(Bloomberg) -- China Life Insurance Co., the nation’s largest life insurer by market share, said profit fell 9.3% in the first quarter as stock investment declines and lower bond yields dented returns. 

Net income dropped to 20.6 billion yuan ($2.8 billion), from 22.8 billion yuan a year earlier, the Beijing-based company said in a filing to the Shanghai stock exchange Friday.

China’s stock declines at the start of the year and falling bond yields weighed on insurers’ investment returns, even as strong client demand for savings products drove policy sales. China Life joins rival Ping An Insurance (Group) Co. in reporting profits smaller than a year earlier, when the nation’s economic recovery from the pandemic and a market rally bolstered earnings. 

Investment income slumped 90% to 5.5 billion yuan, according to the statement. The CSI 300 Index fell as much as 7.3% this year before government intervention fueled a rebound. Still, the benchmark stock gauge was down 13% in the first quarter from a year earlier. 

Company executives told reporters last month the insurer will focus on high-dividend stocks this year as the market rebounds. It expects interest rates to stay low, depressing returns of fixed-income investments. 

New business value, which gauges the profitability of new life policies sold, jumped 26.3%, the filing showed, quickening from 7.7% growth a year earlier. First-year regular premiums per agent rose 18% as the productivity of the sales force improved, it said.

China Life closed up 1.8% at HK$10.30 in Hong Kong trading. Before Friday’s gain, the shares were little changed this year.

(Updates with more details, background from fourth paragraph)

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