Ping An Insurance

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Ping An Insurance
Native name
中国平安
TypePublic
IndustryFinancial Services
Founded1988; 33 years ago (1988)
FounderMa Mingzhe
Headquarters
Shenzhen
,
China
Area served
Worldwide
Key people
Ma Mingzhe (Chairman),  (President & ),  (),  ( & Chief Financial Officer)
Services
  • Insurance
  • Banking
  • Asset Management
  • Financial Services
  • Healthcare
  • Auto Services
  • Smart City
RevenueIncrease CN¥687,788 Million (1H2021)
Increase CN¥78,821 Million (1H2021)
Increase CN¥58,005 Million (1H2021)
Total assetsIncrease CN¥98,876,888 Million (1H2021)
Total equityIncrease CN¥1,028,914 Million (1H2021)
Owner
  • CP Group Ltd. (7.85%)
  • Shenzhen Investment Holdings Co., Ltd.(5.27%)
  • (as of 30 June 2021)
Number of employees
Approx. 362,035[1]
Websitehttps://group.pingan.com
Footnotes / references
in a consolidated basis[2]

Ping An Insurance known also as Ping An of China (simplified Chinese: 中国平安; traditional Chinese: 中國平安; pinyin: Zhōngguó Píng Ān), full name Ping An Insurance (Group) Company of China, Ltd. is a Chinese holding conglomerate whose subsidiaries mainly deal with insurance, banking, asset management, financial services, healthcare, auto services and smartcity. The company was founded in 1988 and is headquartered in Shenzhen. "Ping An" literally means "safe and well".

Ping An ranked 7th on the Forbes Global 2000 list and 21st on the Fortune Global 500 list.[3]

The company is considered to be China's biggest insurer, with US$110 billion in net premiums written in 2019.[4] Its market capitalization is at US$217 billion in March 2021, making it the largest insurer in Asia-Pacific.[5]

Ping An Insurance is one of the top 50 companies in the Shanghai Stock Exchange.[6] It is also a constituent stock of Hang Seng Index, an index of the top 50 companies in the Hong Kong Stock Exchange.[7] Ping An Insurance was also included in the pan-China stock indices CSI 300 Index, FTSE China A50 Index and Hang Seng China 50 Index.[8]

Ping An Insurance has been selected for the 2019 Dow Jones Sustainability Emerging Markets Index (DJSI). It was the first insurance company from mainland China to be selected on the index.[9] Ping An is a signatory of the United Nations-supported Principles for Responsible Investment (PRI), and was the first asset owner in mainland China to join.[10]

Ping An Insurance consistently ranks as the world's top global insurance brand, and as of 2020, was the most valuable global financial brand in the world.[11]

Business[]

Ping An Insurance Group started off in 1988 as a property and casualty insurance company, later diversifying into insurance, banking, asset management, financial services and healthcare services. The company's embrace of technology through its utilization of an array of financial technology platforms and services for customers has made it a diversified financial conglomerate.[12]

Ping An has license to offer financial services, including insurance, banking, trusts, securities, futures and financial leasing.[13]

Since the mid-1990s, Ping An has been subsequently taken investments from overseas firms such as Morgan Stanley and Goldman Sachs in 1994. In 2002 HSBC took a large equity interest in Ping An.[14] In early 2008, Ping An agreed to take a 50% share in Fortis Investments, a subsidiary of Fortis,[15] which had taken over ABN AMRO Asset Management as a result of the split up of ABN AMRO in late 2007; the deal was canceled in October 2008.[citation needed]

In June 2009, Ping An became a strategic investor in Shenzhen Development Bank,[16] (now part of Ping An Bank).

