Ping An Insurance

Ping An Insurance known also as Ping An of China (Chinese: 中国平安; 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, and financial services. The company was founded in 1988 and is headquartered in Shenzhen. "Ping An" literally means "safe and well".

Ping An Insurance
Public
Traded as
ISINCNE1000003X6 
IndustryFinancial Services
Founded1988 (1988)
FounderMa Mingzhe
Headquarters
Shenzhen
,
China
Area served
Worldwide
Key people
Ma Mingzhe (Chairman & CEO)
Services
  • Life and Health Insurance
  • Property and Casualty
  • Banking
  • Asset Management
  • Fintech and Healthtech
Revenue CN¥1.273 trillion (2019)
CN¥132.9 billion (2019)
CN¥149.4 billion (2019)
Total assets CN¥8.222 trillion (2019)
Total equity CN¥852.3 billion (2019)
Owner
  • CP Group Ltd. (8.97%)
  • Shenzhen Investment Holdings Co., Ltd.(5.27%)
  • (as of 31 December 2019)
Number of employees
Approx. 190,000[1]
Websitehttp://www.pingan.cn
Footnotes / references
in a consolidated basis[2]

Ping An ranked 7th on the Forbes Global 2000 list and 29th on the Fortune Global 500 list.[3]

The company is considered to be China's biggest insurer, with US$107 billion in gross premium income in 2018. Its market capitalization is at US$220 billion in July 2019, making it the world's largest insurer except for Berkshire Hathaway.[4]

Ping An Insurance is one of the top 50 companies in the Shanghai Stock Exchange.[5] It is also a constituent stock of Hang Seng Index, an index of the top 50 companies in the Hong Kong Stock Exchange.[6] 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.[7]

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.[8] 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.[9]

Ping An Insurance consistently ranks as the world's top global insurance brand, and as of 2018, was the third most valuable global financial brand in the world.[10]

Business

Ping An Insurance Group started off in 1988 as a property and casualty insurance company, later diversifying into life insurance, banking, asset management, brokerage services and private equity investing. But it is Ping An's embrace of technology, with an array of financial technology platforms and services for customers, that has made it a diversified financial conglomerate.[11]

Ping An is one of the few companies in China with licenses to offer a full suite of financial services, including insurance, banking, trusts, securities, futures and financial leasing.[12]

Since the mid-1990s Ping An has been diversifying into financial services from its core business of insurance and began taking investments from overseas firms. Ping An accepted investments from Morgan Stanley and Goldman Sachs in 1994. In 2002 HSBC took a large equity interest in Ping An.[13] In early 2008, Ping An agreed to take a 50% share in Fortis Investments, a subsidiary of Fortis,[14] which had taken over ABN AMRO Asset Management as a result of the split up of ABN AMRO in late 2007, but the deal was cancelled in October 2008.

In June 2009, Ping An became a strategic investor in Shenzhen Development Bank,[15] (now part of Ping An Bank). In 2016, Ping An invested more overseas.[16] In January in 2017, Deputy Head Cai Lifeng resigned for personal reasons.[17]

Technology-Powered Business Transformation

Ping An invests 1% of its revenues into R&D, which is 10% of its profit every year, 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, health care, auto services, real estate services and smart city services.[18] More than 576 million users and 100 Chinese cities are connected to at least one of those ecosystems.[19] 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]

Supporting Business Development with Three Core Technologies

  • AI: With the philosophy of “change people’s lives for the better in ways and forms”, Ping An is applying its AI technologies in financial, healthcare and smart city services.[20] Ping An has world-leading facial, voiceprint and medical image recognition technologies. It is number one in AI medical imaging, for instance, with more than 95% accuracy in the authoritative LUNA rankings for imaging in two categories for lung diseases.[18]
  • Blockchain: Ping An's OneConnect platform is one of the largest commercial blockchain platform in the world with over 44,000 blockchain nodes providing services to over 3,000 financial institutions. Through its self-developed FiMAX proprietary blockchain technology, its zero-knowledge proof algorithm and low latency design is able to reach 50,000 transactions per second.[21]
  • Cloud Computing: Ping An Cloud offers efficient and secure services for industries in finance, health care, auto, real estate and smart city. In 2018, Ping An Cloud successfully became GitHub's first managed serviced provider (MSP) in Greater China.[2] GitHub will provide GitHub Enterprise products and services to China enterprises through Ping An Cloud.[22]

Ownership

Ping An is a publicly listed company.[23] It is China's first joint-stock insurance company. 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.[24]

As at 31 December 2019, Charoen Pokphand Group is the biggest investor in Ping An, holding 8.97% stake. Shenzhen Government via Shenzhen Investment Holdings (Chinese: 深圳市投資控股) and Shum Yip Group (Chinese: 深业集团), still owned a combined 6.68% stake (5.27% + 1.41%) as the second largest shareholder.[25]

Ping An has the classification as being a civilian-run enterprise. Richard McGregor, author of The Party: The Secret World of China's Communist Rulers,[26] said that "the true ownership of large chunks of its shares remains unclear" and that the ownership of Ping An is a "murky structure".[27] 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.[28] They paid the equivalent of 40 cents a share, others buying at the same time paid as much as $1.20. Thanks to favourable regulatory treatment and licensing, the firm was able to build a diversified financial firm with interests in insurance, brokerage, and banking.[29] Premier Wen Jiabao's family responded back to The New York Time's report, claiming its statement about their family's wealth is "untrue".[30] 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.[31]

