Ping An Explained the Structure of the Company's Value and the Application of Technology in its Traditional Businesses at its 2018 Investor Day Themed 'Core Finance'
HONG KONG and SHANGHAI, Oct. 15, 2018 /PRNewswire/ -- Ping An Insurance (Group) Company of China, Ltd. (hereafter "Ping An" or "the Group" or "the Company", HKEx: 2318; SSE: 601318) held its Investor Day, in Shenzhen, themed "Core Finance". Mr. Jason Yao, Chief Financial Officer and Chief Actuary of the Group; Mr. Xie Yonglin, Vice President of the Group and Chairman of Ping An Bank; Mr. Timothy Chan, Chief Investment Officer of the Group; and Ms. Yu Hong, President of Ping An Life, respectively, delivered presentations and analyses of Ping An's value, retail banking business transformation, risk management of investment and technology empowering life insurance.
During the investor day, the management of the Company sequentially delivered detailed presentations about the structure of Ping An's value and how the company's technology empower the Group's traditional businesses. For the structure of Ping An's value, the management deconstructed and analyzed the operating profit, its industry-leading rate on embedded value (ROEV) and high P/EV ratio. The company shared how technologies have been widely applied to Ping An's business scenarios, including insurance, banking and investment.
The five major highlights of the Investor Day were:
- Operating profit gives a clearer picture of business trend and the diversified profit source supports sustainable dividend growth: With the help of a stable release of residual margin of life and health insurance business, and significant driving forces of non-life insurance business growth, the Company's operating profit provides a clearer picture of business operations trends than net profit, which is impacted by a number of less predictable factors under international accounting standard IFRS9. The operating profit, therefore provides a more stable and predictable measure of performance, thus assuring the sustainability and stability of dividends for the shareholders. Between 2013 and 2017, total dividends rose from RMB5,145 million to RMB27,420 million, representing a CAGR of 52%.
- Industry-leading ROEV: Thanks to the excellent new business, prudent assumptions approach, excellent operation management and high return of non-life insurance business, Ping An achieved an industry-leading ROEV and P/EV ratio. The average ROEV of Ping An's life and health insurance business in the past 5 years is 24.7%.
- Fully applying AI in five major insurance business scenarios: AI technology has been widely and effectively applied into the five business scenarios: agent recruitment, training, agent management, sales model and services, which demonstrates Ping An's industry-leading technology capability.
- Retail banking business becoming strong driving force: The revenue and profit of the retail business has surpassed corporate business for the first time. Credit card business entered the tier-1 division with both the number of active accounts and consumption amount ranking 2nd among joint-stock banks. Asset quality continues to improve. It is expected that the bank's asset quality will recover to a more normal level by the end of the year;
- International smart investment management system supporting the risk management system of investment: Ping An has established a smart risk management investment system which contains the 6-core strategies. In the past decade, average net investment income (NII) ratio stayed above 5% with a CAGR of 21%.
Looking to the future, Mr. Yao said, "We will further improve the strategy of 'finance + technology' and pursue 'finance + ecosystem'. By leveraging five key technologies, namely AI, blockchain, cloud, big data, and security, we will keep improving efficiency, lowering costs, optimizing user experience, and strengthening risk control, to enhance competitiveness. While promoting the value of the Group, we are endeavoring to bring long-term and stable investment return to our shareholders, clients, employees, and society."
About Ping An
Ping An Insurance (Group) Company of China, Ltd. ("Ping An") is a world-leading technology-powered personal financial services group. With 179 million customers and 485 million Internet users, Ping An is one of the largest financial services companies in the world. Under its 'pan financial assets' strategy the company offers customers insurance, banking and asset management through its 'finance + technology' platform. Under its 'pan healthcare' strategy the company uses a 'finance + ecosystem' platform to offer Internet users five ecosystems, covering financial services, healthcare, auto services, real estate services and Smart City services. Ping An is committed to investing in innovative technologies in fintech, AI and cloud to provide customers and Internet users with innovative and simple products and services. As China's first joint stock insurance company, Ping An Group is committed to upholding the highest standards of corporate reporting and corporate governance. The company is listed on the stock exchanges in Hong Kong and Shanghai.
Ping An ranked 10th in Forbes' 2018 Global 2000, and it ranked 29th in Fortune Magazine's 2018 Global 500 Leading Companies. Ping An also ranked 43rd in 2018 WPP Millward Brown's BrandZTM Top 100 Most Valuable Global Brands. For more information, please visit www.pingan.cn
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