Commission File Number 001-31914

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

October 30, 2009

China Life Insurance Company Limited

(Translation of registrant’s name into English)

16 Chaowai Avenue
Chaoyang District
Beijing 100020, China
Tel: (86-10) 8565-9999
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F þ       Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes o       No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    

 

 

Commission File Number 001-31914

China Life Insurance Company Limited issued an announcement on October 30, 2009, a copy of which is attached as Exhibit 99.1 hereto.

EXHIBIT LIST

Exhibit		Description
99.1		Announcement, dated October 30, 2009

Commission File Number 001-31914

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		China Life Insurance Company Limited
		(Registrant)
		By:		/s/ Wan Feng
				(Signature)
October 30, 2009				Name:		Wan Feng
				Title:		President and Executive Director

Commission File Number 001-31914

EXHIBIT INDEX

Exhibit		Description
99.1		Announcement, dated October 30, 2009

Commission File Number 001-31914

EXHIBIT 99.1

CHINA LIFE INSURANCE COMPANY LIMITED
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(the “Company”)
(Stock Code: 2628)

Clarification Announcement of the 2009 Third Quarter Report

Reference is made to the Company’s 2009 Third Quarter Report (the “Report”) published on 26 October 2009 on the website of The Hong Kong Exchanges and Clearing Limited and would like to make the following clarification:

The data was erroneously filled in the item of “Operating expenses” of the “For the three months ended 30 September 2009 Company” in the “Income statement for the third quarter of 2009 (unaudited) (continue)” on page 12 of the Report. The figure should be corrected from “(71,421)” to “(71,488)”.

The full text of the 2009 Third Quarter Report (Amended) is attached to this announcement.

		By Order of the Board of
		China Life Insurance Company Limited
		Heng Kwoo Seng
		Company Secretary

As at the date of this announcement, the Board of Directors of the Company comprises:

Executive Directors:		Yang Chao, Wan Feng, Lin Dairen, Liu Yingqi
Non-executive Directors:		Miao Jianmin, Shi Guoqing, Zhuang Zuojin
Independent non-executive Directors:		Sun Shuyi, Ma Yongwei, Sun Changji, Bruce Douglas Moore

Hong Kong, 30 October 2009

Commission File Number 001-31914

CHINA LIFE INSURANCE COMPANY LIMITED

(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 2628)

2009 THIRD QUARTER REPORT

This announcement is made by China Life Insurance Company Limited (the “Company”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The financial data of the Company for the third quarter of 2009 are unaudited and have been prepared in accordance with the China Accounting Standards for Business Enterprises.

1.

Important Notice

1.1 The Company’s Board of Directors, the Supervisory Committee, its Directors, Supervisors and Senior Management warrant that there are no false representations, misleading statements or material omissions in the 2009 third quarter report, and jointly and severally accept full responsibility for the authenticity, accuracy and completeness of the information contained in this report.

1.2 Of the eleven Directors of the Company, ten attended in person. The Chairman and Executive Director Mr Yang Chao, Executive Directors Mr Lin Dairen and Ms Liu Yingqi, Non-executive Directors Mr Miao Jianmin, Mr Shi Guoqing and Ms Zhuang Zuojin, and Independent Non-executive Directors Mr Ma Yongwei, Mr Sun Changji and Mr Bruce Douglas Moore attended the meeting. Independent Non-executive Director Mr Sun Shuyi attended the meeting by phone. Executive Director Mr Wan Feng was absent and gave written authorization to Executive Director Mr Yang Chao to act as proxy to attend and vote in the meeting.

1.3 The Company’s 2009 third quarter financial report is unaudited.

1.4 Mr Yang Chao, Chairman of the Company, Mr Liu Jiade, Vice President in charge of financial affairs, Ms Hwei-Chung Shao, Chief Actuary and Mr Yang Zheng, Head of the Finance Department, confirm that the financial statements in the 2009 third quarter report are true and complete.

Commission File Number 001-31914

2.

