SUMMARY OF SOLVENCY QUARTERLY REPORT OF INSURANCE COMPANYNOTE

(FIRST QUARTER OF 2022)

COMPANY PROFILE AND CONTACT INFORMATION

Name of the Company in Chinese: 中國人壽保險股份有限公司
Name of the Company in English: China Life Insurance Company Limited
Legal Representative: Yuan Changqing (performing duties as the acting legal representative)1
Registered Address: 16 Financial Street, Xicheng District, Beijing, P.R. China Registered Capital

Registered Capital (Working Capital):

RMB28.265 billion

Note:

This summary of solvency quarterly report is prepared in accordance with the relevant requirements under the "Solvency Regulatory Rules II for Insurance Companies" issued by the China Banking and Insurance Regulatory Commission (the "CBIRC") and the notice for defining the policy of transitional period for the implementation by life insurance companies of the "Solvency Regulatory Rules for Insurance Companies No 15: Public Disclosure of Solvency Information" issued by the Solvency Supervision Department of the CBIRC.

1

Mr. Yuan Changqing, a Non-Executive Director of the Company, was elected at the sixth meeting of the seventh session of the Board of Directors of the Company on January 13, 2022 to assume the roles and duties of the Chairman of the Board and the legal representative of the Company during the period commencing from the date of passing of the Board resolution and ending on the effective date of the appointment of a new Chairman of the Board.

1

Corporate License Number of Insurance Institution (Insurance Business License):

No. 000005

Business Commencement Date:

June 30, 2003

Business Scope:

Life, health, accident and other types of personal insurance businesses; reinsurance of the personal insurance businesses; funds management business permitted by national laws and regulations or approved by the State Council; personal insurance services, consulting and agency businesses; sale of securities investment funds; other businesses approved by the national insurance regulatory departments.

Business Area:

the People's Republic of China, for the purpose of this report, excluding the Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan region (the "PRC")

Contact Name:

He Zheng

Contact Office Telephone Number:

010-63631371

Contact Mobile Phone Number:

13671210021

Contact Email Address:

c-rossinfo@e-chinalife.com

2

1.

STATEMENT BY THE BOARD OF DIRECTORS AND THE MANAGEMENT

This report has been approved by the Board of Directors of the Company. The Board of Directors and the management of the Company warrant that the information contained in this report is true, accurate, complete and legally compliant and there are no false representations, misleading statements contained in or material omissions from this report, and severally and jointly accept legal responsibility for the above.

The statement is hereby given.

China Life Insurance Company Limited

April 27, 2022

(1)

Voting by all Directors on the quarterly report

Name of Directors

For

Against

Abstain

Su Hengxuan ✓
Li Mingguang ✓
Huang Xiumei ✓
Yuan Changqing ✓
Wang Junhui ✓
Tang Xin ✓
Leung Oi-Sie Elsie ✓
Lam Chi Kuen ✓
Zhai Haitao ✓
Total 9
(2)

Is there any Director who is unable to warrant the truthfulness, accuracy, completeness and compliance of the information contained in the quarterly report or has a dissenting opinion on this? (Yes ☐ No ☒)

3

2.

BASIC INFORMATION

(1)

Shareholding Structure, Shareholders and Their Changes During the Reporting Period

1)

Shareholding structure and its changes

Unit: Ten thousand shares

Category

At the beginning of the period Changes in the number of shares or shareholding
percentage during the period		 At the end of the period
Shares or
capital
contribution		 Percentage (%) Capital
injection by
shareholders		 Capital reserve
transfer and
distribution of
dividend		 Equity
transfer		 Sub-total Shares or
capital
contribution		 Percentage (%)

RMB ordinary shares

2,082,353 73.67 - - - - 2,082,353 73.67

Overseas listed foreign shares

744,118 26.33 - - - - 744,118 26.33

Total

2,826,471 100.00 - - - - 2,826,471 100.00
Note:

Currently, there is no feature in the shareholders' information enquiry platform that can track down the type of shareholders according to the classification of "state-owned shares, corporate legal shares, foreign invested shares and natural person shares". As such, the above information is presented by the Company based on the shareholding structure as disclosed in its annual report.

2)

Effective controller

The effective controller of the Company is the Ministry of Finance of the PRC. As at the end of the reporting period, the equity and controlling relationship between the Company and its effective controller is set out below:

4

3)

Top ten shareholders (in the descending order of their shareholding percentage in the Company as at the end of the period)

Unit: Ten thousand shares

Name of shareholder

Nature of

shareholder

Changes in the
number of shares
held by the
shareholder or the
amount of capital
contribution
during the period		 Number of shares
held by the
shareholder or the
amount of capital
contribution
as at the end
of the period		 Shareholding
percentage as
at the end
of the period		 Number of shares
pledged or frozen

China Life Insurance (Group) Company

State-owned legal person - 1,932,353 68.37 % -

HKSCC Nominees Limited

Overseas legal person 28 732,821 25.93 % -

China Securities Finance Corporation Limited

State-owned legal person - 70,824 2.51 % -

Central Huijin Asset Management Limited

State-owned legal person - 11,717 0.41 % -

Hong Kong Securities Clearing Company Limited

Overseas legal person -774 4,937 0.17 % -

Guosen Securities Co., Ltd. - Founder Fubon CSI Insurance Theme Index Security Investment Fund

Other 71 2,305 0.08 % -

China Universal Asset Management Co., Ltd - Industrial and Commercial Bank of China Limited - China Universal - Tianfu Bull No. 53 Asset Management Plan

Other - 1,502 0.05 % -

Industrial and Commercial Bank of China Limited - SSE 50 Exchange Traded Index Securities Investment Fund

Other -266 1,152 0.04 % -

Li Zhuo

Domestic natural person 70 1,023 0.04 % -

China International Television Corporation

State

-owned legal person

- 1,000 0.04 % -

Details of shareholders

1.  HKSCC Nominees Limited is a company that holds shares on behalf of the clients of the Hong Kong stock brokers and other participants of the CCASS system. Since the relevant regulations of the Stock Exchange do not require such persons to declare whether their shareholdings are pledged or frozen, HKSCC Nominees Limited is unable to calculate or provide the number of shares that are pledged or frozen.

2.  China Universal Asset Management Co., Ltd - Industrial and Commercial Bank of China Limited - China Universal - Tianfu Bull No. 53 Asset Management Plan has Industrial and Commercial Bank of China Limited as its asset trustee. Industrial and Commercial Bank of China Limited - SSE 50 Exchange Traded Index Securities Investment Fund has Industrial and Commercial Bank of China Limited as its fund depositary. Save as above, the Company was not aware of any connected relationship and concerted parties as defined by the "Measures for the Administration of the Takeover of Listed Companies" among the top ten shareholders of the Company.

5

4)

Shareholdings of the Directors, Supervisors and senior management

No relevant circumstance occurred during the reporting period.

5)

Equity transfer during the reporting period

No relevant circumstance occurred during the reporting period.

(2)

Directors, Supervisors and Senior Management of the Head Office

1.

Basic information of the Directors, Supervisors and senior management of the head office

1)

Basic information of the Directors

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Su Hengxuan February 1963 Doctoral degree in Management As Executive Director since December 2018 and as President since April 2019 Executive Director, President

Yin Bao Jian Xu Ke (2018) No. 562

Yin Bao Jian Xu Ke (2019) No. 401

Vice President of China Life Insurance (Group) Company

Director of China Guangfa Bank Co., Ltd.

Director of China Life Property and Casualty Insurance Company Limited

Director of China Life Pension Company Limited

Director of China Life Asset Management Company Limited

Mr. Su became an Executive Director of the Company in December 2018. He has been the President of the Company since April 2019, the Vice President of China Life Insurance (Group) Company since December 2017 and a Director of China Guangfa Bank Co., Ltd. since September 2020. He was the President of China Life Pension Company Limited from March 2015 to February 2018.

