Ping An Navigates Market Volatility with Resilient Q1 Earnings

Ping An Insurance Group, one of China’s financial giants, delivered a cautiously optimistic Q1 2025 report, showcasing steady growth despite lingering economic headwinds. The company reported a 2.4% year-on-year rise in operating profit attributable to shareholders of the parent company to RMB 46.9 billion, while its life and health new business value (NBV) surged 34.9% YoY to RMB 11.8 billion. Total assets under the group also breached the RMB 13 trillion milestone, marking its ascent as a key player in China’s financial ecosystem.

A Modest Profit Growth, But Underlying Strength
The 2.4% operating profit growth, while modest, reflects Ping An’s resilience in a slowing economy. Retail banking and wealth management segments contributed significantly, with revenue rising 5.2% YoY, driven by asset management fee income and wealth product sales. However, the property and casualty insurance division faced pressure from pricing competition, with underwriting profit dipping 3.1% YoY. This underscores the need for continued cost discipline and innovation to offset margin pressures.

Life & Health NBV: A Bright Spot in Challenging Times
The standout performance came from Ping An’s life and health business, where NBV growth of 34.9% YoY signaled a strong recovery in demand for protection and savings-oriented products. This rebound aligns with China’s post-pandemic shift toward long-term health planning and wealth preservation. The company attributed the surge to product innovation—such as its “Health + Retirement” offerings—and improved salesforce productivity.

Notably, Ping An’s tech-driven approach, including AI underwriting and digital customer service, reduced costs and enhanced customer engagement. This efficiency is critical as regulatory reforms in the insurance sector push companies to focus on value over volume.

Total Assets Cross RMB 13 Trillion: Scale and Diversification
Ping An’s total assets surpassed RMB 13 trillion in Q1 2025, a 7.6% increase from the end of 2024. This expansion reflects its diversified portfolio, spanning banking, asset management, and technology ventures. The company’s asset management division, which oversees over RMB 6.5 trillion in assets, has increasingly focused on alternative investments such as green energy and infrastructure—a strategic move to capitalize on China’s policy push for sustainable growth.

Challenges Ahead: Economic Slowdown and Regulatory Hurdles
While Ping An’s results are encouraging, risks remain. China’s Q1 2025 GDP grew only 4.5% YoY, below expectations, with consumer spending and private investment lagging. A weaker economic backdrop could strain insurance premiums and loan repayment rates. Additionally, regulatory scrutiny over data privacy and tech investments—Ping An’s tech arm, Ping An Technology, is a key growth driver—adds compliance costs.

The stock market has been skeptical: Ping An’s shares (02318.HK) have underperformed the broader market year-to-date, down 6.3% compared to the Shanghai Composite’s 3.2% gain.

Conclusion: A Solid Foundation for Long-Term Growth
Ping An’s Q1 results highlight its ability to navigate a complex environment, with its life and health division leading the charge. The 34.9% NBV growth and tech-enabled efficiency gains suggest the company is well-positioned to capitalize on China’s long-term trends in health and wealth management. Its RMB 13 trillion asset base provides a robust capital cushion to weather near-term macroeconomic turbulence.

However, investors should remain cautious. While Ping An’s valuation is now at a 5-year low—trading at 0.65x price-to-book ratio—its recovery hinges on sustained economic normalization and regulatory clarity. For now, the insurer’s diversified model and innovation-driven strategy make it a compelling long-term bet in a sector critical to China’s financial stability.