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N,-,71,;?"717,r7 .rf ) 0( I 44 1117011e,if Afrgae 1, tlyk rria?,Wix 7.4.44," rpcbaw.nrAwAstitbrawrettr China Life Insurance Company Limited 2010 Annual Results March 23, 2011 'CM EFTA01125131 MX , •Ymr,, -M Forward-looking Statements Certain statements contained in this presentation may be viewed as "forward-looking statements" within the meaning of Section 21E of U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward- looking statements. Further information regarding these risks, uncertainties and other factors are included in the Company's Annual Report on Form 20-F for the fiscal year ended on December 31, 2009 filed with the U.S. Securities and Exchange Commission, or SEC, on April 29, 2010; and in the Company's other filings with the SEC. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this presentation is as of the date of this presentation, and the Company undertakes no duty to update such information, except as required under applicable law. Unless otherwise indicated, the Chinese insurance market information set forth in this presentation is based on public information released by CIRC. V r - K'v• MatterME EFTA01125132 Section Business Review Section IV Investment Performance ::::ZESZVEKar% 2 EFTA01125133 n•:CaNOtrIM4st=tV'M? Section I: 2010 Highlights 06-4,0,wogq-e‘P.‘V,; -stft'M EFTA01125134 EFTA01125135 Gross Written Premiums Gross Investment Income Attributable to E uit Holders Investment Assets Equity Holders' Equity Weighted Average ROE EV per Share 318,229 33,626 1,336,245 208,710 10.55 Yuan 2009 275,970 60,921 32,881 1,172,145 211,072 17.13% isoeAccoasvaltsc, 10.09 Yuan +0.46 Yuan C....t.•••••••fterGrnaglAWO RMB mn Change +15.3% -1.11 ppts Note : Gross Investment Income (IFRS) = Investment Income + Net Realized Gains on Financier Assets + Net Fair Value Gains through Income - Business Tax and Extra Charges for Investment EFTA01125136 Further Enhanced Corporate Infrastructure, Co Continuous efforts for sales force buildup. To stay competitive and effectively manage our sales force, we modified and implemented fundamental policies for individual, group and bancassurance channels, and standardized management was fostered Stronger IT support. Implemented nationwide centralized data management, providing integrated data support to both head office and branches, strengthened sales capabilities with trial launch of E-commerce sales support platform - %.# Upgraded customer service. Nation-wide implementation of customer service standards and further improvement of customer relationship management EFTA01125137 — ifignSilanagemerniidinfernal-Con ro Structure Board of Directors Audit Committee Risk Management Committee Supervrtsiorn Dept Audit Dept. - — - Risk Control Committee Internal Control & Risk Management Committee/ Internal Control & Compliance Dept. Sub-branches Supervision Dept. / L&C Position Compliance with SOX 404 from 2006 for five consecutive years "2010 Internal Control Implementation Manual completed with commitment mechanism for internal control standards ,a3;261:1MISjgthi? Risk precaution and screening rolled out by setting up risk identification, evaluation. and reporting system between headquarters and branches Credit rating classification for individual agents initiated EFTA01125138 Proactively Assuming Social Responsibilitie The largest life insurance sales force in China, creating a lot of job opportunities Expanding the New Rural Cooperative Medical Insurance and complementary medical insurance Proactive in assuming social responsibilities with due consideration to both social and corporate interests Offering donations for earthquake relief and sponsoring earthquake orphans 57-EMMIDE EFTA01125139 FT "Fortune 500" for 8 consecutive years, 118th in 2010, 8th among the named 54 Chinese enterprises FORTUNE en) Ot Yit ri3MA Wor14 fkiSISOMMT Enlisted in "Global Top 500 Most Valuable Brands" for 4 consecutive years, 5th among "China's 500 Most Valuable Brands" "Forbes Global 2000" for 7 consecutive years FINANCIAL -111‘ffS "FT Global Top 500", 41st in place by market cap "Corporate Governance of the Year" and "100 Most Profitable FinanceAsia Companies" by FinanceAsia in 2010 aeh illtrilMIEN Enlisted three indices of Hang Seng Corporate Sustainability Index Series EFTA01125140 Opportunities 7 - / a China's insurance sector will benefit from continued economic growth, per capita income increase, consumption mix upgrading, urbanization, aging population , and improvement of people's wellbeing in medium- to long-term ■ Improving regulatory regime creates favorable environment • Improving investment environment and diversified investment channels help insurers enhance their profitability • To maintain economic growth while controlling inflation creates uncertainties on macroeconomic environment and macro- control policies, posing challenges to our business development, asset management and risk control • Increasing competition exerts pressure for maintaining market leadership while optimizing business mix • New bancassurance rules could generate uncertainties towards business development and regular premium growth in bancassurance EFTA01125141 1* Vj. Ali^4j‘ .. • ": %.