Ping An Insurance (Group) Co. of China Ltd.

08/24/2022 | Press release | Distributed by Public on 08/24/2022 02:38

2022 Interim Results Financial Highlights

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: [email protected], [email protected]

Key Indicators

Ping An Insurance (Group) Company of China, Ltd.
For the six months ended June 30, 2022/ As at June 30, 2022 For the six months ended June 30, 2021/ As at December 31, 2021 Change 2020/ Dec.31, 2020 2019/ Dec.31, 2019 2018/ Dec.31, 2018 2017/ Dec.31, 2017
Customer Development
Number of internet users (in million) 668.45 647.32 3.3%, YTD 598.04 515.50 443.59 429.51
Number of retail customers (in million) 225.16 221.91 1.5%, YTD 213.44 198.31 180.22 156.90
Number of contracts per customer (contract) 2.95 2.91 1.4%, YTD 2.81 2.67 2.54 2.38
Operating profit per customer (in RMB) 335.04 318.93 5.1%, YoY 576.15 619.24 542.28 474.99
Proportion of retail customers holding multiple contracts with different subsidiaries (%) 39.8 39.8 -, YTD 38.7 37.7 34.3 29.6
The Group (in RMB million, unless otherwise stated)
Operating profit attributable to shareholders of the parent company 85,340 81,836 4.3%, YoY 139,470 132,955 112,573 94,708
Operating ROE (annualized, %) 20.4 21.0 -0.6 pps, YoY 19.5 21.7 21.9 22.0
Basic operating earnings per share (in RMB) 4.88 4.64 5.2%, YoY 7.89 7.48 6.31 5.31
Interim dividend per share (in RMB) 0.92 0.88 4.5%, YoY 2.20 2.05 1.72 1.50
Net profit attributable to shareholders of the parent company 60,273 58,005 3.9%, YoY 143,099 149,407 107,404 89,088
Equity attributable to shareholders of the parent company 848,719 812,405 4.5%, YTD 762,560 673,161 556,508 473,351
Group comprehensive solvency margin ratio(1)(%) 235.9 233.5 2.4 pps, YTD 236.4 229.8 216.4 214.9
Total assets 10,696,148 10,142,026 5.5%, YTD 9,527,870 8,222,929 7,142,960 6,493,075
Total liabilities 9,578,885 9,064,303 5.7%, YTD 8,539,965 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 (annualized, %) 13.2 14.9 -1.7 pps, YoY 14.5 25.0 30.8 35.5
Embedded value 906,619 876,490 3.4%, YTD 824,574 757,490 613,223 496,381
Value of first half year's new business 19,573 27,387 -28.5%, YoY 49,575 75,945 72,294 67,357
Operating profit 58,993 50,230 17.4%, YoY 93,666 88,950 71,345 52,824
Residual margin 924,726 940,733 -1.7%, YTD 960,183 918,416 786,633 616,319
Comprehensive solvency margin ratio - Ping An Life(1) (%) 245.3 230.4 14.9 pps, YTD 241.8 231.6 218.8 234.1
Property and casualty insurance business (in RMB million, unless otherwise stated)
Net profit 8,381 10,791 -22.3%, YoY 16,159 22,808 12,274 13,372
Combined ratio (%) 97.3 95.9 1.4 pps, YoY 99.1 96.4 96 96.2
Comprehensive solvency margin ratio - Ping An P&C(1) (%) 217.5 278.4 -60.9 pps, YTD 241.4 259.2 223.8 217.5
Banking business (in %, unless otherwise stated)
Net profit (in RMB million) 22,088 17,583 25.6%, YoY 28,928 28,195 24,818 23,189
Net interest margin (annualized) 2.76 2.83 -0.07 pps, YoY 2.88 2.95 2.35 2.37
Cost-to-income ratio 26.46 27.35 -0.89 pps, YoY 29.11 29.61 30.32 29.89
Non-performing loan ratio 1.02 1.02 -, YTD 1.18 1.65 1.75 1.70
Provision coverage ratio 290.06 288.42 1.64 pps, YTD 201.40 183.12 155.24 N/A
Core tier 1 capital adequacy ratio 8.53 8.60 -0.07 pps, YTD 8.69 9.11 8.54 8.28
Asset management business (in RMB million, unless otherwise stated)
Net profit 5,238 8,817 -40.6%, YoY 12,292 10,415 13,709 13,583
Technology business (in RMB million, unless otherwise stated)
Operating profit 5,304 6,962 -23.8%, YoY 8,221 4,661 7,748 5,488
Notes：
(1) The data as of June 30, 2022 is computed in accordance with the C-ROSS Phase II Rules, while the data as of December 31, 2021 is computed in accordance with the C-ROSS Phase I Rules.
(2) Some indicators have been disclosed for less than five years. Certain figures have been reclassified or restated to conform to relevant periods'presentation.
(3) Figures may not match the calculation due to rounding.
Copyright Ping An Group 2022

