2
Forward-looking Statement
Certain statements contained in this presentation may be viewed as “forward-looking statements” as
defined by Section 27A of U.S. Securities Act and Section 21E of U.S. Securities Exchange Act of 1934,
as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other
factors, which may mean that the actual performance, financial condition or results of operations of the
Company could be materially different from any future performance, financial condition or results of
operations implied by such forward-looking statements. Further information regarding these risks,
uncertainties and other factors is included in the Company’s Annual Report on Form 20-F for the fiscal
year ended 31 December 2016 filed with the U.S. Securities and Exchange Commission, or SEC, on 21
April 2017; and in the Company’s other filings with the SEC. The Company does not undertake any
obligation to update any forward-looking statement, except as required under applicable law. All
information provided in this presentation is as of the date of this presentation, and the Company
undertakes no duty to update such information, except as required under applicable law.
Unless otherwise indicated, the Chinese insurance market information set forth in this presentation is
based on public information released by CIRC.
Note: The Company has prepared these consolidated financial statements in accordance with International Financial Reporting Standards (“IFRSs”), amendments to
IFRSs and interpretations issued by the International Accounting Standards Board (“IASB”).
3
Management Team
XU Haifeng
Vice President
LI Mingguang
Vice President, Chief Actuary
& Board Secretary
Beijing
Hong Kong
ZHAO Lijun
Vice President
ZHAN Zhong
Marketing Director
*Appointment pending approval by China Insurance Regulatory Commission.
XU Hengping
Vice President
LIN Dairen
President
XIAO Jianyou
Vice President
YANG Hong
Operations Director
RUAN Qi
Vice President*
6
2017 Results Highlights
Highlights Performance Indicators Figures (RMB bn) Growth Rates
Premiums reached a new high1
Gross written premiums 511.97 18.9%
First-year regular premiums 113.12 20.4%
Renewal premiums 288.11 28.9%
Optimized premium structure
Percentage of first-year regular premiums 64.0% 7.7pps
Percentage of premiums with
10-year-or-longer payment duration 58.4% 3.7pps
Percentage of renewal premiums 56.3% 4.4pps
Expanded & enhanced
sales force
Total sales force 2.025mn 11.6%
Individual agent force 1.578mn 5.6%
Quarterly average productive agent force2 - 29.8%
Rapid business value growth Value of one year’s sales 60.12 21.9%
Significant net profit growth Net profit attributable to
equity holders of the Company 32.25 68.6%
Note:
1. Premiums are calculated in accordance with the Accounting Standards for Business Enterprises Interpretation No.2.
2. Productive agent force data is not covered by this disclosure.
7
Strong Growth Momentum through Five Years of Reform and Transformation
Value of One Year’s Sales First-year Regular Premiums
FYRP with 10-year-or-longer Payment Duration
21 23
32
49
60
2% 9%
36%
56%
22%
0%
20%
40%
60%
0
20
40
60
80
2013 2014 2015 2016 2017
Growth Rate
40 47
62
94
113
-11%
16% 33%
52%
20%
-20%
40%
100%
0
20
40
60
80
100
120
2013 2014 2015 2016 2017
Growth RateRMB bn RMB bn
21 26
32
51
66
12%
22%
25%
59%
28%
0%
20%
40%
60%
0
30
60
2013 2014 2015 2016 2017
Growth RateRMB bn
Gross Written Premiums
191 188 192 224 288
1% 1%
10%
18% 19%
0%
10%
20%
0
200
400
600
2013 2014 2015 2016 2017
Renewal Premiums Premiums from New Policy
Gross Written Premiums Growth
RMB bn
431
512
326 331 364
8
The Company will uphold the
keynote of achieving progress
while ensuring stability,
responding to demands for high-
quality development. It will
enhance its supply and demand
system, investment management
system, innovation system, talent
system and risk control system,
and endeavor to transform from
‘leading in scale’ to ‘leading in
quality’.
Future Development Outlook
From a macroeconomic perspective, China’s economy
switched from a phase of rapid growth to high-quality
development, and maintained steady growth. In this new
era, the demand for insurance protection and wealth
management has grown rapidly. The introduction of a
series of national policies relating to commercial pensions
and health will provide strong impetus and ample room for
the development of commercial insurance.
