China Life's Hou Jin: Effective upgrade of the company's asset-liability linkage model, further strengthening value leadership

On March 26, China Life Insurance Company Limited (hereinafter referred to as “China Life,” stock code: 601628.SH, 2628.HK) held its 2025 annual performance release conference simultaneously in Beijing and Hong Kong. During the event, China Life’s Assistant President and Chief Actuary Hou Jin introduced the company’s 2025 embedded value and solvency status.

“Through deepening product offerings, promoting diversified business development, optimizing investment management and layout, and strengthening refined management, the asset-liability linkage model has been effectively upgraded, and value leadership has been further reinforced,” Hou Jin stated at the meeting.

In 2025, China Life’s new business value reached 45.75 billion yuan, a year-on-year increase of 35.7%, achieving rapid growth on a high base. Among them, the new business value from individual insurance channels was 39.3 billion yuan, up 25.5%, maintaining steady progress amid transformation. The new business value from bancassurance and other channels was 6.45 billion yuan, an increase of 169.3%, effectively supporting overall growth.

According to Hou Jin, in 2025, China Life achieved an upgrade in asset-liability linkage, mainly reflected in the following four aspects: First, simultaneously promoting the transformation of floating yield-type businesses, increasing equity investments, and strengthening detailed account management; second, considering scientific management of liability duration and flexible regulation of asset duration, with an effective duration gap of less than 1.5 years; third, actively responding to market interest rate changes, dynamically adjusting product guaranteed interest rates, and coordinating the timing and selection of high-quality fixed income assets, resulting in a reduction of new business liability guarantee costs by over 60 basis points; fourth, creating and realizing value more steadily, with stronger and more resilient endogenous capital creation capabilities.

In 2025, by optimizing investment management and strengthening operational management, China Life’s embedded value investment return differences and operational experience differences were both positive, and solvency continued to remain at a sufficient level.

(Edited by: Wang Lei)

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