In 2023, Ping An achieved an operating profit attributable to its parent company of RMB117.989 billion

Ping An of China Achieves Operating Profit attributable to the parent company of RMB117.989 billion in 2023 Cash dividends have maintained growth for 12 consecutive years Life insurance business has regained momentum and the value of new business has increased by 36.2% year-on-year

March 21, 2024 – Ping An Insurance (Group) Company of China Co., Ltd. ("Ping An", "Ping An", "Group" or the "Company", stock code: Hong Kong Stock Exchange 02318, Shanghai Stock Exchange 601318) today announced its annual results for the year ended December 31, 2023.

2023 is the first year for the full implementation of the spirit of the 20th National Congress of the Communist Party of China, and a key year for the implementation of the 14th Five-Year Plan. In the face of many unfavorable factors such as external market pressure, internal business challenges and the impact of the three-year postponement of the epidemic, the company adhered to the main business of finance, served the real economy, strengthened the insurance protection function, continued to implement the 16-character business policy of "focusing on the main business, increasing revenue and reducing expenditure, optimizing structure, improving quality and efficiency", deepened the development of the two-wheel parallel and technology-driven strategy of "comprehensive finance + medical care for the elderly", continuously consolidated its comprehensive financial advantages, adhered to customer demand-oriented, and strived to promote high-quality development.

In 2023, the Group achieved an operating profit attributable to shareholders of the parent company of RMB117.989 billion, a net profit attributable to shareholders of the parent company of RMB85.665 billion, and a basic operating earnings per share of RMB6.66. RMB40.913 billion, with a cash dividend of RMB2.43 per share, representing a year-on-year increase of 0.4%, and the total dividend has maintained growth for 12 consecutive years. The life insurance business regained momentum, with the value of new business of life and health insurance business increasing by 36.2% and the value of new business of agency channel increasing by 40.3% on a comparable basis. As of the end of December 2023, Ping An had 232 million individual customers, 25.3% of customers with four or more contracts within the group, a retention rate of 97.7%, and an average of 2.95 contracts for individual customers, nearly 64% of customers used the services provided by the medical and elderly care ecosystem, and more than 73% of the customers who enjoyed the rights and interests of the medical and elderly care ecosystem covered new business value of life insurance.

Top 10 business highlights of the Group in 2023:

1. The core business operation is stable. In 2023, the company achieved an operating profit attributable to shareholders of the parent company of RMB117.989 billion. Among them, the three core businesses of life and health insurance, property insurance and banking remained stable, with a total operating profit attributable to shareholders of the parent company of RMB140.913 billion.

2. The level of cash dividends has maintained growth for 12 consecutive years. Ping An focuses on shareholder returns, and intends to pay a final dividend of RMB1.50 per cash share for 2023 and RMB2.43 per cash share for the full year, representing a year-on-year increase of 0.4%, and a cash dividend ratio of 37.3% based on operating profit attributable to shareholders of the parent company, representing the 12th consecutive year of growth.

3. The life insurance and health insurance business has developed steadily, the comprehensive strength of channels has been enhanced, and the high-quality development has achieved remarkable results. In 2023, the value of new business in life and health insurance business on a comparable basis increased by 36.2% year-on-year, mainly due to the 89.5% increase in new business value per agent and 40.3% increase in the value of new business in the agent channel, as well as the strong momentum of the bancassurance channel after the reform, with the value of new business increasing by 77.7%. Based on the latest assumptions such as return on investment and risk discount rate, the new business value of life and health insurance business reached 31.08 billion yuan. The 13-month policy continuation rate increased by 2.5 percentage points year-on-year.

4. The income of property insurance business grew steadily and the quality remained good. In 2023, Ping An Property & Casualty's insurance service revenue was RMB313.458 billion, representing a year-on-year increase of 6.5%, with an overall comprehensive ratio of 98.4% after excluding the impact of guarantee insurance, a comprehensive ratio of 97.7% for motor insurance, better than the market average, and a comprehensive ratio of 96.6% for motor insurance excluding the impact of natural disasters.

5. Excellent investment performance of insurance funds. In 2023, in the face of a complex and volatile market environment, Ping An Insurance's capital investment portfolio achieved a comprehensive investment return of 3.6%, an increase of 0.9 percentage points year-on-year, and an average net investment return of 5.2% and an average comprehensive investment return of 5.4% in the past 10 years, exceeding the long-term investment return assumption of embedded value.

6. The bank's business operation remained stable, and the ability to offset risks remained 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 integrated financial model continues to deepen. As of December 31, 2023, Ping An had 232 million individual customers, of which 25.3% held four or more contracts within the group, with a retention rate of 97.7%.

