China Life Insurance renews key investment management agreements

China Life Insurance Company Limited will hold its Second Extraordinary General Meeting 2025 on December 30, 2025, to approve the renewal of continuing connected transactions. These include a new Entrusted Investment and Management Agreement for Alternative Investments with Insurance Funds between the company and China Life Investment Management Company Limited (CLI), and a framework agreement for daily connected transactions between China Life AMP Asset Management Co., Ltd. (AMP) and CLI. The existing agreement between the company and CLI expires on December 31, 2025.

Under the new agreement, CLI will continue to invest and manage assets for the company, on a discretionary basis, until December 31, 2028. The annual caps for assets newly entrusted to CLI are RMB120 bn for 2026, RMB140 bn for 2027, and RMB150 bn for 2028. Corresponding annual fee caps are RMB1.1 bn, RMB1.2 bn, and RMB1.3 bn for the same periods. The independent board committee and Somerley Capital Limited recommend independent shareholders vote in favor, noting the transactions are on normal commercial terms and in the company's best interests. CLIC, the controlling shareholder, will abstain from voting.

The framework agreement between AMP and CLI, also for a term from January 1, 2026, to December 31, 2028, covers subscription and redemption of fund products, and private asset management. Annual caps for these transactions include a RMB20 million subscription price, RMB20 million redemption price, and RMB0.2 million management fee for private asset management for each of the three years. These transactions require shareholder approval due to SSE Listing Rules, despite being exempt from independent shareholder approval under Hong Kong Listing Rules.