Presentation 20130328 en

2012 Annual Results

March 28, 2012 Hong Kong ● Beijing

- 2 -

Forward-looking Statements

Certain statements contained in this presentation may be viewed as “forward-looking

statements” within the meaning of Section 27A of U.S. Securities Act and Section 21E of U.S.

Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known

and unknown risks, uncertainties and other factors, which may cause the actual performance,

financial condition or results of operations of the Company to be materially different from any

future performance, financial condition or results of operations implied by such forward-

looking statements. Further information regarding these risks, uncertainties and other factors

is included in the Company’s Annual Report on Form 20-F for the fiscal year ended December

31, 2011 filed with the U.S. Securities and Exchange Commission, or SEC, on April 26, 2012;

and in the Company’s other filings with the SEC. The Company does not undertake any

obligation to update any forward-looking statement, except as required under applicable law.

All information provided in this presentation is as of the date of this presentation, and the

Company undertakes no duty to update such information, except as required under applicable

law.

Unless otherwise indicated, the Chinese insurance market information set forth in this

presentation is based on public information released by CIRC.

Agenda

2012 Overview Section I

- 3 -

Investment Performance Section IV

Business Review Section II

Embedded Value Section V

Financial Summary Section III

Section I: 2012 Overview

2012 Business Development Overview

- 5 -

In 2012, the Chinese economy slowed down and the capital market

remained weak. The Company faced unprecedented challenges in both

underwriting and investment businesses amid a significant growth

deceleration of the life insurance industry. Guided by the keynote of

“tackling difficulties, making steady progress and striving for expansion”,

the Company continued to strengthen its market leading position and

achieved the following results:

Adapted to the complicated environment and achieved steady business

growth

Focused on both business scale and value and attained steady growth in

new business value

Product innovation and technological application effectively drove

business development

Maintained stable size of agent force while improving overall quality

Vigorously implement the “Innovation driving development

strategy ” , continue adhering to the keynote of “tackling difficulties,

making steady progress and striving for expansion”, equally

emphasize both scale and value to ensure market leadership and

sustainable development.

The Company’s Current Development Strategy

- 6 -

Propel business development and maintain steady growth of new business value

Adhere to business mix adjustment to promote business growth mode change

Foster product and service innovation to raise core competiveness

Apply modern technology to improve operational management

Proactively participate in policy-driven business to fulfill corporate social

responsibilities

Outlook for 2013

- 7 -

Opportunities

• Social and individual wealth accumulation will set a solid foundation for future development of insurance industry.

• Further urbanization and population aging will cause further increase in demand for insurance.

• Improvements in multi-level social security system will widen insurance business scope and facilitate development mode change

• Investment channel expansion will help improve investment yields and asset-liability matching.

Challenges

• Economic growth is slowing down and the insurance industry is encountering challenges in maintaining growth.

• Bank wealth management products continue to exert pressure on the bancassurance channel, resulting in pressing needs for development mode change.

• Labour cost keeps rising, and agent force faces recruitment challenges.

• The industry is facing pressures from increasing surrender and maturity payments.

Section II: Business review

Development of the Life Insurance Industry in 2012

956,000 995,789

2011 2012

Industry Gross Written

Premiums

- 9 -

Overview of life insurance sector: The life insurance industry’s growth rate

dropped noticeably due to complex macro-

economic environment, sluggish capital market

and competition from wealth management

products offered by banks.

As new business decreased, the growth of

total premiums was driven by renewal

premiums

Individual agent channel premiums

continued to grow with the help of renewal

premiums, while new premiums through

bancassurance channel decreased

significantly

Individual agent recruitment continued to

encounter difficulties

The development of new sales channels

accelerated

RMB mn

15,802 16,432

2011 2012

48,104 45,535

99,617 80,576

2011 2012

First-year Regular Premiums Single Premiums

Short-term Premiums

154,729

180,199

2011 2012

Steady Growth in Premium Income

Gross Written Premiums

- 10 -

Long-term First-year Premiums

Renewal Premiums

318,252 322,742

2011 2012

RMB mn RMB mn

RMB mn

147,721

126,111

RMB mn

Business Structure Improvement

Long-term FYP

First-year Regular Premiums

Long-term Premiums

Short-term Premiums

33% 36%

67% 64%

2011 2012First-year Regular Premiums Single Premiums

48% 34%

12% 25%

40% 41%

2011 2012

Less than 5 years 5-9 years 10 years and longer

51% 59%

49% 41%

2011 2012Renewal Premiums Long-term FYP

55% 58%

45% 42%

2011 2012Short-term Accident Short-term Health

- 11 -

Steady Increase of Business Value

- 12 -

Value of One Year’s Sales

RMB mn

In-force Business Value

20,199 20,834

2011 2012

125,282

153,444

182,588

209,088

0

50,000

100,000

150,000

200,000

250,000

2009 2010 2011 2012

Note:: Both value of one year’s sales and in-force business value are after cost of solvency margin

