
196,754
211,349
By place of listing:
Listed in Mainland, PRC
2,081
637
Listed in Hong Kong, PRC
99
132
Listed overseas
58
57
Unlisted (ii)
194,516
210,523
Total
196,754
211,349
(i)
Mainly including large denomination certificates of deposit and bonds.
(ii) Unlisted debt investments mainly include non-publicly traded trust schemes and debt investment plans, etc.
As at 31 December 2024
Level 1
Level 2
Level 3
Total
Fair value hierarchy
RMB million
RMB million
RMB million
RMB million
Trust schemes
–
–
120,981
120,981
Debt investment plans
–
–
73,848
73,848
Others
875
2,746
8,765
12,386
Total
875
2,746
203,594
207,215
As at 31 December 2023
Level 1
Level 2
Level 3
Total
Fair value hierarchy
RMB million
RMB million
RMB million
RMB million
Trust schemes
–
–
128,994
128,994
Debt investment plans
–
–
55,494
55,494
Others
178
2,437
32,276
34,891
Total
178
2,437
216,764
219,379
For the year ended 31 December 2024
180
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Notes to the Consolidated Financial Statements (continued)
11 FINANCIAL ASSETS (continued)
11.3 Investment in debt instruments at amortised cost (continued)
As at
31 December
2024
As at
31 December
2023
Contractual maturity schedule
RMB million
RMB million
Maturing:
Within one year
38,460
44,921
After one year but within five years
112,487
92,002
After five years but within ten years
44,231
67,097
Over ten years
1,576
7,329
Total
196,754
211,349
11.4 Investment in debt instruments at fair value through other comprehensive income
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Government bonds
688,755
494,830
Government agency bonds
2,179,824
1,717,598
Corporate bonds
446,221
408,921
Subordinated bonds
21,229
22,752
Others (i)
122,866
100,068
Total
3,458,895
2,744,169
By place of listing:
Listed in Mainland, PRC
431,701
395,189
Listed in Hong Kong, PRC
93
58
Listed overseas
1,055
179
Unlisted (ii)
3,026,046
2,348,743
Total
3,458,895
2,744,169
Contractual maturity schedule
Maturing:
Within one year
152,936
172,999
After one year but within five years
424,910
398,475
After five years but within ten years
233,853
207,198
Over ten years
2,647,196
1,965,497
Total
3,458,895
2,744,169
Impairment
(928)
(1,432)
(i)
Mainly including trust schemes and debt investment plans.
(ii) This mainly includes bonds traded in the Chinese interbank market, unlisted trust schemes and debt investment plans.
For the year ended 31 December 2024
181
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Notes to the Consolidated Financial Statements (continued)
11 FINANCIAL ASSETS (continued)
11.5 Investment in equity instruments at fair value through other comprehensive income
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Common stocks
60,153
14,787
Preferred stocks
51,444
50,445
Others (i)
60,220
72,773
Total
171,817
138,005
By place of listing:
Listed in Mainland, PRC
77,345
56,962
Listed in Hong Kong, PRC
36,338
8,891
Unlisted
58,134
72,152
Total
171,817
138,005
(i)
Mainly including perpetual bonds, etc.
In 2024, for the consideration of optimizing asset allocation and asset-liability management, the Group disposed of investment
in equity instruments at fair value through other comprehensive income amounted to RMB29,331 million (2023: RMB2,713
million), and the net cumulative gains of RMB2,559 million on disposal was transferred from other comprehensive income
to retained earnings (2023: net cumulative gain of RMB96 million).
The dividend income of equity instruments at fair value through other comprehensive income recognised during the year
are described in Note 22.
11.6 Financial assets at fair value through profit or loss
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Government bonds
3,905
3,622
Government agency bonds
8,849
6,813
Corporate bonds
202,923
187,138
Subordinated bonds
347,604
315,435
Funds
306,551
206,963
Common stocks
440,930
415,413
Others (i)
597,336
569,991
Total
1,908,098
1,705,375
By place of listing:
Listed in Mainland, PRC
572,717
472,522
Listed in Hong Kong, PRC
36,517
41,877
Listed overseas
23,194
10,230
Unlisted (ii)
1,275,670
1,180,746
Total
1,908,098
1,705,375
(i)
Mainly including trust schemes, perpetual bonds, private equity funds, and unlisted equity.
(ii) This mainly includes bonds traded in the Chinese interbank market, non-public trust schemes, perpetual bonds, private equity funds, and unlisted equity.
For the year ended 31 December 2024
182
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
11 FINANCIAL ASSETS (continued)
11.7 Financial assets purchased under agreements to resell
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Maturing:
Within 30 days
30,560
19,682
Above 30 days
–
77
Total
30,560
19,759
12 FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The table below presents the carrying amount and estimated fair value of major financial assets and liabilities:
Carrying amount
Estimated fair value
As at
31 December
2024
As at
31 December
2023
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
RMB million
RMB million
Term deposits
438,455
413,255
438,455
413,255
Statutory deposits – restricted
6,591
6,520
6,591
6,520
Investment in debt instruments at amortised
cost
196,754
211,349
207,215
219,379
Investment in debt instruments at fair value
through other comprehensive income
3,458,895
2,744,169
3,458,895
2,744,169
Investment in equity instruments at fair value
through other comprehensive income
171,817
138,005
171,817
138,005
Financial assets at fair value through profit or
loss
1,908,098
1,705,375
1,908,098
1,705,375
Financial assets purchased under agreements to
resell
30,560
19,759
30,560
19,759
Cash and cash equivalents
85,505
149,305
85,505
149,305
Financial liabilities at fair value through profit or
loss
(53,521)
(13,878)
(53,521)
(13,878)
Financial assets sold under agreements to
repurchase
(151,564)
(216,851)
(151,564)
(216,851)
Bonds payable
(35,194)
(36,166)
(35,387)
(36,278)
Interest-bearing loans and other borrowings
(12,758)
(12,857)
(12,758)
(12,857)
For the year ended 31 December 2024
183
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Notes to the Consolidated Financial Statements (continued)
12 FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (continued)
The fair values of the underlying items of the Group’s Insurance contracts with direct participation features are as follows:
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Cash and cash equivalents
38,203
47,693
Term deposits
102,607
131,206
Investment in debt instruments at amortised cost
1,938
12,163
Investment in debt instruments at fair value through other
comprehensive income
1,457,353
1,077,916
Investment in equity instruments at fair value through other
comprehensive income
50,316
61,599
Financial assets at fair value through profit or loss
702,762
589,031
Other miscellaneous items
69,432
167,942
Total
2,422,611
2,087,550
13 OTHER ASSETS
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Land use rights (i)
7,620
7,861
Investments receivable and prepaid
2,805
7,765
Disbursements
5,140
4,662
Due from related parties
1,084
1,005
Prepayments to constructors
99
95
Others (ii)
14,964
15,930
Total
31,712
37,318
(i)
The Group’s right-of-use assets include the above land use rights and right-of-use assets disclosed in Note 8.
(ii) As at 31 December 2024, other items in the Group’s other assets were mainly subsidiaries’ real estate related assets (as at 31 December 2023: same).
For the year ended 31 December 2024, the Group recognised an expected credit loss of RMB57 million for other receivables
(2023: RMB65 million), and the ending balance of provision for impairment for other receivables is RMB773 million (as at
31 December 2023: RMB720 million).
For the year ended 31 December 2024
184
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Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS
14.1 Significant actuarial assumptions
(1) Estimates of future cash flows
All of the future cash flows within the boundary of each group of contracts are included in the measurement of each group
of insurance contracts.
The Group estimates cash flows which are expected in the future and the timing and probability that they will occur based
on the information available at the reporting date. The Group’s expectations are based on past events, the information
provided by current conditions, and the forecasts of future conditions. The Group’s estimate of future cash flows is the
probability-weighted average of a range of scenarios that reflect the full range of possible outcomes.
The Group adjusts the estimates of future cash flows to reflect the time value of money.
Based on the information available at the date of statement of financial position, the Group reassesses the assumptions
used to develop estimates about future cash flows.
Significant actuarial assumptions used are discussed below:
Discount rates
Based on the information available at the reporting date, the Group applies the bottom-up approach in determining the
discount rate for future cash flows of the insurance contracts by adjusting tax premium and liquidity premium based on
the risk-free yield curve. The assumed spot discount rates are as follows:
Discount rate assumptions
As at 31 December 2024
1.55% ~ 4.77%
As at 31 December 2023
2.57% ~ 4.80%
Mortality/Morbidity
The mortality and morbidity assumptions are based on the Group’s historical mortality and morbidity experience. The assumed
mortality rates and morbidity rates vary with the gender, age of the insured and contract type.
The Group bases its mortality assumptions on the China Life Insurance Mortality Table (2010-2013), adjusted where appropriate
to reflect the Group’s recent historical mortality experience. The Group bases its morbidity assumptions on analysis of
historical experience and change trend of future developments. There is uncertainty of mortality and morbidity assumptions
that affected by epidemics, natural disasters, accidents, lifestyle changes, medical care, social conditions and other factors.
Lapse rates
The lapse rates are affected by certain factors, such as future macro-economy, availability of financial substitutions, and
market competition, which bring uncertainty to these assumptions. The lapse rates are determined with reference to
creditable past experience, current conditions, future expectations and other information.
Expense assumptions
Expense assumptions are based on the information available at the reporting date with the consideration of previous
expense studies and future trends. Expense assumptions are affected by certain factors such as future inflation and market
competition which bring uncertainty to these assumptions.
For the year ended 31 December 2024
185
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Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS
14.1 Significant actuarial assumptions (continued)
(1) Estimates of future cash flows (continued)
Policy dividend assumption
The policy dividend assumption is uncertainty and is affected by factors such as the expected investment returns, the Group’s
dividend policy, and the reasonable expectations of policyholders. The Group is obliged to pay 70% or a higher percentage
as agreed in the insurance policy of the cumulative distributable income to the participating insurance policyholders.
(2) Risk adjustment for non-financial risk
The risk adjustment for non-financial risk is calculated at the Group level and then allocated down to each group of contracts
in accordance with their risk profiles. The Group determines non-financial risk adjustments based on the confidence interval
method and at a 75% confidence level.
