China Life responds to last year's Q4 performance fluctuations: Under new standards, more susceptible to capital market influences; life insurance companies focus more on long-term development

People’s Financial News, March 26 — At the China Life 2025 Annual Performance Release Conference held on the 26th, China Life President Li Mingguang responded to a Securities Times reporter’s question about “single-quarter losses in Q4 2025,” stating that this mainly reflects the impact of changes in the capital market on the financial performance of life insurance companies and is a normal performance fluctuation. Li Mingguang said that currently, most of the assets and liabilities of insurance companies are measured at “current market value,” which makes their financial data more real-time and reflective of market conditions. However, it also means that the company’s net profit and net assets are more susceptible to fluctuations in the capital market. Market volatility will be more quickly reflected in the financial statements of insurance companies. The company’s loss in the fourth quarter last year was mainly due to structural adjustments in the capital market, with some stocks and funds held by the company experiencing a correction in Q4 2025. Such fluctuations are temporary and reflect changes in the capital market, which is normal. He stated that, unlike other industries, life insurance companies have long-term, cyclical, and complex characteristics. When evaluating the management of insurance companies, more attention should not be paid to short-term fluctuations in net profit and net assets, nor should it be limited to changes in quarterly profit indicators. Instead, more focus should be placed on long-term value creation ability, with assessment from a longer time horizon and a more comprehensive perspective.