China Life Insurance Chairman discusses Q4 losses: Primarily affected by structural adjustments in capital markets, does not represent the company's long-term operational trend

In response to market concerns over China Life’s net loss in the fourth quarter of 2025, the company’s management has issued a statement.

On March 26, Mingguang Li, President of China Life Insurance Co., Ltd. (China Life, 601628.SH; 02628.HK), stated at the company’s 2025 annual results briefing that most of the investment assets and insurance contract liabilities of life insurance companies need to be measured at current market value. Changes in market value will be reflected in the profit and loss statement or the balance sheet. Therefore, net profit and net assets fluctuate with market conditions, which is normal and industry-standard.

Li pointed out that China Life’s net profit was negative in the fourth quarter of 2025 mainly due to structural adjustments in the capital markets during that period. Some stocks and funds held by the company experienced declines. These fluctuations are mostly temporary and reflect changes in the capital market, not indicative of the company’s long-term operational trend.

He further emphasized that life insurance companies operate over long cycles and across different economic phases. China Life’s investments are value-oriented and long-term. Asset-liability management and investment management should be viewed over a longer horizon. He advised everyone to reduce overinterpretation of quarterly profits. China Life has always adhered to long-termism, maintains asset-liability linkage, and continuously enhances its management capabilities across long and different cycles, striving to create sustainable value for investors. China’s economic foundation remains solid, with many advantages, strong resilience, and great potential. The long-term positive trend and supporting conditions remain unchanged, laying a solid foundation for the company’s development.

Data shows that China Life achieved a net profit attributable to shareholders of the parent company of 167.804 billion yuan in the first three quarters of 2025, a year-on-year increase of 60.5%. The full-year net profit attributable to shareholders was 154.078 billion yuan, up 44.1% year-on-year.

On the morning of March 26, China Life’s A-shares fell 5.19%, closing at 37.44 yuan per share; H-shares dropped 7.89%, closing at 25.200 Hong Kong dollars per share.