Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document information [line items] | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | CHINA LIFE INSURANCE CO LTD |
Entity Central Index Key | 0001268896 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Document Annual Report | true |
Entity Interactive Data Current | Yes |
Entity Voluntary Filers | No |
Entity Address, Country | CN |
Document Transition Report | false |
Document Shell Company Report | false |
American Depositary Shares [member] | |
Document information [line items] | |
Trading Symbol | LFC |
Title of 12(b) Security | American depositary shares |
Security Exchange Name | NYSE |
H shares [member] | |
Document information [line items] | |
Entity Common Stock, Shares Outstanding | 7,441,175,000 |
Title of 12(b) Security | H shares, par value RMB 1.00 per share |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
A shares [member] | |
Document information [line items] | |
Entity Common Stock, Shares Outstanding | 20,823,530,000 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Property, plant and equipment | ¥ 51,758 | ¥ 47,281 | |
Right-of-use assets | 3,520 | ||
Investment properties | 12,141 | 9,747 | |
Investments in associates and joint ventures | 222,983 | 201,661 | |
Held-to-maturity securities | [1] | 928,751 | 806,717 |
Loans | [2] | 608,920 | 450,251 |
Term deposits | 535,260 | 559,341 | |
Statutory deposits - restricted | 6,333 | 6,333 | |
Available-for-sale securities | 1,058,957 | 870,533 | |
Securities at fair value through profit or loss | 141,608 | 138,717 | |
Derivative financial assets | 428 | ||
Securities purchased under agreements to resell | 4,467 | 9,905 | |
Accrued investment income | 41,703 | 48,402 | |
Premiums receivable | 17,281 | 15,648 | |
Reinsurance assets | 5,161 | 4,364 | |
Other assets | 34,029 | 33,437 | |
Deferred tax assets | 128 | 1,257 | |
Cash and cash equivalents | 53,306 | 50,809 | |
Total assets | 3,726,734 | 3,254,403 | |
Liabilities | |||
Insurance contracts | 2,552,736 | 2,216,031 | |
Investment contracts | 267,804 | 255,434 | |
Policyholder dividends payable | 112,593 | 85,071 | |
Interest-bearing loans and borrowings | 20,045 | 20,150 | |
Lease liabilities | 3,091 | 0 | |
Bonds payable | 34,990 | ||
Financial liabilities at fair value through profit or loss | 3,859 | 2,680 | |
Derivative financial liabilities | 1,877 | ||
Securities sold under agreements to repurchase | 118,088 | 192,141 | |
Annuity and other insurance balances payable | 51,019 | 49,465 | |
Premiums received in advance | 60,898 | 46,650 | |
Other liabilities | 81,114 | 58,426 | |
Deferred tax liabilities | 10,330 | 0 | |
Current income tax liabilities | 223 | 2,630 | |
Statutory insurance fund | 602 | 558 | |
Total liabilities | 3,317,392 | 2,931,113 | |
Equity | |||
Share capital | 28,265 | 28,265 | |
Other equity instruments | 7,791 | 7,791 | |
Reserves | 197,221 | 149,293 | |
Retained earnings | 170,487 | 133,022 | |
Attributable to equity holders of the Company | 403,764 | 318,371 | |
Non-controlling interests | 5,578 | 4,919 | |
Total equity | 409,342 | 323,290 | |
Total liabilities and equity | ¥ 3,726,734 | ¥ 3,254,403 | |
[1] | The fair value of held-to-maturity securities is determined by reference with other debt securities which are measured by fair value. Please refer to Note 4.4. | ||
[2] | Investment contracts at fair value through profit or loss have quoted prices in active markets, and therefore, their fair value was classified as Level 1. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES | |||
Gross written premiums | ¥ 567,086 | ¥ 535,826 | ¥ 511,966 |
Less: premiums ceded to reinsurers | (5,238) | (4,503) | (3,661) |
Net written premiums | 561,848 | 531,323 | 508,305 |
Net change in unearned premium reserves | (1,570) | 700 | (1,395) |
Net premiums earned | 560,278 | 532,023 | 506,910 |
Investment income | 139,919 | 125,167 | 122,727 |
Net realised gains on financial assets | 1,831 | (19,591) | 42 |
Net fair value gains through profit or loss | 19,251 | (18,278) | 6,183 |
Other income | 8,195 | 8,098 | 7,493 |
Total revenues | 729,474 | 627,419 | 643,355 |
BENEFITS, CLAIMS AND EXPENSES | |||
Insurance benefits and claims expenses - Life insurance death and other benefits | (127,877) | (248,736) | (259,708) |
Insurance benefits and claims expenses - Accident and health claims and claim adjustment expenses | (50,783) | (40,552) | (33,818) |
Insurance benefits and claims expenses - Increase in insurance contract liabilities | (330,807) | (189,931) | (172,517) |
Investment contract benefits | (9,157) | (9,332) | (8,076) |
Policyholder dividends resulting from participation in profits | (22,375) | (19,646) | (21,871) |
Underwriting and policy acquisition costs | (81,396) | (62,705) | (64,789) |
Finance costs | (4,255) | (4,116) | (4,601) |
Administrative expenses | (40,275) | (37,486) | (35,953) |
Other expenses | (9,602) | (7,642) | (6,426) |
Statutory insurance fund contribution | (1,163) | (1,097) | (1,068) |
Total benefits, claims and expenses | (677,690) | (621,243) | (608,827) |
Net gains on investments of associates and joint ventures | 8,011 | 7,745 | 7,143 |
Including: share of profit of associates and joint ventures | 9,159 | 7,745 | 7,143 |
Profit before income tax | 59,795 | 13,921 | 41,671 |
Income tax | (781) | (1,985) | (8,919) |
Net profit | 59,014 | 11,936 | 32,752 |
Attributable to: | |||
Equity holders of the Company | 58,287 | 11,395 | 32,253 |
Non-controlling interests | ¥ 727 | ¥ 541 | ¥ 499 |
Basic and diluted earnings per share | ¥ 2.05 | ¥ 0.39 | ¥ 1.13 |
Other comprehensive income that may be reclassified to profit or loss in subsequent periods: | |||
Fair value gains/(losses) on available-for-sale securities | ¥ 69,600 | ¥ (24,591) | ¥ (15,003) |
Amount transferred to net profit from other comprehensive income | (4,635) | 19,549 | (42) |
Portion of fair value changes on available-for-sale securities attributable to participating policyholders | (19,521) | (32) | 5,605 |
Share of other comprehensive income of associates and joint ventures under the equity method | 599 | 735 | 20 |
Exchange differences on translating foreign operations | 237 | 598 | (865) |
Income tax relating to components of other comprehensive income | (11,292) | 1,716 | 2,359 |
Other comprehensive income that may be reclassified to profit or loss in subsequent periods | 34,988 | (2,025) | (7,926) |
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods: | |||
Share of other comprehensive income of associates and joint ventures under the equity method | (76) | ||
Other comprehensive income for the year, net of tax | 34,912 | (2,025) | (7,926) |
Total comprehensive income for the year, net of tax | 93,926 | 9,911 | 24,826 |
Attributable to: | |||
Equity holders of the Company | 93,134 | 9,325 | 24,341 |
Non-controlling interests | ¥ 792 | ¥ 586 | ¥ 485 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - CNY (¥) ¥ in Millions | Total | Share capital [member] | Other equity instruments [member] | Reserves [member] | Retained earnings [member] | Non-controlling interests [member] | |
Beginning balance at Dec. 31, 2016 | ¥ 307,648 | ¥ 28,265 | ¥ 7,791 | ¥ 145,007 | ¥ 122,558 | ¥ 4,027 | |
Net profit | 32,752 | 32,253 | 499 | ||||
Other comprehensive income | (7,926) | (7,912) | (14) | ||||
Total comprehensive income | 24,826 | (7,912) | 32,253 | 485 | |||
Transactions with owners | |||||||
Appropriation to reserves (Note 37) | 8,445 | (8,445) | |||||
Dividends paid (Note 32) | (7,164) | (7,164) | |||||
Dividends to non-controlling interests | (135) | (135) | |||||
Others | 135 | 135 | |||||
Total transactions with owners | (7,164) | 8,580 | (15,609) | (135) | |||
Ending balance at Dec. 31, 2017 | 325,310 | 28,265 | 7,791 | 145,675 | 139,202 | 4,377 | |
Net profit | 11,936 | 11,395 | 541 | ||||
Other comprehensive income | (2,025) | (2,070) | 45 | ||||
Total comprehensive income | 9,911 | (2,070) | 11,395 | 586 | |||
Transactions with owners | |||||||
Capital paid in by non-controlling interests | 105 | 105 | |||||
Appropriation to reserves (Note 37) | 5,885 | (5,885) | |||||
Dividends paid (Note 32) | (11,690) | (11,690) | |||||
Dividends to non-controlling interests | (149) | (149) | |||||
Others | (197) | (197) | |||||
Total transactions with owners | (11,931) | 5,688 | (17,575) | (44) | |||
Ending balance at Dec. 31, 2018 | 323,290 | 28,265 | 7,791 | 149,293 | 133,022 | 4,919 | |
Beginning balance | 320,401 | 28,265 | 7,791 | 149,309 | 130,117 | 4,919 | |
Effect of associates' adoption of new accounting standards | (2,889) | [1] | 16 | (2,905) | |||
Net profit | 59,014 | 58,287 | 727 | ||||
Other comprehensive income | 34,912 | 34,847 | 65 | ||||
Total comprehensive income | 93,926 | 34,847 | 58,287 | 792 | |||
Transactions with owners | |||||||
Appropriation to reserves (Note 37) | 13,087 | (13,087) | |||||
Dividends paid (Note 32) | (4,916) | (4,916) | |||||
Dividends to non-controlling interests | (133) | (133) | |||||
Reserves to retained earnings(Note 37) | (86) | 86 | |||||
Others | 64 | 64 | |||||
Total transactions with owners | (4,985) | 13,065 | (17,917) | (133) | |||
Ending balance at Dec. 31, 2019 | ¥ 409,342 | ¥ 28,265 | ¥ 7,791 | ¥ 197,221 | ¥ 170,487 | ¥ 5,578 | |
[1] | On 1 January 2019, CGB began to adopt IFRS 9. The cumulative effect of initial adoption of IFRS 9 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. As at 1 January 2019, The Group’s retained earnings were decreased by RMB2,857 million and reserves were increased by RMB16 million. The Group’s equity as at 1 January 2019 was decreased by RMB2,841 million in total. On 1 January 2019, China Unicom began to adopt IFRS 16. The cumulative effect of initial adoption of IFRS 16 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. The Group’s retained earnings as at 1 January 2019 were decreased by RMB48 million. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Profit before income tax | ¥ 59,795 | ¥ 13,921 | ¥ 41,671 |
Adjustments for: | |||
Investment income | (139,919) | (125,167) | (122,727) |
Net realised and unrealised losses/(gains) on financial assets | (21,082) | 37,869 | (6,225) |
Insurance contracts | 335,971 | 190,210 | 176,148 |
Depreciation and amortisation | 4,379 | 2,638 | 2,240 |
Foreign exchange losses/(gains) | 67 | 194 | (52) |
Net gains on investments of associates and joint ventures | (8,011) | (7,745) | (7,143) |
Changes in operating assets and liabilities: | |||
Decrease/(increase) in securities at fair value through profit or loss, net | 6,858 | (9,020) | 76,378 |
Financial liabilities at fair value through profit or loss | 1,213 | 1,114 | 931 |
Receivables and payables | 50,622 | 48,838 | 38,967 |
Income tax paid | (8,636) | (9,991) | (4,473) |
Interest received - securities at fair value through profit or loss | 3,811 | 3,527 | 4,497 |
Dividends received - securities at fair value through profit or loss | 964 | 1,164 | 778 |
Net cash inflow/(outflow) from operating activities | 286,032 | 147,552 | 200,990 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Disposals of debt investments | 112,182 | 48,942 | 30,540 |
Maturities of debt investments | 133,519 | 110,425 | 142,845 |
Disposals of equity investments | 450,014 | 278,003 | 506,306 |
Disposals of property, plant and equipment | 72 | 274 | 103 |
Disposals of subsidiaries | 1,432 | ||
Purchases of debt investments | (504,292) | (294,238) | (516,051) |
Purchases of equity investments | (545,657) | (335,301) | (500,737) |
Purchases of property, plant and equipment | (11,415) | (19,546) | (9,619) |
Investments in associates and joint ventures | (23,389) | (34,928) | (37,304) |
Decrease/(increase) in term deposits, net | 24,102 | (109,590) | 92,148 |
Decrease in securities purchased under agreements to resell, net | 5,468 | 26,258 | 6,981 |
Interest received | 116,846 | 106,342 | 98,012 |
Dividends received | 25,169 | 19,503 | 29,014 |
Increase in policy loans, net | (32,707) | (34,208) | (15,515) |
Cash paid related to other investing activities | 0 | (309) | (399) |
Cash received related to other investing activities | 1,141 | ||
Net cash inflow/(outflow) from investing activities | (247,515) | (238,373) | (173,676) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Increase/(decrease) in securities sold under agreements to repurchase, net | (73,552) | 104,832 | 6,228 |
Interest paid | (3,072) | (3,990) | (5,671) |
Repayment of borrowings | (365) | ||
Dividends paid to equity holders of the Company | (4,916) | (11,690) | (7,164) |
Dividends paid to non-controlling interests | (133) | (149) | (135) |
Proceeds from issue of bonds | 34,988 | ||
Cash received from borrowings | 123 | 727 | 3,121 |
Payment of principal portion of lease liabilities | (1,348) | ||
Capital injected into subsidiaries by non-controlling interests | 12,961 | 3,560 | 4,034 |
Cash repaid to lenders | (38,000) | ||
Cash paid related to other financing activities | (761) | (327) | (8,008) |
Net cash inflow/(outflow) from financing activities | (36,075) | 92,963 | (45,595) |
Foreign exchange gains/(losses) on cash and cash equivalents | 55 | 81 | (179) |
Net increase/(decrease) in cash and cash equivalents | 2,497 | 2,223 | (18,460) |
Cash and cash equivalents, beginning of the year | 50,809 | 48,586 | 67,046 |
Cash and cash equivalents, end of the year | 53,306 | 50,809 | 48,586 |
Analysis of balances of cash and cash equivalents | |||
Cash at banks and in hand | 52,800 | 50,792 | 47,444 |
Short-term bank deposits | ¥ 506 | ¥ 17 | ¥ 1,142 |
Organisation and Principal Acti
Organisation and Principal Activities | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Organisation and Principal Activities | 1 ORGANISATION AND PRINCIPAL ACTIVITIES China Life Insurance Company Limited (the “Company”) was established in the People’s Republic of China (“China” or the “PRC”) on 30 June 2003 as a joint stock company with limited liability as part of a group restructuring of China Life Insurance (Group) Company (“CLIC”, formerly China Life Insurance Company) and its subsidiaries (the “Restructuring”). The Company and its subsidiaries are hereinafter collectively referred to as the “Group”. The Group’s principal activities are the writing of life, health, accident and other types of personal insurance business; reinsurance business for personal insurance business; fund management business permitted by national laws and regulations or approved by the State Council of the People’s Republic of China, etc. The Company is a joint stock company incorporated in the PRC with limited liability. The address of its registered office is 16 Financial Street, Xicheng District, Beijing, the PRC. The Company is listed on the New York Stock Exchange, the Stock Exchange of Hong Kong Limited, and the Shanghai Stock Exchange. These consolidated financial statements are presented in millions of Renminbi (“RMB million”) unless otherwise stated. These consolidated financial statements have been approved and authorised for issue by the Board of Directors on 25 March 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Significant Accounting Policies | 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 2.1 Basis of preparation The Group has prepared these consolidated financial statements in accordance with International Financial Reporting Standards (“IFRSs”), amendments to IFRSs and interpretations issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and the applicable disclosure requirements of the Hong Kong Companies Ordinance. The Group has prepared the consolidated financial statements under the historical cost convention, except for financial assets and liabilities at fair value through profit or loss, available for sale securities, insurance contract liabilities and certain property, plant and equipment at deemed cost as part of the Restructuring process. The preparation of financial statements in compliance with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3. 2.1.1 New accounting standards and amendments adopted by the Group for the first time for the financial year beginning on 1 January 2019 Standards/Amendments Content Effective for annual periods IFRS 16 Leases 1 January 2019 IAS 28 Amendments Long-term Interests in Associates and Joint Ventures 1 January 2019 IAS 19 Amendments Plan Amendment, Curtailment or Settlement 1 January 2019 IFRIC 23 Uncertainty over Income Tax Treatments 1 January 2019 Annual Improvements to IFRSs 2015-2017 Cycle Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 1 January 2019 IFRS 16 – Leases IFRS 16 supersedes IAS 17 Leases The Group has adopted IFRS 16 using the modified retrospective method of adoption with the date of initial application of 1 January 2019. Under this method, the standard has been applied retrospectively with the cumulative effect of initial adoption as an adjustment to the opening balance of retained earnings as at 1 January 2019, and the comparative information for 2018 was not restated and continues to be reported under IAS 17. New definition of a lease Under IFRS 16, at inception of a contract, an entity shall assess whether the contract is, or contains, a lease. A contract is, or contains a lease if the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. Control is conveyed where the customer has both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. The Group elected to use the transition practical expedient allowing the standard to be applied only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 at the date of initial application. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed. Therefore, the definition of a lease under IFRS 16 has been applied only to contracts entered or changed on or after 1 January 2019. At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease and non-lease component on the basis of their stand-alone prices. A practical expedient is available to a lessee, which the Group has adopted, not to separate non-lease components and to account for the lease and the associated non-lease components as a single lease component. As a lessee – Leases previously classified as operating leases As a lessee, the Group previously classified leases as either finance leases or operating leases based on the assessment of whether the lease transferred substantially all the rewards and risks of ownership of assets to the Group. Under IFRS 16, the Group applies a single approach to recognise and measure right-of-use assets and lease liabilities for all leases, except for two elective exemptions for leases of low-value assets (elected on a lease by lease basis) and short-term leases (elected by class of underlying asset). The Group has elected not to recognise right-of-use assets and lease liabilities for (i) leases of low-value assets; and (ii) leases, that at the commencement date, have a lease term of 12 months or less. Instead, the Group recognises the lease payments associated with those leases as an expense on a straight-line basis over the lease term. Lease liabilities as at 1 January 2019 were recognised based on the present value of the remaining lease payments, discounted using the incremental borrowing rate as at 1 January 2019. The right-of-use assets were measured at the amount of the lease liabilities, adjusted by the amount of any prepaid or accrued lease payments relating to the leases recognised in the statement of financial position immediately before 1 January 2019. All these assets were assessed for any impairment based on IAS 36 – Impairment of Assets The Group has used the following elective practical expedients when applying IFRS 16 as at 1 January 2019: • Applied the recognition exemptions for leases of low value assets and leases with lease term that ends within 12 months from the date of initial application; • Applied a single discount rate to a portfolio of leases with reasonably similar characteristics on the measurement of the lease liability; • Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application; • Used hindsight in determining the lease term where the contract contains options to extend or terminate the lease; • Relied on its assessment of whether leases are onerous immediately before the date of initial application. The Group adjusted the right-of-use asset at the date of initial application by the amount of any provision for onerous leases recognised in the statement of financial position immediately before the date of initial application. In addition to land use rights, the Group recognised other right-of-use assets of RMB2,555 million and lease liabilities of RMB2,185 million at the date of initial application. Compared to the end of 2018, after the relative adjustments, total assets and total liabilities at the group level as at 1 January 2019 both increased by RMB2,194 million. The reconciliation between the minimum unpaid lease payments of the operating leases disclosed in the Group’s financial statements for the year ended 31 December 2018, and the lease liabilities recognised in the consolidated statement of financial position at the date of initial application are as follows: RMB million Operating lease commitments as at 31 December 2018 2,474 Less: short-term leases, those leases with a remaining lease term less than 12 months from the date of initial application and leases of low-value assets (132 ) impact of discounting at the incremental borrowing rate as at 1 January 2019 (157 ) Lease liabilities as at 1 January 2019 2,185 The weighted average incremental borrowing rate the Group adopted as at 1 January 2019 in calculating the lease liabilities in the consolidated statement of financial position was 3.76%. Refer to Note 2.7 for relevant accounting policies. IAS 28 Amendments Long-term interests in associates and joint ventures In October 2017, the IASB issued the amendments to IAS 28 which indicates that an entity applies IFRS 9 to long-term interests in an associate or joint venture to which the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture (long-term interests). The amendments also clarify that for the entity that applies the temporary exemption from IFRS 9, IAS 39 applies to the long-term interests, and those entities are not required to restate prior periods to reflect the application of amendments. The amendments are effective for annual periods beginning on or after 1 January 2019. The Group’s accounting treatment in the previous years is in line with the amendments, thus there has been no impact on the Group’s consolidated financial statements as a result of the amendments. IAS 19 Amendments – Plan Amendment, Curtailment or Settlement In February 2018, the IASB issued the amendments to IAS 19 which addresses the accounting when a plan amendment, curtailment or settlement occurs during a reporting period. The amendments are effective for annual periods beginning on or after 1 January 2019 and apply retrospectively. The Group has no defined benefit plans. The amendments under IAS 19 have had no impact on the Group’s consolidated financial statements. The Group will adopt the amendments if such business occurs in the future. IFRIC 23 Uncertainty over Income Tax Treatments In June 2017, the IASB issued IFRIC Interpretation 23 which clarifies application of the recognition and measurement requirements in IAS 12 Income Taxes The Group’s accounting treatment in the previous years is in line with the clarification of the interpretation. The clarification has had no significant impact on the Group’s consolidated financial statements. Annual Improvements to IFRSs 2015-2017 Cycle – Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 In December 2017, the Annual Improvements 2015-2017 Cycle 2.1.2 New accounting standards and amendments that are effective but temporary exemption is applied by the Group for the financial year beginning on 1 January 2019 Standards/Amendments Content Effective for annual periods IFRS 9 Financial Instruments 1 January 2018 IFRS 9 – Financial Instruments In July 2014, the IASB issued the final version of IFRS 9, bringing together all phases of the financial instruments project to replace IAS 39 and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early adoption permitted. Based on the current assessment, the Group expects that the adoption of IFRS 9 will have a significant impact on the Group’s consolidated financial statements. The Group adopts the temporary exemption permitted in Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts Classification and measurement IFRS 9 requires that the Group classifies debt instruments based on the combined effect of application of business models (hold to collect contractual cash flows, hold to collect contractual cash flows and sell financial assets or other business models) and contractual cash flow characteristics (solely payments of principal and interest on the principal amount outstanding or not). Debt instruments not giving rise to cash flows that are solely payments of principal and interest on the principal amount outstanding would be measured at fair value through profit or loss. Other debt instruments giving rise to cash flows that are solely payments of principal and interest on the principal amount outstanding would be measured at amortised cost, fair value through other comprehensive income (“FVOCI”) or fair value through profit or loss, based on their respective business models. The Group analysed the contractual cash flow characteristics of financial assets as at 31 December 2019 and made relevant disclosures in Note 33. Equity instruments would generally be measured at fair value through profit or loss unless the Group elects to measure at FVOCI for certain equity investments not held for trading. This will result in unrealised gains and losses on equity instruments currently classified as available-for-sale securities being recorded in income going forward. Currently, these unrealised gains and losses are recognised in other comprehensive income (“OCI”). If the Group elects to record equity investments at FVOCI, gains and losses would never be recognised in income except for the received dividends which do not represent a recovery of part of the investment cost. Impairment IFRS 9 replaces the “incurred loss” model with the “expected credit loss” model which is designed to include forward-looking information. The Group is in the process of developing and testing the key models required under IFRS 9 and analysing the impact on the expected loss provision; the Group believed that the provision for debt instruments of the Group under the “expected credit loss” model would be larger than that under the previous “incurred loss” model. Hedge accounting The Group does not apply the hedge accounting currently, so the Group expects that the new hedge accounting model under IFRS 9 will have no impact on the Group’s consolidated financial statements. 2.1.3 New accounting standards and amendments that are not yet effective and have not been early adopted by the Group for the financial year beginning on 1 January 2019 Standards/Amendments Content Effective for annual periods beginning on or after IFRS 3 Amendments Definition of a Business 1 January 2020 IAS 1 and IAS 8 Amendments Definition of Material 1 January 2020 IFRS 9, IAS 39 and IFRS 7 Amendments Interest Rate Benchmark Reform 1 January 2020 IFRS 17 Insurance Contracts 1 January 2021 IFRS 10 and IAS 28 Amendments Sale or Contribution of Assets between an Investor and its Associate or Joint Venture No mandatory effective date yet The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. IFRS 3 Amendments – Definition of a business In October 2018, the IASB issued amendments to the definition of a business in IFRS 3 Business Combinations. IAS 1 and IAS 8 Amendments – Definition of Material In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements Accounting Policies, Changes in Accounting Estimates and Errors IFRS 9, IAS 39 and IFRS 7 Amendments – Interest Rate Benchmark Reform In September 2019, the IASB issued the amendments to IFRS 9 Financial Instruments Financial Instruments: Recognition and Measurement Financial Instruments: Disclosures IFRS 17 – Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts Insurance Contracts In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies for measurement purposes, IFRS 17 provides a comprehensive model (the general model) for insurance contracts, supplemented by the variable fee approach for contracts with direct participation features and the premium allocation approach mainly for short-duration which typically applies to certain non-life insurance contracts. The main features of the new accounting model for insurance contracts are as follows: • The fulfilment cash flows including the expected present value of future cash flows and explicit risk adjustment, remeasured every reporting period; • A contractual service margin represents the unearned profitability of the insurance contracts and is recognised in profit or loss over the coverage period; • Certain changes in the expected present value of future cash flows are adjusted against the contractual service margin and thereby recognised in profit or loss over the remaining coverage period; • The effect of changes in discount rates will be reported in either profit or loss or OCI, determined by an accounting policy choice; • The recognition of insurance revenue and insurance service expenses in the statement of comprehensive income based on the concept of services provided during the period; • Amounts that the policyholder will always receive, regardless of whether an insured event happens (non-distinct investment components), are not presented in the statement of comprehensive income, but are recognised directly in the statement of financial position; • Insurance services results are presented separately from the insurance finance income or expense; • Extensive disclosures to provide information on the recognised amounts from insurance contracts and the nature and extent of risks arising from these contracts. IFRS 17 is effective for annual reporting periods beginning on or after 1 January 2021. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. Retrospective application is required, with comparative figures required. However, if full retrospective application for a group of insurance contracts is impracticable, the entity is required to choose either the modified retrospective approach or the fair value approach. In March 2020, the IASB decided to defer the effective date for IFRS 17 by two years to reporting periods beginning on or after 1 January 2023. The IASB also decided to extend the exemption currently in place for qualifying insurers regarding the application of IFRS 9, meaning that they could apply both standards for the first time to reporting periods beginning on or after 1 January 2023. As at the approval date of the consolidated financial statements, the amendments to IFRS 17 have not yet been issued by the IASB. The Group is currently assessing the impact of the standard upon adoption. IFRS 10 and IAS 28 Amendments – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Amendments to IFRS 10 and IAS 28 address an inconsistency between the requirements in IFRS 10 and IAS 28 in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The amendments require a full recognition of a gain or loss when the sale or contribution of assets between an investor and its associate or joint venture constitutes a business. For a transaction involving assets that do not constitute a business, a gain or loss resulting from the transaction is recognised in the investor’s profit or loss only to the extent of the unrelated investor’s interest in that associate or joint venture. The IASB has deferred the effective date of these amendments indefinitely, but an entity that early adopts the amendments must apply them prospectively. The Group will apply these amendments when they become effective. 2.2 Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries for the year ended 31 December 2019. Subsidiaries are those entities which are controlled by the Group (including the structured entities controlled by the Group). Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: • power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee); • exposure, or rights, to variable returns from its involvement with the investee; and • the ability to use its power over the investee to affect its returns. When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • the contractual arrangement with the other vote holders of the investee; • rights arising from other contractual arrangements; and • the Group’s voting rights and potential voting rights. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Profit or loss and each component of OCI are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full upon consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: • derecognises the assets (including goodwill) and liabilities of the subsidiary; • derecognises the carrying amount of any non-controlling interests; • derecognises the cumulative translation differences recorded in equity; • recognises the fair value of the consideration received; • recognises the fair value of any investment retained; • recognises any surplus or deficit in profit or loss; and • reclassifies the Group’s share of components previously recognised in OCI to profit or loss or retained earnings, as appropriate, as if the Group had directly disposed of the related assets or liabilities. The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interest issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets. The excess of the aggregate of the consideration transferred, the fair value of any non-controlling interest in the acquiree, and the fair value of any previous equity interest in the acquiree at the acquisition date over the fair value of the net identifiable assets acquired and liabilities assumed is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed, and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. If there is any indication that goodwill is impaired, recoverable amount is estimated and the difference between carrying amount and recoverable amount is recognised as an impairment charge. Impairment losses on goodwill are not reversed in subsequent periods. Gains or losses on the disposal of an entity take into consideration the carrying amount of goodwill relating to the entity sold. The investments in subsidiaries are accounted for only in the Company’s statement of financial position at cost less impairment. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments. Cost also includes direct attributable costs of investment. The results of subsidiaries are accounted for by the Company on the basis of dividends received and receivable. Transactions with non-controlling interests The Group treats transactions with non-controlling interests that do not result in loss of controls as equity transactions. For shares purchased from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposal of shares to non-controlling interests are also recorded in equity. When the Group ceases to have control or significant influence, any retained interest in the entity is re-measured to its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in OCI in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in OCI are reclassified to profit or loss. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in OCI is reclassified to profit or loss as appropriate. 2.3 Associates and joint ventures Associates are entities over which the Group has significant influence, generally accompanying a shareholding of between 20% and 50% of the voting rights of the investee. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. Joint ventures are the type of joint arrangements whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Investments in associates and joint ventures are accounted for using the equity method of accounting and are initially recognised at cost. The Group’s share of post-acquisition profit or loss of its associates and joint ventures is recognised in net profit, and its share of post-acquisition movements in OCI is recognised in the consolidated statement of comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associate or joint venture equals or exceeds its interest in the associate or joint venture, including any other unsecured receivables, the Group does not recognise further losses unless it has obligations to make payments on behalf of the associate or joint venture. Unrealised gains on transactions between the Group and its associates or joint ventures are eliminated to the extent of the Group’s interests in the associates or joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Associates and joint ventures’ accounting policies have been changed where necessary to ensure consistency with the policies adopted by the Group. Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of acquired associates or joint ventures at the date of acquisition. Goodwill on acquisitions of associates and joint ventures is included in investments in associates and joint ventures and is tested for impairment as part of the overall balance. Impairment losses on goodwill are not reversed. Gains or losses on the disposal of an entity take into consideration the carrying amount of goodwill relating to the entity sold. The Group determines at each reporting date whether there is any objective evidence that the investments in associates and joint ventures are impaired. If this is the case, an impairment loss is recognised for the amount by which the investment’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the investment’s fair value less costs of disposal and value in use. The impairment of investments in the associates and joint ventures is reviewed for possible reversal at each reporting date. The investments in associates and joint ventures are stated at cost less impairment in the Company’s statement of financial position. The results of associates and joint ventures are accounted for by the Company on the basis of dividends received and receivable. 2.4 Segment reporting The Group’s operating segments are presented in a manner consistent with the internal management reporting provided to the operating decision maker - president office for deciding how to allocate resources and for assessing performance. Operating segment refers to the segment within the Group that satisfies the following conditions: i) the segment generates income and incurs costs from daily operating activities; ii) management evaluates the operating results of the segment to make resource allocation decision and to evaluate the business performance; and iii) the Group can obtain relevant financial information of the segment, including financial condition, operating results, cash flows and other financial performance indicators. 2.5 Foreign currency translation The Company’s functional currency is RMB. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. The reporting currency of the consolidated financial statements of the Group is RMB. Transactions in foreign currencies are translated at the exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates ruling at the end of the reporting period. Exchange differences arising in these cases are recognised in net profit. 2.6 Property, plant and equipment Property, plant and equipment, are stated at historical costs less accumulated depreciation and any accumulated impairment losses, except for those acquired prior to 30 June 2003, which are stated at deemed cost less accumulated depreciation and any accumulated impairment losses. The historical costs of property, plant and equipment comprise its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Expenditure incurred after terms of property, plant and equipment have been put into operation, such as repairs and maintenance, is normally charged to the statement of comprehensive income in the period in which it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalised in the carrying amount of the assets as a replacement. Where significant parts of property, plant and equipment are required to be replaced at intervals, the Group recognises such parts as individual assets with specific useful lives and depreciates them accordingly. Depreciation Depreciation is computed on a straight-line b a e Estimated useful lives Buildings 15 to 35 years Office equipment, furniture and fixtures 3 to 11 years Motor vehicles 4 to 8 years Leasehold improvements Over the shorter of the remaining term of the lease and the useful lives The residual values, depreciation method and useful lives are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items of property, plant and equipment. Assets under construction mainly represent buildings under construction, which are stated at cost less any impairment losses and are not depreciated, except for those acquired prior to 30 June 2003, which are stated at deemed cost less any accumulated impairment losses. Cost comprises the direct costs of construction and capitalised borrowing costs on related borrowed funds during the period of construction. Assets under construction are reclassified to the appropriate category of property, plant and equipment, investment properties or other assets when completed and ready for use. Impairment and gains or losses on disposals Property, plant and equipment are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised in net profit for the amount by which the carrying amount of the asset exceeds its recoverabl |
Critical Accounting Estimates a
Critical Accounting Estimates and Judgements | 12 Months Ended |
Dec. 31, 2019 | |
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Critical Accounting Estimates and Judgements | 3 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities. Estimates and judgements are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group exercises significant judgement in making appropriate assumptions. Areas susceptible to changes in critical estimates and judgements, which affect the carrying value of assets and liabilities, are set out below. It is possible that actual results may be different from the estimates and judgements referred to below. 3.1 Estimates of future benefit payments and premiums arising from long-term insurance contracts The determination of the liabilities under long-term insurance contracts is based on estimates of future benefit payments, premiums and relevant expenses made by the Group and the margins. Assumptions about mortality rates, morbidity rates, lapse rates, discount rates, expense assumptions and policy dividend assumptions are made based on the most recent historical analysis and current and future economic conditions. The liability uncertainty arising from uncertain future benefit payments, premiums and relevant expenses is reflected in the risk margin. The residual margin relating to the long-term insurance contracts is amortised over the expected life of the contracts, based on the assumptions (mortality rates, morbidity rates, lapse rates, discount rates, expenses assumption and policy dividend assumptions) that are determined at inception of the contracts and remain unchanged for the duration of the contracts. The judgements exercised in the valuation of insurance contract liabilities (including contracts with DPF) affect the amounts recognised in the consolidated financial statements as insurance contract benefits and insurance contract liabilities. The impact of the various assumptions and their changes are described in Note 15. 3.2 Financial instruments The Group’s principal investments are debt securities, equity securities, term deposits and loans. The critical estimates and judgements are those associated with the recognition of impairment and the measurement of fair value. The Group considers a wide range of factors in the impairment assessment as described in Note 2.9.c. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When the fair values of financial assets and liabilities recorded in the consolidated statement of financial position cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques which require a degree of judgements. The methods and assumptions used by the Group in measuring the fair value of financial instruments are as follows: • debt securities: fair values are generally based upon current bid prices. Where current bid prices are not readily available, fair values are estimated using either prices observed in recent transactions, values obtained from current bid prices of comparable investments or valuation techniques when the market is not active. • equity securities: fair values are generally based upon current bid prices. Where current bid prices are not readily available, fair values are estimated using either prices observed in recent transactions or commonly used market pricing models. Equity securities, for which fair values cannot be measured reliably, are recognised at cost less impairment. • securities purchased under agreements to resell, policy loans, term deposits, interest-bearing loans and borrowings, and securities sold under agreements to repurchase: the carrying amounts of these assets in the consolidated statement of financial position approximate fair value. • fair values of other loans are obtained from valuation techniques. For the description of valuation techniques, please refer to Note 4.4. Using different valuation techniques and parameter assumptions may lead to some differences of fair value estimations. 3.3 Impairment of investments in associates and joint ventures The Group assesses whether there are any indicators of impairment for investments in associates and joint ventures at the end of each reporting period. Investments in associates and joint ventures are tested for impairment when there are indicators that the carrying amounts may not be recoverable. An impairment exists when the carrying value of investments in associates and joint ventures exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The calculation of the fair value less costs of disposal is based on available data from binding sales transactions in an arm’s length transaction of similar assets or observable market prices less incremental costs for disposing of investments in associates and joint ventures. When value in use calculations are undertaken, the Group must estimate the expected future cash flows from investments in associates and joint ventures and choose a suitable discount rate in order to calculate the present value of those cash flows. 3.4 Income tax The Group is subject to income tax in numerous jurisdictions. During the normal course of business, certain transactions and activities for which the ultimate tax determination is uncertain, the Group needs to exercise significant judgement when determining the income tax. If the final settlement results of the tax matters are different from the amounts recorded, these differences will impact the final income tax expense and deferred tax for the period. 3.5 Determination of control over investee The Group applies its judgement to determine whether the control indicators set out in Note 2.2 indicate that the Group controls structured entities such as funds and asset management products. The Group issues certain structured entities (e.g. funds and asset management plans), and acts as a manager for such entities according to the contracts. In addition, the Group may be exposed to variability of returns as a result of holding shares of the structured entities. Determining whether the Group controls such structured entities usually focuses on the assessment of the aggregate economic interests of the Group in the entities (including any carried interests and expected management fees) and the decision-making rights on the entity. As at 31 December 2019, the Group has consolidated some funds issued and managed by the Company’s subsidiary, China Life AMP Asset Management Company (“CL AMP”), some debt investment schemes and asset management products issued and managed by the Company’s subsidiary, China Life Asset Management Company Limited (“AMC”) and some trust schemes and debt investment schemes issued and managed by third parties in the consolidated financial statements. |
Risk Management
Risk Management | 12 Months Ended |
Dec. 31, 2019 | |
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Risk Management | 4 RISK MANAGEMENT Risk management is carried out by the Company’s Risk Management Committee under policies approved by the Company’s Board of Directors. The Group issues contracts that transfer insurance risk or financial risk or both. This section summarises these risks and the way the Group manages them. 4.1 Insurance risk 4.1.1 Types of insurance risks The risk under any one insurance contract is the possibility that an insured event occurs and the uncertainty about the amount of the resulting claim. By the very nature of an insurance contract, this risk is random and therefore unpredictable. For a portfolio of insurance contracts where the theory of probability is applied to the pricing and provisioning, the principal risk that the Group faces under its insurance contracts is that the actual claims and benefit payments are less favourable than the underlying assumptions used in establishing the insurance liabilities. This occurs when the frequency or severity of claims and benefits exceeds the estimates. Insurance events are random, and the actual number of claims and the amount of benefits paid will vary each year from estimates established using statistical techniques. Experience shows that the larger the portfolio of similar insurance contracts, the smaller the relative variability of the expected outcome will be. In addition, a more diversified portfolio is less likely to be affected across the board by a change in any subset of the portfolio. The Group has developed its insurance underwriting strategy to diversify the types of insurance risks accepted and within each of these categories to achieve a sufficiently large population to reduce the variability of the expected outcome. The Group manages insurance risk through underwriting strategies, reinsurance arrangements and claims handling. The Group manages insurance risks through two types of reinsurance agreements, ceding on a quota share basis or a surplus basis, to cover insurance liability risk. Reinsurance contracts cover almost all products, which contain risk liabilities. The products reinsured include: life insurance, accident and health insurance or death, disability, accident, illness and assistance in terms of product category or function, respectively. These reinsurance agreements spread insured risk to a certain extent and reduce the effect of potential losses to the Group. However, the Group’s direct insurance liabilities to the policyholder are not eliminated because of the credit risk associated with the failure of reinsurance companies to fulfil their responsibilities. 4.1.2 Concentration of insurance risks All insurance operations of the Group are located in the PRC. There are no significant differences among the regions where the Group underwrites insurance contracts. The table below presents the Group’s major products of long-term insurance contracts: Product name For the year ended 31 December 2019 2018 RMB million % RMB million % Premiums of long-term insurance contracts Xin Fu Ying Jia Annuity (a) 37,024 7.44% 38,397 7.99% Xin Xiang Jin Sheng Annuity (Type A) (b) 36,345 7.30% 257 0.05% Xin Ru Yi Annuity (c) 21,276 4.28% 21,960 4.57% Kang Ning Whole Life (d) 19,701 3.96% 20,667 4.30% Hong Ying Participating Endowment (e) 558 0.11% 1,448 0.30% Others (f) 382,666 76.91% 397,767 82.79% Total 497,570 100.00% 480,496 100.00% Insurance benefits of long-term insurance contracts Xin Fu Ying Jia Annuity (a) 1,799 2.25% 1,847 1.37% Xin Xiang Jin Sheng Annuity (Type A) (b) 12 0.01% — — Xin Ru Yi Annuity (c) 3,512 4.38% 3,526 2.62% Kang Ning Whole Life (d) 5,119 6.39% 4,663 3.47% Hong Ying Participating Endowment (e) 7,906 9.87% 28,741 21.38% Others (f) 61,776 77.10% 95,621 71.16% Total 80,124 100.00% 134,398 100.00% As at 31 December 2019 As at 31 December 2018 RMB million % RMB million % Liabilities of long-term insurance contracts Xin Fu Ying Jia Annuity (a) 86,876 3.45% 52,440 2.39% Xin Xiang Jin Sheng Annuity (Type A) (b) 27,554 1.09% 193 0.01% Xin Ru Yi Annuity (c) 90,379 3.58% 71,571 3.27% Kang Ning Whole Life (d) 309,519 12.28% 289,230 13.21% Hong Ying Participating Endowment (e) 35,403 1.40% 42,969 1.96% Others (f) 1,971,600 78.20% 1,733,391 79.16% Total 2,521,331 100.00% 2,189,794 100.00% (a) Xin Fu Ying Jia Annuity is an annuity insurance contract with the options for regular premium of 3 years, 5 years or 10 years. Its insured period extends from the effective date of Xin Fu Ying Jia Annuity to the corresponding date when policyholders reach the age of 88. This product is applicable to healthy policyholders between 28-day-old 70-year-old. 88-year-old, (b) Xin Xiang Jin Sheng Annuity (Type A) is an annuity insurance contract with the options for regular premium of 3 years and 5 years paid annually or monthly. Its insured period is 15 years. This product is applicable to healthy policyholders between 28-day-old 65-year-old. (c) Xin Ru Yi Annuity is an annuity insurance contract with the options for regular premium of 3 years, 5 years or 10 years. Its insured period extends from the effective date of Xin Ru Yi Annuity to the corresponding date when policyholders reach the age of 80. This product is applicable to healthy policyholders between 28-day-old 70-year-old. 80-year-old, (d) Kang Ning Whole Life is a whole life insurance contract with the options for single premium or regular premium of 10 years or 20 years. This product is applicable to healthy policyholders under 70-year-old. (e) Hong Ying Participating Endowment is a participating endowment insurance contract with the options for single premium or regular premium of 3 years, 5 years or 10 years. Its insured period can be 6 years, 10 years or 15 years. This product is applicable to healthy policyholders between 30-day-old 70-year-old. (f) Others consist of various long-term insurance contracts with no significant concentration. 4.1.3 Sensitivity analysis Sensitivity analysis of long-term insurance contracts Liabilities for long-term insurance contracts and liabilities unbundled from universal life insurance contracts and unit-linked insurance contracts with insurance risk are calculated based on the assumptions on mortality rates, morbidity rates, lapse rates and discount rates. Changes in insurance contract reserve assumptions reflect the Company’s actual operating results and changes in its expectation of future events. The Company considers the potential impact of future risk factors on its operating results and incorporates such potential impact in the determination of assumptions. Holding all other variables constant, if mortality rates and morbidity rates were to increase or decrease from the current best estimate by 10%, pre-tax Holding all other variables constant, if lapse rates were to increase or decrease from the current best estimate by 10%, pre-tax Holding all other variables constant, if the discount rates were 50 basis points higher or lower than the current best estimate, pre-tax Sensitivity analysis of short-term insurance contracts The assumptions of reserves for claims and claim adjustment expenses may be affected by other variables such as claims payment of short-term insurance contracts, which may result in the synchronous changes to reserves for claims and claim adjustment expenses. Holding all other variables constant, if claim ratios are 100 basis points higher or lower than the current assumption, pre-tax The following table indicates the claim development for short-term insurance contracts without taking into account the impacts of ceded business: Short-term insurance contracts (accident year) Estimated claims expenses 2015 2016 2017 2018 2019 Total Year end 20,497 27,120 33,926 40,601 49,727 1 year later 21,427 27,303 34,845 42,785 2 years later 21,422 26,851 34,328 3 years later 21,422 26,851 4 years later 21,422 Estimated accumulated claims expenses 21,422 26,851 34,328 42,785 49,727 175,113 Accumulated claims expenses paid (21,422 ) (26,851 ) (34,328 ) (40,864 ) (33,244 ) (156,709 ) Unpaid claims expenses — — — 1,921 16,483 18,404 The following table indicates the claim development for short-term insurance contracts taking into account the impacts of ceded business: Short-term insurance contracts (accident year) Estimated claims expenses 2015 2016 2017 2018 2019 Total Year end 20,359 26,897 33,700 40,157 49,175 1 year later 21,262 27,107 34,560 42,280 2 years later 21,259 26,655 34,045 3 years later 21,259 26,655 4 years later 21,259 Estimated accumulated claims expenses 21,259 26,655 34,045 42,280 49,175 173,414 Accumulated claims expenses paid (21,259 ) (26,655 ) (34,045 ) (40,374 ) (32,822 ) (155,155 ) Unpaid claims expenses — — — 1,906 16,353 18,259 4.2 Financial risk The Group’s activities are exposed to a variety of financial risks. The key financial risk is that proceeds from the sale of financial assets will not be sufficient to fund the obligations arising from the Group’s insurance and investment contracts. The most important components of financial risk are market risk, credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. Risk management is carried out by a designated department under policies approved by management. The responsible department identifies, evaluates and manages financial risks in close cooperation with the Group’s operating units. The Group provides written principles for overall risk management, as well as written policies covering specific areas, such as managing market risk, credit risk, and liquidity risk. The Group manages financial risk by holding an appropriately diversified investment portfolio as permitted by laws and regulations designed to reduce the risk of concentration in any one specific industry or issuer. The structure of the investment portfolio held by the Group is disclosed in Note 10. The sensitivity analyses below are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated, such as change in interest rate and change in market price. 4.2.1 Market risk (i) Interest rate risk Interest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Group’s financial assets are principally composed of term deposits, debt securities and loans which are exposed to interest rate risk. Changes in the level of interest rates could have a significant impact on the Group’s overall investment return. Many of the Group’s insurance policies offer guaranteed returns to policyholders. These guarantees expose the Group to interest rate risk. The Group manages interest rate risk through adjustments to portfolio structure and duration, and, to the extent possible, by monitoring the mean duration of its assets and liabilities. The sensitivity analysis for interest rate risk illustrates how changes in interest income and the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates at the end of the reporting period. As at 31 December 2019, if market interest rates were 50 basis points higher or lower with all other variables held constant, pre-tax Pre-tax available-for-sale available-for-sale (ii) Price risk Price risk arises mainly from the volatility of prices of equity securities held by the Group. Prices of equity securities are determined by market forces. The Group is subject to increased price risk mainly because China’s capital markets are relatively volatile. The Group manages price risk by holding an appropriately diversified investment portfolio as permitted by laws and regulations designed to reduce the risk of concentration in any one specific industry or issuer. As at 31 December 2019, if the prices of all the Group’s equity securities had increased or decreased by 10% with all other variables held constant, pre-tax available-for-sale Pre-tax available-for-sale available-for-sale available-for-sale pre-tax (iii) Currency risk Currency risk is the volatility of fair value or future cash flows of financial instruments resulted from changes in foreign currency exchange rates. The Group’s currency risk exposure mainly arises from cash and cash equivalents, term deposits, debt investments, equity investments, interest-bearing loans and borrowings denominated in currencies other than the functional currency, such as US dollar, HK dollar, GB pound and EUR, etc. The following table summarises primary financial assets and financial liabilities denominated in currencies other than RMB as at 31 December 2019 and 2018, expressed in RMB equivalent: As at 31 December 2019 US dollar HK dollar GB pound EUR Others Total Financial assets Equity securities - Available-for-sale 11,086 95,428 — — — 106,514 - Securities at fair value through profit or loss 4,549 660 871 2,166 1,292 9,538 Debt securities - Held-to-maturity 218 — — — — 218 - Loans 1,592 — — — — 1,592 - Available-for-sale 7,557 — — — — 7,557 - Securities at fair value through profit or loss 448 — 35 15 9 507 Term deposits 8,026 32 — — — 8,058 Cash and cash equivalents 1,842 444 406 20 3 2,715 Total 35,318 96,564 1,312 2,201 1,304 136,699 Financial liabilities Interest-bearing loans and other borrowings 12,892 — 2,515 4,638 — 20,045 Total 12,892 — 2,515 4,638 — 20,045 As at 31 December 2018 US dollar HK dollar GB pound EUR Others Total Financial assets Equity securities - Available-for-sale 9,994 41,379 — — — 51,373 - Securities at fair value through profit or loss 4,511 163 951 2,315 1,076 9,016 Debt securities - Held-to-maturity 150 — — — — 150 - Loans 1,766 — — — — 1,766 - Available-for-sale 2,240 — — — — 2,240 - Securities at fair value through profit or loss 627 — 19 7 4 657 Term deposits 7,502 — — — — 7,502 Cash and cash equivalents 1,768 261 287 42 — 2,358 Total 28,558 41,803 1,257 2,364 1,080 75,062 Financial liabilities Interest-bearing loans and other borrowings 13,108 — 2,385 4,657 — 20,150 Total 13,108 — 2,385 4,657 — 20,150 As at 31 December 2019, if RMB had strengthened or weakened by 10% against US dollar, HK dollar, GB pound, EUR and other foreign currencies, with all other variables held constant, pre-tax available-for-sale Pre-tax available-for-sale available-for-sale 4.2.2 Credit risk Credit risk is the risk that one party of a financial transaction or the issuer of a financial instrument will fail to discharge its obligation and cause another party to incur a financial loss. Because the Group’s investment portfolio is restricted to the types of investments as permitted by the China Banking and Insurance Regulatory Commission (“CBIRC”) and a significant portion of the portfolio is in government bonds, government agency bonds, corporate bonds with higher credit rating and term deposits with the state-owned commercial banks, the Group’s overall exposure to credit risk is relatively low. Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. The Group manages credit risk through in-house Credit risk exposure The carrying amount of financial assets included on the consolidated statement of financial position represents the maximum credit risk exposure at the reporting date without taking account of any collateral held or other credit enhancements attached. The Group has no credit risk exposure relating to off-balance Collateral and other credit enhancements Securities purchased under agreements to resell are pledged by counterparties’ debt securities or term deposits of which the Group could take the ownership if the owner of the collateral defaults. Policy loans and most of premium receivables are collateralised by their policies’ cash value according to the terms and conditions of policy loan contracts and policy contracts, respectively. Credit quality The Group’s debt securities investment mainly includes government bonds, government agency bonds, corporate bonds and subordinated bonds or debts, and most of the debt securities are guaranteed by either the Chinese government or Chinese government controlled financial institutions. As at 31 December 2019, 99.8% (as at 31 December 2018: 99.9%) of the corporate bonds held by the Group or the issuers of these corporate bonds had credit ratings of AA/A-2 AA/A-2 As at 31 December 2019, 99.7% (as at 31 December 2018: 99.9%) of the Group’s bank deposits are with the four largest state-owned commercial banks, other national commercial banks and China Securities Depository and Clearing Corporation Limited (“CSDCC”) in the PRC. The Group believes these commercial banks, and CSDCC have a high credit quality. The Group’s most other loans excluding policyholder loans, are guaranteed by third parties or with pledge, or have the fiscal annual budget income as the source of repayment, or have higher credit rating borrowers. As a result, the Group concludes that the credit risk associated with term deposits and accrued investment income thereof, statutory deposits—restricted, other loans, and cash and cash equivalents has not caused a material impact on the Group’s consolidated financial statements as at 31 December 2019 and 2018. The credit risk associated with securities purchased under agreements to resell, policy loans and most of premium receivables has not caused a material impact on the Group’s consolidated financial statements taking into consideration their sufficient collateral held and maturity terms of no more than one year as at 31 December 2019 and 2018. 