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.

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.

LI Quan

Executive Director

Beijing, China, 24 March 2021

As at the date of this announcement, the executive director of the Company 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.

A Share Stock Code:601336 H Share Stock Code:01336

A Share Stock Abbreviation: New China Life No.: Lin 2021-014 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 Annual 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 RMB11,644 million for the year 2020.

I.

Introduction

The Changes in Accounting Estimates were considered and approved at the eighteenth meeting of the seventh session of the board of directors of New China Life Insurance Company Ltd. (the "Company") on 24 March 2021. As at 31 December 2020, the Changes in Accounting Estimates resulted in an increase in liabilities of life insurance contracts by RMB2,979 million, an increase in liabilities of long-term health insurance contracts by RMB8,665 million, which in aggregate reduced profit before tax by RMB11,644 million for the year 2020.

II. 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, lapse rates, policyholder dividend, 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 as at 31 December 2020. The changes 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 RMB2,979 million, an increase in liabilities of long-term health insurance contractsby RMB8,665 million as at 31 December 2020, which in aggregate reduced profit before taxby RMB11,644 million for the year 2020.

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

III. Conclusive Opinions of Independent Directors, the Board of Supervisors and the Accounting Firm

The independent directors and the board of supervisors of the Company reviewed the Changes in Accounting Estimates, considered the Changes in Accounting Estimates based on the Interpretation No. 2 on Accounting Standards for Business Enterprises and the information available as at the date of the balance sheet reasonable, and approved the accounting treatment on the Changes in Accounting Estimates made by the Company.

Ernst & Young Hua Ming LLP performed a limited assurance engagement for the reasons, accounting treatment and impact on the financial conditions and operating results of the Changes in Accounting Estimates and issued the Special Report on the Changes in Accounting Estimates of New China Life Insurance Company Ltd. for the year 2020.

IV. Appendices of the Announcement

  • 1. Opinion from independent directors of the eighteenth 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 year 2020 issued by Ernst & Young Hua Ming LLP

  • 5. The audited financial statement for the year 2020

The Board of Directors of

New China Life Insurance Company Ltd.

24 March 2021

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New China Life Insurance Co. Ltd. published this content on 24 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 March 2021 11:38:11 UTC.