RMB mn

7.1%

4.0%

-1.9%

8.7%

1.3%

Individual, Group and Short-term Business

- 13 -

Individual

Business

2012

305,841

Change 2011

Group

Business 469

Short-term

Business 16,432

Short-term

Health 6,905 7,036

Short-term

Accident 9,527 8,766

302,012

438

15,802

RMB mn

Surrender Rate and Persistency Rate

Surrender Rate Long-term Individual Policy

Persistency Rate

- 14 -

2.79% 2.72%

2011 2012

93.0% 92.5% 91.0%

87.6% 86.9% 88.5%

72%

77%

82%

87%

92%

2010 2011 2012

14 Months 26 Months

Note :Surrender rate = Surrender amount during the year / (reserves for long-term health insurance and life insurance liabilities at the beginning of the period ＋

premiums from life insurance and long-term health insurance during the year)

Policy persistency rate = in-force policies within the review month that are commenced 14/26 months prior to the review month / policies that are commenced

14/26 months prior to the review month

38,750 37,762

121,838 141,999

2011 2012New Business Renewal Premiums

Individual Agent Channel

Business development：

Individual agent business achieved solid development，and business mix further improved

With clear product strategy, traditional protection business grew significantly

Sales Force Development：Sales team remained stable, total number: 693,000

- 15 -

Agent Channel GWP

50.5%

55.7%

23.7% 26.5%

5%

15%

25%

35%

45%

55%

2011 2012

Share in Gross Written Premiums Share in New Business

160,588

179,761

Agent Channel Share in

GWP & New Business

2.5%

16.5%

Note: In 2012, the Company's channel premium breakdown was presented based on the separate groups of sales personnels belonging to exclusive individual agent team, direct sales representatives, bancassurance sales team, and other distribution channels respectively, with the corresponding data for 2011 adjusted accordingly.

RMB mn

112,330 91,580

32,033

37,283

2011 2012

New Business Renewal Premiums

96,974

78,151

15,299

13,373

2011 2012

Single Premiums First-year Regular Premiums

Bancassurance Channel

Business development: Affected by bank wealth management products as well as industry

regulation, bancassurance channel’s new business decreased, renewal premiums

continuously increased

Sales Force Development : the total number of account managers and financial advisors

reached 46,223, up by 1,712 than last year end.

- 16 -

Bancassurance FYP

144,363

128,863

Bancassurance GWP

18.5%

16.4%

19.4%

12.6%

RMB mn RMB mn

298 232

194 324

2011 2012

New Business Renewal Premiums

10,039 10,804

2,770 2,758

2011 2012

Short-term Business Long-term Business

Direct Sales and other Channels

Direct Sales Channel： Short-term business achieved good growth with further

improved business mix and consolidated market leadership. Number of direct sales

representatives was 16,000

Other Channels: Speeded up the layout of new channels, especially telemarketing

channel, and completed construction of 23 telemarketing centers. In 2012, telemarketing

channel achieved excellent business mix, conducive to its sustainable development

- 17 -

12,809 13,562

Direct Sales Channel GWP Other Channels* GWP

492

556

7.6%

0.4%

22.1%

67.0%

Note: Other channels mainly refer to telemarketing channel

RMB mn RMB mn

Operational Management Enhanced by New Technologies

- 18 -

The promotion of E-China Life mobile marketing system facilitated business development

Upgraded counter service lifted customer satisfaction remarkably

Fully launched telephone underwriting service to promote business development

Initiated pilot CRM program to promote sales

2013 Development Focuses

- 19 -

Continue to follow the keynote of “tackling difficulties, making steady progress and striving for expansion”, equally emphasize scale and value, and leverage innovations to seek breakthroughs, and promote sustainable and healthy development.

