Stock Code: 2628 Annual Report 2018 2003 2007 Listed on the New York and Listed on the Shanghai Hong Kong Stock Exchanges Stock Exchange 2014 2008 Established Data Launched earthquake orphan Center in Shanghai sponsorship project and sponsored 1,104 orphans cumulatively by 2018 2017 2018 Insurance services covering over 500 On-line services enhanced constantly, million customers; Launched the "New Generation of Integrated Business paperless insurance application Processing System"; China Life IT Center reached 90% initiated operation Annual Report 2018 WorldReginfo - d76b23b5-c8b4-4c84-bf24-a3ffb95f8fb9 WorldReginfo - d76b23b5-c8b4-4c84-bf24-a3ffb95f8fb9 Contents Prelude 3 Chairman’s Statement 15 Management Discussion and Analysis 21 Embedded Value 46 Significant Events 54 Corporate Governance 74 Other Information 144 Financial Report 151 WorldReginfo - d76b23b5-c8b4-4c84-bf24-a3ffb95f8fb9 WorldReginfo - d76b23b5-c8b4-4c84-bf24-a3ffb95f8fb9 01 Prelude Definitions and Material Risk Alert 4 Company Profile 5 Core Competitiveness 8 Business Highlights 10 Financial Summary 11 WorldReginfo - d76b23b5-c8b4-4c84-bf24-a3ffb95f8fb9 Prelude Definitions and Material Risk Alert In this annual report, unless the context otherwise requires, the following expressions have the following meanings: The Company1 China Life Insurance Company Limited and its subsidiaries CLIC China Life Insurance (Group) Company, the controlling shareholder of the Company AMC China Life Asset Management Company Limited, a non-wholly owned subsidiary of the Company Pension Company China Life Pension Company Limited, a non-wholly owned subsidiary of the Company AMP China Life AMP Asset Management Company Limited, an indirect non- wholly owned subsidiary of the Company CLWM China Life Wealth Management Company Limited, an indirect non- wholly owned subsidiary of the Company CLP&C China Life Property and Casualty Insurance Company Limited, a non- wholly owned subsidiary of CLIC CLI China Life Investment Holding Company Limited, a wholly-owned subsidiary of CLIC China Life Capital China Life Capital Investment Company, an indirect wholly-owned subsidiary of CLIC CBIRC China Banking and Insurance Regulatory Commission, the predecessors of which are China Insurance Regulatory Commission and China Banking Regulatory Commission CSRC China Securities Regulatory Commission HKSE The Stock Exchange of Hong Kong Limited SSE Shanghai Stock Exchange Company Law Company Law of the People’s Republic of China Insurance Law Insurance Law of the People’s Republic of China Securities Law Securities Law of the People’s Republic of China Articles of Association Articles of Association of China Life Insurance Company Limited China or PRC For the purpose of this report, “China” or “PRC” refers to the People’s Republic of China, excluding the Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan region China Life Insurance Company Limited RMB Renminbi Yuan Material Risk Alert: The Company has stated in this report the details of its existing risks including risks relating to macro trends, risks relating to insurance business, risks relating to investment business and risks relating to network security. Please refer to the analysis of the risks which the Company may face in its future development in the section headed “Management Discussion and Analysis”. 1 4 Except for “the Company” referred to in the Consolidated Financial Statements. WorldReginfo - d76b23b5-c8b4-4c84-bf24-a3ffb95f8fb9 Prelude Company Profile The Company is a life insurance company established in Beijing, China on 30 June 2003 according to the Company Law and Insurance Law of the People’s Republic of China. The Company was successfully listed on the New York Stock Exchange, the Hong Kong Stock Exchange and the Shanghai Stock Exchange on 17 and 18 December 2003, and 9 January 2007, respectively. The Company’s registered capital is RMB28,264,705,000. The Company is a leading life insurance company in China and possesses an extensive distribution network comprising exclusive agents, direct sales representatives, and dedicated and non-dedicated agencies. The Company is one of the largest institutional investors in China, and becomes one of the largest insurance asset management companies in China through its controlling shareholding in China Life Asset Management Company Limited. The Company also has controlling shareholding in China Life Pension Company Limited. Our products and services include individual life insurance, group life insurance, and accident and health insurance. The Company is a leading provider of individual and group life insurance, annuity products and accident and health insurance in China. As at 31 December 2018, the Company had approximately 285 million long-term