China Life Insurance - H: First Take: Accounting volatility should not drive the debate

Our First Take: China Life reported a profit decline in 3Q26, with a net loss of Rmb45B, reflecting financial market volatility. Given the similar quarterly accounting profit volatility already seen across peers, we do not think the market will be surprised by the headline numbers. Instead, we highlight three more relevant points from the result. First, 9M26 new business value growth stayed positive, with NBV up 13% oya, outperforming Ping An Life and CPIC Life, which declined 13% and 6.5% oya, respectively. This suggests China Life is better positioned than peers on the CSM balance growth trajectory. Second, the company maintained a strong capital base, with a core solvency ratio of 156% as of Sep-26, comfortably above the 50% minimum requirement, giving management greater flexibility to remain constructive on the final dividend proposal following the 50% oya increase in interim DPS;