Ping An

Ping An Insurance (Group) Co. of China Ltd.  surged 3 percent to HK$109.90 after UBS raised its target price for the life insurer's shares to HK$122.2 from HK$78 and maintained a buy rating for the stock due to sustainable growth of its life insurance business.

Ping An RT HK = 10107,1 = +,37%  

Ping An turns lower in HK after early gains driven by Q3 results

Ping An Insurance shares turned lower in late morning trade in Hong Kong, wiping out early gains driven by the company's strong third-quarter earnings.

Dealers said Ping An's share price had surged about 90 pct since mid-August and the company's latest results announcement provided a good excuse for investors to lock in profits.

The mainland-based insurer reported yesterday that its third-quarter net profit soared 347.5 pct year-on-year to 3.616 bln yuan on strong growth in its three core businesses -- insurance, banking and asset management.

As of 11.14 am, Ping An was down 0.30 hkd or 0.28 pct at 108.20, off a low of 106.70 and a high of 110.50.

The Hang Seng Index was up 297.21 points or 1.0 pct at 30,151.70.

""The weakness today in Ping An's share price is due merely to modest profit-taking after strong gains have been made since the middle of August,"" said Timothy Li, an analyst at Dao Heng Securities.

""Its share price has risen about 90 pct since mid-August and I expect more upside in the short- to medium-term, especially because of its strong Q3 results and investors' expectations that it will ultimately achieve its goal of turning itself into an integrated financial institution,"" he said.

He also said that Ping An is likely to benefit significantly from China's direct investment scheme when it finally gets implemented.

""Ping An's A-share is trading today at about 140 yuan compared to its H-share at around 108 hkd. With this substantial price differential, I expect scores of China investors moving some of their exposure to PIng An's A-shares into the cheaper H-shares,"" he said.
 

2318 PING AN
87.200 Change: 6.150     6.59%
Turnover: 1442.45 M
2007/11/12 12:30 Volume: 16.32 M  

China's Ping An Insurance Jan-Oct premium income 83.17 bln yuan

Ping An Insurance (Group) Co of China Ltd said the unaudited premium income from four of its subsidiaries totaled 83.17 bln yuan in the first ten months to October, under Chinese accounting standards.

Of the units, Ping An Life Insurance Co had premium income of 65.19 bln yuan during the period, while Ping An Property & Casualty Insurance Co recorded 17.92 bln yuan, the group said in a statement filed with the Hong Kong stock exchange.

Premium income at Ping An's health unit was 1.48 mln yuan while its annuity unit booked premium income of 55.47 mln yuan.

Ping An did not provide comparative figures.  

 

 

China's Ping An Pays $2.7 Billion for Stake in Fortis

Ping An Insurance (Group) Co. bought a 4.2 percent stake in Fortis, Belgium's biggest financial company, for 1.81 billion euros ($2.7 billion) in the largest overseas acquisition by a Chinese insurer.

The shares were purchased on the Brussels and Amsterdam stock exchanges, Ping An, China's second-biggest insurance company, said in a statement today. Fortis invited the company's President Louis Cheung to join the board.

Ping An becomes the second-largest shareholder in Fortis, whose stock slumped 33 percent this year after credit losses and insurance claims damped profit. Chinese state-owned companies spent almost $17 billion on overseas financial purchases in 2007, buying stakes in Barclays Plc, Bear Stearns Cos., Blackstone Group and South Africa's Standard Bank Group Ltd.

``Chinese financial companies are looking for growth through acquisitions outside their core market,'' said Leslie Phang, who helps oversee $1 billion at Commonwealth Private Bank in Singapore. ``These are certainly very attractive investments from both a return and a diversification standpoint.''

Fortis, part of a group that bought ABN Amro Holding NV, is valued at 6.4 times reported earnings, making it the second- cheapest company among Europe's 20 largest banks and insurers, after Deutsche Bank AG, according to data compiled by Bloomberg. Fortis divides its headquarters between Brussels and the Dutch city of Utrecht.

Gaining Access

The market value of Ping An, located in the southern Chinese city of Shenzhen, stands at $96 billion, 60 percent higher than that of Fortis. The rally on China's stock market, the world's best performing, turned Beijing-based PetroChina Co. into the world's biggest company by market value, and made Industrial & Commercial Bank of China Ltd. the largest bank.

