According to Reuters, this proposal would see Ping An increase its control over the healthcare-focused entity.
Despite the offer, Ping An Healthcare will remain listed on the Hong Kong Stock Exchange. Ping An Insurance has indicated that it does not plan to privatise the healthcare arm.
The proposal offers Ping An Healthcare shareholders HK$6.12 per share in cash, which represents a 2.9% discount compared to the stock’s last closing price of HK$6.30.
Ping An Insurance currently holds a 39.41% stake in Ping An Healthcare through one of its subsidiaries. The bid follows the parent company’s recent increase in ownership, triggered by a special dividend payment issued by the healthcare unit in late 2024.
In November 2024, Ping An Healthcare offered a special dividend of HK$9.70 per share. Shareholders elected to receive the payout in shares, resulting in the issuance of 1.04 billion new shares. As a result, Ping An Insurance’s subsidiary acquired 699 million additional shares, raising its ownership stake to 52.74% and activating the mandatory takeover clause.
The proposal comes after Ping An Insurance reported financial results for the first three quarters of 2024, showing year-on-year growth across key performance metrics despite broader economic uncertainties in China.
The group’s operating profit increased by 5.5% to RMB113.8 billion, while net profit attributable to shareholders rose 36.1% to RMB119.2 billion. Total revenue during the period reached RMB861.8 billion, an 8.7% year-on-year gain.
The life and health insurance segment delivered significant growth, with new business value (NBV) increasing 34.1% year-on-year to RMB35.2 billion. The company attributed this to enhanced agent productivity and the expansion of integrated health and senior care services.
The bancassurance channel reported a 68.5% rise in NBV, while the community finance channel experienced a 300% surge, reflecting better policyholder retention and operational efficiency improvements.
Ping An has prioritised integrating health and senior care services with its core insurance offerings. By the end of September, the company had extended health management services to more than 19.5 million customers and expanded its senior care services to 75 cities across China. The insurer also plans to launch premium senior care facilities in five cities starting in 2025.
These efforts have bolstered Ping An’s market position, with approximately 70% of life insurance NBV derived from customers utilizing its health or senior care services.
Looking ahead, Ping An plans to deepen its focus on combining financial services with health and senior care solutions.
The company expects growth opportunities to arise from China’s evolving insurance market and remains committed to enhancing cross-selling capabilities within its 240 million-strong retail customer base.
Ping An intends to sustain its momentum by leveraging technology and expanding its integrated ecosystem of services, aiming to balance long-term growth with operational efficiency.