8. The medical pension strategy continues to be implemented, and differentiated advantages empower the main business. As of December 31, 2023, Ping An has achieved 100% cooperation coverage of the top 100 hospitals and tertiary hospitals in China through the integration of suppliers, with a team of about 50,000 internal and external doctors and 230,000 cooperative pharmacies, an increase of nearly 6,000 from the beginning of the year. In 2023, customers who enjoy the rights and interests of the medical and pension ecosystem will cover more than 73% of the new business value of life insurance.

9. Actively fulfill social responsibilities and support the development of the real economy. As of December 31, 2023, Ping An has invested more than RMB8.77 trillion to support the development of the real economy, with a green investment of RMB128.568 billion, a balance of green loans of RMB146.345 billion, and a premium income of RMB37.296 billion in 2023. Since the launch of the "Three Villages Project", Ping An has invested a total of RMB117.882 billion in poverty alleviation and industrial revitalization. In 2023, Ping An maintained its MSCI ESG rating of "A", maintaining the No. 1 rating in the Asia-Pacific region in the category of "Comprehensive Insurance and Brokerage".

10. The brand value continues to deepen. In 2023, the company ranked 33rd in the Fortune Global 500, ranked 1st in the global insurance company, ranked 5th in the global financial company, ranked 9th in the Fortune China 500, ranked 16th in the Forbes Global 2000 listed companies, and ranked 1st in the Brand Finance Global Insurance Brand Value 100 list for seven consecutive years.

The high-quality development of life and health insurance business has achieved remarkable results, and the value of new business increased by 36.2% year-on-year

Ping An Life continued to deepen the "4 channels + 3 products" strategy, comprehensively strengthened channel construction, and improved business quality. In 2023, the value of new business on a comparable basis of Ping An's life and health insurance business increased by 36.2% year-on-year. Based on the latest assumptions such as investment income and risk discount rate, the new business value of life and health insurance business reached 31.08 billion yuan. In 2023, the quality of Ping An Life's business gradually improved, 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 four major channels have achieved remarkable results in business development. In 2023, the value of new business in the agent channel increased by 40.3%, the per capita new business value of agents increased by 89.5%, the per capita income of agents increased by 39.2%, and the proportion of "excellent+" in the new manpower increased by 25.2 percentage points year-on-year. The community grid channel has set up 65 outlets in 51 cities, and the 13-month policy continuation rate of existing customers in the grid promotion cities increased by 5.4 percentage points year-on-year, and the sinking channel continued to promote sales in seven provinces.

We continued to enrich the product system of wealth insurance, pension and health security, and steadily deepened the three core services of medical health, home care and high-end elderly care by relying on the Group's medical and elderly care ecosystem. In terms of "insurance + medical care", Ping An Life's health management has served more than 20 million customers, and about 76% of the new contract customers use health management services, while in terms of "insurance + home care", more than 80,000 customers have obtained home care service qualifications in 54 cities across the country, and the overall customer evaluation is good, and in terms of "insurance + high-end elderly care", Ping An high-end elderly care projects have been launched in four cities, among which Ping An Zhenyi Sanya Experience Center will open in July 2023.

The performance of property insurance and banking remained stable, the performance of insurance capital investment was good, and the comprehensive financial strategy continued to deepen

The revenue of property insurance business grew steadily, and the quality remained good. In 2023, Ping An Property & Casualty's insurance service revenue was RMB313.458 billion, up 6.5% year-on-year, with an overall comprehensive ratio of 98.4% after excluding the impact of guarantee insurance, a comprehensive ratio of 97.7% for motor insurance, better than the market average, and 96.6% after excluding the impact of natural disasters, and the "No. 1 Brand" in China's auto and property insurance by the Ministry of Industry and Information Technology for 13 consecutive years. As the largest car service app in China, the "Ping An Good Car Owner" app has exceeded 200 million registered users and 136 million vehicles tied up as of December 31, 2023. Ping An Property & Casualty's online claims service continues to lead, with a score of 94.52 in the auto insurance service quality index issued by China Banking and Insurance Credit Co., Ltd., ranking among the top in the property insurance industry.

The bank's business operations remained stable and its asset quality was generally 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 ability to offset risks remained good, the assets under management (AUM) of retail customers were RMB4,031.177 billion, an increase of 12.4% from the beginning of the year, and the balance of personal deposits was RMB1,207.618 billion, an increase of 16.7% from the beginning of the year.

The investment performance of insurance funds is good. As of December 31, 2023, the size of the company's insurance fund portfolio exceeded 4.72 trillion yuan, an increase of 9.0% from the beginning of the year. In 2023, Ping An Insurance's capital portfolio achieved a comprehensive investment return of 3.6%, an increase of 0.9 percentage points year-on-year, and in the past 10 years, it achieved an average net investment return of 5.2% and an average comprehensive investment return of 5.4%, exceeding the embedded value long-term investment return assumption.