6

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Li Mingguang July 1969 Master's degree in Economics, EMBA for the senior management As Executive Director since August 2019, as Vice President since November 2014, as Chief Actuary since March 2012 and as Board Secretary since June 2017 Executive Director, Vice President, Chief Actuary, Board Secretary

Jing Yin Bao Jian Fu (2019) No. 635

Bao Jian Xu Ke (2014) No. 918

Bao Jian Shou Xian (2012) No. 187

Bao Jian Xu Ke (2017) No. 664

Chief Actuary of China Life Pension Company Limited

Director of China Life Asset Management Company Limited

Mr. Li became an Executive Director of the Company in August 2019. He has been the Vice President of the Company since November 2014, the Chief Actuary of the Company since March 2012, the Chief Actuary of China Life Pension Company Limited since May 2012, and the Board Secretary of the Company since June 2017.
Huang Xiumei June 1967 Bachelor's degree As Executive Director since July 2021 and as Vice President and the Person in Charge of Finance since May 2020 Executive Director, Vice President, the Person in Charge of Finance

Jing Yin Bao Jian Fu (2020) No. 232

Jing Yin Bao Jian Fu (2020) No. 261

Director of China Life Asset Management Company Limited

Director of Sino-Ocean Group Holding Limited

Director of China Life Franklin Asset Management Company Limited

Ms. Huang became an Executive Director of the Company in July 2021. She has been the Vice President and the Person in Charge of Finance of the Company since May 2020, a Director of China Life Asset Management Company Limited since June 2021, a Director of Sino-Ocean Group Holding Limited since March 2021, a Director of China Life Franklin Asset Management Company Limited since February 2021. From 2018 to 2021, she served as a Director of China Life Pension Insurance Company. From 2016 to 2020, she served as the Vice President, the Board Secretary and the Person in Charge of Finance of China Life Pension Insurance Company.

7

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Yuan Changqing September 1961 Master's degree in Business Administration February 2018 Non- executive Director Bao Jian Xu Ke (2018) No. 196

Vice Chairman and President of China Life Insurance (Group) Company

Chairman of China Life Asset Management Company Limited

Chairman of China Life Property and Casualty Insurance Company Limited

Vice Chairman of the China Chamber of International Commerce

Honorary Chairman of China Life Foundation

Vice Chairman of the National Association of Financial Market Institutional Investors

Mr. Yuan became a Non- executive Director of the Company in February 2018. He is the Deputy Secretary to the Party Committee, Vice Chairman and President of China Life Insurance (Group) Company. Mr. Yuan served as the Deputy Secretary to the Party Committee and the Chairman of the Supervisory

Committee of Agricultural Bank of China Limited from April 2015 to May 2017.

8

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Wang Junhui July 1971 Doctoral degree in Finance August 2019 Non- executive Director Jing Yin Bao Jian Fu (2019) No. 635

Chief Investment Officer of China Life Insurance (Group) Company

President and Director of China Life Asset Management Company Limited

Non-executive Director of China Life Property and Casualty Insurance Company Limited

Director of China Life Insurance (Overseas) Company Limited

Chairman of China Life AMP Asset Management Company Limited

Director of China United Network Communications Limited

Director of China Shimao Investment Company Limited

Director of China World Trade Center Limited

Chairman of the Insurance Asset Management Association of China

Executive Director of the Insurance Association of China

Mr. Wang became a Non- executive Director of the Company in August 2019. He has been the Chief Investment Officer of China Life Insurance (Group) Company and the President of China Life Asset Management Company Limited since August 2016. He has been a Director of China Life Insurance (Overseas) Company Limited since June 2020, the Chairman of China Life Franklin Asset Management Company Limited since September 2016, and the Chairman of China Life AMP Asset Management Company Limited since December 2016.

9

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Tang Xin September 1971 Doctoral degree in Law March 2016 Independent Director Bao Jian Xu Ke (2016) No. 150

Head of the Commercial Law Research Center of Tsinghua University

Member of the Listing Committee of the Shanghai Stock Exchange

Chairman of the Independent Director Committee of the China Association for Public Companies

Member of the Legal Professional Advisory Committee of the Shenzhen Stock Exchange

Member of the Legislative Affair Committee of the Asset Management Association of China

Independent Director of Harvest Fund Management Co., Ltd.

Independent Director of Bank of Guizhou Co., Ltd.

Mr. Tang became an Independent Director of the Company in March 2016.

10

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Leung Oi-Sie Elsie April 1939 Master's degree in Law July 2016 Independent Director Bao Jian Xu Ke (2016) No. 717

Consultant of Iu, Lai & Li Solicitors & Notaries

Consultant of Fok Ying Tung Ming Yuan Development Company Limited

Independent Non-executive Director of China Resources Power Holdings Company Limited

Independent Non-executive Director of PetroChina Company Limited

Ms. Leung became an Independent Director of the Company in July 2016.
Lam Chi Kuen April 1953 Higher Diploma in Accounting June 2021 Independent Director Yin Bao Jin Fu (2021) No. 503

Independent Non-executive Director of China Cinda Asset Management Co., Ltd.

Independent Non-executive Director of Luks Group (Vietnam Holdings) Company Limited

Mr. Lam became an Independent Director of the Company in June 2021.
Zhai Haitao January 1969 Master's degrees in International Affairs and Business Administration October 2021 Independent Director Yin Bao Jin Fu (2021) No. 778

President and Founding Partner of Primavera Capital Group

Independent Director of China Everbright Environment Group Limited

Independent Director of China Everbright Water Limited

Independent Director of Lianyin Venture Capital Co., Ltd.
(a wholly-owned subsidiary of China UnionPay Group)

Mr. Zhai became an Independent Director of the Company in October 2021.

11

2)

Basic information of the Supervisors

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Jia Yuzeng June 1962 Master's degree in Business Administration July 2018 Chairman of the Board of Supervisors Yin Bao Jian Xu Ke (2018) No. 562

Executive Director of the Insurance Society of China

Director of China Insurance Security Fund Co., Ltd.

Mr. Jia became the Chairman of the Board of Supervisors of the Company in July 2018. From 2013 to 2018, he served as the Vice President and the Board Secretary of China Life Pension Company Limited.
Cao Qingyang May 1963 Doctoral degree in Economics July 2019 Employee Representative Supervisor Jing Yin Bao Jian Fu (2019) No. 492 Mr. Cao became a Supervisor of the Company in July 2019. He has been the General Manager of the Product Development Department of the Company since February 2011.
Wang Xiaoqing October 1965 Bachelor's degree in Engineering December 2019 Employee Representative Supervisor Jing Yin Bao Jian Fu (2019) No. 1110 Ms. Wang became a Supervisor of the Company in December 2019. She has successively served as the Deputy General Manager and the General Manager of the Risk Management Department of the Company since April 2018. She served as the Secretary to the Discipline Inspection Committee of Tibet Autonomous Region Branch of the Company from May 2016 to April 2018.

12

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Lai Jun May 1964 Bachelor's degree October 2021 Employee Representative Supervisor

Yin Bao

Jian Fu (2021)

No. 778

Mr. Lai became a Supervisor of the Company in October 2021. He has been the General Manager of the Human Resources Department of the Company since May 2021. From 2015 to 2021, he successively served as the Person in Charge, the Deputy General Manager (responsible for daily operations) and the General Manager of Hainan Branch, as well as the General Manager of Xinjiang Branch of

the Company.

Niu Kailong September 1974 Doctoral degree in Economics October 2021 Non-
Employee Representative Supervisor 		Yin Bao Jian Fu (2021) No. 778

General Manager of the Strategic Planning

Department of China Life Insurance (Group) Company

President of China Life Institute of Finance

Mr. Niu became a Supervisor of the Company in October 2021.