4.2.3 Liquidity risk Liquidity risk is the risk that the Group is unable to obtain funds at a reasonable funding cost when required to meet a repayment obligation and fund its asset portfolio within a certain time. In the normal course of business, the Group attempts to match the maturity of financial assets to the maturity of insurance and financial liabilities. The following tables set forth the contractual and expected undiscounted cash flows for financial assets and liabilities and insurance liabilities: Contractual and expected cash flows (undiscounted) As at 31 December 2019 Carrying value Without maturity Not later than 1 year Later than 1 year but not later than 3 years Later than 3 years but not later than 5 years Later than 5 years Financial assets Contractual cash inflows Equity securities 605,996 605,996 — — — — Debt securities 1,523,748 — 107,632 319,656 250,805 1,701,886 Loans 608,920 — 232,715 174,260 117,001 191,290 Term deposits 535,260 — 119,827 184,707 294,477 8,087 Statutory deposits - restricted 6,333 — 479 2,315 4,594 — Securities purchased under agreements to resell 4,467 — 4,467 — — — Accrued investment income 41,703 — 40,710 561 432 — Premiums receivable 17,281 — 17,281 — — — Cash and cash equivalents 53,306 — 53,306 — — — Subtotal 3,397,014 605,996 576,417 681,499 667,309 1,901,263 Financial and insurance liabilities Expected cash outflows Insurance contracts 2,552,736 — 179,925 209,603 (35,264 ) (5,015,173 ) Investment contracts 267,804 — (24,020 ) (29,900 ) 23,462 (606,662 ) Contractual cash outflows Securities sold under agreements to repurchase 118,088 — (118,088 ) — — — Financial liabilities at fair value through profit or loss 3,859 (3,859 ) — — — — Annuity and other insurance balances payable 51,019 — (51,019 ) — — — Interest-bearing loans and other borrowings 20,045 — (4,776 ) (1,572 ) (16,111 ) — Bonds payable 34,990 — (332 ) (2,996 ) (37,996 ) — Lease liabilities 3,091 — (1,331 ) (1,491 ) (440 ) (74 ) Subtotal 3,051,632 (3,859 ) (19,641 ) 173,644 (66,349 ) (5,621,909 ) Net cash inflow/(outflow) 345,382 602,137 556,776 855,143 600,960 (3,720,646 ) Contractual and expected cash flows (undiscounted) As at 31 December 2018 Carrying Without Not Later than 1 Later than 3 Later Financial assets Contractual cash inflows Equity securities 422,780 422,780 — — — — Debt securities 1,391,310 — 80,801 290,449 298,644 1,417,910 Loans 450,251 — 182,978 101,149 88,718 172,050 Term deposits 559,341 — 172,525 145,634 237,508 77,961 Statutory deposits - restricted 6,333 — 782 739 6,005 — Securities purchased under agreements to resell 9,905 — 9,905 — — — Accrued investment income 48,402 — 47,834 540 28 — Premiums receivable 15,648 — 15,648 — — — Cash and cash equivalents 50,809 — 50,809 — — — Subtotal 2,954,779 422,780 561,282 538,511 630,903 1,667,921 Financial and insurance liabilities Expected cash outflows Insurance contracts 2,216,031 — 197,289 222,170 (13,489 ) (4,391,739 ) Investment contracts 255,434 — (13,098 ) (10,293 ) (11,422 ) (629,318 ) Contractual cash outflows Securities sold under agreements to repurchase 192,141 — (192,141 ) — — — Financial liabilities at fair value through profit or loss 2,680 (2,680 ) — — — — Annuity and other insurance balances payable 49,465 — (49,465 ) — — — Interest-bearing loans and other borrowings 20,150 — (16,977 ) (3,798 ) — — Subtotal 2,735,901 (2,680 ) (74,392 ) 208,079 (24,911 ) (5,021,057 ) Net cash inflow/(outflow) 218,878 420,100 486,890 746,590 605,992 (3,353,136 ) The amounts set forth in the tables above for insurance and investment contracts in each column are the undiscounted cash flows representing expected future benefit payments taking into consideration of future premiums payments or deposits from policyholders. The excess cash inflows from matured financial assets will be reinvested to cover any future liquidity exposures. The estimate is subject to assumptions related to mortality, morbidity, the lapse rate, the loss ratio of short-term insurance contracts, expense and other assumptions. Actual experience may differ from estimates. The liquidity analysis above does not include policyholder dividends payable of RMB112,593 million as at 31 December 2019 (as at 31 December 2018: RMB85,071 million). As at 31 December 2019, declared dividends of RMB77,512 million (as at 31 December 2018: RMB74,932 million) included in policyholder dividends payable have a maturity not later than one year. For the remaining policyholder dividends payable, the amount and timing of the undiscounted cash flows are indeterminate due to the uncertainty of future experiences including investment returns and are subject to future declarations by the Group. Although all investment contracts with DPF and investment contracts without DPF contain contractual options to surrender that can be exercised immediately by all policyholders at any time, the Group’s expected cash flows as shown in the above tables are based on past experience and future expectations. Should these contracts be surrendered immediately, it would cause a cash outflow of RMB61,178 million and RMB204,037 million, respectively for the year ended 31 December 2019 (2018: RMB58,669 million and RMB194,290 million, respectively), payable within one year. 4.2.4 Capital management The Group’s objectives for managing capital are to comply with the insurance capital requirements based on the minimum capital and actual capital required by the CBIRC, prevent risk in operation and safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns for equity holders and benefits for other stakeholders. The Group replenishes capital to improve the solvency ratio by issuing Core Tier 2 Capital Securities and bonds for capital replenishment according to the relevant laws and the approval of the relevant authorities. The Group is also subject to other local capital requirements, such as statutory deposits - restricted requirement, statutory insurance fund requirement, statutory reserve fund requirement and general reserve requirement discussed in detail in Note 10.4, Note 21 and Note 37, respectively. The Group manages capital to ensure its continuous and full compliance with the regulations mainly through monitoring its quarterly solvency ratios, as well as the solvency ratio based on annual stress testing. The table below summarises the core and comprehensive solvency ratio, core capital, actual capital and minimum capital of the Company under Insurance Institution Solvency Regulations (No.1 - No.17) As at 31 December 2019 As at 31 December 2018 Core capital 952,030 761,353 Actual capital 987,067 761,367 Minimum capital 356,953 303,872 Core solvency ratio 267% 251% Comprehensive solvency ratio 277% 251% According to the solvency ratios results mentioned above, and the unquantifiable evaluation results of operational risk, strategic risk, reputational risk and liquidity risk of insurance companies, the CBIRC evaluates the comprehensive solvency of insurance companies and supervises insurance companies by classifying them into four categories: (i) Category A: solvency ratios meet the requirements, and the operational risk, strategic risk, reputational risk and liquidity risk are very low; (ii) Category B: solvency ratios meet the requirements, and the operational risk, strategic risk, reputational risk and liquidity risk are low; (iii) Category C: solvency ratios do not meet the requirements or solvency ratios meet the requirements but one or several risks in operation, strategy, reputation and liquidity are high; (iv) Category D: solvency ratios do not meet the requirements or solvency ratios meet the requirements but one or several risks in operation, strategy, reputation and liquidity are severe. According to the Supervision Information System of the China Risk Oriented Solvency System, the latest Integrated Risk Rating result of the Company was Category A. 4.3 Disclosures about interest in unconsolidated structured entities The Group’s interest in unconsolidated structured entities are recorded as securities at fair value through profit or loss, available-for-sale These structured entities that the Group has interest in are guaranteed by third parties with higher credit ratings, or by pledging, or by having the fiscal budget income as the source of repayment, or by borrowers with higher credit ratings. The Group did not guarantee or provide any financing support for the structured entities that the Group had interest in or sponsored. (i) The unconsolidated structured entities that the Group has interest in The Group believes that the maximum exposure approximates the carrying amount of interest in these unconsolidated structured entities. The size of unconsolidated structured entities as well as the Group’s carrying amount of the assets recognised in the financial statements relating to its interest in unconsolidated structured entities and the Group’s maximum exposure are shown below: Unconsolidated structured entities As at 31 December 2019 Size Carrying amount of assets Maximum exposure Interest held by the Group Funds managed by affiliated entities 185,158 6,497 6,497 Investment income Funds managed by third parties Note 1 106,205 106,205 Investment income Trust schemes managed by affiliated entities 6,400 3,588 3,588 Investment income Trust schemes managed by third parties Note 1 71,707 71,707 Investment income Debt investment schemes managed by affiliated entities 34,025 14,832 14,832 Investment income Debt investment schemes managed by third parties Note 1 37,112 37,112 Investment income Others managed by affiliated entities Note 2 452,814 10,827 10,827 Investment income Others managed by third parties Note 2 Note 1 98,003 98,003 Investment income Unconsolidated structured entities As at 31 December 2018 Size Carrying Maximum Interest held by Funds managed by affiliated entities 120,797 629 629 Investment income Funds managed by third parties Note 1 104,678 104,678 Investment income Trust schemes managed by affiliated entities 3,800 2,680 2,680 Investment income Trust schemes managed by third parties Note 1 89,769 89,769 Investment income Debt investment schemes managed by affiliated entities 59,456 32,029 32,029 Investment income Debt investment schemes managed by third parties Note 1 33,330 33,330 Investment income Others managed by affiliated entities Note 2 422,006 9,502 9,502 Investment income Others managed by third parties Note 2 Note 1 110,035 110,035 Investment income Note 1: Funds, trust schemes, debt investment schemes and others managed by third parties were sponsored by third party financial institutions and the information related to size of these structured entities were not publicly available. Note 2: Others included wealth management products, special asset management schemes, and asset-backed plans, etc. (ii) The unconsolidated structured entities that the Group has sponsored but does not have interest in As at 31 December 2019, the size of the unconsolidated structured entities that the Group sponsored but had no interest was RMB600,223 million (as at 31 December 2018: RMB400,419 million), which were mainly funds, special asset management schemes, pension security products and pension products, etc., sponsored by the Group to generate management service fee income. In 2019, the management service fee from these structured entities was RMB1,749 million (2018: RMB1,338 million), which was recorded as other income. The Group did not transfer assets to these structured entities. 4.4 Fair value hierarchy Level 1 fair value is based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can obtain at the measurement date. Other than Level 1 quoted prices, Level 2 fair value is based on valuation techniques using significant inputs, that are observable for the asset being measured, either directly or indirectly, for substantially the full term of the asset through corroboration with observable market data. Observable inputs generally used to measure the fair value of securities classified as Level 2 include quoted market prices for similar assets in active markets; quoted market prices in markets that are not active for identical or similar assets and other market observable inputs. This level includes the debt securities for which quotations are available from pricing services providers. Fair values provided by pricing services providers are subject to a number of validation procedures by management. These procedures include a review of the valuation models utilised and the results of these models, as well as the recalculation of prices obtained from pricing services at the end of each reporting period. Under certain conditions, the Group may not receive a price quote from independent third-party pricing services. In this instance, the Group’s valuation team may choose to apply an internally developed valuation method to the assets or liabilities being measured, determine the main inputs for valuation, and analyse the change of the valuation and report it to management. Key inputs involved in internal valuation services are not based on observable market data. They reflect assumptions made by management based on judgements and experiences. The assets or liabilities valued by this method are generally classified as Level 3. As at 31 December 2019, assets classified as Level 1 accounted for approximately 35.11% of assets measured at fair value on a recurring basis. Fair value measurements classified as Level 1 include certain debt securities, equity securities that are traded in an active exchange market or interbank market and open-ended funds with public market price quotation. The Group considers a combination of certain factors to determine whether a market for a financial instrument is active, including the occurrence of trades within the specific period, the respective trading volume, and the degree which the implied yields for a debt security for observed transactions differs from the Group’s understanding of the current relevant market rates and information. Trading prices from the Chinese interbank market are determined by both trading counterparties and can be observed publicly. The Company adopted this price of the debt securities traded on the Chinese interbank market at the reporting date as their fair market value and classified the investments as Level 1. Open-ended funds also have active markets. Fund management companies publish the net asset value of these funds on their websites on each trade date. Investors subscribe for and redeem units of these funds in accordance with the funds’ net asset value published by the fund management companies on each trade date. The Company adopted the unadjusted net asset value of the funds at the reporting date as their fair market value and classified the investments as Level 1. As at 31 December 2019, assets classified as Level 2 accounted for approximately 44.98% of assets measured at fair value on a recurring basis. They primarily include certain debt |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Segment Information | 5 SEGMENT INFORMATION 5.1 Operating segments The Group operates in four operating segments: (i) Life insurance business (Life) Life insurance business relates primarily to the sale of life insurance policies, including those life insurance policies without significant insurance risk transferred. (ii) Health insurance business (Health) Health insurance business relates primarily to the sale of health insurance policies, including those health insurance policies without significant insurance risk transferred. (iii) Accident insurance business (Accident) Accident insurance business relates primarily to the sale of accident insurance policies. (iv) Other businesses (Others) Other businesses relate primarily to income and cost of the agency business in respect of transactions with CLIC, etc., as described in Note 34, net share of profit of associates and joint ventures, income and expenses of subsidiaries, and unallocated income and expenditure of the Group. 5.2 Allocation basis of income and expenses Investment income, net realised gains on financial assets, net fair value gains through profit or loss and foreign exchange gains/(losses) within other expenses are allocated among segments in proportion to the respective segments’ average liabilities of insurance contracts and investment contracts at the beginning and end of the year. Administrative expenses are allocated among segments in proportion to the unit cost of respective products in the different segments. Unallocated other income and other expenses are presented in the “Others” segment directly. Income tax is not allocated. 5.3 Allocation basis of assets and liabilities Financial assets, securities sold under agreements to repurchase and derivative financial liabilities are allocated among segments in proportion to the respective segments’ average liabilities of insurance contracts and investment contracts at the beginning and end of the year. Insurance and investment contract liabilities are presented under the respective segments. The remaining assets and liabilities are not allocated. For the year ended 31 December 2019 Life Health Accident Others Elimination Total RMB million Revenues Gross written premiums 446,562 105,581 14,943 — — 567,086 - Term life 2,584 — — — — - Whole life 61,612 — — — — - Endowment 113,950 — — — — - Annuity 268,416 — — — — Net premiums earned 445,719 99,575 14,984 — — 560,278 Investment income 129,334 7,849 443 2,293 — 139,919 Net realised gains on financial assets 1,646 100 6 79 — 1,831 Net fair value gains through profit or loss 16,947 1,027 58 1,219 — 19,251 Other income 1,110 60 — 8,698 (1,673 ) 8,195 Including: inter-segment revenue — — — 1,673 (1,673 ) — Segment revenues 594,756 108,611 15,491 12,289 (1,673 ) 729,474 Benefits, claims and expenses Insurance benefits and claims expenses Life insurance death and other benefits (124,194 ) (3,649 ) (34 ) — — (127,877 ) Accident and health claims and claim adjustment expenses — (44,613 ) (6,170 ) — — (50,783 ) Increase in insurance contract liabilities (303,479 ) (27,209 ) (119 ) — — (330,807 ) Investment contract benefits (8,810 ) (347 ) — — — (9,157 ) Policyholder dividends resulting from participation in profits (22,251 ) (124 ) — — — (22,375 ) Underwriting and policy acquisition costs (57,071 ) (16,554 ) (5,443 ) (2,328 ) — (81,396 ) Finance costs (3,288 ) (200 ) (12 ) (755 ) — (4,255 ) Administrative expenses (25,328 ) (9,075 ) (2,962 ) (2,910 ) — (40,275 ) Other expenses (7,120 ) (692 ) (169 ) (3,294 ) 1,673 (9,602 ) Including: inter-segment expenses (1,573 ) (95 ) (5 ) — 1,673 — Statutory insurance fund contribution (797 ) (273 ) (93 ) — — (1,163 ) Segment benefits, claims and expenses (552,338 ) (102,736 ) (15,002 ) (9,287 ) 1,673 (677,690 ) Net gains on investments of associates and joint ventures — — — 8,011 — 8,011 Including: share of profit of associates and joint ventures — — — 9,159 — 9,159 Segment results 42,418 5,875 489 11,013 — 59,795 Income tax (781 ) Net profit 59,014 Attributable to - Equity holders of the Company 58,287 - Non-controlling 727 Other comprehensive income attributable to equity holders of the Company 31,861 1,931 109 946 — 34,847 Depreciation and amortisation 2,671 917 312 479 — 4,379 As at 31 December 2019 Life Health Accident Others Elimination Total RMB million Assets Financial assets 3,111,140 183,142 10,080 76,907 — 3,381,269 Others 8,953 12,109 572 222,983 — 244,617 Segment assets 3,120,093 195,251 10,652 299,890 — 3,625,886 Unallocated Property, plant and equipment 51,758 Others 49,090 Total 3,726,734 Liabilities Insurance contracts 2,385,407 158,800 8,529 — — 2,552,736 Investment contracts 252,362 15,442 — — — 267,804 Securities sold under agreements to repurchase 106,377 6,447 365 4,899 — 118,088 Others 80,820 5,687 346 23,904 — 110,757 Segment liabilities 2,824,966 186,376 9,240 28,803 — 3,049,385 Unallocated Others 268,007 Total 3,317,392 For the year ended 31 December 2018 Life Health Accident Others Elimination Total RMB million Revenues Gross written premiums 437,540 83,614 14,672 — — 535,826 - Term life 3,145 — — — — - Whole life 46,375 — — — — - Endowment 126,318 — — — — - Annuity 261,702 — — — — Net premiums earned 436,863 80,279 14,881 — — 532,023 Investment income 116,721 6,393 441 1,612 — 125,167 Net realised gains on financial assets (18,439 ) (1,008 ) (70 ) (74 ) — (19,591 ) Net fair value gains through profit or loss (16,946 ) (927 ) (65 ) (340 ) — (18,278 ) Other income 1,088 84 — 8,505 (1,579 ) 8,098 Including: inter-segment revenue — — — 1,579 (1,579 ) — Segment revenues 519,287 84,821 15,187 9,703 (1,579 ) 627,419 Benefits, claims and expenses Insurance benefits and claims expenses Life insurance death and other benefits (245,786 ) (2,922 ) (28 ) — — (248,736 ) Accident and health claims and claim adjustment expenses — (33,801 ) (6,751 ) — — (40,552 ) Increase in insurance contract liabilities (167,090 ) (22,966 ) 125 — — (189,931 ) Investment contract benefits (9,020 ) (312 ) — — — (9,332 ) Policyholder dividends resulting from participation in profits (19,523 ) (123 ) — — — (19,646 ) Underwriting and policy acquisition costs (43,108 ) (11,806 ) (4,808 ) (2,983 ) — (62,705 ) Finance costs (3,304 ) (181 ) (12 ) (619 ) — (4,116 ) Administrative expenses (23,728 ) (7,881 ) (2,982 ) (2,895 ) — (37,486 ) Other expenses (5,339 ) (487 ) (140 ) (3,255 ) 1,579 (7,642 ) Including: inter-segment expenses (1,492 ) (82 ) (5 ) — 1,579 — Statutory insurance fund contribution (759 ) (242 ) (96 ) — — (1,097 ) Segment benefits, claims and expenses (517,657 ) (80,721 ) (14,692 ) (9,752 ) 1,579 (621,243 ) Net gains on investments of associates and joint ventures — — — 7,745 — 7,745 Including: share of profit of associates and joint ventures — — — 7,745 — 7,745 Segment results 1,630 4,100 495 7,696 — 13,921 Income tax (1,985 ) Net profit 11,936 Attributable to - Equity holders of the Company 11,395 - Non-controlling 541 Other comprehensive income attributable to equity holders of the Company (2,579 ) (141 ) (10 ) 660 — (2,070 ) Depreciation and amortisation 1,589 505 202 342 — 2,638 As at 31 December 2018 Life Health Accident Others Elimination Total RMB million Assets Financial assets 2,743,378 145,889 9,835 43,383 — 2,942,485 Others 9,696 8,975 610 201,661 — 220,942 Segment assets 2,753,074 154,864 10,445 245,044 — 3,163,427 Unallocated Property, plant and equipment 47,281 Others 43,695 Total 3,254,403 Liabilities Insurance contracts 2,081,822 125,743 8,466 — — 2,216,031 Investment contracts 240,152 15,282 — — — 255,434 Derivative financial liabilities 1,773 97 7 — — 1,877 Securities sold under agreements to repurchase 178,499 9,759 674 3,209 — 192,141 Others 46,328 3,607 211 22,830 — 72,976 Segment liabilities 2,548,574 154,488 9,358 26,039 — 2,738,459 Unallocated Others 192,654 Total 2,931,113 For the year ended 31 December 2017 Life Health Accident Others Elimination Total RMB million Revenues Gross written premiums 429,822 67,708 14,436 — — 511,966 - Term life 4,110 — — — — - Whole life 36,496 — — — — - Endowment 198,418 — — — — - Annuity 190,798 — — — — Net premiums earned 429,267 63,323 14,320 — — 506,910 Investment income 115,316 5,454 456 1,501 — 122,727 Net realised gains on financial assets 41 2 — (1 ) — 42 Net fair value gains through profit or loss 5,690 269 23 201 — 6,183 Other income 1,276 75 — 7,268 (1,126 ) 7,493 Including: inter-segment revenue — — — 1,126 (1,126 ) — Segment revenues 551,590 69,123 14,799 8,969 (1,126 ) 643,355 Benefits, claims and expenses Insurance benefits and claims expenses Life insurance death and other benefits (257,300 ) (2,383 ) (25 ) — — (259,708 ) Accident and health claims and claim adjustment expenses — (27,992 ) (5,826 ) — — (33,818 ) Increase in insurance contract liabilities (152,110 ) (20,249 ) (158 ) — — (172,517 ) Investment contract benefits (7,798 ) (278 ) — — — (8,076 ) Policyholder dividends resulting from participation in profits (21,748 ) (123 ) — — — (21,871 ) Underwriting and policy acquisition costs (48,781 ) (8,494 ) (4,565 ) (2,949 ) — (64,789 ) Finance costs (3,967 ) (187 ) (16 ) (431 ) — (4,601 ) Administrative expenses (24,286 ) (5,615 ) (3,423 ) (2,629 ) — (35,953 ) Other expenses (5,508 ) (376 ) (147 ) (1,521 ) 1,126 (6,426 ) Including: inter-segment expenses (1,071 ) (51 ) (4 ) — 1,126 — Statutory insurance fund contribution (777 ) (180 ) (111 ) — — (1,068 ) Segment benefits, claims and expenses (522,275 ) (65,877 ) (14,271 ) (7,530 ) 1,126 (608,827 ) Share of profit of associates and joint ventures, net — — — 7,143 — 7,143 Segment results 29,315 3,246 528 8,582 — 41,671 Income tax (8,919 ) Net profit 32,752 Attributable to - Equity holders of the Company 32,253 - Non-controlling interests 499 Other comprehensive income attributable to equity holder s of the Company (7,838 ) (370 ) (31 ) 327 — (7,912 ) Depreciation and amortisation 1,513 351 216 160 — 2,240 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
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Property, Plant and Equipment | 6 PROPERTY, PLANT AND EQUIPMENT Buildings Office equipment, furniture and fixtures Motor vehicles Assets under construction Leasehold improvements Total RMB million Cost As at 1 January 2019 37,262 7,658 1,340 16,902 2,191 65,353 Transfers upon completion 7,171 288 — (8,164 ) 532 (173 ) Additions 415 1,026 195 8,656 3 10,295 Transfers into investment properties — — — (2,977 ) — (2,977 ) Disposals (77 ) (604 ) (171 ) (39 ) (107 ) (998 ) As at 31 December 2019 44,771 8,368 1,364 14,378 2,619 71,500 Accumulated depreciation As at 1 January 2019 (10,414 ) (5,443 ) (813 ) — (1,377 ) (18,047 ) Charge for the year (1,397 ) (620 ) (190 ) — (283 ) (2,490 ) Other additions (48 ) — — — — (48 ) Disposals 48 579 162 — 79 868 As at 31 December 2019 (11,811 ) (5,484 ) (841 ) — (1,581 ) (19,717 ) Impairment As at 1 January 2019 (24 ) — — (1 ) — (25 ) Charge for the year — — — — — — Disposals — — — — — — As at 31 December 2019 (24 ) — — (1 ) — (25 ) Net book value As at 1 January 2019 26,824 2,215 527 16,901 814 47,281 As at 31 December 2019 32,936 2,884 523 14,377 1,038 51,758 Buildings Office equipment, furniture and fixtures Motor vehicles Assets under construction Leasehold improvements Total RMB million Cost As at 1 January 2018 32,457 6,873 1,403 16,696 1,830 59,259 Transfers upon completion 4,889 123 — (5,500 ) 393 (95 ) Additions 85 932 282 11,416 54 12,769 Transfers into investment properties — — — (5,634 ) — (5,634 ) Disposals (169 ) (270 ) (345 ) (76 ) (86 ) (946 ) As at 31 December 2018 37,262 7,658 1,340 16,902 2,191 65,353 Accumulated depreciation As at 1 January 2018 (9,248 ) (5,122 ) (955 ) — (1,203 ) (16,528 ) Charge for the year (1,196 ) (578 ) (151 ) — (212 ) (2,137 ) Disposals 30 257 293 — 38 618 As at 31 December 2018 (10,414 ) (5,443 ) (813 ) — (1,377 ) (18,047 ) Impairment As at 1 January 2018 (24 ) — — — — (24 ) Charge for the year — — — (1 ) — (1 ) Disposals — — — — — — As at 31 December 2018 (24 ) — — (1 ) — (25 ) Net book value As at 1 January 2018 23,185 1,751 448 16,696 627 42,707 As at 31 December 2018 26,824 2,215 527 16,901 814 47,281 As at 31 December 2019, the net book value of buildings above which were in process to obtain title certificates was RMB8,852 million (as at 31 December 2018: RMB6,798 million). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
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Leases | 7 LEASES (a) Right-of-use Buildings Others Total RMB million Cost As at 1 January 2019 2,554 1 2,555 Additions 2,262 1 2,263 Deductions (130 ) — (130 ) As at 31 December 2019 4,686 2 4,688 Accumulated depreciation As at 1 January 2019 — — — Charge for the year (1,196 ) (1 ) (1,197 ) Deductions 29 — 29 As at 31 December 2019 (1,167 ) (1 ) (1,168 ) Impairment As at 1 January 2019 — — — Charge for the year — — — Deductions — — — As at 31 December 2019 — — — Net book value As at 1 January 2019 2,554 1 2,555 As at 31 December 2019 3,519 1 3,520 The Group had no significant profit or loss from subleasing right-of-use The Group’s right-of-use (b) The amounts recognised in profit or loss in relation to leases are as follows: 31 December 2019 RMB million Interest on lease liabilities 106 Depreciation charge of right-of-use 1,197 Expense relating to short-term leases 440 Expense relating to leases of low-value (except for short-term lease liabilities) 3 Total 1,746 |
Investment Properties
Investment Properties | 12 Months Ended |
Dec. 31, 2019 | |
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Investment Properties | 8 INVESTMENT PROPERTIES Buildings Cost As at 1 January 2019 10,227 Additions 3,022 Deductions (351 ) As at 31 December 2019 12,898 Accumulated depreciation As at 1 January 2019 (480 ) Additions (325 ) Deductions 48 As at 31 December 2019 (757 ) Net book value As at 1 January 2019 9,747 As at 31 December 2019 12,141 Fair value As at 1 January 2019 12,449 As at 31 December 2019 14,870 Buildings Cost As at 1 January 2018 3,366 Additions 6,875 Deductions (14 ) As at 31 December 2018 10,227 Accumulated depreciation As at 1 January 2018 (302 ) Additions (186 ) Deductions 8 As at 31 December 2018 (480 ) Net book value As at 1 January 2018 3,064 As at 31 December 2018 9,747 Fair value As at 1 January 2018 4,629 As at 31 December 2018 12,449 The Company leases part of its investment properties to its subsidiaries and charges rentals based on the areas occupied by the respective entities. These properties are categorised as property, plant and equipment of the Group in the consolidated statement of financial position. The Group has no restrictions on the use of its investment properties and no contractual obligations to each investment property purchased, constructed or developed or for repairs, maintenance and enhancements. As at 31 December 2019, the net book value of investment properties which were in process to obtain title certificates was RMB5,809 million (as at 31 December 2018: RMB3,407million). The fair value of investment properties of the Group as at 31 December 2019 amounted to RMB14,870 million (as at 31 December 2018: RMB12,449 million), which was estimated by the Group having regards to valuations performed by independent appraisers. The investment properties were classified as Level 3 in the fair value hierarchy. The Group uses the market comparison approach as its primary method to estimate the fair value of its investment properties. Under the market comparison approach, the estimated fair value of a property is based on the average sale price of comparable properties recently sold, with consideration of the comprehensive adjustment coefficient, which is composed of a number of adjusting factors, including the time and the conditions of sale, the geographical location, age, decoration, floor area, lot size of the property and other factors. Under the market comparison approach, an increase (decrease) in the comprehensive adjustment coefficient will result in an increase (decrease) in the fair value of investment properties. |
Investments in Associates and J
Investments in Associates and Joint Ventures | 12 Months Ended |
Dec. 31, 2019 | |
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Investments in Associates and Joint Ventures | 9 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES 2019 2018 As at 31 December 2018/ 31 December 2017 201,661 161,472 Adjustment (i) (2,889 ) — As at 1 January 198,772 161,472 Change of the cost 18,590 34,229 Share of profit or loss 9,159 7,745 Declared dividends (3,227 ) (2,903 ) Other equity movements 1,189 1,118 Impairment (1,500 ) — As at 31 December 222,983 201,661 Movement Accounting Cost As at 31 December Adjustment (i) As at 1 January 2019 Change of the cost Share of profit Declared dividends Other movements Provision of impairment As at Percentage of equity Accumulated amount of impairment Associates China Guangfa Bank Co., Ltd. (“CGB”) (ii) Equity Method 45,176 72,655 (2,841 ) 69,814 — 5,374 (284 ) 276 — 75,180 43.686% — Sino-Ocean Group Holding Limited (“Sino-Ocean”) (iii) Equity Method 11,245 12,812 — 12,812 — 545 (369 ) (101 ) (1,500 ) 11,387 29.59% (2,510 ) China Life Property & Casualty Insurance Company Limited (“CLP&C”) Equity Method 6,000 7,963 — 7,963 — 849 — 520 — 9,332 40.00% — COFCO Futures Company Limited (“COFCO Futures”) Equity Method 1,339 1,501 — 1,501 — 49 — — — 1,550 35.00% — Sinopec Sichuan to East China Gas Pipeline Co., Ltd. (“Pipeline Company”) Equity Method 20,000 21,387 — 21,387 — 1,146 (1,104 ) 4 — 21,433 43.86% — China United Network Communications Limited (“China Unicom”) (iv) Equity Method 21,829 21,892 (48 ) 21,844 — 453 (170 ) (59 ) — 22,068 10.29% — Others (v) Equity Method 29,231 23,524 — 23,524 5,566 725 (460 ) 400 — 29,755 — Subtotal 134,820 161,734 (2,889 ) 158,845 5,566 9,141 (2,387 ) 1,040 (1,500 ) 170,705 (2,510 ) Joint ventures Joy City Commercial Property Fund L.P. (“Joy City”) Equity Method 6,281 5,787 — 5,787 — 224 (162 ) — — 5,849 66.67% — Mapleleaf Century Limited (“MCL”) Equity Method 7,656 5,741 — 5,741 17 (596 ) — (22 ) — 5,140 75.00% — Others (v) Equity Method 41,921 28,399 — 28,399 13,007 390 (678 ) 171 — 41,289 — Subtotal 55,858 39,927 — 39,927 13,024 18 (840 ) 149 — 52,278 — Total 190,678 201,661 (2,889 ) 198,772 18,590 9,159 (3,227 ) 1,189 (1,500 ) 222,983 (2,510 ) (i) On 1 January 2019, CGB began to adopt IFRS 9. The cumulative effect of initial adoption of IFRS 9 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. As at 1 January 2019, The Group’s retained earnings were decreased by RMB2,857 million and reserves were increased by RMB16 million. The Group’s equity as at 1 January 2019 was decreased by RMB2,841 million in total. On 1 January 2019, China Unicom began to adopt IFRS 16. The cumulative effect of initial adoption of IFRS 16 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. The Group’s retained earnings as at 1 January 2019 were decreased by RMB48 million. (ii) The 2018 final dividend of RMB0.033 in cash per ordinary share was approved and declared in the Annual General Meeting of CGB on 16 August 2019. The Company received a cash dividend of RMB284 million. (iii) The 2018 final dividend of HKD0.073 in cash per ordinary share was approved and declared in the Annual General Meeting of Sino-Ocean on 16 May 2019. The Company received a cash dividend equivalent to RMB145 million. The 2019 interim dividend of HKD0.110 in cash per ordinary share was approved and declared by the board of directors of Sino-Ocean on 21 August 2019. The Company received a cash dividend equivalent to RMB224 million. Sino-Ocean, the Group’s associate is listed in Hong Kong. On 31 December 2019, the stock price of Sino-Ocean was HKD3.13 per share. As at 31 December 2018, the cumulative impairment loss of RMB1.01 billion for the investment in Sino-Ocean had been recognised by the Group. The Group performed an impairment test to this investment on 31 December 2019. An impairment loss of RMB1.50 billion was recognised for this investment valued using the discounted future cash flow method for the year ended 31 December 2019. In the valuation, the Group separated the development property and investment property by considering the different future cash flow features. The discount rates applied in the valuation were 10% and 8% for development property and investment property, respectively. (iv) The 2018 final dividend of RMB0.0533 in cash per ordinary share was approved and declared in the Annual General Meeting of China Unicom on 8 May 2019. The Company received a cash dividend of RMB170 million. As at 31 December 2019, China Unicom’s share price is RMB5.89 per share. (v) The Group invested in real estate, industrial logistics assets and other industries through these enterprises. (vi) Except for the non-publicly issued stock of China Unicom having a 36-month period restricted for sale, there is no significant restriction for the Group to dispose of its other associates and joint ventures. As at 31 December 2019, the major associates and joint ventures of the Group are as follows: Name Place of incorporation Percentage of equity interest held Associates CGB PRC 43.686% Sino-Ocean Hong Kong, PRC 29.59% CLP&C PRC 40.00% COFCO Futures PRC 35.00% Pipeline Company PRC 43.86% China Unicom PRC 10.29% Joint ventures Joy City The British Cayman Islands 66.67% MCL The British Virgin Islands 75.00% As at 31 December 2018, the major associates and joint ventures of the Group are as follows: Name Place of incorporation Percentage of equity interest held Associates CGB PRC 43.686% Sino-Ocean Hong Kong, PRC 29.59% CLP&C PRC 40.00% COFCO Futures PRC 35.00% Pipeline Company PRC 43.86% China Unicom PRC 10.29% Joint ventures Joy City The British Cayman Islands 66.67% MCL The British Virgin Islands 75.00% The following table illustrates the financial information of the Group’s major associates and joint ventures as at 31 December 2019 and for the year ended 31 December 2019: CGB Sino-Ocean CLP&C COFCO Futures Pipeline Company China Unicom Joy City MCL Total assets 2,632,798 243,700 91,167 12,671 36,327 564,231 10,281 24,381 Total liabilities 2,423,234 178,088 67,837 9,792 777 240,735 168 13,620 Total equity 209,564 65,612 23,330 2,879 35,550 323,496 10,113 10,761 Total equity attributable to equity holders of the associates and joint ventures 164,573 49,909 23,330 2,872 35,550 143,327 10,113 10,761 Total adjustments (i) 412 (6,209 ) — — 449 17,454 (1,339 ) (3,908 ) Total equity attributable to equity holders of the associates and joint ventures after adjustments 164,985 43,700 23,330 2,872 35,999 160,781 8,774 6,853 Proportion of the Group’s ownership 43.686% 29.59% 40.00% 35.00% 43.86% 10.29% 66.67% 75.00% Gross carrying value of the investments 75,180 13,897 9,332 1,550 21,433 22,068 5,849 5,140 Impairment — (2,510 ) — — — — — — Net carrying value of the investments 75,180 11,387 9,332 1,550 21,433 22,068 5,849 5,140 Total revenues 76,312 56,704 69,498 793 5,008 291,435 306 795 Net profit/(loss) 12,581 4,166 2,123 153 2,635 11,264 287 348 Other comprehensive income 643 152 1,310 1 — (501 ) — — Total comprehensive income 13,224 4,318 3,433 154 2,635 10,763 287 348 The following table illustrates the financial information of the Group’s major associates and joint ventures as at 31 December 2018 and for the year ended 31 December 2018: CGB Sino-Ocean CLP&C COFCO Futures Pipeline Company China Unicom Joy City MCL Total assets 2,373,291 249,362 83,561 8,986 36,467 541,762 10,243 22,266 Total liabilities 2,214,781 186,224 63,654 6,246 1,043 224,822 265 11,897 Total equity 158,510 63,138 19,907 2,740 35,424 316,940 9,978 10,369 Total equity attributable to equity holders of the associates and joint ventures 158,510 48,385 19,907 2,732 35,424 140,144 9,978 10,369 Total adjustments (i) 933 (4,938 ) — — 470 17,926 (1,297 ) (2,714 ) Total equity attributable to equity holders of the associates and joint ventures after adjustments 159,443 43,447 19,907 2,732 35,894 158,070 8,681 7,655 Proportion of the Group’s ownership 43.686% 29.59% 40.00% 35.00% 43.86% 10.29% 66.67% 75.00% Gross carrying value of the investments 72,655 13,822 7,963 1,501 21,387 21,892 5,787 5,741 Impairment — (1,010 ) — — — — — — Net carrying value of the investments 72,655 12,812 7,963 1,501 21,387 21,892 5,787 5,741 Total revenues 59,279 48,821 65,564 643 4,746 290,877 457 458 Net profit/(loss) 10,707 4,666 121 98 2,545 9,301 438 609 Other comprehensive income 4,160 (1,518 ) (503 ) 1 — (245 ) — — Total comprehensive income 14,867 3,148 (382 ) 99 2,545 9,056 438 609 (i) Including adjustments for the difference of accounting policies, fair value and others. The Group had no contingent liabilities with the associates and joint ventures as at 31 December 2019 and 31 December 2018. The Group had a capital contribution commitment of RMB24,430 million with joint ventures as at 31 December 2019 (as at 31 December 2018: RMB20,768 million). The capital contribution commitment amount has been included in the capital commitments in Note 40. |
Financial Assets
Financial Assets | 12 Months Ended |
Dec. 31, 2019 | |
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Financial Assets | 10 FINANCIAL ASSETS 10.1 Held-to-maturity As at 31 As at 31 Debt securities Government bonds 215,928 179,943 Government agency bonds 401,799 266,986 Corporate bonds 198,322 212,709 Subordinated bonds/debts 112,702 147,079 Total 928,751 806,717 Debt securities Listed in Mainland, PRC 209,123 109,597 Listed in Hong Kong, PRC 157 130 Listed overseas 62 20 Unlisted (i) 719,409 696,970 Total 928,751 806,717 (i) Unlisted debt securities include those traded on the Chinese interbank market. As at 31 December 2019, an accumulated impairment loss of RMB17 million (2018: RMB42 million) for the investment of held-to-maturity As at 31 As at 31 Debt securities - fair value hierarchy Level 1 Level 2 Total Level 1 Level 2 Total Government bonds 15,749 212,449 228,198 15,387 175,622 191,009 Government agency bonds 57,955 357,058 415,013 72,455 204,029 276,484 Corporate bonds 7,914 198,879 206,793 10,965 209,302 220,267 Subordinated bonds/debts — 118,571 118,571 — 155,783 155,783 Total 81,618 886,957 968,575 98,807 744,736 843,543 Debt securities - Contractual maturity schedule As at 31 December 2019 As at 31 Maturing: Within one year 24,454 16,907 After one year but within five years 128,266 137,840 After five years but within ten years 241,372 279,086 After ten years 534,659 372,884 Total 928,751 806,717 10.2 Loans As at 31 As at 31 Policy loans (i) 174,872 142,165 Other loans 436,766 308,086 Total 611,638 450,251 Impairment (2,718 ) — Net value 608,920 450,251 As at 31 As at 31 Maturing: Within one year 213,937 167,498 After one year but within five years 229,415 138,939 After five years but within ten years 129,596 99,501 After ten years 38,690 44,313 Total 611,638 450,251 Impairment (2,718 ) — Net value 608,920 450,251 (i) As at 31 December 2019, maturities of policy loans were within 6 months (as at 31 December 2018: same). 10.3 Term deposits As at 31 As at 31 Maturing: Within one year 107,039 158,920 After one year but within five years 420,191 323,021 After five years but within ten years 8,030 77,400 Total 535,260 559,341 As at 31 December 2019, the Group’s term deposits of RMB3,491 million (as at 31 December 2018: RMB16,691 million) were deposited in banks to back overseas borrowings and are restricted to use. In September 2016, CL Hotel Investor, L.P. and Glorious Fortune Forever Limited, subsidiaries of the Company, entered into a loan agreement with the New York and Seoul branches of Agricultural Bank of China, respectively. In December 2016, Sunny Bamboo Limited and Golden Bamboo Limited, subsidiaries of the Company, entered into a loan agreement with the Hong Kong branch of Agricultural Bank of China. The Company arranged deposits with Beijing Xicheng branch of Agricultural Bank of China to back these loans. As at 31 December 2019, the amounts of such term deposits were RMB361 million, RMB380 million and RMB750 million, respectively (as at 31 December 2018: RMB6,861 million, RMB7,080 million and RMB750 million). On 6 December 2017, New Fortune Wisdom Limited and New Capital Wisdom Limited, subsidiaries of Ningbo Meishan Bonded Port Area Guo Yang Guo Sheng Investment Partnership (Limited Partnership) (“Guo Yang Guo Sheng”), a subsidiary of the Company, entered into a loan agreement with a subsidiary of Agricultural Bank of China. Guo Yang Guo Sheng arranged deposits with Beijing Xicheng branch of the Agricultural Bank of China to back these loans. As at 31 December 2019, the amounts of such term deposits and current deposits were RMB2,000 million (as at 31 December 2018: same) and RMB1,069 million (as at 31 December 2018: RMB1,274 million), respectively. 10.4 Statutory deposits - restricted As at 31 As at 31 Contractual maturity schedule: Within one year 180 500 After one year but within five years 6,153 5,833 Total 6,333 6,333 Insurance companies in China are required to deposit an amount that equals 20% of their registered capital with banks in compliance with regulations of the CBIRC. These funds may not be used for any purpose other than for paying off debts during liquidation proceedings. 10.5 Available-for-sale As at 31 As at 31 Available-for-sale Debt securities Government bonds 23,758 28,440 Government agency bonds 171,189 180,273 Corporate bonds 148,455 185,720 Subordinated bonds/debts 53,922 21,514 Others (i) 112,467 80,643 Subtotal 509,791 496,590 Equity securities Funds 102,349 92,304 Common stocks 236,323 143,469 Preferred stocks 58,314 32,707 Wealth management products 32,640 31,348 Others (i) 98,904 53,479 Subtotal 528,530 353,307 Available-for-sale Equity securities Others (i) 20,636 20,636 Total 1,058,957 870,533 (i) Other available-for-sale As at 31 As at 31 Debt securities Listed in Mainland, PRC 46,505 53,933 Unlisted 463,286 442,657 Subtotal 509,791 496,590 Equity securities Listed in Mainland, PRC 152,293 102,190 Listed in Hong Kong, PRC 95,428 55,066 Listed overseas 1,458 162 Unlisted 299,987 216,525 Subtotal 549,166 373,943 Total 1,058,957 870,533 Unlisted debt securities include those traded on the Chinese interbank market and those not publicly traded. Unlisted equity securities include those not traded on stock exchanges, which are mainly open-ended funds with public market price quotation, wealth management products and private equity funds. Debt securities - Contractual maturity schedule As at 31 As at 31 Maturing: Within one year 26,075 11,511 After one year but within five years 155,110 170,606 After five years but within ten years 226,421 214,826 After ten years 102,185 99,647 Total 509,791 496,590 10.6 Securities at fair value through profit or loss As at 31 As at 31 Debt securities Government bonds 41 118 Government agency bonds 6,859 6,760 Corporate bonds 77,215 79,774 Others 1,091 1,351 Subtotal 85,206 88,003 Equity securities Funds 16,101 13,967 Common stocks 40,281 35,241 Wealth management products — 1,506 Others 20 — Subtotal 56,402 50,714 Total 141,608 138,717 Debt securities Listed in Mainland, PRC 35,804 39,145 Listed in Hong Kong, PRC 102 108 Listed overseas 167 202 Unlisted 49,133 48,548 Subtotal 85,206 88,003 Equity securities Listed in Mainland, PRC 39,770 31,962 Listed in Hong Kong, PRC 611 97 Listed overseas 6,418 6,552 Unlisted 9,603 12,103 Subtotal 56,402 50,714 Total 141,608 138,717 Unlisted debt securities include those traded on the Chinese interbank market and those not publicly traded. Unlisted equity securities include those not traded on stock exchanges, which are mainly open-ended funds with public market price quotation. 10.7 Derivative financial instruments As at 31 December 2019 As at 31 Derivative financial assets Forward contract 428 — Derivative financial Liabilities Forward contract — 1,877 Note: The derivative financial instruments of the Company above are all forward contracts to purchase equity securities. The fair value is based on active quoted price of the equity security with consideration of discounts for lack of marketability, which is classified as Level 3. 10.8 Securities purchased under agreements to resell As at 31 As at 31 Maturing: Within 30 days 4,467 9,905 Total 4,467 9,905 10.9 Accrued investment income As at 31 As at 31 Bank deposits 12,310 19,805 Debt securities 25,048 23,486 Others 4,345 5,111 Total 41,703 48,402 Current 40,710 47,834 Non-current 993 568 Total 41,703 48,402 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
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Fair Value of Financial Assets and Liabilities | 11 FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The table below presents the carrying value and estimated fair value of major financial assets and liabilities, and investment contracts: Carrying value Estimated fair value (i) As at 31 As at 31 As at 31 As at 31 Held-to-maturity 928,751 806,717 968,575 843,543 Loans (iii) 608,920 450,251 623,840 458,669 Term deposits 535,260 559,341 535,260 559,341 Statutory deposits - restricted 6,333 6,333 6,333 6,333 Available-for-sale 1,038,321 849,897 1,038,321 849,897 Securities at fair value through profit or loss 141,608 138,717 141,608 138,717 Derivative financial assets 428 — 428 — Securities purchased under agreements to resell 4,467 9,905 4,467 9,905 Cash and cash equivalents 53,306 50,809 53,306 50,809 Investment contracts (iii) (267,804 ) (255,434 ) (260,592 ) (245,803 ) Financial liabilities at fair value through profit or loss (3,859 ) (2,680 ) (3,859 ) (2,680 ) Derivative financial liabilities — (1,877 ) — (1,877 ) Securities sold under agreements to repurchase (118,088 ) (192,141 ) (118,088 ) (192,141 ) Bonds payable (34,990 ) — (35,551 ) — Interest-bearing loans and borrowings (20,045 ) (20,150 ) (20,045 ) (20,150 ) (i) The estimates and judgements to determine the fair value of financial assets are described in Note 3.2. (ii) The fair value of held-to-maturity (iii) Investment contracts at fair value through profit or loss have quoted prices in active markets, and therefore, their fair value was classified as Level 1. The fair value of policy loans approximated its carrying value. The fair values of other loans and investment contracts at amortised cost were determined using valuation techniques, with consideration of the present value of expected cash flows arising from contracts using a risk-adjusted discount rate, allowing for the risk-free rate available on the valuation date, credit risk and risk margin associated with the future cash flows. The fair values of other loans and investment contracts at amortised cost were classified as Level 3. |
Premiums Receivable
Premiums Receivable | 12 Months Ended |
Dec. 31, 2019 | |
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Premiums Receivable | 12 PREMIUMS RECEIVABLE As at 31 December 2019, the carrying value of premiums receivable within one year was RMB17,205 million (as at 31 December 2018: RMB15,607 million). |
Reinsurance Assets
Reinsurance Assets | 12 Months Ended |
Dec. 31, 2019 | |
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Reinsurance Assets | 13 REINSURANCE ASSETS As at 31 As at 31 Long-term insurance contracts ceded (Note 15) 3,839 3,123 Due from reinsurance companies 808 731 Ceded unearned premiums (Note 15) 369 370 Claims recoverable from reinsurers (Note 15) 145 140 Total 5,161 4,364 Current 1,318 1,241 Non-current 3,843 3,123 Total 5,161 4,364 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
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Other Assets | 14 OTHER ASSETS As at 31 As at 31 Land use rights (i) 7,830 7,906 Disbursements 5,946 4,162 Tax prepaid 5,615 — Automated policy loans 3,377 3,269 Investments receivable and prepaid 2,665 8,885 Prepayments to constructors 847 504 Due from related parties 757 725 Others 6,992 7,986 Total 34,029 33,437 Current 24,175 23,533 Non-current 9,854 9,904 Total 34,029 33,437 (i) The Group’s right-of-use right-of-use |
Insurance Contracts
Insurance Contracts | 12 Months Ended |
Dec. 31, 2019 | |
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Insurance Contracts | 15 INSURANCE CONTRACTS (a) Process used to decide on assumptions (i) For the insurance contracts of which future insurance benefits are affected by investment yields of the corresponding investment portfolios, the discount rate assumption is based on expected investment returns of the asset portfolio backing these liabilities, considering the impacts of time value on reserves. In developing discount rate assumptions, the Group considers investment experience, the current investment portfolio and trend of the relevant yield curves. The assumed discount rates reflect the future economic outlook as well as the Group’s investment strategy. The assumed discount rates with risk margin are as follows: Discount rate assumptions As at 31 December 2019 4.85% As at 31 December 2018 4.85% For the insurance contracts of which future insurance benefits are not affected by investment yields of the corresponding investment portfolios, the discount rate assumption is based on the “Yield curve of reserve computation benchmark for insurance contracts”, published on the “China Bond” website with consideration of liquidity spreads, taxation and other relevant factors. The assumed spot discount rates with risk margin for the past two years are as follows: Discount rate assumptions As at 31 December 2019 3.52%~4.83% As at 31 December 2018 3.47%~4.86% There is uncertainty on the discount rate assumption, which is affected by factors such as future macro-economy, monetary and foreign exchange policies, capital market and availability of investment channels of insurance funds. The Group determines the discount rate assumption based on the information obtained at the end of each reporting period including consideration of risk margin. (ii) The mortality and morbidity assumptions are based on the Group’s historical mortality and morbidity experience. The assumed mortality rates and morbidity rates vary with the age of the insured and contract type. The Group bases its mortality assumptions on China Life Insurance Mortality Table (2000-2003), adjusted where appropriate to reflect the Group’s recent historical mortality experience. The main source of uncertainty with life insurance contracts is that epidemics and wide-ranging lifestyle changes could result in deterioration in future mortality experience, thus leading to an inadequate reserving of liability. Similarly, improvements in longevity due to continuing advancements in medical care and social conditions may expose the Group to longevity risk. The Group bases its morbidity assumptions for critical illness products on analysis of historical experience and expectations of future developments. There are two main sources of uncertainty. Firstly, wide-ranging lifestyle changes could result in future deterioration in morbidity experience. Secondly, future development of medical technologies and improved coverage of medical facilities available to policyholders may bring forward the timing of diagnosing critical illness, which demands earlier payment of the critical illness benefits. Both could ultimately result in an inadequate reserving of liability if current morbidity assumptions do not properly reflect such trends. Risk margin is considered in the Group’s mortality and morbidity assumptions. (iii) Expense assumptions are based on expected unit costs with the consideration of previous expense studies and future trends. Expense assumptions are affected by certain factors such as future inflation and market competition which bring uncertainty to these assumptions. The Group determines expense assumptions based on information obtained at the end of each reporting period and risk margin. Components of expense assumptions include the cost per policy and percentage of premium as follows: Individual Life Group Life RMB Per Policy % of Premium RMB Per Policy % of Premium As at 31 December 2019 45.00 0.85%~0.90% 25.00 0.90% As at 31 December 2018 45.00 0.85%~0.90% 25.00 0.90% (iv) The lapse rates and other assumptions are affected by certain factors, such as future macro-economy, availability of financial substitutions, and market competition, which bring uncertainty to these assumptions. The lapse rates and other assumptions are determined with reference to creditable past experience, current conditions, future expectations and other information. (v) The Group applied a consistent method to determine risk margin. The Group considers risk margin for discount rate, mortality and morbidity and expense assumptions to compensate for the uncertain amount and timing of future cash flows. When determining risk margin, the Group considers historical experience, future expectations and other factors. The Group determines the risk margin level by itself as the regulations have not imposed any specific requirement on it. The Group adopted a consistent process to decide on assumptions for the insurance contracts disclosed in this note. On each reporting date, the Group reviews the assumptions for reasonable estimates of liability and risk margin, with consideration of all available information, and taking into account the Group’s historical experience and expectation of future events. (b) Net liabilities of insurance contracts As at 31 As at 31 Gross Long-term insurance contracts 2,521,331 2,189,794 Short-term insurance contracts - Claims and claim adjustment expenses 18,404 14,805 - Unearned premiums 13,001 11,432 Total, gross 2,552,736 2,216,031 Recoverable from reinsurers Long-term insurance contracts (Note 13) (3,839 ) (3,123 ) Short-term insurance contracts - Claims and claim adjustment expenses (Note 13) (145 ) (140 ) - Unearned premiums (Note 13) (369 ) (370 ) Total, ceded (4,353 ) (3,633 ) Net Long-term insurance contracts 2,517,492 2,186,671 Short-term insurance contracts - Claims and claim adjustment expenses 18,259 14,665 - Unearned premiums 12,632 11,062 Total, net 2,548,383 2,212,398 (c) Movements in liabilities of short-term insurance contracts The table below presents movements in claims and claim adjustment expense reserve: 2019 2018 Notified claims 2,536 2,672 Incurred but not reported 12,269 11,106 Total as at 1 January - Gross 14,805 13,778 Cash paid for claims settled - Cash paid for current year claims (33,244 ) (27,165 ) - Cash paid for prior year claims (14,551 ) (12,876 ) Claims incurred - Claims arising in current year 49,727 40,601 - Claims arising in prior years 1,667 467 Total as at 31 December - Gross 18,404 14,805 Notified claims 2,781 2,536 Incurred but not reported 15,623 12,269 Total as at 31 December - Gross 18,404 14,805 The table below presents movements in unearned premium reserves: Gross 2019 Net Gross 2018 Net As at 1 January 11,432 (370 ) 11,062 12,289 (527 ) 11,762 Increase 13,001 (369 ) 12,632 11,432 (370 ) 11,062 Release (11,432 ) 370 (11,062 ) (12,289 ) 527 (11,762 ) As at 31 December 13,001 (369 ) 12,632 11,432 (370 ) 11,062 (d) Movements in liabilities of long-term insurance contracts The table below presents movements in the liabilities of long-term insurance contracts: 2019 2018 As at 1 January 2,189,794 1,999,066 Premiums 497,570 480,496 Release of liabilities (i) (282,189 ) (385,761 ) Accretion of interest 114,234 99,618 Change in assumptions - Change in discount rates (4,906 ) (6,020 ) - Change in other assumptions (ii) 7,308 2,946 Other movements (480 ) (551 ) As at 31 December 2,521,331 2,189,794 (i) The release of liabilities mainly consists of release due to death or other benefits and related expenses, release of residual margin and change of reserves for claims and claim adjustment expenses. (ii) For the year ended 31 December 2019, the change in other assumptions was mainly caused by the change in morbidity rate assumptions of certain products, which increased insurance contract liabilities by RMB4,737 million. This change reflected the Group’s most recent experience and future expectations about the morbidity rates as at the reporting date. Changes in assumptions other than morbidity rates increased insurance contract liabilities by RMB2,571 million. For the year ended 31 December 2018, the change in other assumptions was mainly caused by the change in morbidity rate assumptions of certain products, which increased insurance contract liabilities by RMB3,877 million. This change reflected the Group’s most recent experience and future expectations about the morbidity rates as at the reporting date. Changes in assumptions other than morbidity rates decreased insurance contract liabilities by RMB931 million. |
Investment Contracts
Investment Contracts | 12 Months Ended |
Dec. 31, 2019 | |
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Investment Contracts | 16 INVESTMENT CONTRACTS As at 31 As at 31 Investment contracts with DPF at amortised cost 61,657 59,129 Investment contracts without DPF - At amortised cost 206,137 196,296 - At fair value through profit or loss 10 9 Total 267,804 255,434 The table below presents movements of investment contracts with DPF: 2019 2018 As at 1 January 59,129 57,153 Deposits received 4,238 4,096 Deposits withdrawn, payments on death and other benefits (2,959 ) (3,318 ) Policy fees deducted from account balances (38 ) (38 ) Interest credited 1,287 1,236 As at 31 December 61,657 59,129 |
Interest-Bearing Loans and Borr
Interest-Bearing Loans and Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Interest-Bearing Loans and Borrowings | 17 INTEREST-BEARING LOANS AND BORROWINGS Maturity date Interest rate As at 31 December 2019 RMB million As at 31 Guaranteed loans 11 January 2019 1.50% — 993 Guaranteed loans 17 June 2019 3.54% — 2,385 Guaranteed loans 27 September 2019 2.30% — 6,657 Guaranteed loans 30 September 2019 2.40% — 6,451 Guaranteed loans 11 January 2020 1.50% 989 — Credit loans 6 November 2020 LIBOR+2.70%(i) 126 — Guaranteed loans 6 December 2020 EURIBOR +3.80%(ii) 3,126 3,139 Credit loans 18 January 2021 2.50% 523 525 Credit loans 25 June 2024 3.08% 2,515 — Credit loans 16 September 2024 3.30% 5,999 — Credit loans 27 September 2024 USD LIBOR+1.00% 6,767 — Total 20,045 20,150 (i) 2.70% when LIBOR is negative. (ii) 3.80% when EURIBOR is negative. |
Bonds Payable
Bonds Payable | 12 Months Ended |
Dec. 31, 2019 | |
Text Block 1 [Abstract] | |
Bonds Payable | 18 BONDS PAYABLE As at 31 December 2019, all bonds payable were the bonds for capital replenishment (the “Bond”) with a total carrying value of RMB34,990 million (as at 31 December 2018: nil), and the fair value of RMB35,551 million (as at 31 December 2018: nil). The fair value of the Bond was classified as level 2 in the fair value hierarchy. The following table presents the par value of the bonds payable: Issue date Maturity date Interest rate p.a. As at 31 RMB million As at 31 22 March 2019 22 March 2029 4.28% 35,000 — Total 35,000 — The fair value of bonds payable is based on the valuation results of China Central Depository & Clearing Co., Ltd. On 20 March 2019, the Company issued a bond in the national inter-bank bond market at a principal amount of RMB35 billion, and completed the issuance on 22 March 2019. The bond has a 10-year Bonds payable are measured at amortised cost as described in Note 2.15. |
Securities Sold under Agreement
Securities Sold under Agreements to Repurchase | 12 Months Ended |
Dec. 31, 2019 | |
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Securities Sold under Agreements to Repurchase | 19 SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE As at 31 As at 31 Interbank market 63,631 125,788 Stock exchange market 54,457 66,353 Total 118,088 192,141 Maturing: Within 30 days 117,928 192,141 After 90 days 160 — Total 118,088 192,141 As at 31 December 2019, bonds with a carrying value of RMB92,011 million (as at 31 December 2018: RMB139,784 million) were pledged as collateral for financial assets sold under agreements to repurchase resulting from repurchase transactions entered into by the Group in the interbank market. For debt repurchase transactions through the stock exchange, the Group is required to deposit certain exchange-traded bonds into a collateral pool with fair value converted at a standard rate pursuant to the stock exchange’s regulation which should be no less than the balance of the related repurchase transaction. As at 31 December 2019, the carrying value of securities deposited in the collateral pool was RMB256,700 million (as at 31 December 2018: RMB174,323 million). The collateral is restricted from trading during the period of the repurchase transaction. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
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Other Liabilities | 20 OTHER LIABILITIES As at 31 As at 31 Payable to the third-party holders of consolidated structured entities 21,400 9,407 Interest payable to policyholders 14,113 11,739 Salary and welfare payable 11,475 11,199 Brokerage and commission payable 7,418 5,268 Payable to constructors 3,329 3,479 Agent deposits 1,998 1,793 Interest payable of debt instruments 1,327 252 Stock appreciation rights (Note 31) 748 490 Tax payable 674 666 Others 18,632 14,133 Total 81,114 58,426 Current 81,114 58,426 Non-current — — Total 81,114 58,426 |
Statutory Insurance Fund
Statutory Insurance Fund | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Statutory Insurance Fund | 21 STATUTORY INSURANCE FUND As required by the CIRC Order [2008] No. 2, “ Measures for Administration of Statutory Insurance Fund |
Investment Income
Investment Income | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Investment Income | 22 INVESTMENT INCOME For the year ended 31 December 2019 2018 2017 Debt securities - held-to-maturity 38,229 34,657 30,669 - available-for-sale 21,373 22,991 19,608 - at fair value through profit or loss 3,546 3,869 3,618 Equity securities - available-for-sale 21,823 16,492 27,019 - at fair value through profit or loss 981 1,284 920 Bank deposits 26,695 22,699 23,827 Loans 27,111 22,894 16,320 Securities purchased under agreements to resell 161 281 746 Total 139,919 125,167 122,727 For the year ended 31 December 2019, the interest income included in investment income was RMB117,115 million (2018: RMB107,391 million, 2017: RMB94,788 million). All interest income was accrued using the effective interest method. |
Net Realised Gains on Financial
Net Realised Gains on Financial Assets | 12 Months Ended |
Dec. 31, 2019 | |
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Net Realised Gains on Financial Assets | 23 NET REALISED GAINS ON FINANCIAL ASSETS For the year ended 31 December 2019 2018 2017 Debt securities Realised gains (i) 3,714 399 (9 ) Impairment (ii) (3,749 ) (42 ) (114 ) Subtotal (35 ) 357 (123 ) Equity securities Realised gains (i) 4,504 (11,785 ) 2,808 Impairment (ii) (2,638 ) (8,163 ) (2,643 ) Subtotal 1,866 (19,948 ) 165 Total 1,831 (19,591 ) 42 (i) Realised gains were generated mainly from available-for-sale During the year ended 31 December 2019, the Group recognised an impairment charge of RMB888 million (2018: RMB4,542 million, 2017: RMB619 million) of available-for-sale available-for-sale available-for-sale held-to |
Net Fair Value Gains through Pr
Net Fair Value Gains through Profit or Loss | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Net Fair Value Gains through Profit or Loss | 24 NET FAIR VALUE GAINS THROUGH PROFIT OR LOSS For the year ended 31 December 2019 2018 2017 Debt securities 778 2,006 (1,542 ) Equity securities 18,279 (18,938 ) 8,179 Stock appreciation rights (258 ) 343 (179 ) Financial liabilities at fair value through profit or loss (380 ) 188 (275 ) Derivative financial instruments 832 (1,877 ) — Total 19,251 (18,278 ) 6,183 |
Insurance Benefits and Claims E
Insurance Benefits and Claims Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Insurance Benefits and Claims Expenses | 25 INSURANCE BENEFITS AND CLAIMS EXPENSES Gross Ceded Net For the year ended 31 December 2019 Life insurance death and other benefits 130,975 (3,098 ) 127,877 Accident and health claims and claim adjustment expenses 51,394 (611 ) 50,783 Increase in insurance contract liabilities 331,523 (716 ) 330,807 Total 513,892 (4,425 ) 509,467 For the year ended 31 December 2018 Life insurance death and other benefits 250,627 (1,891 ) 248,736 Accident and health claims and claim adjustment expenses 41,056 (504 ) 40,552 Increase in insurance contract liabilities 190,703 (772 ) 189,931 Total 482,386 (3,167 ) 479,219 For the year ended 31 December 2017 Life insurance death and other benefits 260,853 (1,145 ) 259,708 Accident and health claims and claim adjustment expenses 34,101 (283 ) 33,818 Increase in insurance contract liabilities 173,085 (568 ) 172,517 Total 468,039 (1,996 ) 466,043 |
Investment Contract Benefits
Investment Contract Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Investment Contract Benefits | 26 INVESTMENT CONTRACT BENEFITS Benefits of investment contracts are mainly the interest credited to investment contracts. |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Finance Costs | 27 FINANCE COSTS For the year ended 31 December 2019 2018 2017 Interest expenses for securities sold under agreements to repurchase 2,392 3,565 3,144 Interest expenses for interest-bearing loans and borrowings 589 551 424 Interest expenses for bonds payable 1,168 — 1,033 Interest on lease liabilities 106 — — Total 4,255 4,116 4,601 |
Profit before Income Tax
Profit before Income Tax | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Profit before Income Tax | 28 PROFIT BEFORE INCOME TAX Profit before income tax is stated after charging/(crediting) the following: For the year ended 31 December 2019 2018 2017 Employee salaries and welfare costs 20,125 19,268 18,741 Housing benefits 1,189 1,061 933 Contribution to the defined contribution pension plan 2,905 2,531 2,357 Depreciation and amortisation 4,379 2,638 2,240 Foreign exchange losses/(gains) 67 194 (52 ) Remuneration in respect of audit services provided by auditors 60 59 59 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Taxation | 29 TAXATION Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax relates to the same tax authority. (a) The amount of taxation charged to net profit represents: For the year ended 31 December 2019 2018 2017 Current taxation - Enterprise income tax 614 6,397 9,457 Deferred taxation 167 (4,412 ) (538 ) Total tax charges 781 1,985 8,919 (b) The reconciliation between the Group’s effective tax rate and the statutory tax rate of 25% in the PRC (2018: 25%, 2017: 25%) is as follows: For the year ended 31 December 2019 2018 2017 Profit before income tax 59,795 13,921 41,671 Tax computed at the statutory tax rate 14,949 3,480 10,418 Adjustment on current income tax of previous period (i) (5,228 ) (324 ) (40 ) Non-taxable (9,589 ) (6,771 ) (7,807 ) Expenses not deductible for tax purposes (ii) 313 5,319 6,105 Unused tax losses 239 25 6 Tax losses utilised from previous periods — (86 ) (15 ) Others 97 342 252 Income tax at the effective tax rate 781 1,985 8,919 (i) According to Cai Shui [2019] No.72, Notice on Pre-tax (ii) Non-taxable (c) As at 31 December 2019 and 31 December 2018, the amounts of deferred tax assets and liabilities are as follows: As at As at Deferred tax assets 13,352 10,160 Deferred tax liabilities (23,554 ) (8,903 ) Net deferred tax assets 128 1,257 Net deferred tax liabilities (10,330 ) — As at 31 December 2019 and 31 December 2018, deferred income tax was calculated in full on temporary differences under the liability method using the principal tax rate of 25%. The movements in net deferred income tax assets and liabilities during the period are as follows: Net deferred tax assets/(liabilities) Insurance Investments Others Total (i) (ii) (iii) As at 1 January 2018 (6,737 ) (494 ) 2,360 (4,871 ) (Charged)/credited to net profit 1,421 2,713 278 4,412 (Charged)/credited to other comprehensive income - Available-for-sale — 1,673 — 1,673 - Portion of fair value changes on available-for-sale 8 — — 8 - Others — 35 — 35 As at 31 December 2018 (5,308 ) 3,927 2,638 1,257 As at 1 January 2019 (5,308 ) 3,927 2,638 1,257 (Charged)/credited to net profit 1,985 (2,428 ) 276 (167 ) (Charged)/credited to other comprehensive income - Available-for-sale — (16,260 ) — (16,260 ) - Portion of fair value changes on available-for-sale 4,880 — — 4,880 - Others — 88 — 88 As at 31 December 2019 1,557 (14,673 ) 2,914 (10,202 ) (i) The deferred tax liabilities arising from the insurance category are mainly related to the change of long-term insurance contract liabilities at 31 December 2008 as a result of the first time adoption of IFRSs in 2009 and the temporary differences of short-term insurance contract liabilities and policyholder dividends payable. (ii) The deferred tax arising from the investments category is mainly related to the temporary differences of unrealised gains/(losses) on available-for-sale (iii) The deferred tax arising from the others category is mainly related to the temporary differences of employee salaries and welfare costs payable. Unrecognised deductible tax losses of the Group amounted to RMB1,321 million as at 31 December 2019 (as at 31 December 2018: RMB365 million). Unrecognised deductible temporary differences of the Group amounted to RMB1 million as at 31 December 2019 (as at 31 December 2018: RMB378 million). (d) The analysis of net deferred tax assets and deferred tax liabilities is as follows: As at 31 As at 31 Deferred tax assets: - deferred tax assets to be recovered after 12 months 7,508 3,947 - deferred tax assets to be recovered within 12 months 5,844 6,213 Subtotal 13,352 10,160 Deferred tax liabilities: - deferred tax liabilities to be settled after 12 months (19,906 ) (7,490 ) - deferred tax liabilities to be settled within 12 months (3,648 ) (1,413 ) Subtotal (23,554 ) (8,903 ) Net deferred tax liabilities (10,202 ) 1,257 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
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Earnings Per Share | 30 EARNINGS PER SHARE There is no difference between the basic and diluted earnings per share. The basic and diluted earnings per share for the year ended 31 December 2019 are calculated based on the net profit for the year attributable to ordinary equity holders of the Company and the weighted average of 28,264,705,000 ordinary shares (2018: same). |
Stock Appreciation Rights
Stock Appreciation Rights | 12 Months Ended |
Dec. 31, 2019 | |
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Stock Appreciation Rights | 31 STOCK APPRECIATION RIGHTS The Board of Directors of the Company approved, on 5 January 2006, an award of stock appreciation rights of 4.05 million units and on 21 August 2006, another award of stock appreciation rights of 53.22 million units to eligible employees. The exercise prices of the two awards were HKD5.33 and HKD6.83, respectively, the average closing price of shares in the five trading days prior to 1 July 2005 and 1 January 2006, the dates for vesting and exercise price setting purposes of this award. Upon the exercise of stock appreciation rights, exercising recipients will receive payments in RMB, subject to any withholding tax, equal to the number of stock appreciation rights exercised times the difference between the exercise price and market price of the H shares at the time of exercise. Stock appreciation rights have been awarded in units, with each unit representing the value of one H share. No shares of common stock will be issued under the stock appreciation rights plan. According to the Company’s plan, all stock appreciation rights will have an exercise period of five years from the date of award and will not be exercisable before the fourth anniversary of the date of award unless specific market or other conditions have been met. On 26 February 2010, the Board of Directors of the Company extended the exercise period of all stock appreciation rights, which is also subject to government policy. As at 31 December 2019, there were 55.01 million units outstanding and exercisable (as at 31 December 2018: same). As at 31 December 2019, the amount of intrinsic value for the vested stock appreciation rights was RMB735 million (as at 31 December 2018: RMB477 million). The fair value of the stock appreciation rights is estimated on the date of valuation at each reporting date using lattice-based option valuation models based on expected volatility from 30% to 36%, an expected dividend yield of no higher than 3% and a risk-free interest rate ranging from 1.42% to 1.82%. The Company recognised a loss of RMB258 million in the net fair value through profit or loss in the consolidated comprehensive income representing the fair value change of the rights during the year ended 31 December 2019 (2018: fair value gain of RMB343 million, 2017: fair value losses of RMB179 million). RMB735 million and RMB13 million were included in salary and staff welfare payable included under other liabilities for the units not exercised and exercised but not paid as at 31 December 2019 (as at 31 December 2018: RMB477 million and RMB13 million), respectively. There was no unrecognised compensation cost for the stock appreciation rights as at 31 December 2019 (as at 31 December 2018: nil). |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Dividends | 32 DIVIDENDS Pursuant to the shareholders’ approval at the Annual General Meeting on 30 May 2019, a final dividend of RMB0.16 (inclusive of tax) per ordinary share totalling RMB4,522 million in respect of the year ended 31 December 2018 was declared and paid in 2019. The dividend has been recorded in the consolidated financial statements for the year ended 31 December 2019. Pursuant to the shareholders’ approval at the Annual General Meeting on 6 June 2018, a final dividend of RMB0.40 (inclusive of tax) per ordinary share totalling RMB11,306 million in respect of the year ended 31 December 2017 was declared and paid in 2018. The dividend has been recorded in the consolidated financial statements for the year ended 31 December 2018. Pursuant to the shareholders’ approval at the Annual General Meeting on 31 May 2017, a final dividend of RMB0.24 (inclusive of tax) per ordinary share totalling RMB6,784 million in respect of the year ended 31 December 2016 was declared and paid in 2017. The dividend has been recorded in the consolidated financial statements for the year ended 31 December 2017. A distribution of RMB394 million (inclusive of tax) to the holders of Core Tier 2 Capital Securities was approved by management in 2019 according to the authorisation by the Board of Directors, which was delegated by the General Meeting. A distribution of RMB384 million (inclusive of tax) to the holders of Core Tier 2 Capital Securities was approved by management in 2018 according to the authorisation by the Board of Directors, which was delegated by the General Meeting. A distribution of RMB380 million (inclusive of tax) to the holders of Core Tier 2 Capital Securities was approved by management in 2017 according to the authorisation by the Board of Directors, which was delegated by the General Meeting. Pursuant to a resolution passed at the meeting of the Board of Directors on 25 March 2020, a final dividend of RMB0.73 (inclusive of tax) per ordinary share totalling approximately RMB20,633 million for the year ended 31 December 2019 was proposed for shareholders’ approval at the forthcoming Annual General Meeting. The dividend has not been recorded in the consolidated financial statements for the year ended 31 December 2019. |
