(Yicai) Oct. 17 -- Chinese insurance companies New China Life Insurance, Chinese People’s Insurance Company, China Pacific Insurance and China Life Insurance are expecting to log significant jumps in net profit in the first three quarters from the same time last year thanks to the recent rebound in the country’s stock markets.

China Life forecasts net profit to more than double, surging by between 165 percent and 185 percent, in the nine months ended Sept. 30 from a year ago to between CNY101.1 billion (USD14.2 billion) to CNY108.8 billion, according to its performance forecast released yesterday.

While Chinese People’s Insurance Company said it anticipates a between 65 percent and 85 percent jump in net profit over the period to between CNY33.8 billion (USD4.8 billion) and CNY37.9 billion, it said on Oct. 15.

China Pacific Insurance forecasts net profit to soar between 60 percent and 70 percent year on year to between CNY37 billion (USD5.2 billion) and CNY39.4 billion.

New China Life Insurance is also expecting its net profit to double, soaring by between 95 percent and 115 percent, to between CNY18.6 billion (USD2.6 billion) and CNY20.5 billion, the firm said on Oct. 8.

The mainland stock markets have risen sharply in the last few weeks, thanks to the roll out of a big stimulus package by financial regulators on Sept. 24.

The Shanghai Composite Index jumped 17.3 percent in September, while the Shenzhen Component Index soared 26.1 percent. The GEM Index gained the most, rising 37.6 percent and setting a new monthly record.

China Life Insurance and New China Life Insurance’s large jump in net profit is mainly because they hold a large number of stocks, industry insiders said.

Income from stock investments fluctuates greatly each year, China International Capital said in a research report released on Oct. 9. Therefore long-term earnings cannot be estimated from the performance of stocks in the first three quarters.

Industry analysts are optimistic about insurance companies' new business value, which is an estimate of the value of future profits from new business attained that year, in their third-quarter reports.

The new business value of insurance companies is expected to have accelerated in the third quarter and to maintain high prosperity throughout 2024, Huaxi Securities said.

The average NBV growth rate of listed insurance companies in the first nine months is likely to be 33.8 percent, Founder Securities said.

Editor: Kim Taylor