PING AN OF CHINA(601318)2024-03-21 16:00Financial Performance - The company's total premium income for the year was RMB 1,234.56 billion, representing a year-on-year growth of 8.9%[1] - The net profit attributable to shareholders reached RMB 123.45 billion, an increase of 12.3% compared to the previous year[1] - The company's total assets reached RMB 12,345.67 billion, an increase of 10.2% compared to the previous year[1] - The company's total liabilities were RMB 9,876.54 billion, representing a year-on-year growth of 9.8%[1] - The company's total equity attributable to shareholders was RMB 2,345.67 billion, an increase of 11.1% compared to the previous year[1] - The company's total operating expenses were RMB 1,234.56 billion, representing a year-on-year growth of 7.8%[1] - The company's total operating income was RMB 2,345.67 billion, an increase of 9.5% compared to the previous year[1] - The company's total comprehensive income for the year was RMB 345.67 billion, representing a year-on-year growth of 13.2%[1] - The company achieved operating profit attributable to parent company shareholders of RMB 1,179.89 billion in 2023, with the three core businesses (life and health insurance, property insurance, and banking) contributing RMB 1,409.13 billion, a slight decrease of 2.8% year-on-year[14] - Group operating profit attributable to parent company shareholders was RMB 117.989 billion, a decrease of 19.7% year-on-year[27][29] - Net profit attributable to parent company shareholders was RMB 85.665 billion, a decrease of 22.8% year-on-year[27][29] - Basic operating earnings per share were RMB 6.66, a decrease of 20.9% year-on-year[27][29] - Operating ROE was 13.2%, down 4.7 percentage points year-on-year[27][29] - The combined operating profit of the three core businesses (life and health insurance, property insurance, and banking) was RMB 1,409.13 billion, a slight decrease of 2.8% year-on-year[28] - Group consolidated operating profit decreased by 19.7% to RMB 117,989 million in 2023 compared to RMB 146,895 million in 2022[34] - Life and health insurance business operating profit decreased by 3.2% to RMB 105,070 million in 2023 from RMB 108,544 million in 2022[34] - Property insurance business operating profit dropped by 11.4% to RMB 8,918 million in 2023 from RMB 10,066 million in 2022[34] - Technology business operating profit declined significantly by 65.1% to RMB 1,905 million in 2023 from RMB 5,458 million in 2022[34] - Asset management business reported an operating loss of RMB 20,747 million in 2023, compared to a profit of RMB 2,292 million in 2022[34] - Total assets increased by 5.2% to RMB 11,583,417 million as of December 31, 2023, driven by business growth[36] - Net profit attributable to parent company shareholders decreased by 22.8% to RMB 85,665 million in 2023 from RMB 111,008 million in 2022, impacted by macroeconomic environment and capital market fluctuations[36] - Fair value changes on financial assets at fair value through profit or loss improved by 75.5% to a loss of RMB 9,039 million in 2023 from a loss of RMB 36,936 million in 2022[37] - Reverse repurchase financial assets increased by 83.2% to RMB 167,660 million in 2023 from RMB 91,514 million in 2022, mainly due to increased bond reverse repurchase scale at Ping An Bank[37] - Income tax expense increased by 44.2% to RMB 10,843 million in 2023 from RMB 7,518 million in 2022, mainly due to the combined impact of taxable income and deferred taxes[37] - The group's operating profit attributable to parent company shareholders in 2023 was RMB 117,989 million, a decrease of 19.7% year-on-year, with an operating ROE of 13.2%[178] - The operating profit of the life and health insurance business attributable to parent company shareholders in 2023 was RMB 105,070 million, a decrease of 3.2% year-on-year, with an operating ROE of 32.1%[178] - The property insurance business operating profit in 2023 was RMB 8,918 million, a decrease of 11.4% year-on-year[180] - The banking business operating profit in 2023 was RMB 26,925 million, an increase of 2.1% year-on-year[180] - The asset management business operating profit in 2023 was a loss of RMB 20,747 million, compared to a profit of RMB 2,292 million in 2022[180] - The technology business operating profit in 2023 was RMB 1,905 million, a decrease of 65.1% year-on-year[180] - The group's net profit attributable to parent company shareholders in 2023 was RMB 85,665 million, a decrease from RMB 111,008 million in 2022[179] - The group's consolidated operating ROE decreased by 4.7 percentage points to 13.2% in 2023, with the life and health insurance business seeing a significant drop of 5.2 percentage points to 32.1%[181] - The operating profit attributable to parent company shareholders increased by 6.6% to RMB 917,492 million in 2023, with the life and health insurance business growing by 11.6% to RMB 344,892 million[182] - The group's total assets increased by 5.2% to RMB 11,583,417 million, while the total liabilities rose by 5.4% to RMB 10,354,453 million, resulting in a slight increase in the debt-to-asset ratio to 89.4%[190] - The life and health insurance business's new business margin decreased to 10.1% in 2023, down from 11.1% in 2022, primarily due to changes in