Ping An Insurance (Group) Company Of China Ltd(601318) (hereinafter referred to as ” Ping An Insurance (Group) Company Of China Ltd(601318) ,” ping an “,” group “or” company “, stock code: stock exchange of Hong Kong 2318, Shanghai Stock Exchange Ping An Insurance (Group) Company Of China Ltd(601318) ) announced the annual results for the year ended December 31, 2021 on March 17.
In the past year, facing the complex and severe external environment and market challenges, Ping An Insurance (Group) Company Of China Ltd(601318) adhering to the brand concept of “professionalism, making life simpler”, continued to deepen the strategic upgrading of “comprehensive finance + medical health”, accelerated the digital transformation of life insurance reform and operation management, effectively improved the ability to serve the real economy and ensure the people’s livelihood, and enhanced the level of high-quality development. This year, Ping An Insurance (Group) Company Of China Ltd(601318) innovated to build “comprehensive finance + HMO managed medical care”, actively laid out “Finance + pension”, “Finance + health” and other industrial ecology, provided professional “financial consultant, family doctor and elderly care housekeeper” services for the public, and let customers enjoy the comprehensive financial, medical and health consumption experience of “worry saving, time saving and money saving”.
Thanks to the synergy and anti risk ability of comprehensive finance, the continuous enhancement of the main business of technology and ecosystem enabled finance, Ping An Insurance (Group) Company Of China Ltd(601318) core competitiveness has been steadily improved, and a steady and warm annual performance answer has been handed over to customers, shareholders and the society. In 2021, the overall performance of the company maintained steady growth, and the operating profit attributable to the shareholders of the parent company was 147961 billion yuan, a year-on-year increase of 6.1%; Operating roe reached 18.9%; Net profit of 121802 billion yuan; The net profit attributable to the shareholders of the parent company was 101618 billion yuan, a year-on-year decrease of 29.0%. Ping An paid attention to shareholder returns and distributed annual dividends to shareholders, with cash per share of RMB 2.38, a year-on-year increase of 8.2%. The company launched a new round of stock repurchase program in August 2021. By the end of December 2021, the company had repurchased about 77.77 million shares, totaling 3.9 billion yuan.
2021 top ten business highlights of the group:
1. The operating profit increased steadily and the return to shareholders continued to improve. In 2021, the company realized an operating profit of 147961 billion yuan attributable to the shareholders of the parent company, with a year-on-year increase of 6.1%; Operating roe reached 18.9%. At the same time, Ping An paid attention to the return of shareholders and distributed annual dividends to shareholders, with cash per share of 2.38 yuan, a year-on-year increase of 8.2%, and continued to improve the cash dividend. According to the A-share repurchase plan approved at the fourth meeting of the 12th board of directors in August 2021, by the end of December 2021, the company had repurchased about 77.77 million A-shares, totaling 3.9 billion yuan.
2. The customer management system is perfect and the fine management effect is good. By the end of December 2021, the number of individual customers had exceeded 227 million; At the same time, the proportion of individual customers holding contracts with multiple subsidiaries increased to 39.3%. In 2021, the comprehensive financial financing scale of group business increased by 26.9% year-on-year.
3. The reform and transformation of life insurance and health insurance business continued to deepen. Ping An Life Insurance implemented the two wheel drive strategy of “channel + product”, continued to deepen reform and promote high-quality business development. The agent channel implements layered and refined operation of the team and promotes digital management. In 2021, the per capita first year premium of agents increased by more than 22% year-on-year, and the per capita production capacity was effectively improved. At the same time, relying on the group’s medical and health ecosystem, Ping an innovated and launched products and services such as “insurance + health management”, “insurance + high-end elderly care” and “insurance + home-based elderly care”, so as to continuously improve the customer service experience.
4. Maintain good quality of property insurance business and actively play the role of “social stabilizer”. In 2021, the comprehensive cost rate of Ping An Property Insurance was optimized by 1.1 percentage points year-on-year to 98.0%; Underwriting profit increased by 145.7% year-on-year to 5.136 billion yuan. Ping An Property Insurance made every effort to deal with major disasters such as severe rainstorms in Henan, and earnestly implemented the call of “full compensation, early compensation and quick compensation”. The total amount of rainstorm compensation in Henan exceeded 3.1 billion yuan.
