Ping An Insurance has the best six-month profit in ten years for strong customer growth, Banking & Finance

Wed, August 22, 2018 – 7:33 PM

[SHANGHAI] Ping An Insurance Group Co or China, the country's largest insurer based on market value, reported on Tuesday its largest half-yearly profit in at least a decade on solid customer growth.

The results underscore the strength in Ping An's business over smaller players, amid a sector-wide approach to the risk that led to China's supervisory authority in the field of transplants and others being reprimanded for foreign acquisitions.

For the six months ended June, net profit was 58.80 billion yuan (S $ 11.5 billion), up 34 percent from a year ago, according to a request from the Hong Kong Stock Exchange.

This was the best semi-annual performance since at least 2007, showing Thomson Reuters data.

Gross written premiums increased by 20 percent to 408.19 billion yuan, from 341.39 billion yuan in the same period last year.

An increase in the number of customers and products per customer contributed strongly to the underlying strength of the insurer.

Retail customers grew by 25.2 percent in the first half year and reached 179 million, with each client averaging 2.39 contracts, an increase of 4.8 percent.

Ping an, one of the nine global insurers and the only Asian designated by the global regulators as a systemically important insurer, benefits from its various sources of income, such as asset management and banking.

Net profit for Ping An & # 39; s life and health business rose 43.3 percent to 33.79 billion yuan.

Ping's Good Doctor online healthcare platform raised US $ 1.12 billion at the IPO at the end of April, with its stocks at the top of the offering, in what was at the time the largest float in Hong Kong.

The profits from Ping An's banking arm amounted to 13.4 billion yuan in the first half, an increase of 6.5 percent.

Ping An Bank, like others in the industry, shifts to retail banking in an effort to increase returns, as corporate loans become riskier.

"We believe that Ping An will soon undergo a period of rapid expansion of financial customers, because both internet customers and financial customers have grown to enormous size," said Morningstar in a report.

But Morningstar also sees the growth of agents at Ping An drop to 15 percent in the next five years, from around 25 percent in the past five years, as competition grows for high-quality agents.

The shares of Ping An in Hong Kong closed 1.44% on HK $ 70.35 before the results were announced, in a broader market that rose slightly.


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