China Life Insurance (LFC) Reiterates 3 STARS (hold) on ADRs Analyst: D. Ch'ng While we are positive on China Life's prospects and are projecting a robust 5-year earnings growth rate of 23%, we think much of the strong fundamentals are reflected in the current share price. Our valuation continues to assume an acceleration in first-year premiums of 16% for 2006 and 2007, but we are raising our long-term premium growth estimates to better reflect China's insurance market potential. On improving growth prospects, we are increasing our 12-month target price to HK$87.00 from HK$77.00. Our estimate assumes a 2006 price-to-book value of 4.7 times and a return on equity of 16%