New | China Life Insurance boosts profits 30pc on investment gains

China Life Insurance reported a 30 per cent rise in annual net profit, meeting analysts' estimates, lifted by gains on its investments in China's booming stock markets.

The country's largest insurer by market value said net profit for the year to December rose to 32.2 billion yuan (HK$40.2 billion) from 24.77 billion yuan in 2013. That was in line with the average forecast for 32.7 billion yuan from analysts in a survey.

The company had told investors in January that it expected its annual net profit to rise about 30 per cent compared with the previous year, thanks to gains in its investment portfolio.

Chinese insurers can book gains in their investment portfolios as profits, making their quarterly net profit figures volatile, and inaccurate, indicators of underlying growth.

The benchmark Shanghai Shenzhen CSI 300 Index has risen 75 per cent in the past year.

The country's insurance regulator said at its annual conference in January that the industry recorded an average yield on investments of 6.3 per cent last year, compared with 5 per cent in 2013, leading to a doubling of sector profits.