Putting this number into perspective, China Life Insurance (NYSE:LFC) does all right compared to last year. The RMB264.2 billion represents a 2.8% increase over last year's $256.9 billion figure. Overall it is safe to say that while the latest number is not extraordinary, the company does what it is supposed to.
But investors have to consider two more factors when it comes to the stock price of China Life Insurance (NYSE:LFC). For one, the company fell hard earlier the year when insurance claims jumped, hurting net income. China Life (NYSE:LFC) has to put an end increasing payout to achieve stock price appreciation.
For two, Chinese insurers, including Ping An Insurance (HKG:2318) and China Pacific Insurance (HKG:2601), are sensitive to the performance of broad Chinese indices. Insurers derive approximately 15% of their net income from investment related activities. Should the Shanghai Composite Index (SHA:000001) continue to fall, outlook on returns will sour.