Mar. 7, 2012 (China Knowledge) - China Life Insurance Co Ltd<601628
>, the country's largest life insurance company, said yesterday that it expects its net profit to fall between 40% and 50% year on year in 2011.
The life insurer said in a statement filed with the Shanghai Stock Exchange
that the sharp decrease in net profit was due to a decline in investment income and an increase in asset impairment losses amid a volatile capital market.
In 2010, the company's net profit climbed about 2.3% year on year to RMB 33.6 billion.
China Life earlier reported a net profit of RMB 16.72 billion for the first three quarters of last year, 33% less than in the same period of 2010.
The Chinese insurance industry recorded a return of about 3.6% on investments last year, reflecting the second-lowest level in six years.