Disclaimer
Ping An Insurance (Group) Company of China, Ltd.
This workbook is provided only for convenience. The information contained in this workbook is included in our financial reports filed with the Shanghai Stock Exchange and the Stock Exchange of Hong Kong Limited which are available on the Investor Relations section of our website at http://www.pingan.cn. Your use of this workbook is for informational purposes only and you agree not to misrepresent any calculations derived from the information included in this workbook as Ping An's calculations.
Please visit http://pingan.cn/ir/index.shtml or http://www.pingan.cn/en/ir/index.shtml, where we discloses information about the company, its financial information, and its business which may be deemed material.
Contact info: IR@pingan.com.cn, PR@pingan.com.cn
Key Indicators
Ping An Insurance (Group) Company of China, Ltd.
2021/ Dec.31, 2021 2020/ Dec.31, 2020 Change 2019/ Dec.31, 2019 2018/ Dec.31, 2018 2017/ Dec.31, 2017
Customer Development
Number of internet users (in million) 647.32 598.04 8.2% 515.50 443.59 429.51
Number of retail customers (in million) 227.31 218.43 4.1% 200.48 180.22 156.90
Number of contracts per customer (contract) 2.81 2.76 1.8% 2.64 2.54 2.38
Operating profit per customer (in RMB) 571.89 563.00 1.6% 612.54 542.28 474.99
Proportion of retail customers holding multiple contracts with different subsidiaries (%) 39.3 38.0 1.3 pps YTD 36.8 34.3 29.6
Proportion of new customers sourced from the Group' s internet user base(%) 35.8 36.0 -0.2 pps YoY 40.7 34.4 37.2
Group (in RMB million, unless otherwise stated)
Operating profit attributable to shareholders of the parent company 147,961 139,470 6.1% 132,955 112,573 94,708
Operating ROE (%) 18.9 19.5 -0.6 pps YoY 21.7 21.9 22.0
Basic operating earnings per share (in RMB) 8.40 7.89 6.5% 7.48 6.31 5.31
Dividend per share (in RMB) 2.38 2.20 8.2% 2.05 1.72 1.50
Net profit attributable to shareholders of the parent company 101,618 143,099 -29.0% 149,407 107,404 89,088
Equity attributable to shareholders of the parent company 812,405 762,560 6.5% 673,161 556,508 473,351
Group comprehensive solvency margin ratio (%) 233.5 236.4 -2.9 pps YTD 229.8 216.4 214.9
Total assets 10,142,026 9,527,870 6.4% 8,222,929 7,142,960 6,493,075
Total liabilities 9,064,303 8,539,965 6.1% 7,370,559 6,459,317 5,905,158
Life and health insurance business (in RMB million, unless otherwise stated)
Operating return on embedded value (%) 11.1 14.5 -3.4 pps YoY 25.0 30.8 35.5
Embedded value 876,490 824,574 6.3% 757,490 613,223 496,381
New business value 37,898 49,575 -23.6% 75,945 72,294 67,357
Operating profit 97,075 93,666 3.6% 88,950 71,345 52,824
Residual margin 940,733 960,183 -2.0% 918,416 786,633 616,319
Comprehensive solvency margin ratio of Ping An Life (%) 230.4 241.8 -11.4 pps YTD 231.6 218.8 234.1
Property and casualty insurance business (in RMB million, unless otherwise stated)
Net profit 16,192 16,159 0.2% 22,808 12,274 13,372
Combined ratio (%) 98.0 99.1 -1.1 pps YoY 96.4 96.0 96.2
Comprehensive solvency margin ratio of Ping An P&C (%) 278.4 241.4 37.0 pps YTD 259.2 223.8 217.5
Banking business (in %, unless otherwise stated)
Net profit (in RMB million) 36,336 28,928 25.6% 28,195 24,818 23,189
Net interest margin 2.79 2.88 -0.09 pps YoY 2.95 2.35 2.37
Cost-to-income ratio 28.30 29.11 -0.81 pps YoY 29.61 30.32 29.89
Non-performing loan ratio 1.02 1.18 -0.16 pps YTD 1.65 1.75 1.70
Provision coverage ratio for loans more than 60 days overdue 338.22 219.78 118.44 pps YTD 190.34 141.24 N/A
Core tier 1 capital adequacy ratio 8.60 8.69 -0.09 pps YTD 9.11 8.54 8.28
Asset management business (in RMB million, unless otherwise stated)
Trust business net profit 229 2,479 -90.8% 2,598 3,012 3,957
Securities business net profit 3,829 3,102 23.4% 2,376 1,680 2,123
Technology business (in RMB million, unless otherwise stated)
Operating profit 9,448 8,221 14.9% 4,661 7,748 5,488
Notes:
(1) This includes a final dividend of RMB1.50 per share pending approval at the 2021 Annual General Meeting.