Ping An, in which HSBC Holdings Plc holds a 17 percent stake, climbed 7 percent to HK$83.55 in Hong Kong, and added 6.3 percent to 108.80 yuan in Shanghai.

Fortis, in a statement to Hugin wire, said Ping An's investment ``allows it to gain access to high-growth markets, in particular China.''

Ping An bought 95.01 million Fortis shares on the Euronext Brussels and Euronext Amsterdam as of Nov. 27, it said in a release to the Hong Kong stock exchange.

``The deal will realize valuable benefits because of Fortis's and Ping An's shared business model of an integrated banking and insurance platform,'' said Ping An Chairman Peter Ma in the statement. ``Ping An will benefit from Fortis's expertise in cross selling, risk management and innovation in product design.''

Looking Abroad

Fortis's third-quarter earnings from banking stood at 587 million euros, while profit from insurance was 294 million euros.

Ping An is seeking to diversify by assembling a one-stop financial supermarket that will get two-thirds of its revenue from banking, securities and asset management.

In March, Ping An and larger rival China Life Insurance Co. paid a combined 10.8 billion yuan ($1.4 billion) for about 10 percent of China Minsheng Banking Corp., the nation's only privately controlled bank. Ping An bought 89 percent of Shenzhen Commercial Bank last year, and HSBC, Europe's biggest lender, said in February that Ping An was buying its 27 percent stake in Ping An Bank.

China will remain the key focus for Ping An's investments even as it seeks acquisitions abroad, Cheung said June 1.

``Chinese companies have the money to invest, but they cannot be seen to play an influential role in acquisitions,'' said Mark Tan, a portfolio manager at UOB Asset Management in Singapore, which owns shares of Ping An and China Life. Ping An ``kept the purchase to below 5 percent as they're sensitive to the political ramifications of taking too large a stake.''

Spreading Risks

ICBC, which paid $5.6 billion for 20 percent of Johannesburg-based Standard Bank, and Citic Securities, which injected $1 billion into Bear Stearns, promised access to the world's fastest growing economy as part of their investments.

Insurance premiums in China increased 24 percent in the first nine months from a year earlier, driven by an economy that expanded 11.5 percent, according to data from the industry regulator.

China's insurance regulator has urged firms to spread risk on their more than $300 billion of assets. In July, the government allowed them to invest 15 percent of assets in overseas stocks and bonds, up from 5 percent.

Ping An said the Fortis acquisition was part of a strategy of ``applying its insurance funds and matching its assets to its liabilities.''

Citigroup Infusion

Ping An quadrupled third-quarter profit to 3.6 billion yuan, powered by gains on investments in China's stocks. The company oversaw $45 billion of investments as of June 30.

China Life, based in Beijing, is also on the prowl to diversity. The world's largest insurer by market value is ``very interested'' in buying foreign banks, Board Secretary Liu Ting said yesterday.

``Overseas banks are looking very attractive after the subprime crisis brought their share prices down,'' said Liu at a briefing in Beijing. ``This provides great opportunities for China Life and is a very worthwhile option for us to consider.''

Citigroup Inc., the largest U.S. bank by assets, has tumbled 42 percent in New York amid mounting credit market losses, leading to the departure of Chief Executive Officer Charles Prince.

Citigroup, which until July was the world's biggest bank by market value, this week said it's receiving a $7.5 billion cash infusion from Abu Dhabi to shore up its capital.

Fortis reported an unexpected decline in third-quarter profit on Nov. 8 because of an increase in borrowing costs and U.K. flood-insurance claims, sending the shares to the biggest decline in four years. They closed at 18.15 euros last week, giving Fortis a market value of 40 billion euros.

Merrill Lynch & Co. advised Fortis on the deal, while JPMorgan Chase & Co. advised Ping An.  

