not vested
Ping An Insurance (2318 HK / 601318 CH) - Gradual recovery underway
Ping An is China’s second largest life and property & casualty (p&c) insurer, with an integrated financials services platform.
Life insurance, p&c insurance and banking segments contributed 66%, 16% and 12% respectively to 2019 operating profits.
Driven by its strong agency focus, diversified business model and proprietary technology to improve the customer experience and facilitate cross-sales efforts, Ping An continues to deliver strong organic growth in life/health insurance and internet finance, benefiting from the rising protection and wealth management needs of China’s rising middle class.
Following a transition year for the company in 2019, we expect continued distribution cost discipline and life product mix improvements ahead.
To improve retention rates, the company has moved its recruitment model from mass hiring to an artificial intelligence (AI)-based electronic process.
Potential further value at a later stage may be unlocked by separate listing of its Fintech and Securities businesses. BUY.
Source: OCBC