Based on the 2025 Third Quarter Report of Ping An Insurance (Group) Company of China, Ltd., the company demonstrated strong growth momentum. Key financial highlights include:
- Net Profit: Attributable to shareholders of the parent company reached RMB 119.18 billion, representing a 36.1% YoY increase.
- Life & Health Insurance: New Business Value (NBV) rose by 34.1% YoY, driven by the high-quality growth of the agent channel and the “Insurance + Service” ecosystem.
- Property & Casualty Insurance: Premium income grew by 5.9% YoY to RMB 239.37 billion, with a healthy combined ratio of 97.8%.
- Banking: Ping An Bank maintained stability with a net profit of RMB 39.73 billion, a slight 0.2% YoY increase.
Here’s a comprehensive five-year financial ratio analysis for Ping An (2020-2024/2025Q3)
Profitability Ratios
- Net Profit Margin: The margin has seen fluctuations due to capital market volatility and life insurance reforms, with 2024 showing significant recovery as net profit rose 36.1% YoY to RMB119.18 billion.
- Return on Equity (ROE): Historically maintained in the double digits, though it faced pressure during the 2021-2022 period. The 2025Q3 performance suggests a strong rebound toward the 12-14% range.
Operational Efficiency & Growth
- New Business Value (NBV) Growth: A critical efficiency metric for life insurance. After a period of contraction during the reform years (2020-2022), it achieved a powerful turnaround with 34.1% growth in 2025Q3.
- Combined Ratio (P&C): This ratio, which measures the profitability of the property and casualty segment, has remained consistently healthy at 97.8% as of 2025Q3 (a ratio below 100% indicates an underwriting profit).
Solvency and Capital Adequacy
- Comprehensive Solvency Margin Ratio: Ping An has consistently maintained solvency ratios well above the regulatory minimum of 100%, typically ranging between 180% and 210% for its core life insurance entity over the past five years.
Banking Segment (Ping An Bank)
- Non-Performing Loan (NPL) Ratio: Has been kept stable near 1.06%, demonstrating disciplined risk management despite macroeconomic headwinds.
- Net Interest Margin (NIM): Like most Chinese banks, this has faced narrowing pressure over the five-year period due to interest rate cuts, currently stabilizing around 1.9-2.0%.
Dividend Payout Ratio
- Payout Consistency: Ping An has maintained a stable dividend policy over the past five years, typically distributing 40-50% of its operating profit, reflecting a commitment to shareholder returns even during the reform transition.
Here is the P/B (Price-to-Book) Ratio analysis comparing Ping An (2318.HK) with its major peers, based on the late 2025 and early 2026 market data:
Insurance Sector P/B Valuation Comparison (2025Q3/2026 Forecast)
| Company | Ticker | Current P/B (Approx.) | Valuation Status | Key Driver |
| Ping An | 2318.HK | 1.2x – 1.24x | Above sector median | Life NBV rebound, Medical/Healthcare ecosystem |
| China Life | 2628.HK | 1.9x – 2.1x | Premium valuation | Pure life play, high beta to equity market rallies |
| CPIC | 2601.HK | 1.1x – 1.4x | Fairly valued | Balanced life/P&C portfolio, high dividend yield |
| NCI | 1336.HK | 2.2x – 2.8x | High volatility premium | Net profit highly sensitive to investment returns |
| PICC | 2328.HK | 1.2x | Recovering | P&C leadership with stable combined ratios |
| China Taiping | 0966.HK | 0.6x – 0.7x | Deep discount | Lagging valuation despite high profit growth |
Key Strategic Takeaways
- The “Banking Drag” on Valuation: Unlike China Life, Ping An’s consolidated P/B is weighed down by Ping An Bank, as banking stocks typically trade at lower P/B multiples (often <1.0x). If the insurance segment were valued independently, its implied P/B would be significantly higher.
- NBV Turnaround: The 34.1% YoY growth in New Business Value (NBV) reported in 2025Q3 is the primary reason Ping An’s P/B has climbed back above the 1.0x threshold, signaling market confidence in its life insurance reform.
- Asset Quality Concerns: Ping An’s P/B still reflects a cautious discount compared to its pre-2020 highs (which were above 2.0x). This is due to lingering market scrutiny over real estate exposure and long-term interest rate trends in China.
- Investment Income Sensitivity: Companies like NCI and China Life show higher P/B ratios partly because their book values are more aggressively boosted by recent gains in the Chinese equity markets, given their larger relative weighting in stocks.
Source:
- https://www.pingan.com/app_upload/images/info/upload/f8a0c0e1-f41b-491f-80c5-370024efbdbd.pdf
- https://www.pingan.cn/ir/financial-reports.shtml
- https://www.hkex.com.hk/Market-Data/Securities-Prices/Equities/Equities-Quote?sym=2318&sc_lang=zh-HK
- https://finance.yahoo.com/quote/2318.HK/key-statistics/
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