,,,
Ping An Insurance (2318) (buy) bought 4.18% stake in Fortis for euro 1.81B. The stake was acquired after buying 95.01M shares on the Brussels and Amsterdam exchanges. Fortis with 60,000 strong work force in more than 50 countries. It has total assets and shareholders’ equity of euro 917.7B and euro 21.2B. Ping An had paid a price of 1.1 times Fortis’ book value for the stake and get a 7% dividend yield, which is an attractive deal. The deal will also realize valuable benefits as Fortis’ and Ping An’s shared model of an integrated banking and insurance platform.
,,,
Ping An Insurance (02318) The Group spent Euro 1.81 billion to buy 4.18% of Belgium's Fortis Bank. This is the Group's first overseas investment. This marks a trend for China financials to break out of China and into the world. The market's response is positive. Buy $83.00 Target $100.00 , Cut loss $75.00  

STOCK ALERT - Ping An Insurance extends gains on acquisition of stake in

Fortis

Ping An Insurance (Group) Co of China Ltd extended its gains from yesterday as the market continued to digest the news of its acquisition of a stake in the Belgian-based banking company Fortis Group.

Ping An said yesterday that its Ping An Life unit bought about 95.01 mln shares, representing a 4.18 pct stake, in Fortis, for 1.81 bln eur.

The mainland firm said it bought the stake for investment purposes under China's Qualified Domestic Institutional Investor (QDII) program.

Separately, Ping An said today that its compulsory third party motor insurance business

recorded operating and accumulated losses of 186.39 mln yuan for the year ended June.  

20 insurers win nod to invest in HK via QDII


CHINA has allowed 20 insurers to invest overseas, mainly in the Hong Kong stock market, under the qualified domestic institutional investors scheme, the top insurance regulator said yesterday.

The watchdog is also considering doubling the coverage of compulsory vehicle insurance to 120,000 yuan (US$16,238) from the current 60,000 yuan limit, Xinhua news agency said yesterday. The regulator said yesterday it will hold a hearing to solicit public views on the issue.

Insurers, including Ping An,

China Life, Taikang, Sino Life and American International Assurance, have won the go-ahead to invest in the Hong Kong market, Yuan Li, spokesman of the China Insurance Regulatory Commission, said yesterday at its third-quarter press briefing. Another three insurers have applied for permission.

The investments are mainly limited to H-shares and red chips. H-shares are the shares of Chinese mainland companies, and red chips are shares of overseas-incorporated companies whose main business is derived from the Chinese mainland.

An unnamed industry insider said some insurers are keen on the program as there is an open opportunity to make profits ahead of the Hong Kong shares "through train" program, which has not yet taken effect.

China said in August that it will allow mainland private investors to directly trade Hong Kong shares via mainland bank accounts.

This is expected to act as a shot in the arm for the Hong Kong market, and has also driven insurers' enthusiasm for the QDII program, the unnamed insider said.

China introduced the QDII program last year to channel part of its mounting foreign exchange reserves and ease the flush of cash in the mainland stock market.

China's foreign currency reserves topped US$1.46 trillion in October.  

 

Ping An Battles AIG for Title of World's Second-Biggest Insurer

Ping An Insurance (Group) Co. is chasing American Insurance Group Inc. for the title of the world's second-biggest insurer. Its shares are already four times more expensive than New York-based AIG, which collects almost as much in premiums in a month as the Chinese company does in a year.

Ping An's Hong Kong-listed shares trade at 40.6 times profit estimates for this year, compared with AIG's 9.2 price-to- earnings ratio, data compiled by Bloomberg show. The discrepancy reflects investor confidence in the Chinese market, where 1.25 billion people have yet to buy insurance.

``China's insurance market is still very far from being saturated, even in the richer coastal cities,'' said Gabriel Gondard, who helps manage about $10 billion at Societe Generale SA in Shanghai. Societe Generale holds 12.5 million Ping An shares and 9.4 million shares of China Life Insurance Co., the world's biggest life insurer by market value. ``There's such huge growth potential'' relative to the U.S. and Europe, he said.

Analysts estimate Ping An's earnings will double in 2007 for a second year, while profit at AIG will climb 17.5 percent after rising 34 percent last year. Profit at Ping An, based in the southern Chinese city of Shenzhen, has been driven by China's surging stock market. The CSI 300 Index advanced 144 percent in 2007, making it the world's best performer and adding about $100 billion to Ping An's market value. The index has dropped 15 percent since mid-October and Ping An declined 18 percent.