14.2 Insurance contract liabilities
(1) Reconciliation of the liabilities for remaining coverage and the liabilities for incurred claims for
insurance contracts issued
Contracts not measured using the premium allocation approach
Liabilities for
remaining coverage
Excluding loss
component
Loss
component
Liabilities for
incurred claims
Total
RMB million
Insurance contract liabilities
as at 1 January 2024
4,759,114
30,904
35,387
4,825,405
Contracts measured under the modified
retrospective approach at transition
(109,785)
–
–
(109,785)
Contracts measured under the fair value
approach at transition
(20,282)
–
–
(20,282)
Other contracts
(26,808)
–
–
(26,808)
Total insurance revenue
(156,875)
–
–
(156,875)
Incurred claims and other expenses
–
(3,366)
47,176
43,810
Amortisation of insurance acquisition cash
flows
45,167
–
–
45,167
Losses and reversals of losses on onerous
contracts
–
39,044
–
39,044
Changes to liabilities for incurred claims
–
–
650
650
Total insurance service expenses
45,167
35,678
47,826
128,671
Insurance service result
(111,708)
35,678
47,826
(28,204)
Financial changes in insurance contracts
592,442
523
–
592,965
Total amounts recognised in comprehensive
income
480,734
36,201
47,826
564,761
Investment components
(252,214)
–
252,214
–
Premiums received
747,663
–
–
747,663
Insurance acquisition cash flows paid
(47,785)
–
–
(47,785)
Claims and other expenses paid
–
–
(300,588)
(300,588)
Total cash flows
699,878
–
(300,588)
399,290
Insurance contract liabilities
as at 31 December 2024
5,687,512
67,105
34,839
5,789,456
For the year ended 31 December 2024
186
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Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.2 Insurance contract liabilities (continued)
(1) Reconciliation of the liabilities for remaining coverage and the liabilities for incurred claims for
insurance contracts issued (continued)
Contracts not measured using the premium allocation approach (continued)
Liabilities for
remaining coverage
Excluding loss
component
Loss
component
Liabilities for
incurred claims
Total
RMB million
Insurance contract liabilities
as at 1 January 2023
4,176,033
20,169
34,873
4,231,075
Contracts measured under the modified
retrospective approach at transition
(122,628)
–
–
(122,628)
Contracts measured under the fair value
approach at transition
(20,943)
–
–
(20,943)
Other contracts
(16,727)
–
–
(16,727)
Total insurance revenue
(160,298)
–
–
(160,298)
Incurred claims and other expenses
–
(2,309)
46,371
44,062
Amortisation of insurance acquisition cash
flows
42,118
–
–
42,118
Losses and reversals of losses on onerous
contracts
–
12,595
–
12,595
Changes to liabilities for incurred claims
–
–
247
247
Total insurance service expenses
42,118
10,286
46,618
99,022
Insurance service result
(118,180)
10,286
46,618
(61,276)
Financial changes in insurance contracts
256,720
449
–
257,169
Total amounts recognised in comprehensive
income
138,540
10,735
46,618
195,893
Investment components
(209,261)
–
209,261
–
Premiums received
704,912
–
–
704,912
Insurance acquisition cash flows paid
(51,110)
–
–
(51,110)
Claims and other expenses paid
–
–
(255,365)
(255,365)
Total cash flows
653,802
–
(255,365)
398,437
Insurance contract liabilities
as at 31 December 2023
4,759,114
30,904
35,387
4,825,405
For the year ended 31 December 2024
187
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Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.2 Insurance contract liabilities (continued)
(1) Reconciliation of the liabilities for remaining coverage and the liabilities for incurred claims for
insurance contracts issued (continued)
Contracts measured using the premium allocation approach
Liabilities for
remaining coverage
Liabilities for
incurred claims
Excluding
loss
component
Loss
component
Estimation
of present
value of
future cash
flows
Risk
adjustment
for non-
financial risk
Total
RMB million
Insurance contract liabilities
as at 1 January 2024
6,251
798
26,143
578
33,770
Contracts measured under
the modified retrospective
approach at transition
(21)
–
–
–
(21)
Other contracts
(51,265)
–
–
–
(51,265)
Total insurance revenue
(51,286)
–
–
–
(51,286)
Incurred claims and other
expenses
–
(638)
36,265
515
36,142
Amortisation of insurance
acquisition cash flows
16,795
–
–
–
16,795
Losses and reversals of
losses on onerous contracts
–
1,147
–
–
1,147
Changes to liabilities for
incurred claims
–
–
(1,687)
(524)
(2,211)
Total insurance service
expenses
16,795
509
34,578
(9)
51,873
Insurance service result
(34,491)
509
34,578
(9)
587
Financial changes in insurance
contracts
1,405
–
659
16
2,080
Total amounts recognised in
comprehensive income
(33,086)
509
35,237
7
2,667
Investment components
(34,956)
–
34,956
–
–
Premiums received
83,993
–
–
–
83,993
Insurance acquisition cash flows
paid
(17,439)
–
–
–
(17,439)
Claims and other expenses paid
–
–
(67,421)
–
(67,421)
Total cash flows
66,554
–
(67,421)
–
(867)
Insurance contract liabilities
as at 31 December 2024
4,763
1,307
28,915
585
35,570
For the year ended 31 December 2024
188
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Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.2 Insurance contract liabilities (continued)
(1) Reconciliation of the liabilities for remaining coverage and the liabilities for incurred claims for
insurance contracts issued (continued)
Contracts measured using the premium allocation approach (continued)
Liabilities for
remaining coverage
Liabilities for
incurred claims
Excluding
loss
component
Loss
component
Estimation
of present
value of
future cash
flows
Risk
adjustment
for non-
financial risk
Total
RMB million
Insurance contract liabilities
as at 1 January 2023
3,411
1,778
29,959
724
35,872
Contracts measured under
the modified retrospective
approach at transition
(108)
–
–
–
(108)
Other contracts
(52,039)
–
–
–
(52,039)
Total insurance revenue
(52,147)
–
–
–
(52,147)
Incurred claims and other
expenses
–
(1,669)
39,196
518
38,045
Amortisation of insurance
acquisition cash flows
16,531
–
–
–
16,531
Losses and reversals of
losses on onerous contracts
–
689
–
–
689
Changes to liabilities for
incurred claims
–
–
(3,250)
(684)
(3,934)
Total insurance service
expenses
16,531
(980)
35,946
(166)
51,331
Insurance service result
(35,616)
(980)
35,946
(166)
(816)
Financial changes in insurance
contracts
1,297
–
674
20
1,991
Total amounts recognised in
comprehensive income
(34,319)
(980)
36,620
(146)
1,175
Investment components
(25,665)
–
25,665
–
–
Premiums received
79,681
–
–
–
79,681
Insurance acquisition cash flows
paid
(16,857)
–
–
–
(16,857)
Claims and other expenses paid
–
–
(66,101)
–
(66,101)
Total cash flows
62,824
–
(66,101)
–
(3,277)
Insurance contract liabilities
as at 31 December 2023
6,251
798
26,143
578
33,770
For the year ended 31 December 2024
189
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Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.2 Insurance contract liabilities (continued)
(2) Reconciliation of fulfilment cash flows and contractual service margin for insurance contracts issued
Contracts not measured using the premium allocation approach
Present value
of future cash
flows
Risk
adjustment for
non-financial
risk
Contractual
service margin
Total
RMB million
Insurance contract liabilities
as at 1 January 2024
4,019,340
36,928
769,137
4,825,405
Contractual service margin recognised for
the service provided
–
–
(64,126)
(64,126)
Change in the risk adjustment for
non-financial risk
–
(2,033)
–
(2,033)
Current experience adjustment
(1,739)
–
–
(1,739)
Changes relating to current service
(1,739)
(2,033)
(64,126)
(67,898)
Impact of insurance contracts initially
recognised in the period
(58,079)
1,450
57,708
1,079
Changes in estimates with adjustment to
contractual service margin
44,088
(466)
(43,622)
–
Changes in estimates without adjustment to
contractual service margin
37,444
521
–
37,965
Changes relating to future service
23,453
1,505
14,086
39,044
Changes to liabilities for incurred claims
648
2
–
650
Changes relating to past service
648
2
–
650
Insurance service result
22,362
(526)
(50,040)
(28,204)
Financial changes in insurance contracts
564,894
4,680
23,391
592,965
Total amounts recognised in comprehensive
income
587,256
4,154
(26,649)
564,761
Premiums received
747,663
–
–
747,663
Insurance acquisition cash flows paid
(47,785)
–
–
(47,785)
Claims and other expenses paid
(300,588)
–
–
(300,588)
Total cash flows
399,290
–
–
399,290
Insurance contract liabilities
as at 31 December 2024
5,005,886
41,082
742,488
5,789,456
For the year ended 31 December 2024
190
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.2 Insurance contract liabilities (continued)
(2) Reconciliation of fulfilment cash flows and contractual service margin for insurance contracts
issued (continued)
Contracts not measured using the premium allocation approach (continued)
Present value
of future cash
flows
Risk
adjustment for
non-financial
risk
Contractual
service margin
Total
RMB million
Insurance contract liabilities
as at 1 January 2023
3,413,416
34,186
783,473
4,231,075
Contractual service margin recognised for
the service provided
–
–
(65,689)
(65,689)
Change in the risk adjustment for
non-financial risk
–
(1,771)
–
(1,771)
Current experience adjustment
(6,658)
–
–
(6,658)
Changes relating to current service
(6,658)
(1,771)
(65,689)
(74,118)
Impact of insurance contracts initially
recognised in the period
(51,821)
1,249
51,093
521
Changes in estimates with adjustment to
contractual service margin
22,655
29
(22,684)
–
Changes in estimates without adjustment to
contractual service margin
11,413
661
–
12,074
Changes relating to future service
(17,753)
1,939
28,409
12,595
Changes to liabilities for incurred claims
242
5
–
247
Changes relating to past service
242
5
–
247
Insurance service result
(24,169)
173
(37,280)
(61,276)
Financial changes in insurance contracts
231,656
2,569
22,944
257,169
Total amounts recognised in comprehensive
income
207,487
2,742
(14,336)
195,893
Premiums received
704,912
–
–
704,912
Insurance acquisition cash flows paid
(51,110)
–
–
(51,110)
Claims and other expenses paid
(255,365)
–
–
(255,365)
Total cash flows
398,437
–
–
398,437
Insurance contract liabilities
as at 31 December 2023
4,019,340
36,928
769,137
4,825,405
As at December 31, 2024, the Group expects that 63.82% (as at December 31, 2023: 62.92%) of the contractual service
margin for insurance contracts not measured using the premium allocation approach will be amortised into profit over next
10 years.