Disclosures About the Temporary
Disclosures About the Temporary Exemption from IFRS 9 | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Disclosures About the Temporary Exemption from IFRS 9 | 33 DISCLOSURES ABOUT THE TEMPORARY EXEMPTION FROM IFRS 9 According to IFRS 4 Amendments, the Company made the assessment based on the Group’s financial position of 31 December 2015, concluding that the carrying amount of the Group’s liabilities arising from contracts within the scope of IFRS 4, which includes any deposit components or embedded derivatives unbundled from insurance contracts, was significant compared to the total carrying amount of all its liabilities. And the percentage of the total carrying amount of its liabilities connected with insurance relative to the total carrying amount of all its liabilities is greater than 90 percent. There had been no significant change in the activities of the Group since then that requires reassessment. Therefore, the Group’s activities are predominantly connected with insurance, meeting the criteria to apply temporary exemption from IFRS 9. Sino-Ocean, China Unicom and certain associates of the Group, have adopted IFRS 9. CGB, an associate of the Group, has adopted IFRS 9 since 1 January 2019. According to IFRS 4 Amendments, the Group elected not to apply uniform accounting policies when using the equity method for these associates. The effects of adopting new accounting standards by CGB upon the Group’s consolidated statement of financial position are disclosed in Note 9. (a) The tables below present the fair value of the following groups of financial assets (i) Fair value as at 31 December 2019 2018 Held for trading financial assets 141,608 138,717 Financial assets that are managed and whose performance are evaluated on a fair value basis — — Other financial assets - Financial assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (“SPPI”) 1,615,856 1,502,203 - Financial assets with contractual terms that do not give rise on SPPI 860,644 528,377 Total 2,618,108 2,169,297 Fair value changes for the year ended 31 December 2019 2018 Held for trading financial assets 19,057 (16,932 ) Financial assets that are managed and whose performance are evaluated on a fair value basis — — Other financial assets -Financial assets with contractual terms that give rise on SPPI 6,029 95,480 -Financial assets with contractual terms that do not give rise on SPPI 77,741 (40,447 ) Total 102,827 38,101 (i) Only including securities at fair value through profit or loss, loans (excluding policy loans), available-for-sale held-to-maturity (b) The table below presents the credit risk exposure (ii) Carrying amount (iii) As at 31 December 2019 RMB Million As at 31 December Domestic Rating not required (iv) 657,905 653,328 AAA 893,336 787,908 AA+ 7,671 13,026 AA 1,163 1,152 AA- 3,000 70 Subtotal 1,563,075 1,455,484 Overseas AAA 30 — A+ 4,014 — A 3,541 1,755 A- 35 493 BBB+ 135 118 BBB- 14 14 Not rated 25 24 Subtotal 7,794 2,404 Total 1,570,869 1,457,888 (c) The table below presents financial assets without low credit risk for aforementioned financial assets with contractual t As at 31 December 2019 Carrying amount (iii) Fair value Domestic 11,834 8,237 Overseas 25 9 Total 11,859 8,246 As at 31 December 2018 Carrying amount (iii) Fair value Domestic 14,248 14,539 Overseas 24 12 Total 14,272 14,551 (ii) Credit risk ratings for domestic assets are provided by domestic qualified external rating agencies and credit risk ratings for overseas assets are provided by overseas qualified external rating agencies. (iii) For financial assets measured at amortised cost, carrying amount before adjusting impairment allowance is disclosed here. (iv) Mainly including government bonds and policy financial bonds. |
Significant Related Party Trans
Significant Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Significant Related Party Transactions | 34 SIGNIFICANT RELATED PARTY TRANSACTIONS (a) Related parties with control relationship Information of the parent company is as follows: Name Location of Principal business Relationship with Nature of Legal CLIC Beijing, China Insurance services including receipt of premiums and payment of benefits in respect of the in-force Immediate and ultimate holding company State-owned Wang Bin (b) Subsidiaries Refer to Note 34(f) for the basic and related information of subsidiaries. (c) Associates and joint ventures Refer to Note 9 for the basic and related information of associates and joint ventures. (d) Other related parties Significant related parties Relationship with the Company China Life Real Estate Co., Limited (“CLRE”) Under common control of CLIC China Life Insurance (Overseas) Company Limited Under common control of CLIC China Life Investment Holding Company Limited (“CLI”) Under common control of CLIC China Life Ecommerce Company Limited (“CL Ecommerce”) Under common control of CLIC China Life Enterprise Annuity Fund (“EAP”) A pension fund jointly set up by the Company and others (e) Registered capital of related parties with control relationship and changes during the year Name of related party As at 31 December 2018 Increase Decrease As at 31 December 2019 CLIC RMB4,600 — — RMB4,600 AMC RMB4,000 — — RMB4,000 China Life Pension Company Limited (“Pension Company”) RMB3,400 — — RMB3,400 China Life (Suzhou) Pension and Retirement Investment Company Limited (“Suzhou Pension Company”) RMB1,991 — — RMB1,991 CL AMP RMB1,288 — — RMB1,288 CL Wealth RMB200 — — RMB200 Shanghai Rui Chong Investment Co., Limited (“Rui Chong Company”) RMB6,800 — — RMB6,800 China Life (Beijing) Health Management Co., Limited (“CL Health”) (i) RMB1,730 — RMB(200 ) RMB1,530 China Life Franklin (Shenzhen) Equity Investment Fund Management Co., Limited (“Franklin Shenzhen Company”) USD2 — — USD2 Xi’an Shengyi Jingsheng Real Estate Co., Ltd. (“Shengyi Jingsheng”) RMB1,131 — — RMB1,131 Dalian Hope Building Company Ltd. (“Hope Building”) RMB484 — — RMB484 (i) The Group reduced its capital contribution to CL Health by RMB200 million for the year ended 31 December 2019. As at 4 September 2019, CL Health completed the business registration modification procedure for the registered capital with the amount reduced from RMB1,730 million to RMB1,530 million. (ii) The table above does not include the partnerships and the subsidiaries which were not set up or invested in Mainland China that having control relationship with the Group. These partnerships and subsidiaries do not have related information about registered capital. (f) Percentages of holding of related parties with control relationship and changes during the year Shareholder As at 31 December 2018 As at 31 December 2019 Amount Percentage of holding Increase Decrease Amount Percentage of CLIC RMB19,324 68.37% — — RMB19,324 68.37% Subsidiaries As at 31 December 2018 As at 31 December 2019 Amount Percentage of holding Increase Decrease Amount Percentage of AMC RMB1,680 60.00% directly — — RMB1,680 60.00% directly Pension Company RMB2,746 74.27% directly and indirectly — — RMB2,746 74.27% directly and indirectly China Life Franklin Asset Management Company Limited (“AMC HK”) HKD130 50.00% indirectly — — HKD130 50.00% indirectly Suzhou Pension Company RMB1,586 100.00% directly RMB200 — RMB1,786 100.00% directly CL AMP RMB1,095 85.03% indirectly — — RMB1,095 85.03% indirectly CL Wealth RMB200 100.00% indirectly — — RMB200 100.00% indirectly Golden Phoenix Tree Limited — 100.00% directly — — — 100.00% directly King Phoenix Tree Limited — 100.00% indirectly — — — 100.00% indirectly Rui Chong Company RMB6,800 100.00% directly — — RMB6,800 100.00% directly New Aldgate Limited RMB1,167 100.00% directly — — RMB1,167 100.00% directly Glorious Fortune Forever Limited — 100.00% directly — — — 100.00% directly CL Hotel Investor, L.P. — 100.00% directly — — — 100.00% directly Golden Bamboo Limited RMB1,993 100.00% directly — — RMB1,993 100.00% directly Sunny Bamboo Limited RMB1,876 100.00% directly — — RMB1,876 100.00% directly Fortune Bamboo Limited RMB2,435 100.00% directly — — RMB2,435 100.00% directly China Century Core Fund Limited USD1,125 100.00% indirectly — — USD1,125 100.00% indirectly CL Health RMB1,730 100.00% directly — RMB(200 ) RMB1,530 100.00% directly Franklin Shenzhen Company USD2 100.00% indirectly — — USD2 100.00% indirectly Guo Yang Guo Sheng RMB3,250 99.997% directly — RMB(100 ) RMB3,150 99.997% directly New Capital Wisdom Limited — 100.00% indirectly — — — 100.00% indirectly New Fortune Wisdom Limited — 100.00% indirectly — — — 100.00% indirectly Wisdom Forever Limited Partnership USD452 100.00% indirectly — — USD452 100.00% indirectly Shanghai Yuan Shu Yuan Jiu Investment Management Partnership (Limited Partnership) RMB606 99.98% directly — — RMB606 99.98% directly Shanghai Yuan Shu Yuan Pin Investment Management Partnership (Limited Partnership) RMB606 99.98% directly — — RMB606 99.98% directly Shanghai Wansheng Industry Partnership (Limited Partnership) RMB4,000 99.98% directly — — RMB4,000 99.98% directly Ningbo Meishan Bonded Port Area Bai Ning Investment Partnership (Limited Partnership) RMB1,680 99.98% directly — — RMB1,680 99.98% directly Hope Building RMB484 100.00% indirectly — — RMB484 100.00% indirectly Wuhu Yuanxiang Tianfu Investment Management Partnership (Limited Partnership) RMB533 99.98% directly — — RMB533 99.98% directly Wuhu Yuanxiang Tianyi Investment Management Partnership (Limited Partnership) RMB533 99.98% directly — — RMB533 99.98% directly Shengyi Jingsheng RMB1,063 100.00% indirectly — — RMB1,063 100.00% indirectly CBRE Global Investors U.S. Investments I, LLC (“CG Investments”) (i) — — RMB2,859 — RMB2,859 99.99% directly China Life Guangde (Tianjin) Equity Investment Fund Partnership (Limited Partnership) (“CL Guang De”) (i) — — RMB10 — RMB10 99.95% directly (i) CG Investments and CL Guang De were newly included in the consolidated financial statements of the Group for the year ended 31 December 2019. (g) Transactions with significant related parties The following table summarises significant transactions carried out by the Group with its significant related parties: For the year ended 31 December 2019 2018 2017 Notes RMB million RMB million RMB million Transactions with CLIC and its subsidiaries Policy management fee received from CLIC (i) (vii) 575 629 740 Asset management fee received from CLIC (ii.a) 89 100 107 Payment of dividends from the Company to CLIC 3,092 7,729 4,638 Distribution of profits from AMC to CLIC 122 128 125 Asset management fee received from CL Overseas (ii.b) 86 63 119 Asset management fee received from CLP&C (ii.c) 14 14 14 Payment of insurance premium to CLP&C 48 47 44 Claim and other payments received from CLP&C 16 14 16 Agency fee received from CLP&C (iii) (vii) 2,297 2,959 3,030 Rental and a service fee received from CLP&C 51 50 59 Dividend from CLP&C — 66 69 Payment of rental, project fee and other expenses to CLRE 43 45 50 Property leasing expenses charged by CLI (iv) 78 83 78 Payment of an asset management fee to CLI (ii.d) (vii) 653 529 396 Property leasing income received from CLI 39 37 37 Payment of a business management service fee to CL Ecommerce — 53 64 Transactions between CGB and the Group Interest on deposits received from CGB 2,584 1,425 1,382 Dividend from CGB (Note 9) 284 — — Commission expenses charged by CGB (v) 158 112 92 Capital contribution to CGB — 13,012 — Transactions between Sino-Ocean and the Group Dividend from Sino-Ocean (Note 9) 369 558 553 Interest of corporate bonds received from Sino-Ocean 27 27 27 Project management fee paid to Sino-Ocean — 2 55 Transactions between EAP and the Group Contribution to EAP 1,003 593 700 Transaction between other associates and joint ventures and the Group Distribution of profits from other associates and joint ventures to the Group (Note 9) 2,574 2,279 1,240 Transactions between AMC and the Company Payment of an asset management fee to AMC (ii.e) (vii) 1,353 1,326 1,154 Distribution of profits from AMC 183 193 187 Transactions between Pension Company and the Company Rental received from Pension Company 54 45 43 Agency fee received from Pension Company for entrusted sales of annuity funds and other businesses (vi) 54 43 42 Marketing fee income for promotion of annuity business from Pension Company 8 13 10 Transactions between AMC HK and the Company Payment of an investment management fee to AMC HK (ii.f) 18 18 14 Transactions between Suzhou Pension Company and the Company Capital contribution to Suzhou Pension Company 200 — 260 Transactions between Rui Chong Company and the Company Capital contribution to Rui Chong Company — — 601 Rental fee charged by Rui Chong Company 47 47 — Transactions between the Guo Yang Guo Sheng and the Company Capital withdrawal from Guo Yang Guo Sheng 100 — — Transactions between the CL Health and the Company Capital withdrawal from CL Health 200 — — Transactions between other associates and joint ventures and the Company Distribution of profits from other associates and joint ventures to the Company 2,210 1,424 203 Transactions between the consolidated structured entities/other subsidiaries and the Company Distribution of profits from the consolidated structured entities to the Company 10,965 8,247 3,944 Distribution of profits from the other subsidiaries to the Company 206 426 70 Notes: (i) On 26 December 2017, the Company and CLIC renewed a renewable insurance agency agreement, effective from 1 January 2018 to 31 December 2020. The Company performs its duties of insurance agents in accordance with the agreement, but does not acquire any rights and profits or assume any obligations, losses and risks as an insurer of the non-transferable (ii.a) In December 2018, CLIC renewed an asset management agreement with AMC, entrusting AMC to manage and make investments for its insurance funds. The agreement is effective from 1 January 2019 to 31 December 2021. In accordance with the agreement, CLIC paid AMC a basic service fee at the rate of 0.05% per annum for the management of insurance funds. The service fee was calculated on a monthly basis and payable on a seasonal basis, by multiplying the average book value of the assets under management (after deducting the funds obtained from and interests accrued for repurchase transactions, deducting the principal and interests of debt and equity investment schemes, project asset-backed schemes, customised non-standard non-standard (ii.b) In 2018, CL Overseas renewed an investment management agreement with AMC HK, effective from 1 January 2018 to 31 December 2022. In accordance with the agreement, CL Overseas entrusted AMC HK to manage and make investments for its insurance funds and paid AMC HK a basic investment management fee and an investment performance fee. The basic investment management fee was accrued by multiplying the weighted average total funds by the basic fee rate. The investment performance fee was calculated based on the difference between the total actual annual yields and predetermined net realised yield. The basic investment management fee was calculated and payable on a semi-annual basis. The investment performance fee was payable according to the total actual annual yield at the end of each year. (ii.c) On 15 May 2018, CLP&C renewed an agreement for the management of insurance funds with AMC, entrusting AMC to manage and make investments for its insurance funds, effective from 1 January 2018 to 31 December 2019. The agreement was subject to an automatic one-year (ii.d) On 31 December 2018, the Company and CLI renewed a management agreement of alternative investment of insurance funds, effective from 1 January 2019 to 31 December 2020. In accordance with the agreement, the Company entrusted CLI to engage in investment, operation and management of equities, real estate and related financial products, and securitised financial products under the instructions of the annual guidelines. The Company paid CLI an asset management fee and a performance related bonus based on the agreement. For fixed-income projects, the management fee rate was between 0.05% and 0.6% according to different ranges of returns; for non-fixed-income non-fixed-income (ii.e) On 28 December 2018, the Company and AMC renewed a renewable agreement for the management of insurance funds, effective from 1 January 2019 to 31 December 2021. In accordance with the agreement, the Company entrusted AMC to manage and make investments for its insurance funds and paid AMC a fixed investment management service fee and a variable investment management service fee. The fixed annual service fee was calculated and payable on a seasonal basis, by multiplying the average net value of the assets under management by the rate of 0.05%; the variable investment management service fee was payable annually, based on the results of performance evaluation, at 20% of the fixed service fee per annum. Asset management fees charged to the Company by AMC are eliminated in the consolidated statement of comprehensive income. (ii.f) On 31 December 2018, the Company and AMC HK renewed the management agreement of insurance funds investment, which is effective from 1 January 2019 to 31 December 2021. In accordance with the agreement, the Company entrusted AMC HK to manage and make investments for its insurance funds and paid AMC HK an asset management fee on a seasonal basis and the maximum investment management fee paid annually is RMB30 million. The management fee rate for financial products, such as investment plans, project asset-backed plans, customised products and insurance asset management products, set up by AMC HK in the industry permitted by regulatory policies, is set according to contractual terms. The management fee rate for the directive investment operation of term deposits, common stocks, funds, financial products and other investment products, universal account B-2 (iii) On 31 January 2018, the Company and CLP&C signed a new framework insurance agency agreement, whereby CLP&C entrusted the Company to act as an agent to sell designated P&C insurance products in certain authorised jurisdictions. The agency fee was determined based on cost (tax included) plus a margin. The agreement is effective for three years, from 8 March 2018 to 7 March 2021. (iv) On 29 December 2017, the Company renewed a property leasing agreement with CLI, effective from 1 January 2018 to 31 December 2020, pursuant to which CLI leased to the Company certain buildings of its own. Annual rental payable by the Company to CLI in relation to the CLI properties is determined either by reference to the market rent, or, the costs incurred by CLI in holding and maintaining the properties, plus a margin of approximately 5%. The rental was paid on a semi-annual basis, and each payment was equal to one half of the total annual rental. (v) On 19 October 2018, the Company and CGB renewed an insurance agency agreement to distribute insurance products. All individual insurance products suitable for distribution through bancassurance channels are included in the agreement. CGB provides agency services, including the sale of insurance products, collecting premiums and paying benefits. The Company paid the agency commission by multiplying the net amount of total premiums received from the sale of each category individual insurance products after deducting the surrender premiums in the hesitation period, by the responding fixed commission rate. The commission rates for various insurance products sold by CGB are agreed based on arm’s length transactions. The commissions are payable on a monthly basis. The agreement is effective from the signing date to 16 August 2020. On 28 December 2018, the Company and CGB signed another insurance agency agreement to distribute corporate group insurance products. The corporate group insurance products suitable for distribution through bancassurance channels are included in the agreement. The Company paid the agency commission by multiplying the net amount of total premiums received from the sale of each category group insurance product after deducting the surrender premiums, by the responding fixed commission rate. The commission rates for various insurance products sold by CGB are agreed by reference to comparable market prices of independent third-parties. The commissions are paid on a monthly basis. The agreement is effective for two years from 1 January 2019, with an automatic one-year renewal if no objections were raised by either party upon expiry. (vi) On 1 January 2019, the Company and Pension Company renewed an entrusted agency agreement for pension business acted by life business. The agreement is effective from 1 January 2019 to 31 December 2021. The business means that Pension Company entrusted the Company to sell enterprise annuity funds, pension security business, occupational pension business and the third-party asset management business. The commissions agreed upon in the agreement include the daily business commissions and the annual promotional plans commissions. According to the agreement, the commissions for the entrusting service of enterprise annuity fund management, which is the core business of Pension Company, are calculated at 30% to 80% of the annual entrusting management fee revenues, depending on the duration of the agreement. The commissions for account management service are calculated at 60% of the first year’s account management fee and were only charged for the first year, regardless of the duration of the agreement. The commissions for investment management services, in accordance with the duration of the agreement, are calculated at 60% to 3% of the annual investment management fee (excluding risk reserves for investment), and decreased annually. The commissions of the group pension plan are, in accordance with the duration of the contracts, calculated at 50% to 3% of the annual investment management fee, and decreased annually; the commissions of the personal pension plan are calculated at 30% to 50% of the annual investment management fee according to the various rates of daily management fee applied to the various individual pension management products in all of the management years; the commissions of occupation annuity and third-party asset management business are in accordance with the provision of annual promotional plans, which should be determined by both parties on a separate occasion. The commissions charged to Pension Company by the Company are eliminated in the consolidated statement of comprehensive income of the Group. (vii) These transactions constitute continuing connected transactions which are subject to reporting and announcement requirements but are exempt from independent shareholders’ approval requirements under Chapter 14A of the Listing Rules. The Company has complied with the disclosure requirements in accordance with Chapter 14A of the Listing Rules. (h) Amounts due from/to significant related parties The following table summarises the balances due from and to significant related parties. The balances of the Group are all unsecured. The balance of the Group are non-interest-bearing As at 31 December 2019 As at 31 December 2018 RMB million RMB million The resulting balances due from and to significant related parties of the Group Amount due from CLIC 334 350 Amount due from CL Overseas 56 68 Amount due from CLP&C 334 284 Amount due to CLP&C (31 ) (9 ) Amount due from CLI 18 15 Amount due to CLI (401 ) (362 ) Amount due from CLRE 2 2 Amount deposited with CGB 59,420 61,880 Wealth management products and other securities of CGB 8 44 115 Amount due from CGB 894 1,557 Amount due to CGB ( 75 ) (63 ) Corporate bonds of Sino-Ocean 605 593 Amount due from Sino-Ocean 8 8 Amount due from CL Ecommerce 13 6 Amount due to CL Ecommerce ( 68 ) (67 ) The resulting balances due from and to subsidiaries of the Company Amount due to AMC (381 ) (218 ) Amount due to AMC HK (9 ) (10 ) Amount due from Pension Company 30 25 Amount due to Pension Company (35 ) (28 ) Amount due from Rui Chong Company 118 18 (i) Key management personnel compensation For the year ended 31 December 2019 2018 2017 RMB million RMB million RMB million Salaries and other benefits 15 34 28 The total compensation package for the Company’s key management personnel for the year ended 31 December 2019 has not yet been finalised in accordance with regulations of the relevant PRC authorities. The final compensation will be disclosed in a separate announcement when determined. The compensation of 2018 has been approved by the relevant authorities. The total compensation of 2018 was RMB34 million, including a deferred payment about RMB7 million. (j) Transactions with state-owned enterprises Under IAS 24 Related Party Disclosures As at 31 December 2019, most of the bank deposits of the Group were with state-owned banks; the issuers of corporate bonds and subordinated bonds held by the Group were mainly state-owned enterprises. For the year ended 31 December 2019, a large portion of group insurance business of the Group was with state-owned enterprises; the majority of bancassurance commission charges were paid to state-owned banks and postal offices; and the majority of the reinsurance agreements of the Group were entered into with a state-owned reinsurance company. |
Share Capital, Other Equity Ins
Share Capital, Other Equity Instruments and Reserves | 12 Months Ended |
Dec. 31, 2019 | |
Share capital [member] | |
Statement [line items] | |
Share Capital, Other Equity Instruments and Reserves | 35 SHARE CAPITAL As at 31 December 2019 As at 31 December 2018 No. of shares RMB million No. of shares RMB million Registered, authorised, issued and fully paid Ordinary shares of RMB1 each 28,264,705,000 28,265 28,264,705,000 28,265 As at 31 December 2019, the Company’s share capital was as follows: As at 31 December 2019 No. of shares RMB million Owned by CLIC (i) 19,323,530,000 19,324 Owned by other equity holders 8,941,175,000 8,941 Including: domestic listed 1,500,000,000 1,500 overseas listed (ii) 7,441,175,000 7,441 Total 28,264,705,000 28,265 (i) All shares owned by CLIC are domestic listed shares. (ii) Overseas listed shares are traded on the Stock Exchange of Hong Kong Limited and the New York Stock Exchange. |
Other equity instruments [member] | |
Statement [line items] | |
Share Capital, Other Equity Instruments and Reserves | 36 OTHER EQUITY INSTRUMENTS (a) Basic information As at 31 Increase Decrease As at 31 December 2019 Core Tier 2 Capital Securities 7,791 — — 7,791 Total 7,791 — — 7,791 The Company issued Core Tier 2 Capital Securities at par with the nominal value of USD1,280 million on 3 July 2015, and listed such securities on the Stock Exchange of Hong Kong Limited on 6 July 2015. The securities were issued in the specified denomination of USD200,000 and integral multiples of USD1,000 in excess thereof. After a deduction of the issue expense, the total amount of the proceeds raised from this issuance was USD1,274 million or RMB7,791 million. The issued capital securities have a term of 60 years, extendable upon expiry. Distributions shall be payable on the securities semi-annually and the Company has the option to redeem the securities at the end of the fifth year after issuance and on any distribution payment date thereafter. The initial distribution rate for the first five interest-bearing years is 4.00%, if the Company does not exercise this option, the rate of distribution will be reset based on the comparable US treasury yield plus a margin of 2.294% at the end of the fifth year and every five years thereafter. (b) Equity attributable to equity holders As at 31 December 2019 As at 31 Equity attributable to equity holders of the Company 403,764 318,371 Equity attributable to ordinary equity holders of the Company 395,973 310,580 Equity attributable to other equity instruments holders of the Company 7,791 7,791 Equity attributable to non-controlling 5,578 4,919 Equity attributable to ordinary equity holders of non-controlling 5,578 4,919 Refer to Note 32 for the information of distribution to other equity instruments holders of the Company for the year ended 31 December 2019. As at 31 December 2019, there were no accumulated distributions unpaid attributable to other equity instrument holders of the Company. |
Reserves [member] | |
Statement [line items] | |
Share Capital, Other Equity Instruments and Reserves | 37 RESERVES Share premium RMB million Other reserves RMB million Unrealised gains/ (losses) from available- for-sale securities RMB million Other comprehensive income reclassifiable to profit or loss under the equity method RMB million Statutory reserve fund RMB million Discretionary reserve fund RMB million General reserve RMB million Exchange differences on translating foreign operations RMB million Other comprehensive income non- reclassifiable to profit or loss under the equity method RMB million Total RMB million (a) (b) (c) As at 1 January 2017 53,860 1,146 5,100 (738 ) 30,166 28,225 27,241 7 — 145,007 Other comprehensive income for the year — — (7,086 ) 21 — — — (847 ) — (7,912 ) Appropriation to reserves — — — — 3,218 1,927 3,300 — — 8,445 Others — 135 — — — — — — — 135 As at 31 December 201 7 53,860 1,281 (1,986 ) (717 ) 33,384 30,152 30,541 (840 ) — 145,675 As at 1 January 2018 53,860 1,281 (1,986 ) (717 ) 33,384 30,152 30,541 (840 ) — 145,675 Other comprehensive income for the year — — (3,426 ) 770 — — — 586 — (2,070 ) Appropriation to reserves — — — — 1,275 3,218 1,392 — — 5,885 Others — (197 ) — — — — — — — (197 ) As at 31 December 2018 53,860 1,084 (5,412 ) 53 34,659 33,370 31,933 (254 ) — 149,293 Effect of associates’ adoption of new accounting standards (Note 9) — — — 16 — — — — — 16 As at 1 January 2019 53,860 1,084 (5,412 ) 69 34,659 33,370 31,933 (254 ) — 149,309 Other comprehensive income for the year — — 34,006 687 — — — 230 (76 ) 34,847 Appropriation to reserves — — — — 5,857 1,275 5,955 — — 13,087 Other comprehensive income to retained earnings — — — — — — — — (86 ) (86 ) Others — 64 — — — — — — — 64 As at 31 December 2019 53,860 1,148 28,594 756 40,516 34,645 37,888 (24 ) (162 ) 197,221 (a) Pursuant to the relevant PRC laws, the Company appropriated 10% of its net profit under Chinese Accounting Standards (“CAS”) to statutory reserve which amounted to RMB5,857 million for the year ended 31 December 2019 (2018: RMB1,275 million, 2017: RMB3,218 million). (b) Approved at the Annual General Meeting in May 2019, the Company appropriated RMB1,275 million to the discretionary reserve fund for the year ended 31 December 2018 based on net profit under CAS (2018: RMB3,218 million, 2017: RMB1,927 million). (c) Pursuant to “ Financial Standards of Financial Enterprises - Implementation Guide Under related PRC law, dividends may be paid only out of distributable profits. Any distributable profits that are not distributed in a given year are retained and available for distribution in the subsequent years. |
Notes to the Consolidated State
Notes to the Consolidated Statement of Cash Flows | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Notes to the Consolidated Statement of Cash Flows | 38 NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS Changes in liabilities arising from financing activities Interest- bearing loans and borrowings RMB million Bonds payable RMB million Lease liabilities RMB million Securities sold under agreements to repurchase RMB million Other liability- payable to the third- party holders of consolidated structured entities RMB million Other liability- interest payable related to financing activities RMB million Total RMB million At 1 January 2017 16,170 37,998 — 81,088 5,488 813 141,557 Changes from financing 3,121 (38,000 ) — 6,228 764 (5,671 ) (33,558 ) Foreign exchange (497 ) — — — — — (497 ) Changes arising from — — — (7 ) — — (7 ) Interest expense — 2 — — — 4,985 4,987 At 31 December 2017 18,794 — — 87,309 6,252 127 112,482 At 1 January 2018 18,794 — — 87,309 6,252 127 112,482 Changes from financing cash flows 727 — — 104,832 3,155 (3,990 ) 104,724 Foreign exchange movement 629 — — — — — 629 Interest expense — — — — — 4,115 4,115 At 31 December 2018 20,150 — — 192,141 9,407 252 221,950 At 1 January 2019 20,150 — 2,185 192,141 9,407 252 224,135 Changes from financing cash flows (242 ) 34,988 (1,348 ) (73,552 ) 11,993 (3,072 ) (31,233 ) Foreign exchange movement 137 — — — — — 137 Changes arising from losing control of consolidated structured entities — — — (501 ) — — (501 ) New leases — — 2,239 — — — 2,239 Interest expense — 2 106 — — 4,147 4,255 Others — — (91 ) — — — (91 ) At 31 December 2019 20,045 34,990 3,091 118,088 21,400 1,327 198,941 |
Provisions and Contingencies
Provisions and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Provisions and Contingencies | 39 PROVISIONS AND CONTINGENCIES The following is a summary of the significant contingent liabilities: As at 31 December 2019 RMB million As at 31 Pending lawsuits 523 488 The Group involves in certain lawsuits arising from the ordinary course of business. In order to accurately disclose the contingent liabilities for pending lawsuits, the Group analysed all pending lawsuits case by case at the end of each interim and annual reporting period. A provision will only be recognised if management determines, based on third-party legal advice, that the Group has present obligations and the settlement of which is expected to result in an outflow of the Group’s resources embodying economic benefits, and the amount of such obligations could be reasonably estimated. Otherwise, the Group will disclose the pending lawsuits as contingent liabilities. As at 31 December 2019 and 2018, the Group had other contingent liabilities but disclosure of such was not practical because the amounts of liabilities could not be reliably estimated and were not material in aggregate. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Commitments | 40 COMMITMENTS (a) Capital commitments The Group had the following capital commitments relating to property development projects and investments: As at 31 RMB million As at 31 Contracted, but not provided for Investments 64,866 81,217 Property, plant and equipment 3,941 4,930 Total 68,807 86,147 (b) Operating lease commitments - as lessee The future minimum lease payments under non-cancellable As at 31 Not later than one year 1,049 Later than one year but not later than five years 1,373 Later than five years 52 Total 2,474 The Group adopted IFRS 16 as at the date of 1 January 2019. As a lessee, the Group measured, presented and disclosed its operating lease commitments as at 31 December 2019 based on IFRS 16 and did not restate the comparative information. Please refer to Note 2.1. (c) Operating lease commitments - as lessor The future minimum rentals receivable under non-cancellable As at 31 RMB million As at 31 Not later than one year 578 530 Later than one year but not later than five years 1,133 1,306 Later than five years 231 300 Total 1,942 2,136 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Disclosure of subsequent explanatory | 41 SUBSEQUENT EVENTS Since the outbreak of Novel Coronavirus (“COVID-19”) pneumonia in the beginning of 2020, the Group has completely implemented the arrangement of the prevention and control policies of “COVID-19” required by the government. While taking comprehensive measures that effectively curbed the spread of the disease, the Group took full advantage of its supporting and safeguarding function provided by the insurance business in response to the pandemic and played an active role in coping with the potential hazardous impact on business operations that could be brought by “COVID-19”. “COVID-19” made a major impact on general economic operation. At present, domestic situation of the containment of the pandemic is making continuous progress. With the premise that prevention and control measures have become normalized, the order of life and production is being restored at an increasing pace and the economic and social orders tend to stabilize. However, the “COVID-19” outbreak has further spread globally. If a global economy recession continues, the impact of the pandemic on domestic economy needs to be further evaluated and the volatility in the capital market might continue for a longer time. As of the issue date of these consolidated financial statements, the pandemic and the execution of containment policies towards it have brought certain challenges to the Group’s development of insurance business. Meanwhile, the stability of the investment portfolio as well as the investment income was also affected to some degree. The Group has taken various measures to actively respond and ensure the orderly operation of business. However, the long-term business and related financial impact of “COVID-19” on the Group cannot be reasonably estimated at this time. The Group will continue to closely focus on both global and domestic situation of “COVID-19”, concerning its prevention and control, and cope with the related impacts on the Company actively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Basis of preparation | 2.1 Basis of preparation The Group has prepared these consolidated financial statements in accordance with International Financial Reporting Standards (“IFRSs”), amendments to IFRSs and interpretations issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and the applicable disclosure requirements of the Hong Kong Companies Ordinance. The Group has prepared the consolidated financial statements under the historical cost convention, except for financial assets and liabilities at fair value through profit or loss, available for sale securities, insurance contract liabilities and certain property, plant and equipment at deemed cost as part of the Restructuring process. The preparation of financial statements in compliance with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3. 2.1.1 New accounting standards and amendments adopted by the Group for the first time for the financial year beginning on 1 January 2019 Standards/Amendments Content Effective for annual periods IFRS 16 Leases 1 January 2019 IAS 28 Amendments Long-term Interests in Associates and Joint Ventures 1 January 2019 IAS 19 Amendments Plan Amendment, Curtailment or Settlement 1 January 2019 IFRIC 23 Uncertainty over Income Tax Treatments 1 January 2019 Annual Improvements to IFRSs 2015-2017 Cycle Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 1 January 2019 IFRS 16 – Leases IFRS 16 supersedes IAS 17 Leases The Group has adopted IFRS 16 using the modified retrospective method of adoption with the date of initial application of 1 January 2019. Under this method, the standard has been applied retrospectively with the cumulative effect of initial adoption as an adjustment to the opening balance of retained earnings as at 1 January 2019, and the comparative information for 2018 was not restated and continues to be reported under IAS 17. New definition of a lease Under IFRS 16, at inception of a contract, an entity shall assess whether the contract is, or contains, a lease. A contract is, or contains a lease if the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. Control is conveyed where the customer has both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. The Group elected to use the transition practical expedient allowing the standard to be applied only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 at the date of initial application. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed. Therefore, the definition of a lease under IFRS 16 has been applied only to contracts entered or changed on or after 1 January 2019. At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease and non-lease component on the basis of their stand-alone prices. A practical expedient is available to a lessee, which the Group has adopted, not to separate non-lease components and to account for the lease and the associated non-lease components as a single lease component. As a lessee – Leases previously classified as operating leases As a lessee, the Group previously classified leases as either finance leases or operating leases based on the assessment of whether the lease transferred substantially all the rewards and risks of ownership of assets to the Group. Under IFRS 16, the Group applies a single approach to recognise and measure right-of-use assets and lease liabilities for all leases, except for two elective exemptions for leases of low-value assets (elected on a lease by lease basis) and short-term leases (elected by class of underlying asset). The Group has elected not to recognise right-of-use assets and lease liabilities for (i) leases of low-value assets; and (ii) leases, that at the commencement date, have a lease term of 12 months or less. Instead, the Group recognises the lease payments associated with those leases as an expense on a straight-line basis over the lease term. Lease liabilities as at 1 January 2019 were recognised based on the present value of the remaining lease payments, discounted using the incremental borrowing rate as at 1 January 2019. The right-of-use assets were measured at the amount of the lease liabilities, adjusted by the amount of any prepaid or accrued lease payments relating to the leases recognised in the statement of financial position immediately before 1 January 2019. All these assets were assessed for any impairment based on IAS 36 – Impairment of Assets The Group has used the following elective practical expedients when applying IFRS 16 as at 1 January 2019: • Applied the recognition exemptions for leases of low value assets and leases with lease term that ends within 12 months from the date of initial application; • Applied a single discount rate to a portfolio of leases with reasonably similar characteristics on the measurement of the lease liability; • Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application; • Used hindsight in determining the lease term where the contract contains options to extend or terminate the lease; • Relied on its assessment of whether leases are onerous immediately before the date of initial application. The Group adjusted the right-of-use asset at the date of initial application by the amount of any provision for onerous leases recognised in the statement of financial position immediately before the date of initial application. In addition to land use rights, the Group recognised other right-of-use assets of RMB2,555 million and lease liabilities of RMB2,185 million at the date of initial application. Compared to the end of 2018, after the relative adjustments, total assets and total liabilities at the group level as at 1 January 2019 both increased by RMB2,194 million. The reconciliation between the minimum unpaid lease payments of the operating leases disclosed in the Group’s financial statements for the year ended 31 December 2018, and the lease liabilities recognised in the consolidated statement of financial position at the date of initial application are as follows: RMB million Operating lease commitments as at 31 December 2018 2,474 Less: short-term leases, those leases with a remaining lease term less than 12 months from the date of initial application and leases of low-value assets (132 ) impact of discounting at the incremental borrowing rate as at 1 January 2019 (157 ) Lease liabilities as at 1 January 2019 2,185 The weighted average incremental borrowing rate the Group adopted as at 1 January 2019 in calculating the lease liabilities in the consolidated statement of financial position was 3.76%. Refer to Note 2.7 for relevant accounting policies. IAS 28 Amendments Long-term interests in associates and joint ventures In October 2017, the IASB issued the amendments to IAS 28 which indicates that an entity applies IFRS 9 to long-term interests in an associate or joint venture to which the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture (long-term interests). The amendments also clarify that for the entity that applies the temporary exemption from IFRS 9, IAS 39 applies to the long-term interests, and those entities are not required to restate prior periods to reflect the application of amendments. The amendments are effective for annual periods beginning on or after 1 January 2019. The Group’s accounting treatment in the previous years is in line with the amendments, thus there has been no impact on the Group’s consolidated financial statements as a result of the amendments. IAS 19 Amendments – Plan Amendment, Curtailment or Settlement In February 2018, the IASB issued the amendments to IAS 19 which addresses the accounting when a plan amendment, curtailment or settlement occurs during a reporting period. The amendments are effective for annual periods beginning on or after 1 January 2019 and apply retrospectively. The Group has no defined benefit plans. The amendments under IAS 19 have had no impact on the Group’s consolidated financial statements. The Group will adopt the amendments if such business occurs in the future. IFRIC 23 Uncertainty over Income Tax Treatments In June 2017, the IASB issued IFRIC Interpretation 23 which clarifies application of the recognition and measurement requirements in IAS 12 Income Taxes The Group’s accounting treatment in the previous years is in line with the clarification of the interpretation. The clarification has had no significant impact on the Group’s consolidated financial statements. Annual Improvements to IFRSs 2015-2017 Cycle – Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 In December 2017, the Annual Improvements 2015-2017 Cycle 2.1.2 New accounting standards and amendments that are effective but temporary exemption is applied by the Group for the financial year beginning on 1 January 2019 Standards/Amendments Content Effective for annual periods IFRS 9 Financial Instruments 1 January 2018 IFRS 9 – Financial Instruments In July 2014, the IASB issued the final version of IFRS 9, bringing together all phases of the financial instruments project to replace IAS 39 and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early adoption permitted. Based on the current assessment, the Group expects that the adoption of IFRS 9 will have a significant impact on the Group’s consolidated financial statements. The Group adopts the temporary exemption permitted in Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts Classification and measurement IFRS 9 requires that the Group classifies debt instruments based on the combined effect of application of business models (hold to collect contractual cash flows, hold to collect contractual cash flows and sell financial assets or other business models) and contractual cash flow characteristics (solely payments of principal and interest on the principal amount outstanding or not). Debt instruments not giving rise to cash flows that are solely payments of principal and interest on the principal amount outstanding would be measured at fair value through profit or loss. Other debt instruments giving rise to cash flows that are solely payments of principal and interest on the principal amount outstanding would be measured at amortised cost, fair value through other comprehensive income (“FVOCI”) or fair value through profit or loss, based on their respective business models. The Group analysed the contractual cash flow characteristics of financial assets as at 31 December 2019 and made relevant disclosures in Note 33. Equity instruments would generally be measured at fair value through profit or loss unless the Group elects to measure at FVOCI for certain equity investments not held for trading. This will result in unrealised gains and losses on equity instruments currently classified as available-for-sale securities being recorded in income going forward. Currently, these unrealised gains and losses are recognised in other comprehensive income (“OCI”). If the Group elects to record equity investments at FVOCI, gains and losses would never be recognised in income except for the received dividends which do not represent a recovery of part of the investment cost. Impairment IFRS 9 replaces the “incurred loss” model with the “expected credit loss” model which is designed to include forward-looking information. The Group is in the process of developing and testing the key models required under IFRS 9 and analysing the impact on the expected loss provision; the Group believed that the provision for debt instruments of the Group under the “expected credit loss” model would be larger than that under the previous “incurred loss” model. Hedge accounting The Group does not apply the hedge accounting currently, so the Group expects that the new hedge accounting model under IFRS 9 will have no impact on the Group’s consolidated financial statements. 2.1.3 New accounting standards and amendments that are not yet effective and have not been early adopted by the Group for the financial year beginning on 1 January 2019 Standards/Amendments Content Effective for annual periods beginning on or after IFRS 3 Amendments Definition of a Business 1 January 2020 IAS 1 and IAS 8 Amendments Definition of Material 1 January 2020 IFRS 9, IAS 39 and IFRS 7 Amendments Interest Rate Benchmark Reform 1 January 2020 IFRS 17 Insurance Contracts 1 January 2021 IFRS 10 and IAS 28 Amendments Sale or Contribution of Assets between an Investor and its Associate or Joint Venture No mandatory effective date yet The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. IFRS 3 Amendments – Definition of a business In October 2018, the IASB issued amendments to the definition of a business in IFRS 3 Business Combinations. IAS 1 and IAS 8 Amendments – Definition of Material In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements Accounting Policies, Changes in Accounting Estimates and Errors IFRS 9, IAS 39 and IFRS 7 Amendments – Interest Rate Benchmark Reform In September 2019, the IASB issued the amendments to IFRS 9 Financial Instruments Financial Instruments: Recognition and Measurement Financial Instruments: Disclosures IFRS 17 – Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts Insurance Contracts In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies for measurement purposes, IFRS 17 provides a comprehensive model (the general model) for insurance contracts, supplemented by the variable fee approach for contracts with direct participation features and the premium allocation approach mainly for short-duration which typically applies to certain non-life insurance contracts. The main features of the new accounting model for insurance contracts are as follows: • The fulfilment cash flows including the expected present value of future cash flows and explicit risk adjustment, remeasured every reporting period; • A contractual service margin represents the unearned profitability of the insurance contracts and is recognised in profit or loss over the coverage period; • Certain changes in the expected present value of future cash flows are adjusted against the contractual service margin and thereby recognised in profit or loss over the remaining coverage period; • The effect of changes in discount rates will be reported in either profit or loss or OCI, determined by an accounting policy choice; • The recognition of insurance revenue and insurance service expenses in the statement of comprehensive income based on the concept of services provided during the period; • Amounts that the policyholder will always receive, regardless of whether an insured event happens (non-distinct investment components), are not presented in the statement of comprehensive income, but are recognised directly in the statement of financial position; • Insurance services results are presented separately from the insurance finance income or expense; • Extensive disclosures to provide information on the recognised amounts from insurance contracts and the nature and extent of risks arising from these contracts. IFRS 17 is effective for annual reporting periods beginning on or after 1 January 2021. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. Retrospective application is required, with comparative figures required. However, if full retrospective application for a group of insurance contracts is impracticable, the entity is required to choose either the modified retrospective approach or the fair value approach. In March 2020, the IASB decided to defer the effective date for IFRS 17 by two years to reporting periods beginning on or after 1 January 2023. The IASB also decided to extend the exemption currently in place for qualifying insurers regarding the application of IFRS 9, meaning that they could apply both standards for the first time to reporting periods beginning on or after 1 January 2023. As at the approval date of the consolidated financial statements, the amendments to IFRS 17 have not yet been issued by the IASB. The Group is currently assessing the impact of the standard upon adoption. IFRS 10 and IAS 28 Amendments – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Amendments to IFRS 10 and IAS 28 address an inconsistency between the requirements in IFRS 10 and IAS 28 in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The amendments require a full recognition of a gain or loss when the sale or contribution of assets between an investor and its associate or joint venture constitutes a business. For a transaction involving assets that do not constitute a business, a gain or loss resulting from the transaction is recognised in the investor’s profit or loss only to the extent of the unrelated investor’s interest in that associate or joint venture. The IASB has deferred the effective date of these amendments indefinitely, but an entity that early adopts the amendments must apply them prospectively. The Group will apply these amendments when they become effective. |
Consolidation | 2.2 Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries for the year ended 31 December 2019. Subsidiaries are those entities which are controlled by the Group (including the structured entities controlled by the Group). Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: • power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee); • exposure, or rights, to variable returns from its involvement with the investee; and • the ability to use its power over the investee to affect its returns. When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • the contractual arrangement with the other vote holders of the investee; • rights arising from other contractual arrangements; and • the Group’s voting rights and potential voting rights. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Profit or loss and each component of OCI are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full upon consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: • derecognises the assets (including goodwill) and liabilities of the subsidiary; • derecognises the carrying amount of any non-controlling interests; • derecognises the cumulative translation differences recorded in equity; • recognises the fair value of the consideration received; • recognises the fair value of any investment retained; • recognises any surplus or deficit in profit or loss; and • reclassifies the Group’s share of components previously recognised in OCI to profit or loss or retained earnings, as appropriate, as if the Group had directly disposed of the related assets or liabilities. The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interest issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets. The excess of the aggregate of the consideration transferred, the fair value of any non-controlling interest in the acquiree, and the fair value of any previous equity interest in the acquiree at the acquisition date over the fair value of the net identifiable assets acquired and liabilities assumed is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed, and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. If there is any indication that goodwill is impaired, recoverable amount is estimated and the difference between carrying amount and recoverable amount is recognised as an impairment charge. Impairment losses on goodwill are not reversed in subsequent periods. Gains or losses on the disposal of an entity take into consideration the carrying amount of goodwill relating to the entity sold. The investments in subsidiaries are accounted for only in the Company’s statement of financial position at cost less impairment. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments. Cost also includes direct attributable costs of investment. The results of subsidiaries are accounted for by the Company on the basis of dividends received and receivable. Transactions with non-controlling interests The Group treats transactions with non-controlling interests that do not result in loss of controls as equity transactions. For shares purchased from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposal of shares to non-controlling interests are also recorded in equity. When the Group ceases to have control or significant influence, any retained interest in the entity is re-measured to its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in OCI in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in OCI are reclassified to profit or loss. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in OCI is reclassified to profit or loss as appropriate. |
Associates and joint ventures | 2.3 Associates and joint ventures Associates are entities over which the Group has significant influence, generally accompanying a shareholding of between 20% and 50% of the voting rights of the investee. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. Joint ventures are the type of joint arrangements whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Investments in associates and joint ventures are accounted for using the equity method of accounting and are initially recognised at cost. The Group’s share of post-acquisition profit or loss of its associates and joint ventures is recognised in net profit, and its share of post-acquisition movements in OCI is recognised in the consolidated statement of comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associate or joint venture equals or exceeds its interest in the associate or joint venture, including any other unsecured receivables, the Group does not recognise further losses unless it has obligations to make payments on behalf of the associate or joint venture. Unrealised gains on transactions between the Group and its associates or joint ventures are eliminated to the extent of the Group’s interests in the associates or joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Associates and joint ventures’ accounting policies have been changed where necessary to ensure consistency with the policies adopted by the Group. Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of acquired associates or joint ventures at the date of acquisition. Goodwill on acquisitions of associates and joint ventures is included in investments in associates and joint ventures and is tested for impairment as part of the overall balance. Impairment losses on goodwill are not reversed. Gains or losses on the disposal of an entity take into consideration the carrying amount of goodwill relating to the entity sold. The Group determines at each reporting date whether there is any objective evidence that the investments in associates and joint ventures are impaired. If this is the case, an impairment loss is recognised for the amount by which the investment’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the investment’s fair value less costs of disposal and value in use. The impairment of investments in the associates and joint ventures is reviewed for possible reversal at each reporting date. The investments in associates and joint ventures are stated at cost less impairment in the Company’s statement of financial position. The results of associates and joint ventures are accounted for by the Company on the basis of dividends received and receivable. |
Segment reporting | 2.4 Segment reporting The Group’s operating segments are presented in a manner consistent with the internal management reporting provided to the operating decision maker - president office for deciding how to allocate resources and for assessing performance. Operating segment refers to the segment within the Group that satisfies the following conditions: i) the segment generates income and incurs costs from daily operating activities; ii) management evaluates the operating results of the segment to make resource allocation decision and to evaluate the business performance; and iii) the Group can obtain relevant financial information of the segment, including financial condition, operating results, cash flows and other financial performance indicators. |
Foreign currency translation | 2.5 Foreign currency translation The Company’s functional currency is RMB. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. The reporting currency of the consolidated financial statements of the Group is RMB. Transactions in foreign currencies are translated at the exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates ruling at the end of the reporting period. Exchange differences arising in these cases are recognised in net profit. |
Property, plant and equipment | 2.6 Property, plant and equipment Property, plant and equipment, are stated at historical costs less accumulated depreciation and any accumulated impairment losses, except for those acquired prior to 30 June 2003, which are stated at deemed cost less accumulated depreciation and any accumulated impairment losses. The historical costs of property, plant and equipment comprise its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Expenditure incurred after terms of property, plant and equipment have been put into operation, such as repairs and maintenance, is normally charged to the statement of comprehensive income in the period in which it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalised in the carrying amount of the assets as a replacement. Where significant parts of property, plant and equipment are required to be replaced at intervals, the Group recognises such parts as individual assets with specific useful lives and depreciates them accordingly. Depreciation Depreciation is computed on a straight-line b a e Estimated useful lives Buildings 15 to 35 years Office equipment, furniture and fixtures 3 to 11 years Motor vehicles 4 to 8 years Leasehold improvements Over the shorter of the remaining term of the lease and the useful lives The residual values, depreciation method and useful lives are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items of property, plant and equipment. Assets under construction mainly represent buildings under construction, which are stated at cost less any impairment losses and are not depreciated, except for those acquired prior to 30 June 2003, which are stated at deemed cost less any accumulated impairment losses. Cost comprises the direct costs of construction and capitalised borrowing costs on related borrowed funds during the period of construction. Assets under construction are reclassified to the appropriate category of property, plant and equipment, investment properties or other assets when completed and ready for use. Impairment and gains or losses on disposals Property, plant and equipment are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised in net profit for the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of an asset’s net selling price and value in use. The gain or loss on disposal of an item of property, plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant asset, and is recognised in net profit. |
Leases | 2.7 Leases (i) Applicable from 1 January 2019 At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of a time, the Group assesses whether, throughout the period of use, the lessee has the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. As a lessee Initial measurement At the commencement date of the lease, the Group recognises right-of-use assets representing the right to use the leased assets, including buildings and land use rights, etc. The Group measures the lease liability at the present value of the lease payments that are not paid at that date, except for short-term leases and leases of low-value assets. In calculating the present value of the lease payments, the lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Group uses its own incremental borrowing rate. The lease term is the non-cancellable period of a lease when the Group has the right to use lease assets. When the Group has an option to extend a lease and is reasonably certain to exercise that option to extend a lease, the lease term also comprises the periods covered by the option to extend the lease. When the Group has an option to terminate the lease and is reasonably certain not to exercise that option, the lease term also comprises the periods covered by the option to terminate the lease. The Group reassesses whether it is reasonably certain to exercise an extension option, to exercise a purchase option or not to exercise a termination option, upon the occurrence of either a significant event or a significant change in circumstances that are within the control of the Group and affects whether the Group is reasonably certain to exercise the commensurate options. Subsequent measurement The Group applies the straight-line method in depreciating the right-of-use assets. If it is reasonably certain that ownership of a leased asset transfers to the Group at the end of the lease term, the leased asset is depreciated under the remaining useful life of the asset. If it cannot be reasonably determined that ownership of a leased asset transfers to the Group at the end of the lease term, the Group depreciates the right-of-use asset from the commencement date to the earlier of the end of the lease term or the end of the useful life of the right-of-use asset. The Group uses a constant periodic rate of interest to calculate interest on the lease liability in each period during the lease term and recognises the interest in profit or loss. Variable lease payments not included in the measurement of the lease liability are recognised in profit or loss in the period in which the event or condition that triggers the payment occurs. After the commencement date of a lease, when there is a change in in-substance fixed payments, a change in the amounts expected to be payable under a residual value guarantee, a change in future lease payments resulting from a change in an index or a rate used to determine those payments, a change in the assessment or actual exercise situation of a purchase option, an extension option or a termination option, the Group uses the changed present value of lease payments to remeasure the lease liability. If the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Group recognises any remaining amount of the remeasurement in profit or loss. The Group assesses whether there is any indication that a right-of-use asset may be impaired at the end of reporting period. If any such indication exists, the Group performs the impairment test. An impairment loss is recognised in net profit for the amount by which the carrying amount of the right-of-use asset exceeds its recoverable amount, which is the higher of the right-of-use asset’s net selling price and value in use. As a lessor At the commencement date of the lease, leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss. (ii) Applicable before 1 January 2019 As for leased assets, leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental expenses of operating leases are recognised in the cost of assets or profit or loss on a straight-line basis. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss. |