(2) Some indicators have been disclosed for less than five years. Certain figures have been reclassified or restated to conform to relevant periods' presentation.
Copyright Ping An Group 2021
Profit & Loss
Ping An Insurance (Group) Company of China, Ltd.
1. Operating Profit Of the Group (Table A)
2021
(in RMB million) Life and health insurance business Property and casualty insurance business Banking business Trust business Securities business Other Asset management business Technology business Other Businesses and elimination The Group
Table B Table C Table D Table E Table F
Net profit attributable to shareholders of the parent company 59,468 16,117 21,060 229 3,614 8,378 (1,957) (5,291) 101,618
Net profit attributable to non-controlling interests 835 75 15,276 - 0 215 1,516 1,500 767 20,184
Net profit (A) 60,303 16,192 36,336 229 3,829 9,894 (457) (4,524) 121,802
Excluding:
Short-term investment variance (B) (23,491) - 0 - 0 - 0 - 0 - 0 - 0 - 0 (23,491)
Impact of discount rate change (C) (13,281) - 0 - 0 - 0 - 0 - 0 - 0 - 0 (13,281)
Impact of one-off material non-operating items and others (D) - 0 - 0 - 0 - 0 - 0 - 0 (9,905) - 0 (9,905)
Operating profit (E=A-B-C-D) 97,075 16,192 36,336 229 3,829 9,894 9,448 (4,524) 168,479
Operating profit attributable to shareholders of the parent company 95,906 16,117 21,060 229 3,614 8,378 7,948 (5,291) 147,961
Operating profit attributable to non-controlling interests 1,169 75 15,276 - 0 215 1,516 1,500 767 20,518
2020
(in RMB million) Life and health insurance business Property and casualty insurance business Banking business Trust business Securities business Other Asset management business Technology business Other Businesses and elimination The Group
Table B Table C Table D Table E Table F
Net profit attributable to shareholders of the parent company 95,018 16,083 16,766 2,476 2,959 5,737 7,936 (3,876) 143,099
Net profit attributable to non-controlling interests 1,054 76 12,162 3 143 974 1,567 281 16,260
Net profit (A) 96,072 16,159 28,928 2,479 3,102 6,711 9,503 (3,595) 159,359
Excluding:
Short-term investment variance (B) 10,308 - 0 - 0 - 0 - 0 - 0 - 0 - 0 10,308
Impact of discount rate change (C) (7,902) - 0 - 0 - 0 - 0 - 0 - 0 - 0 (7,902)
Impact of one-off material non-operating items and others (D) - 0 - 0 - 0 - 0 - 0 - 0 1,282 - 0 1,282
Operating profit (E=A-B-C-D) 93,666 16,159 28,928 2,479 3,102 6,711 8,221 (3,595) 155,670
Operating profit attributable to shareholders of the parent company 92,672 16,083 16,766 2,476 2,959 5,737 6,654 (3,876) 139,470
Operating profit attributable to non-controlling interests 994 76 12,162 3 143 974 1,567 281 16,200
Notes:
(1) Life & Health business represents the results of three subsidiaries, namely Ping An Life, Ping An Annuity, and Ping An Health Insurance. Property & Casualty business represents the results of Ping An P&C. The banking business represents the results of Ping An Bank. The trust business represents the results of Ping An Trust and Ping An New Capital. The securities business represents the results of Ping An Securities. The other asset management business represents the results of other subsidiaries that engage in asset management business including Ping An Asset Management, Ping An Financial Leasing, and Ping An Overseas Holdings. The technology business represents the results of subsidiaries, associates and jointly ventures that engage in technology business including Autohome, Lufax Holding, OneConnect, and Ping An Health. Eliminations include offsets against shareholding among business lines.
(2) Figures may not match the calculation due to rounding.
