Ping An makes clarification on market rumours

Hong Kong, 26 September 2008 – In light of the recent vigorous fluctuations in the domestic and international capital markets, Ping An Insurance (Group) Company of China., Ltd (“the Company”) noted the speculation in the market over the reasons for the drop in the share price of the Company.  With regard to the market speculation, the Company announced that it is in solid position in terms of capital liquidity and adequacy.  Ping An will decide prudently whether to make impairment provisions on investment in Fortis N.V. (Fortis) in the 2008 third quarterly results, based on relevant accounting rules.

As at June 30, 2008, the audited net asset value of the Company prepared under PRC Accounting Standards and International Accounting Standards were RMB83.378 billion and RMB90.42 billion respectively.  These values have reflected the losses from the fluctuation in the market value of the Company’s investment in Fortis which amounted to RMB10.524 billion in fair value.

Based on future international capital market conditions and the movements in the share price of Fortis, the Company will decide prudently whether to make impairment provisions on the investment in Fortis in the 2008 third quarterly results of the Company.  If the impairment provisions are made, the accumulative losses embedded in the Company’s net assets would be reflected in the profit and loss statement.

After careful verification, the Company and its subsidiaries are not exposed to the risks presented by Lehman Brothers Holdings, AIG, Merrill Lynch & Co., Bear Stearns Cos, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation and Washington Mutual Inc.

Ping An emphasizes that it is in a strong and solid position in terms of capital adequacy and liquidity, underpinned by stable fundamentals and prudent principles, regardless of whether or not such impairment provisions on the investment in Fortis will be recognized in the 2008 third quarterly results.  All core businesses including insurance, banking, trust and securities business, have achieved healthy and reasonable growth. Rights of our clients will be properly looked after and protected.