Investment properties | Investment properties are interests in land use rights and buildings that are held to earn rental income and/or for capital appreciation, rather than for the supply of services or for administrative purposes. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and any impairment loss. Depreciation is computed on the straight-line basis over the estimated useful lives. The estimated useful lives of investment properties are 15 to 35 years. Overseas investment properties, that are held by the Group in the form of property ownership, equity investment, or other forms, have expected useful lives not longer than 50 years, determined based on the usage in their locations. The useful lives and depreciation method are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from the individual investment properties. An investment property is derecognised when either it has been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognised in the statement of comprehensive income in the year of retirement or disposal. A transfer to, or from, an investment property is made when, and only when, there is evidence of a change in use. |
Financial assets | 2.9 Financial assets 2.9.a Classification The Group classifies its financial assets into the following categories: securities at fair value through profit or loss, held-to-maturity securities, loans and receivables and available-for-sale securities. Management determines the classification of its financial assets at initial recognition which depends on the purpose for which the assets are acquired. The Group’s investments in securities fall into the following four categories: (i) Securities at fair value through profit or loss This category has two sub-categories: securities held for trading and those designated as at fair value through profit or loss at inception. Securities are classified as held for trading at inception if acquired principally for the purpose of selling in the short-term or if they form part of a portfolio of financial assets in which there is evidence of taking short-term profit. The Group may classify other financial assets as at fair value through profit or loss if they meet the criteria in IAS 39 and designated as such at inception. (ii) Held-to-maturity securities Held-to-maturity securities are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group has the positive intention and ability to hold to maturity and do not meet the definition of loans and receivables nor designated as available-for-sale securities or securities at fair value through profit or loss. (iii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than those that the Group intends to sell in the short-term or held as available-for-sale. Loans and receivables mainly comprise term deposits, loans, securities purchased under agreements to resell, accrued investment income and premium receivables as presented separately in the statement of financial position. (iv) Available-for-sale securities Available-for-sale securities are non-derivative financial assets that are either designated in this category or not classified in any of the other categories. 2.9.b Recognition and measurement Purchase and sale of investments are recognised on the trade date, when the Group commits to purchase or sell assets. Investments are initially recognised at fair value plus, in the case of all financial assets not carried at fair value through profit or loss, transaction costs that are directly attributable to their acquisition. Investments are derecognised when the rights to receive cash flows from the investments have expired or when they have been transferred and the Group has also transferred substantially all risks and rewards of ownership. Securities at fair value through profit or loss and available-for-sale securities are carried at fair value. Equity investments that do not have a quoted price in an active market and whose fair value cannot be reliably measured are carried at cost, net of allowance for impairments. Held-to-maturity securities are carried at amortised cost using the effective interest method. Investment gains and losses on sales of securities are determined principally by specific identification. Realised and unrealised gains and losses arising from changes in the fair value of the securities at fair value through profit or loss category, and the change of fair value of available-for-sale debt securities due to foreign exchange impact on the amortised cost are included in net profit in the period in which they arise. The remaining unrealised gains and losses arising from changes in the fair value of available-for-sale securities are recognised in OCI. When securities classified as available-for-sale securities are sold or impaired, the accumulated fair value adjustments are included in net profit as realised gains on financial assets. Term deposits primarily represent traditional bank deposits which have fixed maturity dates and are stated at amortised cost. Loans are carried at amortised cost, net of allowance for impairment. The Group purchases securities under agreements to resell substantially identical securities. These agreements are classified as secured loans and are recorded at amortised cost, i.e., their costs plus accrued interests at the end of the reporting period, which approximates fair value. The amounts advanced under these agreements are reflected as assets in the consolidated statement of financial position. The Group does not take physical possession of securities purchased under agreements to resell. Sale or transfer of the securities is not permitted by the respective clearing house on which they are registered while the lent capital is outstanding. In the event of default by the counterparty, the Group has the right to the underlying securities held by the clearing house. 2.9.c Impairment of financial assets other than securities at fair value through profit or loss Financial assets other than those accounted for as at fair value through profit or loss are adjusted for impairment, where there are declines in value that are considered to be impairment. In evaluating whether a decline in value is an impairment for these financial assets, the Group considers several factors including, but not limited to, the following: • significant financial difficulty of the issuer or debtor; • a breach of contract, such as a default or delinquency in payments; • it becomes probable that the issuer or debtor will enter into bankruptcy or other financial reorganisation; and • the disappearance of an active market for that financial asset because of financial difficulties. In evaluating whether a decline in value is impairment for equity securities, the Group also considers the extent or the duration of the decline. The quantitative factors include the following: • the market price of the equity securities was more than 50% below their cost at the reporting date; • the market price of the equity securities was more than 20% below their cost for a period of at least six months at the reporting date; and • the market price of the equity securities was below their cost for a period of more than one year (including one year) at the reporting date. When the decline in value is considered impairment, held-to-maturity debt securities are written down to their present value of estimated future cash flows discounted at the securities’ effective interest rates, available-for-sale debt securities and equity securities are written down to their fair value, and the change is recorded in net realised gains on financial assets in the period the impairment is recognised. The impairment loss is reversed through net profit if in a subsequent period the fair value of a debt security increases and the increase can be objectively related to an event occurring after the impairment loss was recognised through net profit. The impairment losses recognised in net profit on equity instruments are not reversed through net profit. |
Fair value measurement | 2.10 Fair value measurement The Group measures financial instruments, such as securities at fair value through profit or loss and available-for-sale securities, at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement of assets and liabilities is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • in the principal market for the asset or liability, or • in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group at the measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised within the fair value hierarchy, described in Notes 4.4, 8 and 11 based on the lowest level input that is significant to the fair value measurement as a whole. For assets and liabilities that are measured at fair value on a recurring basis, the Group determines whether transfers have occurred between each level in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. |
Cash and cash equivalents | 2.11 Cash and cash equivalents Cash amounts represent cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments with original maturities of 90 days or less, whose carrying value approximates fair value. |
Insurance contracts and investment contracts | 2.12 Insurance contracts and investment contracts 2.12.1 Classification The Group issues contracts that transfer insurance risk or financial risk or both. The contracts issued by the Group are classified as insurance contracts and investment contracts. Insurance contracts are those contracts that transfer significant insurance risk. They may also transfer financial risk. Investment contracts are those contracts that transfer financial risk without significant insurance risk. A number of insurance and investment contracts contain a discretionary participating feature (“DPF”). This feature entitles the policyholders to receive additional benefits or bonuses that are, at least in part, at the discretion of the Group. 2.12.2 Insurance contracts 2.12.2.a Recognition and measurement (i) Short-term insurance contracts Premiums from the sale of short duration accident and health insurance products are recorded when written and are accreted to earnings on a pro-rata basis over the term of the related policy coverage. Reserves for short duration insurance products consist of unearned premium reserve and expected claims and claim adjustment expenses reserve. Actual claims and claim adjustment expenses are charged to net profit as incurred. The unearned premium reserve represents the portion of the premiums written net of certain acquisition costs relating to the unexpired terms of coverage. Reserves for claims and claim adjustment expenses consist of the reserves for reported and unreported claims and reserves for claims expenses with respect to insured events. In developing these reserves, the Group considers the nature and distribution of the risks, claims cost development, and experiences in deriving the reasonable estimated amount and the applicable margins. The methods used for reported and unreported claims include the case-by-case estimation method, average cost per claim method, chain ladder method, etc. The Group calculates the reserves for claims expenses based on the reasonable estimates of the future payments for claims expenses. (ii) Long-term insurance contracts Long-term insurance contracts include whole life insurance, term life insurance, endowment insurance and annuity policies with significant life contingency risk. Premiums are recognised as revenue when due from policyholders. The Group uses the discounted cash flow method to estimate the reserve of long-term insurance contracts. The reserve of long-term insurance contracts consists of a reasonable estimate of liability, a risk margin and a residual margin. The long-term insurance contract liabilities are calculated using various assumptions, including assumptions on mortality rates, morbidity rates, lapse rates, discount rates, and expense assumptions, and based on the following principles: (a) The reasonable estimate of liability for long-term insurance contracts is the present value of reasonable estimates of future cash outflows less future cash inflows. The expected future cash inflows include cash inflows of future premiums arising from the undertaking of insurance obligations, with consideration of decrement mostly from death and surrenders. The expected future cash outflows are cash outflows incurred to fulfil contractual obligations, consisting of the following: • guaranteed benefits based on contractual terms, including payments for deaths, disabilities, diseases, survivals, maturities and surrenders; • additional non-guaranteed benefits, such as policyholder dividends; and • reasonable expenses incurred to manage insurance contracts or to process claims, including maintenance expenses and claim settlement expenses. Future administration expenses are included in the maintenance expenses. Expenses are determined based on expense analysis with consideration of future inflation and the Group’s expense management control. On each reporting date, the Group reviews the assumptions for reasonable estimates of liability and risk margins, with consideration of all available information, taking into account the Group’s historical experience and expectation of future events. Changes in assumptions are recognised in net profit. Assumptions for the amortisation of residual margin are locked in at policy issuance and are not adjusted at each reporting date. (b) Margin has been taken into consideration while computing the reserve of insurance contracts, measured separately and recognised in net profit in each period over the life of the contracts. At the inception of the contracts, the Group does not recognise Day 1 gain, whereas on the other hand, Day 1 loss is recognised in net profit immediately. Margin comprises risk margin and residual margin. Risk margin is the reserve accrued to compensate for the uncertain amount and timing of future cash flows. At the inception of the contract, the residual margin is calculated net of certain acquisition costs, mainly consist of underwriting and policy acquisition costs, by the Group representing Day 1 gain and will be amortised over the life of the contracts. For insurance contracts of which future returns are affected by investment yields of corresponding investment portfolios, their related residual margins are amortised based on estimated future participating dividends payable to policyholders. For insurance contracts of which future returns are not affected by investment yields of corresponding investment portfolios, their related residual margins are amortised based on sum assured of outstanding policies. The subsequent measurement of the residual margin is independent from the reasonable estimate of future discounted cash flows and risk margin. The assumption changes have no effect on the subsequent measurement of the residual margin. (c) The Group has considered the impact of time value on the reserve calculation for insurance contracts. (iii) Universal life contracts and unit-linked contracts Universal life contracts and unit-linked contracts are unbundled into the following components: • insurance components • non-insurance components The insurance components are accounted for as insurance contracts; and the non-insurance components are accounted for as investment contracts (Note 2.12.3), which are stated in the investment contract liabilities. 2.12.2.b Liability adequacy test The Group assesses the adequacy of insurance contract reserves using the current estimate of future cash flows with available information at the end of each reporting period. If that assessment shows that the carrying amount of its insurance liabilities (less related intangible assets, if applicable) is inadequate in light of the estimated future cash flows, the insurance contract reserves will be adjusted accordingly, and any changes of the insurance contract liabilities will be recognised in net profit. 2.12.2.c Reinsurance contracts held Contracts with reinsurers under which the Group is compensated for losses on one or more contracts issued by the Group and that meet the classification requirements for insurance contracts are classified as reinsurance contracts held. Contracts with reinsurers that do not meet these classification requirements are classified as financial assets. Insurance contracts entered into by the Group under which the contract holder is another insurer (inwards reinsurance) are included with insurance contracts. The benefits to which the Group is entitled under its reinsurance contracts held are recognised as reinsurance assets. Amounts recoverable from or due to reinsurers are measured consistently with the amounts associated with the reinsured insurance contracts and in accordance with the terms of each reinsurance contract. Reinsurance liabilities are primarily premiums payable for reinsurance contracts and are recognised as expenses when due. The Group assesses its reinsurance assets for impairment as at the end of reporting period. If there is objective evidence that the reinsurance asset is impaired, the Group reduces the carrying amount of the reinsurance asset to its recoverable amount and recognises that impairment loss in net profit. 2.12.3 Investment contracts For investment contracts with or without DPF, the Company’s policy fee income mainly consists of acquisition cost and various fees (handling fees and management fees, etc.) over the period of which the service is provided. Policy fee income net of certain acquisition cost is amortised over the expected life of the contracts by period and recognised in revenue. Except for unit-linked contracts, of which the liabilities are carried at fair value, the liabilities of investment contracts are carried at amortised cost. 2.12.4 DPF in long-term insurance contracts and investment contracts DPF is contained in certain long-term insurance contracts and investment contracts. These contracts are collectively called participating contracts. The Group is obligated to pay to the policyholders of participating contracts as a group at the higher of 70% of accumulated surplus available and the rate specified in the contracts. The accumulated surplus available mainly arises from net investment income and gains and losses arising from the assets supporting these contracts. To the extent unrealised gains or losses from available-for-sale securities are attributable to policyholders, shadow adjustments are recognised in OCI. The surplus owed to policyholders is recognised as policyholder dividend payable whether it is declared or not. The amount and timing of distribution to individual policyholders of participating contracts are subject to future declarations by the Group. |
Financial liabilities at fair value through profit or loss | 2.13 Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss are the portions owned by the external investors in the consolidated structured entities (open-ended funds). Such financial liabilities are designated at fair value upon initial recognition, and all realised or unrealised gains or losses are recognised in net profit. |
Securities sold under agreements to repurchase | 2.14 Securities sold under agreements to repurchase The Group retains substantially all the risk and rewards of ownership of securities sold under agreements to repurchase which generally mature within 180 days from the transaction date. Therefore, securities sold under agreements to repurchase are classified as secured borrowings. The Group may be required to provide additional collateral based on the fair value of the underlying securities. Securities sold under agreements to repurchase are recorded at amortised cost, i.e., their cost plus accrued interest at the end of the reporting period. It is the Group’s policy to maintain effective control over securities sold under agreements to repurchase which includes maintaining physical possession of the securities. Accordingly, such securities continue to be carried on the consolidated statement of financial position. |
Bonds payable | 2.15 Bonds payable Bonds payable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method. Amortised cost is calculated by taking into account any discount or premium at acquisition and transaction costs. |
Derivative instruments | 2.16 Derivative instruments Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at their fair value. The resulting gain or loss of derivative financial instruments is recognised in net profit. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative. Embedded derivatives that are not closely related to their host contracts and meet the definition of a derivative are separated and fair valued through profit or loss. The Group does not separately measure embedded derivatives that meet the definition of an insurance contract or embedded derivatives that are closely related to host insurance contracts including embedded options to surrender insurance contracts for a fixed amount (or an amount based on a fixed amount and an interest rate). |
Employee benefits | 2.17 Employee benefits Pension benefits Full-time employees of the Group are covered by various government-sponsored pension plans under which the employees are entitled to a monthly pension based on certain formulae. These government agencies are responsible for the pension liability to these employees upon retirement. The Group contributes on a monthly basis to these pension plans. In addition to the government-sponsored pension plans, the Group established an employee annuity fund pursuant to the relevant laws and regulations in the PRC, whereby the Group is required to contribute to the schemes at fixed rates of the employees’ salary costs. Contributions to these plans are expensed as incurred. Under these plans, the Group has no legal or constructive obligation for retirement benefit beyond the contributions made. Housing benefits All full-time employees of the Group are entitled to participate in various government-sponsored housing funds. The Group contributes on a monthly basis to these funds based on certain percentages of the salaries of the employees. The Group’s liability in respect of these funds is limited to the contributions payable in each year. Stock appreciation rights Compensation under the stock appreciation rights is measured based on the fair value of the liabilities incurred and is expensed over the vesting period. Valuation techniques including option pricing models are used to estimate fair value of relevant liabilities. The liability is re-measured at the end of each reporting period to its fair value until settlement. Fair value changes in the vesting period are included in administrative expenses and changes after the vesting period are included in net fair value gains through profit or loss in net profit. The related liability is included in other liabilities. |
Share capital | 2.18 Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of equity instruments are shown in equity as a deduction, net of tax, from the proceeds. |
Other equity instruments | 2.19 Other equity instruments Other equity instruments are Core Tier 2 Capital Securities issued by the Group. These securities contain no contractual obligation to deliver cash or another financial asset; or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the Group; or to be settled in the Group’s own equity instruments. Therefore, the Group classifies these securities as other equity instruments. Fees, commissions and other transaction costs of these securities’ issuance are deducted from equity. The distributions of the securities are recognised as profit distribution at the time of declaration. |
Revenue recognition | 2.20 Revenue recognition Turnover of the Group represents the total revenues which include the following: Premiums Premiums from long-term insurance contracts are recognised as revenue when due from the policyholders. Premiums from the sale of short duration accident and health insurance products are recorded when written and are accreted to earnings on a pro-rata basis over the term of the related policy coverage. Policy fee income The policy fee income for investment contracts mainly consists of acquisition costs and various fees (handling fees and management fees, etc.) over the period of which the service is provided. Policy fee income net of certain acquisition costs is amortised over the expected life of the contracts and recognised as other income. Investment income Investment income comprises interest income from term deposits, cash and cash equivalents, debt securities, securities purchased under agreements to resell, loans and dividend income from equity securities. Interest income is recorded on an accrual basis using the effective interest rate method. Dividend income is recognised when the right to receive dividend payment is established. |
Finance costs | 2.21 Finance costs Interest expenses for bonds payable, securities sold under agreements to repurchase, interest-bearing loans, borrowings and lease liabilities are recognised within finance costs in net profit using the effective interest rate method. |
Current and deferred income taxation | 2.22 Current and deferred income taxation Income tax expense for the period comprises current and deferred tax. Income tax is recognised in net profit, except to the extent that it relates to items recognised directly in OCI where the income tax is recognised in OCI. Current income tax assets and liabilities for the current period are calculated on the basis of the tax laws enacted or substantively enacted at the end of each reporting period in the jurisdictions where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken with respect to situations in which applicable tax regulations are subject to interpretation. Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Substantively enacted tax rates are used in the determination of deferred income tax. Deferred income tax is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not be reversed in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Conversely, previously unrecognised deferred tax assets are reassessed by the end of each reporting period and are recognised to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the end of the reporting period. Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income tax levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. |
Provisions and contingencies | 2.23 Provisions and contingencies Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. It can also be a present obligation arising from past events that is not recognised because it is not probable that outflow of economic resources will be required, or the amount of obligation cannot be measured reliably. A contingent liability is not recognised in the consolidated statement of financial position but is disclosed in the notes to the consolidated financial statements. When a change in the probability of an outflow occurs so that such outflow is probable and can be reliably measured, it will then be recognised as a provision. |
Dividend distribution | 2.24 Dividend distribution Dividend distribution to the Company’s equity holders is recognised as a liability in the Group’s consolidated financial statements in the year in which the dividends are approved by the Company’s equity holders. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Disclosure of Reconciliation Between For Operating Lease Commitments And Lease Liabilities | RMB million Operating lease commitments as at 31 December 2018 2,474 Less: short-term leases, those leases with a remaining lease term less than 12 months from the date of initial application and leases of low-value assets (132 ) impact of discounting at the incremental borrowing rate as at 1 January 2019 (157 ) Lease liabilities as at 1 January 2019 2,185 |
Estimated Useful Lives for Depreciation Purposes of Property, Plant and Equipment | Estimated useful lives Buildings 15 to 35 years Office equipment, furniture and fixtures 3 to 11 years Motor vehicles 4 to 8 years Leasehold improvements Over the shorter of the remaining term of the lease and the useful lives |
Risk Management (Tables)
Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [line items] | |
Major Products of Long-term Insurance Contracts | The table below presents the Group’s major products of long-term insurance contracts: Product name For the year ended 31 December 2019 2018 RMB million % RMB million % Premiums of long-term insurance contracts Xin Fu Ying Jia Annuity (a) 37,024 7.44% 38,397 7.99% Xin Xiang Jin Sheng Annuity (Type A) (b) 36,345 7.30% 257 0.05% Xin Ru Yi Annuity (c) 21,276 4.28% 21,960 4.57% Kang Ning Whole Life (d) 19,701 3.96% 20,667 4.30% Hong Ying Participating Endowment (e) 558 0.11% 1,448 0.30% Others (f) 382,666 76.91% 397,767 82.79% Total 497,570 100.00% 480,496 100.00% Insurance benefits of long-term insurance contracts Xin Fu Ying Jia Annuity (a) 1,799 2.25% 1,847 1.37% Xin Xiang Jin Sheng Annuity (Type A) (b) 12 0.01% — — Xin Ru Yi Annuity (c) 3,512 4.38% 3,526 2.62% Kang Ning Whole Life (d) 5,119 6.39% 4,663 3.47% Hong Ying Participating Endowment (e) 7,906 9.87% 28,741 21.38% Others (f) 61,776 77.10% 95,621 71.16% Total 80,124 100.00% 134,398 100.00% As at 31 December 2019 As at 31 December 2018 RMB million % RMB million % Liabilities of long-term insurance contracts Xin Fu Ying Jia Annuity (a) 86,876 3.45% 52,440 2.39% Xin Xiang Jin Sheng Annuity (Type A) (b) 27,554 1.09% 193 0.01% Xin Ru Yi Annuity (c) 90,379 3.58% 71,571 3.27% Kang Ning Whole Life (d) 309,519 12.28% 289,230 13.21% Hong Ying Participating Endowment (e) 35,403 1.40% 42,969 1.96% Others (f) 1,971,600 78.20% 1,733,391 79.16% Total 2,521,331 100.00% 2,189,794 100.00% (a) Xin Fu Ying Jia Annuity is an annuity insurance contract with the options for regular premium of 3 years, 5 years or 10 years. Its insured period extends from the effective date of Xin Fu Ying Jia Annuity to the corresponding date when policyholders reach the age of 88. This product is applicable to healthy policyholders between 28-day-old 70-year-old. 88-year-old, (b) Xin Xiang Jin Sheng Annuity (Type A) is an annuity insurance contract with the options for regular premium of 3 years and 5 years paid annually or monthly. Its insured period is 15 years. This product is applicable to healthy policyholders between 28-day-old 65-year-old. (c) Xin Ru Yi Annuity is an annuity insurance contract with the options for regular premium of 3 years, 5 years or 10 years. Its insured period extends from the effective date of Xin Ru Yi Annuity to the corresponding date when policyholders reach the age of 80. This product is applicable to healthy policyholders between 28-day-old 70-year-old. 80-year-old, (d) Kang Ning Whole Life is a whole life insurance contract with the options for single premium or regular premium of 10 years or 20 years. This product is applicable to healthy policyholders under 70-year-old. (e) Hong Ying Participating Endowment is a participating endowment insurance contract with the options for single premium or regular premium of 3 years, 5 years or 10 years. Its insured period can be 6 years, 10 years or 15 years. This product is applicable to healthy policyholders between 30-day-old 70-year-old. (f) Others consist of various long-term insurance contracts with no significant concentration. |
Claim Development for Short-term Insurance Contracts | The following table indicates the claim development for short-term insurance contracts without taking into account the impacts of ceded business: Short-term insurance contracts (accident year) Estimated claims expenses 2015 2016 2017 2018 2019 Total Year end 20,497 27,120 33,926 40,601 49,727 1 year later 21,427 27,303 34,845 42,785 2 years later 21,422 26,851 34,328 3 years later 21,422 26,851 4 years later 21,422 Estimated accumulated claims expenses 21,422 26,851 34,328 42,785 49,727 175,113 Accumulated claims expenses paid (21,422 ) (26,851 ) (34,328 ) (40,864 ) (33,244 ) (156,709 ) Unpaid claims expenses — — — 1,921 16,483 18,404 The following table indicates the claim development for short-term insurance contracts taking into account the impacts of ceded business: Short-term insurance contracts (accident year) Estimated claims expenses 2015 2016 2017 2018 2019 Total Year end 20,359 26,897 33,700 40,157 49,175 1 year later 21,262 27,107 34,560 42,280 2 years later 21,259 26,655 34,045 3 years later 21,259 26,655 4 years later 21,259 Estimated accumulated claims expenses 21,259 26,655 34,045 42,280 49,175 173,414 Accumulated claims expenses paid (21,259 ) (26,655 ) (34,045 ) (40,374 ) (32,822 ) (155,155 ) Unpaid claims expenses — — — 1,906 16,353 18,259 |
Summary of Primary Financial Assets and Financial Liabilities Denominated in Currencies other than RMB, Expressed in RMB Equivalent | The following table summarises primary financial assets and financial liabilities denominated in currencies other than RMB as at 31 December 2019 and 2018, expressed in RMB equivalent: As at 31 December 2019 US dollar HK dollar GB pound EUR Others Total Financial assets Equity securities - Available-for-sale 11,086 95,428 — — — 106,514 - Securities at fair value through profit or loss 4,549 660 871 2,166 1,292 9,538 Debt securities - Held-to-maturity 218 — — — — 218 - Loans 1,592 — — — — 1,592 - Available-for-sale 7,557 — — — — 7,557 - Securities at fair value through profit or loss 448 — 35 15 9 507 Term deposits 8,026 32 — — — 8,058 Cash and cash equivalents 1,842 444 406 20 3 2,715 Total 35,318 96,564 1,312 2,201 1,304 136,699 Financial liabilities Interest-bearing loans and other borrowings 12,892 — 2,515 4,638 — 20,045 Total 12,892 — 2,515 4,638 — 20,045 As at 31 December 2018 US dollar HK dollar GB pound EUR Others Total Financial assets Equity securities - Available-for-sale 9,994 41,379 — — — 51,373 - Securities at fair value through profit or loss 4,511 163 951 2,315 1,076 9,016 Debt securities - Held-to-maturity 150 — — — — 150 - Loans 1,766 — — — — 1,766 - Available-for-sale 2,240 — — — — 2,240 - Securities at fair value through profit or loss 627 — 19 7 4 657 Term deposits 7,502 — — — — 7,502 Cash and cash equivalents 1,768 261 287 42 — 2,358 Total 28,558 41,803 1,257 2,364 1,080 75,062 Financial liabilities Interest-bearing loans and other borrowings 13,108 — 2,385 4,657 — 20,150 Total 13,108 — 2,385 4,657 — 20,150 |
Contractual and Expected Undiscounted Cash Flows for Financial Assets and Liabilities and Insurance Liabilities | The following tables set forth the contractual and expected undiscounted cash flows for financial assets and liabilities and insurance liabilities: Contractual and expected cash flows (undiscounted) As at 31 December 2019 Carrying value Without maturity Not later than 1 year Later than 1 year but not later than 3 years Later than 3 years but not later than 5 years Later than 5 years Financial assets Contractual cash inflows Equity securities 605,996 605,996 — — — — Debt securities 1,523,748 — 107,632 319,656 250,805 1,701,886 Loans 608,920 — 232,715 174,260 117,001 191,290 Term deposits 535,260 — 119,827 184,707 294,477 8,087 Statutory deposits - restricted 6,333 — 479 2,315 4,594 — Securities purchased under agreements to resell 4,467 — 4,467 — — — Accrued investment income 41,703 — 40,710 561 432 — Premiums receivable 17,281 — 17,281 — — — Cash and cash equivalents 53,306 — 53,306 — — — Subtotal 3,397,014 605,996 576,417 681,499 667,309 1,901,263 Financial and insurance liabilities Expected cash outflows Insurance contracts 2,552,736 — 179,925 209,603 (35,264 ) (5,015,173 ) Investment contracts 267,804 — (24,020 ) (29,900 ) 23,462 (606,662 ) Contractual cash outflows Securities sold under agreements to repurchase 118,088 — (118,088 ) — — — Financial liabilities at fair value through profit or loss 3,859 (3,859 ) — — — — Annuity and other insurance balances payable 51,019 — (51,019 ) — — — Interest-bearing loans and other borrowings 20,045 — (4,776 ) (1,572 ) (16,111 ) — Bonds payable 34,990 — (332 ) (2,996 ) (37,996 ) — Lease liabilities 3,091 — (1,331 ) (1,491 ) (440 ) (74 ) Subtotal 3,051,632 (3,859 ) (19,641 ) 173,644 (66,349 ) (5,621,909 ) Net cash inflow/(outflow) 345,382 602,137 556,776 855,143 600,960 (3,720,646 ) Contractual and expected cash flows (undiscounted) As at 31 December 2018 Carrying Without Not Later than 1 Later than 3 Later Financial assets Contractual cash inflows Equity securities 422,780 422,780 — — — — Debt securities 1,391,310 — 80,801 290,449 298,644 1,417,910 Loans 450,251 — 182,978 101,149 88,718 172,050 Term deposits 559,341 — 172,525 145,634 237,508 77,961 Statutory deposits - restricted 6,333 — 782 739 6,005 — Securities purchased under agreements to resell 9,905 — 9,905 — — — Accrued investment income 48,402 — 47,834 540 28 — Premiums receivable 15,648 — 15,648 — — — Cash and cash equivalents 50,809 — 50,809 — — — Subtotal 2,954,779 422,780 561,282 538,511 630,903 1,667,921 Financial and insurance liabilities Expected cash outflows Insurance contracts 2,216,031 — 197,289 222,170 (13,489 ) (4,391,739 ) Investment contracts 255,434 — (13,098 ) (10,293 ) (11,422 ) (629,318 ) Contractual cash outflows Securities sold under agreements to repurchase 192,141 — (192,141 ) — — — Financial liabilities at fair value through profit or loss 2,680 (2,680 ) — — — — Annuity and other insurance balances payable 49,465 — (49,465 ) — — — Interest-bearing loans and other borrowings 20,150 — (16,977 ) (3,798 ) — — Subtotal 2,735,901 (2,680 ) (74,392 ) 208,079 (24,911 ) (5,021,057 ) Net cash inflow/(outflow) 218,878 420,100 486,890 746,590 605,992 (3,353,136 ) |
Capital Management under Insurance Institution Solvency Regulations | The table below summarises the core and comprehensive solvency ratio, core capital, actual capital and minimum capital of the Company under Insurance Institution Solvency Regulations (No.1 - No.17) As at 31 December 2019 As at 31 December 2018 Core capital 952,030 761,353 Actual capital 987,067 761,367 Minimum capital 356,953 303,872 Core solvency ratio 267% 251% Comprehensive solvency ratio 277% 251% |
Summary of Size, Carrying Amount of Assets Recognised in Financial Statement and Maximum Exposure Relating to its Interest In Unconsolidated Structured Entities | The size of unconsolidated structured entities as well as the Group’s carrying amount of the assets recognised in the financial statements relating to its interest in unconsolidated structured entities and the Group’s maximum exposure are shown below: Unconsolidated structured entities As at 31 December 2019 Size Carrying amount of assets Maximum exposure Interest held by the Group Funds managed by affiliated entities 185,158 6,497 6,497 Investment income Funds managed by third parties Note 1 106,205 106,205 Investment income Trust schemes managed by affiliated entities 6,400 3,588 3,588 Investment income Trust schemes managed by third parties Note 1 71,707 71,707 Investment income Debt investment schemes managed by affiliated entities 34,025 14,832 14,832 Investment income Debt investment schemes managed by third parties Note 1 37,112 37,112 Investment income Others managed by affiliated entities Note 2 452,814 10,827 10,827 Investment income Others managed by third parties Note 2 Note 1 98,003 98,003 Investment income Unconsolidated structured entities As at 31 December 2018 Size Carrying Maximum Interest held by Funds managed by affiliated entities 120,797 629 629 Investment income Funds managed by third parties Note 1 104,678 104,678 Investment income Trust schemes managed by affiliated entities 3,800 2,680 2,680 Investment income Trust schemes managed by third parties Note 1 89,769 89,769 Investment income Debt investment schemes managed by affiliated entities 59,456 32,029 32,029 Investment income Debt investment schemes managed by third parties Note 1 33,330 33,330 Investment income Others managed by affiliated entities Note 2 422,006 9,502 9,502 Investment income Others managed by third parties Note 2 Note 1 110,035 110,035 Investment income Note 1: Funds, trust schemes, debt investment schemes and others managed by third parties were sponsored by third party financial institutions and the information related to size of these structured entities were not publicly available. Note 2: Others included wealth management products, special asset management schemes, and asset-backed plans, etc. |
Quantitative Disclosures of Fair Value Measurement Hierarchy for Assets and Liabilities Measured at Fair Value | The following table presents the Group’s quantitative disclosures of fair value measurement hierarchy for assets and liabilities measured at fair value as at 31 December 2019: Fair value measurement using Quoted prices in active markets RMB million Significant observable inputs Significant unobservable inputs Total RMB million Assets measured at fair value Available-for-sale - Equity securities Funds 102,349 — — 102,349 Common stocks 214,206 22,117 — 236,323 Preferred stocks — — 58,314 58,314 Wealth management products — 32,640 — 32,640 Others — 28,319 70,585 98,904 - Debt securities Government bonds 2,620 21,138 — 23,758 Government agency bonds 24,305 146,884 — 171,189 Corporate bonds 5,360 143,095 — 148,455 Subordinated bonds/debts 1,069 52,853 — 53,922 Others — 6,817 105,650 112,467 Securities at fair value through profit or loss - Equity securities Funds 16,023 78 — 16,101 Common stocks 40,070 211 — 40,281 Others — 20 — 20 - Debt securities Government bonds 33 8 — 41 Government agency bonds 362 6,497 — 6,859 Corporate bonds 7,999 69,200 16 77,215 Others — 1,091 — 1,091 Derivative financial assets — — 428 428 Total 414,396 530,968 234,993 1,180,357 Liabilities measured at fair value Financial liabilities at fair value through profit or loss (3,859 ) — — (3,859 ) Investment contracts at fair value through profit or loss (10 ) — — (10 ) Total (3,869 ) — — (3,869 ) The following table presents the Group’s quantitative disclosures of fair value measurement hierarchy for assets and liabilities measured at fair value as at 31 December 2018: Fair value measurement using Quoted prices Significant Significant Total RMB million Assets measured at fair value Available-for-sale - Equity securities Funds 92,260 44 — 92,304 Common stocks 113,750 15,871 13,848 143,469 Preferred stocks — — 32,707 32,707 Wealth management products — 31,348 — 31,348 Others 34 — 53,445 53,479 - Debt securities Government bonds 2,587 25,853 — 28,440 Government agency bonds 53,433 126,840 — 180,273 Corporate bonds 10,206 175,514 — 185,720 Subordinated bonds/debts — 21,314 200 21,514 Others — 1,595 79,048 80,643 Securities at fair value through profit or loss - Equity securities Funds 13,891 76 — 13,967 Common stocks 34,392 849 — 35,241 Wealth management products — 1,506 — 1,506 - Debt securities Government bonds 82 36 — 118 Government agency bonds 1,556 5,204 — 6,760 Corporate bonds 7,052 72,722 — 79,774 Others — 1,351 — 1,351 Total 329,243 480,123 179,248 988,614 Liabilities measured at fair value Financial liabilities at fair value through profit or loss (2,680 ) — — (2,680 ) Investment contracts at fair value through profit or loss (9 ) — — (9 ) Derivative financial liabilities — — (1,877 ) (1,877 ) Total (2,689 ) — (1,877 ) (4,566 ) |
Significant unobservable inputs level 3 [member] | |
Statement [line items] | |
Quantitative Disclosures of Fair Value Measurement Hierarchy for Assets and Liabilities Measured at Fair Value | The following table presents the changes in Level 3 assets and liabilities for the year ended 31 December 2019: Available-for-sale Securities at fair value through profit or loss Derivative Total Derivative Total Debt securities Equity securities Debt securities RMB million RMB RMB RMB RMB Opening balance 79,248 100,000 — — 179,248 (1,877 ) (1,877 ) Purchases 35,453 46,561 — — 82,014 — — Transferred into Level 3 — — 16 — 16 — — Transferred out of Level 3 — (15,866 ) — — (15,866 ) — — Total gains/(losses) recorded in profit or loss — — — 428 428 404 404 Total gains/(losses) recorded in other comprehensive income 221 3,205 — — 3,426 — — Disposals (200 ) (4,000 ) — — (4,200 ) 1,473 1,473 Maturity (9,072 ) (1,001 ) — — (10,073 ) — — Closing balance 105,650 128,899 16 428 234,993 — — The following table presents the changes in Level 3 assets and liabilities for the year ended 31 December 2018: Available-for-sale Securities at fair Total Derivative Total Debt Equity Equity RMB RMB RMB Opening balance 57,333 89,111 655 147,099 — — Purchases 19,755 7,891 — 27,646 — — Transferred into Level 3 — 180 — 180 — — Transferred out of Level 3 — (467 ) (655 ) (1,122 ) — — Total gains/(losses) recorded in profit or loss — — — — (1,877 ) (1,877 ) Total gains/(losses) recorded in other comprehensive income 3,024 3,446 — 6,470 — — Disposals — (161 ) — (161 ) — — Maturity (864 ) — — (864 ) — — Closing balance 79,248 100,000 — 179,248 (1,877 ) (1,877 ) |
Summary of Information About Significant Unobservable Inputs Used for Primary Assets and Liabilities at Fair Value Classified as Level 3 | The table below presents information about the significant unobservable inputs used for primary assets and liabilities at fair value classified as Level 3 as at 31 December 2019 and 31 December 2018: Fair value Valuation Significant unobservable Range Relationships between fair unobservable Equity securities 31 December 2019: 26,265 31 December 2018: 34,388 Comparable companies approach Discounts for lack of marketability 31 December 2019: 11%-35% 31 December 2018: 5%-25% The fair value is inversely related to the discounts for lack of marketability 31 December 2019: 28,346 31 December 2018: 23,976 Net asset value method N/A N/A N/A 31 December 2019: 72,477 31 December 2018: 37,847 Discounted cash flow method Discount rate 31 December 2019: 3.80%-6.38% 31 December 2018: 3.80%-7.50% The fair value is inversely related to discount rate Debt securities 31 December 2019: 105,666 31 December 2018: 79,248 Discounted cash flow method Discount rate 31 December 2019: 3.02%-6.22% 31 December 2018: 4.00%-6.60% The fair value is inversely related to discount rate Derivative financial instruments 31 December 2019: 428 31 December 2018: (1,877) Comparable companies approach Discounts for lack of marketability 31 December 2019: 15% 31 December 2018: 11% The fair value is inversely related to the discounts for lack of marketability |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Financial Information of Operating Segments | For the year ended 31 December 2019 Life Health Accident Others Elimination Total RMB million Revenues Gross written premiums 446,562 105,581 14,943 — — 567,086 - Term life 2,584 — — — — - Whole life 61,612 — — — — - Endowment 113,950 — — — — - Annuity 268,416 — — — — Net premiums earned 445,719 99,575 14,984 — — 560,278 Investment income 129,334 7,849 443 2,293 — 139,919 Net realised gains on financial assets 1,646 100 6 79 — 1,831 Net fair value gains through profit or loss 16,947 1,027 58 1,219 — 19,251 Other income 1,110 60 — 8,698 (1,673 ) 8,195 Including: inter-segment revenue — — — 1,673 (1,673 ) — Segment revenues 594,756 108,611 15,491 12,289 (1,673 ) 729,474 Benefits, claims and expenses Insurance benefits and claims expenses Life insurance death and other benefits (124,194 ) (3,649 ) (34 ) — — (127,877 ) Accident and health claims and claim adjustment expenses — (44,613 ) (6,170 ) — — (50,783 ) Increase in insurance contract liabilities (303,479 ) (27,209 ) (119 ) — — (330,807 ) Investment contract benefits (8,810 ) (347 ) — — — (9,157 ) Policyholder dividends resulting from participation in profits (22,251 ) (124 ) — — — (22,375 ) Underwriting and policy acquisition costs (57,071 ) (16,554 ) (5,443 ) (2,328 ) — (81,396 ) Finance costs (3,288 ) (200 ) (12 ) (755 ) — (4,255 ) Administrative expenses (25,328 ) (9,075 ) (2,962 ) (2,910 ) — (40,275 ) Other expenses (7,120 ) (692 ) (169 ) (3,294 ) 1,673 (9,602 ) Including: inter-segment expenses (1,573 ) (95 ) (5 ) — 1,673 — Statutory insurance fund contribution (797 ) (273 ) (93 ) — — (1,163 ) Segment benefits, claims and expenses (552,338 ) (102,736 ) (15,002 ) (9,287 ) 1,673 (677,690 ) Net gains on investments of associates and joint ventures — — — 8,011 — 8,011 Including: share of profit of associates and joint ventures — — — 9,159 — 9,159 Segment results 42,418 5,875 489 11,013 — 59,795 Income tax (781 ) Net profit 59,014 Attributable to - Equity holders of the Company 58,287 - Non-controlling 727 Other comprehensive income attributable to equity holders of the Company 31,861 1,931 109 946 — 34,847 Depreciation and amortisation 2,671 917 312 479 — 4,379 As at 31 December 2019 Life Health Accident Others Elimination Total RMB million Assets Financial assets 3,111,140 183,142 10,080 76,907 — 3,381,269 Others 8,953 12,109 572 222,983 — 244,617 Segment assets 3,120,093 195,251 10,652 299,890 — 3,625,886 Unallocated Property, plant and equipment 51,758 Others 49,090 Total 3,726,734 Liabilities Insurance contracts 2,385,407 158,800 8,529 — — 2,552,736 Investment contracts 252,362 15,442 — — — 267,804 Securities sold under agreements to repurchase 106,377 6,447 365 4,899 — 118,088 Others 80,820 5,687 346 23,904 — 110,757 Segment liabilities 2,824,966 186,376 9,240 28,803 — 3,049,385 Unallocated Others 268,007 Total 3,317,392 For the year ended 31 December 2018 Life Health Accident Others Elimination Total RMB million Revenues Gross written premiums 437,540 83,614 14,672 — — 535,826 - Term life 3,145 — — — — - Whole life 46,375 — — — — - Endowment 126,318 — — — — - Annuity 261,702 — — — — Net premiums earned 436,863 80,279 14,881 — — 532,023 Investment income 116,721 6,393 441 1,612 — 125,167 Net realised gains on financial assets (18,439 ) (1,008 ) (70 ) (74 ) — (19,591 ) Net fair value gains through profit or loss (16,946 ) (927 ) (65 ) (340 ) — (18,278 ) Other income 1,088 84 — 8,505 (1,579 ) 8,098 Including: inter-segment revenue — — — 1,579 (1,579 ) — Segment revenues 519,287 84,821 15,187 9,703 (1,579 ) 627,419 Benefits, claims and expenses Insurance benefits and claims expenses Life insurance death and other benefits (245,786 ) (2,922 ) (28 ) — — (248,736 ) Accident and health claims and claim adjustment expenses — (33,801 ) (6,751 ) — — (40,552 ) Increase in insurance contract liabilities (167,090 ) (22,966 ) 125 — — (189,931 ) Investment contract benefits (9,020 ) (312 ) — — — (9,332 ) Policyholder dividends resulting from participation in profits (19,523 ) (123 ) — — — (19,646 ) Underwriting and policy acquisition costs (43,108 ) (11,806 ) (4,808 ) (2,983 ) — (62,705 ) Finance costs (3,304 ) (181 ) (12 ) (619 ) — (4,116 ) Administrative expenses (23,728 ) (7,881 ) (2,982 ) (2,895 ) — (37,486 ) Other expenses (5,339 ) (487 ) (140 ) (3,255 ) 1,579 (7,642 ) Including: inter-segment expenses (1,492 ) (82 ) (5 ) — 1,579 — Statutory insurance fund contribution (759 ) (242 ) (96 ) — — (1,097 ) Segment benefits, claims and expenses (517,657 ) (80,721 ) (14,692 ) (9,752 ) 1,579 (621,243 ) Net gains on investments of associates and joint ventures — — — 7,745 — 7,745 Including: share of profit of associates and joint ventures — — — 7,745 — 7,745 Segment results 1,630 4,100 495 7,696 — 13,921 Income tax (1,985 ) Net profit 11,936 Attributable to - Equity holders of the Company 11,395 - Non-controlling 541 Other comprehensive income attributable to equity holders of the Company (2,579 ) (141 ) (10 ) 660 — (2,070 ) Depreciation and amortisation 1,589 505 202 342 — 2,638 As at 31 December 2018 Life Health Accident Others Elimination Total RMB million Assets Financial assets 2,743,378 145,889 9,835 43,383 — 2,942,485 Others 9,696 8,975 610 201,661 — 220,942 Segment assets 2,753,074 154,864 10,445 245,044 — 3,163,427 Unallocated Property, plant and equipment 47,281 Others 43,695 Total 3,254,403 Liabilities Insurance contracts 2,081,822 125,743 8,466 — — 2,216,031 Investment contracts 240,152 15,282 — — — 255,434 Derivative financial liabilities 1,773 97 7 — — 1,877 Securities sold under agreements to repurchase 178,499 9,759 674 3,209 — 192,141 Others 46,328 3,607 211 22,830 — 72,976 Segment liabilities 2,548,574 154,488 9,358 26,039 — 2,738,459 Unallocated Others 192,654 Total 2,931,113 For the year ended 31 December 2017 Life Health Accident Others Elimination Total RMB million Revenues Gross written premiums 429,822 67,708 14,436 — — 511,966 - Term life 4,110 — — — — - Whole life 36,496 — — — — - Endowment 198,418 — — — — - Annuity 190,798 — — — — Net premiums earned 429,267 63,323 14,320 — — 506,910 Investment income 115,316 5,454 456 1,501 — 122,727 Net realised gains on financial assets 41 2 — (1 ) — 42 Net fair value gains through profit or loss 5,690 269 23 201 — 6,183 Other income 1,276 75 — 7,268 (1,126 ) 7,493 Including: inter-segment revenue — — — 1,126 (1,126 ) — Segment revenues 551,590 69,123 14,799 8,969 (1,126 ) 643,355 Benefits, claims and expenses Insurance benefits and claims expenses Life insurance death and other benefits (257,300 ) (2,383 ) (25 ) — — (259,708 ) Accident and health claims and claim adjustment expenses — (27,992 ) (5,826 ) — — (33,818 ) Increase in insurance contract liabilities (152,110 ) (20,249 ) (158 ) — — (172,517 ) Investment contract benefits (7,798 ) (278 ) — — — (8,076 ) Policyholder dividends resulting from participation in profits (21,748 ) (123 ) — — — (21,871 ) Underwriting and policy acquisition costs (48,781 ) (8,494 ) (4,565 ) (2,949 ) — (64,789 ) Finance costs (3,967 ) (187 ) (16 ) (431 ) — (4,601 ) Administrative expenses (24,286 ) (5,615 ) (3,423 ) (2,629 ) — (35,953 ) Other expenses (5,508 ) (376 ) (147 ) (1,521 ) 1,126 (6,426 ) Including: inter-segment expenses (1,071 ) (51 ) (4 ) — 1,126 — Statutory insurance fund contribution (777 ) (180 ) (111 ) — — (1,068 ) Segment benefits, claims and expenses (522,275 ) (65,877 ) (14,271 ) (7,530 ) 1,126 (608,827 ) Share of profit of associates and joint ventures, net — — — 7,143 — 7,143 Segment results 29,315 3,246 528 8,582 — 41,671 Income tax (8,919 ) Net profit 32,752 Attributable to - Equity holders of the Company 32,253 - Non-controlling interests 499 Other comprehensive income attributable to equity holder s of the Company (7,838 ) (370 ) (31 ) 327 — (7,912 ) Depreciation and amortisation 1,513 351 216 160 — 2,240 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment | Buildings Office equipment, furniture and fixtures Motor vehicles Assets under construction Leasehold improvements Total RMB million Cost As at 1 January 2019 37,262 7,658 1,340 16,902 2,191 65,353 Transfers upon completion 7,171 288 — (8,164 ) 532 (173 ) Additions 415 1,026 195 8,656 3 10,295 Transfers into investment properties — — — (2,977 ) — (2,977 ) Disposals (77 ) (604 ) (171 ) (39 ) (107 ) (998 ) As at 31 December 2019 44,771 8,368 1,364 14,378 2,619 71,500 Accumulated depreciation As at 1 January 2019 (10,414 ) (5,443 ) (813 ) — (1,377 ) (18,047 ) Charge for the year (1,397 ) (620 ) (190 ) — (283 ) (2,490 ) Other additions (48 ) — — — — (48 ) Disposals 48 579 162 — 79 868 As at 31 December 2019 (11,811 ) (5,484 ) (841 ) — (1,581 ) (19,717 ) Impairment As at 1 January 2019 (24 ) — — (1 ) — (25 ) Charge for the year — — — — — — Disposals — — — — — — As at 31 December 2019 (24 ) — — (1 ) — (25 ) Net book value As at 1 January 2019 26,824 2,215 527 16,901 814 47,281 As at 31 December 2019 32,936 2,884 523 14,377 1,038 51,758 Buildings Office equipment, furniture and fixtures Motor vehicles Assets under construction Leasehold improvements Total RMB million Cost As at 1 January 2018 32,457 6,873 1,403 16,696 1,830 59,259 Transfers upon completion 4,889 123 — (5,500 ) 393 (95 ) Additions 85 932 282 11,416 54 12,769 Transfers into investment properties — — — (5,634 ) — (5,634 ) Disposals (169 ) (270 ) (345 ) (76 ) (86 ) (946 ) As at 31 December 2018 37,262 7,658 1,340 16,902 2,191 65,353 Accumulated depreciation As at 1 January 2018 (9,248 ) (5,122 ) (955 ) — (1,203 ) (16,528 ) Charge for the year (1,196 ) (578 ) (151 ) — (212 ) (2,137 ) Disposals 30 257 293 — 38 618 As at 31 December 2018 (10,414 ) (5,443 ) (813 ) — (1,377 ) (18,047 ) Impairment As at 1 January 2018 (24 ) — — — — (24 ) Charge for the year — — — (1 ) — (1 ) Disposals — — — — — — As at 31 December 2018 (24 ) — — (1 ) — (25 ) Net book value As at 1 January 2018 23,185 1,751 448 16,696 627 42,707 As at 31 December 2018 26,824 2,215 527 16,901 814 47,281 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Detailed Information About In Right Of Use Assets | (a) Right-of-use Buildings Others Total RMB million Cost As at 1 January 2019 2,554 1 2,555 Additions 2,262 1 2,263 Deductions (130 ) — (130 ) As at 31 December 2019 4,686 2 4,688 Accumulated depreciation As at 1 January 2019 — — — Charge for the year (1,196 ) (1 ) (1,197 ) Deductions 29 — 29 As at 31 December 2019 (1,167 ) (1 ) (1,168 ) Impairment As at 1 January 2019 — — — Charge for the year — — — Deductions — — — As at 31 December 2019 — — — Net book value As at 1 January 2019 2,554 1 2,555 As at 31 December 2019 3,519 1 3,520 |
Detailed information about in recognized profit or loss leases | (b) The amounts recognised in profit or loss in relation to leases are as follows: 31 December 2019 RMB million Interest on lease liabilities 106 Depreciation charge of right-of-use 1,197 Expense relating to short-term leases 440 Expense relating to leases of low-value (except for short-term lease liabilities) 3 Total 1,746 |
Investment Properties (Tables)
Investment Properties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Investment Properties | Buildings Cost As at 1 January 2019 10,227 Additions 3,022 Deductions (351 ) As at 31 December 2019 12,898 Accumulated depreciation As at 1 January 2019 (480 ) Additions (325 ) Deductions 48 As at 31 December 2019 (757 ) Net book value As at 1 January 2019 9,747 As at 31 December 2019 12,141 Fair value As at 1 January 2019 12,449 As at 31 December 2019 14,870 Buildings Cost As at 1 January 2018 3,366 Additions 6,875 Deductions (14 ) As at 31 December 2018 10,227 Accumulated depreciation As at 1 January 2018 (302 ) Additions (186 ) Deductions 8 As at 31 December 2018 (480 ) Net book value As at 1 January 2018 3,064 As at 31 December 2018 9,747 Fair value As at 1 January 2018 4,629 As at 31 December 2018 12,449 |
Investments in Associates and_2
Investments in Associates and Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Movement of Investments in Associates and Joint Ventures | 2019 2018 As at 31 December 2018/ 31 December 2017 201,661 161,472 Adjustment (i) (2,889 ) — As at 1 January 198,772 161,472 Change of the cost 18,590 34,229 Share of profit or loss 9,159 7,745 Declared dividends (3,227 ) (2,903 ) Other equity movements 1,189 1,118 Impairment (1,500 ) — As at 31 December 222,983 201,661 |
Detailed Information about Movement of Investments in Associates and Joint Ventures | Movement Accounting Cost As at 31 December Adjustment (i) As at 1 January 2019 Change of the cost Share of profit Declared dividends Other movements Provision of impairment As at Percentage of equity Accumulated amount of impairment Associates China Guangfa Bank Co., Ltd. (“CGB”) (ii) Equity Method 45,176 72,655 (2,841 ) 69,814 — 5,374 (284 ) 276 — 75,180 43.686% — Sino-Ocean Group Holding Limited (“Sino-Ocean”) (iii) Equity Method 11,245 12,812 — 12,812 — 545 (369 ) (101 ) (1,500 ) 11,387 29.59% (2,510 ) China Life Property & Casualty Insurance Company Limited (“CLP&C”) Equity Method 6,000 7,963 — 7,963 — 849 — 520 — 9,332 40.00% — COFCO Futures Company Limited (“COFCO Futures”) Equity Method 1,339 1,501 — 1,501 — 49 — — — 1,550 35.00% — Sinopec Sichuan to East China Gas Pipeline Co., Ltd. (“Pipeline Company”) Equity Method 20,000 21,387 — 21,387 — 1,146 (1,104 ) 4 — 21,433 43.86% — China United Network Communications Limited (“China Unicom”) (iv) Equity Method 21,829 21,892 (48 ) 21,844 — 453 (170 ) (59 ) — 22,068 10.29% — Others (v) Equity Method 29,231 23,524 — 23,524 5,566 725 (460 ) 400 — 29,755 — Subtotal 134,820 161,734 (2,889 ) 158,845 5,566 9,141 (2,387 ) 1,040 (1,500 ) 170,705 (2,510 ) Joint ventures Joy City Commercial Property Fund L.P. (“Joy City”) Equity Method 6,281 5,787 — 5,787 — 224 (162 ) — — 5,849 66.67% — Mapleleaf Century Limited (“MCL”) Equity Method 7,656 5,741 — 5,741 17 (596 ) — (22 ) — 5,140 75.00% — Others (v) Equity Method 41,921 28,399 — 28,399 13,007 390 (678 ) 171 — 41,289 — Subtotal 55,858 39,927 — 39,927 13,024 18 (840 ) 149 — 52,278 — Total 190,678 201,661 (2,889 ) 198,772 18,590 9,159 (3,227 ) 1,189 (1,500 ) 222,983 (2,510 ) (i) On 1 January 2019, CGB began to adopt IFRS 9. The cumulative effect of initial adoption of IFRS 9 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. As at 1 January 2019, The Group’s retained earnings were decreased by RMB2,857 million and reserves were increased by RMB16 million. The Group’s equity as at 1 January 2019 was decreased by RMB2,841 million in total. On 1 January 2019, China Unicom began to adopt IFRS 16. The cumulative effect of initial adoption of IFRS 16 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. The Group’s retained earnings as at 1 January 2019 were decreased by RMB48 million. (ii) The 2018 final dividend of RMB0.033 in cash per ordinary share was approved and declared in the Annual General Meeting of CGB on 16 August 2019. The Company received a cash dividend of RMB284 million. (iii) The 2018 final dividend of HKD0.073 in cash per ordinary share was approved and declared in the Annual General Meeting of Sino-Ocean on 16 May 2019. The Company received a cash dividend equivalent to RMB145 million. The 2019 interim dividend of HKD0.110 in cash per ordinary share was approved and declared by the board of directors of Sino-Ocean on 21 August 2019. The Company received a cash dividend equivalent to RMB224 million. Sino-Ocean, the Group’s associate is listed in Hong Kong. On 31 December 2019, the stock price of Sino-Ocean was HKD3.13 per share. As at 31 December 2018, the cumulative impairment loss of RMB1.01 billion for the investment in Sino-Ocean had been recognised by the Group. The Group performed an impairment test to this investment on 31 December 2019. An impairment loss of RMB1.50 billion was recognised for this investment valued using the discounted future cash flow method for the year ended 31 December 2019. In the valuation, the Group separated the development property and investment property by considering the different future cash flow features. The discount rates applied in the valuation were 10% and 8% for development property and investment property, respectively. (iv) The 2018 final dividend of RMB0.0533 in cash per ordinary share was approved and declared in the Annual General Meeting of China Unicom on 8 May 2019. The Company received a cash dividend of RMB170 million. As at 31 December 2019, China Unicom’s share price is RMB5.89 per share. (v) The Group invested in real estate, industrial logistics assets and other industries through these enterprises. (vi) Except for the non-publicly issued stock of China Unicom having a 36-month period restricted for sale, there is no significant restriction for the Group to dispose of its other associates and joint ventures. |
Major Associates and Joint Venture | As at 31 December 2019, the major associates and joint ventures of the Group are as follows: Name Place of incorporation Percentage of equity interest held Associates CGB PRC 43.686% Sino-Ocean Hong Kong, PRC 29.59% CLP&C PRC 40.00% COFCO Futures PRC 35.00% Pipeline Company PRC 43.86% China Unicom PRC 10.29% Joint ventures Joy City The British Cayman Islands 66.67% MCL The British Virgin Islands 75.00% As at 31 December 2018, the major associates and joint ventures of the Group are as follows: Name Place of incorporation Percentage of equity interest held Associates CGB PRC 43.686% Sino-Ocean Hong Kong, PRC 29.59% CLP&C PRC 40.00% COFCO Futures PRC 35.00% Pipeline Company PRC 43.86% China Unicom PRC 10.29% Joint ventures Joy City The British Cayman Islands 66.67% MCL The British Virgin Islands 75.00% |
Financial Information of Major Associates and Joint Venture | The following table illustrates the financial information of the Group’s major associates and joint ventures as at 31 December 2019 and for the year ended 31 December 2019: CGB Sino-Ocean CLP&C COFCO Futures Pipeline Company China Unicom Joy City MCL Total assets 2,632,798 243,700 91,167 12,671 36,327 564,231 10,281 24,381 Total liabilities 2,423,234 178,088 67,837 9,792 777 240,735 168 13,620 Total equity 209,564 65,612 23,330 2,879 35,550 323,496 10,113 10,761 Total equity attributable to equity holders of the associates and joint ventures 164,573 49,909 23,330 2,872 35,550 143,327 10,113 10,761 Total adjustments (i) 412 (6,209 ) — — 449 17,454 (1,339 ) (3,908 ) Total equity attributable to equity holders of the associates and joint ventures after adjustments 164,985 43,700 23,330 2,872 35,999 160,781 8,774 6,853 Proportion of the Group’s ownership 43.686% 29.59% 40.00% 35.00% 43.86% 10.29% 66.67% 75.00% Gross carrying value of the investments 75,180 13,897 9,332 1,550 21,433 22,068 5,849 5,140 Impairment — (2,510 ) — — — — — — Net carrying value of the investments 75,180 11,387 9,332 1,550 21,433 22,068 5,849 5,140 Total revenues 76,312 56,704 69,498 793 5,008 291,435 306 795 Net profit/(loss) 12,581 4,166 2,123 153 2,635 11,264 287 348 Other comprehensive income 643 152 1,310 1 — (501 ) — — Total comprehensive income 13,224 4,318 3,433 154 2,635 10,763 287 348 The following table illustrates the financial information of the Group’s major associates and joint ventures as at 31 December 2018 and for the year ended 31 December 2018: CGB Sino-Ocean CLP&C COFCO Futures Pipeline Company China Unicom Joy City MCL Total assets 2,373,291 249,362 83,561 8,986 36,467 541,762 10,243 22,266 Total liabilities 2,214,781 186,224 63,654 6,246 1,043 224,822 265 11,897 Total equity 158,510 63,138 19,907 2,740 35,424 316,940 9,978 10,369 Total equity attributable to equity holders of the associates and joint ventures 158,510 48,385 19,907 2,732 35,424 140,144 9,978 10,369 Total adjustments (i) 933 (4,938 ) — — 470 17,926 (1,297 ) (2,714 ) Total equity attributable to equity holders of the associates and joint ventures after adjustments 159,443 43,447 19,907 2,732 35,894 158,070 8,681 7,655 Proportion of the Group’s ownership 43.686% 29.59% 40.00% 35.00% 43.86% 10.29% 66.67% 75.00% Gross carrying value of the investments 72,655 13,822 7,963 1,501 21,387 21,892 5,787 5,741 Impairment — (1,010 ) — — — — — — Net carrying value of the investments 72,655 12,812 7,963 1,501 21,387 21,892 5,787 5,741 Total revenues 59,279 48,821 65,564 643 4,746 290,877 457 458 Net profit/(loss) 10,707 4,666 121 98 2,545 9,301 438 609 Other comprehensive income 4,160 (1,518 ) (503 ) 1 — (245 ) — — Total comprehensive income 14,867 3,148 (382 ) 99 2,545 9,056 438 609 (i) Including adjustments for the difference of accounting policies, fair value and others. |
Financial Assets (Tables)
Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Held-to-Maturity Securities | As at 31 As at 31 Debt securities Government bonds 215,928 179,943 Government agency bonds 401,799 266,986 Corporate bonds 198,322 212,709 Subordinated bonds/debts 112,702 147,079 Total 928,751 806,717 Debt securities Listed in Mainland, PRC 209,123 109,597 Listed in Hong Kong, PRC 157 130 Listed overseas 62 20 Unlisted (i) 719,409 696,970 Total 928,751 806,717 (i) Unlisted debt securities include those traded on the Chinese interbank market. |
Summary of Fair Value Hierarchy of Financial Assets | As at 31 As at 31 Debt securities - fair value hierarchy Level 1 Level 2 Total Level 1 Level 2 Total Government bonds 15,749 212,449 228,198 15,387 175,622 191,009 Government agency bonds 57,955 357,058 415,013 72,455 204,029 276,484 Corporate bonds 7,914 198,879 206,793 10,965 209,302 220,267 Subordinated bonds/debts — 118,571 118,571 — 155,783 155,783 Total 81,618 886,957 968,575 98,807 744,736 843,543 |
Contractual Maturity Schedule of Held-to-Maturity Securities | Debt securities - Contractual maturity schedule As at 31 December 2019 As at 31 Maturing: Within one year 24,454 16,907 After one year but within five years 128,266 137,840 After five years but within ten years 241,372 279,086 After ten years 534,659 372,884 Total 928,751 806,717 |
Summary of Loans | 10.2 Loans As at 31 As at 31 Policy loans (i) 174,872 142,165 Other loans 436,766 308,086 Total 611,638 450,251 Impairment (2,718 ) — Net value 608,920 450,251 (i) As at 31 December 2019, maturities of policy loans were within 6 months (as at 31 December 2018: same). |
Summary of Loans Maturity | As at 31 December 2019 As at 31 Maturing: Within one year 213,937 167,498 After one year but within five years 229,415 138,939 After five years but within ten years 129,596 99,501 After ten years 38,690 44,313 Total 611,638 450,251 Impairment (2,718 ) — Net value 608,920 450,251 |
Summary of Term Deposits Maturity | 10.3 Term deposits As at 31 As at 31 Maturing: Within one year 107,039 158,920 After one year but within five years 420,191 323,021 After five years but within ten years 8,030 77,400 Total 535,260 559,341 |
Summary of Restricted Statutory Deposits Maturity | 10.4 Statutory deposits - restricted As at 31 As at 31 Contractual maturity schedule: Within one year 180 500 After one year but within five years 6,153 5,833 Total 6,333 6,333 |
Summary of Available-for-Sale Securities | 10.5 Available-for-sale As at 31 As at 31 Available-for-sale Debt securities Government bonds 23,758 28,440 Government agency bonds 171,189 180,273 Corporate bonds 148,455 185,720 Subordinated bonds/debts 53,922 21,514 Others (i) 112,467 80,643 Subtotal 509,791 496,590 Equity securities Funds 102,349 92,304 Common stocks 236,323 143,469 Preferred stocks 58,314 32,707 Wealth management products 32,640 31,348 Others (i) 98,904 53,479 Subtotal 528,530 353,307 Available-for-sale Equity securities Others (i) 20,636 20,636 Total 1,058,957 870,533 (i) Other available-for-sale As at 31 As at 31 Debt securities Listed in Mainland, PRC 46,505 53,933 Unlisted 463,286 442,657 Subtotal 509,791 496,590 Equity securities Listed in Mainland, PRC 152,293 102,190 Listed in Hong Kong, PRC 95,428 55,066 Listed overseas 1,458 162 Unlisted 299,987 216,525 Subtotal 549,166 373,943 Total 1,058,957 870,533 |
Contractual Maturity Schedule of Available-for-Sale Securities | Debt securities - Contractual maturity schedule As at 31 As at 31 Maturing: Within one year 26,075 11,511 After one year but within five years 155,110 170,606 After five years but within ten years 226,421 214,826 After ten years 102,185 99,647 Total 509,791 496,590 |
Summary of Securities at Fair Value through Profit or Loss | 10.6 Securities at fair value through profit or loss As at 31 As at 31 Debt securities Government bonds 41 118 Government agency bonds 6,859 6,760 Corporate bonds 77,215 79,774 Others 1,091 1,351 Subtotal 85,206 88,003 Equity securities Funds 16,101 13,967 Common stocks 40,281 35,241 Wealth management products — 1,506 Others 20 — Subtotal 56,402 50,714 Total 141,608 138,717 Debt securities Listed in Mainland, PRC 35,804 39,145 Listed in Hong Kong, PRC 102 108 Listed overseas 167 202 Unlisted 49,133 48,548 Subtotal 85,206 88,003 Equity securities Listed in Mainland, PRC 39,770 31,962 Listed in Hong Kong, PRC 611 97 Listed overseas 6,418 6,552 Unlisted 9,603 12,103 Subtotal 56,402 50,714 Total 141,608 138,717 |
