Ping An profit rises as stock rally lifts investment returns

[BEIJING] Ping An Insurance (Group) said profit rose 11.5 per cent in the first nine months of this year, as a stock market rally lifted investment returns and policy sales expanded.

Net income climbed to 132.9 billion yuan (S$24.2 billion), from 119.2 billion yuan a year earlier, the Shenzhen-based company said in a filing to the Hong Kong stock exchange on Tuesday (Oct 28).

Operating profit, which the insurer says better reflects performance by stripping out short-term investment volatility and one-time items, rose 7.2 per cent. 

China’s benchmark CSI 300 Index rallied 18 per cent through Sept 30, boosting insurers’ investment returns. Solid demand for savings products and higher margins also promise to further bolster new business value of Ping An’s backbone life insurance operation, after a few years of internal reforms improved productivity of its agents. 

Investment income for the nine months rose 26 per cent to 158 billion yuan, according to the filing. Net impairment losses on financial assets fell 12 per cent. Its insurance funds portfolio recorded an annualised 5.4 per cent comprehensive investment yield during the period, up 1 percentage point from a year earlier, the company said.

New business value, which measures the profitability of new life policies sold, grew 46.2 per cent. That quickened from a 40 per cent expansion in the first half. BLOOMBERG