From an industry perspective, regulators tightened
regulation and guided the industry to return to its due role
of protection. With accelerated transformation of market
players in a more orderly market, the industry will focus
more on the protection-oriented and long-term savings
business, customer services and technology innovation.
The market competition is becoming increasingly fierce
and differentiated.
10
166,936 176,792
223,502
288,106
40,060
47,068
2016 2017Short-term Premiums
Renewal Premiums
Long-term First-year Premiums
Rapid Growth in Insurance Business
Pro-actively controlled the volume of single premiums; first-year regular premiums and renewal
premiums drove the rapid growth in gross written premiums
Long-term First-year
Premiums
72,991 63,671
93,945 113,121
2016 2017
First-year Regular Premiums
Single Premiums (excluding short-term insurance)
Gross Written Premiums Renewal Premiums
223,502
288,106
2016 2017
RMB mn RMB mn RMB mn
166,936 176,792
+5.9%
▲ +20.4%
▼ -12.8%
+28.9% +18.9%
▲ +5.9%
▲ +28.9%
▲ +17.5% 430,498
511,966
11
Premium Structure Further Optimized
19,239 21,900
23,328 25,218
51,378
66,003
2016 2017
Less than 5 years 5-9 years 10-year-or-longer
Business Structure of Long-term FYP
43.72% 36.01%
56.28% 63.99%
2016 2017Single Premiums First-year Regular Premiums
First-year Regular Premiums
RMB mn
113,121
93,945
+20.4%
▲ +13.8%
▲ +8.1%
▲ +28.5%
Business Structure of Long-term GWP
42.76% 38.03%
57.24% 61.97%
2016 2017Long-term FYP Renewal Premiums
12
个险渠道保费收入 Agent Channel FYRP
Strong Growth in Agent Channel Business
Continued to Showcase Strengths of the Core Channel
10,282 12,183
17,911 19,261
46,337
58,796
2016 2017
Less than 5 years 5-9 years 10-year-or-longer
RMB mn
In 2017, guided by the value-oriented principle, the Agent Channel continued to record
strong growth in regular premiums, with business structure being further optimized.
74,530
90,240
▲ +18.5%
▲ +7.5%
+21.1%
▲ +26.9%
Agent Channel GWP
199,826
253,586
82,310
100,082
2016 2017
Renewal Premiums Premiums from New Policy
RMB mn
282,136
353,668
▲ +26.9%
▲ +21.6%
+25.4%
13
Expanded Scale and Enhanced Quality of Agent Force
Overall Strength Continued to Improve
In 2017, the Company strengthened the day-to-day management of the Agent Channel and
actively pushed forward the transformation of the sales management model. While the agent
force expanded steadily, its quality was also enhanced significantly.
Total Individual Agent Force Quarterly Average Productive Agent Force
Quarterly Average Productive
Upsales Force
1.494
1.578
2016 2017
2016 2017
2016 2017
+5.6%
+29.8%
+53.0%
mn
14
Bancassurance Channel Continued its Sound Development
Value Contribution Rose Significantly
Bancassurance GWP Bancassurance FYRP
68,047 59,777
21,813 31,880
17,835 20,954
2016 2017Short-term PremiumsFirst-year Regular PremiumsRenewal PremiumsSingle Premiums (excluding short-term insurance)
8,531 9,240
5,107 5,575
4,197
6,139
2016 2017
Less than 5 years 5-9 years 10-year-or-longer
RMB mn RMB mn
108,256 113,505
17,835
20,954
+4.8% +17.5%
▲ +8.3%
▲ +9.2%
▲ +46.3%
▼-12.2%
▲ +46.2%
▲ +17.5%
The Channel deepened its business transformation. Both first year regular premiums and renewal premiums recorded rapid
growth, with business structure being further optimized.
Value of one year’s sales increased by 150.4% year-on-year, and its contribution to the total value of one year’s sales
increased by 5.6 pps.
Sales force totaled 339,000 people. Number of monthly average active insurance planners increased by 11.3% year-on-year.