For the year ended 31 December 2024
191
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.2 Insurance contract liabilities (continued)
(3) Impact of the initial recognition of the insurance contracts issued in the current period
Contracts not measured using the premium allocation approach
2024
2023
Non-onerous
contracts
Onerous
contracts
Total
Non-onerous
contracts
Onerous
contracts
Total
RMB million
RMB million
Estimates of the present value of
future cash inflows
(699,363)
(112,729)
(812,092)
(773,096)
(14,355)
(787,451)
Insurance acquisition cash flows
60,713
1,956
62,669
53,205
1,649
54,854
Others
579,656
111,688
691,344
667,559
13,217
680,776
Estimates of the present value of
future cash outflows
640,369
113,644
754,013
720,764
14,866
735,630
Risk adjustment for non-financial risk
1,286
164
1,450
1,239
10
1,249
Contractual service margin
57,708
–
57,708
51,093
–
51,093
Total
–
1,079
1,079
–
521
521
(4) Reconciliation of contractual service margin for insurance contracts not measured using the
premium allocation approach
Insurance
contracts
measured under
the modified
retrospective
approach at the
transition date
Insurance
contracts
measured under
the fair value
approach at the
transition date
Other contracts
Total
RMB million
As at 1 January 2024
557,494
136,909
74,734
769,137
Changes relating to current service
(46,347)
(11,647)
(6,132)
(64,126)
Impact of insurance contracts initially
recognised in the period
–
–
57,708
57,708
Changes in estimates with adjustment to
contractual service margin
(28,590)
1,060
(16,092)
(43,622)
Changes relating to future service
(28,590)
1,060
41,616
14,086
Financial changes in insurance contracts
16,123
4,208
3,060
23,391
As at 31 December 2024
498,680
130,530
113,278
742,488
For the year ended 31 December 2024
192
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.2 Insurance contract liabilities (continued)
(4) Reconciliation of contractual service margin for insurance contracts not measured using the
premium allocation approach (continued)
Insurance
contracts
measured under
the modified
retrospective
approach at the
transition date
Insurance
contracts
measured under
the fair value
approach at the
transition date
Other contracts
Total
RMB million
As at 1 January 2023
612,200
133,890
37,383
783,473
Changes relating to current service
(50,470)
(12,088)
(3,131)
(65,689)
Impact of insurance contracts initially
recognised in the period
–
–
51,093
51,093
Changes in estimates with adjustment to
contractual service margin
(21,347)
11,175
(12,512)
(22,684)
Changes relating to future service
(21,347)
11,175
38,581
28,409
Financial changes in insurance contracts
17,111
3,932
1,901
22,944
As at 31 December 2023
557,494
136,909
74,734
769,137
For the year ended 31 December 2024
193
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.3 Reinsurance contract assets/(liabilities)
(1) Reconciliation of remaining coverage and incurred claims for reinsurance contracts held
Contracts not measured using the premium allocation approach
Assets for remaining coverage
recovered from reinsurers
Assets for
incurred claims
recovered from
reinsurers
Excluding
loss-recovery
component
Loss-recovery
component
Total
RMB million
Reinsurance contract assets
as at 1 January 2024
15,043
2,290
7,087
24,420
Reinsurance contract liabilities
as at 1 January 2024
(142)
–
19
(123)
Net assets/(liabilities) of reinsurance contract
as at 1 January 2024
14,901
2,290
7,106
24,297
Allocation of reinsurance premiums paid
(4,690)
–
–
(4,690)
Recovery of incurred claims and other
expenses
–
(193)
3,116
2,923
Recognition and reversals of loss-recovery
component
–
(6)
–
(6)
Changes to assets for incurred claims
recovered from reinsurers
–
–
2,346
2,346
Amounts recovered from reinsurers
–
(199)
5,462
5,263
Gains or losses on reinsurance contracts
(4,690)
(199)
5,462
573
Financial changes in reinsurance contracts held
4,032
121
–
4,153
Total amounts recognised in comprehensive
income
(658)
(78)
5,462
4,726
Investment components
(1,820)
–
1,820
–
Reinsurance premiums paid
2,523
–
–
2,523
Incurred claims and other expenses recovered
from reinsurers
–
–
(3,001)
(3,001)
Total cash flows
2,523
–
(3,001)
(478)
Net assets/(liabilities) of reinsurance contract
as at 31 December 2024
14,946
2,212
11,387
28,545
Reinsurance contract assets
as at 31 December 2024
15,110
2,212
11,369
28,691
Reinsurance contract liabilities
as at 31 December 2024
(164)
–
18
(146)
For the year ended 31 December 2024
194
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.3 Reinsurance contract assets/(liabilities) (continued)
(1) Reconciliation of remaining coverage and incurred claims for reinsurance contracts held (continued)
Contracts not measured using the premium allocation approach (continued)
Assets for remaining coverage
recovered from reinsurers
Assets for
incurred claims
recovered from
reinsurers
Excluding
loss-recovery
component
Loss-recovery
component
Total
RMB million
Reinsurance contract assets
as at 1 January 2023
12,842
1,990
6,837
21,669
Reinsurance contract liabilities
as at 1 January 2023
(157)
–
22
(135)
Net assets/(liabilities) of reinsurance contract
as at 1 January 2023
12,685
1,990
6,859
21,534
Allocation of reinsurance premiums paid
(4,141)
–
–
(4,141)
Recovery of incurred claims and other
expenses
–
(196)
3,745
3,549
Recognition and reversals of loss-recovery
component
–
389
–
389
Changes to assets for incurred claims
recovered from reinsurers
–
–
696
696
Amounts recovered from reinsurers
–
193
4,441
4,634
Gains or losses on reinsurance contracts
(4,141)
193
4,441
493
Financial changes in reinsurance contracts held
1,337
107
–
1,444
Total amounts recognised in comprehensive
income
(2,804)
300
4,441
1,937
Investment components
(1,674)
–
1,674
–
Reinsurance premiums paid
6,694
–
–
6,694
Incurred claims and other expenses recovered
from reinsurers
–
–
(5,868)
(5,868)
Total cash flows
6,694
–
(5,868)
826
Net assets/(liabilities) of reinsurance contract
as at 31 December 2023
14,901
2,290
7,106
24,297
Reinsurance contract assets
as at 31 December 2023
15,043
2,290
7,087
24,420
Reinsurance contract liabilities
as at 31 December 2023
(142)
–
19
(123)
For the year ended 31 December 2024
195
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.3 Reinsurance contract assets/(liabilities) (continued)
(1) Reconciliation of remaining coverage and incurred claims for reinsurance contracts held (continued)
Contracts measured using the premium allocation approach
Assets for remaining coverage
recovered from reinsurers
Assets for incurred claims
recovered from reinsurers
Excluding
loss-recovery
component
Loss-recovery
component
Present value
of future
cash flows
Risk
adjustment for
non-financial
risk
Total
RMB million
Reinsurance contract assets
as at 1 January 2024
(402)
28
1,790
10
1,426
Reinsurance contract liabilities
as at 1 January 2024
(166)
1
100
–
(65)
Net assets/(liabilities) of
reinsurance contract
as at 1 January 2024
(568)
29
1,890
10
1,361
Allocation of reinsurance
premiums paid
(381)
–
–
–
(381)
Recovery of incurred claims and
other expenses
–
(29)
632
10
613
Recognition and reversals of
loss-recovery component
–
24
–
–
24
Changes to assets for incurred
claims recovered from
reinsurers
–
–
(442)
(9)
(451)
Amounts recovered from reinsurers
–
(5)
190
1
186
Gains or losses on reinsurance
contracts
(381)
(5)
190
1
(195)
Financial changes in reinsurance
contracts held
38
–
36
–
74
Total amounts recognised in
comprehensive income
(343)
(5)
226
1
(121)
Investment components
(1,308)
–
1,308
–
–
Reinsurance premiums paid
1,206
–
–
–
1,206
Incurred claims and other expenses
recovered from reinsurers
–
–
(413)
–
(413)
Total cash flows
1,206
–
(413)
–
793
Net assets/(liabilities) of
reinsurance contract
as at 31 December 2024
(1,013)
24
3,011
11
2,033
Reinsurance contract assets
as at 31 December 2024
(954)
23
2,967
11
2,047
Reinsurance contract liabilities
as at 31 December 2024
(59)
1
44
–
(14)
For the year ended 31 December 2024
196
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.3 Reinsurance contract assets/(liabilities) (continued)
(1) Reconciliation of remaining coverage and incurred claims for reinsurance contracts held (continued)
Contracts measured using the premium allocation approach (continued)
Assets for remaining coverage
recovered from reinsurers
Assets for incurred claims
recovered from reinsurers
Excluding
loss-recovery
component
Loss-recovery
component
Present value
of future
cash flows
Risk
adjustment for
non-financial
risk
Total
RMB million
Reinsurance contract assets
as at 1 January 2023
(399)
57
2,757
12
2,427
Reinsurance contract liabilities
as at 1 January 2023
(55)
1
29
–
(25)
Net assets/(liabilities) of
reinsurance contract
as at 1 January 2023
(454)
58
2,786
12
2,402
Allocation of reinsurance
premiums paid
(585)
–
–
–
(585)
Recovery of incurred claims and
other expenses
–
(59)
634
9
584
Recognition and reversals of
loss-recovery component
–
30
–
–
30
Changes to assets for incurred
claims recovered from
reinsurers
–
–
(799)
(11)
(810)
Amounts recovered from reinsurers
–
(29)
(165)
(2)
(196)
Gains or losses on reinsurance
contracts
(585)
(29)
(165)
(2)
(781)
Financial changes in reinsurance
contracts held
40
–
37
–
77
Total amounts recognised in
comprehensive income
(545)
(29)
(128)
(2)
(704)
Investment components
(1,283)
–
1,283
–
–
Reinsurance premiums paid
1,714
–
–
–
1,714
Incurred claims and other expenses
recovered from reinsurers
–
–
(2,051)
–
(2,051)
Total cash flows
1,714
–
(2,051)
–
(337)
Net assets/(liabilities) of
reinsurance contract
as at 31 December 2023
(568)
29
1,890
10
1,361
Reinsurance contract assets
as at 31 December 2023
(402)
28
1,790
10
1,426
Reinsurance contract liabilities
as at 31 December 2023
(166)
1
100
–
(65)
For the year ended 31 December 2024
197
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.3 Reinsurance contract assets/(liabilities) (continued)
(2) Reconciliation of fulfilment cash flows and contractual service margin for reinsurance contracts held
Contracts not measured using the premium allocation approach
Present value
of future
cash flows
Risk
adjustment for
non-financial
risk
Contractual
service margin
Total
RMB million
Reinsurance contract assets
as at 1 January 2024
27,197
7,859
(10,636)
24,420
Reinsurance contract liabilities
as at 1 January 2024
(78)
35
(80)
(123)
Net assets/(liabilities) of reinsurance contract
as at 1 January 2024
27,119
7,894
(10,716)
24,297
Contractual service margin recognised for
the service provided
–
–
980
980
Change in the risk adjustment for
non-financial risk
–
(395)
–
(395)
Current experience adjustment
(2,352)
–
–
(2,352)
Changes relating to current service
(2,352)
(395)
980
(1,767)
Impact of reinsurance contracts held initially
recognised in the period
(84)
47
37
–
Changes in estimates with adjustment to
contractual service margin
826
89
(915)
–
Changes in estimates without adjustment to
contractual service margin
(7)
1
–
(6)
Changes relating to future service
735
137
(878)
(6)
Changes to assets for incurred claims
recovered from reinsurers
2,346
–
–
2,346
Changes relating to past service
2,346
–
–
2,346
Gains or losses on reinsurance contracts held
729
(258)
102
573
Financial changes in reinsurance contracts held
3,512
1,174
(533)
4,153
Total amounts recognised in
comprehensive income
4,241
916
(431)
4,726
Reinsurance premiums paid
2,523
–
–
2,523
Incurred claims and other expenses recovered
from reinsurers
(3,001)
–
–
(3,001)
Total cash flows
(478)
–
–
(478)
Net assets/(liabilities) of reinsurance contract
as at 31 December 2024
30,882
8,810
(11,147)
28,545
Reinsurance contract assets
as at 31 December 2024
31,250
8,774
(11,333)
28,691
Reinsurance contract liabilities
as at 31 December 2024
(368)
36
186
(146)
For the year ended 31 December 2024
198
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.3 Reinsurance contract assets/(liabilities) (continued)
(2) Reconciliation of fulfilment cash flows and contractual service margin for reinsurance contracts
held (continued)
Contracts not measured using the premium allocation approach (continued)
Present value
of future
cash flows
Risk
adjustment for
non-financial
risk
Contractual
service margin
Total
RMB million
Reinsurance contract assets
as at 1 January 2023
27,998
7,870
(14,199)
21,669
Reinsurance contract liabilities
as at 1 January 2023
(64)
60
(131)
(135)
Net assets/(liabilities) of reinsurance contract
as at 1 January 2023
27,934
7,930
(14,330)
21,534
Contractual service margin recognised for
the service provided
–
–
857
857
Change in the risk adjustment for
non-financial risk
–
(352)
–
(352)
Current experience adjustment
(1,097)
–
–
(1,097)
Changes relating to current service
(1,097)
(352)
857
(592)
Impact of reinsurance contracts held initially
recognised in the period
(9)
36
(27)
–
Changes in estimates with adjustment to
contractual service margin
(3,095)
(302)
3,397
–
Changes in estimates without adjustment to
contractual service margin
364
25
–
389
Changes relating to future service
(2,740)
(241)
3,370
389
Changes to assets for incurred claims
recovered from reinsurers
696
–
–
696
Changes relating to past service
696
–
–
696
Gains or losses on reinsurance contracts held
(3,141)
(593)
4,227
493
Financial changes in reinsurance contracts held
1,500
557
(613)
1,444
Total amounts recognised in
comprehensive income
(1,641)
(36)
3,614
1,937
Reinsurance premiums paid
6,694
–
–
6,694
Incurred claims and other expenses recovered
from reinsurers
(5,868)
–
–
(5,868)
Total cash flows
826
–
–
826
Net assets/(liabilities) of reinsurance contract
as at 31 December 2023
27,119
7,894
(10,716)
24,297
Reinsurance contract assets
as at 31 December 2023
27,197
7,859
(10,636)
24,420
Reinsurance contract liabilities
as at 31 December 2023
(78)
35
(80)
(123)
As of December 31, 2024, the Group expects that 56.49% (as at December 31, 2023: 56.80%) of the contractual service
margin for reinsurance contracts not measured using the premium allocation approach will be amortised into profit over
the next 10 years.
