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Ping An’s first-half profit falls 1% as strong new policy sales offset by falling asset management, tech earnings
- China’s largest insurer reported an interim profit of 69.84 billion yuan (US$9.58 billion)
- Value of new business surged by 45 per cent on the back of demand for insurer’s saving products, beating Credit Suisse forecast
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Ping An Insurance (Group), China’s largest insurer by market capitalisation, reported a 1.2 per cent decline in first-half profit, as strong sales of new insurance policies were offset by a sharp fall in its asset management and technology businesses.
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The insurer reported an interim net profit of 69.84 billion yuan (US$9.58 billion), down by 1.2 per cent on the year. Ping An adopted new accounting standards for its insurance business this year, and adjusted the figure from a year ago for comparison purposes.
The value of new business in Ping An’s life and health insurance divisions, a key measure of sales and future growth, rose 45 per cent in the first six months to 25.96 billion yuan, beating the 29 per cent growth estimated by Credit Suisse.
The increase was driven by strong sales of savings products by Ping An’s agents who were free to travel to meet clients, having been grounded by Covid-19 restrictions a year earlier.
The company’s property and casualty insurance business generated a 7.4 per cent increase in profit to 9.29 billion yuan while its banking arm enjoyed a 14.9 per cent rise to 25.39 billion yuan.
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However, the strong insurance sales were outweighed by a 62 per cent decline in net profit in its asset management business to 1.98 billion yuan, as well as a 57.6 per cent drop in technology businesses’ operating profit to 2.25 billion yuan.
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