15
18,782 20,840
6,133 5,367
2016 2017
Short-term Insurance Long-term Insurance
Group Channel GWP
Steady Growth in Group Channel Business
Strong Operations Further Sustained
RMB mn
Closely followed the national strategy to better people’s livelihoods, continued to diversify its business, and witnessed
the steady growth in the short-term insurance business.
Sales force totaled 104,000 people, up by 21.4% year-on-year.
24,915 26,207
+5.2%
Group Channel Sales Force
85,874
104,289
36,325
52,253
2016 2017
Total Sales Force High-performance Sales Force
Person
+21.4%
+43.8%
▲ +11.0%
16
Short-term Commercial Insurance Policy-sponsored Health Insurance
20,676 22,910
7,715
9,730 587
930
2016 2017
Group Channel Agent Channel Bancassurance Channel
Continued Growth in Short-term Insurance Business
Social Impacts Gained Recognition
Gross written premiums from short-term insurance grew steadily. It not only contributed to the Company’s development
but also served people’s well-being, thus expanding the Company’s social recognition.
Gross written premiums of short-term insurance business (including one-year term life insurance) reached RMB 33.57
billion, up by 15.8% year-on-year.
The Company played an active role in policy-sponsored health insurance business. It undertook more than 260
supplementary major medical expenses insurance programs in 31 provincial-level branches, covering 420 million
urban and rural residents. Gross written premiums reached RMB 15.56 billion, up by 18.1% year-on-year.
+15.8%
▲ +10.8%
▲ +26.1%
▲ +58.4%
RMB mn
13,175
15,556
2016 2017
Supplementary Major Medical Expenses Insurance
RMB mn
+18.1% 33,570
28,978
17
Surrender Rate
3.54%
4.13%
2016 2017
Persistency Rate
90.2% 90.9%
85.9% 85.7%
60%
65%
70%
75%
80%
85%
90%
95%
100%
2016.12.31 2017.12.31
14 Months 26 Months
Surrender Rate and Persistency Rate Remained Stable
Note: Surrender Rate = Surrender payment/(Liability of long-term insurance contracts at the beginning of the period + Premiums of long-term insurance contracts)
Policy persistency rate = in-force policies within the review month that are commenced 14/26 months prior to the review month / policies that are commenced
14/26 months prior to the review month
+0.59pp
18
Built a Technology-driven China Life, Promoted Reform and Transformation
Accelerated the development of a “Technology-driven China Life”, a client-oriented, internet- and AI-
based, responsive and reliable model; completed the new generation of integrated business
processing system, enabling the Company to transform and upgrade its operation and management.
Completed on-
line deployment
Advanced smart
and centralised
operations
Supported
transformation
of sales model
Launched smart
services
Established an advanced business structure
19
Advancement in Customer Service, Client Satisfaction Hit Historic High
Improved customer service capacity and fully launched digitalized and smart services.
Improved client relationship management capacity; precision services showed fruitful results.
Expanded the scope of services; client satisfaction hit historic high.
China Life Health Platform Client Activities Global VIP Services
20
Embarking on a New Journey of High-quality Development in the New Era
Transform and upgrade
sales management model
Lead in large- and
medium-sized cities
Emphasize risk prevention
Optimize business
structure
Build a
“Technology-
driven China
Life”
Steady
Growth
Value
centric
A client-oriented, big
service-led and
digitalized
operational and
management system
22
Net Premiums Earned
Total Revenues
Steady Growth in Revenues
Investment Income and Realized/Unrealized
Gains and Impairment Losses
426,230 506,910
2016 2017
540,781 643,355
2016 2017
RMB mn RMB mn
RMB mn
+18.9%
+19.0%
109,147
8,694
-2,656 -7,094
122,727
2,799
-2,757
6,183
Investment Income
Net RealizedSpread Income onFinancial Assets Impairment Losses
Net Fair ValueGains throughProfit or Loss
2016 2017
23
Underwriting and Policy
Acquisition Costs Ratio1 Administrative Expenses Ratio2
Continued Optimization of Costs Structure
9.62% 10.07%
2016 2017
5.89% 5.59%
2016 2017
Note:
1. Underwriting and Policy Acquisition Costs Ratio = Underwriting and Policy Acquisition Costs/Total Revenues
2. Administrative Expenses Ratio = Administrative Expenses/Total Revenues
3. Percentage of Administrative Expenses = Administrative Expenses/(Administrative Expenses + Underwriting and Policy Acquisition Costs)
Percentage of
Administrative Expenses3
37.98% 35.69%
2016 2017
24
Significant Increase in Profit
2017 2016 Change
Net Profit Attributable to Equity
Holders of the Company (RMB mn)
32,253 19,127 +68.6%▲
Weighted Average ROE 10.49% 6.16% +4.33pps▲
Earnings Per Share (RMB: Yuan)
1.13 0.66 +0.47▲
Dividends Per Share
(RMB: Yuan) 0.40Note 0.24 +0.16▲
Note: Subject to the approval by the 2017 Annual General Meeting.