Focus on first-year business development

Make efforts to enhance business value

Strive to promote product innovation

Effectively enhance service capabilities

Proactively explore new business areas

Section III: Financial Summary

60,722

1,705

(12,913)

337

73,243

4,167

(31,043)

(313)

Investment IncomeNet Realized Gainson Financial Assets Impairment Losses

Net fair value gainsthrough profit or

loss

2011 2012

Revenues

Net Premiums Earned Total Revenues

Investment Income & Realized/Unrealized

Gains and Impairment Losses

RMB mn RMB mn

RMB mn

318,276 322,126

2011 2012

370,899 371,485

2011 2012

- 21 -

Cost Control

Underwriting and Policy

Acquisition Cost Ratio Administrative Expenses Ratio

7.4% 7.5%

2011 2012

5.8% 6.3%

2011 2012

Notes：Underwriting and Policy Acquisition Cost Ratio= Underwriting and policy acquisition costs/ total revenue

Administrative expenses ratio = Administrative expenses / total revenue

- 22 -

Profitability

Net Profit Attributable

to Equity Holders Weighted Average ROE EPS

RMB mn RMB yuan

0.65

0.39

2011 2012

18,331

11,061

2011 2012

9.16%

5.38%

2011 2012

- 23 -

Equity Holders’ Equity

RMB mn

- 24 -

191,530

221,085

11,061

24,995

0

50,000

100,000

150,000

200,000

250,000

2011.12.31 EquityAttributable to Equity

Holders of the Company

Net Profit Attributable toEquity Holders of the

Company

Other ComprehensiveIncome

Dividends 2012.12.31 EquityAttributable to Equity

Holders of the Company

（6,501）

Solvency Ratio

Solvency Ratio

In 2012, the company's

solvency ratio improved

due to the increase in

comprehensive income.

Meanwhile, the company

grasped market

opportunity and issued

RMB 38 billion

subordinated term debt,

which further raised

solvency ratio.

- 25 -

170.12%

235.58%

2011.12.31 2012.12.31

Section IV: Investment Performance

1,494,969

1,790,838

2011.12.31 2012.12.31

Investment Assets and Portfolio

Investment Assets

RMB mn

- 27 -

Investment Portfolio

44.6% 46.2%

34.8% 35.8%

12.2% 9.2%

3.7% 3.9% 4.7% 4.9%

2011.12.31 2012.12.31

Debt Securities Term Deposits

Equity Securities Cash & Cash Equivalents

Others

Note: Investment assets ＝Cash and Cash Equivalents+ Securities at fair value through income+Available-for-sale Securities ＋Held-to-maturity Securities +Term Deposits +Securities Purchased under Agreements to Resell＋Loans + Statutory Deposits

Investment Yields

- 28 -

Gross Investment Yield Net Investment Yield

4.28% 4.44%

2011 2012

3.51%

2.79%

2011 2012

Comprehensive

Investment Yield

1.57%

4.97%

2011 2012

Notes: Net investment yield = (Investment income-Business tax and extra charges for investment)/((Investment assets at the beginning of the period +

Investment assets at the end of the period)/2)

Gross investment yield = (Investment income + Net realized gains/(losses) and impairment on financial assets + Net fair value gains/(losses) through

profit or loss - Business tax and extra charges for investment)/ ((Investment assets at the beginning of the period + Investment assets at the end of the

period)/2)

Comprehensive investment yield = (Investment income + Net realized gains/(losses) and impairment on financial assets + net fair value

gains/(losses) through profit or loss + current net fair value changes of available-for-sale securities recognized in other comprehensive income -

business tax and extra charges for investment) / ((investment assets at the beginning of the period + investment assets at the end of the period) / 2)

Alternative Investments

In 2012, the Company seized the opportunity to invest RMB

11.74 billion in new infrastructural debt plans and real estate

plans. Cumulated invested amount reached RMB 40.53

billion, accounting for 2.3% of investment assets

Debt Investment Plan

Equity Investment

- 29 -

The Company made unlisted equity investment in COFCO

Futures with a 35% stake, the first direct equity investment

since its deregulation in 2010. The Company also invested

RMB 600 million in the private equity fund - CITIC

Industrial Fund III

Alternative channels can help to facilitate the Company's strategic financial investment,

enhance net investment returns, share in the capital appreciation from China's economic

development, industry upgrades, and company public listings, and diversify the sources

of returns

Section V: Embedded Value

Embedded Value Breakdown by Components

2012.12.31

128,507

337,596

245,134

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Adjusted Net Worth In-force Business Value Cost of Solvency Margin Embedded Value

- 31 -

（36,046）

Note：Numbers may not be additive due to rounding.