13

3)

Basic information of the senior management of the head office

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Ruan Qi July 1966 EMBA for the senior management April 2018 Vice President

Yin Bao Jian Xu Ke (2018)

No. 63

Mr. Ruan became the Vice President of the Company in April 2018. He served as the Chief Information Technology Officer of the Company from January 2018 to April 2018. He served as the Chief Information Technology Officer and the General Manager (at the general manager level of the provincial branches) of the Information Technology Department of the Company from October 2016 to January 2018.
Zhan Zhong July 1968 Bachelor's degree in Engineering July 2019 Vice President

Jing Yin Bao Jian Fu (2019)

No. 493

Director of Sino-Ocean Group Holding Limited Mr. Zhan became the Vice President of the Company in July 2019. He served as the Marketing Director of the Company from August 2017 to July 2019, and the General Manager of the Individual Insurance Sales Department of the Company from July 2014 to August 2019. He served as an Employee Representative Supervisor of the Company from July 2015 to August 2017.

14

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Yang Hong February 1967 EMBA for the senior management July 2019 Vice President

Jing Yin Bao Jian Fu (2019)

No. 493

Ms. Yang became the Vice President of the Company in July 2019. She served as the Operation Director of the Company from March 2018 to July 2019, and the General Manager of the Operation and Service Center of the Company from January 2018 to August 2019. She successively served as the Deputy General Manager (responsible for daily operations) and General Manager of the Research and Development Center, the General Manager (at the general manager level of the provincial branches) of the Business Management Department, and the General Manager (at the general manager level of the provincial branches) of the Process and Operation Management Department of the Company from 2011 to 2018.
Zhao Guodong November 1967 Bachelor's degree October 2019 Assistant to the President

Jing Yin Bao Jian Fu (2019)

No. 851

Mr. Zhao became an Assistant to the President of the Company in October 2019. He has been the General Manager of Jiangsu Branch of the Company since July 2018. During the period from 2016 to 2018, he successively served as the Deputy General Manager (responsible for daily operations) and the General Manager of Chongqing Branch, and the General Manager of Hunan Branch of the Company.

15

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Liu Yuejin April 1967 Bachelor's degree in Economics June 2021 Assistant to the President

Yin Bao

Jian Fu (2021)

No. 445

Mr. Liu became an Assistant to the President of the Company in June 2021. He has been the General Manager of Guangdong Branch of the Company since March 2020. During the period from November 2017 to March 2020, he served as the General Manager of Chongqing Branch of the Company. From 2012 to 2017, he successively served as the Deputy General Manager of Shanxi Branch and the Deputy General Manager (responsible for daily operations) and the General Manager of Guizhou Branch of the Company.
Zhang Di January 1968 Bachelor's degree in Engineering As the Assistant to the President since December 2021 and as the Chief Investment Officer since January 2022 Assistant to the President, Chief Investment Officer

Yin Bao

Jian Fu (2021)

No. 1034

Director of China Guangfa Bank Co., Ltd.

Director of COFCO Futures Company Limited

Ms. Zhang became an Assistant to the President of the Company in December 2021. She has been the Chief Investment Officer of the Company since January 2022. She successively served as the Deputy General Manager (responsible for daily operations) and the General Manager of the Investment Management Department, and the General Manager of the Investment Management Center of the Company from July 2016.

16

Name

Month and

year of birth

Academic
qualification
(degree)

Month and year
of commencement

Position

Approval
document No.
for job
qualification

Positions and

part-time jobs held in
affiliates and other entities

Key working experience
in the recent five years

Xu Chongmiao October 1969 Doctoral degree in Law July 2018 Compliance Officer

Yin Bao Jian Xu Ke (2018)

No. 593

Mr. Xu became the Compliance Officer of the Company in July 2018. He has been the General Manager of the Legal and Compliance Department and the Legal Officer of the Company since September 2014.
Liu Fengji October 1969 EMBA for the senior management December 2021 Person in Charge of Audit

Yin Bao

Jian Fu (2021)

No. 1032

Mr. Liu became the Person in Charge of Audit of the Company in December 2021. During the period from October 2021 to December 2021, he served as a temporary Person in Charge of Audit of the Company. He has been the General Manager of the Audit Department of the Company since February 2021. During the period from February 2018 to February 2021, he served as the General Manager of Tianjin Branch of the Company. From 2016 to 2018, he successively served as the Person in Charge, the Deputy General Manager (responsible for daily operations) and the General Manager of Qinghai Branch of the Company.

All information set forth in the table 1) -3) is as at the end of the reporting period, and this table only provides the basic information of the senior management officers of the Head Office who are not Directors or Supervisors. For details of other senior management officers of the Head Office, please refer to the tables under the basic information of the Directors and Supervisors.

17

2.

The changes of the Directors, Supervisors and senior management during the reporting period and as at the disclosure date of this report:

1)

As considered by the Directors at the sixth meeting of the seventh session of the Board of Directors of the Company held on January 13, 2022, given that Mr. Wang Bin, a former Executive Director of the Company, was under the disciplinary review and investigation by the Central Commission for Discipline Inspection and the National Supervisory Commission for suspected serious violation of disciplines and laws, he was not able to perform his role and duties as the Chairman of the Board. In accordance with the Articles of Association, Mr. Yuan Changqing, a Non-executive Director of the Company, was elected to assume the roles and duties of the Chairman of the Board and the legal representative of the Company during the period commencing from January 13, 2022 and ending on the effective date of appointment of a new Chairman of the Board.

2)

The Board of Directors of the Company received a resignation letter from Mr. Wang Bin on February 23, 2022. As Mr. Wang Bin was not able to perform his role and duties as a Director, he resigned from his positions as the Chairman of the Board and an Executive Director of the Company. The resignation took effect on the same day.

3)

As Mr. Tang Xin had served as an Independent Director of the Company for six consecutive years, he tendered his resignation from such position to the Board of Directors of the Company on March 6, 2022 pursuant to the relevant regulations. Since the resignation of Mr. Tang Xin will result in the number of Independent Directors falling below the minimum number required by the relevant regulations and the Articles of Association, Mr. Tang Xin will continue to perform his duties as an Independent Director until the qualification of a new Independent Director is approved by the CBIRC.

4)

At the eighth extraordinary meeting of the third session of the employee representative meeting of the Company, Ms. Hu Zhijun was elected as an Employee Representative Supervisor of the seventh session of the Board of Supervisors of the Company. The qualification of Ms. Hu Zhijun as a Supervisor is still subject to the approval of the CBIRC.

18

(3)

Subsidiaries, Joint Ventures and Associated Corporations

Unit: RMB million

Company name

Type of
company		 Number of shares held or cost Shareholding percentage
At the
beginning
of the period		 At the end
of the period		 Change in
amount		 At the
beginning
of the period		 At the end
of the period		 Change in
percentage

1

China Life Asset Management Company Limited

Subsidiary 1,680 1,680 - 60.00 % 60.00 % -

2

China Life Pension Company Limited

Subsidiary 2,626 2,626 - 70.74 % 70.74 % -

3

China Life Sales Company Limited

Subsidiary - - - 90.81 % 90.81 % -

4

Wuhu Yuanxiang Tianyi Investment Management Partnership (Limited Partnership)

Subsidiary 548 548 - 99.98 % 99.98 % -

5

Wuhu Yuanxiang Tianfu Investment Management Partnership (Limited Partnership)

Subsidiary 548 548 - 99.98 % 99.98 % -

6

Shanghai Yuan Shu Yuan Pin Investment Management Partnership (Limited Partnership)

Subsidiary 571 571 - 99.98 % 99.98 % -

7

Shanghai Yuan Shu Yuan Jiu Investment Management Partnership (Limited Partnership)

Subsidiary 571 571 - 99.98 % 99.98 % -

8

Shanghai Wansheng Industry Partnership (Limited Partnership)

Subsidiary 4,024 4,036 12 99.98 % 99.98 % -

9

Shanghai Rui Chong Investment Co., Limited

Subsidiary 6,100 6,100 - 100.00 % 100.00 % -

10

Ningbo Meishan Bonded Port Area Guo Yang Guo Sheng Investment Partnership (Limited Partnership)