25
2,696,951 2,897,591
2,389,303 2,572,281
303,621
320,933
4,027
4,377
2016.12.31 2017.12.31
Equity Attributable to Non-controlling Interests
Equity Attributable to Equity Holders of the Company
Total Liabilities
Total Assets
1,332,612 1,417,192
515,374 607,941
2016.12.31 2017.12.31
Residual Margin
Reasonable Estimates of Reserves & Risk Margin
Assets, Liabilities and Equity Holders’ Equity Reserves of Insurance Contracts
Assets and Liabilities
RMB mn RMB mn
1,847,986 2,025,133
2017.12.31 2016.12.31
26
Equity Holders’ Equity
Equity Holders’ Equity
303,621 320,933
32,253 135
(7,912) (7,164)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2016 Equity Attributable to Equity Holders of the
Company
Net Profit Attributable to Equity Holders of the
Company
Other Comprehensive Income
Other Equity Movements Dividends 2017 Equity Attributable to Equity Holders of the
Company
RMB mn
27
Core Solvency Ratio Comprehensive Solvency Ratio
Strong Solvency Position
280.34% 277.61%
2016.12.31 2017.12.31
297.16%
277.65%
2016.12.31 2017.12.31
29
Investment Assets (RMB mn)
31 December 2017 31 December 20161 Amount Percentage Change (%) Amount Percentage
Fixed-maturity Investments 2,094,289 80.81% 2.54% 1,920,125 78.27%
Term Deposit 449,400 17.34% -4.60% 538,325 21.94%
Bonds 1,188,606 45.86% 0.23% 1,119,388 45.63%
Debt-type Financial Products2 301,761 11.65% 6.27% 131,880 5.38%
Other Fixed-maturity Investments3 154,522 5.96% 0.64% 130,532 5.32%
Equity Investments 409,528 15.80% -1.37% 421,383 17.17%
Common Stocks 173,450 6.69% 0.98% 140,166 5.71%
Funds4 101,236 3.91% -0.98% 119,973 4.89%
Bank Wealth Management Products 40,327 1.56% -1.78% 81,854 3.34%
Other Equity Investments5 94,515 3.64% 0.41% 79,390 3.23%
Investment Properties 3,064 0.12% 0.07% 1,191 0.05%
Cash and Others6 84,771 3.27% -1.24% 110,584 4.51%
Total 2,591,652 100.00% 0.00% 2,453,283 100.00%
Investment Assets Allocation
Note:
1. The figures as at the end of last year were adjusted on the same basis.
2. Debt-type Financial Products include debt investment plans, trust schemes, project asset-backed plans, credit asset-backed securities, specialized asset management plans, asset management products, etc.
3. Other fixed-maturity investments include policy loans, statutory deposits, fixed-maturity bank wealth management products, and interbank deposits, etc.
4. Funds include equity funds, bond funds and money market funds, etc. of these, the balances of monetary market funds as at 31 December 2017 and 31 December 2016 were RMB 6.942 billion and RMB 13.609 billion respectively.
5. Other equity investments include private equity funds, unlisted equities, preferred shares, equity investment plans and specialized equity asset management plans, etc.
