China Life traces its roots to the founding of the People’s Republic of China in 1949. It operates life insurance and property and casualty insurance businesses, and it also offers asset management services and other financial services. Economic reforms launched under Deng Xiaoping in 1978 paved the https://currency-trading.org/strategies/50-200-day-moving-average-crossover-strategy/ way to a rebirth in China’s insurance sector. In 1979, the People’s Insurance Company of China was separated from the central bank and reestablished as an independently operating, although state-controlled, company. In that year, PICC began offering general (i.e., non-life) insurance policies.
Following the revolution, the Mao government set up the People’s Insurance 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. 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. Foreign insurance companies were simply expelled outright, and their holdings regrouped under PICC as well.
12 employees have rated China Life Insurance Chief Executive Officer Yang Mingsheng on Glassdoor.com. Yang Mingsheng has an approval rating of 57% among the company’s employees. This puts Yang Mingsheng in the bottom 25% of approval ratings compared to other CEOs of publicly-traded companies.
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 opening of China to the West in the early years of the 20th century led to a variety of new business opportunities. 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.
About China Life Insurance (NYSE:LFCHY) Stock
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. 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.
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. We should also point out that China Life Insurance has a forward PE ratio (price relative to this year’s earnings) of just 6.65, which is tad higher than the current level. So it is fair to expect an increase in the company’s share price in the near term.
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. Later insurance market entries included Ming An Insurance Company, established in Hong Kong in 1949. By then, China boasted more than 240 insurance companies–some 180 of which were Chinese owned.
- Ping An of China was founded in 1988 and held its initial public offering (IPO) in 2004.
- The company offers individual life insurance, group life, accident insurance, and health insurance policies.
- At first the PICC monopoly continued to operate its various insurance services, integrating the assets of the former independent insurance sector.
- China Life itself announced its intention to diversify into new services, such as asset management, brokerage services, and banking in the near future.
- Following the reform, PICC was converted into a department of the government’s central bank.
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. Ping An of China was founded in 1988 and held its initial public offering (IPO) in 2004. As of December 31, 2021, according to its annual report, the company employed 355,982 employees, of which 189,305 were in the insurance business.
Further, the stock’s PE compares favorably with the Zacks Finance sector’s trailing twelve months PE ratio, which stands at 19.2. At the very least, this indicates that https://trading-market.org/what-is-customs-brokerage/ the stock is relatively undervalued right now, compared to its peers. China Life Insurance Company Limited granted a 0.00% dividend yield in the last twelve months.
In the meantime, Asia Life’s success inspired a raft of competitors. Most of these were local representatives of large foreign companies. A number of local groups appeared, however, and played an important role in developing the life insurance market among the indigenous population. The Chinese insurance market has grown at https://day-trading.info/top-20-aws-cloud-support-engineer-interview/ a furious pace in recent years. Today, the biggest insurance companies in China rank among the largest companies in the world in terms of market capitalization. Best, a global rating agency, published a list of the top 25 largest insurance companies in the world by net premiums written (NPW) and 2020 non-banking assets.
China Life Insurance Co Ltd premium industry data and analytics
Upgrade to MarketBeat All Access to add more stocks to your watchlist. This is lower than the S&P 500 average, which comes in at 5.25 right now. Also, as we can see in the chart below, this is below the highs for this stock in particular over the past few years. The current China Life Insurance Company Limited volatility is 12.02%, representing the average percentage change in the investments’s value, either up or down over the past month.
The information contained herein does not constitute investment advice and made available for educational purposes only. Prices and returns on equities are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling. The chart shows the growth of an initial investment of $10,000 in China Life Insurance Company Limited, comparing it to the performance of the S&P 500 index or another benchmark. Despite the restructuring, PICC Group was somewhat hampered in its growth. 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.
News in other languages on China Life Insurance Company Limited
By 2001, China Life had captured 80 percent of the unified insurance business for the top 500 foreign firms operating in China. China Pacific Insurance Group is an integrated insurance provider offering property and casualty insurance, life insurance, and reinsurance products, as well as asset management and investment services. As of December 31, 2021, China Pacific has 107,000 employees, with almost 60% with an expertise in marketing. It was listed on the Shanghai Stock Exchange in 2007 and the Hong Kong Stock Exchange in 2009. And as of July 2022, it has a market capitalization of $233.37 billion. With a market capitalization of about $103.9 billion (as of July 2022), China Life Insurance Co., Ltd.is the second largest company in China in both net non-banking assets and net premiums written for 2020.