2. Results of life and health insurance business
2.1 Analysis of operating profit and profit sources (Table B)
(in RMB million) 2021 2020 Change (%) Notes
Release of residual margin (A) 82,488 81,583 1.1 A
Return on net worth (B) 14,567 13,170 10.6
Spread income (C) 4,823 4,565 5.6
Operating variance and others (D) 7,436 4,607 61.4
Operating profit before tax (E=A+B+C+D) 109,314 103,926 5.2
Income tax (F) (12,239) (10,260) 19.3
Operating profit after tax (G=E+F) 97,075 93,666 3.6 See Table A
Short-term investment variance (H) (23,491) 10,308 N/A
Impact of discount rate change (I) (13,281) (7,902) 68.1
Impact of one-off material non-operating items and others (J) - 0 - 0 N/A
Net profit (K=G+H+I+J) 60,303 96,072 (37.2)
Note：Figures may not match the calculation due to rounding.
2.2 The movement of residual margin of life and health insurance business
(in RMB million) 2021 2020 Change (%) Notes
Opening residual margin 960,183 918,416 4.5
Contribution from new business 55,905 88,571 (36.9)
Expected interest growth 36,505 36,319 0.5
Release of residual margin (82,488) (81,583) 1.1 A
Lapse variances and others (29,373) (1,539) 1,808.4
Closing residual margin 940,733 960,183 (2.0)
Note：Figures may not match the calculation due to rounding.
2.3 Residual Margin Analysis of L&H
(in RMB million) Residual Margin Change (%)
Dec. 31, 2017 616,319 35.5
Dec. 31, 2018 786,633 27.6
Dec. 31, 2019 918,416 16.8
Dec. 31, 2020 960,183 4.5
Dec. 31, 2021 940,733 (2.0)
2.4 Release of Residual Margin of L&H
(in RMB million) Release of Residual Margin Including: Proportion of long-term protection (%) Change of Release of Residual Margin (%)
2012 15,865 52 18.4
2013 18,710 54 17.9
2014 22,519 58 20.4
2015 29,267 63 30.0
2016 38,202 69 30.5
2017 49,811 72 30.4
2018 62,287 73 25.0
2019 74,454 73 19.5
2020 81,583 72 9.6
2021 82,488 71 1.1
Note: The above figures are data of Ping An Life for 2012-2015 and data of the L&H business for 2016-2021.
3. Results of property & casualty business (Table C)
(in RMB million) 2021 2020 Change (%) Notes
Premium income 270,043 285,854 (5.5)
Net earned premiums 260,490 253,017 3.0 B
Claim expenses (174,663) (153,302) 13.9
Commission expenses of insurance operations (32,039) (40,704) (21.3)
Administrative expenses (53,179) (62,394) (14.8)
Reinsurance commission revenue 4,527 5,473 (17.3)
Underwriting profit 5,136 2,090 145.7 D = B X (1- C)
Combined ratio (%) 98.0 99.1 -1.1 pps C
Total investment income 14,123 18,370 (23.1) E = F X G
Average investment assets 325,515 298,708 9.0 F
Total investment yield (%) 4.3 6.1 -1.8 pps G
Other net revenue and expenses (563) (831) (32.3)
Profit before tax 18,696 19,629 (4.8)
Income tax (2,504) (3,470) (27.8)
Net profit 16,192 16,159 0.2 See Table A
3.1 Operating data by product type
(in RMB million) Insured amount Premium income Net earned premiums Claim expenses Underwriting profit Combined ratio Reserve liabilities
Auto insurance 139,654,915 188,838 178,694 127,567 2,047 98.9% 159,339
Liability insurance 1,875,867,384 19,875 16,142 9,510 (820) 105.1% 17,604
Guarantee insurance 341,228 18,098 32,104 22,600 2,810 91.2% 50,203
Accidental injury insurance 1,534,436,650 17,204 16,194 5,373 1,012 93.8% 11,102
Corporate property and casualty insurance 19,534,144 7,691 4,510 2,529 322 92.9% 8,412
4. Results of banking business (Table D)
(in RMB million) 2021 2020 Change (%) Notes
Net interest revenue 120,336 113,470 6.1 H = I X J
Average balance of interest-earning assets 4,314,998 3,944,430 9.4 I
Net interest margin (%) 2.79 2.88 -0.09 pps J
Net non-interest revenue 49,047 40,072 22.4
Including: Net fee and commission revenue 33,062 29,661 11.5
Other net non-interest revenue 15,985 10,411 53.5
Revenue 169,383 153,542 10.3 K
