Ping An Insurance

Ping An Insurance
public
Traded as
Industry Financial services
Founded 1988 (1988)
Headquarters Shenzhen, China
Area served
 China
Key people
 Ma Mingzhe (Chairman & CEO)
Services Life and non-life insurance
Revenue Increase CN¥693.2 billion (2015)
Increase CN¥93.4 billion (2015)
Increase CN¥54.2 billion (2015)
Total assets Increase CN¥4,765.2 billion (2015)
Total equity Increase CN¥334.2 billion (2015)
Owner
Subsidiaries Ping An Bank (58.00%)
Website pingan.com
Footnotes / references
in a consolidated basis[1]
Ping An Insurance (Group) Company of China, Ltd.
Traditional Chinese 中國平安保險（集團）股份有限公司
Simplified Chinese 中国平安保险（集团）股份有限公司

Ping An Insurance known also as Ping An of China (Chinese: 中国平安; pinyin: Zhōngguó Píng Ān), full name Ping An Insurance (Group) Company of China, Ltd. is a holding company whose subsidiaries mainly deal with insurance, banking, and financial services. The company was founded in 1988 and has its headquarter in Shenzhen. Ping An literally means "safe and well".

Ping An Insurance is one of the top 50 companies in the Shanghai Stock Exchange. Ping An is also a component of Hang Seng Index, an index of the top 50 companies in the Hong Kong Stock Exchange. Ping An Insurance was also included in the pan-China stock indices CSI 300 Index, FTSE China A50 Index and Hang Seng China 50 Index.

Business

Ping An Insurance Group is the holding company of Ping An Life Insurance Company of China, Ltd. and Ping An Property & Casualty Insurance Company of China, Ltd. It also controls China Ping An Insurance Overseas (Holdings) Limited and Ping An Trust & Investment Co., Ltd. Ping An Insurance Overseas, located in Hong Kong, is a second holding company for subsidiary companies located outside of mainland China.

Ping An Trust & Investment has the subsidiaries of Ping An Securities and Ping An Bank.

Ping An began as only a casualty insurance company. Since the mid-1990s Ping An has been diversifying into financial services from its core business of insurance and began taking investments from overseas firms. Ping An accepted investments from Morgan Stanley and Goldman Sachs in 1994. In 2002 HSBC took a large equity interest in Ping An. In early 2008, Ping An agreed to take a 50% share in Fortis Investments, a subsidiary of Fortis,[2] which had taken over ABN AMRO Asset Management as a result of the split up of ABN AMRO in late 2007, but the deal was cancelled in October 2008.

In June 2009, Ping An became a strategic investor in Shenzhen Development Bank,[3] (now part of Ping An Bank).

Ownership

Ping An has the classification as being a civilian-run enterprise. Richard McGregor, author of The Party: The Secret World of China's Communist Rulers, said that "the true ownership of large chunks of its shares remains unclear" and that the ownership of Ping An is a "murky structure".[4] In October 2012, The New York Times reported that relatives and associates of Chinese Premier Wen Jiabao controlled stakes in Ping An worth at least US$2.2 billion in 2007.[5] They paid the equivalent of 40 cents a share, others buying in the same time frame paid as much as $1.20. Thanks to favorable regulatory treatment and licensing, the firm was able to build a diverse financial firm with interests in insurance, brokerage, and banking.[6]

HSBC acquired 48.22% of H shares by means of different HSBC subsidiaries[7] (H share accounted for 34.83% of the share capital as at 31 December 2009,[7] which was later increased to 41.88% in 2015 [1]). HSBC hold 16.80% of total shares of Ping An, making itself to be the biggest shareholder at 31 December 2009.[7]

