(Bloomberg) — China Life Insurance Co., the nation’s biggest insurer, said estimated profit for last year may jump by about 120 percent from a low base in 2012, aided by higher investment income. The forecast fell short of the 164 percent gain analysts predicted.
Net income was 11.1 billion yuan ($1.84 billion) in 2012, according to a statement to the Hong Kong stock exchange, without giving the profit number for last year. A 120 percent increase would suggest 24.2 billion yuan, trailing the 29.6 billion yuan median estimate of 13 analysts surveyed by Bloomberg News.
“It’s lower than market expectations,” said Olive Xia, a Shanghai-based analyst at Core Pacific-Yamaichi International Ltd., citing a stock-market decline in the fourth quarter as a possible reason. “It could have a negative impact on investor sentiment as the company isn’t showing much improvement in fundamentals either.”