General and administrative expenses (47,937) (44,690) 7.3 L = -(K X M)
Cost-to-income ratio (%) 28.30 29.11 -0.81 pps M
Taxes and surcharges (1,644) (1,525) 7.8
Operating profit before impairment losses on assets 119,802 107,327 11.6
Impairment losses on credit and other assets (73,817) (70,418) 4.8
Including: Loan impairment loss (59,407) (43,148) 37.7 N = -(O X P)
Average balance of loans and advances (including discounted bills) 2,853,155 2,497,111 14.3 O
Credit cost (%) 2.08 1.73 0.35 pps P
Other expenses (106) (155) (31.6)
Profit before tax 45,879 36,754 24.8
Income tax (9,543) (7,826) 21.9
Net profit 36,336 28,928 25.6 See Table A
4.1 Loan quality
(in RMB million) December 31, 2021 December 31, 2020 Change (%)
Total loans and advances 3,063,448 2,666,297 14.9
Pass 2,988,759 2,605,204 14.7
Special mention 43,414 29,703 46.2
Non-performing loan ratio (%) 1.02 1.18 -0.16 pps
Balance of loans more than 60 days overdue 26,670 28,765 (7.3)
Percentage of loans more than 60 days overdue (%) 0.87 1.08 -0.21 pps
Balance of loans more than 90 days overdue 22,698 23,524 (3.5)
Percentage of loans more than 90 days overdue (%) 0.74 0.88 -0.14 pps
Percentage of special mention loans (%) 1.42 1.11 0.31 pps
Impairment provision balance (90,202) (63,219) 42.7
Provision to loan ratio (%) 2.94 2.37 0.57 pps
Provision coverage ratio (%) 288.42 201.40 87.02 pps
Provision coverage ratio for loans more than 60 days overdue (%) 338.22 219.78 118.44 pps
Provision coverage ratio for loans more than 90 days overdue (%) 397.40 268.74 128.66 pps
5. Results of trust business (Table E)
(in RMB million) 2021 2020 Change (%) Notes
Fees and commission revenue 3,611 4,335 (16.7) Q = R X S
Monthly average assets held in trust 429,040 424,695 1.0 R
Fee rate of assets held in trust (%) 0.84 1.02 -0.18 pps S
Fees and commission expenses (366) (451) (18.8)
Net fees and commission revenue 3,245 3,884 (16.5)
Administrative expenses (1,469) (1,597) (8.0)
Total investment income (1,506) 399 N/A
Other net revenue and expenses 693 530 30.8
Profit before tax 963 3,216 (70.1)
Income tax (734) (737) (0.4)
Net profit 229 2,479 (90.8) See Table A
5.1 Assets held in trust
(in RMB million) December 31, 2021 December 31, 2020 Change (%)
Investment category 256,750 117,911 117.7
Financing category 108,904 142,909 (23.8)
Administrative category 95,658 130,232 (26.5)
Total 461,312 391,052 18.0
5.2 Fees and commission revenue
(in RMB million) 2021 2020 Change (%)
Fees and commission revenue 3,611 4,335 (16.7)
Investment category 1,550 1,919 (19.2)
Financing category 1,896 2,180 (13.0)
Administrative category 165 236 (30.1)
Fee rate of assets held in trust (%) 0.84 1.02 -0.18 pps
Investment category (%) 0.85 2.17 -1.32 pps
Financing category (%) 1.43 1.23 0.20 pps
Administrative category (%) 0.14 0.15 -0.01 pps
6. Results of securities business (Table F)
(in RMB million) 2021 2020 Change (%) Notes
Fees and commission revenue 9,309 8,175 13.9
Fees and commission expenses (2,570) (2,017) 27.4
Net fees and commission revenue 6,739 6,158 9.4
Total investment income 7,810 6,104 27.9
Other revenue 5,704 4,203 35.7
Revenue 20,253 16,465 23.0 T
Administrative expenses (5,823) (4,887) 19.2 U = -(T+W) X V
Cost-to-income ratio (%) 43.8 45.0 -1.2 pps V
Financial costs (2,871) (2,095) 37.0
Other expenses (6,956) (5,599) 24.2 W
Profit before tax 4,603 3,884 18.5
Income tax (774) (782) (1.0)
Net profit 3,829 3,102 23.4 See Table A
6.1 Fees and commission revenue
(in RMB million) 2021 2020 Change (%)
Brokerage business 7,440 5,828 27.7
Underwriting business 997 1,255 (20.6)
Asset management business 513 478 7.3
Others 359 614 (41.5)
Total 9,309 8,175 13.9
Copyright Ping An Group 2021
Balance Sheet
Ping An Insurance (Group) Company of China, Ltd.
