New China Life Insurance braces for 60% drop in H1 net profit

It made the preliminary announcement through a bourse announcement.

New China Life Insurance Company Ltd. estimates that its net profits for the first half of the year will be down by 50% to 60%, according to a stock exchange announcement.

“It is estimated that the net profit attributable to the shareholders of the Company for the first half of 2022 reached around RMB4,218 million to RMB5,273 million, down by around CN¥5.2b ($770m) to CN¥6.3b ($930m), representing a decrease of around 50% to 60% as compared to the same period in 2021,” the insurer said.

After deducting non-recurring items, H1 net profit attributable to the shareholders reached $620m to $770m, a decrease of around 50% to 60%.

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New China Life Insurance attributed the loss to low investment returns affected by a gloomy capital market which resulted in a dramatic decrease in net profits in H1 for the company.

The insurer said that there are no material uncertainties in the Company that may affect the accuracy of the estimated results. 

“The estimated results of the first half of 2022 of the company are based on the Company’s preliminary financial data. The detailed and accurate financial data will be duly disclosed in the interim report 2022 of the Company,” it said.