On March 21, Ping An Insurance (Group) Co., Ltd. of China (hereinafter referred to as "Ping An of China", "Ping An", "Group" or "Company", stock code: Hong Kong Stock Exchange 02318, Shanghai Stock Exchange 601318) announced Results for the full year ended December 31, 2023.
In the past year, the company's overall operating performance remained stable and showed resilience. In 2023, the group achieved operating profit attributable to shareholders of the parent company of 117.989 billion yuan, net profit attributable to shareholders of the parent company of 85.665 billion yuan, and basic operating income per share of 6.66 yuan; The three core businesses of life and health insurance, property insurance and banking remained stable. The total operating profit of the three businesses attributable to shareholders of the parent company was 140.913 billion yuan; the full-year dividend was paid in cash of 2.43 yuan per share, a year-on-year increase of 0.4%. The total dividends Maintained growth for 12 consecutive years. The life insurance business has returned to an upward trend. On a comparable basis, the new business value of the life insurance and health insurance business increased by 36.2%, and the new business value of the agent channel increased by 40.3%. The "comprehensive finance + medical care and elderly care" strategy is coordinated. As of the end of December 2023, Ping An had 232 million personal customers; customers holding four or more contracts within the group accounted for 25.3%, and the retention rate reached 97.7%. The average number of contracts per customer was 2.95; nearly 64% of customers also used services provided by the medical and elderly care ecosystem, and customers with service rights and interests in the medical and elderly care ecosystem accounted for more than 73% of the new business value of life insurance coverage.
The group’s top ten operating highlights in 2023:
1. The core business operation is stable. In 2023, the company will achieve an operating profit of 117.989 billion yuan attributable to shareholders of the parent company. Among them, the three core businesses of life and health insurance, property insurance and banking remained stable. The total operating profit of the three businesses attributable to shareholders of the parent company was 140.913 billion yuan.
2. The level of cash dividends has maintained growth for 12 consecutive years. Ping An focuses on shareholder returns and plans to pay a final dividend of RMB 1.50 in cash per share in 2023. The full-year dividend will be RMB 2.43 in cash per share, a year-on-year increase of 0.4%; the cash dividend ratio calculated based on operating profits attributable to shareholders of the parent company is 37.3 %, and the total amount of dividends has increased for 12 consecutive years.
3. Life insurance and health insurance business operations have developed steadily, the comprehensive strength of channels has been enhanced, and high-quality development has achieved remarkable results. In 2023, the new business value of life and health insurance business will increase by 36.2% year-on-year on a comparable basis, mainly due to the 89.5% increase in the per capita new business value of agents, the 40.3% increase in the new business value of the agent channel; and the reformed bancassurance channel. Momentum was strong, with new business value increasing 77.7%. Based on the latest assumptions such as investment return rate and risk discount rate, the new business value of life and health insurance business reached 31.08 billion yuan. The 13-month policy persistence rate increased by 2.5 percentage points year-on-year.
4. Property and casualty insurance business income grew steadily and quality remained good. In 2023, Ping An Property & Casualty's insurance service revenue was 313.458 billion yuan, a year-on-year increase of 6.5%; the overall comprehensive ratio after excluding the impact of guarantee insurance was 98.4%; the auto insurance comprehensive ratio was 97.7%, better than the market average. If the impact of natural disasters is excluded, The combined ratio of auto insurance was 96.6%; at the same time, Ping An Property & Casualty actively responded to the demand for disaster compensation and assumed social responsibilities.
5. Insurance fund investment performance is excellent. In 2023, facing the complex and changing market environment, Ping An Insurance's capital investment portfolio achieved a comprehensive investment rate of return of 3.6%, a year-on-year increase of 0.9 percentage points; in the past 10 years, it achieved an average net investment rate of return of 5.2% and an average comprehensive investment rate of return of 5.4%. %, exceeding embedded value long-term investment return assumptions.
6. Banking business operations remain stable and risk compensation capabilities remain good. In 2023, Ping An Bank achieved a net profit of 46.455 billion yuan, a year-on-year increase of 2.1%. As of December 31, 2023, the non-performing loan ratio was 1.06% and the provision coverage ratio was 277.63%.
7. The comprehensive financial model continues to deepen. As of December 31, 2023, Ping An had 232 million individual customers, of which 25.3% were customers holding four or more contracts within the group, with a retention rate of 97.7%.
8. The medical and elderly care strategy continues to be implemented, and differentiated advantages empower the main business. As of December 31, 2023, Ping An has achieved 100% cooperation coverage with the top 100 domestic hospitals and top tertiary hospitals through the integration of suppliers, with an internal and external doctor team of approximately 50,000, and the number of cooperative pharmacies reaching 230,000, nearly 100% more than at the beginning of the year. 6,000 homes. In 2023, the new business value of life insurance covered by customers with service rights and interests in the medical and elderly care ecosystem will account for more than 73%.
