Ping An Insurance

Ping An Insurance Group started off in 1988 as a property and casualty insurance company, later diversifying into life insurance, banking, asset management, brokerage services, and private equity investing. The company's embrace of technology through its utilization of an array of financial technology platforms and services for customers has made it a diversified financial conglomerate.[11]

Ping An is one of the few companies in China with licenses to offer a full suite of financial services, including insurance, banking, trusts, securities, futures and financial leasing.[12]

Since the mid-1990s, Ping An has been diversifying into financial services from its core business of insurance, and has subsequently taken investments from overseas firms such as Morgan Stanley and Goldman Sachs in 1994. In 2002 HSBC took a large equity interest in Ping An.[13] In early 2008, Ping An agreed to take a 50% share in Fortis Investments, a subsidiary of Fortis,[14] which had taken over ABN AMRO Asset Management as a result of the split up of ABN AMRO in late 2007; the deal was canceled in October 2008.

In June 2009, Ping An became a strategic investor in Shenzhen Development Bank,[15] (now part of Ping An Bank). In 2016, Ping An invested more overseas.[16] In January in 2017, Deputy Head Cai Lifeng resigned for personal reasons.[17]

Ping An is a publicly listed company.[23] It is China's first joint-stock insurance company. Beginning in the 1990s, Ping An took advantage of widening reforms to become the first Chinese financial institution in which foreign firms could own equity: Goldman Sachs and Morgan Stanley were early backers. The company eventually went public in 2004, listing in Hong Kong and subsequently also listed in Shanghai in 2007.[24]

As at 30 June 2020, Charoen Pokphand Group is the biggest investor in Ping An, holding 8.81% stake. Shenzhen Government via Shenzhen Investment Holdings (Chinese: 深圳市投資控股) and Shum Yip Group (Chinese: 深业集团), still owned a combined 6.68% stake (5.27% + 1.41%) as the second largest shareholder.[25]

Ping An has the classification of a civilian-run enterprise. Richard McGregor, author of The Party: The Secret World of China's Communist Rulers,[26] said that "the true ownership of large chunks of its shares remains unclear" and that the ownership of Ping An is a "murky structure".[27] In October 2012, The New York Times reported that relatives and associates of Chinese Premier Wen Jiabao controlled stakes in Ping An worth at least US$2.2 billion in 2007.[28] They paid the equivalent of 40 cents a share, others buying at the same time paid as much as $1.20. Thanks to favorable regulatory treatment and licensing, the firm was able to build a diversified financial firm with interests in insurance, brokerage, and banking.[29] Premier Wen Jiabao's family responded to The New York Time's report, claiming its statement about their family's wealth is "untrue".[30] Two lawyers later released a statement on behalf of Wen's family denying the other claims made, and asserting that the premier's 90-year-old mother has never held a US$120 million of Ping An Insurance's investment, as the paper had reported.[31]

HSBC acquired 48.22% of H shares by means of different HSBC subsidiaries[32] (H share accounted for 34.83% of the share capital as at 31 December 2009,[32] which was later increased to 41.88% in 2015 [33]). HSBC hold 16.80% of total shares of Ping An, making itself the biggest shareholder at 31 December 2009.[32]

On 5 December 2012, HSBC announced to sell their entire 15.57% stake for HK$72.736 billion (approx. US$9.385 billion; HK$59.00 per share) to Thailand conglomerate Charoen Pokphand. The deal would split into two phases, which the latter was subjected to the clearance from China Insurance Regulatory Commission, which would be paid in cash and a loan from China Development Bank to Charoen Pokphand.[34] In February 2013 Charoen Pokphand got the clearance.[35] On 10 May in spite of a lack of loan from the state-owned China Development Bank to Charoen Pokphand,[36][37] the deal was completed.[37][38] According to HSBC, the transaction would increase Tier 1 Capital ratio of the bank for 0.5%, as well as a post-tax gain of US$2.6 billion.[34] HSBC had an above average forecasted CET1 ratio of 8.5% in 2011 European Union bank stress test under the adverse scenario,[39] nevertheless HSBC chose to strengthen its capital by selling Ping An. The actual ratio at 31 December 2012 was 12.3%, increased 2.2% year-to-yearly.[40]

Since 24 June 2004 Ping An has been listed on the Stock Exchange of Hong Kong (subsidiary of Hong Kong Exchanges and Clearing) as SEHK: 2318. Since 1 March 2007, it has a listing on the Shanghai Stock Exchange as SSE: 601318.

Ping An was chosen as an index stock of the Hang Seng China Enterprises Index (HSCEI), replacing Anhui Expressway in 2004.[41]

The Hang Seng Index Services Company announced on 11 May 2007 that Ping An would join as Hang Seng Index Constituent Stock (Blue Chip Stock) effective on 4 June 2007.[42]

Ping An has operations across all of the People's Republic of China, and in Hong Kong and Macau through Ping An Insurance Overseas. Lufax, OneConnect and Ping An Good Doctor have now expanded overseas. OneConnect is in 10 countries outside of China, serving about 27 top institutional financials.[43]

• Ping An Bank

• News website about Ping An systems upgrade