(in RMB million) December 31, 2021 December 31, 2020 Change (%)
Total assets 10,142,026 9,527,870 6.4
Total liabilities 9,064,303 8,539,965 6.1
Total equity 1,077,723 987,905 9.1
Equity attributable to shareholders of the parent company 812,405 762,560 6.5
Total shares (in million) 18,280 18,280 - 0
Net asset value per share attributable to shareholders of the parent company (in RMB) 44.44 41.72 6.5
Investment portfolio of insurance funds 3,916,412 3,740,581 4.7
Group core capital 1,861,487 1,779,640 4.6
Group actual capital 1,899,989 1,815,140 4.7
Group minimum capital 813,781 767,804 6.0
Group core solvency margin ratio (%) (regulatory requirement ≥50%) 228.7 231.8 -3.1 pps
Group comprehensive solvency margin ratio (%) (regulatory requirement ≥100%) 233.5 236.4 -2.9 pps
Solvency margin Ping An Life Ping An Annuity Ping An Health Insurance Ping An P&C
(in RMB million) December 31, 2021 December 31, 2020 Change (%) December 31, 2021 December 31, 2020 Change (%) December 31, 2021 December 31, 2020 Change (%) December 31, 2021 December 31, 2020 Change (%)
Core capital 1,026,410 1,046,787 (1.9) 11,568 13,119 (11.8) 4,307 3,070 40.3 112,277 103,377 8.6
Actual capital 1,046,410 1,068,787 (2.1) 11,568 13,119 (11.8) 4,307 3,070 40.3 125,777 116,877 7.6
Minimum capital 454,175 442,031 2.7 5,955 5,535 7.6 2,097 1,467 42.9 45,171 48,418 (6.7)
Core solvency margin ratio (%) (regulatory requirement ≥50%) 226.0 236.8 -10.8 pps 194.3 237.0 -42.7 pps 205.4 209.2 -3.8 pps 248.6 213.5 35.1 pps
Comprehensive solvency margin ratio (%) (regulatory requirement ≥100%) 230.4 241.8 -11.4 pps 194.3 237.0 -42.7 pps 205.4 209.2 -3.8 pps 278.4 241.4 37.0 pps
Notes:
(1) Core solvency margin ratio = core capital / minimum capital. Comprehensive solvency margin ratio = actual capital / minimum capital.
(2) For details of subsidiaries' solvency margin, please visit the Company's website (www.pingan.cn).
(3) Figures may not match the calculation due to rounding.
Ping An Bank capital adequacy ratio December 31, 2021 December 31, 2020 Change (%)
Total risk weighted assets (in RMB million) 3,566,465 3,151,764 13.2
Core tier 1 capital adequacy ratio (%) (regulatory requirement≥7.5%) 8.60 8.69 -0.09 pps
Tier 1 capital adequacy ratio (%) (regulatory requirement≥8.5%) 10.56 10.91 -0.35 pps
Capital adequacy ratio (%) (regulatory requirement≥10.5%) 13.34 13.29 0.05 pps
Note:Ping An Bank and its wholly-owned subsidiary Ping An Wealth Management Co., Ltd. are included in the computation of the above capital adequacy ratios in accordance with the Administrative Measures for the Capital of Commercial Banks (Trial) issued by the former China Banking Regulatory Commission on June 7, 2012.