6. Cash and others include cash, cash at banks, short-term bank deposits and securities purchased under agreements to resell.
30
Net Investment Yield Gross Investment Yield
Significant Increase in Investment Yields
Comprehensive
Investment Yield
4.66% 4.91%
2016 2017
4.61%
5.16%
2016 2017
2.43%
4.55%
2016 2017
Note: Net investment yield = (Net investment income – interest expenses for securities sold under agreements to repurchase)/((Investment assets at the beginning of the period - securities sold
under agreements to repurchase at the beginning of the period + Investment assets at the end of the period - securities sold under agreements to repurchase at the end of the period)/2)
Gross investment yield = (Gross investment income - interest expenses for securities sold under agreements to repurchase)/((Investment assets at the beginning of the period - securities
sold under agreements to repurchase at the beginning of the period + Investment assets at the end of the period - securities sold under agreements to repurchase at the end of the
period)/2)
Comprehensive Investment Yield =(Gross investment income - interest expenses for securities sold under agreements to repurchase + net change in fair value of available-for-sale securities
recorded in other comprehensive income)/((Investment assets at the beginning of the period - securities sold under agreements to repurchase at the beginning of the period + Investment
assets at the end of the period - securities sold under agreements to repurchase at the end of the period)/2)
31
Enhanced Scale and Quality in Non-standard Investments
Seized the asset allocation opportunities presented by high
interest rates, with the new allocations towards fixed-income
assets amounting to over RMB 440 billion.
Mainly increased investments in fixed-income non-standard
assets; established investment positions in industry leaders
benefiting from the supply-side reform; and strengthened
investments in infrastructure. Newly added investments
totaled over RMB 200 billion for the whole year, with a
weighted average maturity of approximately seven years.
Over 95% of non-standard assets had an AAA external
rating. Of which, over 70% were invested in infrastructure,
finance, energy, transportation, electricity and municipal
utility industries.
21%
18%
14% 13%
11%
6%
4%
13%
基础设施
金融
能源
交通
不动产
电力
市政
其他行业
Maintained a prudent non-standard assets investment strategy
with well-controlled risks Non-standard Assets by Sector
Infrastructure
Finance
Energy
Transportation
Real Estate
Power
Municipal
Others
32
Synergy from Investments in Associated Company
Expanding synergy between China Life and China Guangfa Bank
Achieved RMB 4.186 billion investment income and 13.02% investment yield from
investment in CGB on the equity accounting basis.
CGB helped provide comprehensive and all-round financial products and services to our
clients.
CGB-China Life bancassurance business achieved 42% increase in premiums of new
policies, and 100% increase in first-year regular premiums
Issued over 1 million China Life – CGB debit cards and credit cards.
34
370,500
734,172
398,723
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Adjusted Net Worth Value of In-force Business (beforecost of required capital)
Cost of Required Capital Embedded Value
Components of Embedded Value (31 December 2017)
Components of Embedded Value
RMB mn
(35,050)
35
49,311
60,117
2016.12.31 2017.12.31
Embedded Value and Value of One Year’s Sales
349,528 370,500
302,530
363,673
2016.12.31 2017.12.31
Value of In-force Business (after cost ofrequired capital)
Adjusted Net Worth
RMB mn
734,172
652,057
+12.6%
▲ +20.2%
▲ +6.0%
RMB mn
Note: Value of one year’s sales is after cost of required capital.
