China LifeInsurance Co. Ltd.'s first-quarter net profit sank 57.2% year overyear, in line with the company's guidance issued in April.
The insurer's consolidated net profit dropped to 5.25billion yuan, or 18 fen per share, from 12.27 billion yuan, or 43 fen pershare, in the prior-year period.
Operating income climbed to 219.98 billion yuan from 192.62billion yuan in the year-ago period. Premiums earned increased to 196.43billion yuan from 150.31 billion yuan, while premium income surged to 201.65billion yuan from 153.45 billion yuan.
Investment income, however, declined to 25.11 billion yuanfrom 38.39 billion yuan. The company earlier said the expected decline in netprofit is attributed to a lower investment income and the impact from thechange in the discount rate assumption of reserves of traditional insurancecontracts.
The insurer's operating expenses rose to 213.88 billion yuanfrom 176.48 billion yuan. As a result, operating profit plummeted to 6.10billion yuan from 16.14 billion yuan in the prior-year quarter.
As of April 27, US$1was equivalent to 6.50 Chinese yuan.