Stress test on comprehensive solvency margin ratio December 31, 2021
Ping An Group Ping An Life Ping An P&C
Base case 233.5% 230.4% 278.4%
50 bps decline in interest rate 225.9% 214.7% 279.4%
30% decrease in fair value of equity assets 224.7% 217.5% 273.3%
Segment Assets (in RMB million) December 31, 2021 December 31, 2020 Change (%)
Life and health insurance business 3,716,504 3,572,561 4.0
Property and casualty insurance business 470,407 452,841 3.9
Banking business 4,921,380 4,468,514 10.1
Trust business 31,725 32,220 (1.5)
Securities business 253,368 199,283 27.1
Other asset management business 745,973 794,681 (6.1)
Technology business 149,785 153,818 (2.6)
Other businesses and elimination (147,116) (146,048) 0.7
The Group 10,142,026 9,527,870 6.4
Segment liabilities (in RMB million) December 31, 2021 December 31, 2020 Change (%)
Life and health insurance business 3,397,184 3,291,037 3.2
Property and casualty insurance business 355,778 349,370 1.8
Banking business 4,525,932 4,104,383 10.3
Trust business 6,778 8,717 (22.2)
Securities business 210,791 165,477 27.4
Other asset management business 667,028 723,862 (7.9)
Technology business 30,898 37,007 (16.5)
Other businesses and elimination (130,086) (139,888) (7.0)
The Group 9,064,303 8,539,965 6.1
Segment Equity (in RMB million) December 31, 2021 December 31, 2020 Change (%)
Life and health insurance business 319,320 281,524 13.4
Property and casualty insurance business 114,629 103,471 10.8
Banking business 395,448 364,131 8.6
Trust business 24,947 23,503 6.1
Securities business 42,577 33,806 25.9
Other asset management business 78,945 70,819 11.5
Technology business 118,887 116,811 1.8
Other businesses and elimination (17,030) (6,160) 176.5
The Group 1,077,723 987,905 9.1
Equity Attributable to Shareholders of the Parent Company (in RMB million) December 31, 2021 December 31, 2020 Change (%)
Life and health insurance business 296,877 273,161 8.7
Property and casualty insurance business 113,898 102,991 10.6
Banking business 200,217 182,067 10.0
Trust business 24,918 23,475 6.1
Securities business 36,003 32,346 11.3
Other asset management business 54,922 49,240 11.5
Technology business 100,697 104,523 (3.7)
Other businesses and elimination (15,127) (5,243) 188.5
The Group 812,405 762,560 6.5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(in RMB million) December 31, 2021 December 31, 2020
Assets (Audited) (Audited)
Cash and amounts due from banks and other financial institutions 584,995 587,391
Balances with the Central Bank 308,348 280,177
Financial assets purchased under reverse repurchase agreements 61,429 122,765
Premium receivables 79,834 94,003
Accounts receivable 26,628 26,176
Derivative financial assets 30,957 37,661
Reinsurers' share of insurance liabilities 26,852 20,219
Policy loans 178,298 161,381
Finance lease receivable 200,701 202,050
Loans and advances to customers 2,980,975 2,599,510
Financial assets at fair value through profit or loss 1,426,677 1,231,331
Financial assets at amortized cost 2,768,995 2,624,848
Debt financial assets at fair value through other comprehensive income 428,530 511,386
Equity financial assets at fair value through other comprehensive income 268,215 277,401
Investments in associates and joint ventures 284,061 267,819
Statutory deposits for insurance operations 12,606 12,561
Investment properties 86,041 43,385
Property and equipment 49,758 46,286
Intangible assets 68,462 64,290
Right-of-use assets 14,185 16,172
Deferred tax assets 65,360 61,901
Other assets 154,117 186,098
Policyholder account assets in respect of insurance contracts 31,847 48,796
Policyholder account assets in respect of investment contracts 4,155 4,263
Total assets 10,142,026 9,527,870
Equity and liabilities
Equity
Share capital 18,280 18,280
Reserves 234,186 228,271
Treasury shares (9,895) (5,995)
Retained profits 569,834 522,004
Equity attributable to owners of the parent 812,405 762,560
Non-controlling interests 265,318 225,345
Total equity 1,077,723 987,905
Liabilities
Due to banks and other financial institutions 797,646 960,175
Financial liabilities at fair value through profit or loss 57,376 37,217
Derivative financial liabilities 35,049 48,579
Assets sold under agreements to repurchase 127,477 276,602
Accounts payable 6,663 5,148
Income tax payable 16,247 17,283
Insurance payables 150,767 139,528
Policyholder dividend payable 67,276 63,806
Customer deposits and payables to brokerage customers 3,002,049 2,693,833
Bonds payable 1,097,523 901,285
Insurance contract liabilities 3,261,354 2,972,460
Investment contract liabilities for policyholders 72,839 67,581
Lease liabilities 14,208 15,620
Deferred tax liabilities 13,605 19,267
Other liabilities 344,224 321,581
Total liabilities 9,064,303 8,539,965
Total equity and liabilities 10,142,026 9,527,870
Copyright Ping An Group 2021
Embedded Value
Ping An Insurance (Group) Company of China, Ltd.