For the year ended 31 December 2024
199
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.3 Reinsurance contract assets/(liabilities) (continued)
(3) Impact of the initial recognition of the reinsurance contracts in the current period
Contracts not measured using the premium allocation approach
For the year ended 31 December
2024
2023
Reinsurance
contracts
with a
net gain
Reinsurance
contracts
with a
net cost
Total
Reinsurance
contracts
with a
net gain
Reinsurance
contracts
with a
net cost
Total
RMB million
RMB million
Estimates of the present value of
future cash inflows
639
269
908
560
191
751
Estimates of the present value of
future cash outflows
(570)
(422)
(992)
(551)
(209)
(760)
Risk adjustment for non-financial risk
33
14
47
27
9
36
Contractual service margin
(102)
139
37
(36)
9
(27)
Total
–
–
–
–
–
–
(4) Reconciliation of contractual service margin for reinsurance contracts held not measured using
the premium allocation approach
Reinsurance
contracts held
measured under
the modified
retrospective
approach at the
transition date
Other contracts
Total
RMB million
As at 1 January 2024
(10,585)
(131)
(10,716)
Changes relating to current service
1,003
(23)
980
Impact of reinsurance contracts initially
recognised in the period
–
37
37
Changes in estimates with adjustment to
contractual service margin
(1,159)
244
(915)
Changes relating to future service
(1,159)
281
(878)
Financial changes in reinsurance contracts held
(529)
(4)
(533)
As at 31 December 2024
(11,270)
123
(11,147)
For the year ended 31 December 2024
200
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
14 INSURANCE CONTRACTS (continued)
14.3 Reinsurance contract assets/(liabilities) (continued)
(4) Reconciliation of contractual service margin for reinsurance contracts held not measured using
the premium allocation approach (continued)
Reinsurance
contracts held
measured under
the modified
retrospective
approach at the
transition date
Other contracts
Total
RMB million
As at 1 January 2023
(13,806)
(524)
(14,330)
Changes relating to current service
857
–
857
Impact of reinsurance contracts initially
recognised in the period
–
(27)
(27)
Changes in estimates with adjustment to
contractual service margin
2,962
435
3,397
Changes relating to future service
2,962
408
3,370
Financial changes in reinsurance contracts held
(598)
(15)
(613)
As at 31 December 2023
(10,585)
(131)
(10,716)
15 INTEREST-BEARING LOANS AND OTHER BORROWINGS
Maturity date
Interest rate
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Guaranteed loans
8 September 2026
EURIBOR+2.8%
729
773
Guaranteed loans
8 September 2026
EURIBOR+2.8%
2,493
2,605
Credit loans
16 May 2025
3.08%
2,511
2,495
Credit loans
22 September 2025
6M SOFR+1.15%
6,960
6,984
Credit loans
16 April 2025
12%
65
–
Total
12,758
12,857
For the year ended 31 December 2024
201
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
16 BONDS PAYABLE
As at 31 December 2024, all bonds payable were the bonds for capital replenishment (the “Bond”) with a total carrying
amount of RMB35,194 million (as at 31 December 2023: RMB36,166 million), and the fair value of RMB35,387 million (as
at 31 December 2023: RMB36,278 million). The fair value of the Bond was classified as level 2 in the fair value hierarchy.
The following table presents the par value of the bonds payable:
Issue date
Maturity date
Interest rate p.a.
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
22 March 2019
22 March 2029
4.28%
–
35,000
24 September 2024
24 September 2034
2.15%
35,000
–
Total
35,000
35,000
On 20 March 2019, the Company issued a bond in the national inter-bank bond market at a principal amount of RMB35
billion, and completed the issuance on 22 March 2019. The bond has a 10-year maturity and a fixed coupon rate of 4.28%
per annum. The Company has a conditional right to redeem the bonds at the end of the fifth year. If the Company does not
redeem the bonds at the end of the fifth year, the coupon rate per annum for the remaining 5 years will be raised to 5.28%.
On 18 February 2024, the Company issued the “Notice of Exercise of Redemption Option of China Life Insurance Company
Limited 2019 Bonds for Capital Replenishment (Bond Pass-Through)” and on 22 March 2024, the Company redeemed this
Bond in full.
On 24 September 2024, the Company issued a bond in the national inter-bank bond market at a principal amount of RMB35
billion, and completed the issuance on 26 September 2024. The bond has a 10-year maturity and a fixed coupon rate of
2.15% per annum. The Company has a conditional right to redeem the bonds at the end of the fifth year. If the Company
does not redeem the bonds at the end of the fifth year, the coupon rate per annum for the remaining 5 years will be raised
to 3.15%.
17 OTHER LIABILITIES
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Payable to the third-party holders of consolidated structured entities
96,428
84,295
Salary and welfare payable
10,161
8,404
Brokerage and commission payable
5,080
4,780
Payable to constructors
2,502
2,189
Agency deposits
1,056
1,107
Tax payable
1,380
834
Stock appreciation rights (Note 29)
421
181
Others
23,903
24,960
Total
140,931
126,750
For the year ended 31 December 2024
202
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Notes to the Consolidated Financial Statements (continued)
18 FINANCIAL ASSETS SOLD UNDER AGREEMENTS TO REPURCHASE
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Interbank markets
89,390
150,028
Stock exchange markets
62,174
66,823
Total
151,564
216,851
Maturing:
Within 30 days
151,561
216,579
More than 30 days within 90 days
3
272
Total
151,564
216,851
As at 31 December 2024, bonds with a carrying amount of RMB117,422 million (as at 31 December 2023: RMB182,528
million) were pledged as collateral for financial assets sold under agreements to repurchase resulting from repurchase
transactions entered into by the Group in the interbank markets.
For debt repurchase transactions through the stock exchange, the Group is required to deposit certain exchange-traded
bonds into a collateral pool with fair value converted at a standard rate pursuant to the stock exchange’s regulation which
should be no less than the balance of the related repurchase transaction. As at 31 December 2024, the carrying amount
of securities deposited in the collateral pool was RMB295,843 million (as at 31 December 2023: RMB310,320 million). The
collateral is restricted from trading during the period of the repurchase transaction.
19 STATUTORY INSURANCE FUND
Since January 1, 2023, the Group has paid the Insurance Protection Fund in accordance with the “Measures for the
Administration of the Insurance Security Fund” (Issued by Order no.7 [2022] Former CBIRC, the Ministry of Finance of the
People’s Republic of China and the People’s Bank of China) and the “Notice of the General Office of the China Banking
and Insurance Regulatory Commission on Matters related to the Payment of Insurance Protection Fund” (No. 2 [2023] of
the General Office of the China Banking and Insurance Regulatory Commission).
The fund contribution is equal to the product of the business income and the fund rate, which is composed of the base
rate and the risk differential rate, and is equal to the sum of the base rate and the risk differential rate.
(1) Benchmark Interest Rate
• Short-term health insurance and accident insurance shall be paid at 0.8% of business income;
• Life insurance, long-term health insurance and annuity insurance shall be paid at 0.3% of business income; Among them,
investment-linked insurance shall be paid at 0.05% of business income.
(2) Risk differential rate
The risk differential rate is based on the results of the comprehensive solvency risk rating. When the rating is A(including
AAA, AA and A), B(including BBB, BB and B), C and D, the applicable rate is -0.02%, 0%, 0.02% and 0.04%, respectively.
When the life insurance protection fund reaches 1% of the total assets of the industry, payment will be suspended. The
total assets of the industry shall be subject to the data determined by the State Financial Supervision and Regulation.
For the year ended 31 December 2024
203
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Notes to the Consolidated Financial Statements (continued)
20 INSURANCE REVENUE
For the year ended 31 December
2024
2023
RMB million
RMB million
Contracts not measured using the premium allocation approach
Amounts relating to the changes in the liabilities for remaining coverage
Expected incurred claims and other expenses
45,571
50,712
Change in the risk adjustment for non-financial risk
2,011
1,779
Contractual service margin recognised for the service provided
64,126
65,689
Amortisation of insurance acquisition cash flows
45,167
42,118
Sub-total
156,875
160,298
Contracts measured using the premium allocation approach
51,286
52,147
Total
208,161
212,445
21 INTEREST INCOME
For the year ended 31 December
2024
2023
RMB million
RMB million
Financial assets measured at amortised cost (i)
26,332
33,908
Investment in debt instruments at fair value through
other comprehensive income
94,626
89,086
Total
120,958
122,994
(i)
Interest income from financial assets measured at amortised cost mainly includes interest income arising from cash and cash equivalents, financial assets
purchased under agreements to resell, investment in debt instruments at amortised cost and term deposits.
