China Life reports 39.7% net profit drop in 2012

China Life Insurance Co Ltd, the country's largest life insurer, posted a 39.7 percent drop in its 2012 net profit, citing the slowdown in China's economy and in the life insurance sector and the sluggish capital markets, it said in its annual report.

Net profit attributable to shareholders of the company was at 11 billion ($1.75 billion), down 39.7 percent year-on-year. The company's earnings per share (basic and diluted) were 0.39 yuan, also down 39.7 percent from the previous year, according to the report.

At the end of the reporting period, China Life's investment assets reached 1,790 billion yuan, an increase of 19.8 percent from the end of 2011. The net investment yield was 4.44 percent, while the gross investment yield was 2.79 percent.

During the reporting period, China Life issued subordinated term debts of 38 billion yuan to reach its solvency management objective and long-term capital plan. As of 31 December 2012, China Life's solvency ratio was 235.58 percent.