Ping An's Q1 operating profit increased by 2.4% year-on-year, with a significant rise of 34.9% in the value of new life insurance business | Financial Report Insights

Despite short-term investment fluctuations and one-off major projects dragging down net profit by 26.4% year-on-year, Ping An Group's operating performance remains stable, with a 2.4% year-on-year increase in Q1 attributable operating profit. The life insurance and health insurance businesses performed well, with new business value growing by 34.9%. Significant progress has been made in technology empowerment, with AI customer service handling 450 million requests, covering 80% of customer service needs.

On April 25, Ping An released its Q1 2025 report:

• Revenue: Q1 revenue was 256.6 billion yuan, a year-on-year decrease of 7%.
• Operating Profit: Q1 attributable operating profit was 37.907 billion yuan, a year-on-year increase of 2.4%. Among them, the operating profit of the life insurance and health insurance business attributable to the parent company shareholders was 26.864 billion yuan, a year-on-year increase of 5.0%.
• Net Profit: Q1 attributable net profit was 27.016 billion yuan, a year-on-year decrease of 26.4%.
• Basic Earnings per Share: Q1 basic earnings per share reached 2.16 yuan, a year-on-year increase of 3.3%.
• Basic Earnings: Q1 basic earnings were 1.54 yuan per share, a year-on-year decline of 25.6%.

New Business Value of Life Insurance Business Increased by 34.9% Year-on-Year

Ping An stated that in Q1 2025, the Chinese economy started smoothly, continuing a recovery trend, but the external environment has become more complex and severe, with insufficient domestic demand growth momentum. However, the company remains committed to its financial core business, promoting high-quality development, achieving a solid overall operational foundation, and maintaining stable performance.

In terms of profitability, Ping An Group's Q1 attributable operating profit increased by 2.4% year-on-year, and basic earnings per share grew by 3.3% year-on-year. However, affected by short-term investment fluctuations and one-off projects, attributable net profit decreased by 26.4% year-on-year.

Among the company's major businesses, the life insurance and health insurance business stands out as the biggest highlight.

Life Insurance and Health Insurance Business: This business achieved an attributable operating profit of 26.864 billion yuan, a year-on-year increase of 5.0%, with new business value soaring by 34.9%, and the new business value rate rising to 32%, reflecting a significant improvement in the quality of Ping An's life insurance business.

Property Insurance Business: The property insurance business had good revenue but declining profits, with Ping An Property Insurance service revenue at 81.153 billion yuan, and the comprehensive cost ratio optimized by 3.0 percentage points year-on-year. However, the net profit of the property insurance business decreased by 16.5% year-on-year to 3.251 billion yuan.

Moreover, Ping An Life Insurance continues to deepen its "4 channels + 3 products" strategy, achieving fruitful results through multi-channel development:

First, the new business value of the agent channel increased by 11.5% year-on-year, with per capita new business value growing by 14.0% year-on-year.

Second, the new business value of the bancassurance channel saw a significant year-on-year increase of 170.8%.

Third, the new business value of the community financial service channel increased by 171.3% year-on-year This strategy has effectively promoted the high-quality development of Ping An Life Insurance's business, reflecting the company's success in channel transformation. As of the end of March 2025, the number of individual life insurance agents for Ping An Life Insurance was 338,000.

In addition, Ping An adheres to the financial solution of "one customer, multiple accounts, multiple products, one-stop service," continuously deepening customer management:

The number of individual customers is nearly 245 million, an increase of 1.0% compared to the beginning of the year;

The average number of contracts held per customer is 2.93, an increase of 0.3% compared to the beginning of the year;

The retention rate of customers holding four or more contracts within the group is as high as 98.0%, which is 11.9 percentage points higher than that of customers with only one contract;

In the first quarter of 2025, 8.64 million new customers were added, a year-on-year increase of 20.0%.

The company's medical and elderly care strategy has further deepened.

Ping An continues to promote its medical and elderly care strategy, empowering its financial main business through differentiated "products + services," achieving a 100% cooperation coverage rate with top 100 hospitals and tertiary hospitals;

The number of cooperating pharmacies is nearly 239,000, with over 3,500 new ones added since the beginning of the year;

Home elderly care services have covered 75 cities nationwide, with over 190,000 customers qualifying for services;

High-quality health and wellness community projects have been laid out in five cities.

The empowering effect of the medical and elderly care ecosystem on the financial main business is significant. Individual customers enjoying the services of the medical and elderly care ecosystem have an average of about 3.37 contracts and an average AUM of 61,200 yuan, which are 1.6 times and 4.0 times higher than those who do not enjoy such service rights, respectively.

Ping An Bank Q1 Revenue Down 13.1%, Net Profit Down 5.6%

Affected by market changes and business structure optimization, Ping An Bank achieved a revenue of 33.709 billion yuan in the first quarter, a year-on-year decrease of 13.1%, and a net profit of 14.096 billion yuan, a year-on-year decrease of 5.6%.

The good news is that costs have decreased. Ping An Bank has driven cost reduction and efficiency improvement through digital transformation, with business and management expenses down 13.2% year-on-year, and credit and other asset impairment losses down 20.9% year-on-year.

In terms of asset quality, Ping An Bank's non-performing loan ratio remains at 1.06%, unchanged from the beginning of the year. The provision coverage ratio is 236.53%. The core tier one capital adequacy ratio is 9.41%, an increase of 0.29 percentage points from the beginning of the year, indicating its solid risk resistance capability.

Overall Investment Scale Reaches 5.92 Trillion, Investment Income Up 1.3% Year-on-Year

In terms of investment, Ping An Insurance's investment portfolio achieved an annualized comprehensive investment return of 1.3%, an increase of 0.2 percentage points year-on-year. The scale of the insurance funds investment portfolio exceeded 5.92 trillion yuan, a growth of 3.3% compared to the beginning of the year.

Ping An actively responds to interest rate decline risks, proactively allocating interest rate bonds at high points, increasing allocations in value and technology growth equity investments, and enhancing the layout of high-quality alternative assets, actively investing in the real economy to lay a foundation for long-term investment returns.

Technology Empowers Business Transformation

Ping An continues to increase its investment in technology, building a "953" moat (9 major databases, 5 major laboratories, 3 major technology companies), promoting the deep integration of large models with business scenarios As of the end of March 2025, Ping An has won a total of 45 championships in domestic and international artificial intelligence competitions, with the number of patent applications reaching 55,435, ranking among the top international financial institutions.

The effects of technology empowerment are significant.

AI service volume is approximately 450 million times, covering 80% of Ping An's total customer service volume;

93% of life insurance policies achieve second-level underwriting, with the proportion of life insurance policies with instant claims reaching 56%;

Ping An Property & Casualty's intelligent anti-fraud claims interception reduced losses by 3.42 billion yuan, a year-on-year increase of 14.0%