2010 annual results - ping anir.pingan.com/upload/20110330090937728.pdf · 2011. 3. 30. · ping an...

2010 Annual Results 2010 Annual Results

March, 2011March, 2011

Cautionary Statements Regarding ForwardCautionary Statements Regarding Forward--Looking Looking

StatementsStatements

To the extent any statements made in this presentation containinTo the extent any statements made in this presentation containing information that is not historical are g information that is not historical are

essentially forwardessentially forward--looking. These forwardlooking. These forward--looking statements include but not limited to projections, looking statements include but not limited to projections,

targets, estimates and business plans that the Company expects otargets, estimates and business plans that the Company expects or anticipates will or may occur in r anticipates will or may occur in

the future. These forwardthe future. These forward--looking statements are subject to known and unknown risks and looking statements are subject to known and unknown risks and

uncertainties that may be general or specific. Certain statementuncertainties that may be general or specific. Certain statements, such as those include the words or s, such as those include the words or

phrases "potential", "estimates", "expects", "anticipates", "obphrases "potential", "estimates", "expects", "anticipates", "objective", "intends", "plans", "believes", jective", "intends", "plans", "believes",

"will", "may", "should", and similar expressions or variations o"will", "may", "should", and similar expressions or variations on such expressions may be considered n such expressions may be considered

forwardforward--looking statements. Reader should be cautioned that a variety oflooking statements. Reader should be cautioned that a variety of factors, many of which may factors, many of which may

bebe beyond the Company's control, affect the performance, operationsbeyond the Company's control, affect the performance, operations and results of the Company, and and results of the Company, and

could cause actual results to differ materially from the expectacould cause actual results to differ materially from the expectations expressed in any of the tions expressed in any of the

Company's forwardCompany's forward--looking statements. These factors include, but are not limited tlooking statements. These factors include, but are not limited to, exchange rate o, exchange rate

fluctuations, market shares, competition, environmental risks, cfluctuations, market shares, competition, environmental risks, changes in legal, financial and hanges in legal, financial and

regulatory frameworks, international economic and financial markregulatory frameworks, international economic and financial market conditions and other risks and et conditions and other risks and

factors beyond our control. These and other factors should be cofactors beyond our control. These and other factors should be considered carefully and readers nsidered carefully and readers

should not place undue reliance on the Company's forwardshould not place undue reliance on the Company's forward--looking statements. In addition, the looking statements. In addition, the

Company undertakes no obligation to publicly update or revise anCompany undertakes no obligation to publicly update or revise any forwardy forward--looking statement that is looking statement that is

contained in this presentation as a result of new information, fcontained in this presentation as a result of new information, future events or otherwise. None of the uture events or otherwise. None of the

Company, or any of its employees or affiliates is responsible foCompany, or any of its employees or affiliates is responsible for, or is making, any representations r, or is making, any representations

concerning the future performance of the Company. concerning the future performance of the Company.

2

TopicTopic SpeakerSpeaker PositionPosition

OverviewOverview

Operating HighlightsOperating Highlights

Banking Banking Business Business

ReviewReview

Investment Investment Business Business

ReviewReview

Insurance Business Insurance Business

ReviewReview

Financial Analysis and Financial Analysis and

Embedded ValueEmbedded Value

Peter MaPeter Ma

Alex RenAlex Ren Group PresidentGroup President

Executive Director & Executive Director &

Group CFOGroup CFO

Timothy ChanTimothy Chan Group Deputy Chief Group Deputy Chief

Investment OfficerInvestment Officer

Yuansiong LeeYuansiong LeeGroup Chief Insurance Group Chief Insurance

Business OfficerBusiness Officer

Jason Yao Jason Yao

Group Chairman & CEOGroup Chairman & CEO

AgendaAgenda

OverviewOverview

4

2010 was a year of major breakthroughs for Ping An, a direct res2010 was a year of major breakthroughs for Ping An, a direct result of our proactive initiatives ult of our proactive initiatives

in face of the changing economic environment. Our total and net in face of the changing economic environment. Our total and net assets crossed over RMB1 assets crossed over RMB1

trillion and RMB100 billion, respectively. Our threetrillion and RMB100 billion, respectively. Our three--pillar businesses, namely insurance, pillar businesses, namely insurance,

banking and investment, performed strongly and achieved an abovebanking and investment, performed strongly and achieved an above industryindustry--average growth. average growth.

Our overall competitiveness continuously increased and our integOur overall competitiveness continuously increased and our integrated financial structure was rated financial structure was

further enhanced. further enhanced.

Looking into 2011, the changing economic conditions is expected Looking into 2011, the changing economic conditions is expected to present more complex to present more complex

challenges. Nevertheless, we believe that Chinachallenges. Nevertheless, we believe that China’’s economy will maintain a relatively fast and s economy will maintain a relatively fast and

healthy development and will present vast opportunities for Pinghealthy development and will present vast opportunities for Ping An. In line with our strategic An. In line with our strategic

goal of becoming a leading international integrated financial grgoal of becoming a leading international integrated financial group, we will continue to oup, we will continue to

strengthen the core competences of all business lines, improve cstrengthen the core competences of all business lines, improve channels, products and hannels, products and

management platforms to facilitate crossmanagement platforms to facilitate cross--selling, actively explore an innovative development selling, actively explore an innovative development

model that combines modern technology with finance, and strive tmodel that combines modern technology with finance, and strive to move forward the o move forward the

integration between Shenzhen Development Bank with Ping An Bank.integration between Shenzhen Development Bank with Ping An Bank.

