Rick Chow's questions to CHINA LIFE INSURANCE CO (CILJF) leadership • Q1 2023
Question
Rick Chow from Morgan Stanley asked for a breakdown of the growth in first-year regular premiums with a 10+ year duration, specifically questioning if critical illness (CI) products have seen a recovery. He also inquired about the reasons for the net investment yield dropping to 3.6% in Q1 and the management's outlook on interest rates.
Answer
An Unknown Executive confirmed the 5.1% growth in 10+ year duration business but noted that new critical illness (CI) business still experienced negative growth, an industry-wide issue. They expressed long-term confidence in CI recovery. Regarding the investment yield, an executive attributed the decline to the timing of dividend income and lower returns from fixed-income assets due to falling interest rates. The company plans to counter this by adjusting its asset allocation strategy.