Ping An Insurance, China’s largest insurance company reported resilient Q1 earnings late last week despite a huge impairment. The Shenzhen-based company reported an operating profit of RMB 39.12bn ($6bn) and net profit of RMB 27.22bn ($4.2bn), up 8.9% and 4.5% respectively over the same quarter last year. During the quarter, Ping An made impairment provisions and valuation adjustments related to its equity and debt holdings in developer China Fortune Land Development (CFLD), which defaulted on its offshore debt last month. On a post tax basis, the Q1 impact from CFLD was RMB 10bn ($1.54bn). As at the end of last year, Ping An held 25% of CFLD’s ordinary shares and in February this year, the company revealed a total exposure of RMB 54bn ($8.32bn) to the distressed developer across equity and debt. It’s Life & Health insurance saw new business value (NBV) grow by 15.4% YoY to RMB 18.98bn ($2.93bn). It’s property and casualty segment on the other saw premium income fall 8.8% to RMB 66.18bn ($10.2bn) but reported 15.2% higher operating profits of RMB 5.12 ($790mn).
Ping An’s 2.75% 2025s traded lower by 0.4 points to 102.14 yielding 2.2% currently.
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