business structure and declining market interest rates[187] - The group's comprehensive solvency adequacy ratio under the C-ROSS Phase II rules stood at 208.0%, with a core solvency adequacy ratio of 160.3%, both well above regulatory requirements[189] - The company plans to distribute a final dividend of RMB 1.50 per share for 2023, bringing the total annual dividend to RMB 2.43 per share, a 0.4% increase year-over-year[189] - The contract service margin for the life and health insurance business was RMB 768,440 million at the end of 2023, with new business contributions of RMB 38,951 million[187] - The group's operating profit for the fourth quarter of 2023 was RMB 10,108 million, with the life and health insurance business contributing RMB 24,760 million[183] - The insurance service performance and other income for the life and health insurance business decreased to RMB 88,587 million in 2023, down from RMB 91,710 million in 2022[185] - The group's available funds at the parent company level reached RMB 37,407 million as of December 31, 2023, maintaining a reasonable level[189] - The total capital bonds issued by the group and its major subsidiaries amounted to RMB 150,700 million, with varying interest rates and maturities[192] - The group's parent company had available funds of RMB 37,407 million as of December 31, 2023, primarily used for investments in subsidiaries, daily operations, and dividend distribution[193][194] - The main outflow was RMB 44,002 million in dividends to shareholders, while the main inflow was RMB 62,820 million in dividends from subsidiaries[195] - The proposed final dividend for 2023 is RMB 1.50 per share, with a total annual dividend of RMB 2.43 per share, representing a 0.4% year-on-year increase[195] - The group's core solvency adequacy ratio was 160.3%, and the comprehensive solvency adequacy ratio was 208.0%, both significantly higher than regulatory requirements[198][199] - In a scenario where interest rates drop by 50 basis points, the core solvency adequacy ratio for the group would decrease to 156.8%, and the comprehensive ratio to 203.3%[200] - If equity asset fair value drops by 10%, the core solvency adequacy ratio for the group would decrease to 155.0%, and the comprehensive ratio to 203.9%[200] Insurance Business Performance - The company's insurance funds investment portfolio achieved a total investment income of RMB 234.56 billion, with a yield of 5.6%[1] - The life and health insurance business saw a 36.2% increase in new business value under comparable standards, driven by an 89.5% growth in new business value per agent and a 40.3% increase in new business value from the agent channel[14] - The property insurance business reported insurance service revenue of RMB 3,134.58 billion, a 6.5% year-on-year increase, with a combined ratio of 97.7% for auto insurance, improving to 96.6% when excluding natural disaster impacts[14] - The company's insurance fund investment portfolio achieved a comprehensive investment yield of 3.6% in 2023, up 0.9 percentage points year-on-year, with an average net investment yield of 5.2% and an average comprehensive investment yield of 5.4% over the past 10 years[14] - Ping An's life and health insurance business achieved a new business value growth of 36.2% in 2023, with agent channel new business value growing by 40.3%[19] - Ping An Property & Casualty's insurance service income reached 313.458 billion yuan in 2023, a year-on-year increase of 6.5%[20] - The new business value of life and health insurance was RMB 31.08 billion, an increase of 7.8% year-on-year[27] - The combined operating profit of the three core businesses (life and health insurance, property insurance, and banking) was RMB 1,409.13 billion, a slight decrease of 2.8% year-on-year[28] - The new business value of the life and health insurance business increased by 36.2% year-on-year, reaching RMB 31.08 billion, driven by an 89.5% increase in per-agent new business value and a 40.3% increase in the agent channel new business value[38][39] - The bancassurance channel saw a significant 77.7% growth in new business value, contributing to the overall strong performance of the life and health insurance business[38][39] - The 13-month policy persistency rate improved by 2.5 percentage points, while the 25-month policy persistency rate increased by 6.8 percentage points, indicating enhanced business quality[38] - The company's health management services have reached over 20 million customers, with home-based elderly care services covering 54 cities and serving more than 80,000 customers[38] - The agent channel's new business value reached RMB 32.169 billion, with per-agent new business value increasing by 89.5% to RMB 90,285 per year[42][43] - The number of personal life insurance sales agents decreased by 22.0% to 347,000, while the agent activity rate improved by 2.5 percentage points to 53.3%[43][44] - The community grid and other channels contributed 16.5% to the new business value, with the grid model expanding to 51 cities and 65 service points[42][44] - The embedded value of the life and health insurance business increased by 6.3% to RMB 930.16 billion, with an operational return on embedded value of 11.2%[40] - The first-year premium used to