individual and group life insurance policies, annuity contracts, and long-term health insurance policies in force. We also provide both individual and group accident and short-term health insurance policies and services. I. BASIC INFORMATION Registered Name in Chinese 中國人壽保險股份有限公司（簡稱「中國人壽」） Registered Name in English China Life Insurance Company Limited (“China Life”) Legal Representative Wang Bin Registered Office Address 16 Financial Street, Xicheng District, Beijing, P.R. China Postal Code 100033 Current Office Address 16 Financial Street, Xicheng District, Beijing, P.R. China Postal Code 100033 Telephone 86-10-63633333 Fax 86-10-66575722 Website www.e-chinalife.com Email [email protected] Hong Kong Office Address 16/F, Tower A, China Life Centre, One Harbour Gate, 18 Hung Luen Road, Hung Hom, Kowloon, Hong Kong Telephone 852-29192628 Fax 852-29192638 China Life Insurance Company Limited 5 WorldReginfo - d76b23b5-c8b4-4c84-bf24-a3ffb95f8fb9 Prelude II. CONTACT INFORMATION Board Secretary Securities Representative* Name Li Mingguang Li Yinghui Office Address 16 Financial Street, Xicheng District, 16 Financial Street, Xicheng District, Beijing, P.R. China Beijing, P.R. China Telephone 86-10-63631241 86-10-63631191 Fax 86-10-66575112 86-10-66575112 Email [email protected] [email protected] * Ms. Li Yinghui, Securities Representative of the Company, is also the main contact person of the external Company Secretary engaged by the Company. III. INFORMATION DISCLOSURE AND PLACE FOR OBTAINING THE REPORT Media for the Company’s China Securities Journal, Shanghai Securities News, Securities Times A Share disclosure CSRC’s Designated Website for the Company’s Annual www.sse.com.cn Report Disclosure HKExnews website of Hong Kong Exchanges and Clearing Limited at The Company’s H Share www.hkexnews.hk Disclosure Websites The Company’s website at www.e-chinalife.com The Company’s Annual 12/F, China Life Plaza, 16 Financial Street, Xicheng District, Beijing, P.R. China Report may be obtained at IV. STOCK INFORMATION Exchanges on which the Stock Type Stock Short Name Stock Code Stocks are Listed A Share Shanghai Stock Exchange China Life 601628 The Stock Exchange of H Share China Life 2628 Hong Kong Limited ADR New York Stock Exchange - LFC China Life Insurance Company Limited 6 WorldReginfo - d76b23b5-c8b4-4c84-bf24-a3ffb95f8fb9 Prelude V. OTHER RELEVANT INFORMATION Address: Shops 1712-1716, 17th Floor, H Share Registrar and Computershare Hong Kong Hopewell Centre, 183 Queen’s Road East, Transfer Office Investors Services Limited Wanchai, Hong Kong Depositary of ADR Deutsche Bank Address: 60 Wall Street, New York, NY 10005 Domestic Legal Adviser King & Wood Mallesons International Legal Advisers Latham & Watkins LLP Debevoise & Plimpton LLP Domestic Auditor International Auditor Ernst & Young Hua Ming LLP Ernst & Young Address: Level 16, Ernst & Young Tower, Oriental Plaza, Auditors of the Company No. 1 East Changan Avenue, Address: 22/F, CITIC Tower, Dongcheng District, Beijing, P.R. China 1 Tim Mei Avenue, Central, Hong Kong Name of the Signing Auditors: Huang Yuedong, Wu Jun China Life Insurance Company Limited 7 WorldReginfo - d76b23b5-c8b4-4c84-bf24-a3ffb95f8fb9 Prelude Core Competitiveness The predecessor of the Company, one of the first batch of enterprises to underwrite insurance business in China, was approved by the Central Government for establishment in October 1949, when the People’s Republic of China was founded. After the restructuring Long history and reorganization, the Company was successively listed home and abroad, becoming and excellent the first financial insurance enterprise in China triple-listed on the Shanghai Stock brand Exchange, the Hong Kong Stock Exchange and the New York Stock Exchange. Since its establishment, the Company has played the role of an explorer and pioneer in China’s life insurance industry, and has committed to creating a world-class financial insurance brand. Through long-term and continuous brand building, China Life has become one of the famous and strong brands in the world with growing brand value and influence. As at the end of 2018, the brand of China Life has been selected as one of the “World’s 500 Most Influential Brands” published by World Brand Lab for twelve consecutive years, ranking 139th in 2018, and was again ranked 5th on the 2018 (the 15th session) “China’s 500 Most Valuable Brands” list published by World Brand Lab. The Company sticks to its principal business, further explores the huge potentials of the Prominent life insurance market, and maintains its leading position in China’s life insurance market. principal In 2017, the Company’s gross written premiums exceeded RMB500,000 million, achieving business a new record high. Through the long-term