SHANGHAI (Reuters) - China Life Insurance Co (601628.SS) (2628.HK), the country’s second-biggest insurer by market value, reported a 120 percent rise in first-quarter profit on Thursday, helped by accounting moves.
Net profit rose to 13.52 billion yuan ($2.14 billion) in the first three months of the year, compared with 6.15 billion yuan a year earlier, China Life said.
The significant improvement in net profit was “due to the impact of the update of discount rate assumption of reserves of the company’s traditional insurance contracts,” the company said in the filing.
Overall insurance revenues fared less well.
In the first quarter, China Life’s insurance business revenues fell slightly by 1.1 percent on year to 243.42 billion yuan. Equity investment income also “declined significantly”, the company said.
The insurer last month reported a 69 percent surge in 2017 net profit, citing strong investment returns from stock markets.
($1 = 6.3230 Chinese yuan renminbi)
Reporting by Engen Tham in Shanghai and Matthew Miller in Beijing; Editing by David Goodman/Keith Weir