China Life Insurance Co (中國人壽) yesterday said the company's embedded value (EV) for last year increased from 2005.
This is the second time the insurer has made such a disclosure. The company is controlled by the Koo (
China Life was estimated to have an EV of NT$19.5 per share as of last year, a company statement said.
EV is an indicator of the value of an insurance firm.
PricewaterhouseCoopers has calculated that at the end of last year, China Life's adjusted net worth was NT$17.12 billion (US$521.87 million) and its effective policies totaled NT$8.37 billion. Deducting the company's capital expenses, NT$4.21 billion, China Life had an EV of NT$21.28 billion on Dec. 31 last year.
As China Life has 1.09 billion shares in circulation, each share has an EV of NT$19.5, it said.
Compared with its EV figures for the end of 2005, the insurer saw its net worth increase by NT$3.32 billion and the value of effective policies rise by NT$1.17 billion. Its EV per share jumped by 22.6 percent from NT$15.9 in 2005.
The insurer yesterday also released financial figures for the first half of this year.
It took in first-year premiums of NT$16.05 billion during the January-to-June period, up by 18 percent from a year ago. Total premiums collected at the same time were worth NT$28.74 billion, rising by 12 percent year-on-year.
As of the end of June, China Life's total assets surpassed NT$250 billion.
In terms of investment portfolios, China Life put NT$19 billion, or around 8 percent of its working capital, into the local stock market in the first two quarters, raking in profits of NT$1.1 billion.
It also invested NT$14 billion in property in the first half, with unrealized gains topping NT$2.1 billion.
The company is considering raising its investment in the real estate market if it determines that office buildings on the market could bring in rental returns of between 4 percent and 5 percent, it said.
For the first half of the year, China Life posted a pre-audited net profit of NT$1.03 billion, jumping by 242.4 percent from the same period last year. Its earnings per share was NT$0.95, the statement said.
To expand its product lines and boost profitability, the insurer last week announced its plan to acquire smaller rival Winterthur Life's Taiwan branch for approximately NT$400 million.
The merger is expected to be completed by October after government approval.
Shares of China Life closed up NT$1.25 to NT$19.65 on the Taiwan Stock Exchange yesterday. The disclosure of its EV was made after the stock market closed.