Fortis Purchase

Ping An, China's second-largest insurer by market value after Beijing-based China Life, depends on investment gains from stocks and bonds for about 30 percent of revenue. If stock prices fall further, the company's market capitalization will decline, said Tony Zheng, who holds 8.1 million Ping An shares among the $3 billion he helps oversee at Bank of Communications Schroder Fund Management Co. in Shanghai.

``There's zero chance Chinese insurers can keep up their stellar investment returns,'' Zheng said. ``Ping An will weather a shakeout better than China Life, however, since it's more aggressively diversified,'' having purchased stakes in companies including Belgian financial-services company Fortis, he said.

China Life has climbed 68 percent in Hong Kong trading to HK$44.65 this year, while Ping An more than doubled to HK$91.30.

Ping An, partly owned by London-based HSBC Holdings Plc, said Nov. 29 that it bought 4.2 percent of Fortis for 1.81 billion euros ($2.6 billion) in the largest overseas purchase by a Chinese insurance company. China Life also is ``very interested'' in buying foreign banks, Board Secretary Liu Ting said Nov. 28 at a press briefing in Nanjing.

Hedge Funds

Ping An Chairman Peter Ma wants two-thirds of revenue to come from providing banking, securities and asset management services. The company also will increase investments outside China to reduce its dependence on Asia's most expensive stock market. The average stock in the CSI 300 trades at 37.4 times estimated 2007 earnings, compared with 20.6 for Hong Kong stocks.

Ping An was the first Chinese insurer to receive approval to use local-currency assets to invest overseas, giving it potentially $3.4 billion to spend on foreign stocks.

The company spent HK$1.1 billion ($141.1 million) last month for 9 percent of Hong Kong-based Value Partners Group Ltd., ranked by Alpha magazine as Asia's second-biggest hedge fund by assets under management. Ping An plans to offer investment products with Value Partners to tap China's $2.3 trillion of household savings.

Ping An's life insurance premiums increased 15.4 percent during the first 10 months of this year, trailing the industry wide average of 20.3 percent, data compiled by the China Insurance Regulatory Commission show. China Life and Ping An claimed 41.8 percent and 16 percent of the nation's life insurance market, respectively, in the latest period, down from 47.4 percent and 16.7 percent a year earlier.

AIG in China

Foreign rivals led by AIG are striving to gain ground in China to help make up for losses linked to the longest U.S. housing slump in 16 years. Third-quarter profit at AIG, which has units that originate, insure and invest in home loans, dropped 27 percent on losses related to subprime mortgages. AIG shares have declined 19 percent this year, the third most on the Dow Jones Industrial Average.

Policy sales at AIG's U.S. commercial insurance unit, the company's largest, declined 1 percent in the third quarter to $6 billion. The U.S. insurance market is close to saturation with 77 percent of Americans owning some type of life insurance in 2004, data compiled by the American Council of Life Insurers show. Only 4 percent of China's 1.3 billion people have insurance, KPMG International reported.

Life insurance premiums at AIG's China unit increased 29.5 percent this year. AIG, founded in Shanghai in 1919 and the only foreign insurer with a wholly owned operation in China, holds 16 percent of property and casualty insurer PICC Property & Casualty Co.

`Proxy Play'

Ping An's profit from banking rose 10-fold in the first half to account for 13 percent of net income. The company bought 89 percent of Shenzhen Commercial Bank last year and, along with China Life, Ping An paid 10.8 billion yuan ($1.5 billion) in March for about 10 percent of China Minsheng Banking Corp., the country's only privately controlled bank.

The company's brokerage unit contributed about 8 percent to profit in the first half of this year.

``Insurance stocks remain a great proxy play for China's galloping GDP growth,'' said Fan Dizhao, who helps oversee about $1.8 billion at Guotai Asset Management Co. in Shanghai, which owns 5.5 million China Life shares and 3.8 million Ping An shares. ``Demand for insurance is growing steadily.''  

Ping An Preferred By Some Over China Life

Ping An (2318.HK) down 0,62%, with news securities unit's unaudited 2007 net profit +147% at CNY1.487 billion lending some support. This yet another evidence to support some analysts' preference for Ping An over China Life (2628.HK), due to Ping An's financial conglomerate status. Apart from steadily growing life insurance business, China's second largest insurer also diversifying into banks, securities, asset management ops, which should help it to maintain steady earnings growth ahead. Separately, Ping An says unaudited life insurance premiums for 2007 +15% on-year at CNY79.18 billion, showing core life insurance business continuing to grow steadily.  

