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Ping An says H1 net profit falls 45%

(Xinhua)
Updated: 2009-08-15 11:47

Ping An Insurance (Group) Company of China Ltd, the country's second largest insurer by market value, said Friday that its first-half net profit fell 45 percent to 5.22 billion yuan ($768 million) under international accounting rules.

The drop in profit, down from 9.49 billion yuan a year earlier, was mainly a result of lower investment returns, higher payouts for claims and tax provisions, the company said in a statement to the Shanghai Stock Exchange.

Under Chinese accounting rules, the insurer's first-half net profit was 4.35 billion yuan, a fall of 38.8 percent from 7.1 billion yuan a year ago.

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Despite the fall in profit, the insurer said its major services posted robust growth in the first half of this year.

The Shenzhen-based insurer said its premium earnings jumped nearly 20 percent to 64.77 billion yuan, from 54.19 billion yuan a year ago, under international accounting rules.

Under Chinese accounting rules, premium income rose about 34 percent to 92.69 billion yuan, up from 69.23 billion yuan a year ago.

Shares of the company lost 2.23 percent to finish at 52.62 yuan Friday as the Shanghai index fell 2.98 percent, before its first-half report was revealed. Shares of the insurer edged down 0.688 percent to HK$65 ($8.39) in Hong Kong.