for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

UPDATE 1-Ping An Insurance sees first quarterly profit rise in a year

* Q3 net profit up year on year

* Retail customers up 7% at end-Sept vs Jan

* Warns demand still weaker than before pandemic (Adds detail, background)

BEIJING/SHANGHAI, Oct 27 (Reuters) - Ping An Insurance Group Co of China Ltd on Tuesday reported a 7.74% rise in net profit, its first quarterly profit increase in a year, as the country’s largest insurer by market value attracted more retail customers.

Net profit rose to 34.4 billion yuan ($5.12 billion) in the three months to September 30 from 31.9 billion yuan a year earlier, Ping An said in a stock market filing in Hong Kong on Tuesday.

It reported 214 million retail customers as of the end of September, up 7% from January.

And in the first nine months of 2020, Ping An’s life and health insurance business, its main profit driver, generated 75.45 million yuan in operating profit, up 9.2% year on year.

However, its nine-month net profit fell 20.9% as COVID-19 adversely affecting its long-term protection business.

“Domestic consumption demand was still recovering, large-scale offline events were still restricted in China, and offline face-to-face meetings had not increased to pre-epidemic levels yet,” Ping An said.

In the short-term demand for insurance will “still be weaker than before the epidemic”, it said.

Ping An Insurance Group is the controlling shareholder of Ping An Bank, which reported a 6.1% rise in third-quarter net profit.

In September it said it had become British bank HSBC Holdings’ biggest shareholder, with an 8% stake.

The company’s lending arm Lufax Holding Ltd, one of China’s largest online wealth management platforms, this month filed to list in the United States, aiming to raise about $3 billion, Reuters reported.

Shanghai shares of Ping An have fallen 5.1% this year versus a 2.5% drop in the blue-chip China financials index.

The group has a market value of $212.3 billion as of Tuesday.

Breakingviews

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.


Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up