Profit & Loss

Ping An Insurance (Group) Company of China, Ltd.
1. Operating profit of the Group (Table A)
2022
For the six months ended June 30 (in RMB million) Life and health insurance business Property and casualty insurance business Banking business Asset management business Technology business Other Businesses and elimination The Group
Table B Table C Table D
Net profit attributable to shareholders of the parent company 33,760 8,343 12,802 4,400 4,480 (3,512) 60,273
Net profit attributable to non-controlling interests 328 38 9,286 838 395 518 11,403
Net profit (A) 34,088 8,381 22,088 5,238 4,875 (2,994) 71,676
Excluding:
Short-term investment variance (B) (17,932) - 0 - 0 - 0 - 0 - 0 (17,932)
Impact of discount rate change (C) (6,972) - 0 - 0 - 0 - 0 - 0 (6,972)
Impact of one-off material non-operating items and others (D) - 0 - 0 - 0 - 0 (429) - 0 (429)
Operating profit (E=A-B-C-D) 58,993 8,381 22,088 5,238 5,304 (2,994) 97,010
Operating profit attributable to shareholders of the parent company 58,398 8,343 12,802 4,400 4,909 (3,512) 85,340
Operating profit attributable to non-controlling interests 595 38 9,286 838 395 518 11,670
2021
For the six months ended June 30 (in RMB million) Life and health insurance business Property and casualty insurance business Banking business Asset management business Technology business Other Businesses and elimination The Group
Table B Table C Table D
Net profit attributable to shareholders of the parent company 29256 10741 10191 8,008 2,644 (2,835) 58,005
Net profit attributable to non-controlling interests 529 50 7,392 809 726 452 9,958
Net profit (A) 29,785 10,791 17,583 8,817 3,370 (2,383) 67,963
Excluding:
Short-term investment variance (B) (15,245) - 0 - 0 - 0 - 0 - 0 (15,245)
Impact of discount rate change (C) (5,200) - 0 - 0 - 0 - 0 - 0 (5,200)
Impact of one-off material non-operating items and others (D) - 0 - 0 - 0 - 0 (3,592) - 0 (3,592)
Operating profit (E=A-B-C-D) 50,230 10,791 17,583 8,817 6,962 (2,383) 92,000
Operating profit attributable to shareholders of the parent company 49,495 10,741 10,191 8,008 6,236 (2,835) 81,836
Operating profit attributable to non-controlling interests 735 50 7,392 809 726 452 10,164
Notes:
(1) The life and health insurance business represents the results of three subsidiaries, namely Ping An Life, Ping An Annuity, and Ping An Health Insurance. The property and casualty insurance business represents the results of Ping An P&C. The banking business represents the results of Ping An Bank. The asset management business represents the results of subsidiaries that engage in asset management business including Ping An Securities, Ping An Trust, Ping An Asset Management, Ping An Financial Leasing, and Ping An Overseas Holdings. The technology business represents the results of subsidiaries, associates and joint 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)
For the six months ended June 30 (in RMB million) 2022 2021 Change (%) Notes
Release of residual margin (A) 40,757 41,589 (2.0) A
Return on net worth (B) 8,121 7,133 13.9
Spread income (C) 2,735 2,125 28.7
Operating variance and others (D) 11,932 7,011 70.2
Operating profit before tax (E=A+B+C+D) 63,546 57,858 9.8
Income tax (F) (4,553) (7,629) (40.3)
Operating profit after tax (G=E+F) 58,993 50,230 17.4 See Table A
Short-term investment variance (H) (17,932) (15,245) 17.6
Impact of discount rate change (I) (6,972) (5,200) 34.1
Impact of one-off material non-operating items (J) - 0 - 0 N/A
Net profit (K=G+H+I+J) 34,088 29,785 14.4
Note: Figures may not match the calculation due to rounding.
2.2 The movement of residual margin of life and health insurance business
For the six months ended June 30 (in RMB million) 2022 2021 Change (%) Notes
Openning residual margin 940,733 960,183 (2.0)
Contribution from new business 22,878 41,480 (44.8)
Expected interest growth 17,989 18,287 (1.6)
Release of residual margin (40,757) (41,589) (2.0) A
Lapse variances and others (16,116) (10,148) 58.8
Closing residual margin 924,726 968,212 (4.5)
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, 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)
Jun. 30, 2022 924,726 (1.7)
Note: The half-yearly change in the balance of residual margin is calculated on a year-to-date basis.
