China Life Insurance Co., Ltd. (NYSE: LFC, SEHK: 2628, and SSE: 601628) is suffering from fierce competition with its archrival Ping An Insurance (Group) Company of China, Ltd. (SHSE: 601318 and SEHK: 2318) in the domestic life insurance sector.

As the nation's biggest life insurer, it ranked number one in Shenzhen for consecutive eight years in terms of premium revenue. However, the situation was changed in 2007, in which it gained premium revenue of CNY 2.2 billion, compared to CNY 2.8 billion by Ping An. That it obtained in 2008 and the first nine months of this year stood at CNY 3.8 billion and CNY 3.1 billion, compared to Ping An's CNY 4.2 billion and CNY 4.3 billion, respectively.

Sources said that it was the dropped market share that caused China Life to change the general manager of the Shenzhen branch three times two years. It is coincidence, a top executive of the insurer said when asked whether the frequent personnel changes had a close relation with the dropped market share locally.

In addition in Shenzhen, its market share is nibbling away by Ping An in Shanghai, Beijing, and Tianjin. Statistics from the China Insurance Regulatory Commission shows that the premium revenue China Life gained in Shanghai in the first three quarters of this year hit CNY 7.1 billion, compared to Ping An's CNY 9.2 billion. That it gained in the market in 2008 and 2007 stood at CNY 7.6 billion and CNY 6.7 billion, compared to Ping An's CNY 9.2 billion and CNY 8 billion, each.

The premium revenue China Life captured in Beijing in the nine months reached CNY 5.8 billion, compared to Ping An's 8.9 billion. That it achieved there in 2008 and 2007 was CNY 6.9 billion and CNY 5.5 billion, compared to Ping An's 8.8 billion and CNY 7 billion.

The premium revenue it got in Tianjin, an eastern Chinese port city, reached CNY 2.3 billion in the nine months, compared to Ping An's CNY 2.7 billion. In February 2009, it for the first time lost the No.1 rank in the market to Ping An. The premium revenue it gained there in 2008 and 2007 was CNY 4.3 billion and CNY 2.8 billion, compared to Ping An's 2.8 billion and CNY 2.4 billion.

The premium revenue China Life gained in the first ten months of this year reached CNY 254.7 billion, down 3.82 percent from a year ago. That captured in October stood at CNY 17.4 billion, down 34.29 percent from CNY 26.5 billion in September.