PING AN

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中国平安2025年度业绩发布会

Key Takeaways (AI-Generated)

Financial Performance

- Revenue grew 2.1% to 1,050.5 billion yuan with attributable operating profit achieving double-digit growth of 10.3%

- Adjusted net profit grew 22.5%, net assets reached over one trillion with 7.7% growth

- Comprehensive investment yield (CII) achieved 6.3%, the best level in five years

- Life insurance new business value (NBV) reached 29.3%, marking third consecutive year of double-digit growth

Business Highlights

- NBV margin increased 5.8% to 28.5%, leading industry levels with continuously improving policy persistency rates

- Multi-channel approach with non-individual channels accounting for 34% in 2025, bancassurance NBV growing 138%

- Service-type customers reached 158 million, up 4%, with over 90 million monthly active users

- New energy vehicle insurance grew 39% in 2025 with one in four new energy vehicles as customers

Financial Guidance

- Management believes they can continue positive operating profit growth trend in 2026

- Strong 2026 opening business and new policy trends expected with excellent Q1 results anticipated

- 2026 designated as service innovation year with focus on high-value growth and resilient development

Opportunities

- Market expansion supporting real economy with current balance approaching 10 trillion, deploying in new industries

- Product innovation integrating 700 million internet users across dozen company APPs into comprehensive platform

- Strategic partnerships investing in healthcare, operating six hospitals plus partnerships with 3,000+ Grade A hospitals

- AI enabling operational efficiency with credit card issuance costs 50%+ lower than internet platforms

Risks

- Market competition in financial markets entering homogenized, intensely competitive times requiring differentiated advantages

- Economic fluctuations from recent capital market volatility and geopolitical situations affecting stock performance

Full Transcript (AI-Generated)

Operator

Good morning everyone, thank you media friends for attending. Welcome to China Ping An's 2025 annual results announcement. I am Sheng Ruisheng, Group Board Secretary. Today's conference is jointly hosted by myself and our International PR Director Lin Jianwei from the Hong Kong venue.

Lin Jianwei

Let me introduce the management attending today's conference. In Hong Kong, we have Chairman Ma Mingzhe and Co-CEO Guo Xiaotao. In Shanghai, we have General Manager and Co-CEO Xie Yonglin and Deputy General Manager and CFO Fu Xin.

Sheng Ruisheng

Today's conference will first feature our Deputy General Manager introducing our 2025 performance overview, followed by Q&A from management at both venues.

Fu Xin

Good morning everyone, welcome to Ping An's 2025 annual results conference. Thank you for your continued support. Let me report on our 2025 annual results performance.

Please turn to page 5. In 2025, a year of both opportunities and challenges, we delivered high-quality growth results. Key data shows revenue growth of 2.1% reaching 1,050.5 billion, attributable operating profit achieving double-digit growth of 10.3%.

Adjusted net profit grew 22.5%, net assets reached over one trillion with 7.7% growth. Based on this solid balance sheet foundation, we propose full-year dividends of 2.7 yuan per share, up 5.9%.

Notably, our investment performance achieved comprehensive investment yield (CII) of 6.3%, the best level in five years and very competitive among insurance peers.

Our life insurance new business value reached 29.3%, marking the third consecutive year of double-digit growth. This growth level establishes a solid foundation for future business development and steady profit release.

Our P&C insurance combined ratio reached 96.8%, the best level in five years, related to our continuous application of AI, technology, and big data in underwriting and claims cost control.

Looking at operating profit growth trends, 2025's 10.3% double-digit growth gives us confidence in future sustainable growth. We believe we can continue this positive trend in 2026.

Examining our profit structure, life and health insurance business grew 2.9% year-on-year, property insurance achieved strong double-digit growth, especially underwriting profit. Our other asset management business significantly reduced losses by 8.1 billion, a 70% improvement year-on-year.

Due to our excellent credit risk management and provisions, I believe the company's balance sheet will become increasingly solid.

Regarding net profit, our adjusted net profit reached 22.5%, which is excellent. Although affected by one-time items including Good Doctor's listing in January 2025 and Autohome's disposal, these help us focus more on core business development.

I'd like to highlight our accounting classification - we have over 90 billion in OCI equity gains not included in current profit but significantly strengthening our balance sheet for future sustainable profit release and steady dividends.

Our net assets grew 4.7% exceeding one trillion. Our solvency ratio exceeds regulatory requirements by more than double, creating an excellent safety cushion. This benefits from our Asset-Liability Committee's effective coordination of products, liabilities, and asset allocation in the low interest rate environment.

Regarding dividends, we propose distributing 48.9 billion in dividends, up 5.9% year-on-year. Over the past consecutive years, our dividends have continuously grown. In the past decade, cumulative dividends exceeded 370 billion.