Summary of Derivative Financial Assets | 10.7 Derivative financial instruments As at 31 December 2019 As at 31 Derivative financial assets Forward contract 428 — Derivative financial Liabilities Forward contract — 1,877 |
Contractual Maturity Schedule of Securities Purchased under Agreements to Resell | 10.8 Securities purchased under agreements to resell As at 31 As at 31 Maturing: Within 30 days 4,467 9,905 Total 4,467 9,905 |
Summary of Accrued Investment Income | 10.9 Accrued investment income As at 31 As at 31 Bank deposits 12,310 19,805 Debt securities 25,048 23,486 Others 4,345 5,111 Total 41,703 48,402 Current 40,710 47,834 Non-current 993 568 Total 41,703 48,402 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Carrying Value and Estimated Fair Value of Major Financial Assets and Liabilities, and Investment Contracts | 11 FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The table below presents the carrying value and estimated fair value of major financial assets and liabilities, and investment contracts: Carrying value Estimated fair value (i) As at 31 As at 31 As at 31 As at 31 Held-to-maturity 928,751 806,717 968,575 843,543 Loans (iii) 608,920 450,251 623,840 458,669 Term deposits 535,260 559,341 535,260 559,341 Statutory deposits - restricted 6,333 6,333 6,333 6,333 Available-for-sale 1,038,321 849,897 1,038,321 849,897 Securities at fair value through profit or loss 141,608 138,717 141,608 138,717 Derivative financial assets 428 — 428 — Securities purchased under agreements to resell 4,467 9,905 4,467 9,905 Cash and cash equivalents 53,306 50,809 53,306 50,809 Investment contracts (iii) (267,804 ) (255,434 ) (260,592 ) (245,803 ) Financial liabilities at fair value through profit or loss (3,859 ) (2,680 ) (3,859 ) (2,680 ) Derivative financial liabilities — (1,877 ) — (1,877 ) Securities sold under agreements to repurchase (118,088 ) (192,141 ) (118,088 ) (192,141 ) Bonds payable (34,990 ) — (35,551 ) — Interest-bearing loans and borrowings (20,045 ) (20,150 ) (20,045 ) (20,150 ) (i) The estimates and judgements to determine the fair value of financial assets are described in Note 3.2. (ii) The fair value of held-to-maturity (iii) Investment contracts at fair value through profit or loss have quoted prices in active markets, and therefore, their fair value was classified as Level 1. |
Reinsurance Assets (Tables)
Reinsurance Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Reinsurance Assets | As at 31 As at 31 Long-term insurance contracts ceded (Note 15) 3,839 3,123 Due from reinsurance companies 808 731 Ceded unearned premiums (Note 15) 369 370 Claims recoverable from reinsurers (Note 15) 145 140 Total 5,161 4,364 Current 1,318 1,241 Non-current 3,843 3,123 Total 5,161 4,364 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Assets | As at 31 As at 31 Land use rights (i) 7,830 7,906 Disbursements 5,946 4,162 Tax prepaid 5,615 — Automated policy loans 3,377 3,269 Investments receivable and prepaid 2,665 8,885 Prepayments to constructors 847 504 Due from related parties 757 725 Others 6,992 7,986 Total 34,029 33,437 Current 24,175 23,533 Non-current 9,854 9,904 Total 34,029 33,437 (i) The Group’s right-of-use right-of-use |
Insurance Contracts (Tables)
Insurance Contracts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [line items] | |
Summary of Components of Expense Assumptions | Individual Life Group Life RMB Per Policy % of Premium RMB Per Policy % of Premium As at 31 December 2019 45.00 0.85%~0.90% 25.00 0.90% As at 31 December 2018 45.00 0.85%~0.90% 25.00 0.90% |
Summary of Net Liabilities of Insurance Contracts | (b) Net liabilities of insurance contracts As at 31 As at 31 Gross Long-term insurance contracts 2,521,331 2,189,794 Short-term insurance contracts - Claims and claim adjustment expenses 18,404 14,805 - Unearned premiums 13,001 11,432 Total, gross 2,552,736 2,216,031 Recoverable from reinsurers Long-term insurance contracts (Note 13) (3,839 ) (3,123 ) Short-term insurance contracts - Claims and claim adjustment expenses (Note 13) (145 ) (140 ) - Unearned premiums (Note 13) (369 ) (370 ) Total, ceded (4,353 ) (3,633 ) Net Long-term insurance contracts 2,517,492 2,186,671 Short-term insurance contracts - Claims and claim adjustment expenses 18,259 14,665 - Unearned premiums 12,632 11,062 Total, net 2,548,383 2,212,398 |
Summary of Movements in Liabilities of Short-Term Insurance Contracts | The table below presents movements in claims and claim adjustment expense reserve: 2019 2018 Notified claims 2,536 2,672 Incurred but not reported 12,269 11,106 Total as at 1 January - Gross 14,805 13,778 Cash paid for claims settled - Cash paid for current year claims (33,244 ) (27,165 ) - Cash paid for prior year claims (14,551 ) (12,876 ) Claims incurred - Claims arising in current year 49,727 40,601 - Claims arising in prior years 1,667 467 Total as at 31 December - Gross 18,404 14,805 Notified claims 2,781 2,536 Incurred but not reported 15,623 12,269 Total as at 31 December - Gross 18,404 14,805 |
Summary of Movements in Unearned Premium Reserves | The table below presents movements in unearned premium reserves: Gross 2019 Net Gross 2018 Net As at 1 January 11,432 (370 ) 11,062 12,289 (527 ) 11,762 Increase 13,001 (369 ) 12,632 11,432 (370 ) 11,062 Release (11,432 ) 370 (11,062 ) (12,289 ) 527 (11,762 ) As at 31 December 13,001 (369 ) 12,632 11,432 (370 ) 11,062 |
Summary of Movements in Liabilities of Long-Term Insurance Contracts | The table below presents movements in the liabilities of long-term insurance contracts: 2019 2018 As at 1 January 2,189,794 1,999,066 Premiums 497,570 480,496 Release of liabilities (i) (282,189 ) (385,761 ) Accretion of interest 114,234 99,618 Change in assumptions - Change in discount rates (4,906 ) (6,020 ) - Change in other assumptions (ii) 7,308 2,946 Other movements (480 ) (551 ) As at 31 December 2,521,331 2,189,794 (i) The release of liabilities mainly consists of release due to death or other benefits and related expenses, release of residual margin and change of reserves for claims and claim adjustment expenses. (ii) For the year ended 31 December 2019, the change in other assumptions was mainly caused by the change in morbidity rate assumptions of certain products, which increased insurance contract liabilities by RMB4,737 million. This change reflected the Group’s most recent experience and future expectations about the morbidity rates as at the reporting date. Changes in assumptions other than morbidity rates increased insurance contract liabilities by RMB2,571 million. For the year ended 31 December 2018, the change in other assumptions was mainly caused by the change in morbidity rate assumptions of certain products, which increased insurance contract liabilities by RMB3,877 million. This change reflected the Group’s most recent experience and future expectations about the morbidity rates as at the reporting date. Changes in assumptions other than morbidity rates decreased insurance contract liabilities by RMB931 million. |
Investment returns of asset portfolio backing [member] | |
Statement [line items] | |
Summary of Assumed Discount Rates with Risk Margin | The assumed discount rates with risk margin are as follows: Discount rate assumptions As at 31 December 2019 4.85% As at 31 December 2018 4.85% |
Yield curve of reserve computation benchmark for insurance contracts [member] | |
Statement [line items] | |
Summary of Assumed Discount Rates with Risk Margin | The assumed spot discount rates with risk margin for the past two years are as follows: Discount rate assumptions As at 31 December 2019 3.52%~4.83% As at 31 December 2018 3.47%~4.86% |
Investment Contracts (Tables)
Investment Contracts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Investment Contracts | As at 31 As at 31 Investment contracts with DPF at amortised cost 61,657 59,129 Investment contracts without DPF - At amortised cost 206,137 196,296 - At fair value through profit or loss 10 9 Total 267,804 255,434 |
Movements of Investment Contracts with DPF | The table below presents movements of investment contracts with DPF: 2019 2018 As at 1 January 59,129 57,153 Deposits received 4,238 4,096 Deposits withdrawn, payments on death and other benefits (2,959 ) (3,318 ) Policy fees deducted from account balances (38 ) (38 ) Interest credited 1,287 1,236 As at 31 December 61,657 59,129 |
Interest-Bearing Loans and Bo_2
Interest-Bearing Loans and Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Interest Bearing Loans and Borrowings | Maturity date Interest rate As at 31 December 2019 RMB million As at 31 Guaranteed loans 11 January 2019 1.50% — 993 Guaranteed loans 17 June 2019 3.54% — 2,385 Guaranteed loans 27 September 2019 2.30% — 6,657 Guaranteed loans 30 September 2019 2.40% — 6,451 Guaranteed loans 11 January 2020 1.50% 989 — Credit loans 6 November 2020 LIBOR+2.70%(i) 126 — Guaranteed loans 6 December 2020 EURIBOR +3.80%(ii) 3,126 3,139 Credit loans 18 January 2021 2.50% 523 525 Credit loans 25 June 2024 3.08% 2,515 — Credit loans 16 September 2024 3.30% 5,999 — Credit loans 27 September 2024 USD LIBOR+1.00% 6,767 — Total 20,045 20,150 (i) 2.70% when LIBOR is negative. (ii) 3.80% when EURIBOR is negative. |
Bonds Payable (Tables)
Bonds Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block 1 [Abstract] | |
Summary of Subordinated Bonds | Issue date Maturity date Interest rate p.a. As at 31 RMB million As at 31 22 March 2019 22 March 2029 4.28% 35,000 — Total 35,000 — |
Securities Sold under Agreeme_2
Securities Sold under Agreements to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Securities Sold under Agreements to Repurchase | As at 31 As at 31 Interbank market 63,631 125,788 Stock exchange market 54,457 66,353 Total 118,088 192,141 Maturing: Within 30 days 117,928 192,141 After 90 days 160 — Total 118,088 192,141 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Liabilities | As at 31 As at 31 Payable to the third-party holders of consolidated structured entities 21,400 9,407 Interest payable to policyholders 14,113 11,739 Salary and welfare payable 11,475 11,199 Brokerage and commission payable 7,418 5,268 Payable to constructors 3,329 3,479 Agent deposits 1,998 1,793 Interest payable of debt instruments 1,327 252 Stock appreciation rights (Note 31) 748 490 Tax payable 674 666 Others 18,632 14,133 Total 81,114 58,426 Current 81,114 58,426 Non-current — — Total 81,114 58,426 |
Investment Income (Tables)
Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Investment Income | For the year ended 31 December 2019 2018 2017 Debt securities - held-to-maturity 38,229 34,657 30,669 - available-for-sale 21,373 22,991 19,608 - at fair value through profit or loss 3,546 3,869 3,618 Equity securities - available-for-sale 21,823 16,492 27,019 - at fair value through profit or loss 981 1,284 920 Bank deposits 26,695 22,699 23,827 Loans 27,111 22,894 16,320 Securities purchased under agreements to resell 161 281 746 Total 139,919 125,167 122,727 |
Net Realised Gains on Financi_2
Net Realised Gains on Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Net Realised Gains on Financial Assets | For the year ended 31 December 2019 2018 2017 Debt securities Realised gains (i) 3,714 399 (9 ) Impairment (ii) (3,749 ) (42 ) (114 ) Subtotal (35 ) 357 (123 ) Equity securities Realised gains (i) 4,504 (11,785 ) 2,808 Impairment (ii) (2,638 ) (8,163 ) (2,643 ) Subtotal 1,866 (19,948 ) 165 Total 1,831 (19,591 ) 42 (i) Realised gains were generated mainly from available-for-sale |
Net Fair Value Gains through _2
Net Fair Value Gains through Profit or Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Net Fair Value Gains through Profit or Loss | For the year ended 31 December 2019 2018 2017 Debt securities 778 2,006 (1,542 ) Equity securities 18,279 (18,938 ) 8,179 Stock appreciation rights (258 ) 343 (179 ) Financial liabilities at fair value through profit or loss (380 ) 188 (275 ) Derivative financial instruments 832 (1,877 ) — Total 19,251 (18,278 ) 6,183 |
Insurance Benefits and Claims_2
Insurance Benefits and Claims Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Insurance Benefits and Claims Expenses | Gross Ceded Net For the year ended 31 December 2019 Life insurance death and other benefits 130,975 (3,098 ) 127,877 Accident and health claims and claim adjustment expenses 51,394 (611 ) 50,783 Increase in insurance contract liabilities 331,523 (716 ) 330,807 Total 513,892 (4,425 ) 509,467 For the year ended 31 December 2018 Life insurance death and other benefits 250,627 (1,891 ) 248,736 Accident and health claims and claim adjustment expenses 41,056 (504 ) 40,552 Increase in insurance contract liabilities 190,703 (772 ) 189,931 Total 482,386 (3,167 ) 479,219 For the year ended 31 December 2017 Life insurance death and other benefits 260,853 (1,145 ) 259,708 Accident and health claims and claim adjustment expenses 34,101 (283 ) 33,818 Increase in insurance contract liabilities 173,085 (568 ) 172,517 Total 468,039 (1,996 ) 466,043 |
Finance Costs (Tables)
Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Finance Costs | For the year ended 31 December 2019 2018 2017 Interest expenses for securities sold under agreements to repurchase 2,392 3,565 3,144 Interest expenses for interest-bearing loans and borrowings 589 551 424 Interest expenses for bonds payable 1,168 — 1,033 Interest on lease liabilities 106 — — Total 4,255 4,116 4,601 |
Profit before Income Tax (Table
Profit before Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Details of Profit before Income Tax | Profit before income tax is stated after charging/(crediting) the following: For the year ended 31 December 2019 2018 2017 Employee salaries and welfare costs 20,125 19,268 18,741 Housing benefits 1,189 1,061 933 Contribution to the defined contribution pension plan 2,905 2,531 2,357 Depreciation and amortisation 4,379 2,638 2,240 Foreign exchange losses/(gains) 67 194 (52 ) Remuneration in respect of audit services provided by auditors 60 59 59 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Taxation Charge | (a) The amount of taxation charged to net profit represents: For the year ended 31 December 2019 2018 2017 Current taxation - Enterprise income tax 614 6,397 9,457 Deferred taxation 167 (4,412 ) (538 ) Total tax charges 781 1,985 8,919 |
Summary of Reconciliation Between Group's Effective Tax Rate and the Statutory Tax Rate | (b) The reconciliation between the Group’s effective tax rate and the statutory tax rate of 25% in the PRC (2018: 25%, 2017: 25%) is as follows: For the year ended 31 December 2019 2018 2017 Profit before income tax 59,795 13,921 41,671 Tax computed at the statutory tax rate 14,949 3,480 10,418 Adjustment on current income tax of previous period (i) (5,228 ) (324 ) (40 ) Non-taxable (9,589 ) (6,771 ) (7,807 ) Expenses not deductible for tax purposes (ii) 313 5,319 6,105 Unused tax losses 239 25 6 Tax losses utilised from previous periods — (86 ) (15 ) Others 97 342 252 Income tax at the effective tax rate 781 1,985 8,919 (i) According to Cai Shui [2019] No.72, Notice on Pre-tax (ii) Non-taxable |
Summary of Movements in Deferred Tax Assets and Liabilities | (c) As at 31 December 2019 and 31 December 2018, the amounts of deferred tax assets and liabilities are as follows: As at As at Deferred tax assets 13,352 10,160 Deferred tax liabilities (23,554 ) (8,903 ) Net deferred tax assets 128 1,257 Net deferred tax liabilities (10,330 ) — As at 31 December 2019 and 31 December 2018, deferred income tax was calculated in full on temporary differences under the liability method using the principal tax rate of 25%. The movements in net deferred income tax assets and liabilities during the period are as follows: Net deferred tax assets/(liabilities) Insurance Investments Others Total (i) (ii) (iii) As at 1 January 2018 (6,737 ) (494 ) 2,360 (4,871 ) (Charged)/credited to net profit 1,421 2,713 278 4,412 (Charged)/credited to other comprehensive income - Available-for-sale — 1,673 — 1,673 - Portion of fair value changes on available-for-sale 8 — — 8 - Others — 35 — 35 As at 31 December 2018 (5,308 ) 3,927 2,638 1,257 As at 1 January 2019 (5,308 ) 3,927 2,638 1,257 (Charged)/credited to net profit 1,985 (2,428 ) 276 (167 ) (Charged)/credited to other comprehensive income - Available-for-sale — (16,260 ) — (16,260 ) - Portion of fair value changes on available-for-sale 4,880 — — 4,880 - Others — 88 — 88 As at 31 December 2019 1,557 (14,673 ) 2,914 (10,202 ) (i) The deferred tax liabilities arising from the insurance category are mainly related to the change of long-term insurance contract liabilities at 31 December 2008 as a result of the first time adoption of IFRSs in 2009 and the temporary differences of short-term insurance contract liabilities and policyholder dividends payable. (ii) The deferred tax arising from the investments category is mainly related to the temporary differences of unrealised gains/(losses) on available-for-sale (iii) The deferred tax arising from the others category is mainly related to the temporary differences of employee salaries and welfare costs payable. |
Summary of Deferred Tax Assets and Deferred Tax Liabilities | (d) The analysis of net deferred tax assets and deferred tax liabilities is as follows: As at 31 As at 31 Deferred tax assets: - deferred tax assets to be recovered after 12 months 7,508 3,947 - deferred tax assets to be recovered within 12 months 5,844 6,213 Subtotal 13,352 10,160 Deferred tax liabilities: - deferred tax liabilities to be settled after 12 months (19,906 ) (7,490 ) - deferred tax liabilities to be settled within 12 months (3,648 ) (1,413 ) Subtotal (23,554 ) (8,903 ) Net deferred tax liabilities (10,202 ) 1,257 |
Disclosures About the Tempora_2
Disclosures About the Temporary Exemption from IFRS 9 (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Fair Value of Financial Assets Under IFRS 9 and Fair Value Changes | (a) The tables below present the fair value of the following groups of financial assets (i) Fair value as at 31 December 2019 2018 Held for trading financial assets 141,608 138,717 Financial assets that are managed and whose performance are evaluated on a fair value basis — — Other financial assets - Financial assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (“SPPI”) 1,615,856 1,502,203 - Financial assets with contractual terms that do not give rise on SPPI 860,644 528,377 Total 2,618,108 2,169,297 Fair value changes for the year ended 31 December 2019 2018 Held for trading financial assets 19,057 (16,932 ) Financial assets that are managed and whose performance are evaluated on a fair value basis — — Other financial assets -Financial assets with contractual terms that give rise on SPPI 6,029 95,480 -Financial assets with contractual terms that do not give rise on SPPI 77,741 (40,447 ) Total 102,827 38,101 (i) Only including securities at fair value through profit or loss, loans (excluding policy loans), available-for-sale held-to-maturity |
Summary of Credit Risk Exposure for Financial Assets with Contractual Terms that Give Rise on SPPI | (b) The table below presents the credit risk exposure (ii) Carrying amount (iii) As at 31 December 2019 RMB Million As at 31 December Domestic Rating not required (iv) 657,905 653,328 AAA 893,336 787,908 AA+ 7,671 13,026 AA 1,163 1,152 AA- 3,000 70 Subtotal 1,563,075 1,455,484 Overseas AAA 30 — A+ 4,014 — A 3,541 1,755 A- 35 493 BBB+ 135 118 BBB- 14 14 Not rated 25 24 Subtotal 7,794 2,404 Total 1,570,869 1,457,888 (ii) Credit risk ratings for domestic assets are provided by domestic qualified external rating agencies and credit risk ratings for overseas assets are provided by overseas qualified external rating agencies. (iii) For financial assets measured at amortised cost, carrying amount before adjusting impairment allowance is disclosed here. (iv) Mainly including government bonds and policy financial bonds. |
Summary of Financial Assets Not Considered to have Low Credit Risk on Reporting Date | (c) The table below presents financial assets without low credit risk for aforementioned financial assets with contractual t As at 31 December 2019 Carrying amount (iii) Fair value Domestic 11,834 8,237 Overseas 25 9 Total 11,859 8,246 As at 31 December 2018 Carrying amount (iii) Fair value Domestic 14,248 14,539 Overseas 24 12 Total 14,272 14,551 (ii) Credit risk ratings for domestic assets are provided by domestic qualified external rating agencies and credit risk ratings for overseas assets are provided by overseas qualified external rating agencies. (iii) For financial assets measured at amortised cost, carrying amount before adjusting impairment allowance is disclosed here. (iv) Mainly including government bonds and policy financial bonds. |
Significant Related Party Tra_2
Significant Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Information of Parent Company | Information of the parent company is as follows: Name Location of Principal business Relationship with Nature of Legal CLIC Beijing, China Insurance services including receipt of premiums and payment of benefits in respect of the in-force Immediate and ultimate holding company State-owned Wang Bin |
Summary of Names of Significant Related Parties and Nature of Relationship with Company | (d) Other related parties Significant related parties Relationship with the Company China Life Real Estate Co., Limited (“CLRE”) Under common control of CLIC China Life Insurance (Overseas) Company Limited Under common control of CLIC China Life Investment Holding Company Limited (“CLI”) Under common control of CLIC China Life Ecommerce Company Limited (“CL Ecommerce”) Under common control of CLIC China Life Enterprise Annuity Fund (“EAP”) A pension fund jointly set up by the Company and others |
Summary of Registered Capital of Related Parties with Control Relationship and Changes | (e) Registered capital of related parties with control relationship and changes during the year Name of related party As at 31 December 2018 Increase Decrease As at 31 December 2019 CLIC RMB4,600 — — RMB4,600 AMC RMB4,000 — — RMB4,000 China Life Pension Company Limited (“Pension Company”) RMB3,400 — — RMB3,400 China Life (Suzhou) Pension and Retirement Investment Company Limited (“Suzhou Pension Company”) RMB1,991 — — RMB1,991 CL AMP RMB1,288 — — RMB1,288 CL Wealth RMB200 — — RMB200 Shanghai Rui Chong Investment Co., Limited (“Rui Chong Company”) RMB6,800 — — RMB6,800 China Life (Beijing) Health Management Co., Limited (“CL Health”) (i) RMB1,730 — RMB(200 ) RMB1,530 China Life Franklin (Shenzhen) Equity Investment Fund Management Co., Limited (“Franklin Shenzhen Company”) USD2 — — USD2 Xi’an Shengyi Jingsheng Real Estate Co., Ltd. (“Shengyi Jingsheng”) RMB1,131 — — RMB1,131 Dalian Hope Building Company Ltd. (“Hope Building”) RMB484 — — RMB484 (i) The Group reduced its capital contribution to CL Health by RMB200 million for the year ended 31 December 2019. As at 4 September 2019, CL Health completed the business registration modification procedure for the registered capital with the amount reduced from RMB1,730 million to RMB1,530 million. (ii) The table above does not include the partnerships and the subsidiaries which were not set up or invested in Mainland China that having control relationship with the Group. These partnerships and subsidiaries do not have related information about registered capital. |
Summary of Percentages of Holding of Related Parties with Control Relationship and Changes | (f) Percentages of holding of related parties with control relationship and changes during the year Shareholder As at 31 December 2018 As at 31 December 2019 Amount Percentage of holding Increase Decrease Amount Percentage of CLIC RMB19,324 68.37% — — RMB19,324 68.37% Subsidiaries As at 31 December 2018 As at 31 December 2019 Amount Percentage of holding Increase Decrease Amount Percentage of AMC RMB1,680 60.00% directly — — RMB1,680 60.00% directly Pension Company RMB2,746 74.27% directly and indirectly — — RMB2,746 74.27% directly and indirectly China Life Franklin Asset Management Company Limited (“AMC HK”) HKD130 50.00% indirectly — — HKD130 50.00% indirectly Suzhou Pension Company RMB1,586 100.00% directly RMB200 — RMB1,786 100.00% directly CL AMP RMB1,095 85.03% indirectly — — RMB1,095 85.03% indirectly CL Wealth RMB200 100.00% indirectly — — RMB200 100.00% indirectly Golden Phoenix Tree Limited — 100.00% directly — — — 100.00% directly King Phoenix Tree Limited — 100.00% indirectly — — — 100.00% indirectly Rui Chong Company RMB6,800 100.00% directly — — RMB6,800 100.00% directly New Aldgate Limited RMB1,167 100.00% directly — — RMB1,167 100.00% directly Glorious Fortune Forever Limited — 100.00% directly — — — 100.00% directly CL Hotel Investor, L.P. — 100.00% directly — — — 100.00% directly Golden Bamboo Limited RMB1,993 100.00% directly — — RMB1,993 100.00% directly Sunny Bamboo Limited RMB1,876 100.00% directly — — RMB1,876 100.00% directly Fortune Bamboo Limited RMB2,435 100.00% directly — — RMB2,435 100.00% directly China Century Core Fund Limited USD1,125 100.00% indirectly — — USD1,125 100.00% indirectly CL Health RMB1,730 100.00% directly — RMB(200 ) RMB1,530 100.00% directly Franklin Shenzhen Company USD2 100.00% indirectly — — USD2 100.00% indirectly Guo Yang Guo Sheng RMB3,250 99.997% directly — RMB(100 ) RMB3,150 99.997% directly New Capital Wisdom Limited — 100.00% indirectly — — — 100.00% indirectly New Fortune Wisdom Limited — 100.00% indirectly — — — 100.00% indirectly Wisdom Forever Limited Partnership USD452 100.00% indirectly — — USD452 100.00% indirectly Shanghai Yuan Shu Yuan Jiu Investment Management Partnership (Limited Partnership) RMB606 99.98% directly — — RMB606 99.98% directly Shanghai Yuan Shu Yuan Pin Investment Management Partnership (Limited Partnership) RMB606 99.98% directly — — RMB606 99.98% directly Shanghai Wansheng Industry Partnership (Limited Partnership) RMB4,000 99.98% directly — — RMB4,000 99.98% directly Ningbo Meishan Bonded Port Area Bai Ning Investment Partnership (Limited Partnership) RMB1,680 99.98% directly — — RMB1,680 99.98% directly Hope Building RMB484 100.00% indirectly — — RMB484 100.00% indirectly Wuhu Yuanxiang Tianfu Investment Management Partnership (Limited Partnership) RMB533 99.98% directly — — RMB533 99.98% directly Wuhu Yuanxiang Tianyi Investment Management Partnership (Limited Partnership) RMB533 99.98% directly — — RMB533 99.98% directly Shengyi Jingsheng RMB1,063 100.00% indirectly — — RMB1,063 100.00% indirectly CBRE Global Investors U.S. Investments I, LLC (“CG Investments”) (i) — — RMB2,859 — RMB2,859 99.99% directly China Life Guangde (Tianjin) Equity Investment Fund Partnership (Limited Partnership) (“CL Guang De”) (i) — — RMB10 — RMB10 99.95% directly (i) CG Investments and CL Guang De were newly included in the consolidated financial statements of the Group for the year ended 31 December 2019. |
Summary of Significant Transactions Carried Out by the Group with Its Significant Related Parties | The following table summarises significant transactions carried out by the Group with its significant related parties: For the year ended 31 December 2019 2018 2017 Notes RMB million RMB million RMB million Transactions with CLIC and its subsidiaries Policy management fee received from CLIC (i) (vii) 575 629 740 Asset management fee received from CLIC (ii.a) 89 100 107 Payment of dividends from the Company to CLIC 3,092 7,729 4,638 Distribution of profits from AMC to CLIC 122 128 125 Asset management fee received from CL Overseas (ii.b) 86 63 119 Asset management fee received from CLP&C (ii.c) 14 14 14 Payment of insurance premium to CLP&C 48 47 44 Claim and other payments received from CLP&C 16 14 16 Agency fee received from CLP&C (iii) (vii) 2,297 2,959 3,030 Rental and a service fee received from CLP&C 51 50 59 Dividend from CLP&C — 66 69 Payment of rental, project fee and other expenses to CLRE 43 45 50 Property leasing expenses charged by CLI (iv) 78 83 78 Payment of an asset management fee to CLI (ii.d) (vii) 653 529 396 Property leasing income received from CLI 39 37 37 Payment of a business management service fee to CL Ecommerce — 53 64 Transactions between CGB and the Group Interest on deposits received from CGB 2,584 1,425 1,382 Dividend from CGB (Note 9) 284 — — Commission expenses charged by CGB (v) 158 112 92 Capital contribution to CGB — 13,012 — Transactions between Sino-Ocean and the Group Dividend from Sino-Ocean (Note 9) 369 558 553 Interest of corporate bonds received from Sino-Ocean 27 27 27 Project management fee paid to Sino-Ocean — 2 55 Transactions between EAP and the Group Contribution to EAP 1,003 593 700 Transaction between other associates and joint ventures and the Group Distribution of profits from other associates and joint ventures to the Group (Note 9) 2,574 2,279 1,240 Transactions between AMC and the Company Payment of an asset management fee to AMC (ii.e) (vii) 1,353 1,326 1,154 Distribution of profits from AMC 183 193 187 Transactions between Pension Company and the Company Rental received from Pension Company 54 45 43 Agency fee received from Pension Company for entrusted sales of annuity funds and other businesses (vi) 54 43 42 Marketing fee income for promotion of annuity business from Pension Company 8 13 10 Transactions between AMC HK and the Company Payment of an investment management fee to AMC HK (ii.f) 18 18 14 Transactions between Suzhou Pension Company and the Company Capital contribution to Suzhou Pension Company 200 — 260 Transactions between Rui Chong Company and the Company Capital contribution to Rui Chong Company — — 601 Rental fee charged by Rui Chong Company 47 47 — Transactions between the Guo Yang Guo Sheng and the Company Capital withdrawal from Guo Yang Guo Sheng 100 — — Transactions between the CL Health and the Company Capital withdrawal from CL Health 200 — — Transactions between other associates and joint ventures and the Company Distribution of profits from other associates and joint ventures to the Company 2,210 1,424 203 Transactions between the consolidated structured entities/other subsidiaries and the Company Distribution of profits from the consolidated structured entities to the Company 10,965 8,247 3,944 Distribution of profits from the other subsidiaries to the Company 206 426 70 Notes: (i) On 26 December 2017, the Company and CLIC renewed a renewable insurance agency agreement, effective from 1 January 2018 to 31 December 2020. The Company performs its duties of insurance agents in accordance with the agreement, but does not acquire any rights and profits or assume any obligations, losses and risks as an insurer of the non-transferable (ii.a) In December 2018, CLIC renewed an asset management agreement with AMC, entrusting AMC to manage and make investments for its insurance funds. The agreement is effective from 1 January 2019 to 31 December 2021. In accordance with the agreement, CLIC paid AMC a basic service fee at the rate of 0.05% per annum for the management of insurance funds. The service fee was calculated on a monthly basis and payable on a seasonal basis, by multiplying the average book value of the assets under management (after deducting the funds obtained from and interests accrued for repurchase transactions, deducting the principal and interests of debt and equity investment schemes, project asset-backed schemes, customised non-standard non-standard (ii.b) In 2018, CL Overseas renewed an investment management agreement with AMC HK, effective from 1 January 2018 to 31 December 2022. In accordance with the agreement, CL Overseas entrusted AMC HK to manage and make investments for its insurance funds and paid AMC HK a basic investment management fee and an investment performance fee. The basic investment management fee was accrued by multiplying the weighted average total funds by the basic fee rate. The investment performance fee was calculated based on the difference between the total actual annual yields and predetermined net realised yield. The basic investment management fee was calculated and payable on a semi-annual basis. The investment performance fee was payable according to the total actual annual yield at the end of each year. (ii.c) On 15 May 2018, CLP&C renewed an agreement for the management of insurance funds with AMC, entrusting AMC to manage and make investments for its insurance funds, effective from 1 January 2018 to 31 December 2019. The agreement was subject to an automatic one-year (ii.d) On 31 December 2018, the Company and CLI renewed a management agreement of alternative investment of insurance funds, effective from 1 January 2019 to 31 December 2020. In accordance with the agreement, the Company entrusted CLI to engage in investment, operation and management of equities, real estate and related financial products, and securitised financial products under the instructions of the annual guidelines. The Company paid CLI an asset management fee and a performance related bonus based on the agreement. For fixed-income projects, the management fee rate was between 0.05% and 0.6% according to different ranges of returns; for non-fixed-income non-fixed-income (ii.e) On 28 December 2018, the Company and AMC renewed a renewable agreement for the management of insurance funds, effective from 1 January 2019 to 31 December 2021. In accordance with the agreement, the Company entrusted AMC to manage and make investments for its insurance funds and paid AMC a fixed investment management service fee and a variable investment management service fee. The fixed annual service fee was calculated and payable on a seasonal basis, by multiplying the average net value of the assets under management by the rate of 0.05%; the variable investment management service fee was payable annually, based on the results of performance evaluation, at 20% of the fixed service fee per annum. Asset management fees charged to the Company by AMC are eliminated in the consolidated statement of comprehensive income. (ii.f) On 31 December 2018, the Company and AMC HK renewed the management agreement of insurance funds investment, which is effective from 1 January 2019 to 31 December 2021. In accordance with the agreement, the Company entrusted AMC HK to manage and make investments for its insurance funds and paid AMC HK an asset management fee on a seasonal basis and the maximum investment management fee paid annually is RMB30 million. The management fee rate for financial products, such as investment plans, project asset-backed plans, customised products and insurance asset management products, set up by AMC HK in the industry permitted by regulatory policies, is set according to contractual terms. The management fee rate for the directive investment operation of term deposits, common stocks, funds, financial products and other investment products, universal account B-2 (iii) On 31 January 2018, the Company and CLP&C signed a new framework insurance agency agreement, whereby CLP&C entrusted the Company to act as an agent to sell designated P&C insurance products in certain authorised jurisdictions. The agency fee was determined based on cost (tax included) plus a margin. The agreement is effective for three years, from 8 March 2018 to 7 March 2021. (iv) On 29 December 2017, the Company renewed a property leasing agreement with CLI, effective from 1 January 2018 to 31 December 2020, pursuant to which CLI leased to the Company certain buildings of its own. Annual rental payable by the Company to CLI in relation to the CLI properties is determined either by reference to the market rent, or, the costs incurred by CLI in holding and maintaining the properties, plus a margin of approximately 5%. The rental was paid on a semi-annual basis, and each payment was equal to one half of the total annual rental. (v) On 19 October 2018, the Company and CGB renewed an insurance agency agreement to distribute insurance products. All individual insurance products suitable for distribution through bancassurance channels are included in the agreement. CGB provides agency services, including the sale of insurance products, collecting premiums and paying benefits. The Company paid the agency commission by multiplying the net amount of total premiums received from the sale of each category individual insurance products after deducting the surrender premiums in the hesitation period, by the responding fixed commission rate. The commission rates for various insurance products sold by CGB are agreed based on arm’s length transactions. The commissions are payable on a monthly basis. The agreement is effective from the signing date to 16 August 2020. On 28 December 2018, the Company and CGB signed another insurance agency agreement to distribute corporate group insurance products. The corporate group insurance products suitable for distribution through bancassurance channels are included in the agreement. The Company paid the agency commission by multiplying the net amount of total premiums received from the sale of each category group insurance product after deducting the surrender premiums, by the responding fixed commission rate. The commission rates for various insurance products sold by CGB are agreed by reference to comparable market prices of independent third-parties. The commissions are paid on a monthly basis. The agreement is effective for two years from 1 January 2019, with an automatic one-year renewal if no objections were raised by either party upon expiry. (vi) On 1 January 2019, the Company and Pension Company renewed an entrusted agency agreement for pension business acted by life business. The agreement is effective from 1 January 2019 to 31 December 2021. The business means that Pension Company entrusted the Company to sell enterprise annuity funds, pension security business, occupational pension business and the third-party asset management business. The commissions agreed upon in the agreement include the daily business commissions and the annual promotional plans commissions. According to the agreement, the commissions for the entrusting service of enterprise annuity fund management, which is the core business of Pension Company, are calculated at 30% to 80% of the annual entrusting management fee revenues, depending on the duration of the agreement. The commissions for account management service are calculated at 60% of the first year’s account management fee and were only charged for the first year, regardless of the duration of the agreement. The commissions for investment management services, in accordance with the duration of the agreement, are calculated at 60% to 3% of the annual investment management fee (excluding risk reserves for investment), and decreased annually. The commissions of the group pension plan are, in accordance with the duration of the contracts, calculated at 50% to 3% of the annual investment management fee, and decreased annually; the commissions of the personal pension plan are calculated at 30% to 50% of the annual investment management fee according to the various rates of daily management fee applied to the various individual pension management products in all of the management years; the commissions of occupation annuity and third-party asset management business are in accordance with the provision of annual promotional plans, which should be determined by both parties on a separate occasion. The commissions charged to Pension Company by the Company are eliminated in the consolidated statement of comprehensive income of the Group. (vii) These transactions constitute continuing connected transactions which are subject to reporting and announcement requirements but are exempt from independent shareholders’ approval requirements under Chapter 14A of the Listing Rules. The Company has complied with the disclosure requirements in accordance with Chapter 14A of the Listing Rules. |
Summary of Balances Due From and to Significant Related Parties | The following table summarises the balances due from and to significant related parties. The balances of the Group are all unsecured. The balance of the Group are non-interest-bearing As at 31 December 2019 As at 31 December 2018 RMB million RMB million The resulting balances due from and to significant related parties of the Group Amount due from CLIC 334 350 Amount due from CL Overseas 56 68 Amount due from CLP&C 334 284 Amount due to CLP&C (31 ) (9 ) Amount due from CLI 18 15 Amount due to CLI (401 ) (362 ) Amount due from CLRE 2 2 Amount deposited with CGB 59,420 61,880 Wealth management products and other securities of CGB 8 44 115 Amount due from CGB 894 1,557 Amount due to CGB ( 75 ) (63 ) Corporate bonds of Sino-Ocean 605 593 Amount due from Sino-Ocean 8 8 Amount due from CL Ecommerce 13 6 Amount due to CL Ecommerce ( 68 ) (67 ) The resulting balances due from and to subsidiaries of the Company Amount due to AMC (381 ) (218 ) Amount due to AMC HK (9 ) (10 ) Amount due from Pension Company 30 25 Amount due to Pension Company (35 ) (28 ) Amount due from Rui Chong Company 118 18 |
Key Management Personnel Compensation | (i) Key management personnel compensation For the year ended 31 December 2019 2018 2017 RMB million RMB million RMB million Salaries and other benefits 15 34 28 |
Share Capital, Other Equity I_2
Share Capital, Other Equity Instruments and Reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Share Capital | As at 31 December 2019 As at 31 December 2018 No. of shares RMB million No. of shares RMB million Registered, authorised, issued and fully paid Ordinary shares of RMB1 each 28,264,705,000 28,265 28,264,705,000 28,265 As at 31 December 2019, the Company’s share capital was as follows: As at 31 December 2019 No. of shares RMB million Owned by CLIC (i) 19,323,530,000 19,324 Owned by other equity holders 8,941,175,000 8,941 Including: domestic listed 1,500,000,000 1,500 overseas listed (ii) 7,441,175,000 7,441 Total 28,264,705,000 28,265 (i) All shares owned by CLIC are domestic listed shares. (ii) Overseas listed shares are traded on the Stock Exchange of Hong Kong Limited and the New York Stock Exchange. |
Summary of Other Equity Instruments Basic Information | (a) Basic information As at 31 Increase Decrease As at 31 December 2019 Core Tier 2 Capital Securities 7,791 — — 7,791 Total 7,791 — — 7,791 |
Summary of Equity Attributable to Equity Holders | (b) Equity attributable to equity holders As at 31 December 2019 As at 31 Equity attributable to equity holders of the Company 403,764 318,371 Equity attributable to ordinary equity holders of the Company 395,973 310,580 Equity attributable to other equity instruments holders of the Company 7,791 7,791 Equity attributable to non-controlling 5,578 4,919 Equity attributable to ordinary equity holders of non-controlling 5,578 4,919 |
Summary of Reserves | Share premium RMB million Other reserves RMB million Unrealised gains/ (losses) from available- for-sale securities RMB million Other comprehensive income reclassifiable to profit or loss under the equity method RMB million Statutory reserve fund RMB million Discretionary reserve fund RMB million General reserve RMB million Exchange differences on translating foreign operations RMB million Other comprehensive income non- reclassifiable to profit or loss under the equity method RMB million Total RMB million (a) (b) (c) As at 1 January 2017 53,860 1,146 5,100 (738 ) 30,166 28,225 27,241 7 — 145,007 Other comprehensive income for the year — — (7,086 ) 21 — — — (847 ) — (7,912 ) Appropriation to reserves — — — — 3,218 1,927 3,300 — — 8,445 Others — 135 — — — — — — — 135 As at 31 December 201 7 53,860 1,281 (1,986 ) (717 ) 33,384 30,152 30,541 (840 ) — 145,675 As at 1 January 2018 53,860 1,281 (1,986 ) (717 ) 33,384 30,152 30,541 (840 ) — 145,675 Other comprehensive income for the year — — (3,426 ) 770 — — — 586 — (2,070 ) Appropriation to reserves — — — — 1,275 3,218 1,392 — — 5,885 Others — (197 ) — — — — — — — (197 ) As at 31 December 2018 53,860 1,084 (5,412 ) 53 34,659 33,370 31,933 (254 ) — 149,293 Effect of associates’ adoption of new accounting standards (Note 9) — — — 16 — — — — — 16 As at 1 January 2019 53,860 1,084 (5,412 ) 69 34,659 33,370 31,933 (254 ) — 149,309 Other comprehensive income for the year — — 34,006 687 — — — 230 (76 ) 34,847 Appropriation to reserves — — — — 5,857 1,275 5,955 — — 13,087 Other comprehensive income to retained earnings — — — — — — — — (86 ) (86 ) Others — 64 — — — — — — — 64 As at 31 December 2019 53,860 1,148 28,594 756 40,516 34,645 37,888 (24 ) (162 ) 197,221 (a) Pursuant to the relevant PRC laws, the Company appropriated 10% of its net profit under Chinese Accounting Standards (“CAS”) to statutory reserve which amounted to RMB5,857 million for the year ended 31 December 2019 (2018: RMB1,275 million, 2017: RMB3,218 million). (b) Approved at the Annual General Meeting in May 2019, the Company appropriated RMB1,275 million to the discretionary reserve fund for the year ended 31 December 2018 based on net profit under CAS (2018: RMB3,218 million, 2017: RMB1,927 million). (c) Pursuant to “ Financial Standards of Financial Enterprises - Implementation Guide |
Notes to the Consolidated Sta_2
Notes to the Consolidated Statement of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Changes in Liabilities Arising From Financing Activities | Interest- bearing loans and borrowings RMB million Bonds payable RMB million Lease liabilities RMB million Securities sold under agreements to repurchase RMB million Other liability- payable to the third- party holders of consolidated structured entities RMB million Other liability- interest payable related to financing activities RMB million Total RMB million At 1 January 2017 16,170 37,998 — 81,088 5,488 813 141,557 Changes from financing 3,121 (38,000 ) — 6,228 764 (5,671 ) (33,558 ) Foreign exchange (497 ) — — — — — (497 ) Changes arising from — — — (7 ) — — (7 ) Interest expense — 2 — — — 4,985 4,987 At 31 December 2017 18,794 — — 87,309 6,252 127 112,482 At 1 January 2018 18,794 — — 87,309 6,252 127 112,482 Changes from financing cash flows 727 — — 104,832 3,155 (3,990 ) 104,724 Foreign exchange movement 629 — — — — — 629 Interest expense — — — — — 4,115 4,115 At 31 December 2018 20,150 — — 192,141 9,407 252 221,950 At 1 January 2019 20,150 — 2,185 192,141 9,407 252 224,135 Changes from financing cash flows (242 ) 34,988 (1,348 ) (73,552 ) 11,993 (3,072 ) (31,233 ) Foreign exchange movement 137 — — — — — 137 Changes arising from losing control of consolidated structured entities — — — (501 ) — — (501 ) New leases — — 2,239 — — — 2,239 Interest expense — 2 106 — — 4,147 4,255 Others — — (91 ) — — — (91 ) At 31 December 2019 20,045 34,990 3,091 118,088 21,400 1,327 198,941 |
Provisions and Contingencies (T
Provisions and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Significant Contingent Liabilities | The following is a summary of the significant contingent liabilities: As at 31 December 2019 RMB million As at 31 Pending lawsuits 523 488 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Capital Commitments Relating to Property Development Projects and Investments | The Group had the following capital commitments relating to property development projects and investments: As at 31 RMB million As at 31 Contracted, but not provided for Investments 64,866 81,217 Property, plant and equipment 3,941 4,930 Total 68,807 86,147 |
Future Minimum Lease Payments under Non-cancellable Operating Leases | The future minimum lease payments under non-cancellable As at 31 Not later than one year 1,049 Later than one year but not later than five years 1,373 Later than five years 52 Total 2,474 |
Future Minimum Rentals Receivable under Non-cancellable Operating Leases | The future minimum rentals receivable under non-cancellable As at 31 RMB million As at 31 Not later than one year 578 530 Later than one year but not later than five years 1,133 1,306 Later than five years 231 300 Total 1,942 2,136 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - New Accounting Standards and Amendments - Additional Information (Detail) - CNY (¥) ¥ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Right-of-use assets recognised | ¥ 3,520 | ||
Lease liabilities recognised | ¥ 3,091 | 0 | |
IFRS 16 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Right-of-use assets recognised | ¥ 2,555 | ¥ 2,555 | |
Lease liabilities recognised | 2,185 | ||
Adjustments for toal assets and total liabilities | ¥ 2,194 | ||
Weighted Average Incremental Borrowing Rate | 3.76% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Operating Lease Commitments And Lease Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Statement [line items] | |||
Lease liabilities | ¥ 3,091 | ¥ 0 | |
IFRS 16 [member] | |||
Statement [line items] | |||
Operating Lease Commitments | ¥ 2,474 | ||
Less: short-term leases, those leases with a remaining lease term less than 12 months from the date of initial application and leases of low-value assets | (132) | ||
Impact of discounting at the incremental borrowing rate | (157) | ||
Lease liabilities | ¥ 2,185 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives for Depreciation Purposes of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property plant and equipment | Over the shorter of the remaining term of the lease and the useful lives |
Bottom of range [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property plant and equipment | 15 years |
Bottom of range [member] | Office equipment, furniture and fixtures [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property plant and equipment | 3 years |
Bottom of range [member] | Motor vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property plant and equipment | 4 years |
Top of range [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property plant and equipment | 35 years |
Top of range [member] | Office equipment, furniture and fixtures [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property plant and equipment | 11 years |
Top of range [member] | Motor vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property plant and equipment | 8 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | |
Disclosure of detailed information about investment property [line items] | |
Estimated useful lives of investment properties | 15 years |
Top of range [member] | |
Disclosure of detailed information about investment property [line items] | |
Estimated useful lives of investment properties | 35 years |
Overseas [member] | |
Disclosure of detailed information about investment property [line items] | |
Estimated useful lives of investment properties | Not longer than 50 years |
Risk Management - Major Product
Risk Management - Major Products of Long-term Insurance Contracts (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of financial assets and liabilities and insurance liabilities [line items] | ||||
Premiums of long-term insurance contracts | ¥ 567,086 | ¥ 535,826 | ¥ 511,966 | |
Liabilities of long-term insurance contracts | 2,548,383 | 2,212,398 | ||
Gross [member] | ||||
Disclosure of financial assets and liabilities and insurance liabilities [line items] | ||||
Liabilities of long-term insurance contracts | 2,552,736 | 2,216,031 | ||
Long-term insurance contracts [member] | ||||
Disclosure of financial assets and liabilities and insurance liabilities [line items] | ||||
Liabilities of long-term insurance contracts | 2,517,492 | 2,186,671 | ||
Long-term insurance contracts [member] | Gross [member] | ||||
Disclosure of financial assets and liabilities and insurance liabilities [line items] | ||||
Premiums of long-term insurance contracts | 497,570 | 480,496 | ||
Insurance benefits of long-term insurance contracts | ¥ 80,124 | ¥ 134,398 | ||
Premiums of long-term insurance contracts percentage | 100.00% | 100.00% | ||
Insurance benefits of long-term insurance contracts percentage | 100.00% | 100.00% | ||
Liabilities of long-term insurance contracts | ¥ 2,521,331 | ¥ 2,189,794 | ¥ 1,999,066 | |
Liabilities of long-term insurance contracts percentage | 100.00% | 100.00% | ||
Xin Fu Ying Jia Annuity [member] | Long-term insurance contracts [member] | Gross [member] | ||||
Disclosure of financial assets and liabilities and insurance liabilities [line items] | ||||
Premiums of long-term insurance contracts | [1] | ¥ 37,024 | ¥ 38,397 | |
Insurance benefits of long-term insurance contracts | [1] | ¥ 1,799 | ¥ 1,847 | |
Premiums of long-term insurance contracts percentage | [1] | 7.44% | 7.99% | |
Insurance benefits of long-term insurance contracts percentage | [1] | 2.25% | 1.37% | |
Liabilities of long-term insurance contracts | [1] | ¥ 86,876 | ¥ 52,440 | |
Liabilities of long-term insurance contracts percentage | [1] | 3.45% | 2.39% | |
Xin Xiang Jin Sheng Annuity (Type A) [member] | Long-term insurance contracts [member] | Gross [member] | ||||
Disclosure of financial assets and liabilities and insurance liabilities [line items] | ||||
Premiums of long-term insurance contracts | [2] | ¥ 36,345 | ¥ 257 | |
Insurance benefits of long-term insurance contracts | [2] | ¥ 12 | ||
Premiums of long-term insurance contracts percentage | [2] | 7.30% | 0.05% | |
Insurance benefits of long-term insurance contracts percentage | [2] | 0.01% | ||
Liabilities of long-term insurance contracts | [2] | ¥ 27,554 | ¥ 193 | |
Liabilities of long-term insurance contracts percentage | [2] | 1.09% | 0.01% | |
Xin Ru Yi Annuity [member] | Long-term insurance contracts [member] | Gross [member] | ||||
Disclosure of financial assets and liabilities and insurance liabilities [line items] | ||||
Premiums of long-term insurance contracts | [3] | ¥ 21,276 | ¥ 21,960 | |
Insurance benefits of long-term insurance contracts | [3] | ¥ 3,512 | ¥ 3,526 | |
Premiums of long-term insurance contracts percentage | [3] | 4.28% | 4.57% | |
Insurance benefits of long-term insurance contracts percentage | [3] | 4.38% | 2.62% | |
Liabilities of long-term insurance contracts | [3] | ¥ 90,379 | ¥ 71,571 | |
Liabilities of long-term insurance contracts percentage | [3] | 3.58% | 3.27% | |
Kang Ning Whole Life [member] | Long-term insurance contracts [member] | Gross [member] | ||||
Disclosure of financial assets and liabilities and insurance liabilities [line items] | ||||
Premiums of long-term insurance contracts | [4] | ¥ 19,701 | ¥ 20,667 | |
Insurance benefits of long-term insurance contracts | [4] | ¥ 5,119 | ¥ 4,663 | |
Premiums of long-term insurance contracts percentage | [4] | 3.96% | 4.30% | |
Insurance benefits of long-term insurance contracts percentage | [4] | 6.39% | 3.47% | |
Liabilities of long-term insurance contracts | [4] | ¥ 309,519 | ¥ 289,230 | |
Liabilities of long-term insurance contracts percentage | [4] | 12.28% | 13.21% | |
Hong Ying Participating Endowment [member] | Long-term insurance contracts [member] | Gross [member] | ||||
Disclosure of financial assets and liabilities and insurance liabilities [line items] | ||||
Premiums of long-term insurance contracts | [5] | ¥ 558 | ¥ 1,448 | |
Insurance benefits of long-term insurance contracts | [5] | ¥ 7,906 | ¥ 28,741 | |
Premiums of long-term insurance contracts percentage | [5] | 0.11% | 0.30% | |
Insurance benefits of long-term insurance contracts percentage | [5] | 9.87% | 21.38% | |
Liabilities of long-term insurance contracts | [5] | ¥ 35,403 | ¥ 42,969 | |
Liabilities of long-term insurance contracts percentage | [5] | 1.40% | 1.96% | |
Others [member] | Long-term insurance contracts [member] | Gross [member] | ||||
Disclosure of financial assets and liabilities and insurance liabilities [line items] | ||||
Premiums of long-term insurance contracts | [6] | ¥ 382,666 | ¥ 397,767 | |
Insurance benefits of long-term insurance contracts | [6] | ¥ 61,776 | ¥ 95,621 | |
Premiums of long-term insurance contracts percentage | [6] | 76.91% | 82.79% | |
Insurance benefits of long-term insurance contracts percentage | [6] | 77.10% | 71.16% | |
Liabilities of long-term insurance contracts | [6] | ¥ 1,971,600 | ¥ 1,733,391 | |
Liabilities of long-term insurance contracts percentage | [6] | 78.20% | 79.16% | |
[1] | Xin Fu Ying Jia Annuity is an annuity insurance contract with the options for regular premium of 3 years, 5 years or 10 years. Its insured period extends from the effective date of Xin Fu Ying Jia Annuity to the corresponding date when policyholders reach the age of 88. This product is applicable to healthy policyholders between 28-day-old and 70-year-old. From the effective date to the contractual date starting to claim of Xin Fu Ying Jia Annuity, the annuity payment of first policy year is paid at 20% of the first premium of the product, and the following annuity payments are paid at 20% of the basic sum insured by Xin Fu Ying Jia Annuity. From the first corresponding date after the contractual date starting to claim of annuity, to the corresponding date when the policyholders reach the age of 88-year-old, annuity is paid at 3% of the basic sum insured during the insured period if policyholders live to the annual corresponding effective date; annuity is paid at the premium received (without interest) during the insured period if policyholders live to the contractual date starting to claim of annuity; the contract terminates and death benefit is paid at the premium received (without interest) or the cash value of the contract, whichever greater when death incurred before the contractual date starting to claim of annuity; the contract terminates and death benefit is paid at the cash value of the contract when death incurred after contractual date starting to claim of annuity; the contract terminates and accidental death benefit is paid at the premium received (without interest) less any death benefit paid when accidents occurred and due to which death incurred within 180 days. Death benefit and accidental death benefit are paid only once. | |||
[2] | Xin Xiang Jin Sheng Annuity (Type A) is an annuity insurance contract with the options for regular premium of 3 years and 5 years paid annually or monthly. Its insured period is 15 years. This product is applicable to healthy policyholders between 28-day-old and 65-year-old. To the first effective date after the fifth policy years and the first effective date after the sixth policy years, if the policyholders live, the special survival payment shall be paid at 50% of the annual premium according to the basic sum insured if the payment period is 3 years; and the survival payment shall be paid at 100% of the annual premium according to the basic sum insured if the payment period is 5 years. From the first effective date to the seventh policy years after the expiration date, if the policyholders live to the annual corresponding effective date, the annuity payment shall be paid at 24% of annual premium according to the basic sum insured if the payment period is 3 years; and the annuity payment shall be paid at 32% of annual premium according to the basic sum insured if the payment period is 5 years. If the policyholders live to the annual corresponding effective date of the expiration period, the contract terminates and maturity benefit is paid at the basic sum insured. If death incurred over insured period, the contract terminates and death benefit is paid at the premium received (without interest). | |||
[3] | Xin Ru Yi Annuity is an annuity insurance contract with the options for regular premium of 3 years, 5 years or 10 years. Its insured period extends from the effective date of Xin Ru Yi Annuity to the corresponding date when policyholders reach the age of 80. This product is applicable to healthy policyholders between 28-day-old and 70-year-old. From the effective date to the contractual date starting to claim of Xin Ru Yi Annuity, the annuity payment of the first policy year is paid at 10% of the first premium of the product, and the following annuity payments are paid at the basic sum insured by Xin Ru Yi Annuity. From the first corresponding date after the contractual date starting to claim of annuity to the corresponding date when the policyholders reach the age of 80-year-old, the annuity payment of the first policy year is paid at 110% of the basic sum insured during the insured period if policyholders live to the annual corresponding effective date; the following annuity payments increase by 10% of the basic sum on the basis of the previous payment. The maturity insurance premium is paid at the premium paid (without interest). The death benefit is paid at the larger value of the insurance premium (without interest) and the cash value of the contract at the time of the death of the insured. | |||
[4] | Kang Ning Whole Life is a whole life insurance contract with the options for single premium or regular premium of 10 years or 20 years. This product is applicable to healthy policyholders under 70-year-old. The critical illness benefit is paid at 200% of the basic sum insured. If the critical illness benefits are paid within the payment period, the insurance premium of each subsequent period shall be exempted, and the contract shall continue to be valid from the date of the payment of the critical illness benefits. Both death and disability benefits are paid at 300% of the basic sum insured less any critical illness benefits paid. | |||
[5] | Hong Ying Participating Endowment is a participating endowment insurance contract with the options for single premium or regular premium of 3 years, 5 years or 10 years. Its insured period can be 6 years, 10 years or 15 years. This product is applicable to healthy policyholders between 30-day-old and 70-year-old. Maturity benefit of a single premium policy is paid at the basic sum insured, while that of a regular premium policy is paid at the basic sum insured multiplied by the number of years of the premium payments. Disease death benefit incurred within the first policy year is paid at the premium received (without interest). Disease death benefit incurred after the first policy year is paid at the basic sum insured for a single premium policy or the basic sum insured multiplied by the number of years of premium payments for a regular premium policy. When accidents occurred during taking a train, a ship or a flight period, death benefit is paid at the basic sum multiplied by 3 insured for a single premium policy or the basic sum multiplied by 3 and times the number of years of premium payments insured for a regular premium policy. When accidents occurred out of the period of taking a train, a ship or a flight, death benefit is paid at the basic sum multiplied by 2 insured for a single premium policy or the basic sum multiplied by 2 and times the number of years of premium payments insured for a regular premium policy. | |||
[6] | Others consist of various long-term insurance contracts with no significant concentration. |
Risk Management - Major Produ_2
Risk Management - Major Products of Long-term Insurance Contracts (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Xin Fu Ying Jia Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Annuity insurance payment as percentage of first premium | 20.00% |
Annuity insurance payment percentage based on basic sum insured | 20.00% |
Extended age limit of policy holders | 88-year-old |
Annuity insurance payment percentage for extended age limit | 3.00% |
Description of insurance contract | Xin Fu Ying Jia Annuity is an annuity insurance contract with the options for regular premium of 3 years, 5 years or 10 years. Its insured period extends from the effective date of Xin Fu Ying Jia Annuity to the corresponding date when policyholders reach the age of 88. This product is applicable to healthy policyholders between 28-day-old and 70-year-old. |
Period requirement for death occurred by accidents | 180 days |
Xin Xiang Jin Sheng Annuity (Type A) [member] | Annual or monthly payments [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance coverage period | 15 years |
Annuity insurance payment for three years payment period | 24.00% |
Annuity insurance payment for five years payment period | 32.00% |
Description of insurance contract | Xin Xiang Jin Sheng Annuity (Type A) is an annuity insurance contract with the options for regular premium of 3 years and 5 years paid annually or monthly. Its insured period is 15 years. This product is applicable to healthy policyholders between 28-day-old and 65-year-old. |
Special survival payment percentage for for five years payment period | 100.00% |
Xin Xiang Jin Sheng Annuity (Type A) [member] | Annual or monthly payments [member] | First Effective Date After Five Policy Years [Member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Special survival payment percentage for for three years payment period | 50.00% |
Xin Xiang Jin Sheng Annuity (Type A) [member] | Annual or monthly payments [member] | First Effective Date After Six Policy Years [Member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Special survival payment percentage for for three years payment period | 50.00% |
Xin Ru Yi Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Annuity insurance payment as percentage of first premium | 10.00% |
Annuity insurance payment percentage based on basic sum insured | 10.00% |
Extended age limit of policy holders | 80-year-old |
Annuity insurance payment percentage for extended age limit | 110.00% |
Description of insurance contract | Xin Ru Yi Annuity is an annuity insurance contract with the options for regular premium of 3 years, 5 years or 10 years. Its insured period extends from the effective date of Xin Ru Yi Annuity to the corresponding date when policyholders reach the age of 80. This product is applicable to healthy policyholders between 28-day-old and 70-year-old. |
Kang Ning Whole Life [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Description of insurance contract | Kang Ning Whole Life is a whole life insurance contract with theoptions for single premium or regular premium of 10 years or 20 years. This product is applicable to healthy policyholders under 70-year-old. The critical illness benefit is paid at 200% of the basic sum insured.Both death and disability benefits are paid at 300% of the basic sum insured less any critical illness benefits paid. |
Hong Ying Participating Endowment [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Description of insurance contract | Hong Ying Participating Endowment is a participating endowment insurance contract with the options for single premium or regular premium of 3 years, 5 years or 10 years. Its insured period can be 6 years, 10 years or 15 years. This product is applicable to healthy policyholders between 30-day-old and 70-year-old. |
Bottom of range [member] | Xin Fu Ying Jia Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Age limit of policy holders | 28-day-old |
Bottom of range [member] | Xin Xiang Jin Sheng Annuity (Type A) [member] | Annual or monthly payments [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Age limit of policy holders | 28-day-old |
Bottom of range [member] | Xin Ru Yi Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Age limit of policy holders | 28-day-old |
Bottom of range [member] | Hong Ying Participating Endowment [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Age limit of policy holders | 30-day-old |
Top of range [member] | Xin Fu Ying Jia Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Age limit of policy holders | 70-year-old |
Top of range [member] | Xin Xiang Jin Sheng Annuity (Type A) [member] | Annual or monthly payments [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Age limit of policy holders | 65-year-old |
Top of range [member] | Xin Ru Yi Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Age limit of policy holders | 70-year-old |
Top of range [member] | Kang Ning Whole Life [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Age limit of policy holders | 70-year-old |
Top of range [member] | Hong Ying Participating Endowment [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Age limit of policy holders | 70-year-old |
Period one [member] | Xin Fu Ying Jia Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 3 years |
Period one [member] | Xin Xiang Jin Sheng Annuity (Type A) [member] | Annual or monthly payments [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 3 years |
Period one [member] | Xin Ru Yi Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 3 years |
Period one [member] | Kang Ning Whole Life [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 10 years |
Period one [member] | Hong Ying Participating Endowment [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 3 years |
Insurance coverage period | 6 years |
Period two [member] | Xin Fu Ying Jia Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 5 years |
Period two [member] | Xin Xiang Jin Sheng Annuity (Type A) [member] | Annual or monthly payments [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 5 years |
Period two [member] | Xin Ru Yi Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 5 years |
Period two [member] | Kang Ning Whole Life [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 20 years |
Period two [member] | Hong Ying Participating Endowment [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 5 years |
Insurance coverage period | 10 years |
Period three [member] | Xin Fu Ying Jia Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 10 years |
Period three [member] | Xin Ru Yi Annuity [member] | Regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 10 years |
Period three [member] | Hong Ying Participating Endowment [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Insurance premium period | 10 years |
Insurance coverage period | 15 years |
Critical illness benefit [member] | Kang Ning Whole Life [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Percentage of benefit paid on basic sum insured | 200.00% |
Death benefits [member] | Kang Ning Whole Life [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Percentage of benefit paid on basic sum insured less critical illness benefits paid | 300.00% |
Death benefits [member] | Hong Ying Participating Endowment [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Multiple of benefit paid on basic sum insured for accidents occurred during period of taking train ship or flight | 3 |
Multiple of benefit paid on basic sum insured for accidents occurred out of the period of taking train ship or flight | 2 |
Disability benefits [member] | Kang Ning Whole Life [member] | Single premium or regular premium [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Percentage of benefit paid on basic sum insured less critical illness benefits paid | 300.00% |
