Ping An Insurance of China : 2021 Interim Results Report

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Ping An Insurance (Group) Company of China, Ltd.

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 2318)

ANNOUNCEMENT OF UNAUDITED RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2021

The board of directors (the "Board") of Ping An Insurance (Group) Company of China, Ltd. ("Ping An" or the "Company") hereby announces the unaudited results of the Company and its subsidiaries for the six months ended June 30, 2021. This announcement, containing the full text of the 2021 Interim Report of the Company, complies with the relevant requirements of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "HKEX") in relation to the information to accompany preliminary announcements of interim results.

This results announcement, which is prepared in accordance with the International Financial Reporting Standards, is simultaneously available on the websites of the HKEX (www.hkexnews.hk) and the Company (www.pingan.cn). The printed version of the Company's 2021 Interim Report will be delivered to the holders of H shares of the Company and available for viewing on the websites of the HKEX (www.hkexnews.hk) and the Company (www.pingan.cn) before late September 2021.

By order of the Board

Ma Mingzhe

Chairman

Shenzhen, the PRC, August 26, 2021

As at the date of this announcement, the executive directors of the Company are Ma Mingzhe, Xie Yonglin, Tan Sin Yin, Yao Jason Bo and Cai Fangfang; the non-executive directors of the Company are Soopakij Chearavanont, Yang Xiaoping and Huang Wei; the independent non-executive directors of the Company are Ouyang Hui, Ng Sing Yip, Chu Yiyun, Liu Hong, Ng Kong Ping Albert and Jin Li.

Contents

ABOUT US	CORPORATE GOVERNANCE
1	Introduction	98	Changes in the Share Capital and
4	Chairman's Statement		Shareholders' Profile
7	Financial Highlights	100	Directors, Supervisors and Senior Management
		102	Significant Events
MANAGEMENT DISCUSSION AND ANALYSIS	FINANCIAL STATEMENTS
8	Customer Development	118	Report on Review of Interim Condensed
14	Technology-Powered Business Transformation
	Consolidated Financial Information
18	Healthcare as a New Driver of Value Growth
119	Interim Consolidated Income Statement
20	Business Analysis
120	Interim Consolidated Statement of
20	Performance Overview
	Comprehensive Income
24	Life and Health Insurance Business	121	Interim Consolidated Statement of
34	Property and Casualty Insurance Business	123	Financial Position
40	Investment Portfolio of Insurance Funds	Interim Consolidated Statement of
46	Banking Business		Changes in Equity
125	Interim Consolidated Statement of Cash Flows
55	Asset Management Business
126	Notes to the Interim Condensed Consolidated
61	Technology Business
	Financial Information

68 Analysis of Embedded Value

78	Liquidity and Capital Resources	OTHER INFORMATION
84	Sustainability
		177	Glossary
		180	Corporate Information

Cautionary Statements Regarding Forward-Looking Statements

To the extent any statements made in this Report contain information that is not historical, these statements are essentially forward-looking. These forward-looking statements include but are not limited to projections, targets, estimates and business plans that the Company expects or anticipates may or may not occur in the future. Words such as "potential", "estimates", "expects", "anticipates", "objective", "intends", "plans", "believes", "will", "may", "should", variations of these words and similar expressions are intended to identify forward-looking statements.

These forward-looking statements are subject to known and unknown risks and uncertainties that may be general or specific. Readers should be cautioned that a variety of factors, many of which are beyond the Company's control, affect the performance, operations and results of the Company, and could cause actual results to differ materially from the expectations expressed in any of the Company's forward-looking statements. These factors include, but are not limited to, exchange rate fluctuations, market shares, competition, environmental risks, changes in legal, financial and regulatory frameworks, international economic and financial market conditions and other risks and factors beyond our control. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. In addition, the Company undertakes no obligation to publicly update or revise any forward-looking statement that is contained in this Report as a result of new information, future events or otherwise. Neither the Company nor any of its employees or affiliates is responsible for, or is making, any representations concerning the future performance of the Company.

Introduction

ABOUT US

Ping An strives to become a world-leadingretail financial services group. Ping An actively responds to China's 14th Five-Year Plan, and serves the real economy and national strategies including Digital China and Healthy China via financial services. Ping An executes its "finance + technology" and "finance + ecosystem" strategies, and furthers its transformation toward smart, digital operations, focusing on "Pan Financial Assets" and "Pan Healthcare." Ping An employs technologies to increase efficiency, enhance risk management, and reduce operating costs of its financial businesses. Moreover, Ping An promotes innovation in fintech and healthtech, and applies innovative technologies to its ecosystems, namely financial services, healthcare, auto services, and smart city services. Ping An develops heartwarming products and services by leveraging fintech and

its healthcare ecosystem. By doing so, Ping An empowers financial services with technologies, empowers ecosystems with technologies, and empowers financial services with ecosystems. Ping An continuously optimizes the integrated financial business model of "one customer, multiple products, and one-stop services," leveraging local advantages while adhering to global standards for corporate governance and business management. Ping An provides diverse products and convenient services to 223 million retail customers and 627 million internet users. While remaining focused on retail business, Ping An extends its "1 + N" philosophy to its corporate business to satisfy customer demands for integrated financial services and increase the value of its corporate customers and the contribution of its corporate business.