In 2016, Ping An Healthcare and Technology (Ping An Good Doctor) completed a Series A funding round of a total of US$500 million, making its valuation hit US$3 billion. Ping An also bought a 48% stake in Chinese car website Autohome Inc. from Telstra Corp. for $1.6 billion.[17]

In February 2018, three technology subsidiaries of Ping An completed private placement financing, which received positive responses particularly from international institutional investors. They were Ping An Healthcare and Technology Company Limited, Ping An Medical and Healthcare Management Co., Ltd and OneConnect Financial Technology Co., LTD.[18] In May 2018, Ping An Good Doctor was the first technology unicorn listed on the Hong Kong Stock Exchange.[19]

In June 2019, Ping An One Connect Bank officially commenced operation after receiving virtual banking license from Hong Kong Monetary Authority in May 2019. In December 2019, OneConnect Financial Technology was listed on the New York Stock Exchange.[20]

In September 2020, the group unveiled its healthcare ecosystem strategy and healthtech achievements, which featured a three-pronged strategy for Ping An's development. In October 2020, Lufax, one of China's leading online wealth management platform, listed on the New York Stock Exchange.[21]

Technology-Powered Business Transformation[]

Ping An invests 1% of its revenues into R&D (which itself consists of 10% of its annual profits), specifically, on new technologies of AI, Blockchain and Cloud Computing for ten years to transform its financial services and support the building of its five ecosystems: financial services, healthcare, auto services, real estate services, and smart city services.[22] More than 598 million users are connected to at least one of those ecosystems.[23] Over the years, Ping An has successfully launched fintech and healthtech businesses such as Lufax Holding, OneConnect, Ping An Good Doctor (1833.HK), and Ping An HealthKonnect.[2]

It is the industry leader in the areas of AI medical imaging and natural language processing, for instance, Ping An's AskBob Doctor has ranked first in one of the three tasks in MEDIQA 2021, an AI healthcare question-and-answer contest hosted by the Association for Computational Linguistics.[24]

Ping An Ventures[]

In 2012 the company set up Ping An Ventures, a $150 million Venture Capital fund focusing on emerging startups. It invested to a portfolio of over 100 companies, including Chinese app-based ride-hailing company Didi Chuxing and a shopping platform Meituan, US health insurance company Oscar Health, diagnostic company Hycor Biomedical, fintech company Taulia, online payment platform Payoneer, and others.[25][26] In 2014, Ping An, and SBT Venture Capital led a $27 million equity funding round for a social trading brokerage company eToro.[27]

Ping An Global Voyager Fund[]

In 2017, Ping An formed Ping An Global Voyager Fund, a $1 billion Hong Kong-based corporate fund focused on early-stage and established fintech and health-tech assets. The fund has invested over $350 million to more than 13 companies across Europe, Asia and North America, such as an AI startup Laiye, with the largest transaction being $45 million to a German fintech startup Finleap.

The fund’s chairman and CEO is Jonathan Larsen an 18-year veteran of Citigroup and Chief Innovation Officer at Ping An.[28][29][30]

Ownership[]

Ping An is a publicly listed company.[31] Beginning in the 1990s, Ping An took advantage of widening reforms to become the first Chinese financial institution in which foreign firms could own equity: Goldman Sachs and Morgan Stanley were early backers. The company eventually went public in 2004, listing in Hong Kong and subsequently also listed in Shanghai in 2007.[32]

As at 31 Dec 2020, Charoen Pokphand Group is the biggest investor in Ping An, holding 7.85% stake. Shenzhen Government via Shenzhen Investment Holdings (Chinese: 深圳市投資控股), still owned 5.27% stake as the second largest shareholder.[33]

Ping An has the classification of a civilian-run enterprise. Richard McGregor, author of The Party: The Secret World of China's Communist Rulers,[34] said that "the true ownership of large chunks of its shares remains unclear" and that the ownership of Ping An is a "murky structure".[35] In October 2012, The New York Times reported that relatives and associates of Chinese Premier Wen Jiabao controlled stakes in Ping An worth at least US$2.2 billion in 2007.[36] They paid the equivalent of 40 cents a share, others buying at the same time paid as much as $1.20. Thanks to favorable regulatory treatment and licensing, the firm was able to build a diversified financial firm with interests in insurance, brokerage, and banking.[37] Premier Wen Jiabao's family responded to The New York Time's report, claiming its statement about their family's wealth is "untrue".[38] Two lawyers later released a statement on behalf of Wen's family denying the other claims made, and asserting that the premier's 90-year-old mother has never held a US$120 million of Ping An Insurance's investment, as the paper had reported.[39]

