On 22 April, Ping An Insurance (Group) Company of China Limited (hereinafter referred to as “Ping An of China”, “Ping An”, “the Group” or “the Company”, stock code: Stock Exchange of Hong Kong 2318, Shanghai Stock Exchange 601318) today announced its results for the three months ended 31 March 2021.
In the first quarter of 2021, with the significant achievements in the prevention and control of the domestic epidemic, the company’s traditional offline exhibition activities gradually resumed, but the foundation of domestic economic recovery is not yet solid, non-rigid consumer demand is still in the stage of recovery growth, and the impact on the company’s long-term support business has not been completely eliminated. By strengthening risk management and control, deepening reform and comprehensively promoting digital transformation, the company actively plans for the future and lays a solid foundation for long-term sustainable and healthy development. In the first quarter of 2021, the company’s net profit attributable to shareholders of the parent company was RMB 27.223 billion, up 4.5% year on year; Operating profit attributable to shareholders of the parent company increased by 8.9% year-on-year to 39.12 billion yuan; Basic operating earnings per share were 2.21 yuan, an increase of 8.9% over the same period last year; The annual operating ROE reached 20.0%. The scale of Ping An’s individual customers continues to grow. By the end of March, the number of Ping An’s individual customers has exceeded 220 million, an increase of 1.0% compared with the beginning of the year. Among them, 84.57 million individual customers held contracts with multiple subsidiaries, accounting for 38.3%. In the first quarter of 2021, the comprehensive financial financing scale of group business increased by 84.9% year-on-year.
The implementation of the strategy of Ping An medical and health ecosystem was accelerated. Ping An Smart Medical effectively serves regulatory departments and empowered medical institutions by providing public health management, supervision of medical institutions, ASKBOB doctor station, clinical decision-making assistance, intelligent imaging, chronic disease management and other programs. By the end of March 2021, China had covered 161 cities, empowered more than 37,000 medical institutions and benefited about 750,000 doctors. At the same time, Ping An carried out close cooperation with local medical insurance bureaus and won the bidding for 7 provincial medical insurance platform construction projects in the first quarter of 2021.
On the same day, the company held the second meeting of the 12th Board of Directors to review and pass the “Proposal on Examining the Participation in the 2021 Long Term Service Plan” and “Proposal on Examining the Participation in the 2021 Core Personnel Stock Ownership Plan”. After fully soliciting the personal will of the core talents of the company, A total of 90,960 employees have volunteered to participate in the company’s long-term service plan in 2021, with a total participation fund of RMB 418,4099,500, which is derived from the salary payable to the employees. A total of 1,754 employees volunteered to participate in the Company’s Core Personnel Stock Ownership Plan in 2021, with a total amount of participation funds totaling 670,303,200 yuan, which came from the legal income and performance bonus of the employees.
“Warm finance” promotes the healthy development of business: the value of new business of life insurance and health insurance increased by 15.4% year on year, and the operating profit of property insurance increased by 15.2% year on year. The bank’s operation is sound and improving, and the asset quality is continuously optimized
In order to meet the needs of customers, the company has increased the promotion of annuity products, and constantly improved the security product system. Through “product + service”, the company has created “warm products” to promote the healthy development of its business. In the first quarter of 2021, life and health insurance business achieved new business value of 18.980 billion yuan, up 15.4% year on year; Operating profit rose 4.2% year on year to 25.580 billion yuan. At the same time, the reform project of Ping An Life Insurance has entered the stage of comprehensive promotion and implementation. In terms of “channel 1+4”, Ping An Life Insurance continues to deepen the reform of digital channels, focusing on the four major projects of digital business department, activity management, digital employee increase, and wisdom training, deepening the channels of agent, bank insurance, power grid sales, and dynamically adjusting the basic management methods of agents. In the aspect of “Product 1+4”, Ping An Life Insurance continues to implement the strategy of “Product + Service”, providing customers with one-stop medical services by taking customers as the center. Through the layout of health management, chronic disease management, serious disease management, pension management and other four services, to create a “temperature of insurance”.
The quality of property insurance business remains excellent. In the first quarter of 2021, insurance rates decreased due to the impact of comprehensive auto insurance reform; At the same time, Ping An property insurance continues to optimize the customer group structure, strengthen risk screening. In the first quarter of 2021, Ping An Property Insurance realized the original insurance premium income of 66.175 billion yuan, down 8.8% year on year. The overall comprehensive cost rate was 95.2%, down 1.3 percentage points year on year. Operating profit was 5.119 billion yuan, up 15.2% year on year; As the largest car service APP in China, the number of registered users of “Ping An Good Car Owner” exceeded 133 million by the end of March 2021, an increase of 5.1% compared with the beginning of the year.