Basic Information of the Company

2.1 Major accounting data and financial indicators

Currency: RMB

										Increase/(decrease)
										compared to
		As at				As at				31 December 2008
		30 September 2009				31 December 2008				(%)
Total assets (million)			1,128,245				990,164				13.95
Shareholders’ equity (excluding minority interest) (million)			148,127				134,957				9.76
Net assets per share attributable to shareholders of the Company (RMB)			5.24				4.77				9.76

						Increase/(decrease)
						compared to the
		For the nine months ended				same period of 2008
		30 September 2009				(%)
Net cash flows from operating activities (million)			111,549				- 6.90
Net cash flows per share from operating activities (RMB)			3.95				-6.90

										Increase/(decrease)
										compared to the
		For the reporting				For the nine				same reporting period of
		period (from July to				months ended				2008
		September)				30 September 2009				(%)
Net profit attributable to shareholders of the Company (million)			5,954				19,874				154.55
Basic earnings per share (RMB)			0.21				0.70				154.55
Basic earnings per share after deducting non-recurring items (RMB)			—				0.71				—
Diluted earnings per share (RMB)			0.21				0.70				154.55
Return on net assets (%)			4.02				13.42			An increase of 2.25 percentage points
Return on net assets after deducting non-recurring items (%)			4.06				13.47			An increase of 2.27 percentage points

Commission File Number 001-31914

Note: The data and indicators relating to shareholders’ equity refer to shareholders’ equity attributable to shareholders of the Company. The data and indicators relating to net profit refer to net profit attributable to shareholders of the Company.

As at 30 September 2009, investment assets of the Company were RMB 1,068,706 million. For the nine months ended 30 September 2009, the gross investment yield was 4.71% (or 6.30% if annualized, the simple annualized gross investment yield = (the gross investment yield for the nine months ended 30 September 2009/273)×365), the surrender rate was 2.72%, and the growth rate of premiums earned was -4.74%.

Deducting Non-recurring Items and Amount

RMB Million

		For the nine months ended
Non-recurring items		30 September 2009
Gains/(losses) on disposal of non-current assets			5
Net non-operating income and expenses other than those mentioned above			-118
Effect of income tax expenses			28
Total			-85

Note: As an insurance company, investment (utilization of insurance funds) is one of the main businesses of the Company. Therefore, the non-recurring items do not include fair-value gains/(losses) from held-for-trading financial assets and liabilities, as well as investment income from the disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets.

Commission File Number 001-31914

2.2 The total number of shareholders and the top ten holders of listed shares not subject to trading restrictions as at the end of the reporting period

The total number of shareholders at the end of the reporting period		Number of A share holders: 257,361
		Number of H share holders: 37,206

Particulars of the top ten holders of listed shares not subject to trading restrictions

		Number of listed shares
		not subject to trading
		restrictions held as at
		the end of the
Name of shareholders (Full name)		reporting period				Type
HKSCC Nominees Limited			7,272,252,861			H shares
State Development and Investment Co., Ltd			49,800,000			A shares
ICBC-Lion Stock Securities Investment Fund			29,420,420			A shares
China National Investment & Guaranty Co., Ltd			29,200,000			A shares
IFC-Standard Chartered-Citigroup Global Markets Limited			26,895,476			A shares
UBS AG			26,035,598			A shares
ICBC-Bosera Third Industry Growth Stock Securities Investment Fund			25,000,000			A shares
China Pacific Life Insurance Co., Ltd. —Tradition-Ordinary Insurance Products			23,366,165			A shares
Deutsche Bank Aktiengesellschaft			22,245,458			A shares
China National Nuclear Corporation			20,000,000			A shares
China International Television Corporation			20,000,000			A shares

Commission File Number 001-31914

3.

