(Yicai Global) Jan. 20 -- China Life Insurance's shares rose after the country's largest life insurer said it expects net profit for last year to come in about five times higher than in 2018.

Its Shanghai-listed stock [SHA:601628] rose 3.4 percent today to close at CNY34.18 (USD5.13), while its Hong Kong-traded shares gained 0.9 percent to HKD22.20 (USD2.86).

The Beijing-based insurer expects net profit to have risen by about CNY45.6 billion (USD6.6 billion) to CNY48 billion in the 12 months ended December, an annual increase of around 400 percent to 420 percent, because of increased investment income and lower taxes, it said in a report released yesterday.

The firm promoted market-oriented reform of its investment management system, optimized the allocation of its basic and strategic assets, and greatly bettered its investment income, it said in the report, but without revealing the amount of the increase or the asset structure of the investment. China Life's corporate tax fell by around CNY5.2 billion (USD744.5 million), which also trimmed its tax expenses.

Last May, China's finance ministry handed insurers a higher tax deduction on commission expenses and fees. The deduction ratio was hiked to 18 percent from 15 percent for property insurance and 10 percent for life insurance. China Life ranked first among listed insurers with a net profit growth of about 130 percent in the first half, swept upward by the change.

The company's total income from insurance premiums last year was CNY568.4 billion (USD84 billion), a 7 percent gain on 2018's CNY531.2 billion, it stated earlier.

Number 94 on the Fortune 2015 Global 500 Company list, China Life is 70 percent state-owned and provides life insurance and annuities.

Editor: Ben Armour