Following the reform, PICC was converted into a department of the government’s central bank. Tai Ping in the meantime had been joined by a growing number of other Chinese-owned how to do parallel programming in python insurance companies. Among these were China Insurance Company, founded in 1931 in Shanghai, which opened a life insurance subsidiary, China Life Insurance Company in 1933.

  • This makes China Life Insurance the world’s 95th most valuable company by market cap according to our data.
  • As a result, the company was forced to cede the leadership spot in two of the country’s most important markets, Beijing, captured by Ping An, and Shanghai, taken by China Pacific.
  • China Life itself announced its intention to diversify into new services, such as asset management, brokerage services, and banking in the near future.
  • By the end of the decade, the government had granted licenses to a total of 16 companies–including such returning groups as Tai Ping Insurance Company and China Insurance Company.

The increasingly competitive environment led to a need to change PICC’s structure. Its operations were then broken up into three subsidiaries, PICC Life, PICC Property, and PICC Reinsurance. PICC Group initially operated under the control of the People’s Bank of China.

The company’s nearly 67,000 employees are complemented by a network of 650,000 exclusive independent sales agents. The company also operates a “one-stop” 24-hour telephone sales and service hotline. Together, China Life serves more than 100 million long-term policy holders and more than 150 million short-term policy holders, generating nearly CNY 51 billion tradeallcrypto broker ($6.2 billion) in net premiums and policy fees in 2003. China Life listed on the Hong Kong Stock Exchange and the New York Stock Exchange at the end of 2003, raising $3.5 billion in that year’s largest initial public offering (IPO). China has indicated its intention to expand into other financial areas, such as asset management, brokering, and banking.

Morningstar analysts hand-select direct competitors or comparable companies to
provide context on the strength and durability of 02628’s
competitive advantage. 12 employees have rated China Life Insurance Chief Executive Officer Yang Mingsheng on This puts Yang Mingsheng in the bottom 25% of approval ratings compared to other CEOs of publicly-traded companies. Click the link below and we’ll send you MarketBeat’s guide to investing in electric vehicle technologies (EV) and which EV stocks show the most promise. The Biden administration has been somewhat less aggressive toward Chinese companies than its predecessor, which introduced the Holding Foreign Companies Accountable Act in December 2020. The two nations recently reached a compromise to allow Chinese firms remaining on U.S. exchanges to have their accounts audited in Hong Kong.

Sales per Business

By the end of World War I, China, and especially Shanghai, had become a major center for international trade, although dominated by foreign interests. The lively commercial market in that city offered entrepreneurs seemingly unlimited potential; among these was the young C.V. Starr, an American, who founded an insurance agent’s office in Shanghai in 1919. At first, Starr’s company, American Asiatic Underwriters (AAU), served as a local representative for foreign insurers. Huize Holdings and Fanhua are both would-be disruptors hoping to use digital channels to connect insurers with clients, but Chinese tech stocks in particular have seen steep share price declines amid broader concerns about China’s economy, particularly the property market.

China Life Insurance Company Limited is the largest life insurer in the People’s Republic of China. The company offers individual life insurance, group life, accident insurance, and health insurance policies. China Life commands 45 percent of that market, and holds the number one position in 29 of the country’s 31 major markets–only Shanghai and Beijing, where the company nonetheless is number two, escape its dominance.

China Life Insurance Expected to Post 22% Rise in First-Half Net Profit– Earnings Preview

The arrival of AIG had introduced a new tied-agency system into the market, encouraging the development of branch networks. Yet PICC Group, as a state-owned enterprise, was initially barred from developing its own network of branch offices and tied agents. As a result, the company was forced to cede the leadership spot in two of the country’s most important markets, Beijing, captured by Ping An, and Shanghai, taken by China Pacific. The Chinese government began a wider opening of the country’s insurance market in the early 1990s. By the end of the decade, the government had granted licenses to a total of 16 companies–including such returning groups as Tai Ping Insurance Company and China Insurance Company. The opening of China to the West in the early years of the 20th century led to a variety of new business opportunities.

How has 02628 performed historically compared to the market?

This makes China Life Insurance the world’s 95th most valuable company by market cap according to our data. The market capitalization, commonly called market cap, is the total market value of a publicly traded company’s outstanding shares and is commonly used to measure how much a company is worth. The life insurance business can be a great place to invest as interest rates normalize.

View China Life Insurance Co Ltd’s company headquarters address along with its other key offices and locations. In order to make its IPO more attractive, the parent holding transferred only long- and medium-term policies issued on or after June 10, 1999, to China Life. This move was made in order to avoid launching China Life with the burden of a large number of loss-making policies issued at return rates as high as 6.5 percent. The June 10, 1999 date corresponded to an emergency ruling by the CIRC, which lowered return rates to just 2.5 percent. China is still a vastly underinsured market compared to the U.S., which should provide runway for growth. A recent report by Munich Re noted that only about 2% of economic losses caused by natural catastrophes in the country are insured.

Key Data

They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. As the first insurer to report monthly premium growth, the performance generally tracks our expectations. The year-on-year contraction in September premium narrowed to 7% from 10% in August on low base in the year-ago period. We expect slowing sales for other Chinese life insurers in September and October due to weakened product demands after the last-batch sales of 3.5% guaranteed rate savings products in July. Despite the industrywide trend of slowing sales, we expect Ping An and PICC Life to see less downward pressure supported by lower base in the second half of 2022.

By the mid-1930s, Tai Ping had grown sufficiently large to become a member of the Shanghai Insurance Association, the only Chinese-owned company to be included in what had previously been an exclusive club for foreign insurers. Tai Ping’s fortunes began to dwindle after the start of the Sino-Japanese War in 1937, and especially with the Mao-led Communist revolution in 1949. Waterdrop executives during a Sept. 9 earnings conference call were bullish about the insurtech’s long-term prospects, saying that China’s aging population means the demand for insurance will increase in the years ahead. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

But according to an August note from law firm White & Case, the HFCAA threatens to prohibit the trading of these securities in the U.S. via the OTC market “by 2024, if not earlier.” Chinese companies in the insurance space listed on major U.S. exchanges include Fanhua Inc., Huize Holding Ltd. and Tian Ruixiang Holdings Ltd. along with insurtech Waterdrop Inc., thinkmarkets forex broker review all of which have seen their stocks fall precipitously over the last year. Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

Licenses were granted to the company’s first competitors, including Ping An, which, established that year, grew into the country’s second largest life insurer, with a dominance in the important Beijing market. Nonetheless, PICC remained the clear insurance champion on the mainland, with a strong national presence. The company also began opening offices overseas, adding locations in Singapore, Hong Kong, Tokyo, and London. Heading into the third quarter of 2019, a total of 8 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 14% from the previous quarter. By comparison, 10 hedge funds held shares or bullish call options in LFC a year ago. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were upping their holdings significantly (or already accumulated large positions).

Ltd.’s decision to depart the New York Stock Exchange amid an ongoing standoff between Beijing and Washington, the performance of some remaining U.S.-listed Chinese insurance players suggests investors would not mourn additional such departures. We’d like to share more about how we work and what drives our day-to-day business. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.