Ping An Insurance surprises market with profit report on growth in life, general policies
Ping An Insurance (Group), China’s largest insurer by market value, reported better than expected interim results, as the firm wrote more new policies, overcoming weaker returns from asset management and technology-related investments.
The company said net profit rose 6.8 per cent to 74.62 billion yuan (US$10.5 billion) in the six months to June 30, its best half-yearly performance in four years, according to a stock exchange filing on Thursday. Analysts had expected a 12 per cent drop to 61.7 billion yuan.
The value of new business in Ping An’s life and health insurance divisions, a key measure of future growth, expanded by 11 per cent to 22.32 billion yuan from a year earlier, it added.
The sunset skyline in Shenzhen, showing landmark buildings like Ping An Insurance and Emperor Building in Luohu district. Photo: Getty Images
“China’s economy was generally stable with steady progress and continued to recover in the first half of 2024 despite short-term challenges,” chairman Peter Ma Mingzhe said in the filing. “We serve the real economy by developing core financial businesses and pursue high-quality development by promoting digital transformation, thereby maintaining robust, resilient results.”
Ping An’s property and casualty insurance business generated a 7.2 per cent increase in net profit to 9.95 billion yuan, while its banking arm earned 1.9 per cent more at 25.88 billion yuan. They mitigated a 14.7 per cent drop in net profit from asset management, and a 61.2 per cent slump in earnings from technology-related ventures.
The Shenzhen-based insurer proposed to maintain an interim dividend of 0.93 yuan per share, according to the filing.
Ping An’s shares closed 0.9 per cent higher at HK$34.30 in Hong Kong on Thursday before the interim report card. They have declined 0.6 per cent this year, compared with a 5 per cent gain in the benchmark Hang Seng Index.
