Weakness slows Ping An profit rise
By Feng Jianmin |
March 15, 2013, Friday
|
Print Edition
Print Edition
PING An Insurance (Group) Co, China's second-largest insurer, said its profit rose surprisingly slower in 2012 amid weak market growth and a dismal investment environment.
Net profit was 20.05 billion yuan (US$3.23 billion) last year, up 3 percent from 2011, Ping An said in filings to the Shanghai and Hong Kong stock exchanges.
The profit was nearly 10 percent lower than median expectations in an analyst survey compiled by Reuters.
Premium and policy fee income rose 12.5 percent to 233.9 billion yuan, while investment income from banking deposits, bonds, equities and real estate dropped 13 percent to 25.68 billion yuan, the statement said.
"In 2012, amid slower economic growth in China, the financial sector faced challenges including a sluggish capital market, rising bad loan ratio of banks, and weak demand for life insurance products," Ping An said in the filings.
The shares of Ping An have fallen 4.6 percent this year in Hong Kong and 5.5 percent in Shanghai, against a 0.2 percent dip in the Hang Seng Index and a nearly flat Shanghai Composite Index.
Earlier data by the China Insurance Regulatory Commission showed life insurance premiums increased 4.5 percent in 2012, slower than the 6.8 percent growth in 2011. Property and casualty premiums gained 15.2 percent, also lagging 2011 growth of 18.7 percent.
Jin Lin, an analyst of Orient Securities Co, said weak demand for insurance products may continue this year, but a stronger stock market is expected to help lift profits of insurance companies.
Net profit was 20.05 billion yuan (US$3.23 billion) last year, up 3 percent from 2011, Ping An said in filings to the Shanghai and Hong Kong stock exchanges.
The profit was nearly 10 percent lower than median expectations in an analyst survey compiled by Reuters.
Premium and policy fee income rose 12.5 percent to 233.9 billion yuan, while investment income from banking deposits, bonds, equities and real estate dropped 13 percent to 25.68 billion yuan, the statement said.
"In 2012, amid slower economic growth in China, the financial sector faced challenges including a sluggish capital market, rising bad loan ratio of banks, and weak demand for life insurance products," Ping An said in the filings.
The shares of Ping An have fallen 4.6 percent this year in Hong Kong and 5.5 percent in Shanghai, against a 0.2 percent dip in the Hang Seng Index and a nearly flat Shanghai Composite Index.
Earlier data by the China Insurance Regulatory Commission showed life insurance premiums increased 4.5 percent in 2012, slower than the 6.8 percent growth in 2011. Property and casualty premiums gained 15.2 percent, also lagging 2011 growth of 18.7 percent.
Jin Lin, an analyst of Orient Securities Co, said weak demand for insurance products may continue this year, but a stronger stock market is expected to help lift profits of insurance companies.
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