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(%)
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
2021H1 41,589 71 3.1
2021 82,488 71 1.1
2022H1 40,757 69 (2.0)
Note: The above figures are data of Ping An Life for 2013-2015 and data of the L&H business for 2016-2022. The change in the half-yearly release of residual margin is calculated on a year-on-year basis.
3. Results of property & casualty business (Table C)
For the six months ended June 30 (in RMB million) 2022 2021 Change (%) Notes
Premium income 146,792 133,313 10.1
Net earned premiums 137,776 127,255 8.3 B
Claim expenses (95,216) (85,182) 11.8
Commission expenses of insurance operations (16,832) (15,594) 7.9
Administrative expenses (24,668) (23,855) 3.4
Reinsurance commission revenue 2,613 2,586 1.0
Underwriting profit 3,673 5,210 (29.5) D = B X (1- C)
Combined ratio (%) 97.3 95.9 1.4 pps C
Total investment income 6,040 7,973 (24.2) E = F X G
Average investment assets 351,041 318,510 10.2 F
Total investment yield (unannualized, %) 1.7 2.5 -0.8 pps G
Total investment yield (annualized, %) 3.0 3.9 -0.9 pps
Other net revenue and expenses (353) (419) (15.8)
Profit before tax 9,360 12,764 (26.7)
Income tax (979) (1,973) (50.4)
Net profit 8,381 10,791 (22.3) See Table A
3.1 Operating data by product type
For the six months ended June 30, 2022 (in RMB million) Insured amount Premium income Net earned premium Claim expenses Underwriting profit Combined ratio Reserve liabilities
Auto insurance 88,385,419 95,502 92,169 64,502 5,123 94.4% 165,730
Liability insurance 1,425,771,011 12,402 9,142 5,652 (499) 105.5% 21,206
Guarantee insurance 146,354 10,558 17,037 16,080 (2,207) 113.0% 44,678
Accidental injury insurance 1,047,591,271 8,898 8,710 3,379 634 92.7% 12,460
Corporate property and casualty insurance 11,476,980 4,878 2,254 1,325 194 91.4% 10,191
4. Results of banking business (Table D)
For the six months ended June 30 (in RMB million) 2022 2021 Change (%) Notes
Net interest revenue 64,059 59,361 7.9
Average balance of interest-earning assets 4,680,271 4,224,570 10.8
Net interest margin (annualized, %) 2.76 2.83 -0.07 pps
Net non-interest revenue 27,963 25,319 10.4
Including: Net fee and commission revenue 16,062 17,398 (7.7)
Other net non-interest revenue 11,901 7,921 50.2
Revenue 92,022 84,680 8.7 H
General and administrative expenses (24,349) (23,160) 5.1 I = - (H X J)
Cost-to-income ratio (%) 26.46 27.35 -0.89 pps J
Tax and surcharges (867) (820) 5.7
Operating profit before impairment losses on assets 66,806 60,700 10.1
Impairment losses on credit and other assets (38,845) (38,285) 1.5
Including: Loan impairment loss (29,831) (25,121) 18.7
Average balance of loans and advances (including discounted bills) 3,123,276 2,759,354 13.2
Credit costs (annualized, %) 1.93 1.84 0.09 pps
Other expenses (178) (74) 140.5
Profit before tax 27,783 22,341 24.4
Income tax (5,695) (4,758) 19.7
Net profit 22,088 17,583 25.6 See Table A
4.1 Loan quality
(in RMB million) June 30, 2022 December 31, 2021 Change (%)
Total loans and advances 3,225,095 3,063,448 5.3
Pass 3,149,680 2,988,759 5.4
Special mention 42,656 43,414 (1.7)
Non-performing loan ratio (%) 1.02 1.02 - 0
Percentage of loans more than 60 days overdue (%) 0.90 0.87 0.03 pps
Percentage of loans more than 90 days overdue (%) 0.75 0.74 0.01 pps
Percentage of special mention loans (%) 1.32 1.42 -0.10 pps
Impairment provision balance (95,021) (90,202) 5.3
Provision to loan ratio (%) 2.95 2.94 0.01 pps
Provision coverage ratio (%) 290.06 288.42 1.64 pps
5. Results of trust business
For the six months ended June 30 (in RMB million) 2022 2021 Change (%) Notes
Revenue 2,149 2,759 (22.1)
Including: Fees and commission revenue 1,176 1,961 (40.0)
Net profit 1,296 1,254 3.3 See Table A
5.1 Assets held in trust
(in RMB million) June 30, 2022 December 31, 2021 Change (%)
Investment category 341,174 256,750 32.9
Financing category 95,142 108,904 (12.6)
Administrative category 96,559 95,658 0.9
Total 532,875 461,312 15.5
6. Results of securities business
For the six months ended June 30 (in RMB million) 2022 2021 Change (%) Notes
Revenue 9,947 9,307 6.9
Net profit 2,421 1,748 38.5 See Table A
Copyright Ping An Group 2022

