Insurance News
- Ping An firs-half profit soars 140 percent
Date: 20-Aug-2007 Sources: (Shenzhen Daily)
PING An Insurance (Group) Co., China's second-largest life insurer, posted a 140 percent gain in first-half profit over the weekend, driven by a contribution from its banking operations and strong investment returns amid a booming domestic stock market.
This year, analysts expect Ping An's noninsurance business - a fledgling banking arm cemented by the purchase of Shenzhen Commercial Bank in late 2006 and the establishment of Ping An Bank in 2005 - to help galvanize into bottom line.
Ping An, which trails market leader China Life Insurance Co., reported earnings of 9.969 billion yuan (US$1.31 billion) in the six months ending June 30, compared with 4.162 billion yuan in the year-earlier period.
Last month, Ping An said it expected its first-half net profit to more than double based on domestic accounting standards, boosted by increased returns from its banking and investment businesses.
JP Morgan said in a recent note that Shenzhen Commercial Bank should generate more than 1 billion yuan in profit for Ping An this year, adding that the lender only contributed 15 days of profit to Ping An in 2006 following the completion of the acquisition at the end of last year.
Banking contributed 1.086 billion yuan in net profit in the first half, versus 1 million yuan a year earlier. Banking business accounted for 10.9 percent of its first-half total profit.
Ping An's gross written premiums rose about 15.1 percent to 43.138 billion yuan in first-half, with individual life and automobile insurance policies leading the way.
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