Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

China Life, the largest insurance company in China with a market share of around 40%, has seen its brand value drop by some $454million along with a decline in brand rating from AA- to A+. This fall is mainly due to a decline in growth in the Chinese life insurance market. This decline in growth has led to negative revenue forecasts by analysts. In terms of brand valuation, this has had a big effect on the future value of the business as previous years of large scale growth look to be coming to an end.

China Life’s biggest selling point is its history. When it comes to insurances, trust is the most important aspect of customer choice when choosing insurance brands. However, the trust that is key to an insurance business has been tarnished somewhat after an external audit of China Life found “illegal sale of policies, overstating policy sales, improper claim settlements, illegal distributions of commissions and ‘grey income’ - off-the-books gains, some of which company officials pocketed among themselves”. These allegations have left a lot of distrust in the brand as customers question exactly where their money is going.

China Life currently employs over 800,000 people. The company, as of June 2011, held 135 million long term policies. It is further one of the largest investors in China through its China Life asset management business, which is one of three sub brands of the group, the other two being China Life Pensions and China Life Property and Casualty.

 

 

Last changed October 12, 2011

League tables

China Life Insurance appears in the following brand league tables:

Rank 104 in the Global 500 2012.
Rank 101 in the Global 500 2011.
Rank 6 in the China 100 2011.
Rank 101 in the Global 500 2011.
Rank 222 in the Global 500 2010.
Rank 9 in the China 100 2010.
Rank 391 in the Global 500 2009.