#China #Shanghai #Ping An Insurance #Insurance Growth #Life Health

Steady Growth for Ping An Insurance in Q1 2025

In a recent announcement, Ping An Insurance (Group) Company of China, Ltd. shared promising financial results for the first quarter of 2025, marking a growth of 2.4% in operating profit attributable to equity shareholders of the parent company. This growth translates to a profit of RMB 37.9 billion during the initial three months of the year. The Chinese economy is showing resilience in light of ongoing macroeconomic adjustments, which have provided a supportive backdrop for Ping An's performance.

Notable Growth in Life & Health Segment

The Life & Health insurance division of Ping An has also demonstrated remarkable growth, with an impressive 34.9% year-on-year increase in new business value (NBV), hitting RMB 12.9 billion. This strong growth is attributed to significant enhancements in their multi-channel sales capabilities and a focus on delivering high-quality services to customers. The Life & Health profit attributable to shareholders amounted to RMB 26.9 billion, representing a 5.0% increase from the previous year.

New business value margins saw a substantial improvement, reaching 32.0%, which is up by 10.4 percentage points compared to last year. Specifically, channels like bancassurance and community finance were standout contributors, with their new business values soaring by 170.8% and 171.3% respectively.

Expanded Asset Base

As of March 31, 2025, Ping An's total assets exceeded RMB 13 trillion for the first time, clocking in at RMB 13.18 trillion. This asset growth underscores the group’s robust operational foundation and its strategic focus on core financial services.

Customer Engagement and Retention

The company reported an increase in retail customers to nearly 245 million at the end of March 2025, a growth of 1.0% since the beginning of the year. Remarkably, the retention rate for customers holding four or more contracts reached an impressive 98%, indicating substantial customer loyalty and trust in Ping An’s services. During the first quarter, the company added approximately 8.64 million new customers, a significant year-on-year increase of 20%.

Health and Senior Care Strategy

Ping An is also advancing its health and senior care strategy, with 63% of its retail customers now enjoying service benefits within the health and senior care ecosystem. The services provided cater to management of health and senior care, reflecting the group’s commitment to integrating insurance with comprehensive health services. In the first quarter, nearly 10 million customers benefited from health management services, and over 190,000 qualified for home-based senior care.

Performance of Insurance Funds and Investment

The Group’s investment portfolio generated an unannualized comprehensive return of 1.3%, marking an increase of 0.2 percentage points year-on-year. Additionally, the insurance funds portfolio grew by 3.3%, surpassing RMB 5.92 trillion. These figures demonstrate solid investment management practices and resource allocation strategies deployed by Ping An.

Technological Advancements in Financial Services

Ping An continues to leverage technology, integrating AI tools into its operational framework. This has enabled the company to enhance efficiency and mitigate risks across various business processes, achieving significant cost savings and operational improvements.

The implementation of AI technologies led to smart underwriting and claims processes, with 93% of life insurance policies being underwritten in mere seconds and over half of claims managed through automated solutions. The total services offered via AI reached 450 million interactions, underscoring the pivotal role of technology in driving service excellence.

Conclusions and Future Outlook

In light of the ongoing fluctuations in the global economic climate, Ping An remains focused on driving its integrated finance and health strategy while adapting to both challenges and opportunities. The company aims to continue enhancing customer value through technology innovation and a commitment to high-quality service delivery. As the Chinese market dynamically evolves, Ping An is well-positioned to maintain its trajectory of growth and stability, ultimately benefitting its stakeholders across the board.