5. The bank’s business performance increased, the asset quality was stable, and the ability of risk offset was enhanced. In 2021, Ping An Bank Co.Ltd(000001) achieved a net profit of 36.336 billion yuan, an increase of 25.6% year-on-year. By the end of December 2021, Ping An Bank Co.Ltd(000001) NPL ratio was 1.02%, down 0.16 percentage points from the beginning of the year; The provision coverage rate was 288.42%, an increase of 87.02 percentage points over the beginning of the year.
6. The strategy of medical and health ecosystem was upgraded, the industrial layout was deepened and preliminary results were achieved. Ping An launched the “HMO + family doctor + o2o” group managed medical model to open up the closed loop of supply, demand and payment, and provide customers with “worry-free, time-saving and money-saving” medical and health services. By the end of December 2021, Ping An health had accumulated nearly 423 million registered users; In 2021, the cumulative number of paying users increased rapidly to more than 38 million; By the end of December 2021, Ping An smart medical has served 187 cities, empowered more than 45000 medical institutions and benefited about 1.32 million doctors; In the future, Ping An will further deepen the strategic layout of the medical and health industry by closely combining the high-quality resources under the medical department of Peking University with Ping An’s comprehensive finance and medical technology.
7. Technology business continued to grow. Ping An continued to explore innovative business models and accelerated business expansion. In 2021, the total revenue of science and technology business reached 99.272 billion yuan, a year-on-year increase of 9.8%.
8. The core technical capability continues to deepen. By the end of December 2021, the number of science and technology patent applications of the company had increased by 7008 compared with the beginning of the year, reaching 38420 in total, ranking in the forefront of international financial institutions. Ping An uses artificial intelligence technology to enable financial business. In 2021, the sales scale of Ping an AI agent driven products was about 275.8 billion yuan, with a year-on-year increase of 66%; Ping an AI seats cover 2158 scenes; The annual AI agent service volume was about 2.07 billion times, accounting for 84% of the total customer service; The 30 day return rate of AI collection is 77%.
9. Comprehensively deepen green finance and promote sustainable development as a new engine of economic growth. As of December 31, 2021, the scale of green investment and financing of Ping An was 224580 billion yuan, and the scale of green banking business was 89.813 billion yuan; In 2021, the premium income of original insurance of environmental sustainable insurance was 44.569 billion yuan. Meanwhile, Ping An continued to promote the “Three Village Project”. By the end of December 2021, it had provided 41.85 billion yuan of assistance funds for poverty alleviation and industrial revitalization; Won the 11th “China Charity Award”, the third “capital Charity Award” and other honors.
10. The brand value continues to improve and ranks first in the global financial industry. In 2021, the company ranked 16th in the Fortune Global 500, up 5 places from last year, and the global financial enterprise ranked second; Forbes Global Top 2000 listed companies rose from 7th to 6th; Brandztm ranks 49th in the top 100 global brand values, ranks first in the global banking and insurance institutions for the first time, and ranks first in the global insurance brand for six times.
customer operation: deepen the comprehensive financial strategy and steadily increase the performance of individual business and group business
Adhere to the people-centered and customer demand-oriented business and service philosophy, deeply cultivate individual customers, cultivate group customers, continue to promote the comprehensive financial strategy and consolidate the customer base management.
Thanks to the comprehensive financial model of “one customer, multiple products and one-stop service” and the continuous promotion of “Finance + ecology” strategy, the operating ability of personal business has been continuously improved. In 2021, the operating profit of the group’s personal business increased by 5.7% year-on-year to 129996 billion yuan, accounting for 87.9% of the group’s operating profit attributable to the shareholders of the parent company. By the end of December 2021, the number of individual customers of the group had exceeded 227 million, an increase of 4.1% over the beginning of the year; 32.4 million new customers were added throughout the year, of which 35.8% came from the group’s Internet users.
With the deepening of comprehensive financial strategy, the degree of cross penetration of customers has been continuously improved. In 2021, nearly 33.01 million customers migrated between the group’s core financial companies. By the end of December 2021, 89.26 million individual customers held contracts with multiple subsidiaries at the same time, accounting for 39.3% of the overall individual customers; The average number of customer contracts of the group was 2.81, an increase of 1.8% over the beginning of the year.
