Ping An Insurance

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Ping An Insurance
Public
Traded as
IndustryFinancial Services
Founded1988; 31 years ago (1988)
FounderMa Mingzhe
Headquarters,
China
Area served
Worldwide
Key people
Ma Mingzhe (Chairman & CEO)
Services
  • Life and Health Insurance
  • Property and Casualty
  • Banking
  • Asset Management
  • Fintech and Healthtech
RevenueIncrease CN¥1,082.1 Billion (2018)
Increase CN¥112.6 Billion (2018)
Increase CN¥107.4 Billion (2018)
Total assetsIncrease CN¥7,143.0 Billion (2018)
Total equityIncrease CN¥683.6 Billion (2018)
Owner
  • CP Group Ltd. (9.19%)
  • Shenzhen Investment Holdings Co., Ltd.(5.72%)
  • (as of 31 December 2018)
Websitehttp://www.pingan.cn
Footnotes / references
in a consolidated basis[1]

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 has its headquarters in Shenzhen. "Ping An" literally means "safe and well".

Ping An Insurance is one of the top 50 companies in the Shanghai Stock Exchange. Ping An is also a component of Hang Seng Index, an index of the top 50 companies in the Hong Kong Stock Exchange. 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. Ping An Insurance consistently ranks as the world's top global insurance brand, and as of 2018, was the third most valuable global financial services company in the world.[2]

Ping An Insurance is the world's largest and most valuable insurer,[3] worth US$217 billion (1.4 trillion yuan), as of January 2018.[4][5] It is also one of the world's biggest investment and asset management companies, with a total asset of US$958.5 billion (6.5 trillion yuan), as of 2017.[6]

Business[edit]

Ping An Insurance Group is the holding company of Ping An Life Insurance Company of China, Ltd. and Ping An Property & Casualty Insurance Company of China, Ltd. It also controls China Ping An Insurance Overseas (Holdings) Limited and Ping An Trust & Investment Co., Ltd. Ping An Insurance Overseas, located in Hong Kong, is a second holding company for subsidiary companies located outside of mainland China.

Ping An Trust & Investment has the subsidiaries of Ping An Securities and Ping An Bank. Its Trust segment provides trust services as well as undertaking investment activities.[7]

Ping An began as only a casualty insurance company. 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.[citation needed] In 2002 HSBC took a large equity interest in Ping An.[citation needed] In early 2008, Ping An agreed to take a 50% share in Fortis Investments, a subsidiary of Fortis,[8] 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.[citation needed]

In June 2009, Ping An became a strategic investor in Shenzhen Development Bank,[9] (now part of Ping An Bank). In 2016, Ping An invested more overseas.[10] In January in 2017, Deputy Head Cai Lifeng resigned for personal reasons.[11]

Technology-Powered Business Transformation[edit]

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.[12] 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.[1]

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. [13] 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.[14]
  • 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.[15]
  • 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. [1] GitHub will provide GitHub Enterprise products and services to China enterprises through Ping An Cloud.[16]

Ownership[edit]

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, said that "the true ownership of large chunks of its shares remains unclear" and that the ownership of Ping An is a "murky structure".[17] 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.[18] They paid the equivalent of 40 cents a share, others buying in the same time frame paid as much as $1.20. Thanks to favorable regulatory treatment and licensing, the firm was able to build a diverse financial firm with interests in insurance, brokerage, and banking.[19]

HSBC acquired 48.22% of H shares by means of different HSBC subsidiaries[20] (H share accounted for 34.83% of the share capital as at 31 December 2009,[20] which was later increased to 41.88% in 2015 [21]). HSBC hold 16.80% of total shares of Ping An, making itself to be the biggest shareholder at 31 December 2009.[20]

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 paid in cash and a loan from China Development Bank to Charoen Pokphand.[22] In February 2013 Charoen Pokphand got the clearance.[failed verification][23] On 10 May in spite of a lack of loan from the state-owned China Development Bank to Charoen Pokphand,[24][25] the deal was completed.[25][26] 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.[22] HSBC had an above average forecasted CET1 ratio of 8.5% in 2011 European Union bank stress test under the adverse scenario,[27] 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.[28]

As at 31 December 2015, 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, it was followed Huaxia Life Insurance (3.40%), Central Huijin Asset Management for 2.65% (a wholly owned subsidiary of state-owned Central Huijin Investment) and China Securities Finance for 2.07% stake.[21] Although 40.74% share capital were H share, about 1.03% of total share capital were owned by mainland Chinese investors via Shanghai-Hong Kong Stock Connect.[21]

Markets[edit]

Since June 24, 2004 Ping An has been listed on the Hong Kong Stock Exchange. SEHK2318 Now,[when?] it has a listing on stock exchange in Shanghai, SSE: 601318.

Ping An was chosen as an index stock of the Hang Seng China Enterprises Index (HSCEI),[29] replacing Anhui Expressway.[citation needed]

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.

Operations[edit]

Ping An has operations across all of the People's Republic of China, and in Hong Kong and Macau through Ping An Insurance Overseas. Ping An also has a global network of branches and representative agents in over 150 countries.

