China’s second-largest life insurer, Ping An
pulled out all the stops in 2011 to produce a net profit
attributable to shareholders of CNY9.475bn ($1.5bn).
This represented an increase of 12.5% compared
with its result in 2010.
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With its performance last year, Ping An
trounced its larger rival, China Life, which has reported a 45.5%
slump in net attributable profit for 2011 to CNY18.33bn.
China Life also battled on the new business
front with its premium income in 2011 rising a mere 0.1% to
CNY318bn.
This was against the background of an increase
of 6.8% in new business in China’s life segment as reported by the
country’s official news agency, Xinhua.
Making Ping An’s performance in 2011 more
commendable is that it includes a charge of CNY1.95bn related to
the consolidation of its 52.4% stake in Shenzhen Development
Bank.
Excluding this non-cash charge, Ping An’s net
attributable profit in 2011 was up 23.8%.
Ping An also performed well in terms of
premium income growth in 2011. In the life insurance segment, the
insurer lifted its new premium income by 13.9% compared with 2010
to CNY187.256bn.
It solid showing enabled Ping An to increase
its market share from 15.1% in 2010 to 16.4% in 2011.
Also highlighted by Ping An in its results
release was its performance in the more profitable individual life
insurance sector where it increased its new premium income by 22.9%
compared with 2010 to CNY159.99bn.
Ping An attributed much of its success in
growing new business to a focus on enhancing its distribution
channels.
Of particular note was a significant increase
in the use of its Mobile Integrated Terminal (MIT) which enables a
new sale to be completed in a single meeting with a customer.
During 2011 Ping An reported that 400,000 of
its 487,000 agents used MIT to complete sales to over 3.5m
customers.