• 1,e "1 A-poricigra Nvizezvice AfeAMMTMtslaTigitagatgaMSMS>. C 47 51oke.S1* Fiat a fir a rie./reM China Lee Insurance Company Unice Section II: Business Review #1, set4SnRAZOTA.,";;;-• EFTA01125142 Life insurance premiums exhibit a high growth J Bancassurance, as one of the key growth drivers, contributes over 50% of total premiums `No. 2 Interpretation of Accounting Standards for Business Enterprises" steers life insurers to adjust product mix. Premiums from participating products reached a historical high The growth of sales force slowed down due to the deceleration of labor force growth, and , lack of competitiveness of insurance agent compensation FAT EFTA01125143 • • erliWta lliall EFTA01125144 2010 5-9 Years, Single Premiums 28% iiiirtrovrrimatinottetturnifiti EFTA01125145 Steady Growth in Individual, Group and Short-term 8 'individual Business RMB mn 2009 2010 190 la First-year Premiums w Renewal Premiums 2009 20'0 473 RMB mn RMB mn ate" xr„z era re 14.975 2009 2010 w Accident Insurance w Short-term Health Insurance Wit let EFTA01125146 4,31,,t6,141111.44tRIVAI Stable Policy Persistency Experience In 2010, our surrender rate remained at a low level of 2.31%, successfully warding off abnormal surrender risks 3.50% - 3.30% 3.00% -I 2.54% 2.50% - 2.31°/0 2.00% 1.50% 2008 2009 2010 b 96% 94% 92% 90% 88% 86% 84% 82% 86.4% 92.50/0 86.1% 93.7% 04* 87.4% 93.0% 87.6% 2007 2008 2009 2010 -4.14 Months J 26 Months Note :Surrender rate = Surrender amount during the year / (reserves for long-term health insurance and life insurance liabilities at the beginning of the period + premiums from life Insurance and long-term health insurance during the year) Policy persistency rate = in-force policies within the review month that are commenced 14/26 months prior to the review month / policies that are commenced 14/26 months prior to the review month EFTA01125147 Optimizing Key Distribution Channels C.,/ Improving overall agent force quality by enhancing the build-up of agent managers and reducing less productive agents Agent force decreased to 706,000 in 2010 2 Direct Sales Fast growth of short term business, steady development of corporate annuity business, and participated in government-sponsored business. Direct sales representatives increased by 11.8% YoY to 14,000 G Regular premiums grew by 82% YoY, accounting for a higher percentage in total premiums Co Account managers and financial advisors increased by 4.8% YoY to 44,000 7,11,11‘a EFTA01125148 2011 Business Development Strategies Business Strategy: Continue to focus on regular payment business and increase business value Product Strategy: Focus on traditional and participating products while moderately developing unit- linked, universal and other new investment type products Transforming business model, accelerating business growth, deepening reform, enhancing infrastructure. and operating in compliance with regulations, following China Life's unique development path C 41130"-MlIFErktIS-MN.16.-I: Market Strategy: Strengthen market leadership and further improve competitiveness in urban markets Distribution Strategy: Individual agents as the key channel while leveraging complementary strength from group and bancassurance channels te, is EFTA01125149 Maitt •"v0ar.APAVAEORITKOW.oraPaRka.-' ISHOWare.W.WittsvAtragaMit O 41 Maw* fkittlia*FilltnW era Lae Insurance Co:110aq Limited Section III: Financial Summary ..1:1-zeWN EFTA01125150 Total Revenues RMB rnn 275.077 2009 2010 MB elm 48.872 2009 Investment Income • Net Fag Valve Gags through Income 2010 Net Reataect Gams on Fmanaal Assets RIO mn 2009 2010 EFTA01125151 • 7 1% 6 2009 2010 Notes: Commissions and fees rata = Commission and fees / total revenue Administrative expenses ratio = Administrative expenses / total revenue 55% 2C09 5.3% 4102".1417A NtAkti 4i PR.::: 2010 EFTA01125152 Continued Increase in Profitability Net FiroliiAttribittable to Equity Holders RMB mn 32.881 7:4 33.42E C 17.13% RMB Yuan 2009 2010 1.16 2009 1.19 2010 /4979;$4, EFTA01125153 RAW mn 2009 2010 RUB mn 211O72 208,710 2009 2010 Solvency Adequacy Ratio 304% 2010 EFTA01125154 Section IV: Investment Performance EFTA01125155 aro mn 