Significant Events

3.1 Particulars of, and reasons for, material changes in major accounting items and financial indicators of the Company

		þ		Applicable		o		Not applicable

(1) Changes in key financial indicators and its reasons

RMB million

		As at				As at				Increase/
Key Financial		30 September				31 December				(decrease)
Indicators		2009				2008				(%)				Main reasons
Total assets			1,128,245				990,164				13.95			Accumulation of insurance business assets
Total liabilities			978,450				854,283				14.53			Increase in insurance reserves
Shareholders’ equity attributable to shareholders of the Company			148,127				134,957				9.76			Increase in net profit

RMB million

For the nine

For the nine

months ended

months ended

Increase/

Key Financial

30 September

30 September

(decrease)

Indicators

2009

2008

(%)

Main reasons

Operating profit

25,226

12,803

97.03

Considerable increase in total investment income resulting from the rally of capital market

Net profit attributable to shareholders of the Company

19,874

13,111

51.58

Considerable increase in total investment income resulting from the rally of capital market

Commission File Number 001-31914

(2) Material changes in major accounting items and its reasons

RMB million

		As at				As at				Increase/
Key Financial		30 September				31 December				(decrease)
Indicators		2009				2008				(%)				Main reasons
Cash and cash equivalents			58,291				34,085				71.02			The Company’s investment assets allocation requirement
Premiums receivables			9,152				6,433				42.27			Accumulation of renewal premiums receivables
Policy loans			12,337				8,676				42.20			Increase in the requirement of policy loans
Financial assets sold under agreements to repurchase			430				11,390				-96.22			The Company’s cash management requirement
Undistributed profit			41,050				28,686				43.10			Considerable increase in total investment income resulting from the rally of capital market

RMB million

		For the nine months ended				For the nine months ended				Increase/
Key Financial		30 September				30 September				(decrease)
Indicators		2009				2008				(%)				Main reasons
Fair value gains/(losses)			1,184				-8,006				N/A			Increase in fair value gains of held-for-trading financial assets resulting from the rally of capital market
Policyholder dividends			10,975				2,357				365.63			Increase in investment yield of participating insurance business
Impairment losses			2,349				8,730				-73.09			The rally of capital market
Income tax expenses/(incomes)			5,113				-535				N/A			Increase in deferred income tax and decrease in non-taxable income

Commission File Number 001-31914

3.2 Explanation and analysis of significant events and their impacts and solutions

		o		Applicable		þ		Not applicable

3.3 Implementation of undertakings by the Company, its shareholders and de facto controller

		þ		Applicable		o		Not applicable

1. During the Company’s A shares Initial Public Offering, China Life Insurance (Group) Company, the controlling shareholder of the Company, had undertaken that it would not, within 36 months from the listing of the Company’s A shares, transfer or authorize others to manage any shares of the Company that are directly or indirectly owned by it, nor would it allow the Company to acquire such shares. During the reporting period, China Life Insurance (Group) Company has strictly adhered to the above undertaking and has not breached the above undertaking.

2. Before the Company’s A shares Initial Public Offering (as at 30 November 2006), of the land-use rights injected into the Company by China Life Insurance (Group) Company, at the time of the restructuring and establishment of the Company, formalities for change of titles have not been completed for the land-use rights in respect of 4 pieces of land with a total area of 10,421.12 square meters. Of the properties that were injected into the Company, formalities for change of title have not been completed for 6 properties with a gross floor area of 8,639.76 square meters. China Life Insurance (Group) Company undertook that it would, within one year from the date of listing of the Company’s A shares, assist the Company in completing the formalities for change of titles in respect of the 4 pieces of land and 6 properties mentioned above, failing which it will bear any loss that may be suffered by the Company as a result of such defective titles. China Life Insurance (Group) Company has strictly observed its undertaking. As at the end of the reporting period, all changes of titles had been completed except for two properties and related lands of the Shenzhen Branch of the Company. The Shenzhen Branch of the Company continues to use the above properties and related lands and no other parties have made any challenges or presented obstacles for the use of the properties and related lands.

3. China Life-CMG Life Assurance Company Ltd., a subsidiary of China Life Insurance (Group) Company (“CLIC”), is a sino-foreign joint venture established on 4 July 2000 and owned as to 51% by CLIC and as to 49% by CMG Group of Australia. The scope of operations of China Life-CMG Life Assurance Company Ltd. is to conduct the following businesses (excluding statutory insurance business) within the administrative district of Shanghai municipality and in the provinces, autonomous regions and municipalities directly under the Central Government where it has established branches: (1) insurance business such as life insurance, health insurance and accident and casualty insurance; (2) re-insurance of the above insurance businesses. CLIC has agreed that it will, within three years of the listing of the Company on The Stock Exchange of Hong Kong Limited, dispose all of its interests in this joint venture to any third party or otherwise eliminate any competition between China Life-CMG Life Assurance Company Ltd. and the Company. The Company received written notice from CLIC that as at the end of the reporting period, CLIC was working towards the transfer of its interest in China Life-CMG Life Assurance Company Ltd. The Company will make timely disclosure according to the relevant listing rule requirements of the place where the Company is listed.