Ping An doubles profit growth in 2007

Ping An Insurance Group reported a 100% growth in its net profits for 2007, according to a bulletin released by the company on Tuesday.

China's number two life insurer largely attributed the good performance to its continued expansion in insurance, banking and asset management businesses.  The company's financial details will be released in its annual report, according to the bulletin.

No timetable was given for the report.  It recorded a net profit of 7.342 billion yuan ($1.02 billion) in 2006, with earnings per share at 1.19 yuan.

 

Ping An is currently waiting for approval by its shareholders for a 150 billion yuan financing plan, the Shanghai-based China Business News quoted a company source as saying on Tuesday. He denied rumors the company would abandon the plan amid public disputes.

 

On January 21, the company said it planned to issue another 1.2 billion A-shares and no more than 41.2 billion yuan worth of convertible bonds.  The company's shares plunged by the daily limit of 10 percent on both January 21 and January 22 after the news was released.  Market analysts said the huge amount of financing, as well as the lack of explanation on how the money will be used, led to the panic among investors.

 

On Monday, Ping An Insurance plunged by the daily 10-percent limit to 72.53 yuan.  The company listed in Hong Kong in 2004 and in Shanghai last year.

 

 

Ping An flat after expected forecast


SHARES of Ping An Insurance were unchanged yesterday after it forecast 2007 profit that was within expectations.

The Shenzhen-based insurer ended at 72.48 yuan (US$10.07) yesterday in Shanghai, down 0.07 percent. The benchmark Shanghai Composite Index gained 0.87 percent to 4,457.94.

The country's second biggest insurer said in a preliminary statement to the Shanghai Stock Exchange yesterday that it expects its 2007 net profit to more than double. Its 2006 net profit totaled 7.34 billion yuan, with earnings per share at 1.19 yuan.

Ping An's profit forecast for 2007 was not a surprise as insurers' equity returns have soared in line with the booming stock market last year, said Zhang Xi, a China Galaxy Securities Research analyst.

"Ping An's profits is within expectations, that's why it (the forecast) didn't act as a shot in the arm for the shares," Zhang said.

The Shanghai Composite Index gained more than 80 percent last year after soaring 130 percent in 2006, giving insurers juicy returns on their equity investments. Their investment returns topped a record 279.2 billion yuan last year, more than the total of the previous five years.

Zhang advised selling Ping An shares in the short term as the insurer is expected to encounter more fluctuations.

The insurer said last week it plans to issue up to 1.2 billion new yuan-backed A shares, or 14 percent of its expanded capital.

Ping An also plans to sell as much 41.2 billion yuan of six-year convertible bonds with detachable warrants.  

China's Ping An Insurance Group plans to issue new shares and bonds worth billions of yuan to reinforce its capital base and finance acquisitions, company sources said Sunday.

   The nation's second largest life insurer will apply for shareholders' approval to issue 1.2 billion A-shares traded on the Shanghai Stock Exchange at a par value of one yuan (14 U.S. cents) each.

   The new shares, to be sold to institutional and public investors, will represent 14 percent of the insurer's enlarged capital. By last Friday, Ping An had 720 billion yuan in market value, with the closing price of its shares at 98.21 yuan each.

   The Shenzhen-based company will also issue no more than 41.2 billion yuan worth of convertible bonds with warrants which entitle the purchase of its shares. The bonds will have a term of six years.

   Ping An purchased 4.18 percent of Belgian financial service provider Fortis from the stock markets for 1.81 billion euros last November. The deal, which was an ordinary financial investment, made Ping An the biggest single shareholder of Fortis.

   The Chinese insurer listed in Hong Kong in 2004 and in Shanghai last year.  

2318 PING AN 62.25 6.25 11.16 1,239,990 20,602  

 

The shareholders overwhelmingly approved a gigantic fund raising exercise by placement 1.2 billion new A shares and issuing RMB 600 million in convertible bond.

With the mandate approved, the Group can go to the next level and obtain CSRC approval.

With the money, the Group can proceed to acquire companies in the finance field around the world.