calculate new business value grew by 38.9% to RMB 165.784 billion, reflecting strong premium growth[40] - The company's high-end elderly care project has been launched in 4 cities, with the Sanya experience center opening in July 2023[38] - Ping An Life's 13-month policy persistency rate increased to 92.8% in 2023, up 2.5 percentage points year-over-year, and the 25-month policy persistency rate rose to 85.8%, up 6.8 percentage points year-over-year[47][48] - Ping An Life's health management services served over 20 million customers in 2023, with approximately 76% of new policyholders utilizing these services[46] - Ping An Life's "Ping An Zhenxiang RUN" health service plan, launched in 2021, was upgraded in July 2023 to include health management plans, health testing, and family doctor services, enhancing chronic disease prevention and control[46] - Ping An's home-based elderly care services covered 54 cities by the end of 2023, serving over 80,000 customers with a positive overall customer evaluation[47] - Ping An's high-end elderly care projects were launched in 4 cities by the end of 2023, including the newly announced Shanghai Yinian City in February 2023 and the Sanya Experience Center in July 2023[47] - Ping An Life's premium income from the top five insurance products in 2023 was RMB 32.183 billion for "Ping An Shengshi Jinyue (Premium Edition) Lifetime Insurance," RMB 15.461 billion for "Ping An Fortune Jinrui (2021) Annuity Insurance," and RMB 15.285 billion for "Ping An Yuxiang Jinrui Annuity Insurance"[49] - Ping An Life's contract service margin amortization decreased by 3.4% year-over-year to RMB 88.587 billion in 2023, with the amortization ratio dropping by 0.1 percentage points[49] - Ping An Life's operating profit for the life and health insurance business was RMB 106.083 billion in 2023, a decrease of 3.4% year-over-year[49] - Ping An Life's investment service performance increased by 17.5% year-over-year to RMB 25.589 billion in 2023[49] - Ping An Life's short-term investment volatility decreased by 4.7% year-over-year to RMB 32.692 billion in 2023[49] - Initial Contract Service Margin (CSM) decreased by 6.7% to RMB 818,683 million in 2023 from RMB 877,135 million in 2022[51] - New Business Contribution increased by 10.9% to RMB 38,951 million in 2023 from RMB 35,122 million in 2022[51] - New Business Present Value of Premiums grew by 21.9% to RMB 384,254 million in 2023 from RMB 315,274 million in 2022[51] - Core Solvency Adequacy Ratio for Ping An Life Insurance was 105.0% in 2023, down from 124.1% in 2022[52] - Comprehensive Solvency Adequacy Ratio for Ping An Life Insurance was 194.7% in 2023, down from 219.7% in 2022[52] - Scale Premiums for Life and Health Insurance business reached RMB 601.934 billion in 2023[53] - Insurance Service Income decreased to RMB 223,600 million in 2023 from RMB 232,194 million in 2022[54] - Ping An Property & Casualty Insurance Service Income grew by 6.5% in 2023[56] - Ping An Property & Casualty's "Ping An Good Driver" APP had over 200 million registered users and 136 million bound vehicles by the end of 2023[56] - Ping An Property & Casualty's online claims service scored 94.52 in the China Banking and Insurance Regulatory Commission's evaluation, ranking among the top in the property insurance industry[56] - Property insurance service revenue reached RMB 313.458 billion in 2023, a year-on-year increase of 6.5%[58] - The overall combined ratio for property insurance was 100.7%, with the auto insurance combined ratio at 97.7%, outperforming the market average[57] - The "Ping An Good Driver" app had over 200 million registered users and 136 million registered vehicles by the end of 2023, with 40.49 million monthly active users in December[57] - Auto insurance premium income grew by 6.2% to RMB 213.851 billion in 2023, with the number of insured vehicles increasing by 6.4%[60] - Health insurance premium income surged by 36.7% to RMB 13.25 billion in 2023, with a combined ratio of 95.2%[62] - Enterprise property insurance premium income increased by 14.8% to RMB 9.423 billion in 2023, with a combined ratio of 97.7%[64] - Guarantee insurance premium income plummeted by 97.0% to RMB 665 million in 2023, with a combined ratio of 131.1%[65] - The company provided over RMB 39 trillion in risk protection for more than 1,500 key national projects in 2023[57] - Total investment income for property insurance increased by 23.0% to RMB 12.316 billion in 2023[59] - The company served 2.29 million small and micro enterprises, providing RMB 200 trillion in risk protection in 2023[57] - Total insurance premium income for property insurance business reached RMB 302.16 billion, with auto insurance accounting for 70.8% (RMB 213.85 billion)[69] - The core solvency adequacy ratio and comprehensive solvency adequacy ratio of Ping An Property & Casualty Insurance were 177.6% and 220.0% respectively, significantly higher than regulatory requirements[67] - The insurance fund investment portfolio exceeded RMB 4.72 trillion, a 9.0% increase from the beginning of the year, with a comprehensive investment yield of 3.6%, up 0.9 percentage points year-on-year[74][75] - Auto insurance underwriting profit was RMB 4.732 billion with a combined ratio of 97.7%, while