China Life Insurance’s net profit has risen by 17.8 percent in the first six months of the year, due to a strong performance in the investment income sector.
The company said in a statement that the nation’s second largest insurer by market value reported a profit of Rmb12.242bn (US$1.83bn) during the period with total investment income growing 11.45 percent to Rmb56.66bn.
The performance highlights a trend in China’s insurance sector which sees companies achieving stronger profits from their returns on investments.
During the first half of the year, the entire industry’s overall earnings rose 10 percent to Rmb116.1bn, according to the country’s top insurance regulator.
Still, the government crackdown on leverage may soon bring headwinds to the sector, already leading to the chief insurance regulator being probed for graft and others being reprimanded for acquisitions abroad.