Let me share five key operational highlights. First, NBV has achieved three consecutive years of double-digit growth, reaching 29.3%. This results from our deep life insurance product and channel reforms in recent years.

Our NBV margin increased 5.8% to 28.5%, leading industry levels and continuously improving. Our policy persistency rates at 13 months are also continuously optimizing.

Second, Ping An's distinctive multi-channel approach. We have individual agents, bancassurance, and community finance channels. Non-individual channels now account for 34% in 2025, with bancassurance NBV growing 138% since restarting two years ago.

Our community finance channel, with 40,000 specialists, focuses on three key areas: policy renewals achieving ten-year best persistency rates, cross-selling financial products reaching 200 million customers, and life insurance upselling achieving industry-leading conversion rates.

Third, our bancassurance channel shows leap-forward NBV growth. After restarting non-Ping An Bank bancassurance in 2023, we've achieved very high growth rates, leading the industry.

Our bancassurance NBV margin reached 28.8%, far exceeding industry averages and 8 percentage points higher than the second-place competitor. We've established strong margin protection and assessment systems.

For Ping An Bank bancassurance, we achieve several "highs": high productivity with per-person productivity ranking industry first, exceeding top foreign insurers by ten times; high network productivity; high growth; and high value creation.

Fourth, our P&C insurance shows steady premium growth over five years with excellent quality. Our combined ratio reached five-year best levels. For auto insurance, our CR of 95%+ leads the industry and represents our recent best performance.

For new energy vehicle insurance, we've grown 39% in 2025. In the entire market, one in four new energy vehicles is our customer. Our market share continues rising, and uniquely, our new energy auto insurance CR is below 100% - we're profitable.

Our new energy vehicle customers average 2.5 years younger than traditional vehicle owners, establishing a good foundation for high-growth, high-value customer structure.

Fifth, our investment performance. Despite market volatility, our 2025 CII reached 6.3%, the highest in five years. Looking at ten-year average returns, we exceed actuarial assumptions at nearly 5%, providing excellent foundation for stable profit release.

Our investable assets increased 13.2% to nearly 6.5 trillion. 73% is in fixed income products, providing very stable returns, especially our accumulated long-duration, high-yield bonds.

We have 1.28 trillion in equity investments, with 57% in fair value OCI (not reflected in current profit but strengthening balance sheet) representing over 90 billion unrealized gains, and 43% in TPL capturing high-growth stock opportunities.

Our high-dividend, low-volatility OCI stocks serve as our "ballast stones," providing stable returns, sustainable long-term value release, and steady income like fixed income in low interest rate environments.

In summary, our key highlights include: strong NBV with three consecutive years of double-digit growth; unique multi-channel life insurance operations; bancassurance as high-growth engine; P&C insurance with 16 consecutive years of quality excellence; and industry-leading investment capabilities helping insurance companies weather volatility and cross cycles.

Sheng Ruisheng

Thank you, General Manager Fu. Now we'll begin the Q&A session, alternating between Shanghai and Hong Kong venues. Please state your media organization and name before asking up to two questions. Let's start with Shanghai venue.

Hu Ziyi (CCTV Financial)

Hello, I'm from CCTV Financial. I have two questions. First, regarding performance, we see adjusted net profit exceeded 140 billion yuan with over 20% growth. How does management evaluate this performance? Second, regarding capital markets with recent volatility, what changes has Ping An made to equity investment strategy, and how is gold allocated given its recent strong performance?

Fu Xin

Thank you for your attention to Ping An's performance. I'll use several keywords to evaluate our results, which we also reported to the board. First is "comprehensive improvement" - all our indicators show steady, sustainable growth whether operating profit exceeding 10% growth, NBV double-digit growth, or P&C COR performance.

Second is "high-value growth" - we focus on value enhancement, not just scale. Our key value indicators like NBV margin continuously improving, P&C COR excellence, and stable investment yields creating new highs demonstrate sustainable, high-quality growth.

Third is "strategic deepening" - our comprehensive finance and healthcare-elderly care strategies show customer recognition with growing customer numbers and optimizing structure. Our service-type customers reached 158 million, up 4%, showing customer recognition of our service quality and willingness to pay for services.

Fourth is "service innovation" - 2026 is designated as our service innovation year by Chairman Ma, CEO Xie, and CEO Guo. Our active customers exceed 90 million across our APP matrix, far exceeding financial industry levels.

Guo Xiaotao

Regarding investment, Ping An Group represents long-term, patient capital. Short-term volatility is less important than our ability to cross cycles and provide sustainable returns for customers and shareholders.