Balance Sheet

Ping An Insurance (Group) Company of China, Ltd.
(in RMB million) June 30, 2022 December 31, 2021 Change (%)
Total assets 10,696,148 10,142,026 5.5
Total liabilities 9,578,885 9,064,303 5.7
Shareholders' equity 1,117,263 1,077,723 3.7
Equity attributable to shareholders of the parent company 848,719 812,405 4.5
Total shares (in million) 18,280 18,280 - 0
Net asset value per share attributable to shareholders of the parent company (in RMB) 46.43 44.44 4.5
Investment portfolio of insurance funds 4,270,779 3,916,412 9.0
Group core capital 1,365,833 1,861,487
Group actual capital 1,803,788 1,899,989
Group minimum capital 764,671 813,781
Group core solvency margin ratio (%) (regulatory requirement ≥50%) 178.6 228.7
Group comprehensive solvency margin ratio (%) (regulatory requirement ≥100%) 235.9 233.5
Solvency margin Ping An Life Ping An Annuity Ping An Health Insurance Ping An P&C
(in RMB million) June 30, 2022 (under C-ROSS Phase II Rules) December 31, 2021 (under C-ROSS Phase I Rules) June 30, 2022 (under C-ROSS Phase II Rules) December 31, 2021 (under C-ROSS Phase I Rules) June 30, 2022 (under C-ROSS Phase II Rules) December 31, 2021 (under C-ROSS Phase I Rules) June 30, 2022 (under C-ROSS Phase II Rules) December 31, 2021 (under C-ROSS Phase I Rules)
Core capital 510,103 1,026,410 25,677 11,568 6,510 4,307 105479 112277
Actual capital 909,318 1,046,410 28,335 11,568 7,697 4,307 132,837 125,777
Minimum capital 370,698 454,175 8,120 5,955 2,778 2,097 61,068 45,171
Core solvency margin ratio (%) (regulatory requirement ≥50%) 137.6 226.0 316.2 194.3 234.3 205.4 173 249
Comprehensive solvency margin ratio (%) (regulatory requirement ≥100%) 245.3 230.4 348.9 194.3 277.1 205.4 217.5 278.4
Notes:
(1) Core solvency margin ratio = core capital / minimum capital; comprehensive solvency margin ratio = actual capital / minimum capital.
(2) The data as of June 30, 2022 is computed in accordance with the C-ROSS Phase II Rules, while the data as of December 31, 2021 is computed in accordance with the C-ROSS Phase I Rules.
(3) For details of subsidiaries' solvency margin, please visit the Company's website (www.pingan.cn).
(4) Figures may not match the calculation due to rounding.
Ping An Bank capital adequacy ratio June 30, 2022 December 31, 2021 Change (%)
Total risk weighted assets (in RMB million) 3,756,546 3,566,465 5.3
Core tier 1 capital adequacy ratio (%) (regulatory requirement≥7.5%) 8.53 8.60 -0.07 pps
Tier 1 capital adequacy ratio (%) (regulatory requirement≥8.5%) 10.39 10.56 -0.17 pps
Capital adequacy ratio (%) (regulatory requirement≥10.5%) 13.09 13.34 -0.25 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 solvency margin ratio Core solvency margin ratio Comprehensive solvency margin ratio
June 30, 2022 Ping An Group Ping An Life Ping An P&C Ping An Group Ping An Life Ping An P&C
Base case 178.6% 137.6% 172.7% 235.9% 245.3% 217.5%
50 bps decline in interest rate 165.4% 110.6% 173.3% 220.2% 211.7% 218.1%
10% decrease in fair value of equity assets 173.5% 127.8% 170.7% 231.8% 238.3% 215.8%
Segment assets (in RMB million) June 30, 2022 December 31, 2021 Change (%)
Life and health insurance business 4,045,250 3,716,504 8.8
Property and casualty insurance business 508,690 470,407 8.1
Banking business 5,108,776 4,921,380 3.8
Asset management business 1,004,065 1,031,066 (2.6)
Technology business 151,167 149,785 0.9
Other businesses and elimination (121,800) (147,116) (17.2)
The Group 10,696,148 10,142,026 5.5
Segment liabilities (in RMB million) June 30, 2022 December 31, 2021 Change (%)
Life and health insurance business 3,705,195 3,397,184 9.1
Property and casualty insurance business 387,222 355,778 8.8
