[ET Net News Agency, 7 December 2018] Nomura lowered its target price for China Life
Insurance (02628) to HK$22.45 from HK$28.21 and maintained its "buy" rating.
The research house expects China Life's NBV to decline 12% in 2018, implying 15% growth
in 2H. It believes NBV growth will be lower than peers, mainly because of contraction in
FYP margin of individual agent channel.
China Life launched a 4.025% guaranteed return annuity (versus 3.5% in 2018) with
15-year term life in the 2019 open year pre-sale campaign. Nomura expects its pre-sale FYP
will grow by double-digits, stronger than the peers who de-emphasised the open year sale
campaign.
Nomura expects FYP growth to flatten in FY2019 and NBV growth of 4% after a decline in
2018. (KL)