Key Takeaways:
China Life Insurance posted a 228.6% surge in first-half net profit to RMB 134.49 billion, driven by a 5.58% total investment yield. Revenue climbed 81.5% to RMB 434.56 billion for the six months ended June 30, according to the company's interim results.
"Mainland visitor demand for Hong Kong insurance has not been affected by adjustments to overseas asset tax regulations," Anil Wadhwani, chief executive of Prudential, said at the earnings briefing. "We expect underwriting momentum to persist through the second half."
China Life's total investment income reached RMB 314.5 billion, up RMB 187 billion year-on-year, lifting new business value 33.7% to RMB 38.17 billion. First-year regular premiums surpassed RMB 100 billion within a half-year for the first time, reaching RMB 101.29 billion, up 24.7%. Prudential's new business profit grew 8% to $1.384 billion, with adjusted operating profit after tax up 10% to $1.523 billion and earnings per share at 58.4 cents.
Both insurers rewarded shareholders. China Life raised its interim dividend 50.4% to RMB 0.358 per share, bringing total interim cash dividends to RMB 10.12 billion. Prudential added $300 million to its share buyback program on top of the previously announced $1.2 billion for 2026 and $1.3 billion for 2027.
Wadhwani said mainland customers buy Hong Kong policies for wealth succession, savings and investment, and medical protection — structural drivers that have not shifted with short-term policy changes. Average policy size for mainland visitors held steady between $17,000 and $18,000, with protection-type products still contributing nearly one-third of premium income. Prudential's Hong Kong business is split evenly between local clients and mainland visitors.
China Life's embedded value reached RMB 1.61 trillion, maintaining the top position in the industry, with total assets of RMB 8.09 trillion. The company's comprehensive solvency adequacy ratio stood at 197.78% and core solvency at 156.80%.
The results show cross-border insurance demand and capital-market gains remain twin engines for the sector. Investors will watch whether China Life's investment income can sustain its pace in the second half, when equity markets and the interest rate environment will determine the trajectory.
This article is for informational purposes only and does not constitute investment advice.