Banking business 4,696,678 4,525,932 3.8
Asset management business 863,549 884,597 (2.4)
Technology business 29,946 30,898 (3.1)
Other businesses and elimination (103,705) (130,086) (20.3)
The Group 9,578,885 9,064,303 5.7
Segment equity (in RMB million) June 30, 2022 December 31, 2021 Change (%)
Life and health insurance business 340,055 319,320 6.5
Property and casualty insurance business 121,468 114,629 6.0
Banking business 412,098 395,448 4.2
Asset management business 140,516 146,469 (4.1)
Technology business 121,221 118,887 2.0
Other businesses and elimination (18,095) (17,030) 6.3
The Group 1,117,263 1,077,723 3.7
Equity attributable to shareholders of the parent company (in RMB million) June 30, 2022 December 31, 2021 Change (%)
Life and health insurance business 316,629 296,877 6.7
Property and casualty insurance business 120,715 113,898 6.0
Banking business 209,868 200,217 4.8
Asset management business 114,620 115,843 (1.1)
Technology business 102,987 100,697 2.3
Other Businesses and elimination (16,100) (15,127) 6.4
The Group 848,719 812,405 4.5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(in RMB million) June 30, 2022 December 31, 2021
Assets (Unaudited) (Audited)
Cash and amounts due from banks and other financial institutions 705,116 584,995
Balances with the Central Bank 310,094 308,348
Financial assets purchased under reverse repurchase agreements 36,783 61,429
repurchase agreements
Premium receivables 80,995 79,834
Accounts receivable 28,231 26,628
Derivative financial assets 28,740 30,957
Reinsurers' share of insurance liabilities 24,890 26,852
Policy loans 183,975 178,298
Finance lease receivable 195,913 200,701
Loans and advances to customers 3,139,925 2,980,975
Financial assets at fair value through profit or loss 1,508,583 1,426,677
Financial assets at amortized cost 2,973,698 2,768,995
Debt financial assets at fair value through other comprehensive income 405,413 428,530
Equity financial assets at fair value through other comprehensive income 277,704 268,215
Investments in associates and joint ventures 282,715 284,061
Statutory deposits for insurance operations 14,202 12,606
Investment properties 99,027 86,041
Property and equipment 44,629 49,758
Intangible assets 73,669 68,462
Right-of-use assets 12,148 14,185
Deferred tax assets 74,234 65,360
Other assets 166,899 154,117
Policyholder account assets in respect of insurance contracts 24,163 31,847
Policyholder account assets in respect of investment contracts 4,402 4,155
Total assets 10,696,148 10,142,026
Equity and liabilities
Equity
Share capital 18,280 18,280
Reserves 239,740 234,186
Treasury shares (10,996) (9,895)
Retained profits 601,695 569,834
Equity attributable to owners of the parent 848,719 812,405
Non-controlling interests 268,544 265,318
Total equity 1,117,263 1,077,723
Liabilities
Due to banks and other financial institutions 796,376 797,646
Financial liabilities at fair value through profit or loss 99,608 57,376
Derivative financial liabilities 31,799 35,049
Assets sold under agreements to repurchase 282,490 127,477
Accounts payable 6,444 6,663
Income tax payable 12,991 16,247
Insurance payables 123,098 150,767
Policyholder dividend payable 69,894 67,276
Customer deposits and payables to brokerage customers 3,317,193 3,002,049
Bonds payable 927,063 1,097,523
Insurance contract liabilities 3,461,164 3,261,354
Investment contract liabilities for policyholders 73,832 72,839
Lease liabilities 12,620 14,208
Deferred tax liabilities 13,724 13,605
Other liabilities 350,589 344,224
Total liabilities 9,578,885 9,064,303
Total equity and liabilities 10,696,148 10,142,026
Copyright Ping An Group 2022