OverviewOverview

Operating HighlightsOperating Highlights

6

�� Ping An Life realized total written premiums of over RMB150 billPing An Life realized total written premiums of over RMB150 billion. Firstion. First--year written premiums from year written premiums from

individual life insurance recorded a rapid growth rate of 37.6% individual life insurance recorded a rapid growth rate of 37.6%

�� Ping An Property & CasualtyPing An Property & Casualty’’s premium income increased by 61.4% to a record high of over RMBs premium income increased by 61.4% to a record high of over RMB60 billion; 60 billion;

market share reached 15.4%; combined ratio improved to 93.2%, oumarket share reached 15.4%; combined ratio improved to 93.2%, our best to date r best to date

�� Ping An Annuity maintained its leading positions in the industryPing An Annuity maintained its leading positions in the industry

�� Ping An Health has taken on a new strategic investor Discovery, Ping An Health has taken on a new strategic investor Discovery, the largest health insurance company in the largest health insurance company in

South AfricaSouth Africa

�� Ping An Bank recorded a net profit of RMB1,737 million, an increPing An Bank recorded a net profit of RMB1,737 million, an increase of 60.8%. Accumulated credit cards ase of 60.8%. Accumulated credit cards

issued exceeded 6 million, and the credit card business achievedissued exceeded 6 million, and the credit card business achieved profitability for the first time in the past profitability for the first time in the past

three yearsthree years

�� Strategic investment in Shenzhen Development Bank achieved signiStrategic investment in Shenzhen Development Bank achieved significant progress. The proposed ficant progress. The proposed

restructuring plan of SDB with Ping An Bank is subject to approvrestructuring plan of SDB with Ping An Bank is subject to approval from regulatory bodiesal from regulatory bodies

�� Ping An Securities successfully sponsored 39 IPOs and 11 refinanPing An Securities successfully sponsored 39 IPOs and 11 refinancing projects as the lead underwriter; cing projects as the lead underwriter;

ranked first in terms of the number of deals and underwriting reranked first in terms of the number of deals and underwriting revenuevenue

�� Ping An Trust accelerated the development of wealth management bPing An Trust accelerated the development of wealth management business. Net profit increased by usiness. Net profit increased by

71.5% to RMB1,039 million. Remarkable progress in trust business71.5% to RMB1,039 million. Remarkable progress in trust business transformation was achievedtransformation was achieved

�� Ping AnPing An--UOB Fund was established with the approval of the regulatory autUOB Fund was established with the approval of the regulatory authorities horities

Insurance BusinessInsurance Business

Banking BusinessBanking Business

Investment BusinessInvestment Business

Operating Highlights of Our Three Core BusinessesOperating Highlights of Our Three Core Businesses

NoteNote：：SDB, Shenzhen Development Bank are abbreviations for Shenzhen DeSDB, Shenzhen Development Bank are abbreviations for Shenzhen Development Bank Co., Ltd in this reportvelopment Bank Co., Ltd in this report

7

Financial HighlightsFinancial Highlights

152,838152,838

(In RMB million)(In RMB million)

14,48214,482

91,74391,743

935,712935,712

195,814195,814 28.1%28.1%

17,93817,938 23.9%23.9%

116,883116,883 27.4%27.4%

1,171,6271,171,627 25.2%25.2%

Total Income (IFRS basis)Total Income (IFRS basis)

Net ProfitNet Profit

Total AssetsTotal Assets

Total EquityTotal Equity

20092009 20102010 GrowthGrowth

1.891.89 2.302.30 21.7%21.7%EPSEPS((inin RMBRMB))

Dividend Per ShareDividend Per Share(1)(1)

((in RMBin RMB))

Note: (1) Dividend per share includes final dividend and interimNote: (1) Dividend per share includes final dividend and interim dividend. The final dividend proposed for 2010 is RMB 0.40 per dividend. The final dividend proposed for 2010 is RMB 0.40 per share, share,

pending approval by shareholders at the annual general meetingpending approval by shareholders at the annual general meeting

0.450.45 0.550.55 22.2%22.2%

8

�� Financial Products and Services InnovationFinancial Products and Services Innovation

Steady Execution of Integrated Financial Strategy Steady Execution of Integrated Financial Strategy

�� Accomplished the second phase of operation centralization with Accomplished the second phase of operation centralization with

efficient multiefficient multi--center, which optimized the cost structure through center, which optimized the cost structure through

resource sharing and crossresource sharing and cross--business synergiesbusiness synergies

�� The project of The project of ““building one integrated financial services backbuilding one integrated financial services back--officeoffice”” is is

already under way with steady progress made, establishing a crosalready under way with steady progress made, establishing a crosss--

product, unified and standard service platform to improve servicproduct, unified and standard service platform to improve service e

quality and product supportquality and product support

�� Integrated CostIntegrated Cost--effective Shared Operating Platform effective Shared Operating Platform

