Since its inception in 1988, contributed by innovation pursuing and hard working, Ping An has developed from its origin as a property and casualty insurance company to become one of the foremost providers of diversified financial services and products in China. Our seamless integrated financial structure enables us to serve the insurance, banking and investment needs of more than 60 million retail customers. In 2010, we achieved a net profit of RMB17,938 million.

Strategic Positioning

Establish a core business structure with the insurance, banking and investment businesses of the Group. Build an integrated financial services platform with a model of "one customer, one account, multiple products and one-stop services"; Grow our customer base and assets to be the market leader; Achieve a sustainable growth of profits and provide shareholders with stable returns on a long-term basis.

Insurance Business

Ping An Life realized total written premiums of over RMB150 billion, an increase of 20.2% compared to the previous year. First-year written premiums from individual life insurance grew by 37.6% over the previous year. Premium income from Ping An Property & Casualty also posted a record high of over RMB60 billion, an increase of 61.4%, as our market share grew 2.5 percentage points to 15.4%, the second largest market position has been further consolidated. The combined ratio improved to 93.2%, our best to date. Our annuity business also kept a rapid and healthy development, three major performance indicators - annuity payments received, assets entrusted and assets under management - all maintained leading position in the industry. Our health insurance business has taken Discovery, the largest health insurance company in South Africa, as a strategic investor. This partnership will elevate Ping An's position within the highly competitive domestic health care insurance and health management market.

Banking Business

Ping An Bank reported a rapid and above-the-market growth, reporting a net profit of RMB1,737 million, an increase of 60.8% compared to the previous year. Profit contribution from major businesses improved significantly. Balance of retail deposits increased by 61.9%, outpacing the industry average. Credit card business, with over 6 million cards issued, saw profit for the first time, while loans to SMEs grew by 78.6%. In the first half of 2010, Ping An accomplished share-swap transaction with NEWBRIDGE and subscription of new shares of Shenzhen Development Bank. At present, Ping An holds 29.99% of SDB's total shares. As an associate company of Ping An, Shenzhen Development Bank has already contributed a profit of RMB1,145 million in 2010.

Investment Business

Ping An Securities recorded a net profit of RMB1,594 million, representing an increase of 48.7% compared to last year. The investment banking business continued to top the SMEs and the GEM underwriting market, sponsoring 39 IPOs and 11 refinancing projects as the lead underwriter. We were ranked top in the league table by number of deals and underwriting fees for IPO transactions. Net profit of Ping An Trust increased by 71.5% to RMB1,039 million. Ping An Asset Management achieved a total investment yield of 4.9%. On December 28, 2010, Ping An-UOB Fund was established with the approval of the regulatory authorities, which is expected to add another dimension to the services offered by the Group and hence putting us one step closer to be an integrated financial services provider.

Note: financial figures shown in this document are prepared according to the Company's accounting policies after adoption of No.2