Subsidiary 2,835 2,835 - 90.00 % 90.00 % -

11

Ningbo Meishan Bonded Port Area Bai Ning Investment Partnership (Limited Partnership)

Subsidiary 1,680 1,680 - 99.98 % 99.98 % -

12

Golden Phoenix Tree Limited

Subsidiary - - - 100.00 % 100.00 % -

13

Sunny Bamboo Limited

Subsidiary 1,876 1,876 - 100.00 % 100.00 % -

14

Golden Bamboo Limited

Subsidiary 1,993 1,993 - 100.00 % 100.00 % -

19

Company name

Type of
company		 Number of shares held or cost Shareholding percentage
At the
beginning
of the period		 At the end
of the period		 Change in
amount		 At the
beginning
of the period		 At the end
of the period		 Change in
percentage

15

Fortune Bamboo Limited

Subsidiary 2,435 2,435 - 100.00 % 100.00 % -

16

Glorious Fortune Forever Limited

Subsidiary - - - 100.00 % 100.00 % -

17

China Life Qihang Phase I (Tianjin) Equity Investment Fund Partnership (Limited Partnership)

Subsidiary 6,066 6,066 - 99.99 % 99.99 % -

18

China Life Guangde (Tianjin) Equity Investment Fund Partnership (Limited Partnership)

Subsidiary 616 616 - 99.95 % 99.95 % -

19

China Life (Suzhou) Pension and Retirement Investment Company Limited

Subsidiary 2,181 2,181 - 100.00 % 100.00 % -

20

China Life (Beijing) Health Management Company Limited

Subsidiary 1,530 1,530 - 100.00 % 100.00 % -

21

Beijing China Life Pension Industry Investment Fund (Limited Partnership)

Subsidiary 504 504 - 99.90 % 99.90 % -

22

New Aldgate Limited

Subsidiary 1,168 1,168 - 100.00 % 100.00 % -

23

CL Hotel Investor, L.P.

Subsidiary 285 285 - 100.00 % 100.00 % -

24

CBRE Global Investors U.S. Investment I, LLC

Subsidiary 4,111 4,111 - 99.99 % 99.99 % -

25

COFCO Futures Company Limited

Associated
corporation 		1,339 1,339 - 35.00 % 35.00 % -

26

CCB Trust Sharing No. 9 Urbanization Investment Private Equity Fund

Associated
corporation 		1,188 1,188 - 30.57 % 30.57 % -

27

AVIC Investment Holding Limited

Associated
corporation 		6,000 6,000 - 16.70 % 16.70 % -

28

China Life Property and Casualty Insurance Company Limited

Associated
corporation 		6,000 6,000 - 40.00 % 40.00 % -

29

China United Network Communications Limited

Associated
corporation 		21,801 21,801 - 10.2946 % 10.2957 % 0.0011 %

20

Company name

Type of
company		 Number of shares held or cost Shareholding percentage
At the
beginning
of the period		 At the end
of the period		 Change in
amount		 At the
beginning
of the period		 At the end
of the period		 Change in
percentage

30

China Power Investment Nuclear Power Co., Ltd.

Associated
corporation 		8,000 8,000 - 26.76 % 26.76 % -

31

Wonders Information Co., Ltd.

Associated
corporation 		3,298 3,298 - 18.21 % 18.21 % -

32

Shanghai Jinshida Winning Software Technology Co., Limited

Associated
corporation 		192 192 - 18.31 % 18.31 % -

33

GLP Guoyi (Zhuhai) Acquisitions Fund (Limited Partnership)

Associated
corporation 		7,301 7,301 - 81.63 % 81.63 % -

34

Sinopec Sichuan to East China Gas Pipeline Co., Ltd.

Associated
corporation 		20,000 20,000 - 43.86 % 43.86 % -

35

China Guangfa Bank Co., Ltd.

Associated
corporation 		45,174 53,199 8,025 43.69 % 43.69 % -

36

Annoroad Gene Technology (Beijing) Co., Ltd.

Associated
corporation 		250 250 - 13.09 % 13.09 % -

37

Sino-Ocean Group Holding Limited

Associated
corporation 		11,246 11,246 - 29.59 % 29.59 % -

38

Shandong New and Old Kinetic Energy Conversion China Life High-end Equipment Equity Investment Fund Partnership (Limited Partnership)

Joint
venture 		10 10 - 79.00 % 79.00 % -

39

Nanning China Life Shenrun Investment Development Fund Partnership (Limited Partnership)

Joint
venture 		3,780 3,780 - 60.00 % 60.00 % -

40

Jiangsu China Life Jiequan Equity Investment Center (Limited Partnership)

Joint
venture 		1,416 1,806 390 60.00 % 60.00 % -

21

Company name

Type of
company		 Number of shares held or cost Shareholding percentage
At the
beginning
of the period		 At the end
of the period		 Change in
amount		 At the
beginning
of the period		 At the end
of the period		 Change in
percentage

41

China Life Vanke No. 1 (Jiaxing) Health Pension Industrial Investment Partnership (Limited Partnership)

Joint
venture 		195 195 - 59.82 % 59.82 % -

42

China Life Vanke No. 2 (Jiaxing) Health Pension Industrial Investment Partnership (Limited Partnership)

Joint
venture 		195 195 - 59.82 % 59.82 % -

43

China Life Qiaocheng (Shenzhen) Investment Partnership (Limited Partnership)

Joint
venture 		8,817 8,817 - 84.99 % 84.99 % -

44

China Life Haikong (Hainan) Healthy Investment Co., Ltd.

Joint
venture 		230 230 - 51.00 % 51.00 % -

45

China Life (Sanya) Health Investments Co., Ltd.

Joint
venture 		306 306 - 51.00 % 51.00 % -

46

Beijing China Life Communications Construction City Development Investment Fund (Limited Partnership)

Joint
venture 		14,956 14,956 - 50.00 % 50.00 % -

47

RXR 1285 Holdings JV LLC

Joint
venture 		1,290 1,290 - 51.55 % 51.55 % -

22

(4)

Violation of Laws and Regulations

1)

Administrative punishments imposed on the Company by financial regulators and other governmental departments during the reporting period:

The administrative punishments have been disclosed on the official website of the Company. For specific information, please logon to the official website of the Company (www.e-chinalife.com, route query: Home Page - Public Information Disclosure - Information of Significant Events) for inspection.

2)

Administrative punishments imposed on the Directors, Supervisors and senior management of the Head Office of the Company by financial regulators and other governmental departments during the reporting period:

No relevant circumstance occurred during the reporting period.

3)

Violation of laws by the Directors, Supervisors, management officers at the departmental level of the Head Office or above and senior management officers of the provincial branches of the Company during the reporting period that resulted in them being transferred to judicial authorities:

During the reporting period, based on the information disclosed on January 8, 2022 on the website of the Central Commission for Discipline Inspection and the National Supervisory Commission, Mr. Wang Bin, the former Secretary to the Party Committee and the former Chairman of the Board of Directors of China Life Insurance (Group) Company, is currently under the disciplinary review and investigation by the Central Commission for Discipline Inspection and the National Supervisory Commission for suspected serious violation of disciplines and laws.

4)

Regulatory measures adopted by the CBIRC against the Company during the reporting period:

During the reporting period, there was no circumstance where the CBIRC adopted major regulatory measures against the Company.

23

3.