Commission File Number 001-31914

3.4 Warnings and explanation for any significant changes in net profit or cumulative loss from the beginning of the year to the end of the next reporting period as compared to the same period of last year

		o		Applicable		þ		Not applicable

3.5 The implementation of cash dividend policy during the reporting period

		o		Applicable		þ		Not applicable

This announcement is published in both Chinese and English languages. The Chinese version announcement shall prevail.

		By Order of the Board of
		China Life Insurance Company Limited
		Heng Kwoo Seng
		Company Secretary

As at the date of this announcement, the Board of Directors of the Company comprises:

Executive Directors:		Yang Chao, Wan Feng, Lin Dairen, Liu Yingqi
Non-executive Directors:		Miao Jianmin, Shi Guoqing, Zhuang Zuojin
Independent non-executive Directors:		Sun Shuyi, Ma Yongwei, Sun Changji,
		Bruce Douglas Moore

Hong Kong, 26 October 2009

Commission File Number 001-31914

4.1 Balance sheet as at 30 September 2009(unaudited)

RMB million (Unless otherwise stated)

		As at				As at				As at				As at
		30 September				31 December				30 September				31 December
		2009				2008				2009				2008
ASSETS		Group				Group				Company				Company
Assets
Cash and cash equivalents			58,291				34,085				57,404				33,934
Held-for-trading financial assets			13,687				14,099				13,685				14,068
Securities purchased under agreements to resell			7,368				—				7,368				—
Interest receivables			14,587				13,097				14,518				13,028
Premiums receivables			9,152				6,433				9,152				6,433
Receivable from reinsurers			21				163				21				163
Unearned premium reserves receivable from reinsurers			72				70				72				70
Claim reserves receivable from reinsurers			22				28				22				28
Reserves for long-term health insurance receivables from reinsurers			735				664				735				664
Policy loans			12,337				8,676				12,337				8,676
Debt plan investments			9,250				9,250				9,200				9,200
Other receivables			3,259				1,485				3,184				1,497
Term deposits			283,374				228,272				281,870				228,272
Available-for-sale financial assets			450,220				424,634				447,487				421,379
Held-to-maturity investments			228,024				211,929				228,017				211,929
Long-term equity investments			8,990				8,222				12,855				11,007
Statutory deposits			6,155				6,153				5,653				5,653
Fixed assets			16,276				16,272				15,758				15,939
Intangible assets			2,747				2,763				2,723				2,742
Deferred tax assets			1,169				2,661				1,172				2,654
Other assets			2,509				1,208				2,500				1,205
Total Assets			1,128,245				990,164				1,125,733				988,541

Yang Chao		Liu Jiade		Hwei-Chung Shao		Yang Zheng
Chairman		Vice President		Chief Actuary		Head of
		in charge of				Financial
		Accounting Affairs				Department

Commission File Number 001-31914

4.1 Balance sheet as at 30 September 2009 (unaudited) (continued)

RMB million (Unless otherwise stated)