One CustomerOne Customer

One Account One Account

Multiple Products Multiple Products

OneOne--stop Servicestop Service�� Ping An One Account Management Services continued to roll out nePing An One Account Management Services continued to roll out new w

features to improve customer experience and offered Ping An features to improve customer experience and offered Ping An

subsidiaries a platform for superior marketing, sales and customsubsidiaries a platform for superior marketing, sales and customer er

services. As of 2010, the number of cumulative registered users services. As of 2010, the number of cumulative registered users

reached 10 million, representing a growth of 150%reached 10 million, representing a growth of 150%

�� We launched numerous service initiatives, demonstrating our streWe launched numerous service initiatives, demonstrating our strength in ngth in

integrated resources planning and coordination. Ping An Propertyintegrated resources planning and coordination. Ping An Property & &

Casualty upgraded its service by shortening the claim payment peCasualty upgraded its service by shortening the claim payment period riod

from three days to one day in the case of claims below RMB10,000from three days to one day in the case of claims below RMB10,000 with with

complete files. Ping An Life introduced the innovative sales modcomplete files. Ping An Life introduced the innovative sales model using el using

the Mobile Integrated Terminal (MIT)the Mobile Integrated Terminal (MIT)

9

Scale and Depth of CrossScale and Depth of Cross--Selling Further Enhanced Selling Further Enhanced

Along with Growing SynergiesAlong with Growing Synergies

Property and casualty insuranceProperty and casualty insurance

Premium incomePremium income

Annuity businessAnnuity business

Entrusted assetsEntrusted assets

AssetsAssets under Investment management under Investment management

Trust businessTrust business

Trust schemesTrust schemes

Banking businessBanking business

Corporate deposits (increase of Corporate deposits (increase of daily average daily average balance)balance)

Corporate loans (increase of Corporate loans (increase of daily average daily average balance)balance)

Credit cards (in ten thousands)Credit cards (in ten thousands)

New business from crossNew business from cross--selling selling AmountAmountBusiness Business

ContributionContribution

20092009

AmountAmount

20102010(In RMB million)(In RMB million)

Business Business

ContributionContribution

5,6355,635

623 623

671671

5,6505,650

2,509 2,509

788788

124124

14.5%14.5%

7.5%7.5%

7.4%7.4%

4.5%4.5%

10.4% 10.4%

5.2%5.2%

56.5%56.5%

8,5828,582

1,5451,545

1,1311,131

13,81213,812

5,2005,200

4,2004,200

124124

13.7%13.7%

15.1%15.1%

7.7%7.7%

14.1%14.1%

21.1%21.1%

20.1%20.1%

54.5%54.5%

Financial Analysis and Financial Analysis and

Embedded ValueEmbedded Value

11


14,48214,482

17,938 17,938


91,74391,743

20092009 20102010 31/12/200931/12/2009 31/12/201031/12/2010

27.4%27.4%

Total EquityTotal Equity

23.9%23.9%

Note: The total equity as at December 31, 2010, included RMB 16 Note: The total equity as at December 31, 2010, included RMB 16 billion in additional stock issue of H share shareholdersbillion in additional stock issue of H share shareholders’’ equityequity

116,883116,883

Net Profit and Total Equity Increased SignificantlyNet Profit and Total Equity Increased Significantly

12

20092009

173,277173,277

226,955226,955

20102010 20092009

7,7377,737

11,52011,520

20102010 20092009

7,5417,541

10,58810,588

20102010

48.9%48.9%31.0%31.0%



Investment BusinessInvestment BusinessInsurance BusinessInsurance Business

(Written Premiums)(Written Premiums)

Notes: (1) Written premiums of insurance business mean all premiNotes: (1) Written premiums of insurance business mean all premiums received from the policies underwritten by the Company, whicums received from the policies underwritten by the Company, which is prior to the h is prior to the

significant insurance risk testing and unbundling of hybrid risksignificant insurance risk testing and unbundling of hybrid risks contractss contracts

(2) The banking business income and investment busin(2) The banking business income and investment business income are based on IFRS. The banking business income includess income are based on IFRS. The banking business income includes the share of es the share of

profits of RMB1,145 million from SDB based on the equity method profits of RMB1,145 million from SDB based on the equity method

(3) The investment business income includ(3) The investment business income includeses incomes from Securities, Trust, Headquarter and other business incomes from Securities, Trust, Headquarter and other business lines (excluding setlines (excluding set--offs). For offs). For

illustration, the investment business income does not include thillustration, the investment business income does not include the income of Xuji Group, which was no longer our subsidiary compae income of Xuji Group, which was no longer our subsidiary company since ny since

the end of May 2010the end of May 2010

Income Growth by Business SegmentsIncome Growth by Business Segments

40.4%40.4%

13

12,28212,282

2,8822,882

1,0801,080

2,3962,396

2,8242,82417.9%17.9%

11,04911,049

11.2%11.2% 166.9%166.9%

Net Profit by Business SegmentsNet Profit by Business Segments

Insurance BusinessInsurance Business Investment BusinessInvestment BusinessBanking BusinessBanking Business


Notes: (1) Net profits from insurance pillar cover life insurancNotes: (1) Net profits from insurance pillar cover life insurance business and property and casualty insurance businesse business and property and casualty insurance business

(2) Net profits from banking pillar refer to that fr(2) Net profits from banking pillar refer to that from Ping An Bank and share of profits from SDB based on the equitom Ping An Bank and share of profits from SDB based on the equity methody method