Embedded Value

Ping An Insurance (Group) Company of China, Ltd.
1. Key Data Summary
(in RMB million) For the six months ended June 30, 2022/ As at June 30, 2022 For the six months ended June 30, 2021/ As at December 31, 2021 Change (%)
EV of Group 1,441,261 1,395,509 3.3
EV of L&H 906,619 876,490 3.4
L&H operating ROEV (annualized, %) 13.2 14.9 -1.7 pps
Value of first half year' s new business after cost capital (NBV) 19,573 27,387 (28.5)
Long-run investment return assumption (%) 5.0 5.0 - 0
Risk discount rate (%) 11.0 11.0 - 0
2. EV Movement Analysis
2.1 EV Movement Analysis
For the six months ended June 30 (in RMB million) 2022 Notes
Opening EV of L&H 876,490 A
L&H EV operating profit 57,850 B = C+D+E+F
Including: Expected return on opening EV 35,422 C
NBV post-risk diversification benefits 22,189 D
Operating assumptions and model changes (890) E
Operating variances and others 1,129 F
Economic assumptions changes - 0
Market value adjustment 217
Investment return variance (9,091)
One-off non-operating item and others - 0
Shareholder dividends (33,837)
Employee stock ownership plan (2,080)
Capital Injection 17,070
L&H Closing EV 906,619
Other business ANA 534,643
Closing EV of Group 1,441,261
Note: Figures may not match the calculation due to rounding.
2.2 Operating return of EV (operating ROEV)
For the six months ended June 30 2022 2021 Notes
EV operating profit of L&H (in RMB million) 57,850 61,304 B
Operating ROEV of L&H (annualized, %) 13.2 14.9 G = B / A × 2
Note: Figures may not match the calculation due to rounding.
3. NBV Relevant Data
3.1 NBV by segment
For the six months ended June 30 (in RMB million) FYP used to calculate value of new business NBV
2022 2021 Change (%) 2022 2021 Change (%)
Retail business 59,284 65,955 (10.1) 19,356 27,081 (28.5)
Agency 44,720 52,757 (15.2) 16,434 23,684 (30.6)
Long-term protection 4,144 9,252 (55.2) 3,880 9,326 (58.4)
Protection & Saving hybrid (long-PPP) 9,558 10,695 (10.6) 4,530 5,965 (24.1)
Protection & Saving hybrid (short-PPP) 28,508 30,202 (5.6) 5,928 6,356 (6.7)
Short-term 2,510 2,609 (3.8) 2,096 2,036 2.9
Tele, internet and others 8,068 8,718 (7.5) 1,861 2,475 (24.8)
Bancassurance 6,497 4,480 45.0 1,060 923 14.9
Group business 16,848 21,686 (22.3) 217 306 (28.9)
Total 76,132 87,641 (13.1) 19,573 27,387 (28.5)
Notes:
(1) "PPP" stands for Premium Payment Period.
(2) Tele, internet and others include telemarketing, internet marketing and Ping An Health Insurance's retail business.
(3) 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.
(4) Figures may not match the calculation due to rounding.
3.2 NBV margin by segment
For the six months ended June 30 By FYP (%) By ANP (%)
2022 2021 Change 2022 2021 Change
Retail business 32.6 41.1 -8.4 pps 38.6 46.5 -7.9 pps
Agency 36.7 44.9 -8.1 pps 44.7 52.0 -7.2 pps
Long-term protection 93.6 100.8 -7.2 pps 94.7 101.3 -6.6 pps
Protection & Saving hybrid (long-PPP) 47.4 55.8 -8.4 pps 47.4 55.8 -8.4 pps
Protection & Saving hybrid (short-PPP) 20.8 21.0 -0.3 pps 28.5 27.4 1.1 pps
Short-term 83.5 78.1 5.4 pps 85.7 81.4 4.3 pps
Tele, internet and others 23.1 28.4 -5.3 pps 24.3 28.8 -4.6 pps
Bancassurance 16.3 20.6 -4.3 pps 19.1 23.7 -4.6 pps
Group business 1.3 1.4 -0.1 pps 1.6 2.0 -0.4 pps
Total 25.7 31.2 -5.5 pps 30.8 37.4 -6.5 pps
Notes:
(1) ANP (annualised new premium) is calculated as the sum of 100 percent of annualised first year premiums and 10 percent of single premiums.
(2) Figures may not match the calculation due to rounding.
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