For the year ended 31 December 2024
204
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Notes to the Consolidated Financial Statements (continued)
22 INVESTMENT INCOME
For the year ended 31 December
2024
2023
RMB million
RMB million
Dividends and interest income
Dividends
Financial assets at fair value through profit or loss
27,607
23,893
Investment in equity instruments at fair value through
other comprehensive income
6,882
5,224
Interest income
Financial assets at fair value through profit or loss
28,057
25,574
Sub-total
62,546
54,691
Realised gains/(losses)
Financial assets at fair value through profit or loss
(28,443)
(41,676)
Investment in debt instruments at fair value through
other comprehensive income
24,166
10,396
Investment in associates and joint ventures
32
–
Sub-total
(4,245)
(31,280)
Unrealised gains/(losses)
Financial assets at fair value through profit or loss
119,063
(33,074)
Financial liabilities at fair value through profit or loss
(663)
129
Stock appreciation rights
(240)
159
Sub-total
118,160
(32,786)
Total
176,461
(9,375)
23 INSURANCE SERVICE EXPENSES
For the year ended 31 December
2024
2023
RMB million
RMB million
Contracts not measured using the premium allocation approach
Incurred claims and other expenses
43,810
44,062
Amortisation of insurance acquisition cash flows
45,167
42,118
Losses and reversals of losses on onerous contracts
39,044
12,595
Changes to liabilities for incurred claims
650
247
Sub-total
128,671
99,022
Contracts measured using the premium allocation approach
51,873
51,331
Total
180,544
150,353
For the year ended 31 December 2024
205
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
24 NET INVESTMENT RETURN AND FINANCIAL CHANGES IN INSURANCE
CONTRACTS
For the year ended 31 December
Net investment returns
2024
2023
RMB million
RMB million
Returns on investment recognised in profit or loss
Interest income
120,958
122,994
Investment income
176,461
(9,375)
Investment income from associates and joint ventures
12,077
8,079
Net expected credit losses
207
1,217
Other impairment losses
(1,611)
–
Sub-total
308,092
122,915
Returns on investment recognised in other comprehensive income
305,932
100,909
Total
614,024
223,824
For the year ended 31 December
Financial changes in insurance contracts
2024
2023
RMB million
RMB million
Changes in fair value of underlying items of insurance contracts with
direct participation features
193,129
66,193
Interest expense
101,019
88,070
Changes in interest rates and other financial assumptions
300,897
104,897
Total financial changes in insurance contracts
595,045
259,160
Recognised in profit or loss
209,952
127,923
Recognised in other comprehensive income
385,093
131,237
Total
595,045
259,160
25 EXPECTED CREDIT LOSSES
For the year ended 31 December
2024
2023
RMB million
RMB million
Investment in debt instruments at fair value through
other comprehensive income
(456)
(1,107)
Investment in debt instruments at amortised cost
167
(59)
Term deposits
24
(115)
Statutory deposits – restricted
1
(1)
Other receivables
57
65
Total
(207)
(1,217)
For the year ended 31 December 2024
206
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
26 PROFIT BEFORE INCOME TAX
Profit before income tax is stated after charging the following:
For the year ended 31 December
2024
2023
RMB million
RMB million
Salary and bonus
18,357
15,105
Social security and other benefits
8,021
7,471
Depreciation and amortisation
5,029
5,016
Remuneration in respect of audit services provided by auditors
54
65
Others
24,760
27,013
Less: Expenses directly attributable to insurance contracts
Insurance acquisition cash flows recognised in liabilities for
remaining coverage
(19,674)
(19,151)
Amounts recognised in insurance service expenses
(18,184)
(17,388)
18,363
18,131
The disclosure above does not include underwriting and policy acquisition costs in the fulfilment cash flows.
27 TAXATION
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against
current tax liabilities and when the deferred income tax relates to the same tax authority.
(a) The amount of taxation charged to net profit represents:
For the year ended 31 December
2024
2023
RMB million
RMB million
Current taxation – Enterprise income tax
1,566
1,241
Deferred taxation
4,707
(4,212)
Taxation charges
6,273
(2,971)
For the year ended 31 December 2024
207
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Notes to the Consolidated Financial Statements (continued)
27 TAXATION (continued)
(b) The reconciliation between the Group’s effective tax rate and the statutory tax rate of 25% in the PRC (2023: same)
is as follows:
For the year ended 31 December
2024
2023
RMB million
RMB million
Profit before income tax
115,213
44,576
Income tax computed at the statutory tax rate
28,803
11,144
Effect of utilising previously unrecognised deferred tax assets
attributable to deductible tax losses from prior periods
(4,291)
–
Adjustment on current income tax of previous period
–
(10)
Non-taxable income (i)
(19,388)
(18,522)
Expenses not deductible for tax purposes
610
171
Deductible tax losses for which no deferred tax asset was recognised
77
4,034
Others
462
212
Income tax at the effective tax rate
6,273
(2,971)
(i)
Non-taxable income mainly includes interest income from government bonds, and dividend income from applicable equity investments.
(ii) The amendments to IAS 12 introduce a temporary mandatory exemption from the recognition and disclosure of deferred taxes arising from the implementation
of the Pillar Two Model Rules published by the Organization for Economic Co-operation and Development. According to the rules of Pillar Two legislation,
low-tax jurisdictions with effective tax rate below 15% may have a top-up tax impact. There are differences in the computation of effective tax rate
between Pillar Two legislation and IFRS Accounting Standards. The Group evaluates that the Pillar Two legislation has no significant impact on the Group’s
consolidated financial statements for the year 2024.
(c) As at 31 December 2024 and 31 December 2023, the amounts of deferred tax assets and liabilities were as follows:
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Deferred tax assets
187,950
86,971
Deferred tax liabilities
(148,071)
(62,540)
Net deferred tax assets
40,026
24,431
Net deferred tax liabilities
(147)
–
For the year ended 31 December 2024
208
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
27 TAXATION (continued)
(c) As at 31 December 2024 and 31 December 2023, the amounts of deferred tax assets and liabilities were as follows
(continued):
As at 31 December 2024, the deferred taxation was calculated in full on temporary differences under the statement of
financial position liability method using the principal tax rate of 25% (as at 31 December 2023: same). The movements in
deferred tax assets and liabilities during the year are as follows:
As at
1 January
2024
Recognised
in profit or
loss in the
current year
Recognised
in other
comprehensive
income in the
current year
As at
31 December
2024
RMB million
Provision for asset impairment
1,909
168
126
2,203
Accrued payroll
49,671
(2,261)
95,384
142,794
Insurance contract liabilities
1,863
408
–
2,271
Deductible losses
12,355
26,099
–
38,454
Changes in fair value of the financial
assets at fair value through profit or loss
19,503
(29,823)
–
(10,320)
Changes in fair value of the financial
assets at fair value through other
comprehensive income
(62,540)
–
(74,788)
(137,328)
Others
1,670
702
(567)
1,805
Net value
24,431
(4,707)
20,155
39,879
As at
1 January
2023
Recognised
in profit or
loss in the
current year
Recognised
in other
comprehensive
income in the
current year
As at
31 December
2023
RMB million
Provision for asset impairment
1,935
(324)
298
1,909
Accrued payroll
26,545
(9,457)
32,583
49,671
Insurance contract liabilities
2,714
(851)
–
1,863
Deductible losses
7,185
5,170
–
12,355
Changes in fair value of the financial
assets at fair value through profit or loss
10,356
9,147
–
19,503
Changes in fair value of the financial
assets at fair value through other
comprehensive income
(37,052)
–
(25,488)
(62,540)
Others
1,147
527
(4)
1,670
Net value
12,830
4,212
7,389
24,431
Unrecognised deductible tax losses of the Group amounted to RMB2,248 million as at 31 December 2024 (as at 31 December
2023: RMB7,116 million), expected to mature within 5 years.
For the year ended 31 December 2024
209
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
28 EARNINGS PER SHARE
There is no difference between the basic and diluted earnings per share. The basic and diluted earnings per share for the
year ended 31 December 2024 are calculated based on the net profit for the year attributable to ordinary equity holders of
the Company and the weighted average of 28,264,705,000 ordinary shares (2023: same).
29 STOCK APPRECIATION RIGHTS
The Board of Directors of the Company approved, on 5 January 2006, an award of stock appreciation rights of 4.05 million
units and on 21 August 2006, another award of stock appreciation rights of 53.22 million units to eligible employees. The
exercise prices of the two awards were HKD5.33 and HKD6.83, respectively, the average closing price of shares in the
five trading days prior to 1 July 2005 and 1 January 2006, the dates for vesting and exercise price setting purposes of this
award. Upon the exercise of stock appreciation rights, exercising recipients will receive payments in RMB, subject to any
withholding tax, equal to the number of stock appreciation rights exercised times the difference between the exercise price
and market price of the H shares at the time of exercise.
Stock appreciation rights have been awarded in units, with each unit representing the value of one H share. No shares
of common stock will be issued under the stock appreciation rights plan. According to the Company’s plan, all stock
appreciation rights will have an exercise period of five years from the date of award and will not be exercisable before the
fourth anniversary of the date of award unless specific market or other conditions have been met. On 26 February 2010,
the Board of Directors of the Company approved the Proposal on Extension of the Effective Period of Stock Appreciation
Rights to extend the exercise period of all stock appreciation rights, which is also subject to government policy.
As at 31 December 2024, there were 55.01 million units outstanding and exercisable (as at 31 December 2023: same). As
at 31 December 2024, the amount of intrinsic value for the vested stock appreciation rights was RMB408 million (as at 31
December 2023: RMB168 million).
The fair value of the stock appreciation rights is estimated at each reporting date using lattice-based option valuation models
based on expected volatility from 27% to 53%, an expected dividend yield of no higher than 5.05% and a risk-free interest
rate ranging from 3.17% to 4.20%.
The Company recognised a loss of RMB240 million in the net fair value through profit or loss in the consolidated comprehensive
income representing the fair value change of the rights during the year ended 31 December 2024 (2023: The Company
recognised a gain of RMB159 million in the net fair value through profit or loss in the consolidated comprehensive income
representing the fair value change of the rights). RMB408 million and RMB13 million were included in salary and staff welfare
payable included under other liabilities for the units not exercised and exercised but not paid as at 31 December 2024(as
at 31 December 2023: RMB168 million and RMB13 million), respectively. There was no unrecognised compensation cost
for the stock appreciation rights as at 31 December 2024 (as at 31 December 2023: same).
For the year ended 31 December 2024
210
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
30 DIVIDENDS
Pursuant to the shareholders’ approval at the Annual General Meeting on 27 June 2024, a final dividend of RMB0.43
(inclusive of tax) per ordinary share totalling RMB12,154 million in the respect of the year ended 31 December 2023 was
declared and paid in 2024. The dividend has been reflected in the consolidated financial statements for the year ended 31
December 2024.
Pursuant to the shareholders’ approval at the Extraordinary General Meeting on 30 October 2024, an interim dividend of
RMB0.20 (inclusive of tax) per ordinary share totalling RMB5,653 million in the respect of the six months ended 30 June
2024 was declared and paid in 2024. The dividend has been reflected in the consolidated financial statements for the year
ended 31 December 2024.
Pursuant to a resolution passed at the meeting of the Board of Directors on 26 March 2025, a final dividend of RMB0.45
(inclusive of tax) per ordinary share totalling approximately RMB12,719 million for the year ended 31 December 2024 was
proposed for shareholders’ approval at the forthcoming Annual General Meeting. The dividend has not been recorded in
the consolidated financial statements for the year ended 31 December 2024.
31 SIGNIFICANT RELATED PARTY TRANSACTIONS
(a) Related parties with control relationship
Information of the parent company is as follows:
Name
Location of
registration
Principal business
Relationship with
the Company
Nature of
ownership
Legal
representative
CLIC
Beijing, China
Insurance services including receipt of
premiums and payment of benefits in respect
of the in-force life, health, accident and other
types of personal insurance business, and the
reinsurance business; holding or investing in
domestic and overseas insurance companies
or other financial insurance institutions; fund
management business permitted by national
laws and regulations or approved by the State
Council of the People’s Republic of China;
and other businesses approved by insurance
regulatory agencies.
Immediate and
ultimate holding
company
State-owned
Cai Xiliang
For the year ended 31 December 2024
211
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
31 SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)
(b) Subsidiaries
(i) The table below presents the basic information of the Company’s subsidiaries as at 31 December
2024:
Name
Place of
incorporation
and operation
Percentage
of equity
interest held
Registered
capital
Principal
activities
China Life Asset Management Company Limited
(“AMC”) (i)
PRC
60.00% directly
RMB4,000
million
Asset
management
China Life Pension Company Limited
(“Pension Company”) (i)
PRC
74.27% directly
and indirectly
RMB3,400
million
Pension and
annuity
China Life Franklin Asset Management Company Limited
Hong Kong, PRC
50.00%
indirectly
Not applicable
Asset
management
China Life (Suzhou) Pension and Retirement Investment
Company Limited (i)
PRC
100.00% directly
and indirectly
RMB3,236
million
Investment in
retirement
properties
China Life AMP Asset Management Co., Ltd. (i)
PRC
85.03%
indirectly
RMB1,288
million
Fund
management
Golden Phoenix Tree Limited
Hong Kong, PRC
100.00% directly
Not applicable
Investment
King Phoenix Tree Limited
The British
Jersey Island
100.00%
indirectly
Not applicable
Investment
China Life Wealth Management Company Limited (i)
PRC
100.00%
indirectly
RMB200 million
Asset
management
Shanghai Rui Chong Investment Co., Limited
(“Rui Chong Company”) (i)
PRC
100.00% directly
RMB5,380
million
Investment
New Aldgate Limited
Hong Kong, PRC
100.00% directly
Not applicable
Investment
Glorious Fortune Forever Limited
Hong Kong, PRC
100.00% directly
Not applicable
Investment
CL Hotel Investor, L.P.