HSBC acquired 48.22% of H shares by means of different HSBC subsidiaries[40] (H share accounted for 34.83% of the share capital as at 31 December 2009,[40] which was later increased to 41.88% in 2015 [41]). HSBC hold 16.80% of total shares of Ping An, making itself the biggest shareholder at 31 December 2009.[40]

On 5 December 2012, HSBC announced to sell their entire 15.57% stake for HK$72.736 billion (approx. US$9.385 billion; HK$59.00 per share) to Thailand conglomerate Charoen Pokphand. The deal would split into two phases, which the latter was subjected to the clearance from China Insurance Regulatory Commission, which would be paid in cash and a loan from China Development Bank to Charoen Pokphand.[42] In February 2013 Charoen Pokphand got the clearance.[failed verification][43][44] On 10 May in spite of a lack of loan from the state-owned China Development Bank to Charoen Pokphand,[45][46] the deal was completed.[46][47] According to HSBC, the transaction would increase Tier 1 Capital ratio of the bank for 0.5%, as well as a post-tax gain of US$2.6 billion.[42] HSBC had an above average forecasted CET1 ratio of 8.5% in 2011 European Union bank stress test under the adverse scenario,[48] nevertheless HSBC chose to strengthen its capital by selling Ping An. The actual ratio at 31 December 2012 was 12.3%, increased 2.2% year-to-yearly.[49]

Markets[]

Since 24 June 2004 Ping An has been listed on the Stock Exchange of Hong Kong (subsidiary of Hong Kong Exchanges and Clearing) as SEHK: 2318. Since 1 March 2007, it has a listing on the Shanghai Stock Exchange as SSE: 601318.

Ping An was chosen as an index stock of the Hang Seng China Enterprises Index (HSCEI), replacing in 2004.[50]

The Hang Seng Index Services Company announced on 11 May 2007, that Ping An would join as Hang Seng Index Constituent Stock (Blue Chip Stock) effective on 4 June 2007.[51][non-primary source needed]

Operations[]

Ping An has operations across all of the People's Republic of China, and in Hong Kong and Macau through Ping An Insurance Overseas. Lufax, OneConnect and Ping An Good Doctor have now expanded overseas. OneConnect is in 10 countries outside of China, serving about 27 top institutional financials.[52]

ESG[]

The financial group is the first China asset owner to have signed Climate Action 100+ and the United Nations’ Principle of Responsible Investment (UNPRI). PRI chief Reynolds called Ping An's decision “a milestone on China's road toward the full embrace of ESG.”[53]

Ping An has achieved more than RMB 1 trillion (US$140 billion) in responsible investment from clean energy to affordable healthcare. It has extended green credit lines of more than RMB 62 billion (US$8.5 billion), with a balance of loans at the end of 2019 exceeding RMB 24 billion (US$3.4 billion). It was the first Chinese company to join UN Principles for Sustainable Insurance.[54]

It was also the first insurance company from mainland China to be selected for the 2019 Dow Jones Sustainability Emerging Markets Index (DJSI).[55]

Ping An was named ESG Investor of the Year for Insurers, China at The Triple A Sustainable Investing Awards for Institutional Investor, ETF, and Asset Servicing Providers by The Asset Magazine.[56]

On the 52nd annual Earth Day, the group issued "A Letter from Ping An to the Earth", announcing a comprehensive upgrade of green finance activities and setting quantitative green finance performance targets. It promised to support China's goal of achieving carbon neutrality by 2060, help combat global climate change, and promote sustainable social development.[57]

See also[]

Notes[]