Embedded Value Value of One Year’s Sales Value of One Year’s Sales
by Channel
+21.9%
RMB mn
Agent ChannelBancassurance ChannelGroup Channel
6,536
(10.9%)
53,170
(88.4%)
410
(0.7%)
36
652,057
734,172
52,472
60,117 529
(4,280) (5,926) (11,549) (459) (7,164) (1,625)
EV at thebeginning
ExpectedReturns
Value of OneYear's Sales
OperatingExperienceVariance
InvestmentExperienceVariance
Methodology,Model and
AssumptionChanges
Market Valueand Other
Adjustments
Exchange Gainsor Losses
ShareholderDividends and
Capital Injection
Others EV at 31December 2017
Embedded Value Movement of 2017
Embedded Value Movement Analysis
RMB mn
39
Honors and Awards in 2017
China Life Insurance (Group) Company, with China Life Insurance Company
Limited as a core subsidiary, has made it onto the Fortune Global 500 list for 15
consecutive years, ranking the 51st in 2017
China Life ranked 4th in “China’s Top 500 Most Valuable Brands 2017 (14th)”
with its brand value amounting to RMB 287.16 billion, helping it to sustain its
leading position in the insurance industry
Listed on the Forbes Global 2000 for 14 consecutive years, ranking 52nd in
2017
China Life and Chairman Yang Mingsheng received the “Best Investment Value
Award for Listed Companies” and the “Most Influential Leader of Listed
Companies” respectively of the “2017 China Securities Golden Bauhinia Awards”
organized by Ta Kung Wen Wei Media Group
Awarded the “Hong Kong Corporate Governance Excellence Award 2017” in the
Category for Hang Seng Index Constituent Companies
40
Corporate Social Responsibilities
Implemented supplementary major medical expenses insurance programs and administration for basic social
healthcare programs entrusted by local governments, covering 420 million and 97 million people, respectively
Donated RMB 40.14 million through the China Life Foundation to related organizations in 2017, mainly to
support targeted poverty alleviation projects and provide special donations for families who have lost their
only child
Sponsored orphans from Wenchuan earthquake, Yushu earthquake, Zhouqu mudslide and the Ludian
earthquake with RMB 2.33 million donations in 2017, held the 9th China Life Summer Camp, and provided
long-term consistent subsidies and emotional care for disaster-stricken orphans
China Life’s corporate culture and social responsibility concept:
“Success for you, Success by you”
Integrate social responsibilities
into customer services and
continue to improve service
quality and customer experience
Leverage the Company’s
business, network and
management advantages to
develop insurance products
beneficial to general public
Participate in public welfare
programs in a professional and
systematical manner to show
love and care and make sure we
contribute towards society
41
Sensitivity Analysis – Using 2016 EV Appraisal Assumptions
Sensitivity Analysis
RMB mn
Value of
In-force Business (after cost of required capital)
Value of
One Year’s Sales (after cost of required capital)
Using 2016 embedded
value appraisal
assumptions
357,052 60,114
42
Value of In-force Business
(after cost of required capital)
Value of One Year’s Sales
(after cost of required capital)
Sensitivity Analysis – Investment Return and Risk Discount Rate
(8,559)
(2,647)
60,117 2,848
8,573
InvestmentReturn-50bps
RiskDiscount
Rate +50bps
Base Case RiskDiscount
Rate -50bps
InvestmentReturn+50bps
363,673
(61,487)
(15,788)
16,949
61,781
InvestmentReturn-50bps
RiskDiscount
Rate +50bps
Base Case RiskDiscount
Rate -50bps
InvestmentReturn+50bps
RMB mn RMB mn
Note: Numbers may not be additive due to rounding.
43
Base 363,673
Morbidity Rates +/-10%
Lapse Rates +/-10%
Mortality Rates for Non-
Annuity Products +/-10%
Mortality Rates for
Annuity Products -/+10%
Expenses +/-10%
Sensitivity Analysis – Operational Assumptions
Note: Numbers may not be additive due to rounding.
-4,789
-2,560
-652
-4,737
4,788
2,555
464
4,775
-6,000 -4,000 -2,000 0 2,000 4,000 6,000
Sensitivity Analysis Results – Value of In-force Business (after cost of required capital)
RMB mn
44
Base 60,117
Morbidity Rates +/-10%
Lapse Rates +/-10%
Mortality Rates for Non-
Annuity Products +/-10%
Mortality Rates for
Annuity Products -/+10%
Expenses +/-10%
Sensitivity Analysis – Operational Assumptions (cont’d)
Sensitivity Analysis Results – Value of One Year’s Sales (after cost of required capital)
-3,239
-716
-968
-1,120
3,239
718
913
1,118
-4,000 -3,000 -2,000 -1,000 0 1,000 2,000 3,000 4,000
RMB mn
Note: Numbers may not be additive due to rounding.