SHANGHAI (Dow Jones)--Ping An Insurance (Group) Co. of China (2318.HK) said Thursday its first-quarter net profit rose 94% on year on stronger demand for its life insurance and banking services as well as higher investment returns.
China's second-largest life insurer by premiums, after China Life Insurance Co., said its net profit for the three months ended March 31 was CNY4.55 billion, up from CNY2.35 billion a year earlier.
Its gross premiums and policy fees totaled CNY48.09 billion in the first quarter, up from CNY30.79 billion a year earlier.
In a statement, Ping An also said its first-quarter investment income rose 12% to CNY6.12 billion from CNY5.45 billion a year earlier.
Without giving a specific forecast, the Shenzhen-headquartered life insurer said uncertainties surrounding China's macroeconomic policy controls, the domestic stock market and rising costs induced by inflation expectations will put greater pressure on the company. "It will also bring about uncertainties over the sustainability of the company's results during the next three quarters," Ping An said.
The results come as Ping An has been working to expand in its home market after incurring a $3.3 billion loss from its investment in Fortis NV in 2008. Chairman Peter Ma has said he envisions turning the insurer into a diversified financial conglomerate, with equal strength in insurance, banking and asset management.
As part of its effort to beef up its banking business, Ping An is planning to boost its stake in medium-sized Shenzhen Development Bank Co. (000001.SZ) to 30% from 5% for CNY22.13 billion. Shareholders of both companies have approved the deal, which is still subject to regulatory approval.
-By Aries Poon and Shen Hong, Dow Jones Newswires; 852-2832-2332; aries.poon@dowjones.com
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