Ping An adheres to the customer-centric business philosophy, deeply cultivates individual customers, continues to promote a comprehensive financial strategy, and consolidates customer management. Integrated finance has brought Ping An higher operational efficiency, especially in lower customer acquisition costs, lower management and service costs, and higher customer retention rates. As of December 31, 2023, the Group had 232 million individual customers, an increase of 2.2% from the beginning of the year. Among them, 25.3% of customers hold four or more contracts within the group, and the retention rate is 97.7%. The average number of contracts for individual customers is 2.95, and there are more than 88.01 million individual customers who 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". Drawing on more than 10 years of experience in operation and management in the insurance and medical industries, Ping An covers multiple business lines such as finance, medical care, and technology, and builds its own service barriers by empowering individual financial customers, corporate customers, and building a flagship Internet medical platform, seamlessly combining differentiated medical and elderly care services with financial business as a payer, providing the most cost-effective medical and elderly care services on behalf of the payer and integrating the supply side, and forming a unique profit model.

Over the past decade, Ping An has been based in China and has continued to devote itself to the construction of a medical and elderly care ecosystem, and its differentiated advantages have become increasingly prominent, which is reflected in its "online, in-store, and home" service capabilities, extensive coverage of hundreds of medical and health care and elderly care service resources, and access to high-quality self-operated resources, which are key to ensuring service quality. As of December 31, 2023, Ping An has a team of about 50,000 internal and external doctors, more than 36,000 cooperative hospitals, 100% of the top 100 hospitals and tertiary hospitals in China, more than 100,000 cooperative health management institutions, and 230,000 cooperative pharmacies.

At present, Ping An's medical and elderly care ecosystem not only creates independent direct value, but also empowers the main financial business through differentiated "products + services". As of the end of December 2023, nearly 64% of Ping An's 232 million individual customers have also used the services provided by the medical and elderly care ecosystem, with an average of about 3.37 contracts and an average AUM of 55,900 yuan, which are 1.6 times and 3.5 times that of individual customers who do not use the services of the medical and elderly care ecosystem, respectively, and the new business value of life insurance covered by customers who enjoy the rights and interests of the medical and elderly care ecosystem accounts for more than 73%. In 2023, Ping An achieved health insurance premium income of more than RMB140 billion, with more than 56,000 corporate customers and nearly 40 million paying users in the past 12 months.

Scientific and technological innovation empowers the main business to improve quality and efficiency. As of December 31, 2023, Ping An has a first-class team of more than 20,000 technology developers and more than 3,000 scientists, and the Group has filed a total of 51,533 patent applications, ranking first in the world in terms of patent applications in the fields of fintech and healthcare. In 2023, Ping An will intelligently guide customers to self-service renewal of 300.3 billion yuan, a year-on-year increase of 13%; The number of AI agent services was about 2.22 billion, and the loss of intelligent claims interception was 10.82 billion yuan, a year-on-year increase of 16.0%. Ping An operates its technology business through its member companies such as Lufax Holdings, OneConnect, Ping An Health, and Autohome, providing a variety of products and services to users in the ecosystem, with significant synergistic benefits.

Actively practice corporate social responsibility and deepen green finance. As of December 31, 2023, Ping An has invested more than RMB8.77 trillion 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 more than RMB3.9 trillion in risk protection for more than 1,500 key projects across the country, and supported national strategic plans such as the Belt and Road Initiative and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, and Ping An Insurance has invested RMB128.568 billion in green investment, with a balance of green loans1. 46.345 billion yuan, and the original insurance premium income of green insurance in 2023 will be 37.296 billion yuan. Since the launch of the "Three Villages Project", Ping An has invested a total of RMB117.882 billion in poverty alleviation and industrial revitalization.

A financial power has a long way to go. Looking forward to 2024, Ping An will thoroughly implement the spirit of the Central Financial Work Conference, firmly adhere to the people-centered and customer-oriented approach, adhere to the 16-character business policy of "focusing on the main business, increasing revenue and reducing expenditure, optimizing structure, and improving quality and efficiency", continuously strengthen risk management, continuously improve the level of operation, strengthen the ability and breadth of financial services, further promote the "comprehensive finance + medical and pension" service system to a deeper level and high-quality development, and comprehensively answer the questions of "science and technology finance, green finance, inclusive finance, Pension finance and digital finance" to create long-term, stable and sustainable value for customers, employees, shareholders and society, and contribute to the "acceleration of the construction of a financial power".