Ping An Insurance Group has reported a 45.5% increase in net profit for the third quarter of 2017, mostly attributed to a substantial increase in life and health premiums following the insurer’s expansion of its sales agent team.
In the three months ended September 30, net profit was at RMB22.89 billion (US$3.45 billion), a 45.5% increase from RMB15.73 billion in the same period last year, according to a statement issued by Ping An.
In the first nine months of the year, its net profit was 17.64% higher, reaching RMB66.32 billion.
Life and health insurance were the largest contributors to the growth, with value of new business of these insurance segments growing by 35.5% to RMB53.74 billion (US$8.08 billion). The insurer had increased its agent sales force by almost 28% in 2017, leading to a bump in insurance sales.
Ping An’s robust results come amid slowing premium growth and regulatory tightening in the Chinese insurance industry, according to a report by top Chinese financial publication
Caixin.
The report added that Ping An will focus on growing the sales of long-term life insurance in order to usher n steady growth and avoid the crisis caused by other insurers’ extensive dabbling in short-term and risky insurance policies.
Earlier, this year, Ping An was recognised by Forbes as the world’s largest insurer, ranking 16th on its Global 2000 list. The Chinese insurer also ranks second-largest in terms of premium income in its home market.
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