Focusing on the hierarchical operation of strategic customers, small, medium-sized and Micro customers and customers of financial institutions, and focusing on the “1 + n” comprehensive financial service model of one customer and N products, the group business has grown steadily. The scale of comprehensive financial premium of corporate channels increased by 19.9% year-on-year, and the scale of comprehensive financial financing increased by 26.9% year-on-year.
comprehensive finance: the reform of life insurance continued to deepen, the quality of property insurance business remained good, and the banking and other asset management business grew steadily
Deepen the reform and transformation of life insurance and health insurance business and promote the high-quality development of business. In 2021, the operating profit of life insurance and health insurance business reached 97.075 billion yuan, a year-on-year increase of 3.6%; The operating roe was 32.3%. The company continued to deepen the reform of “channel + product”, the agent channel firmly targeted the high-quality transformation of the “three high” team, and the structure was gradually optimized. In 2021, the annual per capita new business value of agent channel was 39031 yuan, and the per capita first year premium increased by more than 22% year-on-year. In 2021, the scale of outstanding teams was stable, and the per capita new business value increased by more than 20%. The three innovation channels, community grid, bank talents and sinking channels, develop in parallel. In terms of products, relying on the group’s medical and health ecosystem, the group provides life-cycle health and elderly care services through three-tier products of “insurance + health management”, “insurance + high-end elderly care” and “insurance + home-based elderly care”, so as to create differentiated competitive advantages, drive life insurance to win customers and stick customers, and make customers’ life more wonderful and elderly care dignified. Nearly 30% of the new life insurance customers come from the transformation of health care services. During the period of China’s economic reform, the business value of vid dropped to 37.8-9.8 billion yuan, and the number of new agents decreased year-on-year; Without considering the impact of hypothetical adjustment, the value of new business decreased by 18.6% year-on-year.
The quality of property insurance business remained good, and the premium income of original automobile insurance gradually resumed growth. In 2021, Ping An Property Insurance continued to optimize the customer base structure and strengthen risk screening. The overall comprehensive cost rate was optimized by 1.1 percentage points to 98.0% year-on-year, and the underwriting profit increased by 145.7% to 5.136 billion yuan year-on-year. The premium income of original auto insurance increased by 8.7% year-on-year in the fourth quarter. As the largest car service app in China, the “safe and good car owner” app had more than 150 million registered users and more than 95 million bound vehicles by the end of December 2021; In December, the number of active users exceeded 37 million. Online claim settlement services continued to take the lead, and the utilization rate of “one click claim settlement” function of Ping An Property Insurance family car reached 92.2%.
The bank deepened its transformation, stimulated strong momentum and steadily increased its operating performance. In 2021, the operating revenue was 169383 billion yuan, a year-on-year increase of 10.3%; The net profit was 36.336 billion yuan, a year-on-year increase of 25.6% Ping An Bank Co.Ltd(000001) asset quality remained stable and the ability of risk offset was continuously enhanced. By the end of December 2021, the non-performing loan ratio was 1.02%, down 0.16 percentage points from the beginning of the year; The provision coverage rate was 288.42%, an increase of 87.02 percentage points over the beginning of the year. Retail transformation continues to make breakthroughs and develop, creating a new “five in one” model with open banks, AI banks, remote banks, offline banks and integrated banks interconnected and organically integrated. In 2021, the operating revenue of retail business increased by 8.4% year-on-year, and the net profit of retail business increased by 17.3% year-on-year; Retail customer assets under management (AUM) amounted to 3182634 billion yuan, an increase of 21.3% over the beginning of the year.
As of December 31, 2021, the size of the company’s insurance fund portfolio was nearly 3.92 trillion yuan, an increase of 4.7% over the beginning of the year. Affected by the fluctuation of capital market, the decline of market interest rate and the increase of impairment provision, in 2021, the net investment rate of return was 4.6% and the total investment rate of return was 4.0%. From 2012 to 2021, the 10-year average return on net investment was 5.3%, and the 10-year average return on total investment was 5.3%, both higher than the embedded value long-term return on investment assumption (5%), which continued to lead the industry. In 2021, the operating profit of securities business and other asset management businesses achieved good growth.
innovative business: technology business continues to grow, medical and health ecosystem strategy is upgraded, and “HMO + family doctor + o2o” mode is explored
In 2021, Ping An deepened the construction of “Finance + technology” and “Finance + ecology” and continued to explore innovative business models. The total revenue of science and technology business reached 99.272 billion yuan, a year-on-year increase of 9.8%; The operating profit attributable to the parent company was 7.948 billion yuan, a year-on-year increase of 19.5%.
Continue to increase R & D efforts and deepen core technical capabilities. By the end of December 2021, the number of science and technology patent applications of the company had increased by 7008 compared with the beginning of the year, reaching 38420 in total, ranking in the forefront of international financial institutions. The number of AI patent applications jumped from the third in the world to the first, and the number of financial technology and digital medical patent applications also ranked first in the world.