1,336,245 1,172,145 2007 2008 2009 2010 Note: Investment assets =Cash and Cash Equivalents+ Securities at fair value through income+Avallable•tor-sale Securities Held-to-maturity Securities +Term Deposits +Securities Purchased under Agreements to Resell Loans + Statutory Deposits EFTA01125156 v 4:).v Stable Investment Income In 2010, in spite of 'U-shaped' volatility of the equity market with 14.31% decline of SSE Composite Index, we have achieved a stable investment performance RPM mn 31,138 60,92: 64,151 2008 2009 2010 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 5.73% 2008 2009 2010 Gross Investment Yietd(IFRS) = (Investment Income + Net Realized Gains on Financial Assets + Net Fair Value Gains through Income — Business Tax and Extra Charges for InvesimentY((Initial Investment assets + End term Investment assets)/2) EFTA01125157 Bond Yield Curve 42 42 SS IS " 41 Is :1,W; dy•' f I., 07 -IS II IA 03 090.4. 09 *SIO 19463, 094431 094031 041.11 104-a O** 10040 114041 141021 1ON3I 14S* Mn. 44.1 Caw 142.2 Cows" MS VIM 0.44 %Inn Cove.* kW Yea Coin I sty inisbok 12:401206 0022 'Test town, b 44I CUNT 7,41% InYbangt log 11•11“en. 7Youti Cows led US Cuss 10 Von Mots* Mal Yd. Gat Wenn 50424221 SSE Composite Index ..0.0u:la n,.•> EPS . . . Soutre.tomberg & 146nd ices. ot-o. iitatsif3) Equity Investment Alternative Investment IIParairilatemitil* Proactively allocated to negotiated deposits with floating rate and high-yield credit bonds, continued to adjust investment portfolio and improved existing portfolio yield 7 Followed up policies and liquidity changes, seized market timing and structured opportunities, strategically improved investment allocation I Expanded investment channels, invested in 4 floating rate debt plans including "Pudong Development", avoided interest hike risk; participated in GDB secondary issuance, built up real estate and PE investment capabilities and actively sought potential investment targets EFTA01125158 December 31, 2010 December 31, 2009 Fixed-income Securities Term".Deposits Equities Cash & Cash Equivalents 45.51% eiii*4.00fte :ai”fist4:**SW/040 33.05% 49.68% Asiefive.kg,d(,?, 29.43% g.;0 4 9#13 Change (ppts) -4.17 +3.62 EFTA01125159 ,?1,..• N."! ' . tr IN.2631 ,‘,a,M35.2elaTatibff.evaale . O 4 2 %Ftwatt$3..urgeltra China Lie Insurance Company UrnIte0 Section V: Embedded Value Jut EFTA01125160 RMB inn 350,000 300,000 250,000 200,000 150,000 100,000 50,000 Adjusted Net Worth In-force Business Value Cost of Solvency Margin Embedded Value EFTA01125161 Growth of EV and Value of One-Year's Sales Rile rnn 2009 2010 Adjusted Net Worth alln-ferce Business Value(After cost of solvency margin) 'Note: Numbers may not be additive due to rounding. Rhea mn sit7faiMIN EFTA01125162 Embedded Value Movement Analysis RMB mn 350.000 300.000 250.000 200,000 150,000 iebiA . (3) EV at Expected Value of One Operating Beginning of Returns Year's Sales Experience 2010 Variance 413 (9,297) (1.937) (391) (19,785) 109 Investment Methodology Market Value Exchange Experience Model and Adjustments Gains or Variance Assumptions Losses Changes Shareholder Others EV at Dividends December 31, 2010 MEI EFTA01125163 Sensitivity Analysis — Investment Return and Discount Rate RMB inn 145,375 125.022 153,444 la7. 12P, Investment Risk Adjusted Base Case Risk Adjusted Yield Discount Discount -10% rate=11.5% Rate= 10.5% 182.023 Investment Yield +10% kr tiorttnadtiftefikpinliCtaglid RMB mn Investment Yield -10% 18.794 Risk Adjusted Discount rate=11.5% 19,839 Base Case 20,959 22,667 Risk Adjusted Investment Discount Yield Rate=10.5% +10% EFTA01125164 Sensitivity Analysis — Operational And Othe Assumptions RIABmn !Base case scenario Value of in-force business after the cost of solvenc .mar! in Value of one-year's sales after the cost of solvenc mar • in 19,839 153.444 !Cost ratio +10% 151,002 18,014 Cost ratio -10% 155,882 21,664 ! Mortality ratio for non-annuity products + 10%. Mortality ratio for annuity products -10% 151,791 19,757 I ortality ratio for non-annuity products - 10%, Mortality tl ratio for annuity products + 10% 155.118 19,920 !Surrender ratio + 10% 152.080 19,756 'Surrender ratio - 10% 154,857 19,916 'Morbidity Ratio +10% 151,609 19,756 "Morbidity Ratio -10% 155,294 19,922 Claim ratio for short-term insurance + 10% 153,162 19,249 [Cairn ratio for short-term insurance - 10% 153.725 20,429 Solvency Margin at 150% of Statutory Minimum 139,372 17,865 Projected taxable income is based on the accounting profit calculated in accordance with Provisions on 148,722 19,990 Accounting Treatment of Insurance Contracts" EV assumptions applied in 2009 153,452 19,809 n 4.1-4.171ENtrarirS011-4-C3 EFTA01125165 C Thank you! OCA.M111 EFTA01125166