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

(Source: Beijing Business Today)

Beijing Business Today news (Reporter Hu Yongxin) On March 26, China Life Insurance Company Limited (hereinafter referred to as “China Life”) held its 2025 annual performance briefing simultaneously in Beijing and Hong Kong. At the meeting, Assistant President and Chief Actuary Hou Jin introduced the company’s embedded value and solvency situation for 2025.

“The company has effectively upgraded its asset-liability linkage model through deepening product supply, promoting diversified business development, optimizing investment management and layout, and enhancing refined management, further strengthening value leadership,” 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 these, the individual insurance channel’s new business value was 39.3 billion yuan, growing by 25.5%, steadily progressing amid transformation. The bank insurance and other channels contributed new business value of 6.45 billion yuan, a growth of 169.3%, effectively supporting overall growth.

According to Hou Jin, the asset-liability linkage upgrade achieved by China Life in 2025 is mainly reflected in the following four aspects: First, synchronously advancing the transformation of floating income-type business, increasing equity investments, and enhancing detailed account management; Second, comprehensively considering the scientific management of liability duration and the flexible adjustment of asset duration, with an effective duration gap of less than 1.5 years; Third, actively responding to changes in market interest rates, with dynamic adjustments of product preset interest rates and a coordinated effort in timing and optimal allocation of fixed income assets, resulting in a reduction of the cost rate of new business liabilities by over 60 basis points; Fourth, value creation and realization are more robust, with stronger resilience in endogenous capital creation capabilities.

In 2025, by optimizing investment management and strengthening operational management simultaneously, China Life’s embedded value investment return differences and operational experience differences are both positive, and solvency continues to maintain an adequate level.

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