KEY INDICATORS

(1)

Solvency Ratio Indicators

Unit: RMB million

Name of Indicators

Figures of the
Current Quarter		 Figures of the
Preceding
QuarterNote		 Predicted
figures of the
Following
Quarter
under the
Basic Scenario

Admitted assets

4,846,631 4,827,564 4,923,574

Admitted liabilities

3,766,877 3,771,796 3,826,304

Actual capital

1,079,754 1,055,768 1,097,270

Core Tier 1 capital

712,155 1,020,756 726,356

Core Tier 2 capital

57,042 - 60,625

Supplementary Tier 1 capital

308,574 35,012 308,281

Supplementary Tier 2 capital

1,983 - 2,008

Minimum capital for quantitative risk

442,949 412,531 445,767

Minimum capital for control risk

-6,866 -10,190 -6,909

Additional minimum capital

- - -

Minimum capital

436,083 402,341 438,857

Core solvency surplus

333,114 618,415 348,124

Comprehensive solvency surplus

643,671 653,427 658,413

Core solvency ratio

176.39 % 253.70 % 179.33 %

Comprehensive solvency ratio

247.60 % 262.41 % 250.03 %
Note:

The figures of the preceding quarter are the results of solvency data for the fourth quarter of 2021 as calculated according to the "Solvency Regulatory Rules for Insurance Companies (No.1-17)" (hereinafter referred to as the "C-ROSS (Phase I) Regulation".

24

(2)

Regulatory and Monitoring Indicators of Liquidity Risk

Unit: RMB million

Name of Indicators

Figures of the
Current Quarter

Liquidity coverage ratio

Overall liquidity coverage ratio of the Company under the basic scenario1 (LCR1)

within 3 months

134 %

within 12 months

109 %

Overall liquidity coverage ratio of the Company under the stressed scenario2 (LCR2)

within 3 months

591 %

within 12 months

187 %

Liquidity coverage ratio without considering asset realization under the stressed scenario3 (LCR3)

within 3 months

107 %

within 12 months

83 %

Overall liquidity coverage ratio of the Company under the self-testing stressed scenario2 (LCR2)

within 3 months

581 %

within 12 months

190 %

Liquidity coverage ratio without considering asset realization under the self-testing stressed scenario3 (LCR3)

within 3 months

112 %

within 12 months

90 %

Backtracking adverse deviation rate of net cash flow from operating activities4

 17 %

Cumulative net cash flow of the current year

22,237

Net cash flow of the preceding fiscal year

2,901

Net cash flow of the fiscal year prior to the preceding fiscal year

1,890

Net cash flow from operating activities5

 179,572

Net cash flow from operating activities of participating account6

 15,599

Net cash flow from operating activities of universal account7

 19,574

Proportion of cash and liquidity management tools8

 2.09 %

Quarterly average of financing leverage ratio9

 2.71 %

Proportion of domestic fixed-income assets under (including) class AA10

 0.28 %

Proportion of listed stock investment with

a shareholding of over 5%11

 0.79 %

Proportion of receivables12

 1.12 %

Proportion of holding related-party assets13

 2.12 %

25

Notes:

1.

Overall liquidity coverage ratio of the Company under the basic scenario = (Cash inflows of the Company under the basic scenario + Book value of cash and cash equivalents at the valuation date) ÷ Cash outflows of the Company under the basic scenario × 100%

2.

Overall liquidity coverage ratio of the Company under the stressed scenario = (Cash inflows of the Company under the stressed scenario + Book value of cash and cash equivalents at the valuation date + the amount of realizable liquid asset reserves) ÷ Cash outflows of the Company under the stressed scenario × 100%

3.

Liquidity coverage ratio without considering asset realization under the stressed scenario = (Cash inflows of the Company under the stressed scenario + Book value of cash and cash equivalents at the valuation date) ÷ Cash outflows of the Company under the stressed scenario × 100%

4.

Backtracking adverse deviation rate of net cash flow from operating activities = (Actual value of net cash flow from operating activities - Predicted value of net cash flow from operating activities) ÷ Absolute value of the predicted value of net cash flow from operating activities. In calculating the indicator, the relevant data under the C-ROSS (Phase I) Regulation was used.

5.

Net cash flow from operating activities = Cumulative cash inflows from operating activities of the current year - Cumulative cash outflows from operating activities of the current year

6.

Net cash flow from operating activities of participating account = Cumulative cash inflows from operating activities of participating account of the current year - Cumulative cash outflows from operating activities of participating account of the current year

7.

Net cash flow from operating activities of universal account = Cumulative cash inflows from operating activities of universal account of the current year - Cumulative cash outflows from operating activities of universal account of the current year

8.

Proportion of cash and liquidity management tools = Book value of cash and liquidity management tools at the end of the period ÷ Ending balance of total assets after deducting the balance of bonds sold under agreements to repurchase and assets held in separate accounts × 100%

9.

Quarterly average of financing leverage ratio = Arithmetic average of total balance of inter-bank lending and bonds sold under agreements to repurchase at the end of each month within a quarter ÷ Ending balance of total assets × 100%

10.

Proportion of domestic fixed-income assets under (including) class AA = Book value of domestic fixed-income assets under (including) class AA at the end of the period ÷ Ending balance of total assets after deducting the balance of bonds sold under agreements to repurchase and assets held in separate accounts × 100%

11.

Proportion of listed stock investment with a shareholding of over 5% = Total book value of listed stock investment with a shareholding of over 5% ÷ Ending balance of total assets × 100%

12.

Proportion of receivables = (Book value of premiums receivable at the end of the period + Book value of reinsurance accounts receivable at the end of the period) ÷ Ending balance of total assets × 100%

13.

Proportion of holding related-party assets = Total investment assets of counterparties (who are related parties) held ÷ Ending balance of total assets × 100%

26

(3)

Key Operating Indicators

Unit: RMB million

Name of Indicators

Figures of the
Current Quarter		 Cumulative Figures
of the Current Year

Gross written premiums

315,011 315,011

Net income

16,359 16,359

Total assets

4,807,991 4,807,991

Net assets

464,991 464,991

Insurance contracts liabilities

3,668,168 3,668,168

Basic earnings per share (RMB)

0.58 0.58

Net assets yield1

 3.47 % 3.47 %

Total assets yield2

 0.34 % 0.34 %

Net Investment yield3

 0.86 % 0.86 %

Comprehensive investment yield4

 -0.22 % -0.22 %

Notes:

1.

Net assets yield = Net profit ÷ [(Net assets at the beginning of the period + Net assets at the end of the period) ÷ 2] × 100%

2.

Total assets yield = Net profit ÷ [(Total assets at the beginning of the period + Total assets at the end of the period) ÷ 2] × 100%

3.

Net investment yield = (Investment income + Profit and loss from fair value changes + Profit and loss from exchange - Impairment loss of investment assets - Taxes and surcharges of investment - Interest expense) ÷ Average balance of funds application during the reporting period × 100%

4.

Comprehensive investment yield = (Investment income + Profit and loss from fair value changes + Profit and loss from exchange + Net change in fair value of financial assets available for sale - Impairment loss of investment assets - Taxes and surcharges of investment - Interest expense) ÷ Average balance of funds application during the reporting period × 100%

The key operating indicators are the results of data calculated according to the "Solvency Regulatory Rules for Insurance Companies No.18: Solvency Report".

27

4.

RISK MANAGEMENT CAPABILITY

(1)

Type of the Company

1)

In accordance with the requirements under Article 5 and Article 6 of the "Solvency Regulatory Rules for Insurance Companies No. 12: Solvency Aligned Risk Management Requirements and Assessment" with respect to the criteria for classification of companies, the Company is a Type I insurance company.

2)

The Company is a life insurance company established in Beijing, China on June 30, 2003 according to the Company Law and the Insurance Law of the People's Republic of China. The Company was successfully listed on the New York Exchange, the Hong Kong Stock Exchange and the Shanghai Stock Exchange on December 17 and 18, 2003, and January 9, 2007, respectively.

3)

In 2021, the Company had total assets of RMB4,778,702 million and 36 provincial branches.

