China Life profit down 22% in Q1

China Life Insurance (LFC.NYSE, 601628.SH) said profits declined 22% in the first quarter of 2011 due to a surge in claims and poor returns on invested capital, Bloomberg reported. The company said profits earned from January through March reached RMB7.97 billion (US$1.2 billion), down from RMB10.2 billion in the same period last year. Policy income increased 11% but investment income dropped 6.4%. The company managed to earn only 1.1% on its US$218.8 billion in investment assets, while claim expenses doubled in the first quarter to US$4.3 billion. The company offered no explanation for the spike in claims.