The asset allocation of insurance fund investment portfolio has been continuously optimized, and the management of asset-liability matching has been continuously improved. As of March 31, 2021, the size of the company’s insurance fund investment portfolio reached 3.78 trillion yuan, an increase of 1.1% compared with the beginning of the year. In the first quarter of 2021, the annualized net investment return of the insurance fund portfolio was 3.5% and the annualized total investment return was 3.1%.
Banking operations are sound and improving, and asset quality has been continuously improved. In the first quarter of 2021, its operating revenue reached 41.788 billion yuan, up 10.2% year on year; Net profit was 10.132 billion yuan, up 18.5 percent year on year. As of the end of March 2021, Ping An Bank’s retail client assets under management (AUM) amounted to RMB 2,802,610 million, up 6.8% from the beginning of the year. The number of retail customers was 110.399,400, up by 3.0% compared with the beginning of the year; Meanwhile, Ping An Bank’s non-performing loan ratio was 1.10%, down 0.08 percentage points compared with the beginning of the year. The provision coverage rate was 245.16%, 43.76 percentage points higher than at the beginning of the year. Significant progress has been made in debt cost optimization. By the end of the first quarter of 2021, the average cost rate of deposits was 2.06%, down 0.36 percentage points year-on-year. The average daily balance of retail demand deposits increased by 18.5% compared with the same period last year. The average daily balance of public demand deposits increased by 26.5% over the same period last year.
The Group’s science and technology strategy continues to deepen, and its science and technology business maintains rapid development
By the end of March 2021, the number of technology patent applications of the Company increased by 1,100 compared with the beginning of the year, and reached a total of 32,512, ranking among the highest among international financial institutions. In addition, in the first quarter of 2021, Ping An won four titles in the Semeval-2021 International Semantic Evaluation Competition. Won one category in the International Medical Question Answering Assessment (MEDIQA 2021) Competition.
Ping An Group’s science and technology strategy has continued to deepen, and its science and technology business has maintained rapid development. In the first quarter of 2021, the total revenue of science and technology business reached 23.824 billion yuan, up 20.1% year on year.
As an important part of the group’s medical and health ecosystem, Ping An Good Doctor takes its own medical team of more than 2,000 people assisted by artificial intelligence as the core, and integrates offline medical and health service network to provide users with integrated online and offline medical and health services. In January 2021, the “Ping An Good Doctor” APP was officially renamed as “Ping An Health” APP. Meanwhile, the Insurance Division was established to comprehensively promote the in-depth cooperation with insurance companies such as Ping An Health Insurance Co., Ltd., and provide users with one-stop, all-around and full-process online medical “Health + Insurance” services.
Ping An Medical Insurance Technology is committed to becoming an intelligent technology company in a comprehensive enabling medical and health ecosystem. With industry-leading experience in medical insurance management, medical management, health management and disease management, Ping An Medical Insurance Technology is committed to becoming a comprehensive enabling medical and health ecosystem. In the first quarter of 2021, Ping An Medical Insurance Technology won the bidding for 7 provincial medical insurance platform construction projects.
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The Ping An Smart City business has been promoted in 152 cities in China and many countries and regions along the “One Belt And One Road” routes. In the construction of digital government, the smart government integration platform helps the government improve the level of urban governance, and the smart citizen service integration platform helps the government promote the reform of “Internet + government services”. In the development of digital economy, enterprise digital operation integration platform provides consulting planning, operation management, training, data governance and application services. In terms of the construction of a digital society benefiting the people, by the end of March, the intelligent citizen service integration platform had accumulated more than 35 million registered users and more than 2.6 billion page views. The Ping An vocational education platform has served more than 55 million individual users and participated in training and learning for more than 1.22 billion times.
Ma Mingzhe, chairman of Ping An, said that 2021 will be the 100th anniversary of the founding of the Communist Party of China, the first year of the country’s 14th Five-Year Plan, and the year of special importance in China’s modernization drive after completing the building of a moderately prosperous society in all respects. The company adheres to the bottom line of abiding by laws and regulations, adheres to the purpose of “laws and regulations +1”, and further enhances the level of compliance management; At the same time, continue to actively responded to an appeal by the party and the country, adhere to seek improvement in stability, continue to deepen financial + technology “, “finance + ecology” strategy, the practice of “professional to make the life more simple, health, science and technology let the financial temperature make life better” concept, around the “deepening reform, sustained growth, the deployment of the future” the management policy, using the financial ecological forces and medical science and technology, To create temperature products and services, to create value for shareholders and customers, to contribute to social development.”