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CHINA LIFE: Div. Declaration, Solvency Combined to Boost Return Lv.; ROI Assumption Reduced to Cope with Rate Cuts
Recommend 27 Positive 41 Negative 25 |
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Li Mingguang, President of CHINA LIFE (02628.HK), said in a press conference that 2024 dividend grew 51% YoY, and returned to a higher level recently since 2020 amid a more complicated external environment. CHINA LIFE's 2024 dividend payout ratio fell 9.2 ppts YoY to 17%. One of the aspect of the dividend payout ratio in the future is to strive to combine the external dividend declaration with the Company's solvency and risk-control capabilities, gradually improving its return level, Li added. The decline in interest rates had a negative impact on the VONB, Hou Jin, Chief Actuary of CHINA LIFE, said. In response to the objective reality of a declining pivot in market interest rates, the Company has adjusted its economic assumptions accordingly, notably by reducing the ROI assumption used in the VONB valuation by 50 bps to 4% from 4.5% in 2024. The Company's current risk discount rate assumptions are relatively robust and prudent in comparison to the market. AAStocks Financial News |
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