		As at				As at				As at				As at
		30 September				31 December				30 September				31 December
		2009				2008				2009				2008
LIABILITIES AND EQUITY		Group				Group				Company				Company
Liabilities
Financial assets sold under agreements to repurchase			430				11,390				30				11,200
Premiums received in advance			1,111				1,811				1,111				1,811
Brokerage and commission payable			1,501				1,654				1,500				1,654
Due to reinsurers			32				49				32				49
Salary and welfare payable			3,086				3,652				2,976				3,506
Taxes payable			2,085				1,952				2,077				1,946
Claims payable			5,917				4,980				5,917				4,980
Policyholder dividends payable			44,710				43,178				44,710				43,178
Other payables			1,658				3,501				1,678				3,534
Policyholder deposits and agency business liabilities			2,474				2,073				2,474				2,073
Unearned premium reserves			8,373				6,642				8,373				6,642
Claim reserves			3,017				2,629				3,017				2,629
Reserves for life insurance			892,148				761,349				892,148				761,349
Reserves for long-term health insurance			9,249				7,772				9,249				7,772
Other liabilities			2,659				1,651				2,659				1,651
Total liabilities			978,450				854,283				977,951				853,974
Shareholders’ equity
Share capital			28,265				28,265				28,265				28,265
Capital reserves			63,714				63,917				63,683				63,874
Surplus reserves			11,298				10,289				11,250				10,241
General risk reserves			3,801				3,801				3,801				3,801
Undistributed profit			41,050				28,686				40,783				28,386
Difference from conversion of foreign exchange statements			(1	)			(1	)			—				—
Total equity attributable to shareholders of the Company			148,127				134,957				147,782				134,567
Minority interests			1,668				924				—				—
Total shareholders’ equity			149,795				135,881				147,782				134,567
Total liabilities and Shareholder’s equity			1,128,245				990,164				1,125,733				988,541

Yang Chao		Liu Jiade		Hwei-Chung Shao		Yang Zheng
Chairman		Vice President		Chief Actuary		Head of
		in charge of				Financial
		Accounting Affairs				Department

Commission File Number 001-31914

4.2 Income statement for the third quarter of 2009 (unaudited)

RMB million (Unless otherwise stated)

		For the nine months ended								For the nine months ended
		30 September								30 September
		2009				2008				2009				2008
		Group				Group				Company				Company
1. Operating income			287,231				284,945				287,066				284,722
Premiums earned			235,434				247,139				235,434				247,139
Premium income			237,264				248,595				237,264				248,595
Including: reinsurance premium income			1				—				1				—
Less: Premiums ceded to reinsurers			(101	)			350				(101	)			350
Unearned premium reserves			(1,729	)			(1,806	)			(1,729	)			(1,806	)
Investment income			49,311				45,319				49,291				45,253
Including: income from associates			605				637				605				637
Fair value gains/(losses)			1,184				(8,006	)			1,183				(7,900	)
Foreign exchange losses			(27	)			(1,008	)			(27	)			(1,004	)
Other operating income			1,329				1,501				1,185				1,234
2. Operating expenses			(262,005	)			(272,142	)			(262,062	)			(272,199	)
Surrenders			(27,008	)			(31,942	)			(27,008	)			(31,942	)
Claims paid			(57,927	)			(66,967	)			(57,927	)			(66,967	)
Less: claims recoverable from reinsurers			74				45				74				45
Increase of insurance reserve			(132,307	)			(130,609	)			(132,307	)			(130,609	)
Less: insurance reserves recoverable from reinsurers			66				(144	)			66				(144	)
Policyholder dividends			(10,975	)			(2,357	)			(10,975	)			(2,357	)
Business tax and surcharges			(950	)			(898	)			(916	)			(865	)
Brokerage and commission fees			(17,501	)			(18,395	)			(17,501	)			(18,395	)
Administrative expenses			(12,475	)			(11,284	)			(12,165	)			(11,107	)
Less: expenses recoverable from reinsurers			(29	)			(58	)			(29	)			(58	)
Other operating expenses			(624	)			(803	)			(1,025	)			(1,070	)
Impairment losses			(2,349	)			(8,730	)			(2,349	)			(8,730	)
3. Operating profit			25,226				12,803				25,004				12,523
Add: Non-operating income			35				20				69				20
Less: Non-operating expenses			(148	)			(98	)			(148	)			(94	)
4. Net profit before income tax expenses			25,113				12,725				24,925				12,449
Less: Income tax expenses			(5,113	)			535				(5,018	)			596
5. Net profit			20,000				13,260				19,907				13,045
6. Attributable to:
Shareholders of the Company			19,874				13,111
Minority interests			126				149
7. Earnings per share
Basic earnings per share		RMB0.70				RMB0.46
Diluted earnings per share		RMB0.70				RMB0.46
8. Other Comprehensive gains/(losses)			(202	)			(39,212	)			(191	)			(39,048	)
9. Total Comprehensive gains/(losses)			19,798				(25,952	)			19,716				(26,003	)
Shareholders of the Company			19,671				(26,088	)
Minority interests			127				136