USA
100.00% directly
Not applicable
Investment
Golden Bamboo Limited
The British
Virgin Islands
100.00% directly
Not applicable
Investment
Sunny Bamboo Limited
The British
Virgin Islands
100.00% directly
Not applicable
Investment
Fortune Bamboo Limited
The British
Virgin Islands
100.00% directly
Not applicable
Investment
China Century Core Fund Limited
The British
Cayman
Islands
100.00%
indirectly
Not applicable
Investment
China Life (Beijing) Health Management Co., Limited (i)
PRC
100.00% directly
RMB1,530
million
Health
management
For the year ended 31 December 2024
212
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
Name
Place of
incorporation
and operation
Percentage
of equity
interest held
Registered
capital
Principal
activities
China Life Franklin (Shenzhen) Private Equity Investment
Fund Management Co., Limited (i)
PRC
100.00%
indirectly
RMB100 million
Investment
Ningbo Meishan Bonded Port Area Guo Yang Guo Sheng
Investment Partnership (ii)
PRC
89.997% directly
Not applicable
Investment
New Capital Wisdom Limited
The British
Virgin Islands
100.00%
indirectly
Not applicable
Investment
New Fortune Wisdom Limited
The British
Virgin Islands
100.00%
indirectly
Not applicable
Investment
Wisdom Forever Limited Partnership
The British
Cayman
Islands
100.00%
indirectly
Not applicable
Investment
Ningbo Meishan Bonded Port Area Bai Ning Investment
Partnership (Limited Partnership) (ii)
PRC
99.98% directly
Not applicable
Investment
Shanghai Yuan Shu Yuan Pin Investment
Management Partnership (Limited Partnership)
(“Yuan Shu Yuan Pin”) (ii)
PRC
99.98% directly
Not applicable
Investment
Shanghai Yuan Shu Yuan Jiu Investment
Management Partnership (Limited Partnership)
(“Yuan Shu Yuan Jiu”) (ii)
PRC
99.98% directly
Not applicable
Investment
Dalian Hope Building Company Ltd. (i)
PRC
100.00%
indirectly
RMB484 million
Investment
Shanghai Wansheng Industry Partnership (Limited
Partnership) (ii)
PRC
99.98% directly
Not applicable
Investment
Wuhu Yuanxiang Tianfu Investment
Management Partnership (Limited Partnership)
(“Yuanxiang Tianfu”) (ii)
PRC
99.98% directly
Not applicable
Investment
Wuhu Yuanxiang Tianyi Investment
Management Partnership (Limited Partnership)
(“Yuanxiang Tianyi”) (ii)
PRC
99.98% directly
Not applicable
Investment
Xi’an Shengyi Jingsheng Real Estate Co., Ltd. (i)
PRC
100.00%
indirectly
RMB831 million
Investment
Global Investors U.S. Investments I, LLC
USA
99.99% directly
Not applicable
Investment
China Life Guangde (Tianjin) Equity Investment Fund
Partnership (Limited Partnership) (“CL Guang De”) (ii)
PRC
99.95% directly
Not applicable
Investment
31 SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)
(b) Subsidiaries (continued)
(i) The table below presents the basic information of the Company’s subsidiaries as at 31 December
2024 (continued):
For the year ended 31 December 2024
213
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
Name
Place of
incorporation
and operation
Percentage
of equity
interest held
Registered
capital
Principal
activities
Beijing China Life Pension Industry Investment Fund
(Limited Partnership) (“CL Pension Industry”) (ii)
PRC
99.90% directly
Not applicable
Investment
China Life Qihang Phase I (Tianjin) Equity Investment
Fund Partnership (Limited Partnership)
(“CL Qihang Fund l”) (ii)
PRC
99.99% directly
Not applicable
Investment
Xing Wan (Tianjin) Enterprise Management Partnership
(Limited Partnership) (ii)
PRC
99.98%
indirectly
Not applicable
Investment
China Life Nianfeng Insurance Agency Co., Ltd. (i)
PRC
90.81% directly
RMB544 million
Insurance agent
China Life (Hangzhou) Hotel Co., Ltd. (i)
PRC
99.99%
indirectly
RMB65 million
Hotel
management
China Life Jiayuan (Xiamen) Health Management
Company Limited (i)
PRC
99.99%
indirectly
RMB1,500
million
Health
consultation
China Life (Tianjin) Pension & Retirement Investment
Company Limited (i)
PRC
99.99%
indirectly
RMB1,551
million
Investment
management
China Life (Qingdao) Health Management Co., Ltd. (i)
PRC
99.50%
indirectly
RMB211 million
Health
management
China Life Qinhuangdao Health and Elderly Care Service
Co., Ltd. (i)
PRC
100.00%
indirectly
RMB33 million
Elderly care
services
Zhuhai Xinwan Real Estate Co., Ltd. (i)
PRC
100.00%
indirectly
RMB6,800
million
Real estate
management
China Life (Shenzhen) Health and Elderly Care Service
Co., Ltd. (iii)
PRC
100.00%
indirectly
RMB123 million
Elderly care
services
China Life (Beijing) Health and Elderly Care Service
Co., Ltd. (iii)
PRC
99.99%
indirectly
RMB1,170
million
Elderly care
services
China Life (Hangzhou) Health and Elderly Care Service
Co., Ltd. (iii)
PRC
100.00%
indirectly
RMB151 million
Elderly care
services
Zhuhai Linghang Kunpeng Equity Investment Fund
Partnership (Limited Partnership) (iii)
PRC
99.913%
indirectly
Not applicable
Investment
management
China Life (Kunming) Health and Elderly Care Service
Co., Ltd. (iii)
PRC
100.00%
indirectly
RMB107 million
Elderly care
services
Beijing Xinyi Equity Investment Fund Partnership
Enterprise (Limited Partnership) (iii)
PRC
89.7197%
indirectly
Not applicable
Investment
management
Beijing Yongsheng Enterprise Management Partnership
(Limited Partnership) (iii)
PRC
99.9965%
indirectly
Not applicable
management
consulting
(i)
The above subsidiaries are registered as limited companies in accordance of the Company Law of the People’s Republic of China.
(ii) The above subsidiaries are registered as limited liability partnerships in accordance of the Law of the People’s Republic of China on Partnerships.
(iii) Newly established subsidiary in 2024.
Non-controlling interests in subsidiaries are not significant to the Company.
31 SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)
(b) Subsidiaries (continued)
(i) The table below presents the basic information of the Company’s subsidiaries as at 31 December
2024 (continued):
For the year ended 31 December 2024
214
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
31 SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)
(b) Subsidiaries (continued)
(ii) The table below presents the basic information of the Company’s major consolidated structured
entities as at 31 December 2024:
Name
Percentage of
shares held
Trust/investments
received
Principal
activities
CL Asset-Yuanliu No.1 Insurance Asset Management Product
63.20% directly
RMB106,936million
Investment
management
CL Asset-Yuanliu No.2 Insurance Asset Management Product
61.10% directly
RMB30,384 million
Investment
management
CL Asset-Yuanliu No.3 Insurance Asset Management Product
66.89% directly
and indirectly
RMB26,623 million
Investment
management
China Life-Yunnan Guoqi Reform And Development Equity
Investment Plan I
100.00% directly
RMB17,000 million
Investment
management
China Life- Hufa No.1 Equity
99.15% directly
RMB11,122million
Investment
management
CL Investment-China Eastern Airlines Group Equity
100.00% directly
RMB11,000 million
Investment
management
Bai Rui Heng Yi No.817 Collective Fund Trust Scheme
(Zhong Guo Guo Xin)
90.00% directly
and indirectly
RMB10,000 million
Investment
management
Guang Da • Hui Ying No. 8 Collective Fund
89.00% directly
RMB10,000 million
Investment
management
Shan Guo Tou • Jing Tou Corporate Trust Loan Collective Funds
Trust Scheme
98.40% directly
RMB10,000 million
Investment
management
China Life-China Hua Neng Debt-to-Equity Swap
100.00% directly
RMB10,000 million
Investment
management
Jiao Yin Guo Xin • China Aluminium Co., Ltd. Supply-side Reform
Collective Fund Trust Scheme
99.99% directly
RMB10,000 million
Investment
management
Jiao Yin Guo Xin • Jing Tou Corporate Collective Funds
91.99% directly
RMB9,964 million
Investment
management
Zhong Hang Trust Fund • Tian Qi [2020] No.372 China
Eastern Airlines Equity Instrument Investment Collective
Fund Trust Scheme
99.99% directly
RMB9,000 million
Investment
management
China Life Security Anji Pure Bond Semi-Annual Fixed Open
Bond Fund (Initiative Type)
93.26% directly
and indirectly
RMB8,841 million
Investment
management
Jiang Su Trust • Xin Bao Sheng No.144 (Jing Tou)
84.00% directly
RMB8,000 million
Investment
management
Zhong Hang Trust Fund • Tian Qi 21A No.155 China Eastern Airlines
Perpetual Bonds Investment Collective Fund Trust Scheme
99.38% directly
RMB8,000 million
Investment
management
For the year ended 31 December 2024
215
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
31 SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)
(c) Other related parties
Significant related parties
Relationship with the Company
China Life Insurance (Overseas) Company Limited (“CL Overseas”)
Under common control of CLIC
China Life Investment Management Company Limited (Formerly known as
“China Life Investment Holding Company Limited”) (“CLI”)
Under common control of CLIC
China Life Enterprise Annuity Fund (“EAP”)
A pension fund jointly set up by the
Company and others
China Life Property & Casualty Insurance Company Limited (“CLP&C”)
An associate of the Company
The major associates and joint ventures of the basic and important information related to see note 10.
