May 15 – China’s largest life insurer, China Life Insurance Company, says that total compensation payments for those affected by the quake could reach RMB134 million (US$19.14 million).

So far, the company has received 150 claims -26 death claims and 97 casualty claims.

Unlike competitor, Ping An, which serves more urban clients, China Life reach extends even in the mountainous areas of western China. According to company estimates, around 110,000 people are insured in the quake-hit area, with 58,000 of those being students.

Yang Chao, president of China Life, told Xinhua, “Our firm is fully prepared to cover all the claimants’ losses.” He added that the company would shoulder the living costs of the children orphaned by the disaster until they turned 18.

Wang Yijie, general manager of China Life’s branding and publicity department, told Xinhua on that they were discussing the details of the aid with civil affairs agencies and would still need to gather data on the orphans.

In 2007, life insurance premiums in Sichuan province amounted to RMB21.291 billion (US$3.05 billion) in addition to accident insurance premiums of RMB1.049 billion (US$150.07 million).

Wang Xiaogang, an insurance analyst with Orient Securities, was quoted by Xinhua as saying, “China Life’s pre-tax profit is forecast to reach 37.7 billion yuan this year and the earthquake’s impact would not lower profitability by more than 2 percent.”

The China Life Insurance Company is a Beijing-based company that provides life insurance and annuity products. It is the world’s second largest insurer with a market value of US$129 billion after American International Group’s US$186 billion.