(3) Net profits from investment pillar include that from Securit(3) Net profits from investment pillar include that from Securities, Trust, Headquarter and other business lines (excluding seties, Trust, Headquarter and other business lines (excluding set--offs). The net offs). The net

profits from other business lines include that from Xuji Group, profits from other business lines include that from Xuji Group, which was no longer our subsidiary company since the end of May which was no longer our subsidiary company since the end of May 20102010

20092009 20102010 20092009 20102010 20092009 20102010

SDBSDB

1,1451,145

Ping An BankPing An Bank

1,7371,737


Others 718Others 718

Securities Securities

&Trust&Trust

1,6781,678

Others 191Others 191

Securities Securities

&Trust&Trust

2,6332,633

56.9%56.9%

60.8%60.8%

14

Healthy Solvency Margin and Capital Adequacy RatioHealthy Solvency Margin and Capital Adequacy Ratio

Group (Total)Group (Total)

Ping An BankPing An Bank

Ping An LifePing An Life

31/12/201031/12/201031/12/200931/12/2009

179.6%179.6%

197.9%197.9%

180.2%180.2%

11.0%11.0%

143.6%143.6%

302.1%302.1%

226.7%226.7%

13.0%13.0%

Note: SDB, a 29.99% associate of the Company, was included in thNote: SDB, a 29.99% associate of the Company, was included in the calculation of the Companye calculation of the Company’’s solvency margin in 2010s solvency margin in 2010

Ping An Property & CasualtyPing An Property & Casualty

SDBSDB 8.9%8.9% 10.2%10.2%

15

Group Solvency Margin MovementGroup Solvency Margin Movement

The effect of The effect of

strategic strategic

investment in investment in

SDB SDB


insurance and insurance and

banking banking

business business

developmentdevelopment

Solvency Solvency as of as of 31/12/201031/12/2010

302%302%

198%198%

35 percentage 35 percentage

points decrease points decrease

Solvency Solvency as of as of 31/12/2009 31/12/2009

Change of Group Solvency MarginChange of Group Solvency Margin



The effect of the The effect of the

direct issuance direct issuance

of 272 million of 272 million

new Hnew H--SharesShares

Solvency as of Solvency as of 31/12/2010, assuming 31/12/2010, assuming successful placement successful placement of the 272 million new of the 272 million new HH--Shares Shares


points increase points increase

224%224%

Note: The Company intends to directly issue 272 million new HNote: The Company intends to directly issue 272 million new H--Shares to JINJUN LIMITED. The projected solvency margin as of thShares to JINJUN LIMITED. The projected solvency margin as of the end of 2010 would e end of 2010 would

be 224%, assuming the direct issuance was completed on 31 Decembbe 224%, assuming the direct issuance was completed on 31 December, 2010er, 2010


dividend dividend

distribution, capital distribution, capital

market movements market movements

and etc.and etc.



16

Composition of Embedded ValueComposition of Embedded Value

123,573123,573 (9,858)(9,858)

104,816104,816 (17,545)(17,545)

200,986200,986

Other BusinessOther Business

79,90079,900

Life InsuranceLife Insurance

121,086121,086


79,90079,900


43,67343,673

Components of Embedded Value Components of Embedded Value -- 31/12/201031/12/2010


Value of inValue of in--force force

insurance business insurance business

written prior to 06/1999written prior to 06/1999

Adjusted net Adjusted net

assets value assets value Value of inValue of in--force force

insurance business insurance business

written since 06/1999written since 06/1999

Cost of solvency Cost of solvency

marginmarginEmbedded valueEmbedded value

Notes: (1) Figures may not match totals due to roundingNotes: (1) Figures may not match totals due to rounding

(2) The relevant life insurance business includes bu(2) The relevant life insurance business includes business conducted through Ping An Life, Ping An Annuity and Ping siness conducted through Ping An Life, Ping An Annuity and Ping An HealthAn Health

(3) Above risk discount rates were earned rate/11% for in(3) Above risk discount rates were earned rate/11% for in--force businessforce business

17

Growth of Embedded ValueGrowth of Embedded Value

155,258155,258

200,986200,986

60,65260,652

94,60694,606

77,41477,414

123,573123,573

29.5%29.5%

27.6%27.6%

30.6%30.6%

31/12/200931/12/2009 31/12/201031/12/2010

The value of inThe value of in--force businessforce business Adjusted net asset valueAdjusted net asset value


Note: (1) Figures may not match totals due to roundingNote: (1) Figures may not match totals due to rounding

(2) Above risk discount rates for the value of in(2) Above risk discount rates for the value of in--force business were earned rate /11% for inforce business were earned rate /11% for in--force businessforce business

18

20.8%20.8%

18.6%18.6%

11,80511,805

15,50715,507

20092009 2010201020092009 20102010

One YearOne Year’’s New Business Values New Business Value

(In RMB million) (In RMB million)

The Overall New Business MarginThe Overall New Business Margin

One Year's New Business ValueOne Year's New Business Value

31.4%31.4%

Note: The above one yearNote: The above one year’’s new business value was after the cost of solvency, calculated s new business value was after the cost of solvency, calculated using the 11% risk discount rateusing the 11% risk discount rate