9. Actively fulfill social responsibilities and support the development of the real economy. As of December 31, 2023, Ping An has invested more than 8.77 trillion yuan in total to support the development of the real economy. Ping An's insurance funds have invested 128.568 billion yuan in green investment, and its green loan balance has reached 146.345 billion yuan. In 2023, the original insurance premium income of green insurance was 37.296 billion yuan. Since the launch of the "Three Villages Project", Ping An has invested a total of 117.882 billion yuan in poverty alleviation and industrial revitalization assistance funds. In 2023, Ping An retained its MSCI ESG rating of "A", maintaining its first place in the Asia-Pacific region in the "Comprehensive Insurance and Brokerage" category.
10. Brand value continues to deepen. In 2023, the company ranks 33rd among the Fortune Global 500, continues to be the 1st global insurance company, and ranks 5th among global financial companies; it ranks 9th among the Fortune China 500; and it ranks among the world's listed companies in Forbes. Ranked 16th among the top 2000 companies; ranked first on Brand Finance’s list of the top 100 most valuable global insurance brands for seven consecutive years.
The high-quality development of life and health insurance business has achieved remarkable results, with new business value increasing by 36.2% year-on-year.
Ping An Life continues to deepen its "4 channels + 3 products" strategy, comprehensively strengthen channel construction and improve business quality. In 2023, the new business value of Ping An's life and health insurance business will increase by 36.2% year-on-year on a comparable basis. Based on the latest investment income and risk discount rate assumptions, the new business value of life and health insurance business reached 31.08 billion yuan. Ping An Life's business quality will gradually improve in 2023, with the 13-month policy continuation rate increasing by 2.5 percentage points year-on-year, and the 25-month policy continuation rate increasing by 6.8 percentage points year-on-year.
The operation and development of the four major channels have achieved remarkable results. The agent channel continues to promote high-quality transformation and team structure optimization. In 2023, the new business value of the agent channel will increase by 40.3%, the new business value per agent will increase by 89.5%, the per capita income of agents will increase by 39.2%, and the new manpower will be "excellent" +" accounted for a year-on-year increase of 25.2 percentage points; the bancassurance channel continues to deepen the exclusive agency model with Ping An Bank to achieve high-quality, leap-forward development. The new business value of the bancassurance channel will increase by 77.7% in 2023; community grid channels have already There are 65 outlets in 51 cities, and the 13-month policy continuation rate of existing customers in the cities promoted by the grid has increased by 5.4 percentage points year-on-year; the downward channel continues to promote sales in seven provinces.
Continue to enrich the product system of wealth insurance, pension annuity and health protection, and rely on the group's medical and elderly care ecosystem to steadily deepen the three core services of medical health, home-based elderly care and high-end elderly care. In terms of "insurance + medical health", Ping An Life Health Management has served more than 20 million customers, and about 76% of new contract customers use health management services; in terms of "insurance + home care", home care covers 54 cities across the country, with a total of more than 8 Thousands of customers have qualified for home-based elderly care services, and the overall customer evaluation is good; in terms of "insurance + high-end elderly care", Ping An's high-end elderly care projects have been launched in 4 cities. Among them, Ping An's Sanya Experience Center will open for operation in July 2023.
Property and casualty insurance and banking performance remained solid, insurance investment performed well, and comprehensive financial strategies continued to deepen.
Property and casualty insurance business revenue grew steadily and quality remained good. In 2023, Ping An Property & Casualty's insurance service revenue was 313.458 billion yuan, a year-on-year increase of 6.5%; the overall comprehensive ratio after excluding the impact of guarantee insurance was 98.4%; the comprehensive ratio of auto insurance was 97.7%, which was better than the market average. If the impact of natural disasters was excluded, auto insurance The combined ratio is 96.6%; it has been awarded the "No. 1 Brand" in China's auto insurance and property insurance by the Ministry of Industry and Information Technology for 13 consecutive years. "Ping An Good Car Owner" APP is China's largest car service APP. As of December 31, 2023, the number of registered users exceeded 200 million, and the cumulative number of tied-up vehicles exceeded 136 million. Ping An Property & Casualty’s online claims service continues to lead the way, scoring 94.52 in the auto insurance service quality index issued by China Banking and Insurance Corporation, ranking among the top in the property and casualty insurance industry.
Banking business operations remain sound and asset quality is overall stable. In 2023, Ping An Bank achieved a net profit of 46.455 billion yuan, a year-on-year increase of 2.1%. As of December 31, 2023, the non-performing loan ratio was 1.06%, the provision coverage ratio was 277.63%, and the risk compensation capability remained good; retail customer assets under management (AUM) were 4,031.177 billion yuan, an increase of 12.4% from the beginning of the year, and the personal deposit balance was 1,207.618 billion yuan. , an increase of 16.7% from the beginning of the year, and the retail business has achieved high-quality and sustainable development.
The investment performance of insurance funds is excellent. As of December 31, 2023, the company's insurance fund investment portfolio exceeded 4.72 trillion yuan, an increase of 9.0% from the beginning of the year. In 2023, Ping An Insurance's capital investment portfolio achieved a comprehensive investment rate of return of 3.6%, a year-on-year increase of 0.9 percentage points; in the past 10 years, it achieved an average net investment rate of return of 5.2% and an average comprehensive investment rate of return of 5.4%, exceeding the long-term investment return of embedded value Assumption.
