Bank of America Securities released a research report stating that it maintains a "buy" rating and raises its profit growth forecast for China Life Insurance to 79% in the next two years, reflecting a higher investment return assumption. It also raised its profit forecast for the following year by 12% and raised the target price from HKD 13.5 to HKD 15.1, based on the improvement of return on equity. $CHINA LIFE (02628.HK)$ Bank of America Securities released a research report stating that it maintains a "buy" rating and raises its profit growth forecast for China Life Insurance to 79% in the next two years, reflecting a higher investment return assumption. It also raised its profit forecast for the following year by 12% and raised the target price from HKD 13.5 to HKD 15.1, based on the improvement of return on equity.

The report mentioned that the company's mid-term net profit increased by 6% year-on-year, exceeding the bank's expected decrease of 5%. The mid-term new business value increased by 19% year-on-year, also outperforming the bank's expected increase of 16%. The growth in new business value was mainly driven by improvements in the new business value ratio, and like its peers, it also benefited from supportive regulatory changes. The bank estimated that China Life Insurance's first-year premium income decreased by 2% year-on-year, influenced by a decline in contributions from the bancassurance channel, but still outperformed most of its peers.

The bank pointed out that the company's mid-term net investment income increased by 102% year-on-year, mainly from fair value profits, believed to mainly come from bonds, and will be affected by the situation of a rebound in the domestic bond market in the second half of the year.