19

43.7%43.7%

42.7%42.7%

13.6%13.6%

52.7%52.7%

35.2%35.2%

12.1%12.1%

20092009 20102010

63,63063,630

74,55674,556


Individual LifeIndividual Life

Group LifeGroup Life

BancassuranceBancassurance

17.2%17.2%

Note: Above FYP data only correspond to the calculation of one yNote: Above FYP data only correspond to the calculation of one yearear’’s new business values new business value

One Year's New Business MixOne Year's New Business Mix

20

Embedded value Embedded value

of life insurance of life insurance

business as at business as at

31/12/200931/12/2009

Movement in 2010 Movement in 2010 -- Breakdown by Key ComponentsBreakdown by Key Components

100,704100,704

9,8239,823

16,31016,310

(2,848)(2,848)(2,719)(2,719)

1,3921,392 716716392392 123,054123,054

(660)(660)

121,086121,086


(2,023)(2,023)

Expected Expected

return on return on

yearyear--start start

embedded embedded

valuevalue

One year One year

new new

business business

valuevalue

Assumption Assumption

and and

modeling modeling

changeschanges

Market value Market value

adjustmentadjustment

Investment Investment

return variancereturn varianceOther Other

experience experience

variancesvariances

Embedded Embedded

value of life value of life

insurance insurance

business business

before capital before capital

changeschanges

Shareholder Shareholder

dividendsdividends

Impact of Impact of

capital capital

injectioninjection

Embedded value Embedded value

of life insurance of life insurance


31/12/201031/12/2010

Note: (1) Figures may not match totals due to roundingNote: (1) Figures may not match totals due to rounding

(2) Life insurance business includes our life insuranc(2) Life insurance business includes our life insurance business conducted through Ping An Life, Ping An Annuity and Pe business conducted through Ping An Life, Ping An Annuity and Ping An Healthing An Health

Movement Analysis of Life Insurance BusinessMovement Analysis of Life Insurance Business

Capital Capital

investmentinvestment

21

Movement in 2010 Movement in 2010 -- Breakdown by Key ComponentsBreakdown by Key Components

Movement Analysis of Adjusted Net Asset Value of Movement Analysis of Adjusted Net Asset Value of


Adjusted net Adjusted net

assets value of assets value of

other business as other business as

at 31/12/2009at 31/12/2009

Net profit of other Net profit of other

businessbusiness

Market value Market value

adjustment and adjustment and

other variancesother variances

Adjusted net assets Adjusted net assets

value of other value of other


31/12/2010 before 31/12/2010 before

capital changescapital changes

Dividends received Dividends received

from subsidiariesfrom subsidiariesCapital injectionCapital injection Capital investmentCapital investment Adjusted net assets Adjusted net assets

value of other business value of other business

as at 31/12/2010as at 31/12/2010


554,5544,554

8,4698,4692,2372,237 6565,,260260

(2,303)(2,303)

44,,301301

2222,,367367

((66,2,285)85)7979,,900900

Shareholder Shareholder

dividendsdividendsShareholder Shareholder

dividends paid by dividends paid by

the Companythe Company

((33,,440)440)

Note: Figures may not match totals due to roundingNote: Figures may not match totals due to rounding

Banking Business ReviewBanking Business Review

23

�� Strategic investment in Shenzhen Development Bank achieved signiStrategic investment in Shenzhen Development Bank achieved significant progress. The proposed ficant progress. The proposed

restructuring plan of SDB with Ping An Bank is subject to approvrestructuring plan of SDB with Ping An Bank is subject to approval from regulatory bodies al from regulatory bodies

�� Shenzhen Development Bank realized a net profit of RMB 6,284 milShenzhen Development Bank realized a net profit of RMB 6,284 million in 2010, representing an lion in 2010, representing an

increase of 24.9%increase of 24.9%

�� As an associate company of Ping An since May 2010, Shenzhen DeveAs an associate company of Ping An since May 2010, Shenzhen Development Bank has already lopment Bank has already

contributed profit of RMB 1,145 million in 2010contributed profit of RMB 1,145 million in 2010

�� Net profit of Ping An Bank increased by 60.8%, outpacing the indNet profit of Ping An Bank increased by 60.8%, outpacing the industry average, to RMB 1,737 ustry average, to RMB 1,737

million. Accumulated credit cards issued exceeded 6 million, andmillion. Accumulated credit cards issued exceeded 6 million, and the credit card business achieved the credit card business achieved

profitability for the first time in the past three yearsprofitability for the first time in the past three years

�� NonNon--performing loan ratio kept at the industry leading level of 0.41performing loan ratio kept at the industry leading level of 0.41% and capital adequacy ratio was % and capital adequacy ratio was

11.0%11.0%

�� CrossCross--selling delivered remarkable results, generating 34.8% and 54.5%selling delivered remarkable results, generating 34.8% and 54.5% of newlyof newly--added retail added retail

deposits and newlydeposits and newly--issued credit cards respectively issued credit cards respectively

�� Network expansion achieved a further breakthrough. Our 9th brancNetwork expansion achieved a further breakthrough. Our 9th branch, the Huizhou Branch, officially h, the Huizhou Branch, officially

openedopened

Strategic Investment in SDBStrategic Investment in SDB

Ping An BankPing An Bank’’s Businesses, Asset Quality and Capital Adequacys Businesses, Asset Quality and Capital Adequacy