Our investment philosophy follows five matches: duration matching, cost matching, product matching, economic cycle matching, and regulatory requirement matching. These guide our asset allocation across fixed income, equity, and other investments.

This year, despite uncertainties, we believe capital markets will be positive overall. Our investment team has accumulated extensive cross-cycle experience providing stable, sustainable returns.

Our core investment approach is "seeking certainty amid uncertainty." As long-term patient capital, we align with national economic development directions: new productive forces, infrastructure development, healthcare-elderly care, high dividends, financial strength, and Healthy China initiatives.

Regarding gold, it's an important asset class in our allocation. We began actively allocating gold from early last year, achieving expected investment returns. We'll continue monitoring this asset class as part of our strategic allocation.

Reporter (Ming Pao, Hong Kong)

Hello, I'd like to ask about AI capabilities and applications, especially for customers and Hong Kong business. Also, what are your AI capex figures for last year and this year's budget? Additionally, NBV growth was stronger in first three quarters but slowed in Q4 - what are the reasons and how is the 2026 opening performance?

Guo Xiaotao

AI is a global technology trend, and for Ping An, technology leadership is a strategic priority. AI isn't optional - it's essential. We consistently invest in technology and AI.

A major change this year is integrating our 700 million internet users across dozen company APPs into one comprehensive platform - "comprehensive finance, nine-in-one integration." This achieves traffic integration, service integration, and data integration.

With 700 million registered users and over 90 million monthly active users, we lead financial industry entrance positions. This allows customers to access all our healthcare, elderly care, and comprehensive financial services from any APP.

AI enables not just consultation but "one-sentence service" - customers can handle claims, medical consultations, loans, and emergency services with simple voice commands through our AI assistants.

Our APP matrix includes global emergency rescue functionality with SOS buttons providing 24/7 assistance whether domestic or international, indoor or outdoor emergencies, from lost passports abroad to elderly falls at home detected by millimeter-wave radar.

These services build on our technology and AI foundation, combining open-source large model capabilities with our rich financial, healthcare, and elderly care data to solve real customer problems across scenarios.

Business results are significant - credit card issuance costs within our APP matrix are 50%+ lower than internet platform costs, demonstrating technology investment benefits in cost savings and customer experience improvement.

Fu Xin

Regarding NBV, Q4 versus first three quarters mainly reflects business rhythm and demand timing. Due to regulatory predetermined rate declines, customer purchasing power released more in Q1-Q3 2025, similar across the industry.

Second, we made prudent assumption adjustments during year-end reviews, slightly impacting NBV but providing more conservative space for future development.

Looking at 2026 opening business and new policy trends, they're very strong. We'll report Q1 results in April, and I believe you'll see excellent 2026 opening performance and full-year NBV prospects.

He Kui (Shanghai Securities News)

Congratulations on excellent 2025 results. With the recent Two Sessions and 15th Five-Year Plan release, how will management capitalize on development opportunities and what are your strategic layouts? Also, why did comprehensive finance disclosure dimensions change significantly this year?

Xie Yonglin

The 15th Five-Year Plan first includes "financial powerhouse" in planning, providing fundamental guidance for financial industry development. The plan's "investment in things and people" closely aligns with Ping An's comprehensive finance plus healthcare-elderly care strategy.

For "investment in things," we support real economy through comprehensive financial advantages via investment banking, commercial banking, and insurance investment, providing direct and indirect financing. Our current balance approaches 10 trillion.

As patient and long-term capital, we actively deploy in six new pillar industries and six future industries supporting China's new productive forces development, covering GPU, robotics, next-generation semiconductors, and brain-computer interfaces.

For "investment in people," Ping An's personal comprehensive finance is distinctive. We enhance life insurance, P&C insurance, and retail banking using comprehensive financial methods centered on people.

Our healthcare-elderly care strategy meets people's better life needs, practicing people-centered development. We invest in Peking University Healthcare, operating six hospitals plus partnerships with over 3,000 Grade A hospitals and 100,000+ health management institutions.

China's insurance-plus-service innovation fully integrates financial products with healthcare-elderly care services, practicing Healthy China strategic requirements as our strategic pillar.

Fu Xin

Regarding comprehensive finance disclosure framework changes, Ping An's comprehensive finance core is customer management. Our disclosure starts from customer needs and management.

We've always had three numbers: customer count, contracts, and products. This year, we categorize into four product types: protection, credit, assets, and importantly, services.

Protection products are Ping An's traditional strength. Asset products meet growing middle-class wealth management needs. Credit products involve actively cleaning low-quality, high-risk credit while raising customer quality.

Service-type customers reached 158 million, up 4%, showing customer recognition beyond products to our service quality and product-plus-service model. Our disclosure aims to truly start from customer growth, needs, and full lifecycle services required.