Yang Chao		Liu Jiade		Hwei-Chung Shao		Yang Zheng
Chairman		Vice President		Chief Actuary		Head of
		in charge of Accounting Affairs				Financial Department

Commission File Number 001-31914

4.2 Income statement for the third quarter of 2009 (unaudited) (continue)

RMB million (Unless otherwise stated)

		For the three months ended								For the three months ended
		30 September								30 September
		2009				2008				2009				2008
		Group				Group				Company				Company
1. Operating income			78,835				76,973				78,706				77,081
Premiums earned			63,124				65,694				63,124				65,694
Premium income			64,441				66,532				64,441				66,532
Including: reinsurance premium income			—				—				—				—
Less: Premiums ceded to reinsurers			(37	)			(32	)			(37	)			(32	)
Unearned premium reserves			(1,280	)			(806	)			(1,280	)			(806	)
Investment income			15,618				11,124				15,559				11,257
Including: income from associates			223				83				223				83
Fair value gains/(losses)			(339	)			(240	)			(339	)			(215	)
Foreign exchange losses			(15	)			(28	)			(15	)			(28	)
Other operating income			447				423				377				373
2. Operating expenses			(71,421	)			(74,385	)			(71,488	)			(74,397	)
Surrenders			(7,575	)			(8,416	)			(7,575	)			(8,416	)
Claims paid			(12,440	)			(14,655	)			(12,440	)			(14,655	)
Less: claims recoverable from reinsurers			27				15				27				15
Increase of insurance reserve			(38,638	)			(38,386	)			(38,638	)			(38,386	)
Less: insurance reserves recoverable from reinsurers			55				—				55				—
Policyholder dividends			(2,979	)			(217	)			(2,979	)			(217	)
Business tax and surcharges			(362	)			(141	)			(347	)			(134	)
Brokerage and commission fees			(5,212	)			(5,554	)			(5,212	)			(5,554	)
Administrative expenses			(4,044	)			(3,562	)			(3,960	)			(3,508	)
Less: expenses recoverable from reinsurers			6				12				6				12
Other operating expenses			(195	)			(378	)			(361	)			(451	)
Impairment losses			(64	)			(3,103	)			(64	)			(3,103	)
3. Operating profit			7,414				2,588				7,218				2,684
Add: Non-operating income			22				10				13				10
Less: Non-operating expenses			(103	)			(58	)			(103	)			(58	)
4. Net profit before income tax expenses			7,333				2,540				7,128				2,636
Less: Income tax expenses			(1,315	)			(184	)			(1,256	)			(168	)
5. Net profit			6,018				2,356				5,872				2,468
6. Attributable to:
Shareholders of the Company			5,954				2,339
Minority interests			64				17
7. Earnings per share
Basic earnings per share		RMB0.21				RMB0.08
Diluted earnings per share		RMB0.21				RMB0.08
8. Other Comprehensive gains/(losses)			(9,745	)			2,533				(9,704	)			2,539
9. Total Comprehensive gains/(losses)			(3,727	)			4,889				(3,832	)			5,007
Shareholders of the Company			(3,785	)			4,830
Minority interests			58				59

Yang Chao		Liu Jiade		Hwei-Chung Shao		Yang Zheng
Chairman		Vice President		Chief Actuary		Head of
		in charge of Accounting Affairs				Financial Department

Commission File Number 001-31914

4.3 Cash flow statement for the third quarter of 2009 (unaudited)

RMB million (Unless otherwise stated)

