China Life (LFC) gets a boost from record profits

China Life Insurance (NYSE: LFC) has just announced record profits for the first half of 2007, and Jim Trippon. Indeed, in The China Stock Digest, he explains, "Profits doubled its profits over the same period a year ago."

China , he notes, Life attributes the huge gains to higher premiums and outstanding returns on investment earnings.

Meanwhile, he adds, the company continues to expand its services and its affiliations. Most recently, he observes, China Life received permission from the China Insurance Regulatory Commission (CIRC) to offer investment-linked insurance products.

The advisor states, "In view of China's bullish stock market, the investment-linked product could contribute new revenue streams to China Life's future performance.

"The company has enjoyed sharp increases in non-insurance revenues, specifically its return on various investments. The company's investment gains rose 152% to more than $3 billion in 2006.

"In a major move into the pension field, China Life is rumored to be ready to pay as much as $500 million for a 60% stake of Zhongcheng Trust & Investment Corp. In another development, AXA insurance announced that it was preparing to sell its Taiwanese insurance unit to China Life.

"Premiums for China Life were up 8.9% for the first six months of the year. We remain positive about this company's long-term prospects as a beneficiary of China's growing economy."

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