(2)

Assessment Results of the Recent Solvency Aligned Risk Management Requirements and Assessment

The CBIRC conducted an assessment of Solvency Aligned Risk Management Requirements and Assessment (SARMRA) on the Company in 2018. According to the "Notice Concerning the 2018 SARMRA Assessment Results" (Yin Bao Jian Cai [2018] No. 125), the Company got a score of 84.94 in the 2018 assessment and the respective scores in nine areas are as follows: 17.76 in the foundation and environment of risk management, 8.41 in the objectives and tools of risk management, 8.60 in insurance risk management, 8.65 in market risk management, 8.61 in credit risk management, 8.59 in operational risk management, 8.77 in strategic risk management, 7.34 in reputational risk management, and 8.22 in liquidity risk management.

(3)

Measures for the Improvement of Risk Management Adopted During the Reporting Period and Their Progress

Firstly, the Company further proceeded with the construction of its risk management system. In accordance with the "Regulatory Rules on the Second Phase Project of China Risk-Oriented Solvency System (C-ROSS)" issued by the CBIRC, the Company made comprehensive amendments to the rules and regulations in connection with risk management such as the "Comprehensive Risk Management Rules of China Life Insurance Company Limited" and the "Insurance Risk Management Measures of China Life Insurance Company Limited". The Company also made further improvements to SARMRA and the mechanism on Integrated Risk Rating (IRR), building a more well-established comprehensive risk management system and mechanism.

28

Secondly, the Company continued to optimize the top-level design for risk management to strengthen the coordinating and leading roles of the Board of Directors and its specialized committees in risk management. In this design, the function of the Risk Management Committee on risk management and control was highlighted. The Committee organized and held the first meeting for 2022, further strengthened its efforts to keep track of outstanding risk issues and enhanced its capability in risk prevention and defusion in a practical manner.

Thirdly, the Company consistently promoted the construction of information-oriented and intelligent risk management. It made further improvements to the risk management system and gradually established an integrated risk monitoring, analysis, pre-warning and management center. In addition, the Company gradually developed a system for information management in connection with investigation of sale violations and credit rating, and built a sales risk management and control platform covering three channels based on the centralized management and control model, so as to further enhance the independence of sales risk management.

(4)

Self-assessment on Risk Management

The Company did not conduct an annual self-assessment on solvency risk management in this quarter.

During the quarter, the Company continued to proceed with rectification and upgrading measures, sorted out and refined all existing issues on an individual basis, stepped up its efforts to rectify such issues, and continuously enhanced its capability of risk management, after taking into account the feedbacks from the CBIRC's inspection in 2018 and the 2021 self-assessment results.

29

5.

INTEGRATED RISK RATING (IRR) (CLASSIFICATION REGULATION)

(1)

Information of the Company's IRR

To date, according to the C-ROSS Supervision Information System of the CBIRC, the results of the IRR of the Company in the recent two quarters (being the third quarter of 2021 and the fourth quarter of 2021) were both A Category.

(2)

Self-assessment on Risks

The Company conducts an assessment on the insurance risk, market risk, credit risk, strategic risk, operational risk, reputational risk, liquidity risk and other risks faced by it on a quarterly basis, and a comprehensive risk management quarterly report will be prepared and submitted to the President's Office of the Company for review.

For strategic risk, the Company continued to facilitate the upgrade of products and services, pursued its business development with prudent approach as the first priority, and prepared a report of the management team of the Company on business operation and management every quarter and an evaluation report on the implementation of medium- to long-term planning every year through the regular monitoring and evaluation of strategic plan implementation, so as to strengthen the management of strategic risk. In general, the high-quality development tended to be stable with good momentum for growth.

For operational risk, the Company consistently strengthened the development of three management tools, namely loss data room for operational risk, self-assessment on risk control, and key risk indicators monitoring, to build an operational risk management system featuring full chain. The Company also conducted an analysis on the loss data for operational risk as well as key risk indicators monitoring on a quarterly basis, and the operational risk was generally preventable and controllable.

30

For reputational risk, the Company strictly and closely monitored public opinions through the real-time monitoring of media around the clock for seven days a week, and strengthened its efforts to analyze public opinions by grasping their main characteristics and development trends, in order to seize the initiative to address the public opinions. The Company enhanced its ablity to publicly respond to negative public opinions, resulting in a higher public response rate. Through the joint efforts of everyone within the system, the public opinions on the Company remained stable in general and there was no major incident of reputational risk for the Company in this quarter.

For liquidity risk, the Company monitored the regulatory indicators and monitoring indicators for liquidity risk on a quarterly basis and carried out stress tests on cash flows in accordance with the requirements under the "Solvency Regulatory Rules for Insurance Companies No. 13: Liquidity Risk". The Company constantly stepped up its effort in liquidity risk management pursuant to the regulatory requirements and its own regulations, and the liquidity risk of the Company was insignificant.

6.

SIGNIFICANT EVENTS

(1)

Branches

Provincial branches newly approved for operation during the reporting period:

No event involving major branches occurred.

(2)

Material Reinsurance Contracts

1)

Material reinsurance inward contracts entered into during the reporting period:

No event involving material reinsurance inward contracts occurred.

2)

Material reinsurance outward contracts entered into during the reporting period:

No event involving material reinsurance outward contracts occurred.

31

(3)

Top Three Products During the Reporting Period in Terms of Surrender Payment and Comprehensive Surrender Rate

1)

Top three products during the reporting period in terms of surrender payment

Unit: RMB million

Name of products

Type of products Sales channel Current quarter Cumulative figures
for the year
Surrender
payment		 Surrender
rate		 Surrender
payment		 Surrender
rate

China Life Happy Life Annuity Insurance (Participating Insurance)
（國壽美滿一生年金保險（分紅型））

Participating
Exclusive individual
agent, etc.
577 0.36 % 577 0.36 %

China Life Xin Yao

Dong Fang Annuity Insurance
（國壽鑫耀東方年金保險）

Traditional
Exclusive individual
agent, etc.
524 0.81 % 524 0.81 %

Kang Ning Whole Life Insurance
（康寧終身保險）

Traditional
Exclusive individual
agent, etc.
494 0.13 % 494 0.13 %
2)

Top three products during the reporting period in terms of comprehensive surrender rate

Unit: RMB million

Name of products

Type of products Sales channel Current quarter Cumulative figures
for the year
Surrender
payment		 Surrender
rate		 Surrender
payment		 Surrender
rate

China Life Xin Ying Annuity Insurance (Type B)
（國壽鑫盈年金保險（B 款））

Traditional
Exclusive individual
agent, etc.
5 13.85 % 5 13.85 %

China Life Supplemental Care Long-term Health Insurance
（國壽附加關愛一生長期健康保險）

Traditional
Exclusive individual
agent, etc.
0.0036 7.02 % 0.0036 7.02 %

China Life Wealth Succession Whole Life Insurance (Participating Insurance)
（國壽財富傳家終身壽險（分紅型））

Participating
Exclusive individual
agent, etc.
26 6.70 % 26 6.70 %

The surrender rate is the result of data calculated according to the formula of comprehensive surrender rate set out in the "Solvency Regulatory Rules for Insurance Companies No. 18: Solvency Report".

32

(4)

Major Investments

Major investments made during the reporting period:

Unit: RMB million

No.

Type

Investment target

Time of investment Investment amount Book value
at the end
of the period
At the
beginning
of the period		 At the end
of the period		 Change
1
Associated
corporation

China Guangfa Bank Co., Ltd.

January 2022 45,174 53,199 8,025 96,150
2
Joint
venture

Jiangsu China Life Jiequan Equity Investment Center (Limited Partnership)


February 2022

March 2022


1,416 1,806 390 1,843
3 Subsidiary

Shanghai Wansheng Industry Partnership (Limited Partnership)

January 2022 4,024 4,036 12 4,036

It was determined after an assessment that the above major investments had not had any significant impact on the core and comprehensive solvency ratios.

(5)

Significant Investment Losses

Significant investment losses incurred during the reporting period: No significant investment loss was incurred.

(6)

Major Financing Activities

Major financing activities carried out during the reporting period: No major financing activity was carried out.