		For the nine months ended								For the nine months ended
		30 September								30 September
		2009				2008				2009				2008
		Group				Group				Company				Company
1. Cash flows from operating activities
Premiums received			233,742				245,667				233,742				245,667
Net cash from reinsurance business			70				269				70				269
Net increase in policyholder investments and agency business liabilities			284				—				284				—
Net cash from held-for-trading financial assets			1,724				19,350				1,695				19,659
Cash received from other operating activities			912				3,876				876				1,530
Sub-total of cash inflows from operating activities			236,732				269,162				236,667				267,125
Cash paid for claims			(83,994	)			(96,557	)			(83,994	)			(96,557	)
Net decrease in policyholder investments and agency business liabilities			—				(50	)			—				(50	)
Cash paid for brokerage and commission fees			(17,654	)			(18,298	)			(17,654	)			(18,295	)
Cash paid for policyholder dividends			(5,758	)			(7,697	)			(5,758	)			(7,697	)
Cash paid to and for employees			(5,882	)			(7,026	)			(5,715	)			(6,286	)
Cash paid for taxes and surcharges			(5,137	)			(9,865	)			(5,043	)			(9,741	)
Cash paid for other operating activities			(6,758	)			(9,847	)			(7,002	)			(8,487	)
Sub-total of cash outflows from operating activities			(125,183	)			(149,340	)			(125,166	)			(147,113	)
Net cash flows from operating activities			111,549				119,822				111,501				120,012

Yang Chao		Liu Jiade		Hwei-Chung Shao		Yang Zheng
Chairman		Vice President		Chief Actuary		Head of
		in charge of				Financial
		Accounting Affairs				Department

Commission File Number 001-31914

4.3 Cash flow statement for the third quarter of 2009 (unaudited) (continued)

RMB million (Unless otherwise stated)

		For the nine months ended								For the nine months ended
		30 September								30 September
		2009				2008				2009				2008
		Group				Group				Company				Company
2. Cash flows from investing activities
Cash received from sales and redemption of investments			217,795				80,169				215,402				78,508
Cash received from investment income			30,144				38,942				30,027				38,843
Net cash received from disposals of fixed assets, intangible assets and other long-term assets			107				109				315				109
Net cash from securities purchased under agreements to resell			—				2,977				—				2,774
Sub-total of cash inflows from investing activities			248,046				122,197				245,744				120,234
Cash paid for acquisition of investments			(306,428	)			(224,926	)			(304,163	)			(222,913	)
Net increase in policy loans			(3,489	)			(2,014	)			(3,489	)			(2,014	)
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets			(993	)			(1,719	)			(980	)			(1,700	)
Net cash paid for securities purchased under agreements to resell			(7,365	)			—				(7,365	)			—
Sub-total of cash outflows from investing activities			(318,275	)			(228,659	)			(315,997	)			(226,627	)
Net cash flows from investing activities			(70,229	)			(106,462	)			(70,253	)			(106,393	)

Commission File Number 001-31914

4.3 Cash flow statement for the third quarter of 2009 (unaudited) (continued)

		For the nine months ended								For the nine months ended
		30 September								30 September
		2009				2008				2009				2008
		Group				Group				Company				Company
3. Cash flows from financing activities
Cash received from capital contributions			720				—				—				—
Net proceeds from investment in securities sold under agreements to repurchase			—				4,664				—				4,666
Sub-total of cash inflows from financing activities			720				4,664				—				4,666
Net cash paid for securities sold under agreements to repurchase			(11,047	)			—				(11,251	)			—
Cash paid for dividends and interest			(6,761	)			(11,967	)			(6,501	)			(11,871	)
Sub-total of cash outflows from financing activities			(17,808	)			(11,967	)			(17,752	)			(11,871	)
Net cash flows from financing activities			(17,088	)			(7,303	)			(17,752	)			(7,205	)
4. Effect of changes in foreign exchange rate on cash and cash equivalents			(26	)			(858	)			(26	)			(853	)
5. Net increase/(decrease) in cash and cash equivalents			24,206				5,199				23,470				5,561
Add: Opening balance of cash and cash equivalents			34,085				25,317				33,934				24,808
6. Closing balance of cash and cash equivalents			58,291				30,516				57,404				30,369

Yang Chao Chairman		Liu Jiade Vice President in charge of Accounting Affairs		Hwei-Chung Shao Chief Actuary		Yang Zheng Head of Financial Department