Ping An Profit Rises as Market Recovery Bolsters Returns

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Operating Profit,Business Value,Ping An Insurance (Group) Co.

(Bloomberg) -- Ping An Insurance (Group) Co. said profit rose nearly 7% in the first half, after a stock-market recovery helped bolster investment returns at...

-- Ping An Insurance Co. said profit rose nearly 7% in the first half, after a stock-market recovery helped bolster investment returns at China’s second-largest insurer by market value. The shares jumped.Net income climbed to 74.6 billion yuan in the six months ended June 30, from 69.8 billion yuan a year earlier, the Shenzhen-based company said in a filing to the Hong Kong stock exchange Thursday. That reversed a 4.3% profit decline in the first quarter.

“We’re fairly confident in operating profit maintaining stable and healthy momentum in the second half,” he said in an interview, declining to provide specifics. New business value, which gauges the profitability of new life policies sold, grew 11% in the first half, slowing from a 21% gain in the first quarter. A three-year reform at the main life unit lifted agent productivity.Regulators’ recent move to lower assumed interest rates used in pricing life policies will have a “positive” impact on the business as it will reduce liability costs, Guo told a briefing in Hong Kong.

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