Ping An Insurance (Group) Company of China, Ltd. ("Ping An" or "the Company") was founded in 1988 in Shenzhen. Since its establishment, Ping An has developed into one of the nation's leading insurance groups with the ability to provide diversified financial services and products through its eight subsidiaries nation-wide. Through a multi-channel distribution network with a single brand, the "three-pillar" strategy on integrated financial services has been further strengthened and ef fect ively executed.
Ping An has substantial market share in the most economically developed areas of China such as Guangdong, Shanghai, Beijing and Jiangsu and owns one of the largest distribution network in the country. As of June 30, 2008 Ping An has developed an extensive customer base with about 35.45 million customers for life insurance and 10.72 million customers for P&C insurance. Ping An commenced overseas operations in 1992, with an initial focus on the Hong Kong P&C insurance market. It has also enlarged it's business scope to operate trust, banking and securities businesses. The merger of SZCB and the former Ping An Bank was completed in the second half of 2007, and SZCB was renamed as Shenzhen Ping An Bank which becomes the sole banking brand of the Group, providing comprehensive financial services and products for corporate and individual clients. On April 2, 2008, Ping An signed the formal agreement with Belgo-Dutch Fortis Group on the establishment of a global asset management partnership. According to the agreement, Ping An will acquire a 50% equity stake in Fortis Investments, the global asset management arm of Fortis Group, for a consideration of EUR 2.15 billion. In the first half year of 2008, Ping An achieved a net profit of RMB9,719 million and total revenue of RMB 63,633 million, decreasing by 2.5% and 8.9% respectively year on year. The decrease was primarily due to the reduce in both investment returns and profit from our investment business, as a result of fluctuations in the capital markets.
Insurance Business
In the first half year of 2008, Ping An Life ranked second in the PRC in terms of gross written premiums, policy fees and premium deposits. Gross written premiums and policy fees of life insurance business amounted to RMB 54,557 million in the first half year of 2008, and net profit was RMB8,325 million. The 13-month and 25-month persistency ratios for individual life insurance customers were maintained at over 92.5% and 84.1% respectively In the first half year of 2008. P&C insurance ranked number three in the PRC in terms of gross written premiums which achieved RMB14,671 million, accounting for 10.7% of the national aggregate, with a net profit of RMB339 million, combined ratio was 106.1%. However, if excluding net loss from heavy snow storm, earthquakes and rain storm, combined ratio was only 98.2%.
Investment Business
The Group became the first mainland China insurance company to obtain regulatory approval to invest up to 15% of its total assets in overseas market. In 1H 2008, the Group realized substantial increase in income from the trust businesses. Total investment income from trust business reached RMB551 million by June 30, 2008. Net profit from trust business increased significantly to RMB639 million from RMB275 million in the same period last year. Ping An Securities had a decrease in net profit to RMB401 million from RMB676 million of 1 H 2007. The decrease was mainly due to the substantial shrinkage of the transaction volume of secondary markets affected by domestic capital markets' reshuffle.
Banking Business
The integrated Shenzhen Ping An Bank had a network across Shenzhen, Shanghai and Fuzhou. In the first half year of 2008, it had established "Anchor Wealth Management" centers, introduced "Ying Dong Li" business for small and medium-sized enterprises and issued more than 700,000 credit cards. Net profit from the banking business decreased to RMB795 million at June 30, 2008.
Note: financial figures shown in this document are calculated according to IFRSs
updated 16th October, 2008
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