Reporter (Hong Kong Sing Pao)

Operating profit grew 10.8% but dividends only 6.8%, not matching profit growth. What's the consideration for reserving capital and future usage? Also, regarding agents declining while NBV and bancassurance performing well, what are expectations for agent NBV and bancassurance NBV contributions?

Fu Xin

Regarding operating profit and capital, our comprehensive investment yield reached 6.3% while our operating profit investment yield assumption is only 4% - a long-term sustainable assumption. As insurance companies operate across cycles, we want sustainable, high-quality, resilient growth.

For capital, Chairman Ma teaches us to cherish capital and every shareholder dollar. We have complete capital planning systems from allocation to measurement to investment, all within frameworks ensuring capital combines with business development, investing more in light-capital, non-capital-consuming businesses like healthcare-elderly care and services.

Guo Xiaotao

Our life insurance has balanced channel structure with agents, bancassurance, and community finance channels. This balanced structure helps us effectively resist market volatility impacts on performance.

Our agents continue high-quality transformation with improving per-person productivity, optimizing high-performing agent ratios, and increasing supervisor promotion rates, meaning stronger team combat effectiveness.

Balanced channels mean when agents develop, bancassurance can capture market growth opportunities for high-speed development, while we cultivate community finance channels. This ensures we can seize new market opportunities at each stage with continuous growth momentum.

This supports our 2026 16-character policy's first point: high-value growth with resilient, sustainable growth achieving synchronized value and scale growth.

Reporter (Xinhua Finance)

Given recent capital market volatility and Ping An's stock price adjustment, how does management view future stock performance? Also, this year's annual report extensively covers new services, including recent emergency assistance for Middle East clients. What's Ping An's investment in new services and underlying considerations?

Fu Xin

Recent capital market and geopolitical volatility affects not just Ping An but many companies. For our stock price evaluation, we look at three aspects:

First, industry outlook - the 15th Five-Year Plan elevates our industries (finance, healthcare-elderly care, technology) to high positions with growing customer demand. Our life insurance enters golden development period with other comprehensive finance and healthcare-elderly care segments showing important development potential.

Second, company performance - very stable with strong operating profit, forward-looking indicators like NBV, CSM, and P&C COR quality continuously improving, showing steady operations and high-value growth.

Third, valuation - Chairman Ma often says "gold will always shine." While markets and investors increasingly recognize Ping An, valuations remain low. We believe more investors will recognize our gold's increasing brightness.

Guo Xiaotao

Our service system construction is a key strategic direction for Ping An's fourth decade, especially as financial markets enter homogenized, intensely competitive times. Our strategy uses finance-plus-service systems to create differentiated competitive advantages, reflecting the 15th Five-Year Plan's "investment in people" direction.

2026 is China Ping An Group's service year, committed to creating differentiated services. Global emergency rescue represents important service upgrades with several enhancements:

First, scenario upgrades covering indoor/outdoor, domestic/international situations for increasing overseas travelers and students facing passport loss, robbery, or illness abroad, plus 50%+ elderly living alone domestically.

Second, integrating accident rescue with medical services, including ICU-equipped helicopters and connections to optimal local medical facilities for critical care within crucial first 30-60 minutes.

Our global emergency rescue follows three A's: Anything, Anywhere, Anytime. No matter what happens, Ping An emergency rescue is beside you - our service motto providing peace of mind for customers to confidently journey with Ping An long-term.

Reporter (Reuters)

Two investment questions: How does current geopolitical uncertainty and market volatility affect Ping An's overseas investment strategy? Also, regarding potential regulatory relaxation of commercial banks' "two participations, one control" rules, how might this impact Ping An's bank stock investments?

Guo Xiaotao

We closely monitor overseas market volatility and geopolitical situations, but as mentioned, our investments are long-term, cross-cycle oriented. We focus on short-term volatility but make investment decisions from medium-to-long-term perspectives, considering fundamental changes rather than temporary fluctuations.

Regarding regulatory policy changes in banking investments, we believe such policies positively promote financial industry and capital market healthy development. We strongly support these and hope to further improve our investment returns across industries under regulatory support for more orderly, healthy, stable development.

We'll maintain close regulatory communication. When new policies are clarified and implemented, we'll actively study and adjust our investment strategies accordingly.

Sheng Ruisheng

Thank you for supporting our conference. For additional questions from media friends who couldn't ask today due to time constraints, our colleagues in both Shanghai and Hong Kong remain available for communication and timely responses to your concerns.

Thank you for attending China Ping An's 2025 results announcement. Today's conference concludes here. Thank you.

Details at PING AN IR

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