China Life profit down 32% amid plunging stock market

China Life Insurance Ltd., the country's biggest life insurer, said Tuesday its first-half profits fell 32 percent from the year-earlier period as a plunge in Chinese stocks dragged down its investment income.

Profit for the six months ending June 30 was 15.8 billion yuan (US$2.3 billion), or 0.56 yuan (8 U.S. cents) per share, the company said. It said revenues slipped 2 percent compared with the first half of 2007 to 99 billion yuan (US$14.5 billion).

The Beijing-based insurer said it would not pay a dividend for the first half and warned that its insurance business and investments for the rest of 2008 could be affected by growing competition and continued financial market uncertainty.