China Life Insurance Company Limited (China Life) reported a net loss in the fourth quarter of 2025, despite achieving a full-year net profit of 154.078 billion yuan, which represents a year-on-year increase of 44.1%. The company’s management addressed this performance during its annual results briefing on March 26.

According to Li Mingguang, President of China Life, the loss in the fourth quarter was primarily due to structural adjustments in the capital market, which led to a decline in the value of some equities and funds held by the company. He emphasized that such fluctuations are mostly temporary and reflect market dynamics rather than the company’s long-term operational trend.

Li further explained that life insurance companies operate over long and cross-cyclical periods. China Life adheres to a value-investing and long-term investment approach. Both asset-liability management and investment strategies should be evaluated over extended time horizons, and he advised against overinterpreting single-quarter earnings.

Financial data show that China Life’s net profit attributable to shareholders reached 167.804 billion yuan in the first three quarters of 2025, up 60.5% year-on-year. For the full year, the figure stood at 154.078 billion yuan, an increase of 44.1% compared to the previous year.

The company’s investment performance remained strong overall. As of December 31, 2025, China Life’s investment assets totaled 7.42 trillion yuan, a 12.3% increase from the end of 2024. Allocations to bonds, time deposits, and credit-type financial products remained largely stable, while the proportion of equities and funds (excluding money market funds) rose from 12.18% at the end of 2024 to 16.89%. This shift was attributed to the company’s proactive increase in equity investments amid favorable market conditions. In 2025, China Life’s total investment income reached 387.694 billion yuan, an increase of 79.443 billion yuan from the previous year. The total investment return rate was 6.09%, up 59 basis points year-on-year.

During the briefing, global geopolitical risks stemming from the U.S.-Iran conflict were also highlighted as a focus for the company’s investment strategy. Liu Hui, Vice President and Board Secretary of China Life, noted that the company’s exposure to overseas assets is relatively small, limiting the impact on its overall portfolio. Nevertheless, the company is closely monitoring developments related to the conflict, as the situation remains uncertain.

Liu added that the company continuously assesses the effects of geopolitical events on energy prices, inflation expectations, and global asset pricing. As an insurance fund, China Life will leverage the stability of long-term capital to dynamically adjust its asset allocation strategy, seize opportunities amid market fluctuations, and invest in high-quality core assets to achieve steady long-term returns.