Risk Management - Additional In
Risk Management - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of risk management [line items] | ||
Policyholder dividends declared | ¥ 112,593 | ¥ 85,071 |
Debt securities [member] | ||
Disclosure of risk management [line items] | ||
Transfers from Level 1 to Level 2 | 13,307 | 11,215 |
Transfers from Level 2 to Level 1 | 9,716 | 16,119 |
Equity securities [member] | ||
Disclosure of risk management [line items] | ||
Transfers from Level 1 to Level 2 | 0 | 3,491 |
Transfers from Level 2 to Level 1 | ¥ 853 | 0 |
Claim ratios [member] | Short-term insurance contracts [member] | ||
Disclosure of risk management [line items] | ||
Sensitivity analysis of insurance contracts, description | if claim ratios are 100 basis points higher or lower than the current assumption | |
Claim ratios [member] | Short-term insurance contracts [member] | Bottom of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | ¥ 670 | 551 |
Claim ratios [member] | Short-term insurance contracts [member] | Top of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | ¥ 670 | 551 |
Lapse rates [member] | Long term insurance contracts [member] | ||
Disclosure of risk management [line items] | ||
Sensitivity analysis of insurance contracts, description | if lapse rates were to increase or decrease from the current best estimate by 10% | |
Lapse rates [member] | Long term insurance contracts [member] | Bottom of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | ¥ 1,336 | 1,672 |
Lapse rates [member] | Long term insurance contracts [member] | Top of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | ¥ 1,253 | ¥ 1,535 |
Credit risk [member] | ||
Disclosure of risk management [line items] | ||
Percentage of corporate bonds held by the group | 99.80% | 99.90% |
Percentage of subordinate bonds held by the group | 100.00% | 99.90% |
Percentage of deposits on bank | 99.70% | 99.90% |
Mortality and morbidity rates [member] | Long term insurance contracts [member] | ||
Disclosure of risk management [line items] | ||
Sensitivity analysis of insurance contracts, description | if mortality rates and morbidity rates were to increase or decrease from the current best estimate by 10% | |
Mortality and morbidity rates [member] | Long term insurance contracts [member] | Bottom of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | ¥ 28,045 | ¥ 23,322 |
Mortality and morbidity rates [member] | Long term insurance contracts [member] | Top of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | ¥ 29,286 | 24,177 |
Discount rates [member] | Long term insurance contracts [member] | ||
Disclosure of risk management [line items] | ||
Sensitivity analysis of insurance contracts, description | if the discount rates were 50 basis points higher or lower than the current best estimate | |
Discount rates [member] | Long term insurance contracts [member] | Bottom of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | ¥ 96,131 | 83,634 |
Discount rates [member] | Long term insurance contracts [member] | Top of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | ¥ 108,946 | 95,212 |
Interest rate risk [member] | ||
Disclosure of risk management [line items] | ||
Borrowings, interest rate description | if market interest rates were 50 basis points higher or lower with all other variables held constant | |
Interest rate risk [member] | Bottom of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | ¥ 528 | 145 |
Pre-tax available-for-sale reserve in equity | 9,854 | 13,749 |
Interest rate risk [member] | Top of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | 528 | 145 |
Pre-tax available-for-sale reserve in equity | ¥ 9,854 | 10,045 |
Equity price risk [member] | ||
Disclosure of risk management [line items] | ||
Description of equity securities prices | if the prices of all the Group’s equity securities had increased or decreased by 10% with all other variables held constant | |
Equity price risk [member] | Bottom of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | ¥ 5,641 | 5,073 |
Pre-tax available-for-sale reserve in equity | 38,559 | 24,898 |
Equity price risk [member] | Top of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | 5,641 | 5,073 |
Pre-tax available-for-sale reserve in equity | ¥ 38,559 | 34,474 |
Currency risk [member] | ||
Disclosure of risk management [line items] | ||
Description of functional currency | if RMB had strengthened or weakened by 10% against US dollar, HK dollar, GB pound, EUR and other foreign currencies, with all other variables held constant | |
Actual exchange gains (losses) | ¥ 67 | 194 |
Currency risk [member] | Bottom of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | 1,013 | 353 |
Pre-tax available-for-sale reserve in equity | 10,423 | 4,909 |
Currency risk [member] | Top of range [member] | ||
Disclosure of risk management [line items] | ||
Pre-tax profit for sensitivity analysis | 1,013 | 353 |
Pre-tax available-for-sale reserve in equity | 10,423 | 4,909 |
Liquidity risk [member] | ||
Disclosure of risk management [line items] | ||
Policyholder dividends declared | 112,593 | 85,071 |
Estimated cash out flow upon surrendered of investment contract with DPF | 61,178 | 58,669 |
Estimated cash out flow upon surrendered of investment contract without DPF | 204,037 | 194,290 |
Liquidity risk [member] | Not later than one year [member] | ||
Disclosure of risk management [line items] | ||
Policyholder dividends declared | ¥ 77,512 | 74,932 |
Quoted prices in active markets level 1 [member] | ||
Disclosure of risk management [line items] | ||
Percentage of assets measured at fair value on a recurring basis | 35.11% | |
Significant observable inputs level 2 [member] | ||
Disclosure of risk management [line items] | ||
Percentage of assets measured at fair value on a recurring basis | 44.98% | |
Significant unobservable inputs level 3 [member] | ||
Disclosure of risk management [line items] | ||
Percentage of assets measured at fair value on a recurring basis | 19.91% | |
Unconsolidated structured entities that the Group has sponsored but does not have interest in [member] | ||
Disclosure of risk management [line items] | ||
Unconsolidated structured entities, size | ¥ 600,223 | 400,419 |
Management service fee from unconsolidated structured entities | ¥ 1,749 | ¥ 1,338 |
Risk Management - Claim Develop
Risk Management - Claim Development for Short-term Insurance Contracts (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Short-term insurance contracts without impact of reinsurance [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | ¥ 175,113 |
Accumulated claims expenses paid | (156,709) |
Unpaid claims expenses | 18,404 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 21,422 |
Accumulated claims expenses paid | (21,422) |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | Not later than one year [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 20,497 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | 1 year later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 21,427 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | 2 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 21,422 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | 3 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 21,422 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | 4 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 21,422 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2016 [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 26,851 |
Accumulated claims expenses paid | (26,851) |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2016 [member] | Not later than one year [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 27,120 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2016 [member] | 1 year later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 27,303 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2016 [member] | 2 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 26,851 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2016 [member] | 3 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 26,851 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2017 [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 34,328 |
Accumulated claims expenses paid | (34,328) |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2017 [member] | Not later than one year [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 33,926 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2017 [member] | 1 year later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 34,845 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2017 [member] | 2 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 34,328 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2018 [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 42,785 |
Accumulated claims expenses paid | (40,864) |
Unpaid claims expenses | 1,921 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2018 [member] | Not later than one year [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 40,601 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2018 [member] | 1 year later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 42,785 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2019 [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 49,727 |
Accumulated claims expenses paid | (33,244) |
Unpaid claims expenses | 16,483 |
Short-term insurance contracts without impact of reinsurance [member] | Short-term insurance contracts, 2019 [member] | Not later than one year [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 49,727 |
Short-term insurance contracts with impact of reinsurance [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 173,414 |
Accumulated claims expenses paid | (155,155) |
Unpaid claims expenses | 18,259 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 21,259 |
Accumulated claims expenses paid | (21,259) |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | Not later than one year [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 20,359 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | 1 year later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 21,262 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | 2 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 21,259 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | 3 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 21,259 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2015 [member] | 4 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 21,259 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2016 [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 26,655 |
Accumulated claims expenses paid | (26,655) |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2016 [member] | Not later than one year [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 26,897 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2016 [member] | 1 year later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 27,107 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2016 [member] | 2 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 26,655 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2016 [member] | 3 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 26,655 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2017 [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 34,045 |
Accumulated claims expenses paid | (34,045) |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2017 [member] | Not later than one year [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 33,700 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2017 [member] | 1 year later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 34,560 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2017 [member] | 2 years later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 34,045 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2018 [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 42,280 |
Accumulated claims expenses paid | (40,374) |
Unpaid claims expenses | 1,906 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2018 [member] | Not later than one year [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 40,157 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2018 [member] | 1 year later [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | 42,280 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2019 [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated accumulated claims expenses | 49,175 |
Accumulated claims expenses paid | (32,822) |
Unpaid claims expenses | 16,353 |
Short-term insurance contracts with impact of reinsurance [member] | Short-term insurance contracts, 2019 [member] | Not later than one year [member] | |
Disclosure of financial assets and liabilities and insurance liabilities [line items] | |
Estimated claims expenses | ¥ 49,175 |
Risk Management - Summary of Pr
Risk Management - Summary of Primary Financial Assets and Financial Liabilities Denominated in Currencies other than RMB, Expressed in RMB Equivalent (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial assets | |||||
Held-to-maturity securities | [1] | ¥ 928,751 | ¥ 806,717 | ||
Available-for-sale securities | 1,058,957 | 870,533 | |||
Securities at fair value through profit or loss | 141,608 | 138,717 | |||
Term deposits | 535,260 | 559,341 | |||
Cash and cash equivalents | 53,306 | 50,809 | ¥ 48,586 | ¥ 67,046 | |
Total | 3,397,014 | 2,954,779 | |||
Financial liabilities | |||||
Interest-bearing loans and other borrowings | 20,045 | 20,150 | |||
Equity securities [member] | |||||
Financial assets | |||||
Available-for-sale securities | 549,166 | 373,943 | |||
Debt securities [member] | |||||
Financial assets | |||||
Held-to-maturity securities | 928,751 | 806,717 | |||
Available-for-sale securities | 509,791 | 496,590 | |||
Currency risk [member] | |||||
Financial assets | |||||
Term deposits | 8,058 | 7,502 | |||
Cash and cash equivalents | 2,715 | 2,358 | |||
Total | 136,699 | 75,062 | |||
Financial liabilities | |||||
Interest-bearing loans and other borrowings | 20,045 | 20,150 | |||
Total | 20,045 | 20,150 | |||
Currency risk [member] | Equity securities [member] | |||||
Financial assets | |||||
Available-for-sale securities | 106,514 | 51,373 | |||
Securities at fair value through profit or loss | 9,538 | 9,016 | |||
Currency risk [member] | Debt securities [member] | |||||
Financial assets | |||||
Held-to-maturity securities | 218 | 150 | |||
Loans | 1,592 | 1,766 | |||
Available-for-sale securities | 7,557 | 2,240 | |||
Securities at fair value through profit or loss | 507 | 657 | |||
Currency risk [member] | US dollar [member] | |||||
Financial assets | |||||
Term deposits | 8,026 | 7,502 | |||
Cash and cash equivalents | 1,842 | 1,768 | |||
Total | 35,318 | 28,558 | |||
Financial liabilities | |||||
Interest-bearing loans and other borrowings | 12,892 | 13,108 | |||
Total | 12,892 | 13,108 | |||
Currency risk [member] | US dollar [member] | Equity securities [member] | |||||
Financial assets | |||||
Available-for-sale securities | 11,086 | 9,994 | |||
Securities at fair value through profit or loss | 4,549 | 4,511 | |||
Currency risk [member] | US dollar [member] | Debt securities [member] | |||||
Financial assets | |||||
Held-to-maturity securities | 218 | 150 | |||
Loans | 1,592 | 1,766 | |||
Available-for-sale securities | 7,557 | 2,240 | |||
Securities at fair value through profit or loss | 448 | 627 | |||
Currency risk [member] | HK dollar [member] | |||||
Financial assets | |||||
Term deposits | 32 | ||||
Cash and cash equivalents | 444 | 261 | |||
Total | 96,564 | 41,803 | |||
Currency risk [member] | HK dollar [member] | Equity securities [member] | |||||
Financial assets | |||||
Available-for-sale securities | 95,428 | 41,379 | |||
Securities at fair value through profit or loss | 660 | 163 | |||
Currency risk [member] | GB pound [member] | |||||
Financial assets | |||||
Cash and cash equivalents | 406 | 287 | |||
Total | 1,312 | 1,257 | |||
Financial liabilities | |||||
Interest-bearing loans and other borrowings | 2,515 | 2,385 | |||
Total | 2,515 | 2,385 | |||
Currency risk [member] | GB pound [member] | Equity securities [member] | |||||
Financial assets | |||||
Securities at fair value through profit or loss | 871 | 951 | |||
Currency risk [member] | GB pound [member] | Debt securities [member] | |||||
Financial assets | |||||
Securities at fair value through profit or loss | 35 | 19 | |||
Currency risk [member] | EUR [member] | |||||
Financial assets | |||||
Cash and cash equivalents | 20 | 42 | |||
Total | 2,201 | 2,364 | |||
Financial liabilities | |||||
Interest-bearing loans and other borrowings | 4,638 | 4,657 | |||
Total | 4,638 | 4,657 | |||
Currency risk [member] | EUR [member] | Equity securities [member] | |||||
Financial assets | |||||
Securities at fair value through profit or loss | 2,166 | 2,315 | |||
Currency risk [member] | EUR [member] | Debt securities [member] | |||||
Financial assets | |||||
Securities at fair value through profit or loss | 15 | 7 | |||
Currency risk [member] | Others [member] | |||||
Financial assets | |||||
Cash and cash equivalents | 3 | ||||
Total | 1,304 | 1,080 | |||
Currency risk [member] | Others [member] | Equity securities [member] | |||||
Financial assets | |||||
Securities at fair value through profit or loss | 1,292 | 1,076 | |||
Currency risk [member] | Others [member] | Debt securities [member] | |||||
Financial assets | |||||
Securities at fair value through profit or loss | ¥ 9 | ¥ 4 | |||
[1] | The fair value of held-to-maturity securities is determined by reference with other debt securities which are measured by fair value. Please refer to Note 4.4. |
Risk Management - Contractual a
Risk Management - Contractual and Expected Undiscounted Cash Flows for Financial Assets and Liabilities and Insurance Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial assets - Contractual cash inflows | |||||
Equity securities | ¥ 605,996 | ¥ 422,780 | |||
Debt securities | 1,523,748 | 1,391,310 | |||
Loans | [1] | 608,920 | 450,251 | ||
Term deposits | 535,260 | 559,341 | |||
Statutory deposits - restricted | 6,333 | 6,333 | |||
Securities purchased under agreements to resell | 4,467 | 9,905 | |||
Accrued investment income | 41,703 | 48,402 | |||
Premiums receivable | 17,281 | 15,648 | |||
Cash and cash equivalents | 53,306 | 50,809 | ¥ 48,586 | ¥ 67,046 | |
Subtotal | 3,397,014 | 2,954,779 | |||
Financial and insurance liabilities - Expected cash outflows | |||||
Insurance contracts | 2,552,736 | 2,216,031 | |||
Investment contracts | [1] | 267,804 | 255,434 | ||
Financial and insurance liabilities - Contractual cash outflows | |||||
Securities sold under agreements to repurchase | 118,088 | 192,141 | |||
Financial liabilities at fair value through profit or loss | 3,859 | 2,680 | |||
Annuity and other insurance balances payable | 51,019 | 49,465 | |||
Interest-bearing loans and other borrowings | 20,045 | 20,150 | |||
Bonds payable | 34,990 | ||||
Lease liabilities | 3,091 | ||||
Subtotal | 3,051,632 | 2,735,901 | |||
Net cash inflow/(outflow) | 345,382 | 218,878 | |||
Without maturity [member] | |||||
Financial assets - Contractual cash inflows | |||||
Equity securities | 605,996 | 422,780 | |||
Subtotal | 605,996 | 422,780 | |||
Financial and insurance liabilities - Contractual cash outflows | |||||
Financial liabilities at fair value through profit or loss | (3,859) | (2,680) | |||
Subtotal | (3,859) | (2,680) | |||
Net cash inflow/(outflow) | 602,137 | 420,100 | |||
Not later than one year [member] | |||||
Financial assets - Contractual cash inflows | |||||
Term deposits | 107,039 | 158,920 | |||
Statutory deposits - restricted | 180 | 500 | |||
Undiscounted cash flow [member] | Not later than one year [member] | |||||
Financial assets - Contractual cash inflows | |||||
Debt securities | 107,632 | 80,801 | |||
Loans | 232,715 | 182,978 | |||
Term deposits | 119,827 | 172,525 | |||
Statutory deposits - restricted | 479 | 782 | |||
Securities purchased under agreements to resell | 4,467 | 9,905 | |||
Accrued investment income | 40,710 | 47,834 | |||
Premiums receivable | 17,281 | 15,648 | |||
Cash and cash equivalents | 53,306 | 50,809 | |||
Subtotal | 576,417 | 561,282 | |||
Financial and insurance liabilities - Expected cash outflows | |||||
Insurance contracts | 179,925 | 197,289 | |||
Investment contracts | (24,020) | (13,098) | |||
Financial and insurance liabilities - Contractual cash outflows | |||||
Securities sold under agreements to repurchase | (118,088) | (192,141) | |||
Annuity and other insurance balances payable | (51,019) | (49,465) | |||
Interest-bearing loans and other borrowings | (4,776) | (16,977) | |||
Bonds payable | (332) | ||||
Lease liabilities | (1,331) | ||||
Subtotal | (19,641) | (74,392) | |||
Net cash inflow/(outflow) | 556,776 | 486,890 | |||
Undiscounted cash flow [member] | Later than 1 year and not later than 3 years [member] | |||||
Financial assets - Contractual cash inflows | |||||
Debt securities | 319,656 | 290,449 | |||
Loans | 174,260 | 101,149 | |||
Term deposits | 184,707 | 145,634 | |||
Statutory deposits - restricted | 2,315 | 739 | |||
Accrued investment income | 561 | 540 | |||
Subtotal | 681,499 | 538,511 | |||
Financial and insurance liabilities - Expected cash outflows | |||||
Insurance contracts | 209,603 | 222,170 | |||
Investment contracts | (29,900) | (10,293) | |||
Financial and insurance liabilities - Contractual cash outflows | |||||
Interest-bearing loans and other borrowings | (1,572) | (3,798) | |||
Bonds payable | (2,996) | ||||
Lease liabilities | (1,491) | ||||
Subtotal | 173,644 | 208,079 | |||
Net cash inflow/(outflow) | 855,143 | 746,590 | |||
Undiscounted cash flow [member] | Later than 3 years and not later than 5 years [member] | |||||
Financial assets - Contractual cash inflows | |||||
Debt securities | 250,805 | 298,644 | |||
Loans | 117,001 | 88,718 | |||
Term deposits | 294,477 | 237,508 | |||
Statutory deposits - restricted | 4,594 | 6,005 | |||
Accrued investment income | 432 | 28 | |||
Subtotal | 667,309 | 630,903 | |||
Financial and insurance liabilities - Expected cash outflows | |||||
Insurance contracts | (35,264) | (13,489) | |||
Investment contracts | 23,462 | (11,422) | |||
Financial and insurance liabilities - Contractual cash outflows | |||||
Interest-bearing loans and other borrowings | (16,111) | ||||
Bonds payable | (37,996) | ||||
Lease liabilities | (440) | ||||
Subtotal | (66,349) | (24,911) | |||
Net cash inflow/(outflow) | 600,960 | 605,992 | |||
Undiscounted cash flow [member] | Later than five years [member] | |||||
Financial assets - Contractual cash inflows | |||||
Equity securities | 0 | ||||
Debt securities | 1,701,886 | 1,417,910 | |||
Loans | 191,290 | 172,050 | |||
Term deposits | 8,087 | 77,961 | |||
Subtotal | 1,901,263 | 1,667,921 | |||
Financial and insurance liabilities - Expected cash outflows | |||||
Insurance contracts | (5,015,173) | (4,391,739) | |||
Investment contracts | (606,662) | (629,318) | |||
Financial and insurance liabilities - Contractual cash outflows | |||||
Lease liabilities | (74) | ||||
Subtotal | (5,621,909) | (5,021,057) | |||
Net cash inflow/(outflow) | ¥ (3,720,646) | ¥ (3,353,136) | |||
[1] | Investment contracts at fair value through profit or loss have quoted prices in active markets, and therefore, their fair value was classified as Level 1. |
Risk Management - Capital Manag
Risk Management - Capital Management under Insurance Institution Solvency Regulations (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of computation of solvency ratio from actual capital and minimum capital [abstract] | ||
Core capital | ¥ 952,030 | ¥ 761,353 |
Actual capital | 987,067 | 761,367 |
Minimum capital | ¥ 356,953 | ¥ 303,872 |
Core solvency ratio | 267.00% | 251.00% |
Comprehensive solvency ratio | 277.00% | 251.00% |
Risk Management - Summary of Si
Risk Management - Summary of Size, Carrying Amount of Assets Recognised in Financial Statement and Maximum Exposure Relating to its Interest In Unconsolidated Structured Entities (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Funds managed by affiliated entities [member] | |||
Disclosure of unconsolidated structured entities [line items] | |||
Unconsolidated structured entities, size | ¥ 185,158 | ¥ 120,797 | |
Unconsolidated structured entities, carrying amount of assets | 6,497 | 629 | |
Unconsolidated structured entities, maximum exposure | ¥ 6,497 | ¥ 629 | |
Unconsolidated structured entities, Interest held by the Group | Investment income and service fee | Investment income and service fee | |
Funds managed by third parties [member] | |||
Disclosure of unconsolidated structured entities [line items] | |||
Unconsolidated structured entities, carrying amount of assets | ¥ 106,205 | ¥ 104,678 | |
Unconsolidated structured entities, maximum exposure | ¥ 106,205 | ¥ 104,678 | |
Unconsolidated structured entities, Interest held by the Group | Investment income | Investment income | |
Trust schemes managed by affiliated entities [member] | |||
Disclosure of unconsolidated structured entities [line items] | |||
Unconsolidated structured entities, size | ¥ 6,400 | ¥ 3,800 | |
Unconsolidated structured entities, carrying amount of assets | 3,588 | 2,680 | |
Unconsolidated structured entities, maximum exposure | ¥ 3,588 | ¥ 2,680 | |
Unconsolidated structured entities, Interest held by the Group | Investment income and service fee | Investment income and service fee | |
Trust schemes managed by third parties [member] | |||
Disclosure of unconsolidated structured entities [line items] | |||
Unconsolidated structured entities, carrying amount of assets | ¥ 71,707 | ¥ 89,769 | |
Unconsolidated structured entities, maximum exposure | ¥ 71,707 | ¥ 89,769 | |
Unconsolidated structured entities, Interest held by the Group | Investment income | Investment income | |
Debt investment schemes managed by affiliated entities [member] | |||
Disclosure of unconsolidated structured entities [line items] | |||
Unconsolidated structured entities, size | ¥ 34,025 | ¥ 59,456 | |
Unconsolidated structured entities, carrying amount of assets | 14,832 | 32,029 | |
Unconsolidated structured entities, maximum exposure | ¥ 14,832 | ¥ 32,029 | |
Unconsolidated structured entities, Interest held by the Group | Investment income and service fee | Investment income and service fee | |
Debt investment schemes managed by third parties [member] | |||
Disclosure of unconsolidated structured entities [line items] | |||
Unconsolidated structured entities, carrying amount of assets | ¥ 37,112 | ¥ 33,330 | |
Unconsolidated structured entities, maximum exposure | ¥ 37,112 | ¥ 33,330 | |
Unconsolidated structured entities, Interest held by the Group | Investment income | Investment income | |
Others managed by affiliated entities [member] | |||
Disclosure of unconsolidated structured entities [line items] | |||
Unconsolidated structured entities, size | [1] | ¥ 452,814 | ¥ 422,006 |
Unconsolidated structured entities, carrying amount of assets | [1] | 10,827 | 9,502 |
Unconsolidated structured entities, maximum exposure | [1] | ¥ 10,827 | ¥ 9,502 |
Unconsolidated structured entities, Interest held by the Group | [1] | Investment income and service fee | Investment income and service fee |
Others managed by third parties [member] | |||
Disclosure of unconsolidated structured entities [line items] | |||
Unconsolidated structured entities, carrying amount of assets | [1] | ¥ 98,003 | ¥ 110,035 |
Unconsolidated structured entities, maximum exposure | [1] | ¥ 98,003 | ¥ 110,035 |
Unconsolidated structured entities, Interest held by the Group | [1] | Investment income | Investment income |
[1] | Others included wealth management products, special asset management schemes, and asset-backed plans, etc. |
Risk Management - Quantitative
Risk Management - Quantitative Disclosures of Fair Value Measurement Hierarchy for Assets and Liabilities Measured at Fair Value (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Available-for-sale securities | |||
Available-for-sale securities | ¥ 1,058,957 | ¥ 870,533 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 141,608 | 138,717 | |
Derivative financial assets | 428 | ||
Total | 3,397,014 | 2,954,779 | |
Liabilities measured at fair value | |||
Financial liabilities at fair value through profit or loss | (3,859) | (2,680) | |
Derivative financial liabilities | (1,877) | ||
Equity securities [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 549,166 | 373,943 | |
Debt securities [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 509,791 | 496,590 | |
Fair value [member] | |||
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | [1] | 141,608 | 138,717 |
Derivative financial assets | [1] | 428 | |
Total | 1,180,357 | 988,614 | |
Liabilities measured at fair value | |||
Financial liabilities at fair value through profit or loss | (3,859) | (2,680) | |
Investment contracts at fair value through profit or loss | (10) | (9) | |
Derivative financial liabilities | [1] | (1,877) | |
Total | (3,869) | (4,566) | |
Fair value [member] | Derivative Financial Assets [Member] | |||
Securities at fair value through profit or loss | |||
Derivative financial assets | 428 | ||
Fair value [member] | Quoted prices in active markets level 1 [member] | |||
Securities at fair value through profit or loss | |||
Total | 414,396 | 329,243 | |
Liabilities measured at fair value | |||
Financial liabilities at fair value through profit or loss | (3,859) | (2,680) | |
Investment contracts at fair value through profit or loss | (10) | (9) | |
Total | (3,869) | (2,689) | |
Fair value [member] | Significant observable inputs level 2 [member] | |||
Securities at fair value through profit or loss | |||
Total | 530,968 | 480,123 | |
Fair value [member] | Significant unobservable inputs level 3 [member] | |||
Securities at fair value through profit or loss | |||
Total | 234,993 | 179,248 | |
Liabilities measured at fair value | |||
Derivative financial liabilities | (1,877) | ||
Total | (1,877) | ||
Fair value [member] | Significant unobservable inputs level 3 [member] | Derivative Financial Assets [Member] | |||
Securities at fair value through profit or loss | |||
Derivative financial assets | 428 | ||
Fair value [member] | Equity securities [member] | |||
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 56,402 | 50,714 | |
Fair value [member] | Equity securities [member] | Common stocks [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 236,323 | 143,469 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 40,281 | 35,241 | |
Fair value [member] | Equity securities [member] | Preferred stocks [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 58,314 | 32,707 | |
Fair value [member] | Equity securities [member] | Funds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 102,349 | 92,304 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 16,101 | 13,967 | |
Fair value [member] | Equity securities [member] | Wealth management products [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 32,640 | 31,348 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 0 | 1,506 | |
Fair value [member] | Equity securities [member] | Others [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 98,904 | 53,479 | |
Fair value [member] | Equity securities [member] | Others [member] | |||
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 20 | 0 | |
Fair value [member] | Equity securities [member] | Quoted prices in active markets level 1 [member] | Common stocks [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 214,206 | 113,750 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 40,070 | 34,392 | |
Fair value [member] | Equity securities [member] | Quoted prices in active markets level 1 [member] | Funds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 102,349 | 92,260 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 16,023 | 13,891 | |
Fair value [member] | Equity securities [member] | Quoted prices in active markets level 1 [member] | Others [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 0 | 34 | |
Fair value [member] | Equity securities [member] | Significant observable inputs level 2 [member] | Common stocks [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 22,117 | 15,871 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 211 | 849 | |
Fair value [member] | Equity securities [member] | Significant observable inputs level 2 [member] | Funds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 44 | ||
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 78 | 76 | |
Fair value [member] | Equity securities [member] | Significant observable inputs level 2 [member] | Wealth management products [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 32,640 | 31,348 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 1,506 | ||
Fair value [member] | Equity securities [member] | Significant observable inputs level 2 [member] | Others [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 28,319 | ||
Fair value [member] | Equity securities [member] | Significant observable inputs level 2 [member] | Others [member] | |||
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 20 | ||
Fair value [member] | Equity securities [member] | Significant unobservable inputs level 3 [member] | Common stocks [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 13,848 | ||
Fair value [member] | Equity securities [member] | Significant unobservable inputs level 3 [member] | Preferred stocks [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 58,314 | 32,707 | |
Fair value [member] | Equity securities [member] | Significant unobservable inputs level 3 [member] | Others [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 70,585 | 53,445 | |
Fair value [member] | Debt securities [member] | |||
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 85,206 | 88,003 | |
Fair value [member] | Debt securities [member] | Government bonds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 23,758 | 28,440 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 41 | 118 | |
Fair value [member] | Debt securities [member] | Government agency bonds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 171,189 | 180,273 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 6,859 | 6,760 | |
Fair value [member] | Debt securities [member] | Corporate bonds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 148,455 | 185,720 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 77,215 | 79,774 | |
Fair value [member] | Debt securities [member] | Subordinated bonds/debts [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 53,922 | 21,514 | |
Fair value [member] | Debt securities [member] | Others [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 112,467 | 80,643 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 1,091 | 1,351 | |
Fair value [member] | Debt securities [member] | Quoted prices in active markets level 1 [member] | Government bonds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 2,620 | 2,587 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 33 | 82 | |
Fair value [member] | Debt securities [member] | Quoted prices in active markets level 1 [member] | Government agency bonds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 24,305 | 53,433 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 362 | 1,556 | |
Fair value [member] | Debt securities [member] | Quoted prices in active markets level 1 [member] | Corporate bonds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 5,360 | 10,206 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 7,999 | 7,052 | |
Fair value [member] | Debt securities [member] | Quoted prices in active markets level 1 [member] | Subordinated bonds/debts [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 1,069 | ||
Fair value [member] | Debt securities [member] | Quoted prices in active markets level 1 [member] | Others [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 0 | ||
Fair value [member] | Debt securities [member] | Significant observable inputs level 2 [member] | Government bonds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 21,138 | 25,853 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 8 | 36 | |
Fair value [member] | Debt securities [member] | Significant observable inputs level 2 [member] | Government agency bonds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 146,884 | 126,840 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 6,497 | 5,204 | |
Fair value [member] | Debt securities [member] | Significant observable inputs level 2 [member] | Corporate bonds [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 143,095 | 175,514 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 69,200 | 72,722 | |
Fair value [member] | Debt securities [member] | Significant observable inputs level 2 [member] | Subordinated bonds/debts [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 52,853 | 21,314 | |
Fair value [member] | Debt securities [member] | Significant observable inputs level 2 [member] | Others [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 6,817 | 1,595 | |
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 1,091 | 1,351 | |
Fair value [member] | Debt securities [member] | Significant unobservable inputs level 3 [member] | Corporate bonds [member] | |||
Securities at fair value through profit or loss | |||
Securities at fair value through profit or loss | 16 | ||
Fair value [member] | Debt securities [member] | Significant unobservable inputs level 3 [member] | Subordinated bonds/debts [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | 200 | ||
Fair value [member] | Debt securities [member] | Significant unobservable inputs level 3 [member] | Others [member] | |||
Available-for-sale securities | |||
Available-for-sale securities | ¥ 105,650 | ¥ 79,048 | |
[1] | The estimates and judgements to determine the fair value of financial assets are described in Note 3.2. |
Risk Management - Changes in Le
Risk Management - Changes in Level 3 Assets (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in fair value measurement assets [line items] | ||
Opening balance | ¥ 3,254,403 | |
Closing balance | 3,726,734 | ¥ 3,254,403 |
Fair value [member] | ||
Changes in fair value measurement assets [line items] | ||
Closing balance | (3,869) | (4,566) |
Significant unobservable inputs level 3 [member] | Fair value [member] | ||
Changes in fair value measurement assets [line items] | ||
Opening balance | 179,248 | 147,099 |
Purchases | 82,014 | 27,646 |
Transferred into Level 3 | 16 | 180 |
Transferred out of Level 3 | (15,866) | (1,122) |
Total gains/(losses) recorded in profit or loss | 428 | |
Total gains/(losses) recorded in other comprehensive income | 3,426 | 6,470 |
Disposals | (4,200) | (161) |
Maturity | (10,073) | (864) |
Closing balance | 234,993 | 179,248 |
Opening balance | (1,877) | |
Total gains/(losses) recorded in profit or loss | 404 | (1,877) |
Disposals | 1,473 | |
Closing balance | (1,877) | |
Available-for-sale securities [member] | Significant unobservable inputs level 3 [member] | Debt securities [member] | Fair value [member] | ||
Changes in fair value measurement assets [line items] | ||
Opening balance | 79,248 | 57,333 |
Purchases | 35,453 | 19,755 |
Total gains/(losses) recorded in other comprehensive income | 221 | 3,024 |
Disposals | (200) | |
Maturity | (9,072) | (864) |
Closing balance | 105,650 | 79,248 |
Available-for-sale securities [member] | Significant unobservable inputs level 3 [member] | Equity securities [member] | Fair value [member] | ||
Changes in fair value measurement assets [line items] | ||
Opening balance | 100,000 | 89,111 |
Purchases | 46,561 | 7,891 |
Transferred into Level 3 | 180 | |
Transferred out of Level 3 | (15,866) | (467) |
Total gains/(losses) recorded in other comprehensive income | 3,205 | 3,446 |
Disposals | (4,000) | (161) |
Maturity | (1,001) | |
Closing balance | 128,899 | 100,000 |
Securities at fair value through profit or loss [member] | Significant unobservable inputs level 3 [member] | Debt securities [member] | Fair value [member] | ||
Changes in fair value measurement assets [line items] | ||
Transferred into Level 3 | 16 | |
Closing balance | 16 | |
Securities at fair value through profit or loss [member] | Significant unobservable inputs level 3 [member] | Equity securities [member] | Fair value [member] | ||
Changes in fair value measurement assets [line items] | ||
Opening balance | 655 | |
Transferred out of Level 3 | (655) | |
Derivative financial assets [member] | Significant unobservable inputs level 3 [member] | Fair value [member] | ||
Changes in fair value measurement assets [line items] | ||
Total gains/(losses) recorded in profit or loss | 428 | |
Closing balance | 428 | |
Derivative financial liabilities [member] | Significant unobservable inputs level 3 [member] | Fair value [member] | ||
Changes in fair value measurement assets [line items] | ||
Opening balance | (1,877) | |
Total gains/(losses) recorded in profit or loss | 404 | (1,877) |
Disposals | ¥ 1,473 | |
Closing balance | ¥ (1,877) |
Risk Management - Summary of In
Risk Management - Summary of Information About Significant Unobservable Inputs Used for Assets at Fair Value Classified as Level 3 (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Fair value of assets | ¥ 3,397,014 | ¥ 2,954,779 | |
Derivative financial instruments | 1,877 | ||
Fair value [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Fair value of assets | 1,180,357 | 988,614 | |
Derivative financial instruments | [1] | 1,877 | |
Fair value [member] | Significant unobservable inputs level 3 [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Fair value of assets | 234,993 | 179,248 | |
Derivative financial instruments | 1,877 | ||
Fair value [member] | Significant unobservable inputs level 3 [member] | Comparable companies approach [member] | Equity securities [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Fair value of assets | ¥ 26,265 | 34,388 | |
Valuation techniques used in fair value measurement assets | Comparable companies approach | ||
Inputs used in fair value measurement assets | Discounts for lack of marketability | ||
Relationships between fair value assets and unobservable inputs | The fair value is inversely related to the discounts for lack of marketability | ||
Fair value [member] | Significant unobservable inputs level 3 [member] | Net asset value [member] | Equity securities [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Fair value of assets | ¥ 28,346 | 23,976 | |
Valuation techniques used in fair value measurement assets | Net asset value method | ||
Inputs used in fair value measurement assets | N/A | ||
Relationships between fair value liabilities and unobservable inputs | N/A | ||
Fair value [member] | Significant unobservable inputs level 3 [member] | Discounted cash flow [member] | Equity securities [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Fair value of assets | ¥ 72,477 | 37,847 | |
Valuation techniques used in fair value measurement assets | Discounted cash flow method | ||
Inputs used in fair value measurement assets | Discount rate | ||
Relationships between fair value assets and unobservable inputs | The fair value is inversely related to discount rate | ||
Fair value [member] | Significant unobservable inputs level 3 [member] | Discounted cash flow [member] | Debt securities [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Fair value of assets | ¥ 105,666 | ¥ 79,248 | |
Valuation techniques used in fair value measurement assets | Discounted cash flow method | ||
Inputs used in fair value measurement assets | Discount rate | ||
Relationships between fair value assets and unobservable inputs | The fair value is inversely related to discount rate | ||
Fair value [member] | Significant unobservable inputs level 3 [member] | Derivative financial liabilities [member] | Comparable companies approach [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Valuation techniques used in fair value measurement liabilities | Comparable companies approach | ||
Inputs used in fair value measurement liabilities | Discounts for lack of marketability | ||
Interest rates significant unobservable inputs liabilities | 15.00% | 11.00% | |
Relationships between fair value liabilities and unobservable inputs | The fair value is inversely related to the discounts for lack of marketability | ||
Derivative financial instruments | ¥ 428 | ¥ (1,877) | |
Fair value [member] | Bottom of range [member] | Significant unobservable inputs level 3 [member] | Comparable companies approach [member] | Equity securities [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Interest rate significant unobservable inputs assets | 11.00% | 5.00% | |
Fair value [member] | Bottom of range [member] | Significant unobservable inputs level 3 [member] | Discounted cash flow [member] | Equity securities [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Interest rate significant unobservable inputs assets | 3.80% | 3.80% | |
Fair value [member] | Bottom of range [member] | Significant unobservable inputs level 3 [member] | Discounted cash flow [member] | Debt securities [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Interest rate significant unobservable inputs assets | 3.02% | 4.00% | |
Fair value [member] | Top of range [member] | Significant unobservable inputs level 3 [member] | Comparable companies approach [member] | Equity securities [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Interest rate significant unobservable inputs assets | 35.00% | 25.00% | |
Fair value [member] | Top of range [member] | Significant unobservable inputs level 3 [member] | Discounted cash flow [member] | Equity securities [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Interest rate significant unobservable inputs assets | 6.38% | 7.50% | |
Fair value [member] | Top of range [member] | Significant unobservable inputs level 3 [member] | Discounted cash flow [member] | Debt securities [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Interest rate significant unobservable inputs assets | 6.22% | 6.60% | |
[1] | The estimates and judgements to determine the fair value of financial assets are described in Note 3.2. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segments | |
Disclosure of operating segments [abstract] | |
Number of operating segments | 4 |
Segment Information - Financial
Segment Information - Financial Information of Operating Segments (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Gross written premiums | ¥ 567,086 | ¥ 535,826 | ¥ 511,966 |
Net premiums earned | 560,278 | 532,023 | 506,910 |
Investment income | 139,919 | 125,167 | 122,727 |
Net realised gains on financial assets | 1,831 | (19,591) | 42 |
Net fair value gains through profit or loss | 19,251 | (18,278) | 6,183 |
Other income | 8,195 | 8,098 | 7,493 |
Total revenues | 729,474 | 627,419 | 643,355 |
BENEFITS, CLAIMS AND EXPENSES | |||
Life insurance death and other benefits | (127,877) | (248,736) | (259,708) |
Accident and health claims and claim adjustment expenses | (50,783) | (40,552) | (33,818) |
Increase in insurance contract liabilities | (330,807) | (189,931) | (172,517) |
Investment contract benefits | (9,157) | (9,332) | (8,076) |
Policyholder dividends resulting from participation in profits | (22,375) | (19,646) | (21,871) |
Underwriting and policy acquisition costs | (81,396) | (62,705) | (64,789) |
Finance costs | (4,255) | (4,116) | (4,601) |
Administrative expenses | (40,275) | (37,486) | (35,953) |
Other expenses | (9,602) | (7,642) | (6,426) |
Statutory insurance fund contribution | (1,163) | (1,097) | (1,068) |
Total benefits, claims and expenses | (677,690) | (621,243) | (608,827) |
Net gains on investments of associates and joint ventures | 8,011 | 7,745 | |
Including: share of profit of associates and joint ventures | 9,159 | 7,745 | 7,143 |
Segment results | 59,795 | 13,921 | 41,671 |
Income tax | (781) | (1,985) | (8,919) |
Net profit | 59,014 | 11,936 | 32,752 |
Attributable to | |||
Equity holders of the Company | 58,287 | 11,395 | 32,253 |
Non-controlling interests | 727 | 541 | 499 |
Other comprehensive income attributable to equity holders of the Company | 34,847 | (2,070) | (7,912) |
Depreciation and amortisation | 4,379 | 2,638 | 2,240 |
ASSETS | |||
Financial assets | 3,381,269 | 2,942,485 | |
Others | 244,617 | 220,942 | |
Segment assets | 3,625,886 | 3,163,427 | |
Unallocated | |||
Property, plant and equipment | 51,758 | 47,281 | 42,707 |
Others | 49,090 | 43,695 | |
Total assets | 3,726,734 | 3,254,403 | |
Liabilities | |||
Insurance contracts | 2,552,736 | 2,216,031 | |
Investment contracts | 267,804 | 255,434 | |
Derivative financial instruments | 1,877 | ||
Securities sold under agreements to repurchase | 118,088 | 192,141 | |
Others | 110,757 | 72,976 | |
Segment liabilities | 3,049,385 | 2,738,459 | |
Unallocated | |||
Others | 268,007 | 192,654 | |
Total liabilities | 3,317,392 | 2,931,113 | |
Operating segments [member] | Life [member] | |||
Revenues | |||
Gross written premiums | 446,562 | 437,540 | 429,822 |
Net premiums earned | 445,719 | 436,863 | 429,267 |
Investment income | 129,334 | 116,721 | 115,316 |
Net realised gains on financial assets | 1,646 | (18,439) | 41 |
Net fair value gains through profit or loss | 16,947 | (16,946) | 5,690 |
Other income | 1,110 | 1,088 | 1,276 |
Total revenues | 594,756 | 519,287 | 551,590 |
BENEFITS, CLAIMS AND EXPENSES | |||
Life insurance death and other benefits | (124,194) | (245,786) | (257,300) |
Accident and health claims and claim adjustment expenses | 0 | ||
Increase in insurance contract liabilities | (303,479) | (167,090) | (152,110) |
Investment contract benefits | (8,810) | (9,020) | (7,798) |
Policyholder dividends resulting from participation in profits | (22,251) | (19,523) | (21,748) |
Underwriting and policy acquisition costs | (57,071) | (43,108) | (48,781) |
Finance costs | (3,288) | (3,304) | (3,967) |
Administrative expenses | (25,328) | (23,728) | (24,286) |
Other expenses | (7,120) | (5,339) | (5,508) |
Including: inter-segment expenses | (1,573) | (1,492) | (1,071) |
Statutory insurance fund contribution | (797) | (759) | (777) |
Total benefits, claims and expenses | (552,338) | (517,657) | (522,275) |
Segment results | 42,418 | 1,630 | 29,315 |
Attributable to | |||
Other comprehensive income attributable to equity holders of the Company | 31,861 | (2,579) | (7,838) |
Depreciation and amortisation | 2,671 | 1,589 | 1,513 |
ASSETS | |||
Financial assets | 3,111,140 | 2,743,378 | |
Others | 8,953 | 9,696 | |
Segment assets | 3,120,093 | 2,753,074 | |
Liabilities | |||
Insurance contracts | 2,385,407 | 2,081,822 | |
Investment contracts | 252,362 | 240,152 | |
Derivative financial instruments | 1,773 | ||
Securities sold under agreements to repurchase | 106,377 | 178,499 | |
Others | 80,820 | 46,328 | |
Segment liabilities | 2,824,966 | 2,548,574 | |
Operating segments [member] | Life [member] | Term life [member] | |||
Revenues | |||
Gross written premiums | 2,584 | 3,145 | 4,110 |
Operating segments [member] | Life [member] | Whole life [member] | |||
Revenues | |||
Gross written premiums | 61,612 | 46,375 | 36,496 |
Operating segments [member] | Life [member] | Endowment [member] | |||
Revenues | |||
Gross written premiums | 113,950 | 126,318 | 198,418 |
Operating segments [member] | Life [member] | Annuity [member] | |||
Revenues | |||
Gross written premiums | 268,416 | 261,702 | 190,798 |
Operating segments [member] | Health [member] | |||
Revenues | |||
Gross written premiums | 105,581 | 83,614 | 67,708 |
Net premiums earned | 99,575 | 80,279 | 63,323 |
Investment income | 7,849 | 6,393 | 5,454 |
Net realised gains on financial assets | 100 | (1,008) | 2 |
Net fair value gains through profit or loss | 1,027 | (927) | 269 |
Other income | 60 | 84 | 75 |
Total revenues | 108,611 | 84,821 | 69,123 |
BENEFITS, CLAIMS AND EXPENSES | |||
Life insurance death and other benefits | (3,649) | (2,922) | (2,383) |
Accident and health claims and claim adjustment expenses | (44,613) | (33,801) | (27,992) |
Increase in insurance contract liabilities | (27,209) | (22,966) | (20,249) |
Investment contract benefits | (347) | (312) | (278) |
Policyholder dividends resulting from participation in profits | (124) | (123) | (123) |
Underwriting and policy acquisition costs | (16,554) | (11,806) | (8,494) |
Finance costs | (200) | (181) | (187) |
Administrative expenses | (9,075) | (7,881) | (5,615) |
Other expenses | (692) | (487) | (376) |
Including: inter-segment expenses | (95) | (82) | (51) |
Statutory insurance fund contribution | (273) | (242) | (180) |
Total benefits, claims and expenses | (102,736) | (80,721) | (65,877) |
Segment results | 5,875 | 4,100 | 3,246 |
Attributable to | |||
Other comprehensive income attributable to equity holders of the Company | 1,931 | (141) | (370) |
Depreciation and amortisation | 917 | 505 | 351 |
ASSETS | |||
Financial assets | 183,142 | 145,889 | |
Others | 12,109 | 8,975 | |
Segment assets | 195,251 | 154,864 | |
Liabilities | |||
Insurance contracts | 158,800 | 125,743 | |
Investment contracts | 15,442 | 15,282 | |
Derivative financial instruments | 97 | ||
Securities sold under agreements to repurchase | 6,447 | 9,759 | |
Others | 5,687 | 3,607 | |
Segment liabilities | 186,376 | 154,488 | |
Operating segments [member] | Accident [member] | |||
Revenues | |||
Gross written premiums | 14,943 | 14,672 | 14,436 |
Net premiums earned | 14,984 | 14,881 | 14,320 |
Investment income | 443 | 441 | 456 |
Net realised gains on financial assets | 6 | (70) | |
Net fair value gains through profit or loss | 58 | (65) | 23 |
Total revenues | 15,491 | 15,187 | 14,799 |
BENEFITS, CLAIMS AND EXPENSES | |||
Life insurance death and other benefits | (34) | (28) | (25) |
Accident and health claims and claim adjustment expenses | (6,170) | (6,751) | (5,826) |
Increase in insurance contract liabilities | (119) | 125 | (158) |
Underwriting and policy acquisition costs | (5,443) | (4,808) | (4,565) |
Finance costs | (12) | (12) | (16) |
Administrative expenses | (2,962) | (2,982) | (3,423) |
Other expenses | (169) | (140) | (147) |
Including: inter-segment expenses | (5) | (5) | (4) |
Statutory insurance fund contribution | (93) | (96) | (111) |
Total benefits, claims and expenses | (15,002) | (14,692) | (14,271) |
Segment results | 489 | 495 | 528 |
Attributable to | |||
Other comprehensive income attributable to equity holders of the Company | 109 | (10) | (31) |
Depreciation and amortisation | 312 | 202 | 216 |
ASSETS | |||
Financial assets | 10,080 | 9,835 | |
Others | 572 | 610 | |
Segment assets | 10,652 | 10,445 | |
Liabilities | |||
Insurance contracts | 8,529 | 8,466 | |
Derivative financial instruments | 7 | ||
Securities sold under agreements to repurchase | 365 | 674 | |
Others | 346 | 211 | |
Segment liabilities | 9,240 | 9,358 | |
Operating segments [member] | Others [member] | |||
Revenues | |||
Investment income | 2,293 | 1,612 | 1,501 |
Net realised gains on financial assets | 79 | (74) | (1) |
Net fair value gains through profit or loss | 1,219 | (340) | 201 |
Other income | 8,698 | 8,505 | 7,268 |
Including: inter-segment revenue | 1,673 | 1,579 | 1,126 |
Total revenues | 12,289 | 9,703 | 8,969 |
BENEFITS, CLAIMS AND EXPENSES | |||
Underwriting and policy acquisition costs | (2,328) | (2,983) | (2,949) |
Finance costs | (755) | (619) | (431) |
Administrative expenses | (2,910) | (2,895) | (2,629) |
Other expenses | (3,294) | (3,255) | (1,521) |
Total benefits, claims and expenses | (9,287) | (9,752) | (7,530) |
Net gains on investments of associates and joint ventures | 8,011 | 7,745 | |
Including: share of profit of associates and joint ventures | 9,159 | 7,745 | 7,143 |
Segment results | 11,013 | 7,696 | 8,582 |
Attributable to | |||
Other comprehensive income attributable to equity holders of the Company | 946 | 660 | 327 |
Depreciation and amortisation | 479 | 342 | 160 |
ASSETS | |||
Financial assets | 76,907 | 43,383 | |
Others | 222,983 | 201,661 | |
Segment assets | 299,890 | 245,044 | |
Liabilities | |||
Securities sold under agreements to repurchase | 4,899 | 3,209 | |
Others | 23,904 | 22,830 | |
Segment liabilities | 28,803 | 26,039 | |
Elimination [member] | |||
Revenues | |||
Other income | (1,673) | (1,579) | (1,126) |
Including: inter-segment revenue | (1,673) | (1,579) | (1,126) |
Total revenues | (1,673) | (1,579) | (1,126) |
BENEFITS, CLAIMS AND EXPENSES | |||
Other expenses | 1,673 | 1,579 | 1,126 |
Including: inter-segment expenses | 1,673 | 1,579 | 1,126 |
Total benefits, claims and expenses | ¥ 1,673 | ¥ 1,579 | ¥ 1,126 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | ¥ 47,281 | ¥ 42,707 |
Ending balance | 51,758 | 47,281 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 65,353 | 59,259 |
Transfers upon completion | (173) | (95) |
Additions | 10,295 | 12,769 |
Transfers into investment properties | (2,977) | (5,634) |
Disposals | (998) | (946) |
Ending balance | 71,500 | 65,353 |
Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (18,047) | (16,528) |
Charge for the year | (2,490) | (2,137) |
Other additions | (48) | |
Disposals | 868 | 618 |
Ending balance | (19,717) | (18,047) |
Impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (25) | (24) |
Charge for the year | (1) | |
Ending balance | (25) | (25) |
Buildings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 26,824 | 23,185 |
Ending balance | 32,936 | 26,824 |
Buildings [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 37,262 | 32,457 |
Transfers upon completion | 7,171 | 4,889 |
Additions | 415 | 85 |
Disposals | (77) | (169) |
Ending balance | 44,771 | 37,262 |
Buildings [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (10,414) | (9,248) |
Charge for the year | (1,397) | (1,196) |
Other additions | (48) | |
Disposals | 48 | 30 |
Ending balance | (11,811) | (10,414) |
Buildings [member] | Impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (24) | (24) |
Ending balance | (24) | (24) |
Office equipment, furniture and fixtures [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 2,215 | 1,751 |
Ending balance | 2,884 | 2,215 |
Office equipment, furniture and fixtures [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 7,658 | 6,873 |
Transfers upon completion | 288 | 123 |
Additions | 1,026 | 932 |
Disposals | (604) | (270) |
Ending balance | 8,368 | 7,658 |
Office equipment, furniture and fixtures [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (5,443) | (5,122) |
Charge for the year | (620) | (578) |
Disposals | 579 | 257 |
Ending balance | (5,484) | (5,443) |
Motor vehicles [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 527 | 448 |
Ending balance | 523 | 527 |
Motor vehicles [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,340 | 1,403 |
Additions | 195 | 282 |
Disposals | (171) | (345) |
Ending balance | 1,364 | 1,340 |
Motor vehicles [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (813) | (955) |
Charge for the year | (190) | (151) |
Disposals | 162 | 293 |
Ending balance | (841) | (813) |
Assets under construction [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 16,901 | 16,696 |
Ending balance | 14,377 | 16,901 |
Assets under construction [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 16,902 | 16,696 |
Transfers upon completion | (8,164) | (5,500) |
Additions | 8,656 | 11,416 |
Transfers into investment properties | (2,977) | (5,634) |
Disposals | (39) | (76) |
Ending balance | 14,378 | 16,902 |
Assets under construction [member] | Impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1) | |
Charge for the year | (1) | |
Ending balance | (1) | (1) |
Leasehold improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 814 | 627 |
Ending balance | 1,038 | 814 |
Leasehold improvements [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 2,191 | 1,830 |
Transfers upon completion | 532 | 393 |
Additions | 3 | 54 |
Disposals | (107) | (86) |
Ending balance | 2,619 | 2,191 |
Leasehold improvements [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1,377) | (1,203) |
Charge for the year | (283) | (212) |
Disposals | 79 | 38 |
Ending balance | ¥ (1,581) | ¥ (1,377) |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment | ¥ 51,758 | ¥ 47,281 | ¥ 42,707 |
Building in process to obtain title certificates [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property plant and equipment | ¥ 8,852 | ¥ 6,798 |
Leases - Detailed Information A
Leases - Detailed Information About In Right Of Use Assets (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | |
Charge for the year | 1,197 |
Right-of-use assets at end of period | 3,520 |
IFRS 16 [Member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 2,555 |
Cost [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 2,555 |
Additions | 2,263 |
Deductions | (130) |
Right-of-use assets at end of period | 4,688 |
Accumulated depreciation [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 0 |
Charge for the year | (1,197) |
Deductions | 29 |
Right-of-use assets at end of period | (1,168) |
Impairment [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 0 |
Charge for the year | 0 |
Deductions | 0 |
Right-of-use assets at end of period | 0 |
Buildings [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at end of period | 3,519 |
Buildings [member] | IFRS 16 [Member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 2,554 |
Buildings [member] | Cost [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 2,554 |
Additions | 2,262 |
Deductions | (130) |
Right-of-use assets at end of period | 4,686 |
Buildings [member] | Accumulated depreciation [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 0 |
Charge for the year | (1,196) |
Deductions | 29 |
Right-of-use assets at end of period | (1,167) |
Buildings [member] | Impairment [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 0 |
Charge for the year | 0 |
Deductions | 0 |
Right-of-use assets at end of period | 0 |
Other assets [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at end of period | 1 |
Other assets [member] | IFRS 16 [Member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 1 |
Other assets [member] | Cost [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 1 |
Additions | 1 |
Deductions | 0 |
Right-of-use assets at end of period | 2 |
Other assets [member] | Accumulated depreciation [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 0 |
Charge for the year | (1) |
Deductions | 0 |
Right-of-use assets at end of period | (1) |
Other assets [member] | Impairment [member] | |
Right-of-use assets [line items] | |
Right-of-use assets at beginning of period | 0 |
Charge for the year | 0 |
Deductions | 0 |
Right-of-use assets at end of period | ¥ 0 |
Leases - Detailed information_2
Leases - Detailed information about in recognized profit or loss leases (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Interest on lease liabilities | ¥ 106 |
Depreciation charge of right-of-use assets | 1,197 |
Expense relating to short-term leases | 440 |
Expense relating to leases of low-value assets (except for short-term lease liabilities) | 3 |
Total | ¥ 1,746 |
Investment Properties - Summary
Investment Properties - Summary of Investment Properties (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about investment property [line items] | ||
Investment property at beginning of period | ¥ 9,747 | |
Investment property at ending of period | 12,141 | ¥ 9,747 |
Buildings [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Investment property at beginning of period | 9,747 | 3,064 |
Investment property at ending of period | 12,141 | 9,747 |
Buildings [member] | Fair value [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Investment property at beginning of period | 12,449 | 4,629 |
Investment property at ending of period | 14,870 | 12,449 |
Buildings [member] | Cost [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Investment property at beginning of period | 10,227 | 3,366 |
Additions | 3,022 | 6,875 |
Deductions | (351) | (14) |
Investment property at ending of period | 12,898 | 10,227 |
Buildings [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Investment property at beginning of period | (480) | (302) |
Additions | (325) | (186) |
Deductions | 48 | 8 |
Investment property at ending of period | ¥ (757) | ¥ (480) |
Investment Properties - Additio
Investment Properties - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about investment property [line items] | |||
Investment properties | ¥ 12,141 | ¥ 9,747 | |
Buildings [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Investment properties | 12,141 | 9,747 | ¥ 3,064 |
Buildings [member] | Fair value [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Investment properties | 14,870 | 12,449 | ¥ 4,629 |
Building in process to obtain title certificates [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Investment properties | ¥ 5,809 | ¥ 3,407 |
Investments in Associates and_3
Investments in Associates and Joint Ventures - Movement of Investments in Associates and Joint Ventures (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Investments in subsidiaries, joint ventures and associates [abstract] | ||||
Investment in associates and joint ventures, beginning balance | ¥ 201,661 | ¥ 161,472 | ||
Adjustment | [1] | (2,889) | ||
As at 1 January | 198,772 | 161,472 | ||
Change of the cost | 18,590 | 34,229 | ||
Share of profit or loss | 9,159 | 7,745 | ¥ 7,143 | |
Declared dividends | (3,227) | (2,903) | ||
Other equity movements | 1,189 | 1,118 | ||
Impairment | (1,500) | |||
Investment in associates and joint ventures, ending balance | ¥ 222,983 | ¥ 201,661 | ¥ 161,472 | |
[1] | On 1 January 2019, CGB began to adopt IFRS 9. The cumulative effect of initial adoption of IFRS 9 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. As at 1 January 2019, The Group’s retained earnings were decreased by RMB2,857 million and reserves were increased by RMB16 million. The Group’s equity as at 1 January 2019 was decreased by RMB2,841 million in total. On 1 January 2019, China Unicom began to adopt IFRS 16. The cumulative effect of initial adoption of IFRS 16 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. The Group’s retained earnings as at 1 January 2019 were decreased by RMB48 million. |
Investments in Associates and_4
Investments in Associates and Joint Ventures - Detailed Information about Movement of Investments in Associates and Joint Ventures (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Cost | ¥ 190,678 | ||||
Investment in associates and joint ventures, beginning balance | 201,661 | ¥ 161,472 | |||
Adjustment | [1] | (2,889) | |||
As at 1 January 2019 | 198,772 | 161,472 | |||
Change of cost | 18,590 | 34,229 | |||
Share of profit or loss | 9,159 | 7,745 | ¥ 7,143 | ||
Declared dividends | (3,227) | (2,903) | |||
Other equity movements | 1,189 | 1,118 | |||
Provision of impairment | (1,500) | ||||
Investment in associates and joint ventures, ending balance | 222,983 | 201,661 | ¥ 161,472 | ||
Accumulated amount of impairment | ¥ (2,510) | ||||
China Guangfa Bank Co. Ltd ("CGB") [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Associates | [2] | China Guangfa Bank Co., Ltd. ("CGB") | |||
Accounting Method | [2] | Equity Method | |||
Cost | [2] | ¥ 45,176 | |||
Investment in associates and joint ventures, beginning balance | [2] | 72,655 | |||
Adjustment | [1],[2] | (2,841) | |||
As at 1 January 2019 | [2] | 69,814 | |||
Share of profit or loss | [2] | 5,374 | |||
Declared dividends | [2] | (284) | |||
Other equity movements | [2] | 276 | |||
Investment in associates and joint ventures, ending balance | [2] | ¥ 75,180 | ¥ 72,655 | ||
Percentage of equity interest | 43.686% | [2] | 43.686% | ||
Sino-Ocean Group Holding Limited ("Sino-Ocean") [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Associates | [3] | Sino-Ocean Group Holding Limited ("Sino-Ocean") | |||
Accounting Method | [3] | Equity Method | |||
Cost | [3] | ¥ 11,245 | |||
Investment in associates and joint ventures, beginning balance | [3] | 12,812 | |||
As at 1 January 2019 | [3] | 12,812 | |||
Share of profit or loss | [3] | 545 | |||
Declared dividends | [3] | (369) | |||
Other equity movements | [3] | (101) | |||
Provision of impairment | [3] | (1,500) | |||
Investment in associates and joint ventures, ending balance | [3] | ¥ 11,387 | ¥ 12,812 | ||
Percentage of equity interest | 29.59% | [3] | 29.59% | ||
Accumulated amount of impairment | ¥ (2,510) | [3] | ¥ (1,010) | ||
China Life Property & Casualty Insurance Company Limited ("CLP&C") [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Associates | China Life Property & Casualty Insurance Company Limited ("CLP&C") | ||||
Accounting Method | Equity Method | ||||
Cost | ¥ 6,000 | ||||
Investment in associates and joint ventures, beginning balance | 7,963 | ||||
As at 1 January 2019 | 7,963 | ||||
Share of profit or loss | 849 | ||||
Other equity movements | 520 | ||||
Investment in associates and joint ventures, ending balance | ¥ 9,332 | ¥ 7,963 | |||
Percentage of equity interest | 40.00% | 40.00% | |||
COFCO Futures Company Limited ("COFCO Futures") [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Associates | COFCO Futures Company Limited ("COFCO Futures") | ||||
Accounting Method | Equity Method | ||||
Cost | ¥ 1,339 | ||||
Investment in associates and joint ventures, beginning balance | 1,501 | ||||
As at 1 January 2019 | 1,501 | ||||
Share of profit or loss | 49 | ||||
Investment in associates and joint ventures, ending balance | ¥ 1,550 | ¥ 1,501 | |||
Percentage of equity interest | 35.00% | 35.00% | |||
Sinopec Sichuan to East China Gas Pipeline Co. Ltd ("Pipeline Company") [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Associates | Sinopec Sichuan to East China Gas Pipeline Co., Ltd. ("Pipeline Company") | ||||
Accounting Method | Equity Method | ||||
Cost | ¥ 20,000 | ||||
Investment in associates and joint ventures, beginning balance | 21,387 | ||||
As at 1 January 2019 | 21,387 | ||||
Share of profit or loss | 1,146 | ||||
Declared dividends | (1,104) | ||||
Other equity movements | 4 | ||||
Investment in associates and joint ventures, ending balance | ¥ 21,433 | ¥ 21,387 | |||
Percentage of equity interest | 43.86% | 43.86% | |||
China United Network Communications Limited (China Unicom) [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Associates | [4] | China United Network Communications Limited ("China Unicom") | |||
Accounting Method | [4] | Equity Method | |||
Cost | [4] | ¥ 21,829 | |||
Investment in associates and joint ventures, beginning balance | [4] | 21,892 | |||
Adjustment | [1],[4] | (48) | |||