Service and Distribution ChannelService and Distribution Channel

Banking Business HighlightsBanking Business Highlights

24

6,3966,396

5,4385,438

(373)(373)

(3,801)(3,801)

(485)(485)

1,7371,737

4,4484,448

3,4253,425

(183)(183)

(2,917)(2,917)

(268)(268)

1,0801,080

43.8%43.8%

58.8%58.8%

103.8%103.8%

30.3%30.3%

81.0%81.0%

60.8%60.8%

Banking Operating PerformanceBanking Operating Performance

20092009(In RMB million)(In RMB million) 20102010 GrowthGrowth

Operating IncomeOperating Income

Including: Net Interest IncomeIncluding: Net Interest Income

Asset Impairment LossAsset Impairment Loss

General, Administration and Other ExpensesGeneral, Administration and Other Expenses

Income TaxIncome Tax


Notes: (1) General, administration and other expenses include opNotes: (1) General, administration and other expenses include operating expenses, business tax and surcharges, other expenses anerating expenses, business tax and surcharges, other expenses and d

nonnon--operating expensesoperating expenses

(2) The above data are from Ping An Bank(2) The above data are from Ping An Bank

25

0.46%0.46%

156.0%156.0%

13.0%13.0%

0.41%0.41%

211.1%211.1%

11.0%11.0%

1.77%1.77%

1.89%1.89%

59.5%59.5%

2.18%2.18%

2.30%2.30%

52.9%52.9%

31/12/200931/12/2009 31/12/201031/12/2010

Key Ratios Key Ratios

20092009 20102010

NonNon--performing Loans Ratioperforming Loans Ratio

Provisions Coverage RatioProvisions Coverage Ratio

Capital Adequacy RatioCapital Adequacy Ratio

NotesNotes: (1) : (1) Cost/income ratio refers to the total of general administration Cost/income ratio refers to the total of general administration expenses and other expenses / operating income (excluding expenses and other expenses / operating income (excluding

nonnon--operating income)operating income)

(2) The above data are from Ping An Bank(2) The above data are from Ping An Bank

Net Interest SpreadNet Interest Spread

Net Interest MarginNet Interest Margin

Cost/Income RatioCost/Income Ratio(1) (1)

Insurance Business ReviewInsurance Business Review

27

�� Ping An LifePing An Life’’s total written premiums increased by 20.2% to over RMB150 billis total written premiums increased by 20.2% to over RMB150 billion, primarily driven on, primarily driven

by the growth in individual life insurance that commands a higheby the growth in individual life insurance that commands a higher profit margin. Firstr profit margin. First--year written year written

premiums from individual life insurance grew by 37.6%premiums from individual life insurance grew by 37.6%

�� Ping An Health established strategic cooperative partnership witPing An Health established strategic cooperative partnership with Discovery, the largest health h Discovery, the largest health

insurance company in South Africa, which will undoubtedly elevatinsurance company in South Africa, which will undoubtedly elevate Ping Ane Ping An’’s position within the s position within the

highly competitive domestic health care insurance and health manhighly competitive domestic health care insurance and health management marketagement market

�� Ping An Annuity maintained its leading position in the industry.Ping An Annuity maintained its leading position in the industry. Three major indicators, namely Three major indicators, namely

annuity payments received, assets entrusted and assets under invannuity payments received, assets entrusted and assets under investment management, were all estment management, were all

among the highest in the sectoramong the highest in the sector

�� Attributed to the specialized channel operations and a more sophAttributed to the specialized channel operations and a more sophisticated management structure, isticated management structure,

premium income from Ping An Property &Casualty increased by 61.4premium income from Ping An Property &Casualty increased by 61.4% to over RMB60 billion, % to over RMB60 billion,

and its market share grew 2.5 percentage points to 15.4%. The 2and its market share grew 2.5 percentage points to 15.4%. The 2ndnd largest market position has largest market position has

been further consolidatedbeen further consolidated

�� Combined ratio improved to 93.2%, our best to date, demonstratinCombined ratio improved to 93.2%, our best to date, demonstrating the continuous improvement g the continuous improvement

in the quality of our businessin the quality of our business


Corporate AnnuityCorporate Annuity

Property and Casualty InsuranceProperty and Casualty Insurance

Insurance Business HighlightsInsurance Business Highlights

Notes:Notes: (1) Life insurance includes our life insurance business conducte(1) Life insurance includes our life insurance business conducted through Ping An Life, Ping An Annuity and Ping An Healthd through Ping An Life, Ping An Annuity and Ping An Health

(2) Property and casualty insurance includes our property and ca(2) Property and casualty insurance includes our property and casualty insurance business through Ping An Property & sualty insurance business through Ping An Property &

Casualty and Ping An Hong KongCasualty and Ping An Hong Kong

28

Written Premiums/Premium IncomeWritten Premiums/Premium Income

20092009 20102010

134,503134,503

164,448164,448(In RMB million) (In RMB million)