(d) Transactions with significant related parties
For the year ended 31 December
Transactions with CLIC and its subsidiaries
Notes
2024
2023
RMB million
RMB million
CLIC
Distribution of dividends from the Company and AMC to CLIC
12,577
9,806
Policy management fee from CLIC
(i)
457
463
Asset management fee from CLIC
110
141
CLP&C
Agency fee from CLP&C
(i)
1,730
1,706
Dividends from CLP&C
167
80
Rental and a service fee from CLP&C
104
99
Asset management fee from CLIC
50
42
CLI
Payment of asset management fee to CLI
(i)
566
542
CL Overseas
Asset management fee from CL Overseas
80
102
For the year ended 31 December
Transactions with associates and joint ventures
2024
2023
RMB million
RMB million
CGB
Interest on deposits from CGB
761
2,453
Dividends from CGB (Note 10)
765
742
Commission expenses charged by CGB
140
252
Rental fee from CGB
163
163
Insurance Premiums
96
8
Other associates and joint ventures
Dividends from other associates and joint ventures (Note 10)
4,396
4,032
Transaction with EAP
Contribution to EAP
1,394
1,051
For the year ended 31 December 2024
216
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
31 SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)
(d) Transactions with significant related parties (continued)
For the year ended 31 December
Transactions between subsidiaries and the Company
2024
2023
Note
RMB million
RMB million
Payment of asset management fee
Payment to AMC
(i)
3,701
3,265
Dividends from subsidiaries
Dividends from AMC
589
483
Dividends from Pension Company
171
248
Rental received
Rental from Pension Company
77
75
Capital increase in subsidiaries
Capital contribution to Pension Industry Fund
1,532
1,595
Capital contribution to CL Guangde
166
120
Capital contribution to CL Qihang Fund I
2,931
57
Capital reduction of subsidiaries
Capital reduction to Rui Chong Company
720
–
Capital reduction to Yuan Shu Yuan Jiu
35
35
Capital reduction to Yuan Shu Yuan Pin
35
35
Capital reduction to Yuanxiang Tianfu
22
23
Capital reduction to Yuanxiang Tianyi
22
23
Transactions between the consolidated
structured entities and the Company
Distribution of profits from the consolidated
structured entities to the Company
22,488
20,616
(i)
These transactions constitute continuing connected transactions which are subject to reporting and announcement requirements but are exempt from
independent shareholders’ approval requirements under Chapter 14A of the Listing Rules. The Company has complied with the disclosure requirements
in accordance with Chapter 14A of the Listing Rules.
For the year ended 31 December 2024
217
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
31 SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)
(e) Amounts due from/to significant related parties
The following table summarises the balances due from and to significant related parties. The balances of the Group are
all unsecured. The balances of the Group are non-interest-bearing and have no fixed repayment dates except for deposits
with CGB, wealth management products and other securities of CGB.
Amounts due from and to related parties of the Group
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Amount due from CLIC
548
549
Amount due from CL Overseas
142
109
Amount due from CLP&C
316
335
Amount due to CLP&C
76
68
Amount due to CLI
461
483
Amount deposited with CGB
20,052
43,707
Wealth management products and other securities of CGB
10,540
8,059
Amount due to CGB
70
74
Amounts due from and to subsidiaries of the Company
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Amount due from CL Hotel Investor, L.P.
2,154
6,241
Amount due to AMC
2,071
1,771
Amount due from Rui Chong Company
490
10
(f) Key management personnel compensation
For the year ended 31 December
2024
2023
RMB million
RMB million
Salaries and other benefits
16
21
The total compensation package for the Company’s key management personnel has not yet been finalised in accordance
with regulations of the relevant PRC authorities. The compensation listed above is the tentative payment.
For the year ended 31 December 2024
218
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
31 SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)
(g) Transactions with state-owned enterprises
Under IAS 24 Related Party Disclosures, business transactions between state-owned enterprises controlled by the PRC
government are within the scope of related party transactions. CLIC, the ultimate holding company of the Group, is a state-
owned enterprise. The Group’s key business is insurance and investment related and therefore the business transactions with
other state-owned enterprises are primarily related to insurance and investment activities. The related party transactions with
other state-owned enterprises are conducted in the ordinary course of business. Due to the complex ownership structure,
the PRC government may hold indirect interests in many companies. Some of these interests may, in themselves or when
combined with other indirect interests, be controlling interests which may not be known to the Group. Nevertheless, the
Group believes that the following captures the material related party transactions and has applied IAS 24 exemption and
disclosed only qualitative information.
As at 31 December 2024, most of the bank deposits of the Group were with state-owned banks; the issuers of corporate
bonds and subordinated bonds held by the Group were mainly state-owned enterprises. For the year ended 31 December 2024,
a large portion of group insurance business of the Group were with state-owned enterprises; the majority of bancassurance
commission charges were paid to state-owned banks and postal offices; and the majority of the reinsurance agreements
of the Group were entered into with state-owned reinsurance companies (2023: same).
32 SHARE CAPITAL
As at 31 December 2024
As at 31 December 2023
No. of shares
RMB million
No. of shares
RMB million
Registered, authorised, issued and fully paid
Ordinary shares of RMB1 each
28,264,705,000
28,265
28,264,705,000
28,265
As at 31 December 2024, the Company’s share capital is as follows:
As at 31 December 2024
No. of shares
RMB million
Owned by CLIC (i)
19,323,530,000
19,324
Owned by other equity holders
8,941,175,000
8,941
Including: Domestic listed
1,500,000,000
1,500
Overseas listed (ii)
7,441,175,000
7,441
Total
28,264,705,000
28,265
(i)
All shares owned by CLIC are domestic listed shares.
(ii) Overseas listed shares are traded on the Stock Exchange of Hong Kong Limited.
For the year ended 31 December 2024
219
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
33 RESERVES
Share
premium
Statutory
reserve fund
Discretionary
reserve fund
General
reserve
Others
Total
RMB million
RMB million
RMB million
RMB million
RMB million
RMB million
(a)
(b)
(c)
As at 1 January 2023
53,905
54,553
50,607
52,429
(51,710)
159,784
Other comprehensive income
–
–
–
–
(21,741)
(21,741)
Appropriation to reserves
–
1,753
3,932
1,919
–
7,604
Other comprehensive income to
retained earnings
–
–
–
–
(94)
(94)
Others
–
–
–
–
380
380
As at 31 December 2023
53,905
56,306
54,539
54,348
(73,165)
145,933
Appropriation to reserves
–
9,881
–
9,881
–
19,762
As at 1 January 2024
53,905
66,187
54,539
64,229
(73,165)
165,695
Other comprehensive income
–
–
–
–
(56,770)
(56,770)
Appropriation to reserves
–
–
1,753
10,136
–
11,889
Other comprehensive income to
retained earnings
–
–
–
–
(2,005)
(2,005)
Others
–
–
–
–
224
224
As at 31 December 2024
53,905
66,187
56,292
74,365
(131,716)
119,033
(a) Pursuant to the relevant PRC laws, the Company appropriated 10% of its net profit under Chinese Accounting Standards (“CAS”) to statutory reserve
fund. It may not be withdrawn when the accumulated amount of the statutory reserve fund reaches more than 50% of the registered capital. Statutory
reserve fund can be used to cover losses or increase share capital after approval. According to the approval of the Board of Directors, the Company did
not withdraw statutory reserve fund in 2024 (2023: RMB1,753 million).
(b) Approved at the Annual General Meeting in 27 June 2024, the Company appropriated RMB1,753 million to the discretionary reserve fund for the year
ended 31 December 2023 based on net profit under CAS (2023: RMB3,932 million).
(c) Pursuant to “Financial Standards of Financial Enterprises – Implementation Guide” issued by the Ministry of Finance of the PRC on 30 March 2007, for
the year ended 31 December 2024, the Company appropriated 10% of net profit under CAS which amounted to RMB9,933 million to the general reserve
for future uncertain catastrophes, which cannot be used for dividend distribution or conversion to share capital increment (2023: RMB1,753 million).
In addition, pursuant to the CAS, the Group appropriated RMB203 million to the general reserve of its subsidiaries attributable to the Company in the
consolidated financial statements (2023: RMB166 million).
Under related PRC law, dividends may be paid only out of distributable profits. Any distributable profits that are not distributed
in a given year are retained and available for distribution in the subsequent years.
For the year ended 31 December 2024
220
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
34 NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
Changes in liabilities arising from financing activities
Interest-
bearing loans
and other
borrowings
Bonds
payable
Lease
liabilities
Financial
assets
sold under
agreements
to
repurchase
Other
liabilities-
payable
to the
third-party
holders of
consolidated
structured
entities
Total
RMB million
RMB million
RMB million
RMB million
RMB million
RMB million
At 1 January 2023
12,782
36,167
1,569
149,022
73,934
273,474
Changes from financing
cash flows
(1,073)
(1,500)
(1,149)
64,330
10,361
70,969
Foreign exchange movement
479
–
–
–
–
479
Changes arising from losing
control of consolidated
structured entities
–
–
–
(4)
–
(4)
New leases
–
–
810
–
–
810
Interest expense
669
1,499
54
2,882
–
5,104
Others
–
–
(29)
621
–
592
At 31 December 2023
12,857
36,166
1,255
216,851
84,295
351,424
At 1 January 2024
12,857
36,166
1,255
216,851
84,295
351,424
Changes from financing
cash flows
(831)
(1,498)
(1,074)
(68,743)
12,133
(60,013)
Foreign exchange movement
(33)
–
–
–
–
(33)
Changes arising from losing
control of consolidated
structured entities
–
–
–
(1,734)
–
(1,734)
New leases
–
–
1,133
–
–
1,133
Interest expense
765
526
45
2,751
–
4,087
Others
–
–
(41)
2,439
–
2,398
At 31 December 2024
12,758
35,194
1,318
151,564
96,428
297,262
For the year ended 31 December 2024
221
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
35 PROVISIONS AND CONTINGENT LIABILITIES
The following is a summary of the significant contingent liabilities:
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Pending lawsuits
704
583
The Group involves in certain lawsuits arising from the ordinary course of business. In order to accurately disclose the
contingent liabilities for pending lawsuits, the Group analyses all pending lawsuits on a case by case basis at the end of
each interim and annual reporting period. A provision will only be recognised if management determines, based on third-
party legal advice, that the Group has present obligations and the settlement of which is expected to result an outflow of
the Group’s resources embodying economic benefits, and the amount of such obligations could be reasonably estimated.
Otherwise, the Group will disclose the pending lawsuits as contingent liabilities. As at 31 December 2024, the Group had
other contingent liabilities but disclosure of such was not practical because the amounts of liabilities could not be reliably
estimated and were not material in aggregate (as at 31 December 2023: same).
