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China Life Insurance 3Q net profit down 70 pct

China Life Insurance 3Q net profit down 70 pct

China Life Insurance, the country's biggest insurer, says its third-quarter net profit fell 70 percent from a year earlier due to weaker investment returns.
The Beijing-based company late Monday reported 2.34 billion yuan ($341 million) in third-quarter net profit, with earnings per share falling to 0.08 yuan ($0.01) from 0.27 yuan (about $0.04) a year earlier.
Operating revenue was 76.97 billion yuan ($11.3 billion), up 26.6 percent from a year earlier.
But the company saw unrealized losses on securities investments totaling 8 billion yuan ($1.2 billion). That compared to a gain of 11.1 billion yuan a year earlier.
China Life said its foreign exchange losses due to the strengthening of the Chinese currency totaled 1 billion yuan ($146 million) in the first nine months of the year.
Still, China Life's relative lack of exposure to major foreign investments helped protect it from the worst of the recent global market turmoil.
Rival insurer Ping An Insurance reported a loss in the third quarter due to a 15.7 billion yuan ($2.3 billion) impairment charge from its 5 percent stake in troubled European bank Fortis NV, the biggest blow yet to a Chinese institution from the global credit crisis.
Ping An reported a 7.8 billion yuan ($1.1 billion) loss in the third quarter, the Shenzhen-based company said Monday, warning of a "significant" drop in full-year profits.
A third insurer, China Pacific Insurance Group, reported a 1.64 billion yuan ($240 million) net loss in July-September, compared with net profit of 1.93 billion yuan a year earlier.