PING AN ECLIPSES CHINA LIFE WITH 138% GROWTH IN PROFITS FOR 2007
China’s second largest insurer Ping An enjoyed a 2007 performance that surpassed its rival China Life in terms of its growth in profits as the various players in China’s insurance sector posted their 2007 results. Ping An enjoyed a 140.2% increase in profit posting 19.2 billion yuan due to a doubling of income in both its life and non-life insurance segments. A similar level of growth in its banking and securities activity resulted in a total premium income and deposits that exceeded 100 billion yuan. Premium revenue for its property/casualty grew by 27%, passing the 20 billion yuan mark for the first time, while life premiums rose by 11.6% to 59.9 billion yuan. Meanwhile assets under its pension annuity business brought in 4.98 billion yuan and total investment income rose by 136% to 51.7 billion yuan. Commenting on the results, Ping An cited the growth of its life insurance business as well as the integration of its banking business and the “establishment of a global investment platform which has led to enhanced global asset allocation capabilities and has resulted in the company becoming the first mainland China insurance company which has obtained regulatory approval to invest up to 15% of its total assets in the previous year to overseas markets”. Earlier this month Ping An successfully raised more than 100 billion yuan from its shareholders to finance further overseas investments including the recent acquisition of the asset management arm of Belgo-Dutch financial group Fortis . Ping An has also applied for permission to launch a fund management firm in mainland China as part of its strategy to establish itself as a financial conglomerate.
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