  1. ^ "Why Investing in Ping An Insurance Group can be Lucrative".
  2. ^ Jump up to: a b "2018 Audited Results" (PDF). Ping An Insurance. Hong Kong Stock Exchange. 12 March 2021. Archived (PDF) from the original on 21 October 2016. Retrieved 9 April 2021.
  3. ^ Clay Chandler. "China's Biggest Private Sector Company Is Betting Its Future on Data". Forbes and Fortune. Archived from the original on 2019-09-20. Retrieved 2019-12-07.
  4. ^ "Largest insurance companies worldwide as of July 2019, by market capitalization".
  5. ^ {cite web |title=Largest insurance companies worldwide as of July 2019, by market capitalization |url=https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/japan-taiwan-insurers-among-biggest-market-cap-gainers-in-q1-63408693}}
  6. ^ "Data center". East Money.
  7. ^ "HSI". AAstocks.
  8. ^ "Why Investing in Ping An Insurance Group can be Lucrative – PGM Capital". Retrieved 2020-04-07.
  9. ^ "Ping An ups sustainability credential with leading index inclusion". The Asset.
  10. ^ "Ping An named to Dow Jones Sustainability Index". Insurance Business Asia. Gabriel Olano. Retrieved 2019-12-10.
  11. ^ "Ping An Named the World's Most Valuable Insurance Brand Fifth Year in a Row". Fintech News HK. Retrieved 2021-05-03.
  12. ^ "Ping An ups the digital stakes in China and beyond". AsiaMoney. Archived from the original on 2019-08-01. Retrieved 2019-12-07.
  13. ^ "China's Ping An Insurance aims to join Alibaba, Tencent ranks as tech behemoth". Nikkei Asian Review. Archived from the original on 2019-11-04. Retrieved 2019-12-07.
  14. ^ "China's Ping An overtakes BlackRock to become HSBC's biggest shareholder". www.internationalinvestment.net. 2018-11-07. Retrieved 2020-04-07.
  15. ^ The Ping An-Fortis Deal: Who Really Wins? Archived 2011-07-21 at the Wayback Machine, Caijing Magazine, 3 April 2008
  16. ^ "Ping An to invest in Shenzhen Development Bank - BusinessWeek". businessweek.com. 2011. Archived from the original on 18 April 2011. Retrieved 19 July 2011.
  17. ^ "Ping An to Buy Autohome Stake From Telstra for $1.6 Billion". Bloomberg. Retrieved 2016-04-15.
  18. ^ "Three Technology Subsidiaries under Ping An Group Receive Financing from International Investors". Bloomberg. Retrieved 2018-02-02.
  19. ^ "Good Doctor trades briskly on debut, but ends flat after raising US$1.1b in biggest IPO this year". SCMP. Retrieved 2018-05-04.
  20. ^ "Ping An's OneConnect Flat in Debut After $312 Million IPO". Bloomberg. Retrieved 2019-12-14.
  21. ^ "Chinese Lender Lufax Raises $2.36 Billion in IPO. Why It's a Broken Deal". Barrons. Retrieved 2020-10-30.
  22. ^ "Chinese Giant Ping An Looks Beyond Insurance To A Fintech Future". Forbes. Shu-Ching Jean Chen. Archived from the original on 24 June 2019. Retrieved 5 July 2019.
  23. ^ "Pingan Annual Report" (PDF). KHEX.
  24. ^ "NLP-powered AskBob Doctor Top-ranked in Global AI Competition". ai-techpark. Retrieved 2021-04-19.
  25. ^ Zhu, Julie (2018-02-07). "China's Ping An Ventures to raise up to $1.3 bln for healthcare investments: source". Reuters. Retrieved 2021-09-05.
  26. ^ Hirschauge, Anna Irrera and Orr (2014-11-20). "Chinese, Russian Lenders to Back Israel's eToro". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-09-05.
  27. ^ Finberg, Ron (2014-12-10). "eToro Confirms $27 Million Funding Round with Ping An Ventures and SBT Venture Capital". Retrieved 2021-09-05.
  28. ^ Choudhury, Saheli Roy (2019-11-07). "Start-ups shouldn't be pushed to profitability too early, says CEO of China fund". CNBC. Retrieved 2021-09-05.
  29. ^ Zhu, Julie (2018-02-07). "China's Ping An Ventures to raise up to $1.3 bln for healthcare investments: source". Reuters. Retrieved 2021-09-05.
  30. ^ "Ping An's Global Voyager Fund mulls roping in third-party LPs in new fund". DealStreetAsia. Retrieved 2021-09-05.