Policy Persistency Ratio Policy Persistency Ratio

91.6%91.6% 90.8%90.8%

86.2%86.2%

87.3%87.3%

75%75%

80%80%

85%85%

90%90%

95%95%

20082008 20092009 20102010

73,43973,43996,87796,877

Premium Premium IncomeIncome

22.3%22.3%

31.9%31.9%

Written Written

PremiumsPremiums

87.0%87.0%

93.1%93.1%

Notes: (1) Notes: (1) Written premiums mean all premiums received from the policies unWritten premiums mean all premiums received from the policies underwritten by the Company, which is prior to the derwritten by the Company, which is prior to the

significant insurance risk testing and unbundling of hybrid rissignificant insurance risk testing and unbundling of hybrid risks contractsks contracts

(2)(2) Premium income meanPremium income meanss premiums after the significant insurance risk testing and unbunpremiums after the significant insurance risk testing and unbundling of hybrid risks contractsdling of hybrid risks contracts

(3) Life insurance includes our life insurance busin(3) Life insurance includes our life insurance business conducted through Ping An Life, Ping An Annuity and Ping An ess conducted through Ping An Life, Ping An Annuity and Ping An Health Health

Life Insurance Business: Strong Growth and Stable Life Insurance Business: Strong Growth and Stable

Business QualityBusiness Quality

29

20102010

100% = 164,448100% = 164,448

Participating 42.4%Participating 42.4%

InvestmentInvestment--linked 2.9%linked 2.9%

Accident and Accident and

shortshort--term term

health 3.8%health 3.8%

Universal Life Universal Life

40.3%40.3%

Traditional Life Traditional Life

Insurance and Insurance and

others 10.6%others 10.6%

20092009

100% = 134,503100% = 134,503

Participating 37.0%Participating 37.0%

InvestmentInvestment--linked 3.4%linked 3.4%

Accident and Accident and

shortshort--term term

health 4.4%health 4.4%

Universal Life Universal Life

42.9%42.9%

Traditional Life Traditional Life

Insurance and Insurance and

others12.3%others12.3%

Notes: (1) The above premiumsNotes: (1) The above premiums meanmean written premiumwritten premiumss

(2) Life insurance includes our life insurance busin(2) Life insurance includes our life insurance business conducted through Ping An Life, Ping An Annuity and Ping An ess conducted through Ping An Life, Ping An Annuity and Ping An HealthHealth

(3) (3) TTrraditionaladitional life insurance life insurance and other and other include long term health, life and annuityinclude long term health, life and annuity


Product Structure of Life BusinessProduct Structure of Life Business

30

38,89338,893

1,8831,883

1,9231,923

42,69942,699

87,447 87,447

130,146130,146

42.4%42.4%

7.7%7.7%

1.8%1.8%

37.6%37.6%

27.0%27.0%

30.3%30.3%

27,31827,318

1,7481,748

1,9581,958

31,02431,024

68,839 68,839

99,86399,863

Individual Life Written Premiums Substantially Individual Life Written Premiums Substantially

Increased Increased

20092009(In RMB million)(In RMB million) 20102010 GrowthGrowth

Individual LifeIndividual Life

First year regular premiumsFirst year regular premiums

First year single premiumsFirst year single premiums

ShortShort--term accident and health premiumsterm accident and health premiums

Total new businessTotal new business

Renewal businessRenewal business

Total individual lifeTotal individual life

Notes: (1) Above premiums are written premiumsNotes: (1) Above premiums are written premiums


31

(In RMB million) (In RMB million) 20092009 20102010 GrowthGrowth

20092009 20102010 GrowthGrowth

Bancassurance and Group Insurance Written Bancassurance and Group Insurance Written

Premiums Remained StablePremiums Remained Stable

BancassuranceBancassurance






Total BancassuranceTotal Bancassurance

Group InsuranceGroup Insurance






Total Group InsuranceTotal Group Insurance

349349

26,79626,796

33

27,14827,148

635635

27,78327,783

1,3281,328

24,86324,863

22

26,19326,193

905905

27,09827,098

280.5%280.5%

7.2%7.2%

33.3%33.3%

3.5%3.5%

42.5%42.5%

2.5%2.5%

88

2,8272,827

3,9773,977

6,8126,812

4545

6,8576,857

115115

2,7652,765

4,2784,278

7,1587,158

4646

7,2047,204

1,337.5%1,337.5%

2.2%2.2%

7.6%7.6%

5.1%5.1%

2.2%2.2%

5.1%5.1%

Notes: (1) Above premiums are written premiumsNotes: (1) Above premiums are written premiums


32

61.2%61.2%

Note: The Company conducts property and casualty insurance businNote: The Company conducts property and casualty insurance business through Ping An Property & Casualty and Ping An Hong Kong ess through Ping An Property & Casualty and Ping An Hong Kong

20092009 20102010

38,77438,774

29,56129,561

7,4767,476

62,50762,507

49,42049,420

11,20511,205

20092009 20102010

98.6%98.6%93.2%93.2%

57.0%57.0% 55.4%55.4%

37.8%37.8%41.6%41.6%

Improved Improved

5.4 5.4 percentage pointspercentage points

Loss RatioLoss RatioExpense RatioExpense Ratio

Premium IncomePremium Income


Combined Ratio Combined Ratio

Property Property andand CasualtyCasualty: : Strong Growth in Strong Growth in Premium Premium

and and Significant Improvement in Significant Improvement in Combined RatioCombined Ratio