As at 1 January 2019 | [4] | 21,844 | |||
Share of profit or loss | [4] | 453 | |||
Declared dividends | [4] | (170) | |||
Other equity movements | [4] | (59) | |||
Investment in associates and joint ventures, ending balance | [4] | ¥ 22,068 | ¥ 21,892 | ||
Percentage of equity interest | 10.29% | [4] | 10.29% | ||
Other associates [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Associates | [5] | Others | |||
Accounting Method | [5] | Equity Method | |||
Cost | [5] | ¥ 29,231 | |||
Investment in associates and joint ventures, beginning balance | [5] | 23,524 | |||
As at 1 January 2019 | [5] | 23,524 | |||
Change of cost | [5] | 5,566 | |||
Share of profit or loss | [5] | 725 | |||
Declared dividends | [5] | (460) | |||
Other equity movements | [5] | 400 | |||
Investment in associates and joint ventures, ending balance | [5] | 29,755 | ¥ 23,524 | ||
Associates [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Cost | 134,820 | ||||
Investment in associates and joint ventures, beginning balance | 161,734 | ||||
Adjustment | [1] | (2,889) | |||
As at 1 January 2019 | 158,845 | ||||
Change of cost | 5,566 | ||||
Share of profit or loss | 9,141 | ||||
Declared dividends | (2,387) | ||||
Other equity movements | 1,040 | ||||
Provision of impairment | (1,500) | ||||
Investment in associates and joint ventures, ending balance | 170,705 | 161,734 | |||
Accumulated amount of impairment | ¥ (2,510) | ||||
Joy City Commercial Property Fund L.P. (Joy City) [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Joint Ventures | Joy City Commercial Property Fund L.P. (“Joy City”) | ||||
Accounting Method | Equity Method | ||||
Cost | ¥ 6,281 | ||||
Investment in associates and joint ventures, beginning balance | 5,787 | ||||
As at 1 January 2019 | 5,787 | ||||
Share of profit or loss | 224 | ||||
Declared dividends | (162) | ||||
Investment in associates and joint ventures, ending balance | ¥ 5,849 | 5,787 | |||
Percentage of equity interest | 66.67% | ||||
Mapleleaf Century Limited (MCL) [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Joint Ventures | Mapleleaf Century Limited (“MCL”) | ||||
Accounting Method | Equity Method | ||||
Cost | ¥ 7,656 | ||||
Investment in associates and joint ventures, beginning balance | 5,741 | ||||
As at 1 January 2019 | 5,741 | ||||
Change of cost | 17 | ||||
Share of profit or loss | (596) | ||||
Other equity movements | (22) | ||||
Investment in associates and joint ventures, ending balance | ¥ 5,140 | 5,741 | |||
Percentage of equity interest | 75.00% | ||||
Other joint ventures [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Joint Ventures | [5] | Others | |||
Accounting Method | [5] | Equity Method | |||
Cost | [5] | ¥ 41,921 | |||
Investment in associates and joint ventures, beginning balance | [5] | 28,399 | |||
As at 1 January 2019 | [5] | 28,399 | |||
Change of cost | [5] | 13,007 | |||
Share of profit or loss | [5] | 390 | |||
Declared dividends | [5] | (678) | |||
Other equity movements | [5] | 171 | |||
Investment in associates and joint ventures, ending balance | [5] | 41,289 | 28,399 | ||
Joint ventures [member] | |||||
Disclosure of significant investments in associates and joint ventures [line items] | |||||
Cost | 55,858 | ||||
Investment in associates and joint ventures, beginning balance | 39,927 | ||||
As at 1 January 2019 | 39,927 | ||||
Change of cost | 13,024 | ||||
Share of profit or loss | 18 | ||||
Declared dividends | (840) | ||||
Other equity movements | 149 | ||||
Investment in associates and joint ventures, ending balance | ¥ 52,278 | ¥ 39,927 | |||
[1] | On 1 January 2019, CGB began to adopt IFRS 9. The cumulative effect of initial adoption of IFRS 9 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. As at 1 January 2019, The Group’s retained earnings were decreased by RMB2,857 million and reserves were increased by RMB16 million. The Group’s equity as at 1 January 2019 was decreased by RMB2,841 million in total. On 1 January 2019, China Unicom began to adopt IFRS 16. The cumulative effect of initial adoption of IFRS 16 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. The Group’s retained earnings as at 1 January 2019 were decreased by RMB48 million. | ||||
[2] | The 2018 final dividend of RMB0.033 in cash per ordinary share was approved and declared in the Annual General Meeting of CGB on 16 August 2019. The Company received a cash dividend of RMB284 million. | ||||
[3] | The 2018 final dividend of HKD0.073 in cash per ordinary share was approved and declared in the Annual General Meeting of Sino-Ocean on 16 May 2019. The Company received a cash dividend equivalent to RMB145 million. The 2019 interim dividend of HKD0.110 in cash per ordinary share was approved and declared by the board of directors of Sino-Ocean on 21 August 2019. The Company received a cash dividend equivalent to RMB224 million. Sino-Ocean, the Group’s associate is listed in Hong Kong. On 31 December 2019, the stock price of Sino-Ocean was HKD3.13 per share. As at 31 December 2018, the cumulative impairment loss of RMB1.01 billion for the investment in Sino-Ocean had been recognised by the Group. The Group performed an impairment test to this investment on 31 December 2019. An impairment loss of RMB1.50 billion was recognised for this investment valued using the discounted future cash flow method for the year ended 31 December 2019. In the valuation, the Group separated the development property and investment property by considering the different future cash flow features. The discount rates applied in the valuation were 10% and 8% for development property and investment property, respectively. | ||||
[4] | The 2018 final dividend of RMB0.0533 in cash per ordinary share was approved and declared in the Annual General Meeting of China Unicom on 8 May 2019. The Company received a cash dividend of RMB170 million. As at 31 December 2019, China Unicom’s share price is RMB5.89 per share. | ||||
[5] | The Group invested in real estate, industrial logistics assets and other industries through these enterprises. |
Investments in Associates and_5
Investments in Associates and Joint Ventures - Detailed Information about Movement of Investments in Associates and Joint Ventures (Parenthetical) (Detail) ¥ / shares in Units, ¥ in Millions | Aug. 21, 2019CNY (¥) | Aug. 21, 2019$ / shares | Aug. 16, 2019CNY (¥)¥ / shares | May 16, 2019$ / shares | May 08, 2019CNY (¥)¥ / shares | Jan. 01, 2019CNY (¥) | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019$ / shares |
Disclosure of significant investments in associates and joint ventures [line items] | ||||||||||
Decrease In Equity | ¥ (4,985) | ¥ (11,931) | ¥ (7,164) | |||||||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | IFRS 16 [Member] | ||||||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||||||
Decrease In Retained earnings | ¥ 48 | |||||||||
China Guangfa Bank Co. Ltd ("CGB") [member] | ||||||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||||||
Cash dividend received | ¥ 284 | |||||||||
Cash dividend declared, per share | ¥ / shares | ¥ 0.033 | |||||||||
China Guangfa Bank Co. Ltd ("CGB") [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||||||
Decrease In Retained earnings | 2,857 | |||||||||
Increase Reserve | 16 | |||||||||
Decrease In Equity | ¥ 2,841 | |||||||||
Sino-Ocean Group Holding Limited ("Sino-Ocean") [member] | ||||||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||||||
Cash dividend received | ¥ 224 | ¥ 145 | ||||||||
Cash dividend declared, per share | $ / shares | $ 0.110 | $ 0.073 | ||||||||
Per share value | $ / shares | $ 3.13 | |||||||||
Impairment Loss | ¥ 1,500 | ¥ 1,010 | ||||||||
Sino-Ocean Group Holding Limited ("Sino-Ocean") [member] | Investment property [member] | ||||||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||||||
Discount rates | 8.00% | |||||||||
Sino-Ocean Group Holding Limited ("Sino-Ocean") [member] | Development property [member] | ||||||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||||||
Discount rates | 10.00% | |||||||||
China United Network Communications Limited (China Unicom) [member] | ||||||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||||||
Cash dividend received | ¥ 170 | |||||||||
Cash dividend declared, per share | ¥ / shares | ¥ 0.0533 | |||||||||
Per share value | ¥ / shares | ¥ 5.89 | |||||||||
Restricted period of the investment | 36 months |
Investments in Associates and_6
Investments in Associates and Joint Ventures - Major Associates and Joint Venture (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
China Guangfa Bank Co. Ltd ("CGB") [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Place of incorporation | PRC | PRC | |
Percentage of equity interest held | 43.686% | [1] | 43.686% |
Sino-Ocean Group Holding Limited ("Sino-Ocean") [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Place of incorporation | Hong Kong, PRC | Hong Kong, PRC | |
Percentage of equity interest held | 29.59% | [2] | 29.59% |
China Life Property & Casualty Insurance Company Limited ("CLP&C") [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Place of incorporation | PRC | PRC | |
Percentage of equity interest held | 40.00% | 40.00% | |
COFCO Futures Company Limited ("COFCO Futures") [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Place of incorporation | PRC | PRC | |
Percentage of equity interest held | 35.00% | 35.00% | |
Sinopec Sichuan to East China Gas Pipeline Co. Ltd ("Pipeline Company") [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Place of incorporation | PRC | PRC | |
Percentage of equity interest held | 43.86% | 43.86% | |
China United Network Communications Limited (China Unicom) [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Place of incorporation | PRC | PRC | |
Percentage of equity interest held | 10.29% | [3] | 10.29% |
Joy City Commercial Property Fund L.P. (Joy City) [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Country of incorporation | The British Cayman Islands | The British Cayman Islands | |
Percentage of equity interest held | 66.67% | 66.67% | |
Mapleleaf Century Limited (MCL) [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Country of incorporation | The British Virgin Islands | The British Virgin Islands | |
Percentage of equity interest held | 75.00% | 75.00% | |
[1] | The 2018 final dividend of RMB0.033 in cash per ordinary share was approved and declared in the Annual General Meeting of CGB on 16 August 2019. The Company received a cash dividend of RMB284 million. | ||
[2] | The 2018 final dividend of HKD0.073 in cash per ordinary share was approved and declared in the Annual General Meeting of Sino-Ocean on 16 May 2019. The Company received a cash dividend equivalent to RMB145 million. The 2019 interim dividend of HKD0.110 in cash per ordinary share was approved and declared by the board of directors of Sino-Ocean on 21 August 2019. The Company received a cash dividend equivalent to RMB224 million. Sino-Ocean, the Group’s associate is listed in Hong Kong. On 31 December 2019, the stock price of Sino-Ocean was HKD3.13 per share. As at 31 December 2018, the cumulative impairment loss of RMB1.01 billion for the investment in Sino-Ocean had been recognised by the Group. The Group performed an impairment test to this investment on 31 December 2019. An impairment loss of RMB1.50 billion was recognised for this investment valued using the discounted future cash flow method for the year ended 31 December 2019. In the valuation, the Group separated the development property and investment property by considering the different future cash flow features. The discount rates applied in the valuation were 10% and 8% for development property and investment property, respectively. | ||
[3] | The 2018 final dividend of RMB0.0533 in cash per ordinary share was approved and declared in the Annual General Meeting of China Unicom on 8 May 2019. The Company received a cash dividend of RMB170 million. As at 31 December 2019, China Unicom’s share price is RMB5.89 per share. |
Investments in Associates and_7
Investments in Associates and Joint Ventures - Financial Information of Major Associates and Joint Venture (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||
Total assets | ¥ 3,726,734 | ¥ 3,254,403 | ||||
Total liabilities | 3,317,392 | 2,931,113 | ||||
Total equity | 409,342 | 323,290 | ¥ 325,310 | ¥ 307,648 | ||
Impairment | (2,510) | |||||
Net carrying value of the investments | 222,983 | 201,661 | 161,472 | |||
Total revenues | 729,474 | 627,419 | 643,355 | |||
Net profit/(loss) | 59,014 | 11,936 | 32,752 | |||
Other comprehensive income | 34,912 | (2,025) | (7,926) | |||
Total comprehensive income | 93,926 | 9,911 | ¥ 24,826 | |||
China Guangfa Bank Co. Ltd ("CGB") [member] | ||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||
Total assets | 2,632,798 | 2,373,291 | ||||
Total liabilities | 2,423,234 | 2,214,781 | ||||
Total equity | 209,564 | 158,510 | ||||
Total equity attributable to equity holders of the associates and joint ventures | 164,573 | 158,510 | ||||
Total adjustments | [1] | 412 | 933 | |||
Total equity attributable to equity holders of the associates and joint ventures after adjustments | ¥ 164,985 | ¥ 159,443 | ||||
Proportion of the Group's ownership | 43.686% | [2] | 43.686% | |||
Gross carrying value of the investments | ¥ 75,180 | ¥ 72,655 | ||||
Net carrying value of the investments | [2] | 75,180 | 72,655 | |||
Total revenues | 76,312 | 59,279 | ||||
Net profit/(loss) | 12,581 | 10,707 | ||||
Other comprehensive income | 643 | 4,160 | ||||
Total comprehensive income | 13,224 | 14,867 | ||||
Sino-Ocean Group Holding Limited ("Sino-Ocean") [member] | ||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||
Total assets | 243,700 | 249,362 | ||||
Total liabilities | 178,088 | 186,224 | ||||
Total equity | 65,612 | 63,138 | ||||
Total equity attributable to equity holders of the associates and joint ventures | 49,909 | 48,385 | ||||
Total adjustments | [1] | (6,209) | (4,938) | |||
Total equity attributable to equity holders of the associates and joint ventures after adjustments | ¥ 43,700 | ¥ 43,447 | ||||
Proportion of the Group's ownership | 29.59% | [3] | 29.59% | |||
Gross carrying value of the investments | ¥ 13,897 | ¥ 13,822 | ||||
Impairment | (2,510) | [3] | (1,010) | |||
Net carrying value of the investments | [3] | 11,387 | 12,812 | |||
Total revenues | 56,704 | 48,821 | ||||
Net profit/(loss) | 4,166 | 4,666 | ||||
Other comprehensive income | 152 | (1,518) | ||||
Total comprehensive income | 4,318 | 3,148 | ||||
China Life Property & Casualty Insurance Company Limited ("CLP&C") [member] | ||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||
Total assets | 91,167 | 83,561 | ||||
Total liabilities | 67,837 | 63,654 | ||||
Total equity | 23,330 | 19,907 | ||||
Total equity attributable to equity holders of the associates and joint ventures | 23,330 | 19,907 | ||||
Total adjustments | [1] | 0 | ||||
Total equity attributable to equity holders of the associates and joint ventures after adjustments | ¥ 23,330 | ¥ 19,907 | ||||
Proportion of the Group's ownership | 40.00% | 40.00% | ||||
Gross carrying value of the investments | ¥ 9,332 | ¥ 7,963 | ||||
Net carrying value of the investments | 9,332 | 7,963 | ||||
Total revenues | 69,498 | 65,564 | ||||
Net profit/(loss) | 2,123 | 121 | ||||
Other comprehensive income | 1,310 | (503) | ||||
Total comprehensive income | 3,433 | (382) | ||||
COFCO Futures Company Limited ("COFCO Futures") [member] | ||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||
Total assets | 12,671 | 8,986 | ||||
Total liabilities | 9,792 | 6,246 | ||||
Total equity | 2,879 | 2,740 | ||||
Total equity attributable to equity holders of the associates and joint ventures | 2,872 | 2,732 | ||||
Total adjustments | [1] | 0 | ||||
Total equity attributable to equity holders of the associates and joint ventures after adjustments | ¥ 2,872 | ¥ 2,732 | ||||
Proportion of the Group's ownership | 35.00% | 35.00% | ||||
Gross carrying value of the investments | ¥ 1,550 | ¥ 1,501 | ||||
Net carrying value of the investments | 1,550 | 1,501 | ||||
Total revenues | 793 | 643 | ||||
Net profit/(loss) | 153 | 98 | ||||
Other comprehensive income | 1 | 1 | ||||
Total comprehensive income | 154 | 99 | ||||
Sinopec Sichuan to East China Gas Pipeline Co. Ltd ("Pipeline Company") [member] | ||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||
Total assets | 36,327 | 36,467 | ||||
Total liabilities | 777 | 1,043 | ||||
Total equity | 35,550 | 35,424 | ||||
Total equity attributable to equity holders of the associates and joint ventures | 35,550 | 35,424 | ||||
Total adjustments | [1] | 449 | 470 | |||
Total equity attributable to equity holders of the associates and joint ventures after adjustments | ¥ 35,999 | ¥ 35,894 | ||||
Proportion of the Group's ownership | 43.86% | 43.86% | ||||
Gross carrying value of the investments | ¥ 21,433 | ¥ 21,387 | ||||
Net carrying value of the investments | 21,433 | 21,387 | ||||
Total revenues | 5,008 | 4,746 | ||||
Net profit/(loss) | 2,635 | 2,545 | ||||
Other comprehensive income | 0 | |||||
Total comprehensive income | 2,635 | 2,545 | ||||
China United Network Communications Limited (China Unicom) [member] | ||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||
Total assets | 564,231 | 541,762 | ||||
Total liabilities | 240,735 | 224,822 | ||||
Total equity | 323,496 | 316,940 | ||||
Total equity attributable to equity holders of the associates and joint ventures | 143,327 | 140,144 | ||||
Total adjustments | [1] | 17,454 | 17,926 | |||
Total equity attributable to equity holders of the associates and joint ventures after adjustments | ¥ 160,781 | ¥ 158,070 | ||||
Proportion of the Group's ownership | 10.29% | [4] | 10.29% | |||
Gross carrying value of the investments | ¥ 22,068 | ¥ 21,892 | ||||
Net carrying value of the investments | [4] | 22,068 | 21,892 | |||
Total revenues | 291,435 | 290,877 | ||||
Net profit/(loss) | 11,264 | 9,301 | ||||
Other comprehensive income | (501) | (245) | ||||
Total comprehensive income | 10,763 | 9,056 | ||||
Joy City Commercial Property Fund L.P. (Joy City) [member] | ||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||
Total assets | 10,281 | 10,243 | ||||
Total liabilities | 168 | 265 | ||||
Total equity | 10,113 | 9,978 | ||||
Total equity attributable to equity holders of the associates and joint ventures | 10,113 | 9,978 | ||||
Total adjustments | [1] | (1,339) | (1,297) | |||
Total equity attributable to equity holders of the associates and joint ventures after adjustments | ¥ 8,774 | ¥ 8,681 | ||||
Proportion of the Group's ownership | 66.67% | 66.67% | ||||
Gross carrying value of the investments | ¥ 5,849 | ¥ 5,787 | ||||
Net carrying value of the investments | 5,849 | 5,787 | ||||
Total revenues | 306 | 457 | ||||
Net profit/(loss) | 287 | 438 | ||||
Other comprehensive income | 0 | |||||
Total comprehensive income | 287 | 438 | ||||
Mapleleaf Century Limited (MCL) [member] | ||||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||||
Total assets | 24,381 | 22,266 | ||||
Total liabilities | 13,620 | 11,897 | ||||
Total equity | 10,761 | 10,369 | ||||
Total equity attributable to equity holders of the associates and joint ventures | 10,761 | 10,369 | ||||
Total adjustments | [1] | (3,908) | (2,714) | |||
Total equity attributable to equity holders of the associates and joint ventures after adjustments | ¥ 6,853 | ¥ 7,655 | ||||
Proportion of the Group's ownership | 75.00% | 75.00% | ||||
Gross carrying value of the investments | ¥ 5,140 | ¥ 5,741 | ||||
Net carrying value of the investments | 5,140 | 5,741 | ||||
Total revenues | 795 | 458 | ||||
Net profit/(loss) | 348 | 609 | ||||
Other comprehensive income | 0 | |||||
Total comprehensive income | ¥ 348 | ¥ 609 | ||||
[1] | Including adjustments for the difference of accounting policies, fair value and others. | |||||
[2] | The 2018 final dividend of RMB0.033 in cash per ordinary share was approved and declared in the Annual General Meeting of CGB on 16 August 2019. The Company received a cash dividend of RMB284 million. | |||||
[3] | The 2018 final dividend of HKD0.073 in cash per ordinary share was approved and declared in the Annual General Meeting of Sino-Ocean on 16 May 2019. The Company received a cash dividend equivalent to RMB145 million. The 2019 interim dividend of HKD0.110 in cash per ordinary share was approved and declared by the board of directors of Sino-Ocean on 21 August 2019. The Company received a cash dividend equivalent to RMB224 million. Sino-Ocean, the Group’s associate is listed in Hong Kong. On 31 December 2019, the stock price of Sino-Ocean was HKD3.13 per share. As at 31 December 2018, the cumulative impairment loss of RMB1.01 billion for the investment in Sino-Ocean had been recognised by the Group. The Group performed an impairment test to this investment on 31 December 2019. An impairment loss of RMB1.50 billion was recognised for this investment valued using the discounted future cash flow method for the year ended 31 December 2019. In the valuation, the Group separated the development property and investment property by considering the different future cash flow features. The discount rates applied in the valuation were 10% and 8% for development property and investment property, respectively. | |||||
[4] | The 2018 final dividend of RMB0.0533 in cash per ordinary share was approved and declared in the Annual General Meeting of China Unicom on 8 May 2019. The Company received a cash dividend of RMB170 million. As at 31 December 2019, China Unicom’s share price is RMB5.89 per share. |
Investments in Associates and_8
Investments in Associates and Joint Ventures - Financial Information of Major Associates and Joint Venture (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments in subsidiaries, joint ventures and associates [abstract] | ||
Capital commitments | ¥ 24,430 | ¥ 20,768 |
Financial Assets - Summary of H
Financial Assets - Summary of Held-to-Maturity Securities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | [1] | ¥ 928,751 | ¥ 806,717 |
Debt securities [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | 928,751 | 806,717 | |
Debt securities [member] | Listed in Mainland, PRC [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | 209,123 | 109,597 | |
Debt securities [member] | Listed in Hong Kong, PRC [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | 157 | 130 | |
Debt securities [member] | Listed overseas [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | 62 | 20 | |
Debt securities [member] | Unlisted [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | [2] | 719,409 | 696,970 |
Debt securities [member] | Government bonds [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | 215,928 | 179,943 | |
Debt securities [member] | Government agency bonds [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | 401,799 | 266,986 | |
Debt securities [member] | Corporate bonds [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | 198,322 | 212,709 | |
Debt securities [member] | Subordinated bonds/debts [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | ¥ 112,702 | ¥ 147,079 | |
[1] | The fair value of held-to-maturity securities is determined by reference with other debt securities which are measured by fair value. Please refer to Note 4.4. | ||
[2] | Unlisted debt securities include those traded on the Chinese interbank market. |
Financial Assets - Additional I
Financial Assets - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | ||
Accumulated Impairment loss on investment of held-to-maturity securities | ¥ 17 | ¥ 42 |
Term deposits | ¥ 535,260 | 559,341 |
Mandatory reserve deposit percentage | 20.00% | |
CL Hotel Investor, L.P. [member] | ||
Disclosure of financial assets [line items] | ||
Overseas borrowings backed by domestic deposits | ¥ 361 | 6,861 |
Glorious Fortune Forever Limited [member] | ||
Disclosure of financial assets [line items] | ||
Overseas borrowings backed by domestic deposits | 380 | 7,080 |
Sunny Bamboo Limited and Golden Bamboo Limited [member] | ||
Disclosure of financial assets [line items] | ||
Overseas borrowings backed by domestic deposits | 750 | 750 |
Guo Yang Guo Sheng [member] | ||
Disclosure of financial assets [line items] | ||
Term deposits | 2,000 | 2,000 |
Current deposit | 1,069 | 1,274 |
Term deposits [member] | ||
Disclosure of financial assets [line items] | ||
Term deposits | ¥ 3,491 | ¥ 16,691 |
Financial Assets - Summary of F
Financial Assets - Summary of Fair Value Hierarchy of Financial Assets (Detail) - Debt securities [member] - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Debt securities | ¥ 968,575 | ¥ 843,543 |
Government bonds [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 228,198 | 191,009 |
Government agency bonds [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 415,013 | 276,484 |
Corporate bonds [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 206,793 | 220,267 |
Subordinated bonds/debts [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 118,571 | 155,783 |
Quoted prices in active markets level 1 [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 81,618 | 98,807 |
Quoted prices in active markets level 1 [member] | Government bonds [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 15,749 | 15,387 |
Quoted prices in active markets level 1 [member] | Government agency bonds [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 57,955 | 72,455 |
Quoted prices in active markets level 1 [member] | Corporate bonds [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 7,914 | 10,965 |
Quoted prices in active markets level 1 [member] | Subordinated bonds/debts [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 0 | |
Significant observable inputs level 2 [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 886,957 | 744,736 |
Significant observable inputs level 2 [member] | Government bonds [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 212,449 | 175,622 |
Significant observable inputs level 2 [member] | Government agency bonds [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 357,058 | 204,029 |
Significant observable inputs level 2 [member] | Corporate bonds [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | 198,879 | 209,302 |
Significant observable inputs level 2 [member] | Subordinated bonds/debts [member] | ||
Disclosure of financial assets [line items] | ||
Debt securities | ¥ 118,571 | ¥ 155,783 |
Financial Assets - Contractual
Financial Assets - Contractual Maturity Schedule of Held-to-Maturity Securities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | [1] | ¥ 928,751 | ¥ 806,717 |
Not later than one year [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | 24,454 | 16,907 | |
Later than one year and not later than five years [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | 128,266 | 137,840 | |
Later than five years and not later than ten years [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | 241,372 | 279,086 | |
After ten years [member] | |||
Disclosure of financial assets [line items] | |||
Held-to-maturity securities | ¥ 534,659 | ¥ 372,884 | |
[1] | The fair value of held-to-maturity securities is determined by reference with other debt securities which are measured by fair value. Please refer to Note 4.4. |
Financial Assets - Summary of L
Financial Assets - Summary of Loans (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Loans | ¥ 611,638 | ¥ 450,251 | |
Net value | [1] | 608,920 | 450,251 |
Impairment [member] | |||
Disclosure of financial assets [line items] | |||
Loans | (2,718) | ||
Policy loans [member] | |||
Disclosure of financial assets [line items] | |||
Loans | [2] | 174,872 | 142,165 |
Other loans [member] | |||
Disclosure of financial assets [line items] | |||
Loans | ¥ 436,766 | ¥ 308,086 | |
[1] | Investment contracts at fair value through profit or loss have quoted prices in active markets, and therefore, their fair value was classified as Level 1. | ||
[2] | As at 31 December 2019, maturities of policy loans were within 6 months (as at 31 December 2018: same). |
Financial Assets - Summary of_2
Financial Assets - Summary of Loans Maturity (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Loans | ¥ 611,638 | ¥ 450,251 | |
Net value | [1] | 608,920 | 450,251 |
Impairment [member] | |||
Disclosure of financial assets [line items] | |||
Loans | (2,718) | ||
Not later than one year [member] | |||
Disclosure of financial assets [line items] | |||
Loans | 213,937 | 167,498 | |
Later than one year and not later than five years [member] | |||
Disclosure of financial assets [line items] | |||
Loans | 229,415 | 138,939 | |
Later than five years and not later than ten years [member] | |||
Disclosure of financial assets [line items] | |||
Loans | 129,596 | 99,501 | |
After ten years [member] | |||
Disclosure of financial assets [line items] | |||
Loans | ¥ 38,690 | ¥ 44,313 | |
[1] | Investment contracts at fair value through profit or loss have quoted prices in active markets, and therefore, their fair value was classified as Level 1. |
Financial Assets - Summary of T
Financial Assets - Summary of Term Deposits Maturity (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Term deposits | ¥ 535,260 | ¥ 559,341 |
Not later than one year [member] | ||
Disclosure of financial assets [line items] | ||
Term deposits | 107,039 | 158,920 |
Later than one year and not later than five years [member] | ||
Disclosure of financial assets [line items] | ||
Term deposits | 420,191 | 323,021 |
Later than five years and not later than ten years [member] | ||
Disclosure of financial assets [line items] | ||
Term deposits | ¥ 8,030 | ¥ 77,400 |
Financial Assets - Summary of R
Financial Assets - Summary of Restricted Statutory Deposits Maturity (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Statutory deposits - restricted | ¥ 6,333 | ¥ 6,333 |
Not later than one year [member] | ||
Disclosure of financial assets [line items] | ||
Statutory deposits - restricted | 180 | 500 |
Later than one year and not later than five years [member] | ||
Disclosure of financial assets [line items] | ||
Statutory deposits - restricted | ¥ 6,153 | ¥ 5,833 |
Financial Assets - Summary of A
Financial Assets - Summary of Available-for-sale Securities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Available-for-sale securities | ¥ 1,058,957 | ¥ 870,533 | |
Debt securities [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 509,791 | 496,590 | |
Debt securities [member] | Listed in Mainland, PRC [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 46,505 | 53,933 | |
Debt securities [member] | Unlisted [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 463,286 | 442,657 | |
Equity securities [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 549,166 | 373,943 | |
Equity securities [member] | Listed in Mainland, PRC [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 152,293 | 102,190 | |
Equity securities [member] | Listed in Hong Kong, PRC [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 95,428 | 55,066 | |
Equity securities [member] | Listed overseas [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 1,458 | 162 | |
Equity securities [member] | Unlisted [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 299,987 | 216,525 | |
Financial assets at fair value, class [member] | Debt securities [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 509,791 | 496,590 | |
Financial assets at fair value, class [member] | Debt securities [member] | Government bonds [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 23,758 | 28,440 | |
Financial assets at fair value, class [member] | Debt securities [member] | Government agency bonds [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 171,189 | 180,273 | |
Financial assets at fair value, class [member] | Debt securities [member] | Corporate bonds [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 148,455 | 185,720 | |
Financial assets at fair value, class [member] | Debt securities [member] | Subordinated bonds/debts [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 53,922 | 21,514 | |
Financial assets at fair value, class [member] | Debt securities [member] | Others [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | [1] | 112,467 | 80,643 |
Financial assets at fair value, class [member] | Equity securities [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 528,530 | 353,307 | |
Financial assets at fair value, class [member] | Equity securities [member] | Common stocks [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 236,323 | 143,469 | |
Financial assets at fair value, class [member] | Equity securities [member] | Preferred stocks [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 58,314 | 32,707 | |
Financial assets at fair value, class [member] | Equity securities [member] | Funds [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 102,349 | 92,304 | |
Financial assets at fair value, class [member] | Equity securities [member] | Wealth management products [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | 32,640 | 31,348 | |
Financial assets at fair value, class [member] | Equity securities [member] | Others [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | [1] | 98,904 | 53,479 |
Financial assets at amortised cost, class [member] | Equity securities [member] | Others [member] | |||
Disclosure of financial assets [line items] | |||
Available-for-sale securities | [1] | ¥ 20,636 | ¥ 20,636 |
[1] | Other available-for-sale securities mainly include unlisted equity investments, private equity funds, trust schemes and perpetual bonds. |
Financial Assets - Contractua_2
Financial Assets - Contractual Maturity Schedule of Available-for-Sale Securities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Available-for-sale securities | ¥ 1,058,957 | ¥ 870,533 |
Debt securities [member] | ||
Disclosure of financial assets [line items] | ||
Available-for-sale securities | 509,791 | 496,590 |
Debt securities [member] | Not later than one year [member] | ||
Disclosure of financial assets [line items] | ||
Available-for-sale securities | 26,075 | 11,511 |
Debt securities [member] | Later than one year and not later than five years [member] | ||
Disclosure of financial assets [line items] | ||
Available-for-sale securities | 155,110 | 170,606 |
Debt securities [member] | Later than five years and not later than ten years [member] | ||
Disclosure of financial assets [line items] | ||
Available-for-sale securities | 226,421 | 214,826 |
Debt securities [member] | After ten years [member] | ||
Disclosure of financial assets [line items] | ||
Available-for-sale securities | ¥ 102,185 | ¥ 99,647 |
Financial Assets - Summary of S
Financial Assets - Summary of Securities at Fair Value through Profit or Loss (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | ¥ 141,608 | ¥ 138,717 | |
Fair value [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | [1] | 141,608 | 138,717 |
Fair value [member] | Debt securities [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 85,206 | 88,003 | |
Fair value [member] | Debt securities [member] | Listed in Mainland, PRC [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 35,804 | 39,145 | |
Fair value [member] | Debt securities [member] | Listed in Hong Kong, PRC [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 102 | 108 | |
Fair value [member] | Debt securities [member] | Listed overseas [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 167 | 202 | |
Fair value [member] | Debt securities [member] | Unlisted [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 49,133 | 48,548 | |
Fair value [member] | Debt securities [member] | Government bonds [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 41 | 118 | |
Fair value [member] | Debt securities [member] | Government agency bonds [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 6,859 | 6,760 | |
Fair value [member] | Debt securities [member] | Corporate bonds [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 77,215 | 79,774 | |
Fair value [member] | Debt securities [member] | Others [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 1,091 | 1,351 | |
Fair value [member] | Equity securities [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 56,402 | 50,714 | |
Fair value [member] | Equity securities [member] | Listed in Mainland, PRC [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 39,770 | 31,962 | |
Fair value [member] | Equity securities [member] | Listed in Hong Kong, PRC [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 611 | 97 | |
Fair value [member] | Equity securities [member] | Listed overseas [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 6,418 | 6,552 | |
Fair value [member] | Equity securities [member] | Unlisted [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 9,603 | 12,103 | |
Fair value [member] | Equity securities [member] | Others [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 20 | 0 | |
Fair value [member] | Equity securities [member] | Funds [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 16,101 | 13,967 | |
Fair value [member] | Equity securities [member] | Wealth management products [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | 0 | 1,506 | |
Fair value [member] | Equity securities [member] | Common stocks [member] | |||
Disclosure of financial assets [line items] | |||
Securities at fair value through profit or loss | ¥ 40,281 | ¥ 35,241 | |
[1] | The estimates and judgements to determine the fair value of financial assets are described in Note 3.2. |
Financial Assets - Summary of D
Financial Assets - Summary of Derivative Financial Instruments (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | ¥ 428 | |
Derivative financial liabilities forward contract | ¥ 1,877 | |
Forward contract [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities forward contract | ¥ 1,877 | |
Forward contract [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | ¥ 428 |
Financial Assets - Contractua_3
Financial Assets - Contractual Maturity Schedule of Securities Purchased under Agreements to Resell (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Securities purchased under agreements to resell | ¥ 4,467 | ¥ 9,905 |
Within 30 days [member] | ||
Disclosure of financial assets [line items] | ||
Securities purchased under agreements to resell | ¥ 4,467 | ¥ 9,905 |
Financial Assets - Summary of_3
Financial Assets - Summary of Accrued Investment Income (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Current | ¥ 40,710 | ¥ 47,834 |
Non-current | 993 | 568 |
Accrued investment income | 41,703 | 48,402 |
Bank deposits [member] | ||
Disclosure of financial assets [line items] | ||
Accrued investment income | 12,310 | 19,805 |
Debt securities [member] | ||
Disclosure of financial assets [line items] | ||
Accrued investment income | 25,048 | 23,486 |
Other assets [member] | ||
Disclosure of financial assets [line items] | ||
Accrued investment income | ¥ 4,345 | ¥ 5,111 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Carrying Value and Estimated Fair Value of Major Financial Assets and Liabilities, and Investment Contracts (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value measurement of assets and liabilities [line items] | |||||
Held-to-maturity securities | [1] | ¥ 928,751 | ¥ 806,717 | ||
Loans | [2] | 608,920 | 450,251 | ||
Term deposits | 535,260 | 559,341 | |||
Statutory deposits - restricted | 6,333 | 6,333 | |||
Available-for-sale securities, at fair value | 1,038,321 | 849,897 | |||
Securities at fair value through profit or loss | 141,608 | 138,717 | |||
Derivative financial assets | 428 | ||||
Securities purchased under agreements to resell | 4,467 | 9,905 | |||
Cash and cash equivalents | 53,306 | 50,809 | ¥ 48,586 | ¥ 67,046 | |
Investment contracts | [2] | (267,804) | (255,434) | ||
Financial liabilities at fair value through profit or loss | (3,859) | (2,680) | |||
Derivative financial liabilities | (1,877) | ||||
Securities sold under agreements to repurchase | (118,088) | (192,141) | |||
Bonds payable | (34,990) | ||||
Interest-bearing loans and borrowings | (20,045) | (20,150) | |||
Fair value [member] | |||||
Disclosure of fair value measurement of assets and liabilities [line items] | |||||
Held-to-maturity securities | [1],[3] | 968,575 | 843,543 | ||
Loans | [2],[3] | 623,840 | 458,669 | ||
Term deposits | [3] | 535,260 | 559,341 | ||
Statutory deposits - restricted | [3] | 6,333 | 6,333 | ||
Available-for-sale securities, at fair value | [3] | 1,038,321 | 849,897 | ||
Securities at fair value through profit or loss | [3] | 141,608 | 138,717 | ||
Derivative financial assets | [3] | 428 | |||
Securities purchased under agreements to resell | [3] | 4,467 | 9,905 | ||
Cash and cash equivalents | [3] | 53,306 | 50,809 | ||
Investment contracts | [2],[3] | (260,592) | (245,803) | ||
Financial liabilities at fair value through profit or loss | [3] | (3,859) | (2,680) | ||
Derivative financial liabilities | [3] | (1,877) | |||
Securities sold under agreements to repurchase | [3] | (118,088) | (192,141) | ||
Bonds payable | [3] | (35,551) | |||
Interest-bearing loans and borrowings | [3] | ¥ (20,045) | ¥ (20,150) | ||
[1] | The fair value of held-to-maturity securities is determined by reference with other debt securities which are measured by fair value. Please refer to Note 4.4. | ||||
[2] | Investment contracts at fair value through profit or loss have quoted prices in active markets, and therefore, their fair value was classified as Level 1. | ||||
[3] | The estimates and judgements to determine the fair value of financial assets are described in Note 3.2. |
Premiums Receivable - Additiona
Premiums Receivable - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of insurance [line items] | ||
Premiums receivable | ¥ 17,281 | ¥ 15,648 |
Not later than one year [member] | Cost [member] | ||
Disclosure of insurance [line items] | ||
Premiums receivable | ¥ 17,205 | ¥ 15,607 |
Reinsurance Assets - Summary of
Reinsurance Assets - Summary of Reinsurance Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Reinsurance [abstract] | ||
Long-term insurance contracts ceded | ¥ 3,839 | ¥ 3,123 |
Due from reinsurance companies | 808 | 731 |
Ceded unearned premiums | 369 | 370 |
Claims recoverable from reinsurers | 145 | 140 |
Total | 5,161 | 4,364 |
Current | 1,318 | 1,241 |
Non-current | 3,843 | 3,123 |
Total | ¥ 5,161 | ¥ 4,364 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of other assets [abstract] | |||
Land use rights | [1] | ¥ 7,830 | ¥ 7,906 |
Disbursements | 5,946 | 4,162 | |
Tax prepaid | 5,615 | ||
Automated policy loans | 3,377 | 3,269 | |
Investments receivable and prepaid | 2,665 | 8,885 | |
Prepayments to constructors | 847 | 504 | |
Due from related parties | 757 | 725 | |
Others | 6,992 | 7,986 | |
Total | 34,029 | 33,437 | |
Current | 24,175 | 23,533 | |
Non-current | 9,854 | 9,904 | |
Total | ¥ 34,029 | ¥ 33,437 | |
[1] | The Group’s right-of-use assets include the above land use rights and right-of-use assets disclosed in Note 7. |
Insurance Contracts - Summary o
Insurance Contracts - Summary of Assumed Discount Rates with Risk Margin (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Investment returns of asset portfolio backing [member] | ||
Discount rates with risk margin [line items] | ||
Assumed discount rates with risk margin | 4.85% | 4.85% |
Bottom of range [member] | Yield curve of reserve computation benchmark for insurance contracts [member] | ||
Discount rates with risk margin [line items] | ||
Assumed discount rates with risk margin | 3.52% | 3.47% |
Top of range [member] | Yield curve of reserve computation benchmark for insurance contracts [member] | ||
Discount rates with risk margin [line items] | ||
Assumed discount rates with risk margin | 4.83% | 4.86% |
Insurance Contracts - Summary_2
Insurance Contracts - Summary of Components of Expense Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Individual life policy [member] | ||
Disclosure of components of expense assumptions [line items] | ||
Cost per policy | 45 | 45 |
Individual life policy [member] | Bottom of range [member] | ||
Disclosure of components of expense assumptions [line items] | ||
Percentage of premium | 0.85% | 0.85% |
Individual life policy [member] | Top of range [member] | ||
Disclosure of components of expense assumptions [line items] | ||
Percentage of premium | 0.90% | 0.90% |
Group life policy [member] | ||
Disclosure of components of expense assumptions [line items] | ||
Cost per policy | 25 | 25 |
Percentage of premium | 0.90% | 0.90% |
Insurance Contracts - Summary_3
Insurance Contracts - Summary of Net Liabilities of Insurance Contracts (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities under insurance contracts and reinsurance contracts issued [line items] | |||
Insurance contracts | ¥ 2,548,383 | ¥ 2,212,398 | |
Long-term insurance contracts [member] | |||
Liabilities under insurance contracts and reinsurance contracts issued [line items] | |||
Insurance contracts | 2,517,492 | 2,186,671 | |
Short-term insurance contracts [member] | |||
Liabilities under insurance contracts and reinsurance contracts issued [line items] | |||
Claims and claim adjustment expenses | 18,259 | 14,665 | |
Unearned premiums | 12,632 | 11,062 | ¥ 11,762 |
Gross [member] | |||
Liabilities under insurance contracts and reinsurance contracts issued [line items] | |||
Insurance contracts | 2,552,736 | 2,216,031 | |
Gross [member] | Long-term insurance contracts [member] | |||
Liabilities under insurance contracts and reinsurance contracts issued [line items] | |||
Insurance contracts | 2,521,331 | 2,189,794 | 1,999,066 |
Gross [member] | Short-term insurance contracts [member] | |||
Liabilities under insurance contracts and reinsurance contracts issued [line items] | |||
Claims and claim adjustment expenses | 18,404 | 14,805 | 13,778 |
Unearned premiums | 13,001 | 11,432 | 12,289 |
Ceded [member] | |||
Liabilities under insurance contracts and reinsurance contracts issued [line items] | |||
Insurance contracts | (4,353) | (3,633) | |
Ceded [member] | Long-term insurance contracts [member] | |||
Liabilities under insurance contracts and reinsurance contracts issued [line items] | |||
Insurance contracts | (3,839) | (3,123) | |
Ceded [member] | Short-term insurance contracts [member] | |||
Liabilities under insurance contracts and reinsurance contracts issued [line items] | |||
Claims and claim adjustment expenses | (145) | (140) | |
Unearned premiums | ¥ (369) | ¥ (370) | ¥ (527) |
Insurance Contracts - Summary_4
Insurance Contracts - Summary of Movements in Liabilities of Short-Term Insurance Contracts (Detail) - Short-term insurance contracts [member] - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of types of insurance contracts [line items] | ||
Beginning balance, Gross | ¥ 14,665 | |
Ending balance, Gross | 18,259 | ¥ 14,665 |
Ending balance, Gross | 14,665 | 14,665 |
Gross [member] | ||
Disclosure of types of insurance contracts [line items] | ||
Beginning balance, Notified claims | 2,536 | 2,672 |
Beginning balance, Incurred but not reported | 12,269 | 11,106 |
Beginning balance, Gross | 14,805 | 13,778 |
Cash paid for claims settled - Cash paid for current year claims | (33,244) | (27,165) |
Cash paid for claims settled - Cash paid for prior year claims | (14,551) | (12,876) |
Claims incurred - Claims arising in current year | 49,727 | 40,601 |
Claims incurred - Claims arising in prior years | 1,667 | 467 |
Ending balance, Gross | 18,404 | 14,805 |
Ending balance, Notified claims | 2,781 | 2,536 |
Ending balance, Incurred but not reported | 15,623 | 12,269 |
Ending balance, Gross | ¥ 14,805 | ¥ 13,778 |
Insurance Contracts - Summary_5
Insurance Contracts - Summary of Unearned Premium Reserves (Detail) - Short-term insurance contracts [member] - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unearned premium reserves [line items] | ||
As at 1 January | ¥ 11,062 | ¥ 11,762 |
Increase | 12,632 | 11,062 |
Release | (11,062) | (11,762) |
As at 31 December | 12,632 | 11,062 |
Gross [member] | ||
Unearned premium reserves [line items] | ||
As at 1 January | 11,432 | 12,289 |
Increase | 13,001 | 11,432 |
Release | (11,432) | (12,289) |
As at 31 December | 13,001 | 11,432 |
Ceded [member] | ||
Unearned premium reserves [line items] | ||
As at 1 January | (370) | (527) |
Increase | (369) | (370) |
Release | 370 | 527 |
As at 31 December | ¥ (369) | ¥ (370) |
Insurance Contracts - Summary_6
Insurance Contracts - Summary of Movements in Liabilities of Long-Term Insurance Contracts (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of types of insurance contracts [line items] | ||||
Liabilities arising insurance contracts at beginning of period | ¥ 2,212,398 | |||
Premiums | 567,086 | ¥ 535,826 | ¥ 511,966 | |
Liabilities arising insurance contracts at end of period | 2,548,383 | 2,212,398 | ||
Long-term insurance contracts [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Liabilities arising insurance contracts at beginning of period | 2,186,671 | |||
Liabilities arising insurance contracts at end of period | 2,517,492 | 2,186,671 | ||
Gross [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Liabilities arising insurance contracts at beginning of period | 2,216,031 | |||
Liabilities arising insurance contracts at end of period | 2,552,736 | 2,216,031 | ||
Gross [member] | Long-term insurance contracts [member] | ||||
Disclosure of types of insurance contracts [line items] | ||||
Liabilities arising insurance contracts at beginning of period | 2,189,794 | 1,999,066 | ||
Premiums | 497,570 | 480,496 | ||
Release of liabilities | [1] | (282,189) | (385,761) | |
Accretion of interest | 114,234 | 99,618 | ||
Change in discount rates | (4,906) | (6,020) | ||
Change in other assumptions | [2] | 7,308 | 2,946 | |
Other movements | (480) | (551) | ||
Liabilities arising insurance contracts at end of period | ¥ 2,521,331 | ¥ 2,189,794 | ¥ 1,999,066 | |
[1] | The release of liabilities mainly consists of release due to death or other termination and related expenses, release of residual margin and change of reserves for claims and claim adjustment expenses. | |||
[2] | For the year ended 31 December 2019, the change in other assumptions was mainly caused by the change in morbidity rate assumptions of certain products, which increased insurance contract liabilities by RMB4,737 million. This change reflected the Group’s most recent experience and future expectations about the morbidity rates as at the reporting date. Changes in assumptions other than morbidity rates increased insurance contract liabilities by RMB2,571 million. For the year ended 31 December 2018, the change in other assumptions was mainly caused by the change in morbidity rate assumptions of certain products, which increased insurance contract liabilities by RMB3,877 million. This change reflected the Group’s most recent experience and future expectations about the morbidity rates as at the reporting date. Changes in assumptions other than morbidity rates decreased insurance contract liabilities by RMB931 million. |
Insurance Contracts - Summary_7
Insurance Contracts - Summary of Movements in Liabilities of Long-Term Insurance Contracts (Parenthetical) (Detail) - Gross [member] - Long-term insurance contracts [member] - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of types of insurance contracts [line items] | |||
Contract liabilities | [1] | ¥ 7,308 | ¥ 2,946 |
Morbidity Rates [member] | |||
Disclosure of types of insurance contracts [line items] | |||
Contract liabilities | 4,737 | 3,877 | |
Other than morbidity rates [member] | |||
Disclosure of types of insurance contracts [line items] | |||
Contract liabilities | ¥ 2,571 | ¥ (931) | |
[1] | For the year ended 31 December 2019, the change in other assumptions was mainly caused by the change in morbidity rate assumptions of certain products, which increased insurance contract liabilities by RMB4,737 million. This change reflected the Group’s most recent experience and future expectations about the morbidity rates as at the reporting date. Changes in assumptions other than morbidity rates increased insurance contract liabilities by RMB2,571 million. For the year ended 31 December 2018, the change in other assumptions was mainly caused by the change in morbidity rate assumptions of certain products, which increased insurance contract liabilities by RMB3,877 million. This change reflected the Group’s most recent experience and future expectations about the morbidity rates as at the reporting date. Changes in assumptions other than morbidity rates decreased insurance contract liabilities by RMB931 million. |
Investment Contracts - Summary
Investment Contracts - Summary of Investment Contracts (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investment contracts without DPF | |||
Total | ¥ 267,804 | ¥ 255,434 | |
Financial liabilities at amortised cost, category [member] | |||
Disclosure of amounts arising from investment contracts [line items] | |||
Investment contracts with DPF at amortised cost | 61,657 | 59,129 | ¥ 57,153 |
Investment contracts without DPF | |||
Investment contracts without DPF | 206,137 | 196,296 | |
Financial liabilities at fair value through profit or loss, category [member] | |||
Investment contracts without DPF | |||
Investment contracts without DPF | ¥ 10 | ¥ 9 |
Investment Contracts - Movement
Investment Contracts - Movements of Investment Contracts with DPF (Detail) - Financial liabilities at amortised cost, category [member] - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of amounts arising from investment contracts [line items] | ||
Investment contracts liabilities at beginning of period | ¥ 59,129 | ¥ 57,153 |
Deposits received | 4,238 | 4,096 |
Deposits withdrawn, payments on death and other benefits | (2,959) | (3,318) |
Policy fees deducted from account balances | (38) | (38) |
Interest credited | 1,287 | 1,236 |
Investment contracts liabilities at end of period | ¥ 61,657 | ¥ 59,129 |
Interest-Bearing Loans and Bo_3
Interest-Bearing Loans and Borrowings - Summary of Interest Bearing Loans and Borrowings (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans | ¥ 20,045 | ¥ 20,150 | |
Guaranteed loan one [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Jan. 11, 2019 | ||
Guaranteed loans interest rate | 1.50% | ||
Guaranteed loans | 993 | ||
Guaranteed loan two [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Jun. 17, 2019 | ||
Guaranteed loans interest rate | 3.54% | ||
Guaranteed loans | 2,385 | ||
Guaranteed loan three [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Sep. 27, 2019 | ||
Guaranteed loans interest rate | 2.30% | ||
Guaranteed loans | 6,657 | ||
Guaranteed loan four [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Sep. 30, 2019 | ||
Guaranteed loans interest rate | 2.40% | ||
Guaranteed loans | 6,451 | ||
Guaranteed loan five [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Jan. 11, 2020 | ||
Guaranteed loans interest rate | 1.50% | ||
Guaranteed loans | ¥ 989 | ||
Guaranteed Loan Six [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Dec. 6, 2020 | ||
Guaranteed loans | ¥ 3,126 | 3,139 | |
Credit loans interest rate, description | [1] | EURIBOR +3.80% | |
Guaranteed Loan Six [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans interest rate | 3.80% | ||
Credit loan one [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Nov. 6, 2020 | ||
Guaranteed loans | ¥ 126 | ||
Credit loans interest rate, description | [2] | LIBOR+2.70% | |
Credit loan one [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans interest rate | 2.70% | ||
Credit loan two [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Jan. 18, 2021 | ||
Guaranteed loans interest rate | 2.50% | ||
Guaranteed loans | ¥ 523 | ¥ 525 | |
Credit loan three [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Jun. 25, 2024 | ||
Guaranteed loans interest rate | 3.08% | ||
Guaranteed loans | ¥ 2,515 | ||
Credit loan four [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Sep. 16, 2024 | ||
Guaranteed loans interest rate | 3.30% | ||
Guaranteed loans | ¥ 5,999 | ||
Credit loan five [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans maturity date | Sep. 27, 2024 | ||
Guaranteed loans | ¥ 6,767 | ||
Credit loans interest rate, description | USD LIBOR+1.00% | ||
Credit loan five [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Guaranteed loans interest rate | 1.00% | ||
[1] | 3.80% when EURIBOR is negative. | ||
[2] | 2.70% when LIBOR is negative. |
Bonds Payable - Additional Info
Bonds Payable - Additional Information (Detail) - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2019 | Mar. 20, 2019 | Dec. 31, 2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||||
Bonds payable at par value | ¥ 35,000,000,000 | ¥ 0 | ||
Bonds Payable | 34,990,000,000 | |||
At fair value [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Bonds Payable | [1] | 35,551,000,000 | ||
Bonds payable [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Bonds payable carrying value | ¥ 34,990,000,000 | 0 | ||
Subordinated bonds maturity term | 10 years | |||
Coupon rate per annum for remaining 5 years | 5.28% | |||
Bonds payable at par value | ¥ 35,000,000,000 | ¥ 35,000,000,000 | 0 | |
Fixed coupon rate | 4.28% | |||
Bonds payable [member] | At fair value [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Bonds Payable | ¥ 35,551,000,000 | ¥ 0 | ||
Bonds payable [member] | Fixed interest rate [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fixed coupon rate | 4.28% | |||
[1] | The estimates and judgements to determine the fair value of financial assets are described in Note 3.2. |
Bonds Payable - Summary of Subo
Bonds Payable - Summary of Subordinated Bonds (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 20, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Bonds, par value | ¥ 35,000 | ¥ 0 | |
Bonds payable [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Bonds Issue Date | Mar. 22, 2019 | ||
Bonds maturity | 10-year | ||
Bonds interest rate p.a. | 4.28% | ||
Bonds, par value | ¥ 35,000 | ¥ 35,000 | ¥ 0 |
Securities Sold under Agreeme_3
Securities Sold under Agreements to Repurchase - Summary of Securities Sold under Agreements to Repurchase (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of securities sold under agreements to repurchase [line items] | ||
Securities sold under agreements to repurchase | ¥ 118,088 | ¥ 192,141 |
Within 30 days [member] | ||
Disclosure of securities sold under agreements to repurchase [line items] | ||
Securities sold under agreements to repurchase | 117,928 | 192,141 |
After 90 days [member] | ||
Disclosure of securities sold under agreements to repurchase [line items] | ||
Securities sold under agreements to repurchase | 160 | |
Interbank market [member] | ||
Disclosure of securities sold under agreements to repurchase [line items] | ||
Securities sold under agreements to repurchase | 63,631 | 125,788 |
Stock exchange market [member] | ||
Disclosure of securities sold under agreements to repurchase [line items] | ||
Securities sold under agreements to repurchase | ¥ 54,457 | ¥ 66,353 |
Securities Sold under Agreeme_4
Securities Sold under Agreements to Repurchase - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Interbank market [member] | ||
Disclosure of securities sold under agreements to repurchase [line items] | ||
Bonds pledged as collateral | ¥ 92,011 | ¥ 139,784 |
Stock exchange market [member] | ||
Disclosure of securities sold under agreements to repurchase [line items] | ||
Securities deposited in collateral pool | ¥ 256,700 | ¥ 174,323 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Risk Management [line items] | ||
Payable to the third-party holders of consolidated structured entities | ¥ 21,400 | ¥ 9,407 |
Interest payable to policyholders | 14,113 | 11,739 |
Salary and welfare payable | 11,475 | 11,199 |
Brokerage and commission payable | 7,418 | 5,268 |
Payable to constructors | 3,329 | 3,479 |
Agent deposits | 1,998 | 1,793 |
Interest payable of debt instruments | 1,327 | 252 |
Stock appreciation rights (Note 31) | 748 | 490 |
Tax payable | 674 | 666 |
Others | 18,632 | 14,133 |
Total | 81,114 | 58,426 |
Current | 81,114 | 58,426 |
Non-current | 0 | 0 |
Total | ¥ 81,114 | ¥ 58,426 |
Statutory Insurance Fund - Addi
Statutory Insurance Fund - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Statutory insurance fund [line items] | |
Additional contribution to statutory insurance fund criteria | When the accumulated statutory insurance fund contributions reach 1% of total assets, no additional contribution to the statutory insurance fund is required |
Life policies with guaranteed benefits [member] | |
Statutory insurance fund [line items] | |
Percentage of statutory insurance fund contribution on premium and accumulated policyholder deposits | 0.15% |
Life policies without guaranteed benefits [member] | |
Statutory insurance fund [line items] | |
Percentage of statutory insurance fund contribution on premium and accumulated policyholder deposits | 0.05% |
Short-term health policies [member] | |
Statutory insurance fund [line items] | |
Percentage of statutory insurance fund contribution on premium | 0.80% |
Long-term health policies [member] | |
Statutory insurance fund [line items] | |
Percentage of statutory insurance fund contribution on premium | 0.15% |
Accident insurance contracts [member] | |
Statutory insurance fund [line items] | |
Percentage of statutory insurance fund contribution on premium | 0.80% |
Accident investment contracts with guaranteed benefits [member] | |
Statutory insurance fund [line items] | |
Percentage of statutory insurance fund contribution on accumulated policyholder deposits | 0.08% |
Accident investment contracts without guaranteed benefits [member] | |
Statutory insurance fund [line items] | |
Percentage of statutory insurance fund contribution on accumulated policyholder deposits | 0.05% |
Investment Income - Summary of
Investment Income - Summary of Investment Income (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of investment income [line items] | |||
Bank deposits | ¥ 26,695 | ¥ 22,699 | ¥ 23,827 |
Loans | 27,111 | 22,894 | 16,320 |
Securities purchased under agreements to resell | 161 | 281 | 746 |
Total | 139,919 | 125,167 | 122,727 |
Debt securities [member] | |||
Disclosure of investment income [line items] | |||
Debt securities - held-to-maturity securities | 38,229 | 34,657 | 30,669 |
Securities - available-for-sale securities | 21,373 | 22,991 | 19,608 |
Securities - at fair value through profit or loss | 3,546 | 3,869 | 3,618 |
Equity securities [member] | |||
Disclosure of investment income [line items] | |||
Securities - available-for-sale securities | 21,823 | 16,492 | 27,019 |
Securities - at fair value through profit or loss | ¥ 981 | ¥ 1,284 | ¥ 920 |
Investment Income - Additional
Investment Income - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Investment Income [abstract] | |||
Interest income | ¥ 117,115 | ¥ 107,391 | ¥ 94,788 |
Net Realised Gains on Financi_3
Net Realised Gains on Financial Assets - Summary of Net Realised Gains on Financial Assets (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of financial assets [line items] | ||||
Realised gains | ¥ 69,600 | ¥ (24,591) | ¥ (15,003) | |
Subtotal | 1,831 | (19,591) | 42 | |
Debt securities [member] | ||||
Disclosure of financial assets [line items] | ||||
Realised gains | [1] | 3,714 | 399 | (9) |
Impairment | (3,749) | (42) | (114) | |
Subtotal | (35) | 357 | (123) | |
Equity securities [member] | ||||
Disclosure of financial assets [line items] | ||||
Realised gains | [1] | 4,504 | (11,785) | 2,808 |
Impairment | (2,638) | (8,163) | (2,643) | |
Subtotal | ¥ 1,866 | ¥ (19,948) | ¥ 165 | |
[1] | Realised gains were generated mainly from available-for-sale securities. |
Net Realised Gains on Financi_4
Net Realised Gains on Financial Assets - Additional Information (Detail) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gains (losses) on financial instruments [abstract] | |||
Impairment charge of available-for-sale funds | ¥ 888,000,000 | ¥ 4,542,000,000 | ¥ 619,000,000 |
Impairment charge of available-for-sale equity securities | 1,750,000,000 | 3,621,000,000 | 2,024,000,000 |
Impairment charge of available-for-sale debt securities | 1,027,000,000 | 0 | 114,000,000 |
Impairment charge of loans | 2,718,000,000 | 0 | 0 |
Impairment charge of held-to-maturity securities | ¥ 4,000,000 | ¥ 42,000,000 | ¥ 0 |
Net Fair Value Gains through _3
Net Fair Value Gains through Profit or Loss - Summary of Net Fair Value Gains/(Losses) through Profit or Loss (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | |||
Stock appreciation rights | ¥ (258) | ¥ 343 | ¥ (179) |
Financial liabilities at fair value through profit or loss | (380) | 188 | (275) |
Derivative financial instruments | 832 | (1,877) | |
Total | 19,251 | (18,278) | 6,183 |
Debt securities [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Debt (Equity) securities | 778 | 2,006 | (1,542) |
Equity securities [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Debt (Equity) securities | ¥ 18,279 | ¥ (18,938) | ¥ 8,179 |
Insurance Benefits and Claims_3
Insurance Benefits and Claims Expenses - Summary of Insurance Benefits and Claims Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Life insurance death and other benefits | ¥ 127,877 | ¥ 248,736 | ¥ 259,708 |
Accident and health claims and claim adjustment expenses | 50,783 | 40,552 | 33,818 |
Increase in insurance contract liabilities | 330,807 | 189,931 | 172,517 |
Total | 509,467 | 479,219 | 466,043 |
Gross [member] | |||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Life insurance death and other benefits | 130,975 | 250,627 | 260,853 |
Accident and health claims and claim adjustment expenses | 51,394 | 41,056 | 34,101 |
Increase in insurance contract liabilities | 331,523 | 190,703 | 173,085 |
Total | 513,892 | 482,386 | 468,039 |
Ceded [member] | |||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Life insurance death and other benefits | (3,098) | (1,891) | (1,145) |
Accident and health claims and claim adjustment expenses | (611) | (504) | (283) |
Increase in insurance contract liabilities | (716) | (772) | (568) |
Total | ¥ (4,425) | ¥ (3,167) | ¥ (1,996) |
Finance Costs - Summary of Fina
Finance Costs - Summary of Finance Costs (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance Costs [abstract] | |||
Interest expenses for securities sold under agreements to repurchase | ¥ 2,392 | ¥ 3,565 | ¥ 3,144 |
Interest expenses for interest-bearing loans and borrowings | 589 | 551 | 424 |
Interest expenses for bonds payable | 1,168 | 1,033 | |
Interest on lease liabilities | 106 | ||
Total | ¥ 4,255 | ¥ 4,116 | ¥ 4,601 |
Profit before Income Tax - Deta
Profit before Income Tax - Details of Profit before Income Tax (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit loss before income tax [abstract] | |||
Employee salaries and welfare costs | ¥ 20,125 | ¥ 19,268 | ¥ 18,741 |
Housing benefits | 1,189 | 1,061 | 933 |
Contribution to the defined contribution pension plan | 2,905 | 2,531 | 2,357 |
Depreciation and amortisation | 4,379 | 2,638 | 2,240 |
Foreign exchange losses/(gains) | 67 | 194 | (52) |
Remuneration in respect of audit services provided by auditors | ¥ 60 | ¥ 59 | ¥ 59 |
Taxation - Summary of Taxation
Taxation - Summary of Taxation Charge (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |||
Current taxation - Enterprise income tax | ¥ 614 | ¥ 6,397 | ¥ 9,457 |
Deferred taxation | 167 | (4,412) | (538) |
Income tax at the effective tax rate | ¥ 781 | ¥ 1,985 | ¥ 8,919 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |||
Statutory tax rate | 25.00% | 25.00% | 25.00% |
Percentage of commission and handling charges | 18.00% | ||
Tax effect of final settlement and payment | ¥ 5,154 | ||
Unrecognised deductible tax losses | 1,321 | ¥ 365 | |
Unrecognised deductible temporary differences | ¥ 1 | ¥ 378 |
Taxation - Summary of Reconcili
Taxation - Summary of Reconciliation Between Group's Effective Tax Rate and Statutory Tax Rate (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | ||||
Profit before income tax | ¥ 59,795 | ¥ 13,921 | ¥ 41,671 | |
Tax computed at the statutory tax rate | 14,949 | 3,480 | 10,418 | |
Adjustment on current income tax of previous period | [1] | (5,228) | (324) | (40) |
Non-taxable income | [2] | (9,589) | (6,771) | (7,807) |
Expenses not deductible for tax purposes | [2] | 313 | 5,319 | 6,105 |
Unused tax losses | 239 | 25 | 6 | |
Tax losses utilised from previous periods | (86) | (15) | ||
Others | 97 | 342 | 252 | |
Income tax at the effective tax rate | ¥ 781 | ¥ 1,985 | ¥ 8,919 | |
[1] | According to Cai Shui [2019] No.72, Notice on Pre-tax Deduction Policy of Commissions and Handling Charges for Insurance Companies, the commissions and handling charges incurred by insurance companies related to its operating activities, which do not exceed 18% of the total premium income of the year after deducting surrender premium, etc., are allowed to be deducted in calculating the taxable income, and the excessive part is allowed to be brought forward to the subsequent years. This notice issued above was effective from 1 January 2019 and applicable to the final settlement and payment of enterprise income tax filing for the year ended 31 December 2018. Accordingly, the Company’s current income tax was deducted by RMB5,154 million regarding to the final settlement and payment. | |||
[2] | Non-taxable income mainly includes interest income from government bonds, and dividend income from applicable equity securities, etc. Expenses not deductible for tax purposes mainly include donations and other expenses that do not meet the criteria for deduction according to the relevant tax regulations. |
Taxation - Summary of Deferred
Taxation - Summary of Deferred Tax Assets And Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | ||
Deferred tax assets | ¥ 13,352 | ¥ 10,160 |
Deferred tax liabilities | (23,554) | (8,903) |
Net deferred tax assets | 128 | 1,257 |
Net deferred tax liabilities | ¥ (10,330) | ¥ 0 |
Taxation - Summary of Movements
Taxation - Summary of Movements in Deferred Tax Assets and Liabilities (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Movement in deferred tax assets and liabilities [line items] | |||
Deferred tax asset/(liability) at beginning of period | ¥ 1,257 | ¥ (4,871) | |
(Charged)/credited to net profit | (167) | 4,412 | |
(Charged)/credited to other comprehensive income | |||
- Available-for-sale securities | (16,260) | 1,673 | |
- Portion of fair value changes on available-for-sale securities attributable to participating policyholders | 4,880 | 8 | |
