Ping An: A Victorious Company in the Virus-Hit Year

Financials Author: Skye Lan Editor: Luke Sheehan Feb 17, 2021 04:14 PM (GMT+8)

The financial figures are telling us that Ping An insurance has conquered the pandemic.

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Ping An has released its financial results for the entirety of 2020. During the pandemic-influenced year, it achieved an operating income of CNY 139.47 billion, a 4.9% increase from the previous year. The operating ROE posted at 19.5%. Fair to say, Ping An did well enough fighting with COVID-19. 

All segments of the Ping An ecosystem reported encouraging performances. Life and healthcare insurance had a 5.3% year-over-year improvement on operating income, figured at CNY 93.67 billion. The property insurance sector, which had been negatively infected by the pandemic, posted a 5.5% rise in insurance premiums. The investment portfolio was worth over CNY 3.74 trillion by end of the year, an increase of 16.6% from the year before.  

Ping An Bank, an independent company but also a crucial part of the ecosystem, reported growths of 11.3% and 2.6% on revenue and net income. Also, the nonperforming loan ratio was controlled well, with 0.47% down from last year to 1.18% by end of 2020. 

Lufax (LU:NYSE), Ping An’s US-listed fintech spinoff that runs a personal finance platform in China, had its client asset scale increased by 23% during the year. OneConnect (OCFT:NYSE) (Check the 2020 performance analysis here), another US-listed fintech member of the Ping An ecosystem, which provides technical support to financial institutions, posted a 42.3% revenue growth in 2020.

The client base has been improving as well. By the end of 2020, the individual customer rate reached 218 million, a 9% increase from the previous year. 36% of the new clients came from Ping An’s Internet ecosystem. 

What is more, the patent application number reached 31,412 at the end of 2020, ranking first in fintech and digital healthcare fields, and ranking third in AI and blockchain.