It is a good time for acquisition. Buy $56.00, Target $65.00, Cut loss $50.00  

Fortis planning $3.1 bln deal with China's Ping An:

Belgian-Dutch banking group Fortis is in talks to sell part of its Fortis Investments asset management arm to Chinese insurer Ping An for 2 billion euros ($3.1 billion), according to a report in Belgium's De Standaard newspaper Wednesday. Ping An became Fortis' biggest shareholder late in 2007 when it bought a roughly 4% stake in the group. On Friday Fortis announced it was in talks over a deal that would help strengthen its capital position after taking write-downs of 2.7 billion euros in 2007.  

'07 Results Seen Up Nearly 1.5X  

A flag flies above The People's Bank of China in Beijing. The nation's insurers may face hurdles in deploying their capital but should better manage investment risks, the central bank said yesterday.


CHINA'S insurers may face various hurdles in deploying their capital but should better manage investment risks, the central bank said yesterday.

"While Chinese insurers' investment returns have recently reached records, they're still low compared to those in other countries," the People's Bank of China said in a financial stability report posted on its Website.

Growth of investment by Chinese insurers in stocks and debt slowed in the first half of this year as the capital market slid. Analysts said insurers faced challenges to maintain a healthy profit growth this year.

Investment by Chinese insurers rose 44.5 percent from a year earlier to 1.94 trillion yuan (US$274.58 billion) in January and February, the China Insurance Regulatory Commission said.

Investment grew 46.1 percent in the same period last year, and 2007's whole-year growth topped 71.3 percent.

Insurance premiums totaled 187.5 billion yuan, a 58.2-percent increase, in January and February, powered by a 69.2-percent jump in life coverage to 145.7 billion yuan. Property and casualty premiums grew 28.9 percent to 41.7 billion yuan.

"Agents and bancassurance will feel the thrust to sell more policies when the capital market is adjusting," said Founder Securities Co in a research note yesterday. Founder had expected life-insurance premiums to top 70 percent in the first two months.

The snowfall in January, the heaviest in more than 50 years, has triggered the growth potential of property and casualty insurance, which are expected to record maintain momentum this year.

China's stock-market decline may cut into investment returns for domestic insurers. The benchmark Shanghai Composite Index has so far slid 27 percent this year.

Ping An Insurance (Group) Co can expect to see a slower investment growth this year as a fallout from the stock-market performance, said Luo Yi, a China Merchants Securities Co analyst.

The country's second-biggest insurer said investment returns soared 168 percent to 57 billion yuan in 2007, 48.6 billion yuan of which were from stock and fund investment returns.  

Insurance sector records gross assets of $411.8b


The insurance sector in China had accumulated 2.92 trillion yuan ($411.8 billion) in gross assets by the end of January, according to the China Insurance Regulatory Commission (CIRC).

The sector's gross investment amounted to 1.91 trillion yuan, the industry regulator said.

CIRC data show the sector garnered 105.6 billion yuan in premiums last month.

The total included 28.2 billion yuan in property insurance, 70.8 billion yuan in life insurance, 4.7 billion yuan in health insurance and 1.9 billion yuan in accident insurance.

The sector paid 30.8 billion yuan in indemnity, including 10.4 billion yuan for property insurance, 18.3 billion yuan for life insurance, 1.4 billion yuan for health insurance and 695 million yuan for accident insurance.  

habe ich den Eindruck es liegt daran, weil einige der englischen Sprache nicht so mächtig sind
ich halte jedenfallst sehr viel vom zweitgrößten versicherer chinas, der ein beispiel dafür ist wie man die finanzkrise mit hilfe der chinesischen regierung ausnutzen kann
denn die fortis gruppe hat nicht ohne grund die hälfte ihrer vermögensverwaltung für 2,15 Mrd € verkauft
und sollten sich die gerüchte bestättigen das die allianz eine zusammenarbeit anstrebe kann es dem kurs nur helfen

Na ja, ich denke mal die haben sich im November viel zu früh bei fortis eingekauft, und jetzt haben sie mit dem fallenden chinesischen Aktienmarkt zu kämpfen um überhaupt performance zu halten, geschweige denn auszubauen

denke, der Kurs wird in 2008 eher fallen als steigen