Hua Er Jie Jian Wen·2025-04-30 20:24Core Viewpoint - The performance of A-share listed insurance companies in the first quarter of 2025 showed significant divergence, with major players like China Ping An experiencing a notable decline in profits despite leading in premium growth and investment returns [1][3][4]. Group 1: Performance Overview - The total net profit of major insurance companies, including China Ping An, China Life, and China Pacific Insurance, reached CNY 841.76 billion, a slight increase of 1.4% year-on-year [1]. - China Life and China Property & Casualty Insurance reported around 40% profit growth, while China Ping An's revenue and net profit fell by 5.2% and 26.4%, respectively, marking the largest decline among listed insurers [1][3]. - The profit drop for Ping An was unexpected given its strong performance in 2024, where it led the industry with a premium growth rate of 7.17% and a top investment return rate [3][4]. Group 2: Causes of Performance Divergence - The divergence in performance is attributed to complex factors, including fluctuations in investment portfolios and differences in accounting standards [4][10]. - Excluding short-term investment volatility, Ping An's core insurance business saw a 2.2% increase in operating profit, with life and health insurance segments growing by 4.99% [5][22]. - The new accounting standards have led to significant differences in how investment income is reported, impacting the perceived profitability of different insurers [15][17]. Group 3: Long-term Strategy and Market Position - Ping An is focusing on a "comprehensive finance + medical and elderly care" strategy to enhance its core competitiveness amid increasing competition and a challenging economic environment [6][30]. - The company has made significant investments in medical and elderly care services, with nearly 63% of customers enjoying related benefits by the end of the first quarter [31][35]. - Despite the competitive landscape in the elderly care sector, Ping An's extensive resources and established market presence may provide a competitive edge [38].