In 2010, Ping An's asset management arm implemented DST Global Solutions' Hiportfolio investment accounting system to run their back office operations.

Joint ventures[edit]

Ping An Trust, a subsidiary of Ping An Insurance, had a joint venture Ping An UOB Fund Management. The other shareholders were UOB Asset Management and Sanya Yingwan Tourism. Ping An UOB Fund was the limited partner of a private equity fund that acquired 23.81% shares of Rongyu Group.

Lufax is a Ping An Group-backed Chinese online lending platform.[10]

References[edit]

  • McGregor, Richard. The Party: The Secret World of China's Communist Rulers. Harper Perennial: New York, 2012. ISBN 978-0-06-170876-3. Originally published in 2010 by Allen Lane, a Penguin Books imprint.

Notes[edit]

  1. ^ a b c "2018 Audited Results" (PDF). Ping An Insurance. Hong Kong Stock Exchange. 12 March 2019. Retrieved 9 April 2019.
  2. ^ "Ping An Ranks Third Among Global Financial Services Companies in the 2018 "BrandZ(TM) Top 100 Most Valuable Global Brands" List". AsiaOne.
  3. ^ Chinese brand value. "Tech giants brand value on the up". www.ChinaPost.com.tw.
  4. ^ "Ping An Insurance (Group) Market Cap (PNGAY)". ycharts.com.
  5. ^ "Ping An Is The Largest Insurance Company In 2017 - pg.1". Forbes.
  6. ^ "Ping An Insurance's 2017 Annual Report" (PDF). statista.
  7. ^ "Bloomberg - Are you a robot?". www.bloomberg.com. Retrieved 2019-03-06.
  8. ^ The Ping An-Fortis Deal: Who Really Wins?, Caijing Magazine, 3 April 2008
  9. ^ "Ping An to invest in Shenzhen Development Bank - BusinessWeek". businessweek.com. 2011. Archived from the original on 18 April 2011. Retrieved 19 July 2011.
  10. ^ a b "China's Ping An Eyes an Overseas Splurge, Possibly in the UK". Fortune. I don't know. August 18, 2016.
  11. ^ "BRIEF-Ping An Bank's deputy head of the bank resigns". Reuters. January 25, 2017.
  12. ^ "Chinese Giant Ping An Looks Beyond Insurance To A Fintech Future". Forbes. Shu-Ching Jean Chen. Retrieved 5 July 2019.
  13. ^ "AI as a Force for Good". MIT Technology Review. Retrieved 5 July 2019.
  14. ^ "Chinese Giant Ping An Looks Beyond Insurance To A Fintech Future". Forbes. Shu-Ching Jean Chen. Retrieved 5 July 2019.
  15. ^ "Chinese Giant Ping An Claims to Have Over 44,000 Nodes on Its Commercial Blockchain Platform". 8BTC. Lylian Teng. Retrieved 5 July 2019.
  16. ^ "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. Retrieved 5 July 2019.
  17. ^ McGregor, p. 204-205.
  18. ^ David Barboza, "Billions in Hidden Riches for Family of Chinese Leader", The New York Times, 25 October 2012. Retrieved 27 October 2012.
  19. ^ David Barboza (November 24, 2012). "Lobbying, a Windfall and a Leader's Family". The New York Times. Retrieved November 26, 2012.
  20. ^ a b c "2009 Annual Report" (PDF). Ping An Insurance. archive of Hong Kong Stock Exchange. 27 April 2010. Retrieved 20 October 2016.
  21. ^ a b c "2015 Annual Report" (PDF). Ping An Insurance. Hong Kong Stock Exchange. 29 March 2016. Retrieved 20 October 2016.
  22. ^ a b "HSBC to sell its entire shareholding in Ping An Insurance". HSBC. 5 February 2012. Retrieved 20 October 2016.
  23. ^ "Thai tycoons go for it in multi-billion deals". Investvine.com. 2013-02-04. Retrieved 2013-03-17.
  24. ^ Chen Xiaoyi (January 8, 2013). "China Development Bank stops loan to Charoen Pokphand to buy Ping An". Morning Whistle. Retrieved 2013-05-10.
  25. ^ a b Yam, Shirley (9 February 2013). "Still too much murkiness around the details of the Ping An deal". South China Morning Post. Retrieved 2013-05-10.
  26. ^ "Ping An rises on HSBC stake sale to Charoen Pokphand". Bloomberg Honk Kong. 5 December 2012. Retrieved 2013-05-10.
  27. ^ "Results of the 2011 EU-wide Stress Test under the adverse scenario". European Banking Authority. 18 July 2011. Retrieved 20 October 2016.
  28. ^ "2012 Annual Report and Accounts" (PDF). HSBC Holdings. 4 March 2013. Retrieved 20 October 2016.
  29. ^ "Ping An Insurance Becomes Constituent Stock of Hang Seng Index". Ping An Insurance. 11 May 2007. Retrieved 15 June 2017.

External links[edit]