Accident HealthAccident HealthAutoAuto Non AutoNon Auto

1,7371,737

1,8821,882

33

20,37220,372

29,80729,807

26,10726,107

38,44838,448

31/12/200931/12/2009 31/12/201031/12/2010

46.3%46.3% 47.3%47.3%

Assets EntrustedAssets Entrusted


Assets under Investment Assets under Investment

ManagementManagement

31/12/200931/12/2009 31/12/201031/12/2010

Continuous Growth in Annuity Business Continuous Growth in Annuity Business

Investment Business ReviewInvestment Business Review

35

�� Ping An Securities achieved a net profit of RMB1,594 million, anPing An Securities achieved a net profit of RMB1,594 million, an increase of 48.7%increase of 48.7%

�� Investment banking business continued to lead the Investment banking business continued to lead the SMEsSMEs and the GEM underwriting market, and the GEM underwriting market,

successfully underwrote 39 IPOs and 11 resuccessfully underwrote 39 IPOs and 11 re--financing projects, ranking top of industry in terms of financing projects, ranking top of industry in terms of

both number of deals and underwriting revenueboth number of deals and underwriting revenue

SecuritiesSecurities

�� Ping An Asset Management proactively grasped the market opportunPing An Asset Management proactively grasped the market opportunities, optimized assets ities, optimized assets

allocation and achieved a total investment yield of 4.9%, furtheallocation and achieved a total investment yield of 4.9%, further demonstrating Ping Anr demonstrating Ping An’’s s

investment capabilities in the industryinvestment capabilities in the industry

InvestmentInvestment

Investment Business HighlightsInvestment Business Highlights

�� Net profit of Ping An Trust increased by 71.5%, reaching RMB1,03Net profit of Ping An Trust increased by 71.5%, reaching RMB1,039 million9 million

�� Ping An Trust accelerated the development of wealth management bPing An Trust accelerated the development of wealth management business, and optimized usiness, and optimized

product structure, achieving remarkable progress in trust busineproduct structure, achieving remarkable progress in trust business transformationss transformation

TrustTrust

FundFund

�� Ping AnPing An--UOB Fund was established with the approval of the regulatory autUOB Fund was established with the approval of the regulatory authorities, which is horities, which is

expected to add another dimension to the services offered by theexpected to add another dimension to the services offered by the Group and hence putting us one Group and hence putting us one

step closer to being an integrated financial services providerstep closer to being an integrated financial services provider

36

29,27229,272

34.4%34.4%

30,72830,728

2010201020092009

Net Investment IncomeNet Investment Income

25,34325,343

18,86318,863


Investment YieldInvestment Yield

Total Investment IncomeTotal Investment Income


2010 2010 20092009

�� The improvement in net investment yield The improvement in net investment yield

was attributed to the increase of dividend was attributed to the increase of dividend

income arising from equity investments. income arising from equity investments.

However, the total investment yield However, the total investment yield

decreased due to Chinadecreased due to China’’s stock market s stock market

corrections in 2010corrections in 2010

Note: The data above is based on insurance fund investment portfNote: The data above is based on insurance fund investment portfolio olio

Total Investment YieldTotal Investment Yield

Net Investment YieldNet Investment Yield

3%3%

4%4%

5%5%

6%6%

7%7%

6.4%6.4%

4.9%4.9%

4.2%4.2%

3.9%3.9%

4.7%4.7%

2010201020092009

Net Investment Yield Improved, Total Investment Net Investment Yield Improved, Total Investment

Yield DecreasedYield Decreased

37

1.8%1.8%

2.0%2.0%

0.4%0.4%

0.2%0.2%

1.0%1.0%

0.3%0.3%

0.5%0.5%

100100% =762,953% =762,953100100% =589,713% =589,713

76.0%76.0%

15.5%15.5%

59.6%59.6%

0.9%0.9%

10.8%10.8%

1.5%1.5%

11.7%11.7%

77.8%77.8%

17.5%17.5%

59.2%59.2%

1.1%1.1%

9.8%9.8%

1.2%1.2%

11.2%11.2%

ChangeChange31/12/201031/12/201031/12/200931/12/2009(In RMB million)(In RMB million)

Portfolio Allocation: Focus on Overall Risk Control Portfolio Allocation: Focus on Overall Risk Control

Fixed Maturity InvestmentsFixed Maturity Investments

Term DepositsTerm Deposits(2)(2)

Bond InvestmentsBond Investments(2)(2)

Other Fixed Maturity InvestmentsOther Fixed Maturity Investments(2)(2)

Equity InvestmentsEquity Investments(2)(2)

Infrastructure InvestmentsInfrastructure Investments

Cash, Cash Equivalent and OthersCash, Cash Equivalent and Others

PortfolioPortfolio(1)(1)

Notes: (Notes: (11)) The above investment portfolio is the insurance fund investment The above investment portfolio is the insurance fund investment portfolioportfolio

((22)) TThe data above exclude items that are classified as cash and cashhe data above exclude items that are classified as cash and cash equivalentequivalent

38

20092009 20102010

71.9%71.9% 96.1%96.1%

Net Fees and Commission Income Significantly Net Fees and Commission Income Significantly

IncreasedIncreased

Ping An SecuritiesPing An Securities


Ping An TrustPing An Trust

20092009 20102010

1,9721,972

3,3903,390

358358

702702

Q&AQ&A

2010 annual results - ping anir.pingan.com/upload/20110330090937728.pdf · 2011. 3. 30. · ping an...

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