Ping An adheres to the customer-centered business philosophy, deeply cultivates individual customers, continues to promote comprehensive financial strategies, and consolidates customer group management. Integrated finance brings higher operating efficiency to Ping An, especially reflected in lower customer acquisition costs, lower management and service costs, and higher customer retention rates. As of December 31, 2023, the number of individual customers of the group was 232 million, an increase of 2.2% from the beginning of the year. Among them, customers holding 4 or more contracts within the group accounted for 25.3%, and the retention rate reached 97.7%. The average number of contracts for individual customers is 2.95, and more than 88.01 million individual customers hold contracts with multiple subsidiaries at the same time.
Promote the construction of the medical and elderly care ecosystem and create a new engine for value growth
Innovatively launched the Chinese version of the "managed care model". Ping An draws on more than 10 years of operation and management experience in the insurance and medical industries, covering multiple business lines such as finance, medical care, and technology. It builds its own service barriers by empowering personal financial customers, corporate customers, and building a flagship Internet medical platform. Differentiated medical and elderly care services are seamlessly integrated with the financial business as a payer, representing payers and integrating suppliers to provide the most cost-effective medical and elderly care services and form a unique profit model.
Over the past ten years, Ping An has been based in China and has continued to devote itself to the construction of a medical and elderly care ecosystem. Its differentiated advantages have become increasingly prominent, reflected in its "online, in-store and home" service capabilities and its extensive coverage of hundreds of medical, health and elderly care service resources. , and the availability of high-quality self-operated resources are critical to ensuring service quality. As of December 31, 2023, Ping An has a team of approximately 50,000 internal and external doctors, and more than 36,000 cooperative hospitals. It has achieved 100% cooperative coverage of the top 100 domestic hospitals and top tertiary hospitals, and has more than 100,000 cooperative health management institutions. The number of cooperative pharmacies reaches 230,000.
At present, Ping An's medical and elderly care ecosystem not only creates independent direct value, but also empowers its main financial business through differentiated "products + services". As of the end of December 2023, nearly 64% of Ping An's 232 million individual customers also used services provided by the medical and elderly care ecosystem, with an average number of contracts per customer of approximately 337 and an average AUM of 55,900 yuan, respectively. 1.6 times and 3.5 times that of individual customers who do not use medical and elderly care ecosystem services, and customers who enjoy the rights and interests of medical and elderly care ecosystem services account for more than 73% of the new business value of life insurance coverage. In 2023, Ping An's health insurance premium income will exceed 140 billion yuan. The group's medical and health-related paying corporate customers will exceed 56,000. Ping An Health has nearly 40 million paying users in the past 12 months.
Technological innovation empowers the main business to improve quality and efficiency. As of December 31, 2023, Ping An had a first-class scientific and technological talent team of more than 20,000 technology developers and more than 3,000 scientists; the group's cumulative number of patent applications reached 51,533, ranking both in the fields of financial technology and medical health. Ranked first in the world. In 2023, Ping An will intelligently guide customers to self-service insurance renewals worth RMB 300.3 billion, a year-on-year increase of 13%; AI agent services will be approximately 2.22 billion times; intelligent claims interception will reduce losses by RMB 10.82 billion, a year-on-year increase of 16.0%. Ping An operates technology businesses through member companies such as Lufax Holdings, OneConnect, Ping An Health, and Autohome, providing ecosystem users with diversified products and services, with significant synergy benefits.
Actively fulfill corporate social responsibilities and deepen green finance work. As of December 31, 2023, Ping An has invested a total of more than 8.77 trillion yuan to support the development of the real economy, covering major national projects such as energy, transportation, and water conservancy. Ping An Property & Casualty has provided risk protection of more than 3.9 trillion yuan for more than 1,500 key projects across the country. , escorting national strategic plans such as the construction of the Guangdong-Hong Kong-Macao Greater Bay Area; Ping An Insurance’s green investment scale is 128.568 billion yuan, and the green loan balance is 146.345 billion yuan; the original insurance premium income of green insurance in 2023 is 37.296 billion yuan. Since the launch of the "Three Villages Project", Ping An has invested a total of 117.882 billion yuan in poverty alleviation and industrial revitalization assistance funds.
To become a financially powerful country, we have a long way to go and a long way to go. Looking forward to 2024, Ping An will thoroughly implement the spirit of the Central Financial Work Conference, firmly put the people as the center and customer demand as the orientation, and adhere to the 16th guideline of "focusing on the main business, increasing revenue and reducing expenditure, optimizing the structure, and improving quality and efficiency." We will continue to strengthen risk management, continue to improve operating levels, strengthen financial service capabilities and coverage, deepen the development of the "comprehensive finance + medical care and elderly care" service system to a deeper level and provide comprehensive answers to "tech finance, green finance, universal The five major articles of "Benefit Finance, Pension Finance, and Digital Finance" create long-term, stable and sustainable value for our customers, employees, shareholders and society, and contribute to Ping An's efforts to "accelerate the construction of a financial power".