PING AN OF CHINA(02318)2023-09-19 09:45Premium Income and Business Growth - In the first half of 2023, the premium income from Ping An Health Insurance through life insurance agents increased by 13.6% year-on-year[1]. - As of June 30, 2023, Ping An Property Insurance reported a premium income of RMB 19,648 million, accounting for 12.7% of total income, while Ping An Health Insurance accounted for RMB 5,763 million, representing 69.0%[1]. - The total insurance premium income for the group reached CNY 459.848 billion, representing a year-on-year growth of 7.2%[15]. - The new business value of life and health insurance for the first half of 2023 increased by 32.6% year-on-year, with a comparable increase of 45.0%[31]. - The new business value for the life and health insurance segment reached RMB 25,387 million, with a year-on-year growth of 45.0% on a comparable basis[127]. - The first-year premium income for the same period was RMB 113.90 billion, up 49.6% compared to the previous year[104]. - The new business value from the bancassurance channel was RMB 2.83 billion, showing a significant year-on-year growth of 174.7%[105]. - The new business premium from the agent channel was RMB 101,072 million, up from RMB 59,363 million in 2022, indicating a growth of 70.4%[169]. Customer Base and Retention - As of June 30, 2023, Ping An has over 229 million individual customers, with an average of 2.99 contracts per customer, reflecting a 0.7% increase since the beginning of the year[10]. - The group has a high customer retention rate, with 66.7% of customers having been with the company for over five years, totaling approximately 153 million[17]. - The number of personal customers increased to 22.926 million, a year-on-year growth of 1.2%[78]. - The persistency rate for existing customers improved by 5.7 percentage points year-on-year, demonstrating enhanced customer retention[157]. - Over 64% of Ping An's individual customers, totaling more than 229 million, utilized services from the medical health ecosystem, with an average of 3.43 contracts per customer and an average AUM of RMB 55,800[4]. Financial Performance - The operating profit attributable to shareholders for the first half of 2023 reached CNY 81.957 billion, with an annualized return on equity (ROE) of 18.2%[15]. - The operating profit for the first half of 2023 was RMB 58.59 billion, slightly down by 1.7% from the previous year[104]. - The net profit for the same period was RMB 46.34 billion, an increase of 4.5% year-on-year[104]. - The total net profit for the group was RMB 83,426 million, with the net profit attributable to the parent company's shareholders at RMB 69,841 million[121]. - The annualized return on equity (ROE) dropped by 3.0 percentage points year-on-year to 18.2%[78]. Insurance and Healthcare Ecosystem - The company has established a medical health ecosystem with nearly 4,000 in-house doctors and over 50,000 contracted external doctors, achieving 100% cooperation coverage with top hospitals in China[4]. - The "Ping An Health" online flagship platform has served over 16 million Ping An Life Insurance customers, with nearly 70% of new contract customers using health services[7]. - The health management services of Ping An Life Insurance served over 16 million customers in the first half of 2023, achieving a service satisfaction rate of 99%[40]. - The company has served over 200,000 customers through its "health insurance + service" products, combining insurance with high-end medical services[64]. - The company completed the acquisition of Peking University Medical Group, integrating six top-tier hospitals and specialty medical institutions into its healthcare ecosystem[92]. Investment and Asset Management - Ping An has invested over CNY 8.27 trillion to support the real economy, with green investment in insurance funds amounting to CNY 140.929 billion[12]. - The company's insurance fund investment portfolio reached approximately RMB 4.62 trillion, growing by 6.5% since the beginning of the year[184]. - The annualized comprehensive investment return rate for the insurance fund investment portfolio was 4.1%, an increase of 0.7 percentage points year-on-year[189]. - The total investment income for the same period was RMB 8,044 million, representing a significant increase of 33.2% from RMB 6,040 million in the previous year[198]. - The company continues to enhance its investment research, product innovation, and post-investment management capabilities to maximize the value of its investment assets[187]. Product Development and Innovation - The company is enhancing its insurance product system by gradually introducing "insurance + service" products to address changing customer needs and market competition[57]. - The company has introduced new insurance products to meet the growing demand for wealth management and retirement planning, including flexible pension products[133]. - The company launched 51 key products under the "Three Savings" value evaluation system in the first half of 2023, covering various financial and lifestyle scenarios[39]. - The average number of contracts held by high-net-worth customers reached 21.44, significantly higher than that of affluent customers, indicating a strong cross-selling strategy[47]. Technology and Digital Transformation - The digital marketing platform helped agents reach over 110 million customers in the first half of 2023, with AI service handling 81% of total customer service volume[69]. - The company aims to enhance customer value by providing a one-stop financial solution, with 39.6% of total customers holding multiple contracts[69]. - The company has expanded its overseas cooperation network to cover over 1,000 medical institutions across 16 countries[63]. - The company has launched 550 home care services and increased the number of cooperating pharmacies to 226,000, achieving a national coverage rate of over 36%[63].