China Life Insurance Co (中國人壽), the nation’s fourth-largest insurer by market share, said yesterday that its investment in China — Jian Xin Life Insurance Co (建信人壽) — has gained approval to set up two extra branches after posting a 50 percent jump in net profit last year.
The Chinese insurer, of which China Life owns a 19.9 percent stake, plans to open branches in Hubei and Jiangsu provinces this quarter after the Chinese authorities gave the green light on Dec. 28 and Dec. 29, China Life said in a statement.
That would raise Jian Xin’s number of branches to 10, in addition to 21 sub-branches and 20 other service offices, which would be positive for the company’s fast-growing sales and profits, Taipei-based China Life said.
Jian Xin reported 49.6 million yuan (US$7.94 million) in net income last year, an increase of 50 percent from a year earlier, while total premiums grew threefold to 6.05 billion yuan, outpacing the average 3.5 percent rise of its Chinese peers, according to statistics released by China Life.
Total assets more than doubled to 17.76 billion yuan for the first 11 months of last year, ranking it 18th largest in China, compared with 38th when it was set up in July 2011, the data showed.
These financial results are in line with Jian Xin’s expectation to become the largest bancassurance operator in China within five years, and the largest life insurer within 10 years, with aid from its Chinese partner, China Construction Bank Corp (中國建設銀行), the company said.