36 COMMITMENTS
(a) Capital commitments
The Group had the following capital commitments relating to property development projects and investments:
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Contracted, but not provided for
Investments
81,276
86,590
Property, plant and equipment
1,280
1,466
Total
82,556
88,056
(b) Operating lease commitments
As lessor, the future minimum rentals receivable under non-cancellable operating leases are as follows:
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
Not later than one year
857
914
Later than one year but not later than five years
1,383
1,413
Later than five years
267
198
Total
2,507
2,525
For the year ended 31 December 2024
222
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
37 STATEMENT OF FINANCIAL POSITION AND RESERVES
(a) Statement of financial position
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
ASSETS
Property, plant and equipment
47,810
48,775
Right-of-use assets
1,388
1,364
Investment properties
5,856
6,063
Investments in subsidiaries
327,109
315,929
Investments in associates and joint ventures
258,587
217,717
Term deposits
344,382
322,298
Statutory deposits – restricted
5,848
5,801
Investment in debt instruments at amortised cost
8,683
32,206
Investment in debt instruments at fair value through
other comprehensive income
3,625,258
2,908,332
Investment in equity instruments at fair value through
other comprehensive income
146,523
117,711
Financial assets at fair value through profit or loss
1,601,948
1,462,090
Reinsurance contract assets
30,738
25,846
Other assets
19,911
29,627
Deferred tax assets
42,027
23,020
Financial assets purchased under agreements to resell
25,414
13,155
Accrued investment income
432
70
Cash and cash equivalents
77,346
135,645
Total assets
6,569,260
5,665,649
For the year ended 31 December 2024
223
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Notes to the Consolidated Financial Statements (continued)
37 STATEMENT OF FINANCIAL POSITION AND RESERVES (continued)
(a) Statement of financial position (continued)
As at
31 December
2024
As at
31 December
2023
RMB million
RMB million
LIABILITIES AND EQUITY
Liabilities
Insurance contract liabilities
5,825,026
4,859,175
Reinsurance contract liabilities
160
188
Bonds payable
35,194
36,166
Other liabilities
38,190
35,784
Premiums received in advance
28,760
48,878
Financial assets sold under agreements to repurchase
134,463
203,605
Total liabilities
6,061,793
5,183,796
Equity
Share capital
28,265
28,265
Reserves
121,274
147,745
Retained earnings
357,928
305,843
Total equity
507,467
481,853
Total liabilities and equity
6,569,260
5,665,649
For the year ended 31 December 2024
224
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Notes to the Consolidated Financial Statements (continued)
37 STATEMENT OF FINANCIAL POSITION AND RESERVES (continued)
(b) Reserves
Share
premium
Statutory
reserve fund
Discretionary
reserve fund
General
reserve
Others
Total
RMB million
RMB million
RMB million
RMB million
RMB million
RMB million
As at 1 January 2023
53,360
54,505
50,607
51,341
(48,346)
161,467
Other comprehensive income
–
–
–
–
(21,128)
(21,128)
Appropriation to reserves
–
1,753
3,932
1,753
–
7,438
Other comprehensive income to
retained earnings
–
–
–
–
(96)
(96)
Others
–
–
–
–
64
64
As at 31 December 2023
53,360
56,258
54,539
53,094
(69,506)
147,745
Appropriation to reserves
–
9,881
–
9,881
–
19,762
As at 1 January 2024
53,360
66,139
54,539
62,975
(69,506)
167,507
Other comprehensive income
–
–
–
–
(56,172)
(56,172)
Appropriation to reserves
–
–
1,753
9,933
–
11,686
Other comprehensive income to
retained earnings
–
–
–
–
(2,013)
(2,013)
Others
–
–
–
–
266
266
As at 31 December 2024
53,360
66,139
56,292
72,908
(127,425)
121,274
For the year ended 31 December 2024
225
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
38 DIRECTORS’, SUPERVISORS’, CHIEF EXECUTIVE’S AND SENIOR
MANAGEMENT’S REMUNERATION
The total compensation package for the directors, supervisors, chief executive and senior management for the year ended 31
December 2024 in accordance with the related measures for compensation management of the Company has not yet been
finalised. The amount of the compensation not provided for is not expected to have a significant impact on the Group’s 2024
consolidated financial statements. The final compensation will be disclosed in a separate announcement when determined.
(a) Directors’ and chief executive’s emoluments
The aggregate amounts of emoluments paid to directors and chief executive of the Company for the year ended 31
December 2024 are as follows:
Name
Remuneration
paid
Benefits
in kind
Pension
scheme
contributions
Total
RMB thousand
Cai Xiliang (i)
–
–
–
–
Bai Tao (ii)
–
–
–
–
Li Mingguang (iii)
–
–
–
–
Liu Hui (iv)
730.9
97.6
116.9
945.4
Ruan Qi (iv)
730.9
96.5
106.1
933.5
Wang Junhui (v)
–
–
–
–
Zhuo Meijuan (vi)
–
–
–
–
Hu Jin (vi)
–
–
–
–
Hu Rong (vi)
–
–
–
–
Lin Zhiquan
420.0
–
–
420.0
Zhai Haitao
420.0
–
–
420.0
Huang Yiping (vii)
385.0
–
–
385.0
Chen Jie
420.0
–
–
420.0
Lu Feng (vii)
35.0
–
–
35.0
(i)
Cai Xiliang was appointed as the chairman and executive director in December 2024 and did not receive remuneration from the Company.
(ii) Bai Tao resigned as chairman and executive director in October 2024 and did not receive remuneration from the Company.
(iii) Li Mingguang did not receive remuneration from the Company from May 2023.
(iv) Liu Hui and Ruan Qi were appointed as executive directors in May 2024.
(v) Wang Junhui is a non-executive director and does not receive remuneration from the Company.
(vi) Hu Jin and Hu Rong were appointed as non-executive directors in November 2024 and did not receive remuneration from the Company. Zhuo Meijuan
resigned as non-executive director in June 2024 and did not receive remuneration from the Company.
(vii) Lu Feng was appointed as independent director in November 2024. Huang Yiping resigned as independent director in November 2024.
(viii) The above remuneration was calculated based on the relevant employment period during the reporting period.
For the year ended 31 December 2024
226
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
38 DIRECTORS’, SUPERVISORS’, CHIEF EXECUTIVE’S AND SENIOR
MANAGEMENT’S REMUNERATION (continued)
(a) Directors’ and chief executive’s emoluments (continued)
The aggregate amounts of emoluments paid to directors and chief executive of the Company for the year ended 31
December 2023 are as follows:
Name
Basic
salaries
Performance
related
bonuses
Subtotal
of salary
income
Deferred
payment
included in
salary income
Benefits
in kind
Pension
scheme
contributions
Total
Deferred
payment
included
in total
Actual paid
included
in total
RMB thousand
Bai Tao (i)
–
–
–
–
–
–
–
–
–
Zhao Peng (ii)
–
–
–
–
–
–
–
–
–
Li Mingguang (iii)
220.7
441.3
662.0
220.7
54.8
84.2
801.0
220.7
580.3
Wang Junhui (iv)
–
–
–
–
–
–
–
–
–
Zhuo Meijuan (v)
–
–
–
–
–
–
–
–
–
Lin Zhiquan
300.0
120.0
420.0
–
–
–
420.0
–
420.0
Zhai Haitao
300.0
120.0
420.0
–
–
–
420.0
–
420.0
Huang Yiping
300.0
120.0
420.0
–
–
–
420.0
–
420.0
Chen Jie
300.0
120.0
420.0
–
–
–
420.0
–
420.0
(i)
Bai Tao was appointed as the chairman and executive director in May 2022 and did not receive remuneration from the Company.
(ii) Zhao Peng resigned as executive director in August 2023 and did not receive remuneration from the Company.
(iii) Li Mingguang did not receive remuneration from the Company from May 2023.
(iv) Wang Junhui is a non-executive director and does not receive remuneration from the Company.
(v) Zhuo Meijuan was appointed as non-executive director in June 2023 and did not receive remuneration from the Company.
(vi) The above remuneration was calculated based on the relevant employment period during the reporting period, and there is no performance remuneration
recovery and deduction in 2023.
The compensation amounts disclosed above for these directors and the chief executive for the year ended 31 December
2023 were restated based on the finalised amounts determined during 2024.
The directors and chief executive received the compensation amounts disclosed above during their term of office in 2024
and 2023.
In addition to the directors’ emoluments disclosed above, certain directors of the Company received emoluments from CLIC,
the amounts of which were not apportioned between their services to the Company and their services to CLIC.
For the year ended 31 December 2024
227
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
38 DIRECTORS’, SUPERVISORS’, CHIEF EXECUTIVE’S AND SENIOR
MANAGEMENT’S REMUNERATION (continued)
(b) Supervisors’ emoluments
The aggregate amounts of emoluments paid to supervisors of the Company for the year ended 31 December 2024 are as
follows:
Name
Remuneration
paid
Benefits
in kind
Pension
scheme
contributions
Total
RMB thousand
Cao Weiqing
1,342.5
158.6
187.0
1,688.1
Ye Yinglan
904.4
131.6
149.4
1,185.4
Dong Haifeng (i)
345.2
56.4
61.8
463.4
Lai Jun (i)
795.1
93.3
129.3
1,017.7
Niu Kailong (ii)
–
–
–
–
Gu Haishan (ii)
–
–
–
–
(i)
Dong Haifeng was appointed as employee representative supervisor in July 2024. Lai Jun resigned as employee representative supervisor in October
2024.
(ii) Gu Haishan was appointed as non-employee representative supervisor in October 2024 and did not receive remuneration from the Company. Niu Kailong
resigned as non-employee representative supervisor in June 2024 and did not receive remuneration from the Company.
(iii) The above remuneration was calculated based on the relevant employment period during the reporting period.
The aggregate amounts of emoluments paid to supervisors of the Company for the year ended 31 December 2023 are as
follows:
Name
Basic
salaries
Performance
related
bonuses
Subtotal
of salary
income
Deferred
payment
included in
salary income
Benefits
in kind
Pension
scheme
contributions
Total
Deferred
payment
included
in total
Actual paid
included
in total
RMB thousand
Cao Weiqing
683.6
1367.2
2050.8
683.6
155.0
225.2
2431.0
683.6
1747.4
Ye Yinglan (i)
347.7
403.6
751.3
181.6
64.9
91.4
907.6
181.6
726.0
Hu Zhijun (ii)
368.6
390.2
758.8
175.6
62.4
87.8
909.0
175.6
733.4
Wang Xiaoqing (ii)
360.1
449.1
809.2
188.6
62.4
100.1
971.7
188.6
783.1
Lai Jun
783.2
1168.8
1952.0
526.0
125.1
218.0
2295.1
526.0
1769.1
Niu Kailong (iii)
–
–
–
–
–
–
–
–
–
(i)
Ye Yinglan was appointed as employee representative supervisor in June 2023.
(ii) Hu Zhijun and Wang Xiaoqing resigned as employee representative supervisors in June 2023.
(iii) Niu Kailong did not receive remuneration from the Company.
(iv) The above remuneration was calculated based on the relevant employment period during the reporting period, and there is no performance remuneration
recovery and deduction in 2023.
The compensation amounts disclosed above for these supervisors for the year ended 31 December 2023 were restated
based on the finalised amounts determined during 2024.
The supervisors received the compensation amounts disclosed above during their term of office in 2024 and 2023.
For the year ended 31 December 2024
228
Annual Report 2024 | Financial Report
Notes to the Consolidated Financial Statements (continued)
38 DIRECTORS’, SUPERVISORS’, CHIEF EXECUTIVE’S AND SENIOR
MANAGEMENT’S REMUNERATION (continued)
(c) Five highest paid individuals
For the year ended 31 December 2024, the five individuals whose emoluments were the highest in the Company include
one supervisor (2023: one supervisor).
Details of the remuneration of the five highest paid individuals are as follows:
For the year ended 31 December
2024
2023
RMB thousand
RMB thousand
Basic salaries, housing allowances, other allowances and benefits in kind
6,851.3
11,282.2
Pension scheme contributions
1,054.7
1,135.9
Total
7,906.0
12,418.1
The emoluments fell within the following bands:
Number of individuals
For the year ended 31 December
2024
2023
RMB0 – RMB1,000,000
–
–
RMB1,000,001 – RMB2,000,000
5
–
RMB2,000,001 – RMB3,000,000
–
5
RMB3,000,001 – RMB4,000,000
–
–
RMB4,000,001 – RMB4,500,000
–
–
For the year ended 31 December 2024, no emoluments were paid by the Company to the directors, chief executive,
supervisors or any of the five highest paid individuals as an inducement to join or upon joining the Company or compensation
for loss of office as a director of any member of the Group or of any other office in connection with the management
(2023: nil).
The emoluments of the five highest paid individuals are the total emoluments paid to them during the year.
There was no arrangement under which a director, chief executive or supervisor waived or agreed to waive any remuneration
during the year.
In case of any discrepancy between the Chinese version and the English version of this report,
the Chinese version shall prevail; in case of any discrepancy between the printed version and
the website version of this report, the website version shall prevail.
Office Address ： 16 Financial Street, Xicheng District, Beijing, P.R. China
Telephone ： 86-10-63633333
Website ： www.e-chinalife.com
E-mail ： ir@e-chinalife.com