- Others | 88 | 35 | |
Deferred tax asset/(liability) at end of period | (10,202) | 1,257 | |
Insurance [member] | |||
Movement in deferred tax assets and liabilities [line items] | |||
Deferred tax asset/(liability) at beginning of period | [1] | (5,308) | (6,737) |
(Charged)/credited to net profit | [1] | 1,985 | 1,421 |
(Charged)/credited to other comprehensive income | |||
- Available-for-sale securities | [1] | 0 | |
- Portion of fair value changes on available-for-sale securities attributable to participating policyholders | [1] | 4,880 | 8 |
- Others | [1] | 0 | |
Deferred tax asset/(liability) at end of period | [1] | 1,557 | (5,308) |
Investments [member] | |||
Movement in deferred tax assets and liabilities [line items] | |||
Deferred tax asset/(liability) at beginning of period | [2] | 3,927 | (494) |
(Charged)/credited to net profit | [2] | (2,428) | 2,713 |
(Charged)/credited to other comprehensive income | |||
- Available-for-sale securities | [2] | (16,260) | 1,673 |
- Portion of fair value changes on available-for-sale securities attributable to participating policyholders | [2] | 0 | |
- Others | [2] | 88 | 35 |
Deferred tax asset/(liability) at end of period | [2] | (14,673) | 3,927 |
Others [member] | |||
Movement in deferred tax assets and liabilities [line items] | |||
Deferred tax asset/(liability) at beginning of period | [3] | 2,638 | 2,360 |
(Charged)/credited to net profit | [3] | 276 | 278 |
(Charged)/credited to other comprehensive income | |||
- Available-for-sale securities | [3] | 0 | |
- Portion of fair value changes on available-for-sale securities attributable to participating policyholders | [3] | 0 | |
- Others | [3] | 0 | |
Deferred tax asset/(liability) at end of period | [3] | ¥ 2,914 | ¥ 2,638 |
[1] | The deferred tax liabilities arising from the insurance category are mainly related to the change of long-term insurance contract liabilities at 31 December 2008 as a result of the first time adoption of IFRSs in 2009 and the temporary differences of short-term insurance contract liabilities and policyholder dividends payable. | ||
[2] | The deferred tax arising from the investments category is mainly related to the temporary differences of unrealised gains/(losses) on available-for-sale securities, securities at fair value through profit or loss, and others. | ||
[3] | The deferred tax arising from the others category is mainly related to the temporary differences of employee salaries and welfare costs payable. |
Taxation - Summary of Deferre_2
Taxation - Summary of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | |||
Deferred tax assets to be recovered | ¥ 13,352 | ¥ 10,160 | |
Deferred tax liabilities: | |||
Deferred tax liabilities to be settled | (23,554) | (8,903) | |
Net deferred tax liabilities | (10,202) | 1,257 | ¥ (4,871) |
1 year later [member] | |||
Deferred tax assets: | |||
Deferred tax assets to be recovered | 7,508 | 3,947 | |
Deferred tax liabilities: | |||
Deferred tax liabilities to be settled | (19,906) | (7,490) | |
Not later than one year [member] | |||
Deferred tax assets: | |||
Deferred tax assets to be recovered | 5,844 | 6,213 | |
Deferred tax liabilities: | |||
Deferred tax liabilities to be settled | ¥ (3,648) | ¥ (1,413) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [abstract] | ||
Weighted average of ordinary shares outstanding | 28,264,705,000 | 28,264,705,000 |
Stock Appreciation Rights - Add
Stock Appreciation Rights - Additional Information (Detail) shares in Thousands, ¥ in Millions | Aug. 21, 2006$ / sharesshares | Jan. 05, 2006$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥) |
Disclosure of defined benefit plans [line items] | |||||
Number of stock appreciation rights awarded | shares | 53,220 | 4,050 | |||
Exercise price of awards | $ / shares | $ 6.83 | $ 5.33 | |||
Stock appreciation right exercise period | 5 years | 5 years | |||
Stock appreciation right, shares outstanding | shares | 55,010 | 55,010 | |||
Stock appreciation right, shares exercisable | shares | 55,010 | 55,010 | |||
Stock appreciation right, intrinsic value | ¥ 735 | ¥ 477 | |||
Gain (loss) on net fair value through profit or loss | (258) | 343 | ¥ (179) | ||
Salary and staff welfare payable included under other liabilities for the units not exercised | 735 | 477 | |||
Salary and staff welfare payable included under other liabilities for the units exercised but not paid | ¥ 13 | ¥ 13 | |||
Bottom of range [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Stock appreciation rights, expected volatility | 30.00% | 30.00% | |||
Stock appreciation rights, risk free interest rate | 1.42% | 1.42% | |||
Top of range [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Stock appreciation rights, expected volatility | 36.00% | 36.00% | |||
Stock appreciation rights, expected dividend yield | 3.00% | 3.00% | |||
Stock appreciation rights, risk free interest rate | 1.82% | 1.82% |
Dividends - Additional Informat
Dividends - Additional Information (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of dividends [line items] | |||
Dividend per share | ¥ 0.16 | ¥ 0.40 | ¥ 0.24 |
Dividend paid | ¥ 4,522 | ¥ 11,306 | ¥ 6,784 |
Proposed dividend per share | ¥ 0.73 | ||
Proposed dividend | ¥ 20,633 | ||
Core tier 2 capital securities [member] | |||
Disclosure of dividends [line items] | |||
Distribution approved | ¥ 394 | ¥ 384 | ¥ 380 |
Disclosures About the Tempora_3
Disclosures About the Temporary Exemption From IFRS 9 - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | |
Disclosure about temporary exemption from IFRS 9 [line items] | |
Percentage of carrying amount of liabilities | 90.00% |
Disclosures About the Tempora_4
Disclosures About the Temporary Exemption From IFRS 9 - Summary of Fair Value of Financial Assets Under IFRS 9 and Fair Value Changes (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Fair value of the financial assets | [1] | ¥ 2,618,108 | ¥ 2,169,297 |
Changes in fair value of financial assets | [1] | 102,827 | 38,101 |
Held for trading financial assets [member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Fair value of the financial assets | [1] | 141,608 | 138,717 |
Changes in fair value of financial assets | [1] | 19,057 | (16,932) |
Financial assets that are managed and whose performance are evaluated on a fair value basis [member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Fair value of the financial assets | [1] | 0 | |
Changes in fair value of financial assets | [1] | 0 | |
Other financial assets - Financial assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding [member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Fair value of the financial assets | [1] | 1,615,856 | 1,502,203 |
Changes in fair value of financial assets | [1] | 6,029 | 95,480 |
Other financial assets - Financial assets with contractual terms that do not give rise on SPPI [member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Fair value of the financial assets | [1] | 860,644 | 528,377 |
Changes in fair value of financial assets | [1] | ¥ 77,741 | ¥ (40,447) |
[1] | Only including securities at fair value through profit or loss, loans (excluding policy loans), available-for-sale securities and held-to-maturity securities. |
Disclosures about The Tempora_5
Disclosures about The Temporary Exemption From IFRS 9 - Summary of Credit Risk Exposure for Financial Assets with Contractual Terms that Give Rise on SPPI (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | ¥ 1,570,869 | ¥ 1,457,888 |
Domestic listed [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 1,563,075 | 1,455,484 |
Overseas [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 7,794 | 2,404 |
Rating not required [member] | Domestic listed [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2],[3] | 657,905 | 653,328 |
AAA credit rating [member] | Domestic listed [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 893,336 | 787,908 |
AAA credit rating [member] | Overseas [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 30 | |
AA plus credit rating [member] | Domestic listed [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 7,671 | 13,026 |
AA credit rating [member] | Domestic listed [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 1,163 | 1,152 |
AA minus credit rating [member] | Domestic listed [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 3,000 | 70 |
A Plus Credit Rating [Member] | Overseas [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 4,014 | |
A credit rating [member] | Overseas [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 3,541 | 1,755 |
A minus credit rating [member] | Overseas [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 35 | 493 |
BBB plus credit rating [member] | Overseas [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 135 | 118 |
BBB minus credit rating [member] | Overseas [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | 14 | 14 |
Not rated [member] | Overseas [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1],[2] | ¥ 25 | ¥ 24 |
[1] | Credit risk ratings for domestic assets are provided by domestic qualified external rating agencies and credit risk ratings for overseas assets are provided by overseas qualified external rating agencies. | ||
[2] | For financial assets measured at amortised cost, carrying amount before adjusting impairment allowance is disclosed here. | ||
[3] | Mainly including government bonds and policy financial bonds. |
Disclosures about The Tempora_6
Disclosures about The Temporary Exemption From IFRS 9 - Summary of Financial Assets Not Considered to have Low Credit Risk on Reporting Date (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1] | ¥ 11,859 | ¥ 14,272 |
Fair value | 8,246 | 14,551 | |
Domestic listed [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1] | 11,834 | 14,248 |
Fair value | 8,237 | 14,539 | |
Overseas [member] | |||
Disclosure of detailed information about financial assets described in paragraph 39E(a) of IFRS 4 [line items] | |||
Carrying amount | [1] | 25 | 24 |
Fair value | ¥ 9 | ¥ 12 | |
[1] | For financial assets measured at amortised cost, carrying amount before adjusting impairment allowance is disclosed here. |
Significant Related Party Tra_3
Significant Related Party Transactions - Summary of Information of Parent Company (Detail) - China Life Insurance (Group) Company ("CLIC") [member] | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [line items] | |
Name | CLIC |
Location of registration | Beijing, China |
Principal business | Insurance services including receipt of premiums and payment of benefits in respect of the in-force life, health, accident and other types of personal insurance business, and the reinsurance business; holding or investing in domestic and overseas insurance companies or other financial insurance institutions; fund management business permitted by national laws and regulations or approved by the State Council of the People’s Republic of China; and other businesses approved by insurance regulatory agencies. |
Relationship with the Company | Immediate and ultimate holding company |
Nature of ownership | State-owned |
Legal representative | Wang Bin |
Significant Related Party Tra_4
Significant Related Party Transactions - Summary of Names of Significant Related Parties and Nature of Relationship with Company (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
China Life Real Estate Co., Limited ("CLRE") [member] | |
Disclosure of transactions between related parties [line items] | |
Relationship with the Company | Under common control of CLIC |
China Life Insurance (Overseas) Company Limited ("CL Overseas") [member] | |
Disclosure of transactions between related parties [line items] | |
Relationship with the Company | Under common control of CLIC |
China Life Investment Holding Company Limited ("CLI") [member] | |
Disclosure of transactions between related parties [line items] | |
Relationship with the Company | Under common control of CLIC |
China Life Ecommerce Company Limited ("CL Ecommerce") [member] | |
Disclosure of transactions between related parties [line items] | |
Relationship with the Company | Under common control of CLIC |
China Life Enterprise Annuity Fund ("EAP") [member] | |
Disclosure of transactions between related parties [line items] | |
Relationship with the Company | A pension fund jointly set up by the Company and others |
Significant Related Party Tra_5
Significant Related Party Transactions - Summary of Registered Capital of Related Parties with Control Relationship and Changes (Detail) - 12 months ended Dec. 31, 2019 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) | |
China Life Insurance (Group) Company ("CLIC") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | ¥ 4,600 | ||
Registered capital of related parties with control, ending balance | 4,600 | ||
China Life Asset Management Company Limited ("AMC") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | 4,000 | ||
Registered capital of related parties with control, ending balance | 4,000 | ||
China Life Pension Company Limited ("Pension Company") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | 3,400 | ||
Registered capital of related parties with control, ending balance | 3,400 | ||
China Life (Suzhou) Pension and Retirement Investment Company Limited ("Suzhou Pension Company") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | 1,991 | ||
Registered capital of related parties with control, ending balance | 1,991 | ||
China Life AMP Asset Management Company ("CL AMP") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | 1,288 | ||
Registered capital of related parties with control, ending balance | 1,288 | ||
China Life Wealth Management Co., Limited ("CL Wealth") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | 200 | ||
Registered capital of related parties with control, ending balance | 200 | ||
Shanghai Rui Chong Investment Co., Limited ("Rui Chong Company") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | 6,800 | ||
Registered capital of related parties with control, ending balance | 6,800 | ||
China Life (Beijing) Health Management Co., Limited ("CL Health") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | [1] | 1,730 | |
Decrease in registered capital of related parties with control | [1] | (200) | |
Registered capital of related parties with control, ending balance | [1] | 1,530 | |
China Life Franklin (Shenzhen) Equity Investment Fund Management Co., Limited ("Franklin Shenzhen Company") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | $ | $ 2 | ||
Registered capital of related parties with control, ending balance | $ | $ 2 | ||
Xi'an Shengyi Jingsheng Real Estate Co., Ltd. ("Shengyi Jingsheng") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | 1,131 | ||
Registered capital of related parties with control, ending balance | 1,131 | ||
Dalian Hope Building Company Ltd. ("Hope Building") [member] | |||
Disclosure of transactions between related parties [line items] | |||
Registered capital of related parties with control, beginning balance | 484 | ||
Registered capital of related parties with control, ending balance | ¥ 484 | ||
[1] | The Group reduced its capital contribution to CL Health by RMB200 million for the year ended 31 December 2019. As at 4 September 2019, CL Health completed the business registration modification procedure for the registered capital with the amount reduced from RMB1,730 million to RMB1,530 million. |
Significant Related Party Tra_6
Significant Related Party Transactions - Summary of Registered Capital of Related Parties with Control Relationship and Changes (Parenthetical) (Detail) - China Life Beijing Health Management Co Limited [member] - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Sep. 04, 2019 | Dec. 31, 2018 | [1] | ||
Disclosure of transactions between related parties [line items] | |||||
Capital contribution | ¥ 200 | ||||
Registered capital of related parties with control | ¥ 1,530 | [1] | ¥ 1,730 | ¥ 1,730 | |
[1] | The Group reduced its capital contribution to CL Health by RMB200 million for the year ended 31 December 2019. As at 4 September 2019, CL Health completed the business registration modification procedure for the registered capital with the amount reduced from RMB1,730 million to RMB1,530 million. |
Significant Related Party Tra_7
Significant Related Party Transactions - Summary of Percentages of Holding of Related Parties with Control Relationship and Changes (Detail) ¥ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019HKD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018HKD ($) | ||
China Life Insurance (Group) Company ("CLIC") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Ownership interest | ¥ 19,324 | ¥ 19,324 | |||||
Percentage of holding | 68.37% | 68.37% | 68.37% | 68.37% | 68.37% | 68.37% | |
China Life Asset Management Company Limited ("AMC") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 1,680 | ¥ 1,680 | |||||
Percentage of holding | 60.00% | 60.00% | |||||
China Life Pension Company Limited ("Pension Company") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 2,746 | ¥ 2,746 | |||||
Percentage of holding | 74.27% | 74.27% | |||||
China Life Franklin Asset Management Company Limited [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | $ | $ 130 | $ 130 | |||||
Percentage of holding | 50.00% | 50.00% | |||||
China Life (Suzhou) Pension and Retirement Investment Company Limited ("Suzhou Pension Company") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Increase in ownership interest in subsidiaries | ¥ 200 | ||||||
Decrease in ownership interest in subsidiaries | 0 | ||||||
Ownership interest in subsidiary | ¥ 1,786 | ¥ 1,586 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
China Life AMP Asset Management Company ("CL AMP") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 1,095 | ¥ 1,095 | |||||
Percentage of holding | 85.03% | 85.03% | |||||
China Life Wealth Management Co., Limited ("CL Wealth") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 200 | ¥ 200 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
Golden Phoenix Tree Limited [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Percentage of holding | 100.00% | 100.00% | |||||
King Phoenix Tree Limited [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Percentage of holding | 100.00% | 100.00% | |||||
Shanghai Rui Chong Investment Co., Limited ("Rui Chong Company") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 6,800 | ¥ 6,800 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
New Aldgate Limited [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 1,167 | ¥ 1,167 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
Glorious Fortune Forever Limited [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Percentage of holding | 100.00% | 100.00% | |||||
CL Hotel Investor, L.P. [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Percentage of holding | 100.00% | 100.00% | |||||
Golden Bamboo Limited [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 1,993 | ¥ 1,993 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
Sunny Bamboo Limited [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 1,876 | ¥ 1,876 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
Fortune Bamboo Limited [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 2,435 | ¥ 2,435 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
China Century Core Fund Limited ("Century Core Fund") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | $ | $ 1,125 | $ 1,125 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
China Life (Beijing) Health Management Co., Limited ("CL Health") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ (200) | ||||||
Ownership interest in subsidiary | ¥ 1,530 | ¥ 1,730 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
China Life Franklin (Shenzhen) Equity Investment Fund Management Co., Limited ("Franklin Shenzhen Company") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | $ | 2 | 2 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
Guo Yang Guo Sheng [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ (100) | ||||||
Ownership interest in subsidiary | ¥ 3,150 | ¥ 3,250 | |||||
Percentage of holding | 99.997% | 99.997% | |||||
New Capital Wisdom Limited [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Percentage of holding | 100.00% | 100.00% | |||||
New Fortune Wisdom Limited [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Percentage of holding | 100.00% | 100.00% | |||||
Wisdom Forever Limited Partnership [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | $ | $ 452 | $ 452 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
Shanghai Yuan Shu Yuan Jiu Investment Management Partnership (Limited Partnership) [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 606 | ¥ 606 | |||||
Percentage of holding | 99.98% | 99.98% | |||||
Shanghai Yuan Shu Yuan Pin Investment Management Partnership Limited Partnership [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 606 | ¥ 606 | |||||
Percentage of holding | 99.98% | 99.98% | |||||
Shanghai Wansheng Industry Partnership Limited Partnership [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 4,000 | ¥ 4,000 | |||||
Percentage of holding | 99.98% | 99.98% | |||||
Ningbo Meishan Bonded Port Area Bai Ning Investment Partnership (Limited Partnership) [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 1,680 | ¥ 1,680 | |||||
Percentage of holding | 99.98% | 99.98% | |||||
Hope Building [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 484 | ¥ 484 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
Wuhu Yuanxiang Tianfu Investment Management Partnership [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 533 | ¥ 533 | |||||
Percentage of holding | 99.98% | 99.98% | |||||
Wuhu Yuanxiang Tianyi Investment Management Partnership [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 533 | ¥ 533 | |||||
Percentage of holding | 99.98% | 99.98% | |||||
Shengyi Jingsheng [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Decrease in ownership interest in subsidiaries | ¥ 0 | ||||||
Ownership interest in subsidiary | ¥ 1,063 | ¥ 1,063 | |||||
Percentage of holding | 100.00% | 100.00% | |||||
CBRE Global Investors U.S. Investments I, LLC ("CG Investments") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Increase in ownership interest in subsidiaries | [1] | ¥ 2,859 | |||||
Decrease in ownership interest in subsidiaries | [1] | 0 | |||||
Ownership interest in subsidiary | [1] | ¥ 2,859 | |||||
Percentage of holding | [1] | 99.99% | |||||
China Life Guangde (Tianjin) Equity Investment Fund Partnership (Limited Partnership) ("CL Guang De") [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Increase in ownership interest in subsidiaries | [1] | ¥ 10 | |||||
Decrease in ownership interest in subsidiaries | [1] | 0 | |||||
Ownership interest in subsidiary | [1] | ¥ 10 | |||||
Percentage of holding | [1] | 99.95% | |||||
[1] | CG Investments and CL Guang De were newly included in the consolidated financial statements of the Group for the year ended 31 December 2019. |
Significant Related Party Tra_8
Significant Related Party Transactions - Summary of Significant Transactions Carried Out by Group with Significant Related Parties (Detail) - CNY (¥) ¥ in Millions | Aug. 21, 2019 | May 08, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | ||||||
Payment of dividends from the Company to CLIC | ¥ 4,522 | ¥ 11,306 | ¥ 6,784 | |||
Interest on deposits received from CGB | 26,695 | 22,699 | 23,827 | |||
Sino-Ocean Group Holding Limited ("Sino-Ocean") [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Dividend from significant related parties | ¥ 224 | ¥ 145 | ||||
Transactions between Sino-Ocean and group [member] | Sino-Ocean Group Holding Limited ("Sino-Ocean") [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Dividend from significant related parties | 369 | 558 | 553 | |||
Interest of corporate bonds received from Sino-Ocean | 27 | 27 | 27 | |||
Project management fee paid to Sino-Ocean | 2 | 55 | ||||
Transactions Between Consolidated Structured Entities Or Other Subsidiaries And Company [member] | Consolidated structured entities [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Distributions received in investments in consolidated structured entities | 10,965 | 8,247 | 3,944 | |||
China Life Insurance (Group) Company ("CLIC") [member] | Transactions with CLIC and subsidiaries [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Policy management fee received from CLIC | [1],[2] | 575 | 629 | 740 | ||
Asset management fee received | [3] | 89 | 100 | 107 | ||
Payment of dividends from the Company to CLIC | 3,092 | 7,729 | 4,638 | |||
China Life Asset Management Company Limited ("AMC") [member] | Transactions with CLIC and subsidiaries [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Distribution of profits | 122 | 128 | 125 | |||
China Life Asset Management Company Limited ("AMC") [member] | Transactions between AMC and company [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Distribution of profits | 183 | 193 | 187 | |||
Payment of an asset management fee to significant related parties | [2],[4] | 1,353 | 1,326 | 1,154 | ||
China Life Insurance (Overseas) Company Limited ("CL Overseas") [member] | Transactions with CLIC and subsidiaries [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Asset management fee received | [5] | 86 | 63 | 119 | ||
China Life Property & Casualty Insurance Company Limited ("CLP&C") [member] | Transactions with CLIC and subsidiaries [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Asset management fee received | [6] | 14 | 14 | 14 | ||
Payment of insurance premium to CLP&C | 48 | 47 | 44 | |||
Claim and other payments received from CLP&C | 16 | 14 | 16 | |||
Agency fee received | [2],[7] | 2,297 | 2,959 | 3,030 | ||
Rental and a service fee received from CLP&C | 51 | 50 | 59 | |||
Dividend from significant related parties | 66 | 69 | ||||
China Life Real Estate Co., Limited ("CLRE") [member] | Transactions with CLIC and subsidiaries [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Payment of rental, project fee and other expenses to CLRE | 43 | 45 | 50 | |||
China Life Investment Holding Company Limited ("CLI") [member] | Transactions with CLIC and subsidiaries [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Property leasing expenses charged by CLI | [8] | 78 | 83 | 78 | ||
Payment of an asset management fee to significant related parties | [2],[9] | 653 | 529 | 396 | ||
Property leasing income received from CLI | 39 | 37 | 37 | |||
China Life Ecommerce Company Limited ("CL Ecommerce") [member] | Transactions with CLIC and subsidiaries [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Payment of a business management service fee to CL Ecommerce | 53 | 64 | ||||
China Guangfa Bank Co. Ltd ("CGB") [member] | Transactions between CGB and group [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Dividend from significant related parties | 284 | |||||
Interest on deposits received from CGB | 2,584 | 1,425 | 1,382 | |||
Commission expenses charged by CGB | [10] | 158 | 112 | 92 | ||
Capital contribution to significant related parties | 13,012 | |||||
China Life Enterprise Annuity Fund ("EAP") [member] | Transactions between EAP and group [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Contribution to EAP | 1,003 | 593 | 700 | |||
Other associates and joint ventures [member] | Transaction Between Other Associates And Joint Ventures And The Group [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Distribution of profit from significant related parties | 2,574 | 2,279 | 1,240 | |||
Other associates and joint ventures [member] | Transactions between other associates and joint ventures and company [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Distribution of profit from significant related parties | 2,210 | 1,424 | 203 | |||
China Life Pension Company Limited ("Pension Company") [member] | Transactions between pension company and company [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Agency fee received | [11] | 54 | 43 | 42 | ||
Rental received from Pension Company | 54 | 45 | 43 | |||
Marketing fee income for promotion of annuity business from Pension Company | 8 | 13 | 10 | |||
China Life Franklin Asset Management Company Limited [member] | Transactions between AMC HK and company [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Payment of an investment management fee to AMC HK | [12] | 18 | 18 | 14 | ||
China Life (Suzhou) Pension and Retirement Investment Company Limited ("Suzhou Pension Company") [member] | Transactions between Suzhou Pension Company and Company [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Capital contribution to significant related parties | 200 | 260 | ||||
Shanghai Rui Chong Investment Co., Limited ("Rui Chong Company") [member] | Transactions between Rui Chong Company and company [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Capital contribution to significant related parties | 601 | |||||
Rental fee charged by Rui Chong Company | 47 | 47 | ||||
Other subsidiaries [member] | Transactions Between Consolidated Structured Entities Or Other Subsidiaries And Company [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Distribution of profits from the other subsidiaries to the Company | 206 | ¥ 426 | ¥ 70 | |||
Guo Yang Guo Sheng [member] | Transactions between the Guo Yang Guo Sheng and the Company [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Capital withdraw from significant related parties | 100 | |||||
China Life Beijing Health Management Co Limited [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Capital contribution to significant related parties | 200 | |||||
China Life Beijing Health Management Co Limited [member] | Transactions between the CL Health and the Company [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Capital withdraw from significant related parties | ¥ 200 | |||||
[1] | On 26 December 2017, the Company and CLIC renewed a renewable insurance agency agreement, effective from 1 January 2018 to 31 December 2020. The Company performs its duties of insurance agents in accordance with the agreement, but does not acquire any rights and profits or assume any obligations, losses and risks as an insurer of the non-transferable policies. The policy management fee was payable semi-annually, and is equal to the sum of (1) the number of policies in force as at the last day of the period, multiplied by RMB8.0 per policy and (2) 2.5% of the actual premiums and deposits received during the period, in respect of such policies. The policy management fee income is included in other income in the consolidated statement of comprehensive income. | |||||
[2] | These transactions constitute continuing connected transactions which are subject to reporting and announcement requirements but are exempt from independent shareholders’ approval requirements under Chapter 14A of the Listing Rules. The Company has complied with the disclosure requirements in accordance with Chapter 14A of the Listing Rules. | |||||
[3] | In December 2018, CLIC renewed an asset management agreement with AMC, entrusting AMC to manage and make investments for its insurance funds. The agreement is effective from 1 January 2019 to 31 December 2021. In accordance with the agreement, CLIC paid AMC a basic service fee at the rate of 0.05% per annum for the management of insurance funds. The service fee was calculated on a monthly basis and payable on a seasonal basis, by multiplying the average book value of the assets under management (after deducting the funds obtained from and interests accrued for repurchase transactions, deducting the principal and interests of debt and equity investment schemes, project asset-backed schemes, customised non-standard products) at the beginning and the end of any given month by the rate of 0.05%, divided by 12. According to specific projects, debt investment schemes, equity investment plans, project asset-backed plans, and customised non-standard products are based on contractual agreed rate, without paying for extra management fee. At the end of each year, CLIC assessed the investment performance of the assets managed by AMC, compared the actual results against benchmark returns and made adjustment to the basic service fee. | |||||
[4] | On 28 December 2018, the Company and AMC renewed a renewable agreement for the management of insurance funds, effective from 1 January 2019 to 31 December 2021. In accordance with the agreement, the Company entrusted AMC to manage and make investments for its insurance funds and paid AMC a fixed investment management service fee and a variable investment management service fee. The fixed annual service fee was calculated and payable on a seasonal basis, by multiplying the average net value of the assets under management by the rate of 0.05%; the variable investment management service fee was payable annually, based on the results of performance evaluation, at 20% of the fixed service fee per annum. Asset management fees charged to the Company by AMC are eliminated in the consolidated statement of comprehensive income. | |||||
[5] | In 2018, CL Overseas renewed an investment management agreement with AMC HK, effective from 1 January 2018 to 31 December 2022. In accordance with the agreement, CL Overseas entrusted AMC HK to manage and make investments for its insurance funds and paid AMC HK a basic investment management fee and an investment performance fee. The basic investment management fee was accrued by multiplying the weighted average total funds by the basic fee rate. The investment performance fee was calculated based on the difference between the total actual annual yields and predetermined net realised yield. The basic investment management fee was calculated and payable on a semi-annual basis. The investment performance fee was payable according to the total actual annual yield at the end of each year. | |||||
[6] | On 15 May 2018, CLP&C renewed an agreement for the management of insurance funds with AMC, entrusting AMC to manage and make investments for its insurance funds, effective from 1 January 2018 to 31 December 2019. The agreement was subject to an automatic one-year renewal if no objections were raised by both parties upon expiry. In accordance with the agreement, CLP&C paid AMC a fixed service fee and a variable service fee. The fixed service fee was calculated on a monthly basis and payable on an annual basis, by multiplying the average net asset value of assets of each category under management at the beginning and the end of any given month by the responding annual investment management fee rate, divided by 12. The variable service fee was payable on an annual basis, and linked to investment performance. | |||||
[7] | On 31 January 2018, the Company and CLP&C signed a new framework insurance agency agreement, whereby CLP&C entrusted the Company to act as an agent to sell designated P&C insurance products in certain authorised jurisdictions. The agency fee was determined based on cost (tax included) plus a margin. The agreement is effective for three years, from 8 March 2018 to 7 March 2021. | |||||
[8] | On 29 December 2017, the Company renewed a property leasing agreement with CLI, effective from 1 January 2018 to 31 December 2020, pursuant to which CLI leased to the Company certain buildings of its own. Annual rental payable by the Company to CLI in relation to the CLI properties is determined either by reference to the market rent, or, the costs incurred by CLI in holding and maintaining the properties, plus a margin of approximately 5%. The rental was paid on a semi-annual basis, and each payment was equal to one half of the total annual rental. | |||||
[9] | On 31 December 2018, the Company and CLI renewed a management agreement of alternative investment of insurance funds, effective from 1 January 2019 to 31 December 2020. In accordance with the agreement, the Company entrusted CLI to engage in investment, operation and management of equities, real estate and related financial products, and securitised financial products under the instructions of the annual guidelines. The Company paid CLI an asset management fee and a performance related bonus based on the agreement. For fixed-income projects, the management fee rate was between 0.05% and 0.6% according to different ranges of returns; for non-fixed-income projects, the management fee rate for invested projects was 0.3%, the management fee rates for newly signed projects were between 0.05% and 0.3% according to CLI’s involvement in project management and the performance-related bonus is based on the internal return rate upon expiry of the project. In addition, the Company adjusts the investment management fees for fixed-income projects and non-fixed-income projects based on the annual evaluation results on CLI’s performance. The adjustment (variable management fee) ranges from negative 10% to positive 15% of the investment management fee in the current period. | |||||
[10] | On 19 October 2018, the Company and CGB renewed an insurance agency agreement to distribute insurance products. All individual insurance products suitable for distribution through bancassurance channels are included in the agreement. CGB provides agency services, including the sale of insurance products, collecting premiums and paying benefits. The Company paid the agency commission by multiplying the net amount of total premiums received from the sale of each category individual insurance products after deducting the surrender premiums in the hesitation period, by the responding fixed commission rate. The commission rates for various insurance products sold by CGB are agreed based on arm’s length transactions. The commissions are payable on a monthly basis. The agreement is effective from the signing date to 16 August 2020. On 28 December 2018, the Company and CGB signed another insurance agency agreement to distribute corporate group insurance products. The corporate group insurance products suitable for distribution through bancassurance channels are included in the agreement. The Company paid the agency commission by multiplying the net amount of total premiums received from the sale of each category group insurance product after deducting the surrender premiums, by the responding fixed commission rate. The commission rates for various insurance products sold by CGB are agreed by reference to comparable market prices of independent third-parties. The commissions are paid on a monthly basis. The agreement is effective for two years from 1 January 2019, with an automatic one-year renewal if no objections were raised by either party upon expiry. | |||||
[11] | On 1 January 2019, the Company and Pension Company renewed an entrusted agency agreement for pension business acted by life business. The agreement is effective from 1 January 2019 to 31 December 2021. The business means that Pension Company entrusted the Company to sell enterprise annuity funds, pension security business, occupational pension business and the third-party asset management business. The commissions agreed upon in the agreement include the daily business commissions and the annual promotional plans commissions. According to the agreement, the commissions for the entrusting service of enterprise annuity fund management, which is the core business of Pension Company, are calculated at 30% to 80% of the annual entrusting management fee revenues, depending on the duration of the agreement. The commissions for account management service are calculated at 60% of the first year’s account management fee and were only charged for the first year, regardless of the duration of the agreement. The commissions for investment management services, in accordance with the duration of the agreement, are calculated at 60% to 3% of the annual investment management fee (excluding risk reserves for investment), and decreased annually. The commissions of the group pension plan are, in accordance with the duration of the contracts, calculated at 50% to 3% of the annual investment management fee, and decreased annually; the commissions of the personal pension plan are calculated at 30% to 50% of the annual investment management fee according to the various rates of daily management fee applied to the various individual pension management products in all of the management years; the commissions of occupation annuity and third-party asset management business are in accordance with the provision of annual promotional plans, which should be determined by both parties on a separate occasion. The commissions charged to Pension Company by the Company are eliminated in the consolidated statement of comprehensive income of the Group. | |||||
[12] | On 31 December 2018, the Company and AMC HK renewed the management agreement of insurance funds investment, which is effective from 1 January 2019 to 31 December 2021. In accordance with the agreement, the Company entrusted AMC HK to manage and make investments for its insurance funds and paid AMC HK an asset management fee on a seasonal basis and the maximum investment management fee paid annually is RMB30 million. The management fee rate for financial products, such as investment plans, project asset-backed plans, customised products and insurance asset management products, set up by AMC HK in the industry permitted by regulatory policies, is set according to contractual terms. The management fee rate for the directive investment operation of term deposits, common stocks, funds, financial products and other investment products, universal account B-2 and entrusted assets account alike was 0.02%; the management fee rate for unlisted equity investment was 0.3%; the management fee rate for customised investment portfolio was agreed upon the management fee of market-oriented entrusted investment. Asset management fees charged to the Company by AMC HK are eliminated in the consolidated statement of comprehensive income. |
Significant Related Party Tra_9
Significant Related Party Transactions - Summary of Significant Transactions Carried Out by Group with Significant Related Parties (Parenthetical) (Detail) ¥ in Millions | Dec. 31, 2018 | Dec. 28, 2018 | Dec. 29, 2017 | Dec. 26, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019CNY (¥) |
Transactions between pension company and company [member] | Distribution and customer service of enterprise annuity funds and pension management business and occupational pension management business agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | Effective from 1 January 2019 to 31 December 2021 | ||||||
Description of agreement fee | According to the agreement, the commissions for the entrusting service of enterprise annuity fund management, which is the core business of Pension Company, are calculated at 30% to 80% of the annual entrusting management fee revenues, depending on the duration of the agreement. The commissions for account management service are calculated at 60% of the first year’s account management fee and were only charged for the first year, regardless of the duration of the agreement. The commissions for investment management services, in accordance with the duration of the agreement, are calculated at 60% to 3% of the annual investment management fee (excluding risk reserves for investment), and decreased annually. The commissions of the group pension plan are, in accordance with the duration of the contracts, calculated at 50% to 3% of the annual investment management fee, and decreased annually; the commissions of the personal pension plan are calculated at 30% to 50% of the annual investment management fee according to the various rates of daily management fee applied to the various individual pension management products in all of the management years; the commissions of occupation annuity and third-party asset management business are in accordance with the provision of annual promotional plans, which should be determined by both parties on a separate occasion. | ||||||
Transactions between AMC HK and company [member] | Offshore investment management service agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | 1 January 2019 to 31 December 2021 | ||||||
Description of agreement fee | The management fee rate for the directive investment operation of term deposits, common stocks, funds, financial products and other investment products, universal account B-2 and entrusted assets account alike was 0.02%; the management fee rate for unlisted equity investment was 0.3%; the management fee rate for customised investment portfolio was agreed upon the management fee of market-oriented entrusted investment. | ||||||
Transactions between parent company and CLI [member] | Alternative investment of insurance funds management agreement one [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | 1 January 2019 to 31 December 2020 | ||||||
Management fee for fixed income projects description | For fixed-income projects, the management fee rate was between 0.05% and 0.6% according to different ranges of returns | ||||||
Management fee rate for non-fixed-income projects | 0.30% | ||||||
Management fee rate for non-fixed-income projects description | For non-fixed-income projects, the management fee rate for invested projects was 0.3%, the management fee rates for newly signed projects were between 0.05% and 0.3% according to CLI's involvement in project management and the performance-related bonus is based on the internal return rate upon expiry of the project. | ||||||
Transactions between parent company and CLI [member] | Alternative investment of insurance funds management agreement two [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | 1 January 2019 to 31 December 2020 | ||||||
Description of variable management fee | The adjustment (variable management fee) ranges from negative 10% to positive 15% of the investment management fee in the current period. | ||||||
Transactions between parent company and CLI [member] | Property leasing agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | 1 January 2018 to 31 December 2020 | ||||||
Description of agreement fee | Annual rental payable by the Company to CLI in relation to the CLI properties is determined either by reference to the market rent, or, the costs incurred by CLI in holding and maintaining the properties, plus a margin of approximately 5%. | ||||||
Annual rent margin percentage | 5.00% | ||||||
Transactions Between CLIC And AMC [member] | Asset management agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | 1 January 2019 to 31 December 2021 | ||||||
Description of agreement fee | In accordance with the agreement, CLIC paid AMC a basic service fee at the rate of 0.05% per annum for the management of insurance funds. The service fee was calculated on a monthly basis and payable on a seasonal basis, by multiplying the average book value of the assets under management (after deducting the funds obtained from and interests accrued for repurchase transactions, deducting the principal and interests of debt and equity investment schemes, project asset-backed schemes, customised non-standard products) at the beginning and the end of any given month by the rate of 0.05%, divided by 12. | ||||||
Dividend rate percentage | 0.05% | ||||||
Transactions Between CL Overseas And AMCHK [member] | Investment management agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | 1 January 2018 to 31 December 2022 | ||||||
Description of agreement fee | The basic investment management fee was accrued by multiplying the weighted average total funds by the basic fee rate. The investment performance fee was calculated based on the difference between the total actual annual yields and predetermined net realised yield. The basic investment management fee was calculated and payable on a semi-annual basis. The investment performance fee was payable according to the total actual annual yield at the end of each year. | ||||||
Transactions Between CLPC And AMC [member] | Insurance funds management agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | 1 January 2018 to 31 December 2019 | ||||||
Description of agreement fee | In accordance with the agreement, CLP&C paid AMC a fixed service fee and a variable service fee. The fixed service fee was calculated on a monthly basis and payable on an annual basis, by multiplying the average net asset value of assets of each category under management at the beginning and the end of any given month by the responding annual investment management fee rate, divided by 12. The variable service fee was payable on an annual basis, and linked to investment performance. | ||||||
Agreement renewal period | 1 year | ||||||
Transactions between parent company and CLPC [member] | Framework insurance agency agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | 8 March 2018 to 7 March 2021 | ||||||
Period of agreement | 3 years | ||||||
Transactions between parent company and CGB [member] | Insurance agency agreement one [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | Effective from the signing date to 16 August 2020. | ||||||
Transactions between parent company and CGB [member] | Insurance agency agreement two [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | effective for two years from 1 January 2019 | ||||||
Agreement renewal period | 1 year | ||||||
Period of agreement | 2 years | ||||||
Transactions between AMC and company [member] | Insurance funds management agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | 1 January 2019 to 31 December 2021 | ||||||
Description of agreement fee | The fixed annual service fee was calculated and payable on a seasonal basis, by multiplying the average net value of the assets under management by the rate of 0.05%; the variable investment management service fee was payable annually, based on the results of performance evaluation, at 20% of the fixed service fee per annum | ||||||
Fixed annual service fee percentage | 20.00% | ||||||
Variable annual service fee percentage | 0.05% | ||||||
Transactions between parent company and CLIC [Member] | Insurance agency agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Effective date of agreement | 1 January 2018 to 31 December 2020 | ||||||
Description of agreement fee | The policy management fee was payable semi-annually, and is equal to the sum of (1) the number of policies in force as at the last day of the period, multiplied by RMB8.0 per policy and (2) 2.5% of the actual premiums and deposits received during the period, in respect of such policies. | ||||||
Management fee component rate per policy | 8 | ||||||
Percentage of premiums and deposits received | 2.50% | ||||||
Bottom of range [member] | Transactions between pension company and company [member] | Distribution and customer service of enterprise annuity funds and pension management business and occupational pension management business agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Percentage of management fee revenues used to calculate commissions for annuity fund management | 30.00% | ||||||
Bottom of range [member] | Transactions between parent company and CLI [member] | Alternative investment of insurance funds management agreement one [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Management fee rate for fixed-income projects | 0.05% | ||||||
Bottom of range [member] | Transactions between parent company and CLI [member] | Alternative investment of insurance funds management agreement two [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Percentage of variable management fee | (10.00%) | ||||||
Top of range [member] | Transactions between pension company and company [member] | Distribution and customer service of enterprise annuity funds and pension management business and occupational pension management business agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Percentage of management fee revenues used to calculate commissions for annuity fund management | 50.00% | ||||||
Top of range [member] | Transactions between AMC HK and company [member] | Offshore investment management service agreement [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Amount of management fee paid | ¥ 30 | ||||||
Top of range [member] | Transactions between parent company and CLI [member] | Alternative investment of insurance funds management agreement one [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Management fee rate for fixed-income projects | 0.60% | ||||||
Top of range [member] | Transactions between parent company and CLI [member] | Alternative investment of insurance funds management agreement two [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Percentage of variable management fee | 15.00% |
Significant Related Party Tr_10
Significant Related Party Transactions - Summary of Balances Due From and to Significant Related Parties (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of transactions between related parties [line items] | ||
Amount due from related parties | ¥ 757 | ¥ 725 |
China Life Insurance (Group) Company ("CLIC") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due from related parties | 334 | 350 |
China Life Insurance (Overseas) Company Limited ("CL Overseas") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due from related parties | 56 | 68 |
China Life Property & Casualty Insurance Company Limited ("CLP&C") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due from related parties | 334 | 284 |
Amount due to related parties | (31) | (9) |
China Life Investment Holding Company Limited ("CLI") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due from related parties | 18 | 15 |
Amount due to related parties | (401) | (362) |
China Life Real Estate Co., Limited ("CLRE") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due from related parties | 2 | 2 |
China Guangfa Bank Co. Ltd ("CGB") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount deposited with related parties | 59,420 | 61,880 |
Wealth management products and other securities of CGB | 844 | 115 |
Amount due from related parties | 894 | 1,557 |
Amount due to related parties | (75) | (63) |
China Life Ecommerce Company Limited ("CL Ecommerce") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due from related parties | 13 | 6 |
Amount due to related parties | (68) | (67) |
China Life Pension Company Limited ("Pension Company") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due from related parties | 30 | 25 |
Amount due to related parties | (35) | (28) |
China Life Asset Management Company Limited ("AMC") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due to related parties | (381) | (218) |
China Life Franklin Asset Management Company Limited [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due to related parties | (9) | (10) |
China Life Rui Chong Company [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due from related parties | 118 | 18 |
Sino-Ocean Group Holding Limited ("Sino-Ocean") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Corporate bonds from relate parties | 605 | 593 |
Amount due from related parties | ¥ 8 | ¥ 8 |
Significant Related Party Tr_11
Significant Related Party Transactions - Key Management Personnel Compensation (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of key management personnel compensation [abstract] | |||
Salaries and other benefits | ¥ 15 | ¥ 34 | ¥ 28 |
Significant Related Party Tr_12
Significant Related Party Transactions - Additional Information (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Disclosure of transactions between related parties [abstract] | |
Total compensation | ¥ 34 |
Deferred payment | ¥ 7 |
Share Capital - Summary of Shar
Share Capital - Summary of Share Capital Registered, Authorised, Issued and Fully Paid (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of classes of share capital [line items] | ||
No. of shares issued | 28,264,705,000 | |
Share capital | ¥ 28,265 | ¥ 28,265 |
Ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
No. of shares issued | 28,264,705,000 | 28,264,705,000 |
Share capital | ¥ 28,265 | ¥ 28,265 |
Share Capital - Summary of Sh_2
Share Capital - Summary of Share Capital Registered, Authorised, Issued and Fully Paid (Parenthetical) (Detail) - ¥ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Ordinary share, par value | ¥ 1 | ¥ 1 |
Share Capital - Summary of Sh_3
Share Capital - Summary of Share Capital (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [line items] | |||
No. of shares issued | 28,264,705,000 | ||
Share capital | ¥ 28,265 | ¥ 28,265 | |
China Life Insurance (Group) Company ("CLIC") [member] | |||
Disclosure of classes of share capital [line items] | |||
No. of shares issued | [1] | 19,323,530,000 | |
Share capital | [1] | ¥ 19,324 | |
Other equity holders [member] | |||
Disclosure of classes of share capital [line items] | |||
No. of shares issued | 8,941,175,000 | ||
Share capital | ¥ 8,941 | ||
Other equity holders [member] | Domestic listed [member] | |||
Disclosure of classes of share capital [line items] | |||
No. of shares issued | 1,500,000,000 | ||
Share capital | ¥ 1,500 | ||
Other equity holders [member] | Overseas [member] | |||
Disclosure of classes of share capital [line items] | |||
No. of shares issued | [2] | 7,441,175,000 | |
Share capital | [2] | ¥ 7,441 | |
[1] | All shares owned by CLIC are domestic listed shares. | ||
[2] | Overseas listed shares are traded on the Stock Exchange of Hong Kong Limited and the New York Stock Exchange. |
Other Equity Instruments - Summ
Other Equity Instruments - Summary of Other Equity Instruments Basic Information (Detail) ¥ in Millions | Dec. 31, 2019CNY (¥) |
Other equity instruments, Beginning balance | ¥ 7,791 |
Other equity instruments, Ending balance | 7,791 |
Core tier 2 capital securities [member] | |
Other equity instruments, Beginning balance | 7,791 |
Other equity instruments, Ending balance | ¥ 7,791 |
Other Equity Instruments - Addi
Other Equity Instruments - Additional Information (Detail) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2018CNY (¥) | Jul. 03, 2015USD ($) | |
Issuance of capital securities | ¥ | ¥ 28,265 | ¥ 28,265 | |||
Core tier 2 capital securities [member] | |||||
Issuance of capital securities | $ 1,280,000,000 | ||||
Securities issued denomination amount | 200,000 | ||||
Securities issued integral multiples | $ 1,000 | ||||
Proceeds raised from issuance of capital securities | ¥ 7,791 | $ 1,274,000,000 | |||
Term of issued capital securities | 60 years | ||||
Initial distribution rate | 4.00% | ||||
Initial interest-bearing period | 5 years | ||||
US treasury yield plus a margin rate | 2.294% |
Other Equity Instruments - Su_2
Other Equity Instruments - Summary of Equity Attributable to Equity Holders (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Risk Management [line items] | ||
Equity attributable to equity holders of the Company | ¥ 403,764 | ¥ 318,371 |
Equity attributable to ordinary equity holders of the Company | 395,973 | 310,580 |
Equity attributable to other equity instruments holders of the Company | 7,791 | 7,791 |
Equity attributable to non-controlling interests | 5,578 | 4,919 |
Equity attributable to ordinary equity holders of non-controlling interests | ¥ 5,578 | ¥ 4,919 |
Reserves - Summary of Reserves
Reserves - Summary of Reserves (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | ¥ 149,293 | |||
Other comprehensive income for the year | 34,912 | ¥ (2,025) | ¥ (7,926) | |
Ending balance | 197,221 | 149,293 | ||
Effect of associates' adoption of new accounting standards | [1] | (2,889) | ||
Ending balance | 320,401 | |||
Reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | 149,293 | 145,675 | 145,007 | |
Other comprehensive income for the year | 34,847 | (2,070) | (7,912) | |
Appropriation to reserves | 13,087 | 5,885 | 8,445 | |
Other comprehensive income to retained earnings | (86) | |||
Others | 64 | (197) | 135 | |
Ending balance | 197,221 | 149,293 | 145,675 | |
Effect of associates' adoption of new accounting standards | 16 | |||
Ending balance | 149,309 | |||
Share premium [member] | Reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | 53,860 | 53,860 | 53,860 | |
Ending balance | 53,860 | 53,860 | 53,860 | |
Ending balance | 53,860 | |||
Other reserves [member] | Reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | 1,084 | 1,281 | 1,146 | |
Others | 64 | (197) | 135 | |
Ending balance | 1,148 | 1,084 | 1,281 | |
Ending balance | 1,084 | |||
Unrealised gains/(losses) from available-for-sale securities [member] | Reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | (5,412) | (1,986) | 5,100 | |
Other comprehensive income for the year | 34,006 | (3,426) | (7,086) | |
Ending balance | 28,594 | (5,412) | (1,986) | |
Ending balance | (5,412) | |||
Other comprehensive income reclassifiable to profit or loss [member] | Reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | 53 | (717) | (738) | |
Other comprehensive income for the year | 687 | 770 | 21 | |
Ending balance | 756 | 53 | (717) | |
Effect of associates' adoption of new accounting standards | 16 | |||
Ending balance | 69 | |||
Statutory reserve fund [member] | Reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | [2] | 34,659 | 33,384 | 30,166 |
Appropriation to reserves | [2] | 5,857 | 1,275 | 3,218 |
Ending balance | [2] | 40,516 | 34,659 | 33,384 |
Ending balance | [2] | 34,659 | ||
Discretionary reserve fund [member] | Reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | [3] | 33,370 | 30,152 | 28,225 |
Appropriation to reserves | [3] | 1,275 | 3,218 | 1,927 |
Ending balance | [3] | 34,645 | 33,370 | 30,152 |
Ending balance | [3] | 33,370 | ||
General reserve [member] | Reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | [4] | 31,933 | 30,541 | 27,241 |
Appropriation to reserves | [4] | 5,955 | 1,392 | 3,300 |
Ending balance | [4] | 37,888 | 31,933 | 30,541 |
Ending balance | [4] | 31,933 | ||
Exchange differences on translating foreign operations [member] | Reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Beginning balance | (254) | (840) | 7 | |
Other comprehensive income for the year | 230 | 586 | (847) | |
Ending balance | (24) | (254) | ¥ (840) | |
Ending balance | ¥ (254) | |||
Other comprehensive income non- reclassifiable to profit or loss [member] | Reserves [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Other comprehensive income for the year | (76) | |||
Other comprehensive income to retained earnings | (86) | |||
Ending balance | ¥ (162) | |||
[1] | On 1 January 2019, CGB began to adopt IFRS 9. The cumulative effect of initial adoption of IFRS 9 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. As at 1 January 2019, The Group’s retained earnings were decreased by RMB2,857 million and reserves were increased by RMB16 million. The Group’s equity as at 1 January 2019 was decreased by RMB2,841 million in total. On 1 January 2019, China Unicom began to adopt IFRS 16. The cumulative effect of initial adoption of IFRS 16 was adjusted to its equity as at 1 January 2019. Accordingly, the impact was adjusted by the Group based on its percentage of holding. The Group’s retained earnings as at 1 January 2019 were decreased by RMB48 million. | |||
[2] | Pursuant to the relevant PRC laws, the Company appropriated 10% of its net profit under Chinese Accounting Standards (“CAS”) to statutory reserve which amounted to RMB5,857 million for the year ended 31 December 2019 (2018: RMB1,275 million, 2017: RMB3,218 million). | |||
[3] | Approved at the Annual General Meeting in May 2019, the Company appropriated RMB1,275 million to the discretionary reserve fund for the year ended 31 December 2018 based on net profit under CAS (2018: RMB3,218 million, 2017: RMB1,927 million). | |||
[4] | Pursuant to “Financial Standards of Financial Enterprises - Implementation Guide” issued by the Ministry of Finance of the PRC on 30 March 2007, for the year ended 31 December 2019, the Company appropriated 10% of net profit under CAS which amounted to RMB5,857 million to the general reserve for future uncertain catastrophes, which cannot be used for dividend distribution or conversion to share capital increment (2018: RMB1,275 million, 2017: RMB3,218 million). In addition, pursuant to the CAS, the Group appropriated RMB98 million to the general reserve of its subsidiaries attributable to the Company in the consolidated financial statements (2018: RMB117 million, 2017: RMB82 million). |
Reserves - Summary of Reserve_2
Reserves - Summary of Reserves (Parenthetical) (Detail) - Chinese accounting standards [member] - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory reserve fund [member] | |||
Disclosure of reserves within equity [line items] | |||
Percentage of net profit on statutory reserve | 10.00% | ||
Statutory reserve | ¥ 5,857 | ¥ 1,275 | ¥ 3,218 |
Discretionary reserve fund [member] | |||
Disclosure of reserves within equity [line items] | |||
Discretionary reserve fund | ¥ 1,275 | 3,218 | 1,927 |
General reserve [member] | |||
Disclosure of reserves within equity [line items] | |||
Percentage of net profit on general reserve | 10.00% | ||
General reserve for catastrophe | ¥ 5,857 | 1,275 | 3,218 |
Transfer of General reserve to subsidiaries | ¥ 98 | ¥ 117 | ¥ 82 |
Notes to the Consolidated Sta_3
Notes to the Consolidated Statement of Cash Flows - Summary of Changes in Liabilities Arising From Financing Activities (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities, beginning balance | ¥ 221,950 | ¥ 112,482 | ¥ 141,557 |
Changes from financing cash flows | (31,233) | 104,724 | (33,558) |
Foreign exchange movement | 137 | 629 | (497) |
Changes arising from losing control of consolidated structured entities | (501) | (7) | |
New leases | 2,239 | ||
Interest expense | 4,255 | 4,115 | 4,987 |
Others | (91) | ||
Liabilities arising from financing activities,ending balance | 198,941 | 221,950 | 112,482 |
Liabilities arising from financing activities,ending balance | 224,135 | ||
Interest-bearing loans and borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities, beginning balance | 20,150 | 18,794 | 16,170 |
Changes from financing cash flows | (242) | 727 | 3,121 |
Foreign exchange movement | 137 | 629 | (497) |
Liabilities arising from financing activities,ending balance | 20,045 | 20,150 | 18,794 |
Liabilities arising from financing activities,ending balance | 20,150 | ||
Bonds payable [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities, beginning balance | 37,998 | ||
Changes from financing cash flows | 34,988 | (38,000) | |
Interest expense | 2 | 2 | |
Liabilities arising from financing activities,ending balance | 34,990 | ||
Lease liabilities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Changes from financing cash flows | (1,348) | ||
New leases | 2,239 | ||
Interest expense | 106 | ||
Others | (91) | ||
Liabilities arising from financing activities,ending balance | 3,091 | ||
Liabilities arising from financing activities,ending balance | 2,185 | ||
Securities sold under agreements to repurchase [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities, beginning balance | 192,141 | 87,309 | 81,088 |
Changes from financing cash flows | (73,552) | 104,832 | 6,228 |
Changes arising from losing control of consolidated structured entities | (501) | (7) | |
Liabilities arising from financing activities,ending balance | 118,088 | 192,141 | 87,309 |
Liabilities arising from financing activities,ending balance | 192,141 | ||
Other liability-payable to third party holders of consolidated structured entities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities, beginning balance | 9,407 | 6,252 | 5,488 |
Changes from financing cash flows | 11,993 | 3,155 | 764 |
Liabilities arising from financing activities,ending balance | 21,400 | 9,407 | 6,252 |
Liabilities arising from financing activities,ending balance | 9,407 | ||
Other liability-interest payable related to financing activities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities, beginning balance | 252 | 127 | 813 |
Changes from financing cash flows | (3,072) | (3,990) | (5,671) |
Interest expense | 4,147 | 4,115 | 4,985 |
Liabilities arising from financing activities,ending balance | ¥ 1,327 | 252 | ¥ 127 |
Liabilities arising from financing activities,ending balance | ¥ 252 |
Provisions and Contingencies -
Provisions and Contingencies - Summary of Significant Contingent Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Legal proceedings contingent liability [member] | ||
Disclosure of contingent liabilities [line items] | ||
Pending lawsuits | ¥ 523 | ¥ 488 |
Commitments - Capital Commitmen
Commitments - Capital Commitments Relating to Property Development Projects and Investments (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of commitments and contingencies [line items] | ||
Capital commitments | ¥ 68,807 | ¥ 86,147 |
Investments [member] | ||
Disclosure of commitments and contingencies [line items] | ||
Capital commitments | 64,866 | 81,217 |
Property, plant and equipment [member] | ||
Disclosure of commitments and contingencies [line items] | ||
Capital commitments | ¥ 3,941 | ¥ 4,930 |
Commitments - Future Minimum Le
Commitments - Future Minimum Lease Payments under Non-cancellable Operating Leases (Detail) - Lessee [member] ¥ in Millions | Dec. 31, 2018CNY (¥) |
Disclosure of future minimum lease payments [line items] | |
Future minimum lease payments | ¥ 2,474 |
Not later than one year [member] | |
Disclosure of future minimum lease payments [line items] | |
Future minimum lease payments | 1,049 |
Later than one year and not later than five years [member] | |
Disclosure of future minimum lease payments [line items] | |
Future minimum lease payments | 1,373 |
Later than five years [member] | |
Disclosure of future minimum lease payments [line items] | |
Future minimum lease payments | ¥ 52 |
Commitments - Future Minimum Re
Commitments - Future Minimum Rentals Receivable under Non-cancellable Operating Leases (Detail) - Lessor [member] - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of future minimum rentals receivable [line items] | ||
Future minimum rentals receivable | ¥ 1,942 | ¥ 2,136 |
Not later than one year [member] | ||
Disclosure of future minimum rentals receivable [line items] | ||
Future minimum rentals receivable | 578 | 530 |
Later than one year and not later than five years [member] | ||
Disclosure of future minimum rentals receivable [line items] | ||
Future minimum rentals receivable | 1,133 | 1,306 |
Later than five years [member] | ||
Disclosure of future minimum rentals receivable [line items] | ||
Future minimum rentals receivable | ¥ 231 | ¥ 300 |