China Life Li Mingguang responds to negative profits in Q4 2025: The fluctuations caused by structural adjustments in the capital market are normal and should not be over-interpreted.

(Source: Beijing Business Today)

Beijing Business Today News (Reporter Hu Yongxin) on March 26, at the 2025 Annual Performance Release Conference of China Life Insurance Co., Ltd. (hereinafter referred to as “China Life”), President Li Mingguang responded to the company’s negative profit in the fourth quarter of 2025 by stating that most of the investment assets and insurance contract liabilities of life insurance companies are measured at current market value. Changes in market value may be reflected in the income statement or on the balance sheet. It is normal for net profit and net assets to fluctuate with market value changes. The negative profit in the fourth quarter of 2025 is mainly due to structural adjustments in the capital market, with some stocks and funds held by the company experiencing a downturn in Q4 2025. These fluctuations are mostly temporary and reflect changes in the capital market, which is a normal phenomenon.

Li Mingguang said that unlike other industries, life insurance companies have long-term and cross-cycle operational characteristics. Therefore, he recommends reducing overinterpretation of quarterly profits. The company has always adhered to long-termism in its operations, maintaining asset-liability linkage, continuously improving cross-cycle management capabilities, and striving to create sustainable value for investors. Moreover, China’s economic foundation is solid, with many advantages, strong resilience, and great potential. The long-term positive trend and basic conditions remain unchanged, laying a solid foundation for the company’s development.

Li Mingguang stated that the profit and loss statement and balance sheet of life insurance companies should be analyzed over a longer cycle. Only over a longer period can the management effectiveness of life insurance companies become more apparent. The shorter the cycle, the greater the impact of fluctuations, and such fluctuations are often encountered in the company’s operations.