Ping An Insurance (Group) Company of China, Ltd.announces results for the first nine months of 2008
All core businesses maintain steady development
Shanghai, Hong Kong, 27 October 2008 – Ping An Insurance (Group) Company of China, Ltd. (“Ping An” or “the Group”, HKEX: 2318; SSE: 601318) today announced its unaudited results for the first nine months ended 30 September 2008.
In the third quarter of 2008, the turmoil in international financial markets deepened and a pronounced slowdown in economic growth could be seen across the globe. Domestic capital markets also underwent a deep correction. As a result of these market conditions, Ping An recorded a significant decline in its investment income, and the net profit of the Group was largely impacted by the impairment provision made for its investment in Fortis. Nonetheless, the Group continued to maintain a steady development momentum across all its core businesses.
Under International Financial Reporting Standards, Ping An’s net profit and EPS for the first nine months of 2008 were RMB1,804 million and RMB0.22, representing a drop of 88.3% and 89.6% respectively over the corresponding period in 2007. Under PRC Accounting Standards, the Group recorded a loss of RMB534 million for the period under review. These decreases were largely due to the impairment provision for its investment in Fortis recognized in the income statement for the third quarter of 2008. As at September 30, 2008, the accumulated marked-to-market losses of RMB18.611 billion had already been reflected in the equity of the Group, of which approximately RMB15.7 billion was removed, hence recognized as impairment loss in the income statement of the third quarter.
During the period under review, growth of Ping An’s insurance business remained healthy. In life insurance, the Group continued to implement its “Reaching New Heights” and “Two Tier Market Development” strategies. Gross written premiums, policy fees and premium deposits for the first three quarters of the year hit RMB78,448 million, representing an increase of 31.4% compared to the corresponding period of the previous year. Number of individual life insurance sales agents rose to 336,000. The property and casualty insurance businesses steadily increased their market share, with gross written premiums amounting to RMB20,960 million for the first three quarters, up 27.2% from the same period last year.
Shenzhen Ping An Bank has enjoyed sound development and pushed ahead with the build-out of its nationwide network. The accumulated number of in-force credit cards broke through the 1,200,000 mark. In addition, the Quanzhou Branch officially started its operation and regulatory approval was obtained to open a new branch in Xiamen. At the same time, Ping An has increased its investment in banking infrastructure and developed strategic initiatives to strengthen the headquarters’ capabilities in supporting a nationwide service network.
Ping An further increased the proportion of its investments in fixed income assets in the third quarter. Net investment income increased as compared to the same period last year. However, total investment income decreased significantly as a result of the deep correction in both the international and domestic capital markets. In respect of Ping An Asset Management, the number of clients of the Group’s asset wealth management service for small and medium-sized insurance companies surged and we now rank No.1 in the industry. Ping An Asset Management also acted as the QFII investment consultant for internationally renowned investment management institutions.
Ping An Trust has steadily diversified its wealth management products; newly entrusted asset size increased substantially compared to the corresponding period last year. Ping An Securities ranked No.2 in the industry in terms of the number of underwriting deals, and it obtained CSRC approval for its direct investment business.
The impact of the global financial crisis stemming from the US sub-prime issue is expected to continue and the situation in the capital market gives no ground for optimism. That said, governments across the globe, including the Chinese authorities, have formulated and put into action their respective financial bailout packages. The Group will monitor closely the development of the operating environment, conscientiously carry out corresponding measures, and capitalize on the opportunities arising from the future development of the financial industry to create long-term and stable value for its shareholders and customers.