1.Key Data Summary
(in RMB million) 2021/ Dec.31, 2021 2020/ Dec.31, 2020 Change (%)
EV of Group 1,395,509 1,328,112 5.1
EV of L&H 876,490 824,574 6.3
Operating ROEV of L&H (%) 11.1 14.5 -3.4 pps
Value of new business after cost capital of L&H (NBV) 37,898 49,575 (23.6)
Long-run investment return assumption (%) 5.0 5.0 - 0
Risk discount rate (%) 11.0 11.0 - 0
2.EV Movement Analysis
2.1 Movement analsysis of life and health insurance business(L&H) EV
(in RMB million) 2021 Notes
Opening EV of L&H 824,574 A
EV operating profit of L&H 91,518 B = C+D+E+F
Including: Expected return on opening EV 70,364 C
NBV post-risk diversification benefits 43,760 D
Operating assumptions and model changes (5,876) E
Operating variances and others (16,730) F
Economic assumptions changes - 0
Market value adjustment 7,339
Investment return variance (24,889)
Non-operating one-off item and others - 0
Shareholder dividends (20,450)
Employee stock ownership plan (1,601)
Closing EV of L&H 876,490
Other business closing ANA 519,018
Group EV 1,395,509
Note: Figures may not match the calculation due to rounding.
2.2 Operating return of EV (operating ROEV)
(in RMB million) 2021 2020 Notes
EV operating profit of L&H 91,518 109,577 B
Operating ROEV of L&H (%) 11.1 14.5 G = B / A
Note: Figures may not match the calculation due to rounding.
3. NBV Relevant Data
3.1 NBV by segment
(in RMB million) FYP used to calculate new business value NBV
2021 2020 Change (%) 2021 2020 Change (%)
Retail business 97,202 102,808 (5.5) 37,330 48,756 (23.4)
Agency 72,131 78,230 (7.8) 31,076 42,913 (27.6)
Long-term protection 14,429 26,815 (46.2) 12,512 25,756 (51.4)
Protection & Saving hybrid (long-PPP) 15,926 12,941 23.1 7,560 7,195 5.1
Protection & Saving hybrid (short-PPP) 36,715 32,860 11.7 7,178 6,187 16.0
Short-term 5,062 5,614 (9.8) 3,827 3,775 1.4
Tele, internet and others 15,919 15,477 2.9 4,485 4,234 5.9
Bancassurance 9,152 9,100 0.6 1,769 1,609 9.9
Group business 39,088 46,108 (15.2) 568 820 (30.8)
Total 136,290 148,915 (8.5) 37,898 49,575 (23.6)
Notes:
(1) "PPP" stands for Premium Payment Period.
(2) Long-term protection products cover whole life, term life, critical illness and long-term accident insurance. Protection & Saving products (long-PPP) cover endowment and annuity products with PPP of 10 years and above. Protection & Saving products (short-PPP) cover endowment and annuity products with PPP below 10 years.
(3) Tele, internet and others include telemarketing, internet marketing and Ping An Health Insurance's retail business.
(4) Figures may not match the calculation due to rounding.
3.2 NBV margin by segment
By FYP(%) By ANP(%)
2021 2020 Change 2021 2020 Change
Retail business 38.4 47.4 -9.0 pps 43.7 54.0 -10.3 pps
Agency 43.1 54.9 -11.8 pps 50.6 64.5 -13.9 pps
Long-term protection 86.7 96.0 -9.3 pps 87.3 96.2 -8.9 pps
Protection &Saving hybrid (long-PPP) 47.5 55.6 -8.1 pps 47.4 55.5 -8.2 pps
Protection &Saving hybrid (short-PPP) 19.5 18.8 0.7 pps 27.1 29.3 -2.1 pps
Short-term 75.6 67.2 8.4 pps 79.9 67.5 12.4 pps
Tele, internet and others 28.2 27.4 0.8 pps 28.3 28.3 -
Bancassurance 19.3 17.7 1.6 pps 21.8 19.7 2.1 pps
Group business 1.5 1.8 -0.3 pps 2.1 2.9 -0.8 pps
Total 27.8 33.3 -5.5 pps 33.8 41.9 -8.0 pps
Notes:
(1) ANP (annualized new premium) is calculated as the sum of 100 percent of annualized first year premiums and 10 percent of single premiums.
(2) Figures may not match the calculation due to rounding.
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Ping An Insurance (Group) Co. of China Ltd. published this content on 18 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2022 09:00:04 UTC.