Chinese insurer Ping An’s P&C unit reported a growth of 6.8% year on year in insurance revenue to RMB 235,538 million in first nine months of 2023, with operating profit attributable to shareholders of the parent company reaching RMB9,965 million.
The company said overall underwriting combined ratio (COR) rose to 99.3% in the first nine months of 2023, including a 97.4% auto insurance underwriting COR.
Auto and non-auto insurance claim cost increased due to disastrous typhoons and rainstorms, the insurer noted.
Life & Health new business value grew 40.9% year on year to RMB 33,574, due to comprehensive advancement in channels, improved business quality, and diverse products and services launched, the company said.
Accordingly, Life & Health insurance business’ operating profit amounted to RMB 84,911 million.
For the company’s banking unit, net profit 8.1% year on year to RMB 39,635 million in the first nine months of 2023.
Non-performing loan ratio declined by 0.01 pps from the beginning of the year to 1.04% and provision coverage ratio was 282.62% as of September 30, 2023, indicating adequate risk provisions, for the banking unit.
The company’s insurance funds investment portfolio grew 6.5% from the beginning of the year to nearly RMB 4.62 trillion as of June 30, 2023.
The Company’s insurance funds investment portfolio achieved an annualised comprehensive investment yield of 3.7% and an annualised net investment yield of 4.0% in the first nine months of 2023. The Company’s insurance funds investment portfolio grew 7.1% from the beginning of the year to nearly RMB 4.64 trillion as of September 30, 2023.
Also of note, Ping An’s green insurance premium income amounted to RMB 26,276 million in the first nine months of 2023.
The insurance giant posted a net profit attributable to shareholders of the parent company reaching RMB 87,575 million.
“In a complex and fast-changing market environment, the financial services industry was generally impacted to some extent in the first nine months of 2023. But the positive long-term fundamentals of the industry will remain unchanged,” the company noted.
“Ping An will maintain its strategic focus on core financial businesses and continue advancing its technology-driven “integrated finance + healthcare” strategy. The Company will continuously improve operations and management, advance comprehensive digital transformation, and increase cost-effectiveness. Ping An will keep the continuity and stability of its profit distribution policy, and maintain value investing and long-term returns for shareholders,” the company added.
