Ping An Insurance

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Ping An Insurance
中国平安保险
Type Public company
Industry Financial services
Founded 1988
Headquarters Shenzhen, Guangdong, China
Area served People's Republic of China
Key people Ma Mingzhe, Chairman & CEO
Products Diversified Insurance
Revenue Increase US$ 64.5 Billion (2012)[1]
Net income Increase US$ 4.9 Billion (2012)[1]
Total assets Increase US$ 461.1 Billion (2012)[2]
Owners Charoen Pokphand (15.6%) [3]
Employees 190,000 [1]
Parent China Ping An Insurance Group
Website pingan.com

Ping An (Chinese: 中国平安; pinyin: Zhōngguó Píng Ān), full name Ping An Insurance (Group) Company of China, Ltd. is a holding company whose subsidiaries mainly deal with insurance and financial services. The company was founded in 1988 and has its headquarters in Shenzhen.

Business[edit]

Ping An Insurance group is the holding company of Ping An Life Insurance Company of China, Ltd. and Ping An Property & Casualty Insurance Company of China, Ltd. It also controls China Ping An Insurance Overseas (Holdings) Limited and Ping An Trust & Investment Co., Ltd. Ping An Insurance Overseas, located in Hong Kong, is a second holding company for subsidiary companies located outside of China.

Ping An Trust & Investment has the subsidiaries of Ping An Securities and Ping An Bank.

Ping An began as only a casualty insurance company. Since the mid-1990s Ping An has been diversifying into financial services from its core business of insurance and began taking investments from overseas firms. Ping An accepted investments from Morgan Stanley and Goldman Sachs in 1994. In 2002 HSBC took a large equity interest in Ping An. In early 2008, Ping An agreed to take a 50% share in Fortis Investments,[4] which had taken over ABN AMRO Asset Management as a result of the split up of ABN Amro in late 2007, but the deal was cancelled in October 2008.

In June 2009, Ping An became a strategic investor in Shenzhen Development Bank.[5]

Ownership[edit]

Ping An has the classification as being a private company. Richard McGregor, author of The Party: The Secret World of China's Communist Rulers, said that "the true ownership of large chunks of its shares remains unclear" and that the ownership of Ping An is a "murky structure".[6] 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.[7] They paid the equivalent of 40 cents a share, others buying in the same time frame paid as much as $1.20. Thanks to favorable regulatory treatment and licensing, the firm was able to build a diverse financial firm with interests in insurance, brokerage, and banking.[8]

Although Ping An styles itself as a local Chinese insurer,[citation needed] HSBC acquired 48.22% of H shares by means of different HSBC subsidiaries. HSBC hold 16.8% of total shares of Ping An, making itself to be the biggest shareholder.[9][10] Charoen Pokphand Group of Thailand has got the clearance of USD 9.39 billion purchase of HSBC's stake.[11] On May 10, 2013, in spite of a lack of loan from the China Development Bank,[12][13] HSBC said "it was selling the 15.6 per cent stake at HK$59 a share" in Ping An to Charoen Pokphand Group.[13][14]

Markets[edit]

Since June 24, 2004 Ping An has been listed on the Hong Kong Stock Exchange. SEHK2318 Now, it has a listing on stock exchange in Shanghai, SSE: 601318.

Ping An was chosen as an index stock of the Hang Seng China Enterprises Index (HSCEI) replacing Anhui Expressway.

The Hang Seng Index Services Company announced on 11 May 2007 that Ping An will join as Hang Seng Index Constituent Stock (Blue Chip Stock) since 4 June 2007.

Operations[edit]

Ping An has operations across all of the People's Republic of China, and in Hong Kong and Macau through Ping An Insurance Overseas. Ping An has branches or a representative agent in 150 countries.

In 2010, Ping An's asset management arm implemented DST Global Solutions' Hiportfolio investment accounting system to run their back office operations.

References[edit]

Notes[edit]

  1. ^ a b c "Ping An Insurance Group Financials". Financial Times. December 2013. Retrieved December 10, 2013. 
  2. ^ "Ping An Insurance Group Financials". Financial Times. December 2013. Retrieved December 10, 2013. 
  3. ^ 10, 2013 "HSBC to sell $9.4 billion Ping An stake to Thailand's CP". Financial Times. December 2012. 
  4. ^ The Ping An-Fortis Deal: Who Really Wins?, Caijing Magazine, 3 April 2008
  5. ^ "Ping An to invest in Shenzhen Development Bank - BusinessWeek". businessweek.com. 2011. Retrieved 19 July 2011. 
  6. ^ McGregor, p. 204-205.
  7. ^ David Barboza, "Billions in Hidden Riches for Family of Chinese Leader", The New York Times, 25 October 2012. Retrieved 27 October 2012.
  8. ^ David Barboza (November 24, 2012). "Lobbying, a Windfall and a Leader’s Family". The New York Times. Retrieved November 26, 2012. 
  9. ^ http://www.cz88.net/stock/stock/601318/010/
  10. ^ 2009 Annual Report
  11. ^ "Thai tycoons go for it in multi-billion deals". Investvine.com. 2013-02-04. Retrieved 2013-03-17. 
  12. ^ Chen Xiaoyi (January 8, 2013). "China Development Bank stops loan to Charoen Pokphand to buy Ping An". Morning Whistle. Retrieved 2013-05-10. 
  13. ^ a b Yam, Shirley (9 February 2013). "Still too much murkiness around the details of the Ping An deal". South China Morning Post. Retrieved 2013-05-10. 
  14. ^ "Ping An rises on HSBC stake sale to Charoen Pokphand". Bloomberg Honk Kong. 5 December 2012. Retrieved 2013-05-10. 

External links[edit]