RMB mn

20,199 20,834

2011 2012

110,266 128,507

182,588

209,088

2011.12.31 2012.12.31

In-force Business Value(After cost of solvency margin)

Adjusted Net Worth

Growth of EV and Value of New Business

Value of One Year’s Sales Embedded Value

337,596

292,854

- 32 -

RMB mn RMB mn

Note：Numbers may not be additive due to rounding.

Embedded Value Movement Analysis

EV Movement from 2011 year end to 31, December 2012

- 33 -

292,854

337,596

30,215

20,834 9,676 304

（879） （1,905）

（6,954） （49） （6,501）

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

EV atBeginning of

2012

ExpectedReturns

Value of OneYear's Sales

OperatingExperience

Variance

InvestmentExperience

Varience

MethodologyModel and

AssumptionChanges

Market ValueTax and OtherAdjustments

ExchangeGains orLosses

ShareholderDividends

Others EV atDecember

31,2012

Note：Numbers may not be additive due to rounding.

RMB mn

Thank you！

Appendixes: Sensitivity Analysis–Investment Return and

Discount Rate

Value of One Year’s Sales after Cost of

Solvency Margin

Value of In-force Business after Cost of

Solvency Margin

- 35 -

209,088

( 35,154)

( 10,296)

11,058

35,401

InvestmentReturn -10%

Risk Discountrate=11.5%

Base CaseScenario

Risk Discountrate=10.5%

InvestmentReturn +10%

20,834

( 2,758)

( 1,089)

1,168

2,785

InvestmentReturn -10%

Risk Discountrate=11.5%

Base CaseScenario

Risk Discountrate=10.5%

InvestmentReturn +10%

RMB mn RMB mn

Note：Numbers may not be additive due to rounding.

Sensitivity Analysis-Operational and other Assumptions

Sensitivity Analysis Results (after the cost of solvency margin)

- 36 -

Claim Ratio for Short Term

Business+/-10%

Morbidity Rates+/-10%

Lapse Rates+/-10%

Mortality Rate for Non-

Annuity Products +/-10%,

Mortality Rate for Annuity

Products -/+10%

Expenses+/-10%

Base Case Scenario

Value of In-force Business Value of One Year’s Sales

-1,760

-87

-177

-117

-596

1,760

88

177

118

596

-2,000 -1,000 0 1,000 2,000

-2,609

-1,903

-1,267

-2,053

-281

2,609

1,934

1,311

2,073

281

-3,000 -2,000 -1,000 0 1,000 2,000 3,000

209,088 20,834

Note：Numbers may not be additive due to rounding.

RMB mn

Sensitivity Analysis Results –other Assumptions

Sensitivity Analysis Results

- 37 -

Value of In-force

Business after the cost of

solvency margin

Value of One Year’s

Sales after the cost of

solvency margin

Base Case Scenario 209,088 20,834

Solvency Margin at 150% of

Statutory Minimum 200,097 19,154

Taxable income based on the

accounting profit in accordance

to “the Provisions on the

Accounting Treatment Related

to Insurance Contracts” under

one possible scenario

211,901 20,191

Using 2011 EV assumptions 209,383 21,068

RMB mn

Awards in 2012

“2012 China Fortune 500”ranking 10th

“2012 Annual Corporate Disclosure Award”

China Life has been selected in “Forbes Global 2000” for nine

consecutive years, ranking 65th in 2012.

“Top 50 Most Valuable Brands in China ” in 2013, ranking 7th.

- 38 -

Fulfilling Corporate Social Responsibilities

Sponsoring orphans

Continued sponsorship for Wenchuan Earthquake, Yushu

Earthquake and Zhouqu mudslide orphans, and held the

“Fourth China Life Summer Camp”.

Funding for school

building

Funded the building of three more China Life primary schools in

Shangri-La County, Diqing Tibetan Autonomous Prefecture of

Yunnan Province, Ziyang City of Sichuan Province, and Liangping

County of Chongqing city.

Caring for women’s

health

Donation was made to related foundations to provide women in

impoverished areas with “Screening for Two Gynecological

Cancers” and protection against major diseases.

- 39 -

Donation was made to the Beijing Municipal Public Security

Support Foundation for impoverished families of police officers

Aiding

impoverished

families

Note：These charitable undertakings were operated by China Life Foundation.