Ping An reports 49% growth in Q1 profits

Chinese insurer Ping An has reported a 48.9% increase in net profit over the first quarter of 2023, ending the period at RMB 38,352 million (USD 5,537 million), including operating profit of RMB 41,385 million.

The company attributed the improved performance to “in-depth” reforms, synergies in its integrated finance strategy, and a healthcare ecosystem and elderly-care service that empowered core financial businesses.

Ping An’s P&C unit similarly maintained good business quality with steady growth in insurance revenue, which increased 7.1% year on year to RMB 76,312 million in the first three months of 2023.

Ping An P&C’s net profit attributable to shareholders of the parent company also rose 45.9% to RMB 4,523 million, and its overall underwriting combined ratio came to 98.7% on enhanced business management and risk screening.

Life & Health new business value grew 8.8% year on year to RMB 13,702, with positive growth across major channels including agent, bancassurance and community grid, the company said.

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Accordingly, Life & Health net profit rose 104.5% year on year to RMB 24,971 million, with life insurance premium income reaching RMB 171,767 million, up 5.6% year on year, leading the domestic insurance industry.

For the company’s banking unit, revenue decreased 2.4% year on year to RMB 45,098 million, mainly due to ongoing support for the real economy, a narrowing net interest margin, and volatile bond and foreign exchange markets. However, net profit grew 13.6% RMB 14,602 million.

The company’s insurance funds investment portfolio achieved an annualized net investment yield of 3.1% and an annualized total investment yield of 3.3% in Q1, and the portfolio grew 3.1% year to date to over RM B4.49 trillion as of March 31, 2023.

Also of note, Ping An’s green investment and financing, and green banking business totalled approximately RMB 308,449 million and RMB 174,112 million respectively at the end of Q1, with green insurance premium income amounting to RMB 6,565 million.

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