HSBC acquired 48.22% of H shares by means of different HSBC subsidiaries[32] (H share accounted for 34.83% of the share capital as at 31 December 2009,[32] which was later increased to 41.88% in 2015 [33]). HSBC hold 16.80% of total shares of Ping An, making itself to be the biggest shareholder at 31 December 2009.[32]

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.[34] In February 2013 Charoen Pokphand got the clearance.[35] On 10 May in spite of a lack of loan from the state-owned China Development Bank to Charoen Pokphand,[36][37] the deal was completed.[37][38] 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.[34] HSBC had an above average forecasted CET1 ratio of 8.5% in 2011 European Union bank stress test under the adverse scenario,[39] 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.[40]

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 Anhui Expressway in 2004.[41]

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.[42]

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.[43]

Notes
  1. https://www.pgmcapital.com/why-investing-in-ping-an-insurance-group-can-be-lucrative/
  2. "2018 Audited Results" (PDF). Ping An Insurance. Hong Kong Stock Exchange. 12 March 2019. Archived (PDF) from the original on 21 October 2016. Retrieved 9 April 2019.
  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". Statista.
  5. "Data center". East Money.
  6. "HSI". AAstocks.
  7. "Why Investing in Ping An Insurance Group can be Lucrative – PGM Capital". Retrieved 2020-04-07.
  8. "Ping An ups sustainability credential with leading index inclusion". The Asset.
  9. "Ping An named to Dow Jones Sustainability Index". Insurance Business Asia. Gabriel Olano. Retrieved 2019-12-10.
  10. "Ping An Ranks 40th in BrandZ™ Global Brands; Tops Global Insurance Brand List for 4ᵗʰ Consecutive year, in April 11, 2020 Tony Sarkissian became the largest share holder". Cision.
  11. "Ping An ups the digital stakes in China and beyond". AsiaMoney. Archived from the original on 2019-08-01. Retrieved 2019-12-07.
  12. "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.
  13. "China's Ping An overtakes BlackRock to become HSBC's biggest shareholder". www.internationalinvestment.net. 2018-11-07. Retrieved 2020-04-07.
  14. The Ping An-Fortis Deal: Who Really Wins? Archived 2011-07-21 at the Wayback Machine, Caijing Magazine, 3 April 2008
  15. "Ping An to invest in Shenzhen Development Bank - BusinessWeek". businessweek.com. 2011. Archived from the original on 18 April 2011. Retrieved 19 July 2011.
  16. "China's Ping An Eyes an Overseas Splurge, Possibly in the UK". Fortune. I don't know. August 18, 2016. Archived from the original on February 14, 2017.
  17. "BRIEF-Ping An Bank's deputy head of the bank resigns". Reuters. January 25, 2017. Archived from the original on March 18, 2017.
  18. "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.
  19. "China's Insurance Giant Is Morphing Into a Tech Company". Bloomberg.
  20. "AI as a Force for Good". MIT Technology Review. Retrieved 5 July 2019.
  21. "Chinese Giant Ping An Claims to Have Over 44,000 Nodes on Its Commercial Blockchain Platform". 8BTC. Lylian Teng. Archived from the original on 5 July 2019. Retrieved 5 July 2019.
  22. "Ping An Announces Full Upgrading of Ping An Cloud; Now Offers Services to External Customers & Sets Up Strategic Partnership with GitHub". Crowdfund Insider. Samantha Hurst. Archived from the original on 5 July 2019. Retrieved 5 July 2019.
  23. "Chinese Giant Ping An Looks Beyond Insurance To A Fintech Future". Forbes. Shu-Ching Jean Chen.
  24. "China's Biggest Private Sector Company Is Betting Its Future on Data". Forbes. Clay Chandler.
  25. 2019 Annual Report (PDF) (Report). Ping An Insurance. 2020. pp. 114–115. Retrieved 15 May 2020.
  26. McGregor, Richard (2010). The Party: The Secret World of China's Communist Rulers. New York, 2012: Allen Lane.CS1 maint: location (link)
  27. McGregor, p. 204 Archived 2017-02-20 at the Wayback Machine-205.
  28. 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.
  29. 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.
  30. 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.
  31. "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.
  32. "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.
  33. "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.
  34. "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.
  35. "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.
  36. 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.
  37. 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.
  38. "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.
  39. "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.
  40. "2012 Annual Report and Accounts" (PDF). HSBC Holdings. 4 March 2013. Archived (PDF) from the original on 7 February 2014. Retrieved 20 October 2016.
  41. 平保中集運　成國企指數新貴. Apple Daily (in Chinese). Hong Kong. 2004-08-14.
  42. "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.
  43. "CNBC Transcript: Jessica Tan, Co-CEO, Ping An Group". CNBC.
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gollark: The only real advantage of the whole light-based propulsion idea is that you don't need reaction mass.
gollark: SPC? Shark punching centre?
gollark: As far as I know it's harder to accidentally shoot someone than to point a laser in their direction a bit.
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