Widely apply leading technology to the main financial industry, and use technology to empower finance to promote sales, improve efficiency and control risks. By the end of December 2021, Ping an AI agent had covered 2158 scenes, with an AI agent service volume of about 2.07 billion times, covering 84% of Ping An’s total customer service. The sales scale of AI agent driven products was about 275.8 billion yuan, accounting for 29.3% of the overall sales scale of agent products.
Ping An continues to upgrade its medical and health ecosystem strategy and build a “Chinese version of United Health”. Innovate and launch the group managed medical model with “HMO + family doctor + o2o” as the core, open up the closed loop of supply, demand and payment, and provide customers with “worry-saving, time-saving and money-saving” medical and health services. The synergy between the medical and health ecosystem and the main financial industry has gradually emerged. Nearly 63% of Ping An’s more than 227 million individual customers use the services provided by the medical and health ecosystem at the same time, with an average number of contracts per customer of 3.3 and an average AUM of 40000 yuan, respectively 1.6 times and 3.0 times that of individual customers who do not use the medical and health ecosystem services. By the end of December 2021, Ping An smart medical has served 187 cities and more than 45000 medical institutions, benefiting about 1.32 million doctors and 10.48 million patients with chronic diseases. Ping An’s own doctor team has more than 40000 contracted doctors with more than 10000 cooperative hospitals, covering 99% of the top three hospitals and realizing the full coverage of the top 100 hospitals; There are 96000 cooperative health management institutions and 202000 cooperative pharmacies.
Ping An health, as an important part of Ping An medical and health ecosystem, takes the member’s exclusive family doctor as the entrance, covering five medical and health service scenarios such as health management, sub-health management, disease management, chronic disease management and pension management, so as to create a Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated “medical + health” service platform.
As of December 31, 2021, the cumulative number of registered users of Ping An health was nearly 423 million; In 2021, the cumulative number of paying users increased rapidly to more than 38 million. In 2021, the operating revenue increased to 7.334 billion yuan.
Lufax holdings actively served small and micro enterprises, continued to promote strategic transformation, and maintained steady business growth. In 2021, the operating revenue reached 61.835 billion yuan, a year-on-year increase of 18.8%; The net profit was 16.804 billion yuan, a year-on-year increase of 36.0%. The balance of managed loans increased by 21.3% over the beginning of the year, and the overdue rate of more than 30 days was 2.2%.
Onepay promotes the digital transformation of financial service ecology and continues to improve business performance. In 2021, the operating revenue increased by 24.8% year-on-year to 4.132 billion yuan; The number of high-quality customers increased by 202 to 796 year-on-year, of which the number of million cooperative customers increased by 44 to 212 year-on-year.
Auto Home promoted the upgrading of ecological strategy, actively created a new business pattern, and achieved an operating revenue of 7.237 billion yuan and a net profit of 2.582 billion yuan. Thanks to the transformation of marketing methods of automobile manufacturers and dealers and the continuous digital transformation, the revenue of online marketing and other businesses increased by 11.6% year-on-year, accounting for 30.9%. Autohome was listed on the stock exchange for the second time in March 2021 and was approved to be included in the Hang Seng Composite Index in early June 2021.
In 2021, Ping An Insurance (Group) Company Of China Ltd(601318) actively practiced corporate social responsibility and contributed to social sustainable development. By the end of December 2021, more than 5.9 trillion yuan had been invested to fully support the development of the real economy; Comprehensively deepen the work of green finance. The scale of green investment and financing reached 224580 billion yuan, the scale of green banking business reached 89.813 billion yuan, and the premium income of original insurance of environmental sustainable insurance reached 44.569 billion yuan in 2021; By the end of December 2021, a total of 41.85 billion yuan had been provided for poverty alleviation and industrial revitalization.
Looking forward to 2022, Ma Mingzhe, chairman of Ping An Insurance (Group) Company Of China Ltd(601318) board of directors, said that the company will continue to practice its original intention of “taking people as the center and national rejuvenation as its own responsibility”, firmly promote the strategic vision of “international leading comprehensive financial and health service provider”, comprehensively deepen the high-quality development centered on life insurance reform and digital empowerment, internally promote the reconstruction of new value culture and strengthen core competitiveness, Actively fulfill corporate citizenship responsibilities externally, create steady and growing value for customers, shareholders and society, and make unremitting efforts to realize the people’s yearning for a better life and the great rejuvenation of the Chinese nation.
