China Life's Agent Head Count Decline Narrows, Better-Than-Peer NBV Contraction

Being the largest and oldest state-owned life insurer, China Life enjoys a reputable brand, giving it a leg up in sales of commodity-like insurance products. It boasts an extensive network domestically. Despite low profitability in these areas, we think China Life is well positioned for ongoing urbanization and the government’s increasing efforts to boost rural residents’ welfare. The large scale and strong foothold in underpenetrated rural markets translate to low administration expense for China Life.