(7)

Major Connected Transactions

Major connected transactions occurred during the reporting period:

Major connected transactions have been disclosed on the official website of the Company. For specific information, please logon to the official website of the Company (www.echinalife.com, route query: Home Page - Public Information Disclosure - Information of Significant Events) for inspection.

33

(8)

Material Guarantees

1)

Executed material guarantee contracts existed during the reporting period:

No event involving material guarantee contracts occurred.

2)

Outstanding material guarantee contracts existed as of the date of the solvency report:

No event involving outstanding material guarantee contracts occurred.

(9)

Other Significant Events

No other significant event occurred.

7.

MANAGEMENT ANALYSIS AND DISCUSSION

(1)

Change of Solvency Ratios and the Reasons therefor

Pursuant to the requirements of the CBIRC, the Company started to implement the "Solvency Regulatory Rules II for Insurance Companies" (hereinafter referred to as the "C-ROSS (PhaseII) Regulation") from the solvency quarterly report for the first quarter of 2022.

Under the C-ROSS (Phase II) Regulation, as at the end of the first quarter of 2022, the core solvency ratio and comprehensive solvency ratio of the Company were 176.39% and 247.60%, respectively (under the C-ROSS (Phase I) Regulation, the core solvency ratio and comprehensive solvency ratio of the Company were 241.70% and 249.95% on a pro forma basis, respectively), representing a decrease of 77.31 percentage points and 14.81 percentage points as compared to the core solvency ratio and comprehensive solvency ratio calculated under the C-ROSS (Phase I) Regulation as at the end of the fourth quarter of 2021. The main reason for the decline is that the C-ROSS (Phase II) Regulation has significant changes from the C-ROSS (Phase I) Regulation. With respect to actual capital, the C-ROSS (Phase II) Regulation makes capital classification for the future surplus of insurance policies based on the remaining period of the insurance policies, sets stringent standards for the impairment of associated corporations and joint ventures, and improves the method for assessing solvency reserves, etc. With respect to minimum capital, the C-ROSS (Phase II) Regulation requires the implementation of look-through measurement for insurance assets in all aspects, improves the method for measuring interest rate risk, substantially increases risk factors of equity assets such as long-term equity investments, and introduces additional standards for measuring concentration risk, etc.

Under the C-ROSS (Phase I) Regulation and the C-ROSS (Phase II) Regulation, the core solvency ratio and comprehensive solvency ratio of the Company are well above the regulatory requirements, and the Company has sufficient solvency.

34

(2)

Change of Regulatory Indicators for Liquidity Risk and the Reasons therefor

As at the end of the first quarter of 2022, the regulatory indicators for liquidity risk of the Company were conformed to the regulatory standards. Pursuant to the provisions of the "Solvency Regulatory Rules for Insurance Companies No. 13: Liquidity Risk" and the relevant requirements, the Company has established a well-developed liquidity risk management mechanism to monitor various regulatory indicators for liquidity risk on a quarterly basis, with a view to preventing liquidity risk in an effective manner.

(3)

Analysis of the Change in the IRR Results

According to the C-ROSS Supervision Information System of the CBIRC, the result of the IRR of the Company in the fourth quarter of 2021 was A Category, which remained unchanged from the previous quarter.

(4)

Analysis of the Key Risks Faced by the Company

In light of the financial environment and capital market, and after taking into account the measures adopted and initiatives taken by the Company in respect of risks, we have carried out a comprehensive analysis of the key risks affecting the solvency of the Company, the specific details of which are as follows:

1)

Market risk

In 2021, in consideration of the market situation, the Company combined strategic allocation with tactical operation, gave full play to the strengths of external and internal managers, diversified fixed-income assets, took the initiatives to manage equity exposures, and continuously optimized position structure, ensuring the market risk to remain stable generally. During the COVID-19 pandemic, the major economies around the globe were hit by the demand- and supply-side changes, as a result of which volatility in both domestic and international markets escalated and there were profound changes in the risk situation. Under the new environment of investment risk after the outbreak of the pandemic, the Company will strength research on the risk return and attitude of major asset categories, facilitate the construction of a comprehensive system for the management of investment risk, and enhance its capability of market risk judgement, so as to effectively manage market risk in a scientifical manner. The Company will reasonably adjust the portfolio composition and duration on an ongoing basis, take active actions in matching assets with liabilities in terms of duration, and diversify market risk by making appropriate and diverse investments.

35

2)

Credit risk

Overall, the credit situation of fixed-income assets of the Company was satisfactory. No material credit default event occurred for the Company in 2021, and the credit risks of the Company were generally well controlled. Nevertheless, with the growth of default amount of the market as a whole from 2020, there was an increase in the number of entities in default for the first time, credit spread remained at a higher level, and credit risk was still a matter of concern. In relation to credit risk management, the Company proceeded with it from two aspects, namely the probability of default and loss given default, consistently selected counterparties with excellent credit qualification for transactions, requested for credit enhancement as the case required, and conducted dynamic monitoring and control of credit concentration and credit facilities. The Company will continue to facilitate the implementation of a centralized credit rating, improve the internal assessment model and method, and refine and conduct the work of credit rating in the context of the industry, so as to further expand the breadth and depth of credit rating research.

3)

Insurance risk

The Company made a judgment on the adequacy of reserves according to actuarial principles. In 2021, the reserves of the Company satisfied the adequacy requirement, and its insurance risk was stable and well controlled. The Company devised a system for risk limit indicators and carried out normal monitoring analysis, so as to contain risks within a controllable range. It implemented an effective product development and management system to strictly control product pricing risks, and strengthened empirical analysis to offer support to pricing assumptions and accessing assumptions, in order to prevent and control insurance risks from the front end of products. The Company effectively guarded against adverse selection risks and insurance frauds through the establishment and implementation of a well-developed system for verification of insurance policies and claims, as well as the practical operation regulations. In addition, it transferred and mitigated insurance risk through a scientific and reasonable reinsurance arrangement.

36

8.

OPINIONS FROM EXTERNAL INSTITUTIONS

(1)

Reports Received from External Institutions During the Reporting Period

1)

Audit reports received from auditors during the reporting period:

PricewaterhouseCoopers Zhong Tian LLP, an auditor engaged by the Company, issued an audit report (PricewaterhouseCoopers Zhong Tian Te Shen Zi (2022) No. 2384), and was of the view that the special financial statements for solvency were prepared, in all material respects, in accordance with the basis of preparation set forth in the "Solvency Regulatory Rules for Insurance Companies (No. 1-17).

PricewaterhouseCoopers Zhong Tian LLP, an auditor engaged by the Company, issued an audit report on internal control (PricewaterhouseCoopers Zhong Tian Te Shen Zi (2022) No. 2643), and was of the view that the Company maintained an effective internal control over financial reporting in all material respects as of December 31, 2021 in accordance with the "Standard Regulations on Corporate Internal Control" and the relevant requirements.

PricewaterhouseCoopers Zhong Tian LLP, an auditor engaged by the Company, issued an audit report (PricewaterhouseCoopers Zhong Tian Shen Zi (2022) No. 10089), and was of the view that the consolidated and company balance sheets as at December 31, 2021, as well as the consolidated and company income statements, the consolidated and company cash flow statements and the consolidated and company statements of changes in shareholders' equity for the year 2021 and the notes to the financial statements were prepared, in all material respects, in accordance with the "Enterprise Accounting Standards", which gave a fair view of the consolidated and company's financial position as at December 31, 2021, and the consolidated and company's performance results and cash flows for the year 2021.

PricewaterhouseCoopers Zhong Tian LLP, an auditor engaged by the Company, issued an audit report (PricewaterhouseCoopers Zhong Tian Te Shen Zi (2022) No. 2379), and was of the view that the special financial statements for participating insurance were prepared, in all material respects, in accordance with the basis of preparation set forth in Note 2 in the notes to the special financial statements for participating insurance.