On 5 December 2012, HSBC announced to sell their entire 15.57% stake for HK$72.736 billion (approx. US$9.385 billion; HK$59.00 per share) to Thailand conglomerate Charoen Pokphand. The deal would split into to two phases, which the latter was subjected to the clearance from China Insurance Regulatory Commission, which would paid in cash and a loan from China Development Bank to Charoen Pokphand.[8] In February 2013 Charoen Pokphand got the clearance.[9] On 10 May in spite of a lack of loan from the state-owned China Development Bank to Charoen Pokphand,[10][11] the deal was completed.[11][12] According to HSBC, the transaction would increase Tier 1 Capital ratio of the bank for 0.5%, as well as a post-tax gain of US$2.6 billion.[8] HSBC had an above average forecasted CET1 ratio of 8.5% in 2011 European Union bank stress test under the adverse scenario,[13] nevertheless HSBC chose to strengthen its capital by selling Ping An. The actual ratio at 31 December 2012 was 12.3%, increased 2.2% year-to-yearly.[14]

As at 31 December 2015, Shenzhen Government via Shenzhen Investment Holdings (Chinese: 深圳市投資控股) and Shum Yip Group (Chinese: 深业集团), still owned a combined 6.68% stake (5.27% + 1.41%), followed by Central Huijin Asset Management for 2.65% (a wholly owned subsidiary of state-owned Central Huijin Investment) and China Securities Finance for 2.07% stake.[1]

Markets

Since June 24, 2004 Ping An has been listed on the Hong Kong Stock Exchange. SEHK: 02318 Now, it has a listing on stock exchange in Shanghai, SSE: 601318.

Ping An was chosen as an index stock of the Hang Seng China Enterprises Index (HSCEI) replacing Anhui Expressway.

The Hang Seng Index Services Company announced on 11 May 2007 that Ping An would join as Hang Seng Index Constituent Stock (Blue Chip Stock) effective on 4 June 2007.

Operations

Ping An has operations across all of the People's Republic of China, and in Hong Kong and Macau through Ping An Insurance Overseas. Ping An has branches or a representative agent in 150 countries.

In 2010, Ping An's asset management arm implemented DST Global Solutions' Hiportfolio investment accounting system to run their back office operations.

References

Notes

  1. 1 2 3 "2015 Annual Report" (PDF). Ping An Insurance. archive of Hong Kong Stock Exchange. 29 March 2016. Retrieved 20 October 2016.
  2. ↑ The Ping An-Fortis Deal: Who Really Wins?, Caijing Magazine, 3 April 2008
  3. ↑ "Ping An to invest in Shenzhen Development Bank - BusinessWeek". businessweek.com. 2011. Archived from the original on 18 April 2011. Retrieved 19 July 2011.
  4. ↑ McGregor, p. 204-205.
  5. ↑ David Barboza, "Billions in Hidden Riches for Family of Chinese Leader", The New York Times, 25 October 2012. Retrieved 27 October 2012.
  6. ↑ David Barboza (November 24, 2012). "Lobbying, a Windfall and a Leader's Family". The New York Times. Retrieved November 26, 2012.
  7. 1 2 3 "2009 Annual Report" (PDF). Ping An Insurance. archive of Hong Kong Stock Exchange. 27 April 2010. Retrieved 20 October 2016.
  8. 1 2 "HSBC to sell its entire shareholding in Ping An Insurance". HSBC. 5 February 2012. Retrieved 20 October 2016.
  9. ↑ "Thai tycoons go for it in multi-billion deals". Investvine.com. 2013-02-04. Retrieved 2013-03-17.
  10. ↑ Chen Xiaoyi (January 8, 2013). "China Development Bank stops loan to Charoen Pokphand to buy Ping An". Morning Whistle. Retrieved 2013-05-10.
  11. 1 2 Yam, Shirley (9 February 2013). "Still too much murkiness around the details of the Ping An deal". South China Morning Post. Retrieved 2013-05-10.
  12. ↑ "Ping An rises on HSBC stake sale to Charoen Pokphand". Bloomberg Honk Kong. 5 December 2012. Retrieved 2013-05-10.
  13. ↑ "Results of the 2011 EU-wide Stress Test under the adverse scenario" (PDF). European Banking Authority. 18 July 2011. Retrieved 20 October 2016.
  14. ↑ "2012 Annual Report and Accounts" (PDF). HSBC Holdings. 4 March 2013. Retrieved 20 October 2016.
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