China Life extends policy management deal with parent CLIC

China Life Insurance (2628.HK) will renew its policy management agreement with its controlling shareholder, China Life Insurance (Group) Company (CLIC), for three years starting January 1, 2025. Under the agreement, China Life will continue providing administrative services for CLIC's non-transferred policies. The annual cap for service fees payable by CLIC is set at RMB 503 million. This represents a slight increase compared to the previous annual cap, reflecting factors like the calculation of non-transferred policies and potential policy reinstatements. CLIC currently holds approximately 68.37% of China Life's issued share capital. The deal constitutes a continuing connected transaction under Hong Kong Listing Rules but is exempt from independent shareholder approval. The agreement allows China Life to leverage CLIC's extensive customer base, boosting revenue and avoiding direct competition.