37

PricewaterhouseCoopers Zhong Tian LLP, an auditor engaged by the Company, issued an audit report (PricewaterhouseCoopers Zhong Tian Te Shen Zi (2022) No. 2380), and was of the view that the financial statements for investment-linked insurance accounts were prepared, in all material respects, in accordance with the basis of preparation set forth in Note 2 in the notes to the financial statements for investment-linked insurance accounts.

2)

Review reports received during the reporting period:

No relevant circumstance occurred during the reporting period.

3)

Credit rating reports received from rating agencies during the reporting period:

No relevant circumstance occurred during the reporting period.

(2)

Change of External Institutions During the Reporting Period

No relevant circumstance occurred during the reporting period.

38

9.

ACTUAL CAPITAL

(1)

Admitted Assets

Unit: RMB million
Figures of the Current Quarter Figures of the Preceding Quarter

Items

Book Value Unadmitted
Value		 Admitted
Value		 Book Value Unadmitted
Value		 Admitted
Value

Cash and liquidity management tools

98,928 - 98,928 178,904 - 178,904

Investment assets

4,092,175 1,351 4,090,824 3,814,041 1,351 3,812,690

Equities in subsidiaries, joint ventures and associates

188,130 -336 188,466 385,723 -4,436 390,159

Reinsurance assets

6,948 -40,671 47,619 6,631 -46,835 53,466

Receivables and prepayments

353,811 - 353,811 328,233 - 328,233

Fixed assets

50,067 - 50,067 50,364 - 50,364

Land use rights

7,422 - 7,422 7,320 - 7,320

Assets held in separate accounts

8 - 8 9 - 9

Other admitted assets

10,502 1,016 9,486 7,477 1,058 6,419

Total

4,807,991 -38,640 4,846,631 4,778,702 -48,862 4,827,564
Note:

The figures of the preceding quarter are the results of solvency data for the fourth quarter of 2021 as calculated according to the C-ROSS (Phase I) Regulation".

39

(2)

Admitted Liabilities

Unit: RMB million

Items

Figures of the
Current Quarter		 Figures of the
Preceding Quarter

Reserve liabilities

3,042,460 2,861,989

Financial liabilities

400,427 546,114

Payables and advance receipts

232,772 273,661

Estimated liabilities

- -

Liabilities of independent accounts

8 9

Capital liabilities

8,131 -

Other admitted liabilities

83,079 90,023

Total

3,766,877 3,771,796
Note:

The figures of the preceding quarter are the results of solvency data for the fourth quarter of 2021 as calculated according to the C-ROSS (Phase I) Regulation".

40

(3)

Actual Capital

Unit: RMB million

Items

Figures of the
Current Quarter		 Figures of the
Preceding Quarter

Core Tier 1 capital

712,155 1,020,756

Net assets

464,991 477,057

Adjustments to net assets

247,164 543,699

Book value of unadmitted assets

-2,368 -2,410

Difference between admitted value and book value of long-term equity investments

336 4,436

Fair value increment (deducting the effects of impairment, depreciation and income tax) of investment property (including investment property held by insurance companies through property rights or subsidiaries, etc.)

- -18

Deferred income tax assets (excluding deferred income tax assets caused by operating losses)

-3,652 -

Catastrophe risk reserves for agricultural insurance

- -

Policy future surplus included in Core Tier 1 capital

212,177 -

Amount of capital instrument attributable to liabilities that meets the Core Tier 1 capital standards and could be included in Core Tier 1 capital as required

- -

Other adjustments stipulated by the CBIRC

40,671 541,691

Core Tier 2 capital

57,042 -

Preferred stock

- -

Policy future surplus included in Core Tier 2 capital

65,173 -

Other Core Tier 2 capital

- -

Less: the amount that should be deducted for exceeding the limit

8,131 -

41

Unit: RMB million

Items

Figures of the
Current Quarter		 Figures of the
Preceding Quarter

Supplementary Tier 1 capital

308,574 35,012

Subordinated term debt

- -

Capital supplementary bonds

34,995 34,994

Convertible subordinated debt

- -

Deferred income tax assets (excluding deferred income tax assets caused by operating losses)

3,652 -

Amount of fair value increment (deducting the effects of impairment, depreciation and income tax) of investment property (including investment property held by insurance companies through property rights or subsidiaries, etc.) that could be included in the Supplementary Tier 1 capital

- 18

Policy future surplus included in the Supplementary Tier 1 capital

269,927 -

Other Supplementary Tier 1 capital

- -

Less: the amount that should be deducted for exceeding the limit

- -

Supplementary Tier 2 capital

1,983 -

Contingent capital and other Supplementary Tier 2 capital

- -

Policy future surplus included in the Supplementary Tier 2 capital

1,983 -

Less: the amount that should be deducted for exceeding the limit

- -

Total of actual capital

1,079,754 1,055,768
Note:

The figures of the preceding quarter are the results of solvency data for the fourth quarter of 2021 as calculated according to the C-ROSS (Phase I) Regulation".

42

10.

MINIMUM CAPITAL

Unit: RMB million

Items

Figures of the
Current Quarter		 Figures of the
Preceding Quarter

Minimum capital for quantitative risk

442,949 412,531

Total of minimum capital for life insurance risk

100,455 74,508

Life insurance risk - minimum capital for loss risk

66,760 37,965

Life insurance risk - minimum capital for surrender risk

61,526 51,989

Life insurance risk - minimum capital for expense risk

14,304 14,525

Life insurance risk - risk diversification effect

42,135 29,971

Total of minimum capital for non-life insurance risk

12,154 8,264

Non-life insurance risk - minimum capital for premium and reserve risk

12,154 8,264

Non-life insurance risk - minimum capital for catastrophe risk

- -

Non-life insurance risk - risk diversification effect

- -

Market risk - total of minimum capital

411,907 391,925

Market risk - minimum capital for interest rate risk

172,436 375,054

Market risk - minimum capital for equity price risk

375,977 168,518

Market risk - minimum capital for property price risk

17,420 4,326

Market risk - minimum capital for overseas fixed income asset price risk

184 368

Market risk - minimum capital for overseas equity asset price risk

39,100 28,281

Market risk - minimum capital for exchange rate risk

6,850 4,372

Market risk - risk diversification effect

200,060 188,994

Credit risk - total of minimum capital

83,314 69,548

Credit risk - minimum capital for interest spread risk

39,453 32,008

Credit risk - minimum capital for counterparty default risk

64,177 54,259

Credit risk - risk diversification effect

20,316 16,719

Quantitative risk diversification effect

118,034 84,577

Loss absorption effect of special types of insurance contracts

46,847 47,137

Loss absorption adjustment - not considering upper bound

46,847 47,137

Upper bound for loss absorption effect adjustment

196,950 199,033

Minimum capital for control risk

-6,866 -10,190

Additional minimum capital

- -

Counter-cyclical additional minimum capital

- -

Additional minimum capital for DSII

- -

Additional minimum capital for GSII

- -

Other additional minimum capital

- -

Minimum capital

436,083 402,341
Note:

The figures of the preceding quarter are the results of solvency data for the fourth quarter of 2021 as calculated according to the C-ROSS (Phase I) Regulation".

43

This announcement is published in both Chinese and English. Should there be inconsistency between the Chinese and English versions, the Chinese version shall prevail.

By Order of the Board

China Life Insurance Company Limited

Heng Victor Ja Wei

Company Secretary

Hong Kong, April 28, 2022

As at the date of this announcement, the board of directors of the Company comprises:

Executive Directors: Su Hengxuan, Li Mingguang, Huang Xiumei
Non-executive Directors: Yuan Changqing, Wang Junhui
Independent Non-executive Directors: Tang Xin, Leung Oi-Sie Elsie, Lam Chi Kuen, Zhai Haitao

44

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China Life Insurance Co. Ltd. published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 12:34:46 UTC.