Ping An Insurance (Group) Company of China, Ltd. has announced its 2022 interim results reporting a net profit of RMB71,676 million.
According to the announcement, Ping An maintained a steady development despite the complex, challenging international environment and continued impact of COVID-19 in China in the first half of 2022.
It achieved an annualised operating ROE of 20.4% in H1 2022, with operating profit attributable to shareholders of the parent company rising 4.3% year on year to RMB85,340 million.
The net profit attributable to shareholders of the parent company increased 3.9% year on year to RMB60,273 million.
Ping An highlighted the steady progress of its integrated financial services model. Its retail customers exceeded 225 million and contracts per retail customer grew by 1.4% year to date to 2.95 as of June 30, 2022. At the same time, written premiums of the corporate channel achieved through cross-selling rose 7.0% y-o-y in H1 2022.
Reform and transformation of its life and health insurance business is showing positive results, the insurer also noted. In the first half of 2022, the business’ operating profit after tax rose 17.4% y-o-y to RMB58,993 million.
Despite the impact of multiple factors including COVID-19, NBV per agent increased 26.9% y-o-y and the 13-month persistency ratio of insurance policies improved by 4.1 pps y-o-y in this year’s first half.
Ping An also reported over RMB70 billion in health insurance premium income. This was achieved by continuing to implement the company’s healthcare ecosystem strategy by exploiting synergies with financial business, according to the announcement.
Ping An Property & Casualty maintained stable business growth and healthy business quality, the insurer noted. Premium income increased 10.1% y-o-y to RMB146,792 million and the combined ratio was 97.3%.
Ping An Bank also maintained a “stable, healthy business growth”. Revenue and net profit for the first half of 2022 grew 8.7% and 25.6% y-o-y, respectively.
In addition, the business’ non-performing loan ratio remained unchanged year to date at 1.02%, and provision coverage ratio was 290.06% as of June 30, 2022, which, according to Ping An, indicates adequate risk provisions.
The company’s investment portfolio of insurance funds grew 9.0% year to date to over RMB4.27 trillion as of June 30, 2022. According to the announcement, investment income on Ping An’s investment portfolio of insurance funds was under pressure in the first half of 2022 due to volatile capital markets.
The annualised net investment yield was 3.9%, and the annualised total investment yield was 3.1%.