  31. ^ "Chinese Giant Ping An Looks Beyond Insurance To A Fintech Future". Forbes. Shu-Ching Jean Chen.
  32. ^ "China's Biggest Private Sector Company Is Betting Its Future on Data". Forbes. Clay Chandler.
  33. ^ 2019 Annual Report (PDF) (Report). Ping An Insurance. 2020. pp. 114–115. Retrieved 15 May 2020.
  34. ^ McGregor, Richard (2010). The Party: The Secret World of China's Communist Rulers. New York, 2012: Allen Lane.CS1 maint: location (link)
  35. ^ McGregor, p. 204 Archived 2017-02-20 at the Wayback Machine-205.
  36. ^ David Barboza, "Billions in Hidden Riches for Family of Chinese Leader" Archived 2017-05-19 at the Wayback Machine, The New York Times, 25 October 2012. Retrieved 27 October 2012.
  37. ^ David Barboza (November 24, 2012). "Lobbying, a Windfall and a Leader's Family". The New York Times. Archived from the original on November 25, 2012. Retrieved November 26, 2012.
  38. ^ Chan, Minnie. "Wen Jiabao's family says claims of hidden fortune are 'lies". SCMP. Archived from the original on 2019-09-27. Retrieved 2019-09-27.
  39. ^ "Wen family hits back at 'lies' on hidden fortune". SCMP. Minnie Chan, Teddy Ng. Archived from the original on 2019-09-27. Retrieved 2019-09-27.
  40. ^ Jump up to: a b c "2009 Annual Report" (PDF). Ping An Insurance. archive of Hong Kong Stock Exchange. 27 April 2010. Archived (PDF) from the original on 21 October 2016. Retrieved 20 October 2016.
  41. ^ "2015 Annual Report" (PDF). Ping An Insurance. Hong Kong Stock Exchange. 29 March 2016. Archived (PDF) from the original on 21 October 2016. Retrieved 20 October 2016.
  42. ^ Jump up to: a b "HSBC to sell its entire shareholding in Ping An Insurance". HSBC. 5 February 2012. Archived from the original on 21 October 2016. Retrieved 20 October 2016.
  43. ^ "Thai tycoons go for it in multi-billion deals". Investvine.com. 2013-02-04. Archived from the original on 2013-02-12. Retrieved 2013-03-17.
  44. ^ "HSBC sells Ping'an stakes to CP Group – Charoen Pokphand Malaysia". Retrieved 2021-06-14.
  45. ^ Chen Xiaoyi (January 8, 2013). "China Development Bank stops loan to Charoen Pokphand to buy Ping An". Morning Whistle. Archived from the original on January 17, 2013. Retrieved 2013-05-10.
  46. ^ Jump up to: a b Yam, Shirley (9 February 2013). "Still too much murkiness around the details of the Ping An deal". South China Morning Post. Archived from the original on 19 February 2013. Retrieved 2013-05-10.
  47. ^ "Ping An rises on HSBC stake sale to Charoen Pokphand". Bloomberg Hong Kong. 5 December 2012. Archived from the original on 2 February 2013. Retrieved 2013-05-10.
  48. ^ "Results of the 2011 EU-wide Stress Test under the adverse scenario". European Banking Authority. 18 July 2011. Archived from the original on 21 October 2016. Retrieved 20 October 2016.
  49. ^ "2012 Annual Report and Accounts" (PDF). HSBC Holdings. 4 March 2013. Archived (PDF) from the original on 7 February 2014. Retrieved 20 October 2016.
  50. ^ 平保中集運　成國企指數新貴. Apple Daily (in Chinese). Hong Kong. 2004-08-14.
  51. ^ "Ping An Insurance Becomes Constituent Stock of Hang Seng Index" (Press release). Ping An Insurance. 11 May 2007. Archived from the original on 7 February 2018. Retrieved 15 June 2017.
  52. ^ "CNBC Transcript: Jessica Tan, Co-CEO, Ping An Group". CNBC.
  53. ^ "China awakens to the power of responsible investing". Financial Times.
  54. ^ "China:Ping An is 1st Chinese company to join UN Principles for Sustainable Insurance". Asia Insurance Review.
  55. ^ "Ping An named to Dow Jones Sustainability Index". Insurance Business Asia.
  56. ^ "ESG Investor and Asset Management Company Awards". The Asset Magazine.
  57. ^ "Ping An steps up green finance activities". Insurance Business Asia.

External links[]

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