China Life exits NYSE; US-listed Chinese insurance stocks struggling S&P Global Market Intelligence

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 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.

  • Other companies, especially those that had set up foreign branches in Hong Kong, Singapore, Taiwan, and elsewhere, withdrew from the mainland to rebuild their businesses around their foreign holdings.
  • In that year, PICC began offering general (i.e., non-life) insurance policies.
  • PICC began offering life insurance policies again in 1982, targeting the small but growing numbers of middle-class and wealthy Chinese, as well as government officials.

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., 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.

The following year, Tai Ping added a life insurance component, Tai Ping Life Insurance Company. Tai Ping developed strongly through the 1930s, adding nearly 20 branches in major cities in China as well as elsewhere in southeast Asia. The company also opened some 400 secondary offices across the Chinese mainland, before adding representative offices in Europe and in the Americas. A number of local groups appeared, however, and played an important role in developing the life insurance market among the indigenous population. The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company. In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

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.

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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.

  • 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 ($6.2 billion) in net premiums and policy fees in 2003.
  • BEIJING–China Life Insurance Co. (2628.HK) said its third-quarter net profit rose 22% from a year earlier, due to higher premium income and strong growth in investment income.
  • Nonetheless, PICC remained the clear insurance champion on the mainland, with a strong national presence.
  • A recent report by Munich Re noted that only about 2% of economic losses caused by natural catastrophes in the country are insured.
  • The firm offers group and individual life insurance through exclusive agents, bancassurance, and other marketing platforms.

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.

China Life Acquires U.S. Real Estate Portfolio for $950 Million

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).


China Life itself announced its intention to diversify into new services, such as asset management, brokerage services, and banking in the near future. In the meantime, China Life had emerged as the dominant player in what many expected to become the world’s fastest-growing and largest life insurance market. Yet the former members of PICC Group began moving toward an opening of its share capital at the beginning of the 2000s. In 2000, China Life announced its intention to diversify its own shareholding in advance of a future public offering. In the meantime, the company continued to build up its business across China, solidifying its dominant position in 29 of the country’s 30 major markets.

By 1952, PICC represented a national network of 1,300 branches and 3,000 agency outlets. Yet the Chinese government, in its effort to develop its regime, determined that insurance was superfluous in a state where the government was meant to provide for all social welfare for its citizens. PICC’s role was reduced to providing insurance covering the country’s foreign policy needs, such as for the marine and aviation sectors.

Huize Holding Limited is a leading digital insurance product and service platform for new generation consumers in China. Targeting the younger generation, Huize is dedicated to serving its insurance clients for their life-long insurance needs. PICC officially retained its monopoly on the Chinese insurance market into the late 1980s.

China Life Insurance Company Limited is a Chinese insurance company based in Beijing. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on, top-rated podcasts, and non-profit the tools for forex trading The Motley Fool Foundation. But given the general decline in an array of Chinese stocks — the broader S&P China BMI is down around 40% since Waterdrop’s IPO — the future for the Chinese insurance market is perhaps not as gloomy as the figures for those listed in the U.S. might suggest. China Life Insurance’s stock split before market open on Wednesday, May 27th 2015.

Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. BEIJING–China Life Insurance Co. (2628.HK) review the research driven investor said its third-quarter net profit rose 22% from a year earlier, due to higher premium income and strong growth in investment income. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

China Life Insurance Co. Ltd. A

With headquarters in Beijing and commanding about 20% market share, China Life Insurance is the largest life insurance company in China. The firm offers group and individual life insurance through exclusive agents, bancassurance, and other marketing platforms. While the bulk of profits stem from life insurance policies, additional operations include short-term policies such as accident and health insurance. The company is undergoing a business transformation toward the sale of long-term protection products and away from short-term and single-premium products. The success of its IPO encouraged China Life to begin eyeing expansion into new markets in 2004. China Life’s unlisted parent company announced its intention to diversify its insurance business to include property insurance and develop an insurance intermediary agent business as well as add other financial services.

That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Following the revolution, the Mao government set up the People’s Insurance currency trading roots Company of China (PICC), which took over all insurance interests on the mainland. Tai Ping’s leadership fled to Taiwan in 1950, reestablishing the company’s operations there.

Key Financials (Last Fiscal Year)

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.

China Life Insurance Co Ltd Company profile

China Life also was helped by the government’s rule for foreign corporations operating in China, which stipulated that all employees in these companies must be covered by unified insurance policies. In response, China Life concentrated its unified insurance operations at its Guangdong Branch, close to the rapidly expanding free-trade zone, in which the majority of foreign enterprises had set up their Chinese operations. By 2001, China Life had captured 80 percent of the unified insurance business for the top 500 foreign firms operating in China.

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