Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

NEW CHINA LIFE INSURANCE COMPANY LTD.

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 01336)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made by New China Life Insurance Company Ltd. (the "Company") pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The announcement is hereby set out as follows for reference only.

By Order of the Board

New China Life Insurance Company Ltd.

LIU Haoling

Chairman

Beijing, China, 25 August 2020

As at the date of this announcement, the chairman and non-executive director of the Company is LIU Haoling, the executive director is LI Quan; the non-executive directors are YANG Yi, GUO Ruixiang, HU Aimin, LI Qiqiang, PENG Yulong and Edouard SCHMID; and the independent non-executive directors are LI Xianglu, ZHENG Wei, CHENG Lie, GENG Jianxin and MA Yiu Tim.

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A Share Stock Code: 601336 A Share Stock Abbreviation: New China Life No.: Lin 2020-037

H Share Stock Code: 01336 H Share Stock Abbreviation: New China Life

NEW CHINA LIFE INSURANCE COMPANY LTD.

ANNOUNCEMENT ON CHANGES IN ACCOUNTING ESTIMATES

The board of directors and all directors of New China Life Insurance Company Ltd. warrant that the contents of this announcement do not contain any misrepresentation, misleading statement or material omission, and accept several and joint responsibilities for the truthfulness, accuracy and completeness of the contents of this announcement.

Important Notice:

The Interim Report 2020 of New China Life Insurance Company Ltd. has applied the provisions under the Interpretation No. 2 on Accounting Standards for Business Enterprises issued by the Ministry of Finance of the PRC that involve the changes in accounting estimates of liabilities in relation to insurance policy, such as various liabilities of insurance contract (the "Changes in Accounting Estimates"), which in aggregate reduced profit before tax of the Company by RMB2,481 million for the first half year of 2020.

  1. Introduction
    The Changes in Accounting Estimates were considered and approved at the thirteenth meeting of the seventh session of the board of directors of New China Life Insurance Company Ltd. (the "Company") on 25 August 2020. The Changes in Accounting Estimates resulted in an increase in liabilities of life insurance contracts by RMB1,369 million, an increase in liabilities of long- term health insurance contracts by RMB1,112 million as at 30 June 2020, which in aggregate reduced profit before tax by RMB2,481 million for the first half year of 2020.
  1. Details of the Changes in Accounting Estimates and the Impact on the Company
    The Company determined actuarial assumptions which include, among other things, assumptions on the discount rates, mortality rates, morbidity rates, expenses, policyholder dividend, lapse rates, etc. based on current available information as at the date of the balance sheet. These assumptions were used to calculate the liabilities of insurance contracts as at the date of the balance sheet.
    The Company reviewed the above assumptions based on the available information on 30 June 2020. Movements in liabilities of insurance contracts arising from the changes in the above assumptions were recognised in the income statement. The Changes in Accounting Estimates resulted in an increase in liabilities of life insurance contracts by RMB1,369 million, an increase in liabilities of long-term health insurance contracts by RMB1,112 million as at 30 June 2020, which in aggregate reduced profit before tax by RMB2,481 million for the first half year of 2020.

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The Company adopted prospective application method to deal with the Changes in Accounting Estimates.

  1. Conclusive Opinions of Independent Directors, the Board of Supervisors and the Accounting Firm
    The independent directors and the board of supervisors of the Company considered the Changes in Accounting Estimates, and approved the accounting treatment on the Changes in Accounting Estimates made by the Company.

Ernst & Young Hua Ming LLP issued the Special Report on the Changes in Accounting Estimates of New China Life Insurance Company Ltd. for the six months ended 30 June 2020.

IV. Appendices of the Announcement

  1. Opinions from independent directors of the thirteenth meeting of the seventh session of the board of directors of the Company
  2. Special statement of the board of directors of the Company on the changes in accounting estimates
  3. Special statement of the board of supervisors of the Company on the changes in accounting estimates
  4. Special Report on the Changes in Accounting Estimates of New China Life Insurance Company Ltd. for the six months ended 30 June 2020 issued by Ernst & Young Hua Ming
    LLP
  5. The reviewed financial statement for the first half year of 2020

The Board of Directors of

New China Life Insurance Company Ltd.

25 August 2020

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New China Life Insurance Co. Ltd. published this content on 25 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2020 10:31:40 UTC