Interim Report 2021

Ping An Insurance (Group) Company of China, Ltd. 1

Introduction

Profit and cash dividends continued to increase. Ping An achieved a 21.0% annualized operating ROE, with operating profit attributable to shareholders of the parent company rising 10.1% year on year to RMB81,836 million in the first half of 2021. Ping An attaches importance to shareholder returns and will pay an interim dividend of RMB0.88 per share in cash, up 10.0% year on year. As approved by the Board of Directors, Ping An plans to repurchase RMB5-10billion worth of A shares with proprietary funds.

Customer development further progressed. Ping An's retail customers exceeded 223 million as of June 30, 2021, among which 38.7% held multiple contracts with different subsidiaries. New financing scale achieved through corporate business cross-sellingincreased 36.1% year on year in the first half of 2021.

Life & Health (the life and health insurance business) advanced its reform and transformation. Ping An Life actively explored high-qualitydevelopment paths, leveraging the Group's technologies and ecosystems to pioneer the reform. Improvements have been seen at some of the pilot business outlets, with first year premium per outlet up 6% since the beginning of the pilot reform. Moreover, Ping An Life implemented tiered, refined management of sales agents, vigorously developed Diamond Agents, steadily enhanced ordinary agents, and trained high-qualitynew agents. Per capita productivity of the agent channel improved steadily.

Property & Casualty (the property and casualty insurance business) maintained good business quality. Combined ratio improved by

2.2 pps to 95.9% and operating profit grew 30.4% year on year to RMB10,791 million in the first half of 2021. "Ping An Auto Owner," the largest automotive service app in China, had over 139 million registered users as of June 30, 2021, with over 31 million monthly active users in June.

Ping An Bank maintained stable business growth and continued to improve its asset quality. Ping An Bank's revenue grew 8.1% year on year to RMB84,680 million in the first half

of 2021. Net profit rose 28.5% year on year to RMB17,583 million. Non-performing loan ratio improved by 0.10 pps year to date to 1.08% and provision coverage ratio rose 58.13 pps to 259.53% as of June 30, 2021.

Healthcare ecosystem strategy progressed rapidly. Ping An Smart Healthcare empowered over 40,000 medical institutions and benefited approximately 950,000 doctors in 170 cities as of June 30, 2021. Nearly 62% of Ping An's over 223 million retail customers used services from the healthcare ecosystem. Such customers held 3.2 contracts and RMB41,000 in assets under management (AUM) per capita respectively, both higher than those retail customers who did not use services from the healthcare ecosystem. Ping An Life launched the Ping

An Zhen Xiang RUN Health Services Plan to provide nearly 30 types of heartwarming full- cycle health management services covering scenarios including health management, sub-health management, chronic disease management, and disease management.

Innovative businesses grew further. Total revenue of technology business rose 14.2% year on year to RMB48,809 million in the first half of 2021. Lufax Holding's business grew steadily, with net profit up 33.3% year on year. Revenues of Ping An Good Doctor and OneConnect both grew over 30% year on year in the first half of 2021.

2 Interim Report 2021

Ping An Insurance (Group) Company of China, Ltd.

Ping An continued to strengthen its core technological capabilities. Ping An's technology patent applications increased by

3,508 year to date to 34,920 as of June 30, 2021, more than most other international financial institutions'. Ping An uses artificial intelligence (AI) to promote sales, improve efficiency, and contain risks for its financial businesses. Sales realized by AI service representatives increased 54% year on year to approximately RMB111 billion in the first half of 2021. AI service representatives covered 2,155 scenarios as of June 30, 2021, and served customers approximately one billion times, accounting for 84% of total customer service volume in the first half of 2021. AI cumulatively collected RMB173.7 billion of overdue loans in the first half of 2021, up 96% year on year. The 30-day recovery rate of AI collection grew 18 pps year on year to 78%.

Ping An contributed to China's carbon neutrality goals through green finance and supported rural development through

Ping An Rural Communities Support. Ping An

Total Assets (in RMB million)

Jun 30, 2021		9,887,668
Dec 31, 2020		9,527,870

Operating Profit Attributable to Shareholders of the Parent Company (in RMB million)

1H 2021		81,836
1H 2020		74,310

Basic Operating Earnings per Share (in RMB)

1H 2021		4.64
1H 2020		4.20

New Business Value of Life and Health Insurance Business (in RMB million)

1H 2021		27,387
1H 2020			31,031

ABOUT US

contributes to China's carbon peak and neutrality goals by comprehensively upgrading its green finance initiative, leveraging integrated financial services, utilizing green insurance, green investment and green credit, and supporting green development with strong measures. Moreover, Ping An continues to advance Ping An Rural Communities Support, moving from poverty alleviation to rural revitalization. Ping An cumulatively provided RMB36,024 million for poverty alleviation and industry revitalization as of June 30, 2021, supporting the construction of beautiful countryside.

Brand value continued to increase. In 2021, Ping An moved up five places from the previous year to 16th in the Fortune Global 500 list (2nd among global financial companies), rose from 7th to 6th in the Forbes Global 2000 list, and ranked 49th in the BrandZTM Top 100 Most Valuable Global Brands list (1st among global banks and insurers for the first time, and 1st among global insurance brands for the sixth consecutive year).

Total Revenue (in RMB million)

1H 2021		687,788
1H 2020		683,280

Equity Attributable to Shareholders of the Parent Company (in RMB million)

Jun 30, 2021		791,836
Dec 31, 2020		762,560

Interim Dividend per Share (in RMB)

1H 2021		0.88
1H 2020		0.80

Embedded Value of Life and Health Insurance Business (in RMB million)

Jun 30, 2021		863,585
Dec 31, 2020		824,574

Interim Report 2021

Ping An Insurance (Group) Company of China, Ltd. 3